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Governance

ESG Governance Index

Good governance is essential for ensuring our sustainable success in the long term. In addition to designing clear objectives regarding ethics and transparency, an environmental, social, and governance (ESG) index was created to help us embed ESG factors into our business activities and decision-making processes, including the variable remuneration of our workforce.

The ESG Governance Index consists of the following commitments:

0 or 1
Develop an ESG journey, including an annual sustainability governance workshop, with the Board
0 or 1
Provide a bi-annual assessment of the risk situation in every Group entity
0 or 1
Add Sustainability aspects to charter of BoD Committees
0 or 1
Establish an annual Board performance review
0 or 1
Have an ESG expert in the BoD
0 or 1
Create a remuneration Committee within Eurogrid GmbH
0 or 1
Review and publish Severance pay policy for senior executives leaving the company: (1) No specific termination clause, (2) just local regulation applies
0 or 1
Add an Executive-level responsibility for ESG topics both at Group and local levels (GRI 102-20)
0 or 1
Ensure a minimum of 20% for the weight of Act Now objectives in the variable remuneration of EXCO and EGMB members
0 or 1
Set up annual local Exco meeting on how to embed Sustainability in the decision-making process (Budgets, Strategic planning, organisation)
0 or 1
Have all Act Now objectives in the Strategic Business Roadmaps of local entities and allocate required resources (FTE and €)
0 or 1
Bridge 90% of the gaps between Elia/50Hertz's operations and the preselected set of ESG standards published by ratings agencies, investors and regulators


                                                               ∑ 0 … 12/12 ESG Governance score

Both indexes are forward-looking and composed of twelve commitments we want to achieve in the coming years. We consider improving our governance and compliance a running target on challenges that will evolve over time. Thereby, we make sure that we always aspire to the highest standards.

Compliance Index

Next to the ESG governance index, a compliance index, which guides us in introducing the right measures to ensure compliance with all relevant legal and regulatory requirements, was created. The index consolidates key requirements needed to ensure that we are not only compliant with all relevant regulatory requirements  but also prevent any kind of fraud or abuse, detect compliance issues at an early stage, and implement prompt corrective actions.

The Compliance Index consists of the following commitments:

0 or 1Assign one Compliance coordinator in 50Hertz and ETB
0 or 1Set-up an anti-bribery and corruption policy for all Group entities
0 or 1Write a conflict of interest policy for all Group entities
0 or 1% employees having followed the training on anti-bribery and corruption and conflict of interest >80%
0 or 1% of the procurement volume spent from suppliers having signed the supplier Code of Conduct > 80%
0 or 1Report according to IIRC as from 2023 and TCFD from 2024
0 or 1Is the% of timely implemented internal audit recommendations > 95%. If yes, 1; else 0
0 or 1No confirmed incidents of corruption and actions taken (GRI 205-3)
0 or 1No non-compliance with environmental laws and regulations notified by authorities or certification body (GRI 307-1)
0 or 1No Legal actions for anti-competitive behavior, anti-trust, and monopoly practices (GRI 206-1)
0 or 1No data breaches notified to the data protection authorities (GDPR violations)
0 or 1Publication of a corporate tax disclosure (GRI 207)
                                                                  ∑ 0 … 12/12 Compliance score

Prevention of Corruption - 50Hertz's Ombudsman

50Hertz belongs to the companies which apply a zero tolerance policy and actively prevent and combat corruption. On the occasion of a reinforcement of our investment capacity, we have extended our corruption prevention program; an external ombudsman will now be available as contact and confidence person to our collaborators, suppliers and contractors, as well as to third parties. He is an external independent lawyer bound to professional secrecy. The information provided by a person will only be transmitted with his/her express consent to the Compliance Subcommittee, which is responsible of these cases in the company; by request, the information can also be transmitted anonymously.

Dr. Rainer Frank has been appointed as ombudsman of 50Hertz. He is a lawyer specialized in criminal law and in the area of economic criminal cases especially.

Below are our ombudsman's contact details:

Rechtsanwalt Dr. Rainer Frank
Fachanwälte für Strafrecht am Potsdamer Platz
Potsdamer Platz 8
10117 Berlin

Phone number: +49 30-31868546 or +49 30-3186853 (Law office)
Fax number: +49 30-31868555
E-Mail: ombudsmann-50hertz@fs-pp.de or mail@fs-pp.de (Law office)

Further information and details on the offenses in this framework can be found here: www.ombudsmann-50hertz.fs-pp.de

Should you have any question on our ombudsman system, please call Boris Rogowski, Compliance Coordinator, phone number: +49 30-5150-2787, or Dr Frank Hölzer, Head of the Law Department, phone number: +49 30-5150-2191.

Should you be or become aware of any processes relating to our company and which appears to be unlawful favoritism or illegal behavior, you can inform our ombudsman. We invite you to make use of this service.