Climate change is one of our greatest challenges of the century that requires engagement from both the public and private sector as well as from each individual. Electricity and heat are the driving forces of the economy; however, according to the International Energy Agency, energy and heat generation sector contributes the most to global greenhouse gas emissions. Thus, the transformation and decarbonisation of the energy sector are vital to the implementation of the Paris Agreement and limiting the global temperature increase to 1.5°C.  

Greenhouse gas (GHG) emissions of Ignitis Group 

Scope 1 – Direct GHG emissions 
Direct GHG emissions from GHG sources owned or controlled by the Group. Direct GHG emissions include: 

• Emissions from mobile combustion sources associated with transport 
• Emissions from own power generation facilities (stationary combustion) 
• Fugitive methane (CH4) emissions (natural gas distribution) 
• Fugitive emissions from refrigerant gases 

Scope 2 – Indirect GHG emissions 
Indirect GHG emissions come from electricity, heat or steam generation of external origin consumed by the organisation. Indirect GHG emissions include: 

• Emissions associated with the consumption of electricity 
• Emissions associated with the consumption of thermal energy 
• Emissions associated with grid losses during the distribution of third-party power (electricity distribution) 

Scope 3 – Other indirect emissions 
All other indirect emissions of the Group’s activities which are emitted by sources that are not owned or controlled by the Group. Other indirect emissions include emissions from: 

• Purchased goods and services – third-party emissions from manufacturing of the goods and services used by the Group in its operations 
• Fuel- and energy-related activities – third-party emissions from extraction, production, and transportation of fuels and electricity purchased by the Group from third parties for sale to end users  
• Upstream transportation and distribution – third-party emissions associated with transportation of goods (e.g., fuels such as biofuel, waste) used by the Group in its operations 
• Waste generated in operations – based on actual and estimated generated amount of waste 
• Business travel – emissions associated with flights taken by employees for business travel purposes 
• Downstream transportation and distribution – third-party emissions associated with transportation of products of the Group (e.g., ash generated from operations of the plants) 
• Use of sold products – emissions associated with use of sold products (e.g., emissions from natural gas combustion by the end user) 
• Downstream leased assets – emissions from the operation of assets leased by the Group 

Out of scope  

• Biogenic emissions (CO2 emissions from the combustion of biomass and biodegradable fraction of waste) 
• Wholesale of natural gas 
• Wholesale of electricity 

Exclusions 
The criteria for emissions assessment were based on their materiality. Emissions that do not figure highly (<5%) in relation to total emissions were not included. Emissions sources that have been identified and excluded from the GHG emissions inventory are presented below: 

• Bus, taxi, car sharing travels. Reason for exclusion – minimal impact in relation to total emissions of the Group 
• Emissions from production of capital goods (e.g., construction) by Ignitis Group. Reason for exclusion – lack of reliable data 

 Emissions data

Emissions from renewable energy sources:

Verification

Emissions calculations were audited by external auditors. You can find the relevant reports below:

2022 GHG inventory report and verification statement

2021 GHG inventory report and verification statement  2020 verification statement

The main other (nonGHG) emissions emitted in Group’s operations of generating electricity and heat are nitrogen oxides (NOx), carbon monoxide (CO), sulphur dioxide (SO2) and particulate matter. 

Air emissions from stationary combustion

Air emissions increased in 2020 mostly due to the start of operations of Kaunas CHP. 
We strictly adhere to air emission allowances. More information on air emission monitoring is published on the following websites of the Group‘s subsidiaries (in Lithuanian): 

Kauno kogeneracinė jėgainė (Kaunas CHP) 
Vilniaus kogeneracinė jėgainė (Vilnius CHP) 
„Ignitis gamyba“ 

Energy consumption inside the organization consists of energy used by the Group’s production facilities, buildings and offices. The greatest share of energy is used in energy production processes. The Group is expanding its green energy generation capacities and invests in increasing the efficiency of the distribution network in order to lower the energy consumption footprint. For example, ESO invests in the installment of smart meters, which let manage, analyze and optimize energy distribution and consumption better. It is estimated that by 2028 all the meters will be replaced with smart ones (about 1.6 million units).

Seeking to strengthen its actions regarding climate change and to contribute to the comprehensive reduction of GHG emissions, the Group pays special attention to the increase of the consumption efficiency. Energy efficiency means that the same result is achieved using less energy, which not only results in a smaller ecological footprint, but also helps consumers spend less.

In October 2019, the Group and the Ministry of Energy of the Republic of Lithuania signed an Agreement on Energy Consumer Education and Consultation, thereby joining the initiative to promote energy efficiency in Lithuania.Its goal is to educate and consult consumers about energy efficiency, in that way helping consumers to lower the energy consumption costs and to join in the advancement of energy efficiency.  

Distribution network operator ESO founded the Energy Efficiency Club, uniting businesses in Lithuania that declare their energy savings. During the period of 2014–2020, the Energy Efficiency Club helped ESO save 1609GW, of which 362GW were due to the contribution of the Energy Efficiency Club.

It is important to develop a responsible energy consumption point of view from an early age. That’s why the Group is involved in the promotion of energy awareness for the young generation and develops the  “Ignitis Detectives” project. The project teaches youth in playful ways about the importance of saving energy and how to achieve it. You can find out more here (only in Lithuanian).

All generated waste is sorted by separating secondary raw materials and hazardous waste. The waste is entered into the Unified Product, Packaging and Waste Record Keeping System (GPAIS) before being handed over to waste management companies. The Group concludes agreements with specialised companies for safe management and handling of the waste generated from the production operations.

The Group’s partners and contractors are subject to the same conduct of business standards.

The Group above all emphasizes the importance of reducing waste. As part of the commencement of operations at the Kaunas waste-to-energy co-generation power plant, the Group is undertaking a project to educate the public about circular economy. We seek to build awareness among our clients and the broader public about the need to reduce, reuse, recycle before throwing away materials and objects that cannot be repurposed or recycled.  More about the project can be found here (only in Lithuanian).

Water is an essential natural resource in many of the Group's activities. In its operations, the Group draws surface water, groundwater and water from supply systems. Water resources are mainly used to ensure electricity generation processes - at the Kruonis pumped storage hydroelectric power plant, Kaunas Algirdas Brazauskas hydropower plant as well as the combined cycle unit and reserve power plant at the Elektrėnai complex. Appropriate management of water risks directly affects the Group’s performance and is therefore integrated into annual planning, risk assessments and is highlighted in yearly sustainability reports.

According to the World Resources Institute, Lithuania is in a low to medium water stress zone (10–20% ratio of withdrawals to supply). Much attention is paid to surface water, groundwater monitoring and protection measures. Ignitis Gamyba was the first company to implement the requirements of LAND 2-95 regarding public access to the water levels of the water bodies managed by the company. Hourly data of the Elektrėnai pond and Kaunas hydropower plant pond water levels is available on the website of Ignitis Gamyba (only in Lithuanian).

In order to avoid contamination of soil and groundwater, the collection and disposal of oil and other waste is always ensured in places where construction, installation, operation and reconstruction of electrical equipment is planned. Oil collection tanks are installed in the areas of open switchyards and substations where oil may leak from transformers and oil circuit breakers into the ground and groundwater.

Through our activities, we aim to reduce any direct and indirect negative impacts on biodiversity. We prioritize the protection of fish in hydropower production and the protection of the bird population in wind energy production and electricity distribution networks.

To reduce the impact on the landscape and increase grid resilience to climate change impacts, we are making significant progress towards undergrounding – building new underground power lines in place of old, overhead power lines. The ten-year ESO investment plan (available here in Lithuanian), includes goals such as 11 200 km of new underground lines, 67% of 10 kV underground cables in the forests, 132 km of old gas pipelines replaced from old steel pipes to new polyethylene pipelines, among others.

In order to ensure the safe and reliable supply of electricity and to protect wildlife, ESO, in coordination with the Lithuanian Environmental Protection Agency, relocates stork nests that endanger the electricity grid and human safety in accordance with the Law on Protected Animals, Plants and Fungi. To eliminate unplanned emergency failures of overhead power lines, ESO relocates stork nests to nearby bird environments - stork nests are relocated no further than 100 meters from the original location of the wild bird nest.

Read more about impact on biodiversity here.

Ignitis Group green bond issues are based on the International Capital Market Association (ICMA) Green Bond Principles as well as being monitored based on their requirements and recommendations. In July 2017, the Group issued their first EUR 300 million bond and, a year later, in July 2018, a second green bond of the same amount was issued successfully again. The Group uses the investments to finance projects in wind energy, increase electricity distribution network efficiency, energy production using biomass and non-polluting transport projects. The financing obtained using green bonds is used by the Group to finance only green energy projects. During the period of 2020–2023, we are estimating investments of EUR 700–950 million into green energy production in order to complete construction projects by 2023 and reach 1.6–1.8 MW of installed capacity.

A work environment that promotes diversity enriches the experience of employees and strengthens equal opportunities for their talents to unfold. Research also indicates that in companies where employees feel valued and involved in their activities, the loyalty of the employees is greater and staff turnover is lower. Furthermore, diverse teams are able to make better decisions, work more productively, create more innovative solutions, increase their creativity and resilience to risks. Therefore, in pursuit of its strategic goals, the Group also focuses on increasing diversity and inclusion.

In 2021, in order to consistently integrate diversity and inclusion into strategic planning and organizational development, the Group established the position of Head of Diversity, Inclusion and Wellbeing.

In its Strategic Plan 2021–2024, the Group has set the following strategic goals for employee diversity: 5% improvement of gender balance in engineering and IT positions and 5% improvement of gender balance among top management by increasing the leadership pipeline of underrepresented gender.

Ambassadors for Diversity and Inclusion

Employees themselves are also contributing to increasing diversity and inclusion. In 2021, they gathered in a group of Ambassadors for Diversity and Inclusion, made up of people working in different sections of the Group. Ambassadors participate in guest lectures, seek to expand their knowledge and competencies on diversity and inclusion topics, and plan to consistently develop their expert and educational focus.

Trainings and discussions

In 2022, at the beginning of the year, the Diversity and Inclusion Group organized a series of 4 training events open to all employees of the Group. Employees learned about topics such as diversity and inclusion in international energy companies, recognizing discrimination and interpreting anti-discrimination laws, best practices in other organizations.

Trainings for mid-level, top-level managers and CEOs of all companies also took place. They improved their knowledge on the essential responsibilities of a manager in recruitment and ensuring equal opportunities (specifically when creating a job offer and interviewing candidates). The talent acquisition team also upgraded their knowledge during the specially tailored training on equal opportunities in recruitment.

In 2022, during a live event, top-level managers were also introduced to the importance of equal opportunities, diversity, gender equality and the involvement of men in this topic. They participated in the workshop as well where they solved managerial challenges related to diversity and inclusion.

Currently, we are implementing the #EnergiseEquality initiative, which promotes a culture of dialogue on the topic of equal opportunities. The project is based on the international Barbershop Toolbox method developed by UN Women in Iceland. It is a method that provides guidance on how to discuss sensitive and complex topics such as gender equality and equal opportunities more effectively. Employees interested in the method have been trained to apply it in practice and are currently organizing and leading discussions about gender equality with their colleagues.

Mentoring and education

In recent years, the Group has become an active participant in women's leadership initiatives in the field of STEM. In 2020, the company was a key partner in the women's innovation sprint Alter State, while in 2021 the Group joined the “Women Go Tech” mentorship program, which promotes women's retraining in IT and engineering. The same year, in cooperation with the Šiauliai STEAM Center, the Group contributed to a series of lectures for school-age girls about women in the STEAM field. The company also promotes women's leadership in these topics in its internal communication.

Diversity data

The Group regularly collects and publishes data on the diversity of employees - their distribution by gender, age, education, profession, country of employment. The most detailed diversity data is provided in the Group's annual reports. Diversity data is a way to get to know the people working in the Group and to create an inclusive work culture. Diversity data can reveal inequalities or gaps in employee experience and career paths between different groups of workers and lead to the search for causes and solutions to foster diversity and inclusion.

Strategic plan

The Group plans and implements its actions in this area according to the Strategic Plan for Diversity, Inclusion and Well-being 2022–2024. The Plan has two strategic directions: 1) recognising diversity and improving inclusion; 2) supporting well-being. In the field of diversity & inclusion, the Group aims to improve gender balance, bridge communication gap among employee groups, create an inclusive environment for people with disabilities, ensure inclusion of people of all ages, and raise awareness of LGBT inclusion. In the area of well-being, the Group aims to improve physical and emotional well-being, support financial well-being, and foster work-life balance.

In 2021, the Group received the highest rating in Lithuania for its contribution to mainstreaming equal opportunities in the organisation. The Group was awarded three “Equal Opportunity Wings” by the Office of the Equal Opportunities Ombudsperson and the Human Rights Monitoring Institute.

We aim to create a safe work environment for our employees and partners, and that’s why we constantly revise and improve our work safety features and processes established to identify potential risks. The Group’s companies use various measures for this. For example, preparation of safe work guidelines, equipment acquisition and distribution among employees, creation of a safe work environment, mandatory work safety training, etc.

Work safety success is ensured with the help of dialogue between the employer and the employees. The Group puts a significant amount of effort to inform and educate employees on this subject, and employees are encouraged to report possible violations and risks. This way we ensure zero tolerance for work safety violations. The Group’s companies constantly collect information about accidents, inflicted damage, injuries.

It’s important to us that employees feel empowered to improve their knowledge, so we provide them with various opportunities to achieve it. The Group has established a training academy where various general, professional and managing competence training is provided. For example, there are leadership, team building, change management, project management and other types of training available. The Group takes care of qualification raising of its employees and ensures that employees have all the necessary certification for work required by law.

In 2020 62% of employees participated in the training, and one employee in the group spent on average about 18 hours in training. In 2019, each employee was subject to 8 hours of training (only live training hours counted) in the Group. 

In 2019, 498 employee competence and carrier advancement evaluations were carried out in the Group, education plans were devised and 83 % of employees participated in official annual performance reviews.

We value every employee and seek to ensure equal opportunity when hiring and promoting, regardless of one’s age, gender, race, cultural background, religion, sexual orientation or other criteria which are not directly related to work. The Group respects and protects the rights of its employees, stands against any human rights violations and promotes equal opportunity everywhere, where it can have an impact.

Work conditions, remuneration, benefits and other organizational aspects for our employees are determined to ensure equal opportunity and to help employees manage work, personal life and take care of familial obligations.

The group is publicly committed to the principles of equal opportunities and non-discrimination in the recruitment process. Our every single job advertisement indicates that the Group is an equal opportunity employer and that we welcome all applicants and do not discriminate against race, religion, gender, sexual orientation or gender identity, age, disability or other personal traits unrelated to work obligations.

To prevent discrimination and recruit from a diverse talent, in 2022 October, we took the initiative and introduced a new requirement: all hiring managers, before starting recruitment for each position, must personally commit to ensure equal opportunities during recruitment and must do this in the Applicant Tracking System. This means a commitment to not ask discriminatory questions, to apply the same selection criteria and to follow the principles of equal opportunities set out in the Group's Equal Opportunity and Diversity Policy. If one does not agree to commit, the recruitment process is not allowed to be started. The talent acquisition team and HR business partners must also commit to ensure equal opportunities. A short guide was prepared and distributed to all these groups including tips on how to avoid discrimination in the selection of employees and encourage diversity of talent.

The Group’s Code of Ethics and Equal Opportunity and Diversity Policy establish the principles of equal opportunity and diversity to be upheld in the Group, as well as the main means of their implementation. One of such means of implementation  is the Group-wide Trust Line, to which employees and other stakeholders can confidentially report any possible breach of sustainability principles, including violations of human rights and equal opportunity, which are then investigated by the Group via an established process.
 

We seek to shape an organizational culture with dedication and direction, as well as to ensure a good employee experience. We have been conducting the Employee Net Promoter Score (eNPS) surveys since 2019. This research helps us indicate how much employees value various experiences in the organization, how satisfied they are and if they would recommend us to their friends and colleagues.

The results of the eNPS survey are steadily improving despite the pandemic and other major changes in the Group. Employee satisfaction more than doubled compared to 2019. The last year of 2020 eNPS stood at 61.3% in the third quarter. Consistent increase of this indicator is a strategic goal of the Group.

The employee benefit system is implemented across the entire Group. Benefits are a motivational tool to increase the involvement of employees, and to assist them in balancing work and personal obligations. Employees can use additional motivational incentives to improve their skills, performance results and enrich their experience in the company.

The granting of support in the Group is regulated by the Ignitis Group Financial support policy. Following good practice in other countries and in the private sector, financial support to close communities is currently available only to Group companies developing renewable energy projects and maintaining such production capacity, i. y. UAB Ignitis renewables and its subsidiaries. Read more about it here.

You can find more information about the Lietuvos Energija charitable fund by clicking on this link (information available only in Lithuanian language).

Community - a group of people who are united by place of residence, occupation, shared beliefs, norms and common objectives, interests or other identity. In the context of the Group's activities, we identify those communities that are affected or may be affected by the Group's activities.

We aim to minimize potential negative impacts on communities and be a trusted member of communities. When forming and improving our sustainability activities, we take into account the opinions of community members, therefore we give priority to open and active communication.

More about how we work with communities can be found here (link).

Ignitis klasė is an educational program about energy and innovation

Ignitis together with the Museum of Energy and Technology organizes free educations (live and remotely) for groups of 6th-11th grade students. In Ignitis klasė lessons, students have the opportunity to get acquainted with various energy topics - energy history, electricity generation in Lithuania, renewable energy resources and developing future innovations - electric mobility, new energy production methods and future energy challenges. They also talk about energy efficiency, the causes of climate change and ways to mitigate it. The aim of this initiative is to encourage students to take an interest in energy, to get acquainted with measures to prevent pollution, and to promote energy efficiency in an efficient, conscious and sustainable way. In the 2020-2021 academic year, about 500 students and as many participants of different age groups participated in this program in a public distance learning class. In the 2021–2022 school year, it is planned to extend the lessons of the Ignitis klasė and invite even more children to get acquainted with energy.

Ignitis Group strives to act responsibly and sustainably, so it does not tolerate any manifestations of corruption in its daily operations and advocates for fair and ethical business and transparent communication with all stakeholders.

You can find out more about corruption prevention activities on this page:

Prevention of corruption