A leading independent ESG ratings firm Sustainalytics upgraded the environmental, social and corporate governance score of Ignitis Group, while the Group’s efforts to mitigate and adapt to climate change was acknowledged positively by an environmental disclosure organisation CDP.
Ignitis Group (hereinafter – the Group) received a score of 20.4 (on a scale of 100–0, from highest to lowest risk) in the Sustainalytics Environmental, Social, Governance (ESG) Risk Ratings assessment. The Group’s score in 2020 was 26.5. This places the Group among the top 12 percent of utility peers that manage their ESG risks optimally. Sustainalytics designated the overall ESG risk level as ‘medium’, approaching the ‘low’ risk category.
Also, this year a globally recognised environmental disclosure organisation CDP rated climate change mitigation and adaptation efforts of the Group for the first time. Last week CDP granted the Group a score of ‘B’ (on a ‘D-’ to ‘A’ scale, where ‘A’ is the top score).
“The high ratings received from international organisations reflect the Group’s progress in reducing greenhouse gas emissions in accordance with science-based reduction targets, managing climate-related risks, expanding diversity efforts, and following good governance practices”, said Darius Maikštėnas, CEO at Ignitis Group.
Sustainalytics ESG Risk Rating is based on the Group’s resilience to financially material ESG risks. The score is determined considering the Group’s exposure to, and management of, key ESG risks and opportunities. This year’s ESG Risk Rating also reflects an expanded assessment of the Group’s governance practices compared to the previous assessment before the Group’s IPO in 2020.
CDP evaluated the integration of climate issues into the Group’s strategic planning and risk assessment, analysed emission reduction targets, actions and planned investments. In 2021 CDP assessed more than 13,000 companies worldwide.
Improving ESG performance is one of the priorities set out in the Group’s 2021–2024 Strategic Plan. As announced in July (link), the Group received a rating upgrade to ‘AA’ (on a scale of ‘CCC–AAA’, where ‘AAA’ is the highest rating) in the MSCI ESG Risk Ratings assessment. This upgrade placed the Group among the leaders in its industry.
More information about ESG ratings can be found on the Group’s website: https://ignitisgrupe.lt/en/sustainability.