Helleniq Energy

Helleniq’s scope 1 and 2 emissions intensity increased by about 4% annually between 2017 and 2022. This strongly misaligns with the company’s 1.5°C pathway, which requires it to reduce its scope 1 and 2 emissions intensity by about 6% per year between 2022 and 2027. Helleniq reports investing 36.7% of its total CapEx on low-carbon and mitigation technologies in 2022, on projects such as the expansion of its renewable energy capacity. However, Helleniq does not report details of its CapEx on carbon removal technologies in the 2022, or its planned CapEx over the next five years.

Research and development (R&D) expenditure on low-carbon technologies will be essential for Helleniq to develop a low-carbon product portfolio and be successful in a low-carbon economy. The company is aware of the opportunities and is engaging in R&D of advanced biofuels and development of synthetic fuels, but it does not specify which technologies it aims to focus on. Helleniq does not report its R&D expenditure on either mature or non-mature mitigation technologies. To meet the sectoral-level expectation, at least 77% of the company’s total R&D investments should be dedicated to low-carbon technologies.

Driven by the increase in the company’s scope 1 and 2 emissions intensity, Helleniq’s scope 1, 2 and 3 emissions intensity increased marginally between 2017 and 2022. This does not align with the company’s 1.5°C pathway, which requires it to reduce its scope 1, 2 and 3 emissions intensity by about 4% per year between 2021 and 2027. In 2022, only about 0.2% of the company’s total revenue was associated with low-carbon products, throwing into question the company’s financial commitment to a low-carbon transition. Importantly, Helleniq does not disclose its revenue share from low-carbon products.

Helleniq’s supplier engagement strategy, outlined in its code of business conduct, covers continuous improvement in environmental performance, sustainable growth, conserving resources, saving energy, limiting emissions and waste management. Despite this, no evidence was found to suggest the company engages with suppliers on climate change issues or greenhouse gas (GHG) emissions reduction through strategies, initiatives or partnerships. The company should set quantified targets to provide clear direction for its whole supply chain.

Helleniq has set targets to reduce its scope 1 and 2 emissions by 30% by 2030 and to achieve zero scope 1 and 2 emissions by 2050 compared to 2019. To support these objectives, the company aims to achieve a renewable energy generation capacity of more than 2 GW by 2030.

Helleniq’s transition plan ultimately aims to achieve net-zero carbon emissions by 2050, supported by low-carbon electricity, advanced biofuels and new technologies such as carbon capture and storage (CCS) and green hydrogen. This transition plan extends until 2030, but does not provide supporting financial content, nor is it informed by climate scenario analysis. The plan also does not integrate progress reporting or a review process.

Currently, Helleniq has a renewable energy capacity of 81 megawatts (MW). In 2021, the company was still working on the construction of a solar project with a capacity of 204 MW. During this period, Helleniq also aimed to complete the acquisition of wind power projects with a capacity of 38 MW and two solar energy parks with a combined capacity of 16 MW. Despite this, the company has yet to commit to phasing out the use of fossil fuels.

Despite the company’s scope 1 and 2 emissions intensity increasing by about 4% between 2017 and 2022, Helleniq has so far achieved 48% of its target to reduce its scope 1 and 2 absolute emissions by 30% by 2030 compared to 2019. However, driven by an increase in its scope 1 and 2 emissions intensity, between 2017 and 2021, Helleniq’s scope 1, 2 and 3 emissions intensity marginally increased. To align with its 1.5°C pathway, the company needs to decrease its scope 1, 2 and 3 emissions intensity by about 4% annually.

Helleniq’s objective is to achieve zero scope 1 and 2 emissions by 100% by 2050, and the company discusses becoming a zero-carbon footprint company by 2050. But Helleniq does not clarify if this includes its scope 3 emissions. In fact, it only reports its scope 3 emissions for 2022 and does not break them down by emissions category. This hinders transparency on the company’s performance towards its aims. The company has a transition plan, but it is not supported by the use of climate scenario analysis.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in just transition planning.

The company discloses the actions it takes to create new jobs as it expands work with photovoltaic (PV) parks and with local suppliers. However, no public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training and educational opportunities for workers and affected stakeholders. For instance, it offers training programmes for the younger generation as well as educational opportunities for workers. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to re- or up-skill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company offers a grievance mechanism for workers to report human rights abuses. However, no other evidence of policies or commitments of the company related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

The company commits to respecting the health and safety of its workers, and it discloses quantitative information on workplace health and safety. Furthermore, the company claims to pay all workers a living wage and discloses the share of workers covered by collective bargaining agreements. However, the company can strengthen its performance and disclosure on several key decent work issues, including working hours and workforce diversity.

The company has a public commitment to protecting personal data. Further, it includes anti-corruption and anti-bribery clauses in its business relationship contracts. However, the company can strengthen its performance and disclosure on all key ethical business topics, including data protection, tax, and lobbying and political engagement.