Section ENVIRONMENT
TOPIC

HELLENIC PETROLEUM

HELPE climate change strategy and CDP ranking

HELLENIC PETROLEUM Group has incorporated into its strategy an action plan to address and mitigate climate change impacts. As our main business is refining, we are both a producer of energy products and an energy consumer. Energy consumption is not only a significant operating cost, but at the same time, the main source of carbon dioxide emissions. We are therefore designing the Group’s energy transformation toward a low carbon economy in response to increasing energy demand and in order to ensure energy sufficiency. We invest in energy efficiency projects, Renewable Energy Sources (RES) and second-generation biofuels, as well as in research and development of low carbon products for reducing carbon dioxide emissions. Since our activities are primarily in Greece, a country with a large coastal front, we have already started studying ways in order to adapt to and address the impacts of climate change. Our approach and results so far have been positive, with significant progress made in achieving quantitative targets (reduction in CO2 emissions intensity index and continuous reduction of carbon footprint), as well as external evaluation from CDP (formerly the Carbon Disclosure Project) with a score of “B-“ (“Management - Taking coordinated action on climate issues” level) in comparison with Oil & Gas Processing average “B” rating and companies global & European average “C” rating.

HELPE climate change strategy contributes substantially to the achievement of the UN Sustainable Development Goal (SDG) 13 regarding climate action and SDG 7 regarding clean energy.

The strategy is addressed to all HELLENIC PETROLEUM Group stakeholders, from employees, customers-consumers, suppliers - partners to investors, the business and scientific community, the local and wider community.

Continuous development and gradual implementation of the strategy (no time limit for completion)

(CDP questionnaire completion started in 2018 and has been submitted annually since then).

Climate change affects the Group’s business activities, creating significant challenges and opportunities. In order to properly manage and address climate change, the Group has developed a strategy for its energy transformation towards a low carbon economy, responding to the continuing increase in energy demand and ensuring energy sufficiency by taking relevant measures and implementing emission reduction projects. The Group's future investments are highly determined by its climate change strategy.

The implementation of the Group’s environmental policy related to energy and climate change is achieved by a series of tools, such as setting targets and key performance indicators. All environmental parameters are also monitored through European indicators and benchmarks are used to assess the Group’s position in relation to the European industry performance. In the framework of GHG emissions monitoring and reporting, the Group systematically monitors not only direct CO2 emissions (Scope 1), but also indirect emissions (Scope 2 and 3) to the maximum extent of its activities. Moreover, our staff’s and social partners’ continuous environmental education across a wide range of activities within the Group is an important part of our climate change management.

In addition, the Group is actively involved in the development of energy and climate change policies at a national and European level, including the EU ETS, the Energy Efficiency Directive and others.

In the context of all the above and with the main focus on continuous improvement, the Group participates since 2018 in the annual international evaluation of the CDP (formerly Carbon Disclosure Project) on climate change, the only Greek energy sector  participation (until 2020). Thus, every year the Group is invited to provide data not only on its current climate change management but also on the overall strategy to be followed in the future. The CDP questionnaire based on four pillars which outline the holistic approach of each company on the above. These pillars are corporate governance, the risks & opportunities that arise due to climate change, as well as the business strategy developed in this context. Moreover, the Group's performance in terms of CO2 emissions as well as other gaseous emissions is recorded in detail along with data on traded products, waste and wastewater management and the results of the Group’s climate change objectives. It is noted that since 2018, the CDP has incorporated questions from the Task Force on Climate-related Financial Disclosures/ TCFD, which focus on the business risks of climate change.

The result of HELPE strategy & performance rating remains for the last 3 years at the level of "Management - Taking coordinated action on climate issues" and specifically at “B-“, in relation to the average “B” rating for Oil & Gas Processing and the average “C” rating for all companies in Europe and globally (thereby laying the basis for further & continuous improvement). It is important to mention that every year actions are taken for further improvement, which, however, have not yet been reflected in the ranking.

  • Collaboration with the non-profit organization “CDP” for the evaluation of the Group's climate change strategy.
  • Collaboration with the University of Patras & the National Centre for Scientific Research "Demokritos" for the adaptation of HELPE critical energy infrastructure to climate change impacts.
  • Collaboration with universities, research centers for the development of low carbon products and solutions.

The Group's strategy on climate change requires the involvement and active participation of the majority of the Group's employees, from the top management, which sets the overall strategy and objectives, to HELPE engineers, who test and apply low carbon, energy efficient technologies.

All facilities and activities of the HELLENIC PETROLEUM Group

Our approach and results so far have been positive, with significant progress made in achieving quantitative targets (reduction in CO2 emissions intensity index and continuous reduction of carbon footprint) as well as external evaluation from CDP (formerly the Carbon Disclosure Project) with a score of “B-“ (“Management - Taking coordinated action on climate issues” level).

The reduction of the “tn CO2 emission per tn crude oil feed” index, which is monitored in relation to the base year 2014, was calculated at 22% in the year 2020 and exceeds the initial target set (5% by 2020).

Over the last nine years, RES plants with a total capacity of 26 MW have been developed and are already operating mainly on Group properties as well as other areas. Specifically, photovoltaic power plants with a total capacity/nominal power of 19 MW and a wind farm with a capacity of 7 MW in Messinian Pylos are operating. The total avoided CO2 emissions from RES is estimated at approximately 185,000 tons, while the future goal is to develop a RES portfolio of 300 MW by 2021 and 600 MW by 2025 (avoiding CO2 emissions respectively). In addition to the above, in 2020, a contract was signed with Juwi (22.15 mil€ investment) for the acquisition, construction and operation of a 204 MW photovoltaic project in Kozani, which is the largest in Greece and one of the largest in Europe. It is estimated to generate 350 GWh of energy per year, capable of providing zero-emission clean energy for 75,000 households, with an annual benefit/avoidance of 320,000 tonnes of carbon dioxide emissions.

HELPE climate change strategy benefits are multidimensional and can be divided into short-term (e.g. financial due to fuel and energy savings) and medium-term (e.g. increased competitiveness in a low carbon economy).