Energa’s improved score in ESG Vigeo Eiris rating
Energa was awarded a record score of 42 in Vigeo Eiris rating for its efforts in the social, environmental protection and corporate governance areas. The high rating enhances the Energa Group’s credibility among financial institutions and affects the cost of service of the “green credit facility”.
At the start of March 2020, Vigeo Eiris, an international agency and a subsidiary of Moody’s, announced its rating. The institution specialises in rating enterprises based on the social and environmental criteria as well as specifications associated with sustainable growth. The Energa Group was rated 41st out of 66 enterprises from the power and gas sector.
– Obtaining such a high score in the rating of Vigeo Eiris, an institution renowned both in the Polish and international financial markets, represents a major achievement for us. Not only does it attest to our credibility among financial institutions but it also proves that our endeavours in the area of social responsibility and sustainable growth have been widely recognised, argues Marek Kasicki, the Vice-President of the Management Board and Chief Financial Officer of Energa SA. This is of special importance to us. It further strengthens our belief that Energa’s strategy, oriented towards addressing environmental issues and building relations with customers, local communities and employees based on partnership, is a step in the right direction.
High score for environmental strategy
The agency rated Energa in three areas, namely environmental protection, corporate governance and social activity. The Group was awarded the highest score above the average for as many as three components relating to environmental protection. Introduction of the EcoManagement and Audit Scheme (EMAS) at the Group’s key companies, adoption of the environmental strategy and implementation of efficient raw materials management, already from the stage of design, through production, consumption, to waste collection and management, as well as the taking of measures to protect fauna and flora, maintain the stability of ecosystems and to preserve biological diversity were appreciated here.
The social dialogue pursued by the Energa Group companies with stakeholders within the framework of ongoing investment processes and drafting of the Corporate Social Responsibility (CSR) report was also rated highly. The focus on human rights was rated equally highly, above the sector’s average. Energa’s anti-mobbing and anti-discrimination mechanisms in place as well as its code of ethics and compliance management system all contributed to the Group’s high score. Quality of work, including implementation of flexible working time and the home working option, was also taken into consideration and greatly appreciated.
Energa received the highest score among the Polish companies from the energy sector for pro-active co-operation with Vigeo Eiris. The company provided the agency with as much as 85% of the required information. Not only the information contained in the questionnaires but also that found in the public domain was rated.
National leader in ESG-linked financing
– The score awarded to our company rose by as many as 9 points compared to the previous rating. For the first time in the Group’s history, ESG rating may bring tangible benefits to the Energa Group as the level of the lending margin on the secured funding is linked to the rating score, claims Marek Kasicki, Vice-President of the Management Board and Chief Financial Officer of Energa SA.
This year’s Vigeo Eiris rating improves Energa’s financial prospects. It is worthwhile to remember that the company and a consortium of five banks, namely Santander Bank Polska SA, Bank Gospodarstwa Krajowego, PKO Bank Polski SA, CaixaBank SA Oddział w Polsce and MUFG Bank NV, signed a PLN 2 bn credit facility agreement on 17 September 2019.
Thus, Energa secured its record funding over a period of 5 years (with an option to extend the repayment period by two years) under the special ESG-linked loan formula related to the pursuit of sustainable growth objectives. That mechanism was applied in Poland for the first time. Energa SA is a forerunner in that area by rendering the financial outcome dependent upon the ESG-linked areas.