Ukrhydroenergo is studying the European experience in order to improve its ESG performance

This visit has become an important milestone in the Company’s efforts to implement ESG (Environmental, Social, and Corporate Governance) global best practices and to improve its corporate governance in line with European standards.

Today, ESG-oriented corporate governance and modern approach to doing business form the basis of Ukrhydroenergo’s sustainable development. ESG practices integrated in the company cover management quality, transparency, ethics, compliance, respect for human rights, occupational safety and implementation of sustainable business processes. ESG approaches have been integrated into all of the Company’s processes and are an integral part of its strategic development.

The visit was organized by AVgroup in collaboration with Alpage and ILF, with support of the European Bank for Reconstruction and Development (EBRD), as part of the technical assistance project aimed at developing and improving Ukrhydroenergo’s ESG practices. The key event was a diagnostic seminar at ILF’s office in Innsbruck, where the results of the comprehensive ESG assessment of Ukrhydroenergo have been presented. Participants have discussed the results of benchmarking against leading European companies and identified key areas for further improvement of ESG practices.

The project is expected to result in development of ESG strategy, implementation of integrated ESG and Risk Management System aligned with the Company’s key business priorities, establishment of a framework for management of climate risks and sustainability issues, and preparation of reporting roadmap in accordance with the requirements of the EU Corporate Sustainability Reporting Directive (CSRD).

During the visit, Ukrainian energy experts were presented the Austrian and European best practices in the areas of sustainable operation of hydro power plants, asset management, environmental compliance and stakeholder engagement.

During their stay in Austria, Ukrhydroenergo’s specialists have visited the offices of VERBUND AG — the Austria’s leading energy company and Europe’s largest producer of hydroelectricity. The delegation has learned about the company’s approaches to implementation of ESG principles, specific features of energy sector regulation at the European Union level, and practices of restoration of aquatic ecosystems. The participants have also visited the Freudenau HPP where they were presented some modern, nature-oriented solutions in hydropower.

Special attention has been paid to scientific aspects of sustainable development. The delegation has visited the BOKU Laboratory — one of the Europe’s leading research centers in the field of river ecology and hydraulic engineering. The Institute’s experts have presented modern approaches to achieving a balance between electricity generation and preservation of natural ecosystems, as well as research findings on fish migration, sediment transport and ecological management of river systems.

The final stage of the agenda was the visit to TIWAG (Tiroler Wasserkraft AG) — one of the largest producers of renewable electricity in Austria. Ukrainian hydropower specialists were presented the company’s best ESG practices and have visited the Silz Hydropower Plant, where modern solutions in development of hydropower, protection of aquatic ecosystems, and biodiversity conservation were presented. They have also visited the construction site Inntal Imst-Haimingo — one of the latest major hydropower expansion project.

This study visit has allowed the participants to become familiar with practical experience of integration of ESG principles into the operations of energy companies and the European approaches to environmental responsibility and sustainable development. Ukrhydroenergo continues to implement the world’s best ESG practices, considering sustainability, transparency and responsible management as key factors for long-term development and enhancement of its competitiveness on the European market.