The Group recognises that its operations have both an indirect and direct impact on the environment, and therefore seeks to establish management approaches which will help it become a more environmentally-friendly institution. Being the leading financial institution in Georgia, the Bank, through the projects it finances, produces significant indirect impacts on the environment. In order to properly manage this impact, the Bank has implemented Environmental and Social Policy and Risk Management procedures, as detailed in the “Social matters” section.
As for the direct environmental impact, we believe that the impact of the banking and insurance businesses is not significant. Nevertheless, we undertake a number of measures to reduce electricity, paper, water and fuel consumption. “Green Boxes” are placed on every floor of the Bank’s headquarters and are designated to collect paper for recycling purposes. In 2017, the lighting system in all of the Bank’s service centres was replaced with energy efficient LED lamps, which consume far less electricity than traditional economical ones. 30W lamps were replaced with more energy efficient 12W lamps, and 40-60W light bulbs with 11W. Furthermore, installation of modern computer technology resulted in reduction of energy consumption from 500-800W per unit to 150-300W. Centralised uninterruptible power supply is being installed in the Bank’s service centres, which will save considerable energy resources compared to individual systems. The most significant direct impact on the environment within the Group is created by our real estate development business, m2 Real Estate. The company addresses industry specific environmental issues and undertakes appropriate measures to manage them. The company’s projects are constructed with impeccable attention to energy efficient design for sustainable development, which achieves energy savings over the long term. Aiming to increase efficient use of energy, water and materials, m2 installs energy efficient lighting systems and uses low emissivity window glasses and other modern insulation materials to cover a facade of the buildings. This reduces a U-value of constructed buildings to 0.21W/m2K. As a result, it is expected that utility costs in these buildings will be cut by up to 43%, compared to average residential buildings in Georgia.
GGU is currently in the process of implementing an Environmental and Social Management System (ESMS) in accordance with the roadmap schedule presented in the Environmental & Social Policy Framework, adopted by the company in 2016. ESMS is in compliance with the Georgian legislation and IFC performance standards (Environmental, Health and Safety guidelines for Water and Sanitation). As part of the ESMS, environmental and social audit of the company has been performed. The audit report covers the environmental issues that are mainly associated with water treatment, water distribution, sanitation (sewerage system) and wastewater treatment and discharge, as well as occupational health and safety issues related to accidents and injuries, chemical exposure, noise, etc. To manage and mitigate the risks associated with GGU’s business, the company has elaborated ESMS procedures and topical management plans, which are implemented according to the Environmental and Social Action Plan (ESAP) in the set timeframe. ESMS will facilitate the process of obtaining the ISO14000 standard for environmental management and the ISO26000 standard for social responsibility.
GHG’s most significant environmental impact is associated with the generation of medical waste. The company developed medical waste management record keeping standards. GHG’s personnel is responsible for filling out daily and weekly forms, such as: waste registration form, waste information form and hazardous waste transportation form. Special storing rooms were set up in GHG’s hospitals, to place waste before final disposal. To prevent human and environmental harm, the company’s clinics collect and dispose of medical and biological waste through an outsourced service specialising in medical waste disposal. For waste collection, GHG uses plastic bags that have sufficient strength and are secured with staples to safely retain waste. Also, the company does not fill more than two-thirds of the bags’ capacity. Further, steam sterilisation is used to decontaminate biological and bio hazardous waste, including blood. All used sharps are placed only in the labelled, hermetic single-use special containers made of hard plastic. Waste is collected from GHG’s sites daily, or twice a day when required. The maximum on-site storage time of waste is up to 24 hours.
We have reported on all of the emission sources required under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 (Scopes 1 and 2) and additionally have reported on those emissions under Scope 3 that are applicable to our business. All reported sources fall within our Consolidated Financial Statements, which can be found on pages 118 to 212. We do not have responsibility for any emission sources that are not included in our Consolidated Financial Statements.
|Spills and leaks
|Air emissions purchase||
|Depletion of the stratospheric
- Banking, represented by the Bank, which includes all of its offices and retail branches, where the Bank has operational control
- Real estate development, represented by m2 Real Estate, which includes its offices and construction sites
- Utility and energy business, represented by Georgia Global Utilities, which includes all of its offices and operational sites
- P&C insurance, represented by Aldagi, which includes all of its offices and retail branches, where the company has operational control
- Beverage business, represented by Teliani Valley, which includes all of its offices and operational sites
- Georgia Healthcare Group, represented by Evex and Imedi L, which includes its main office and hospitals, where the company has operational control
Scope 1 (combustion of fuel and operation of facilities) includes emissions from:
- Combustion of natural gas, diesel and petrol in stationary equipment at owned and controlled sites
- Combustion of petrol, diesel and aviation fuel in owned transportation devices (cars and aeroplanes)
Scope 2 (electricity, heat, steam and cooling purchased for own use) includes emissions from:
- Used electricity at owned and controlled sites; to calculate the emissions, we used the conversion factor for Non-OECD Europe and Eurasia (average) conversion from the UK Government’s Greenhouse Gas Conversion Factors for Company Reporting 2014
- Used heat and steam (only applies to one site of Imedi L)
- Air business travel (short haul and long haul); information on the class of travel is unavailable, hence, we used an “average passenger” conversion factor
- Ground transportation, including taxis, coaches and car hire Data on emissions resulting from travel is reported for business-related travel only and excludes commuting travel. Data from joint ventures, investments or sub-leased properties have not been included within the reported figures. The data is provided by on-site delegates, invoices and metre readings.
TOTAL GREENHOUSE GAS EMISSIONS DATA FOR THE PERIOD BEGINNING 1 JANUARY 2017 AND ENDED 31 DECEMBER 2017 (TONNES OF CO2E)*
|Scope 1 (emissions fuel combustion and facility operations)||6,679||10,597||19,165|
|Scope 2 (emissions from electricity, heat, steam and cooling purchased for own use)||12,183||30,826||47,869|
|Scope 3 (emissions from air travel and ground transportation)||4,487||10,266||16,229|
|TOTAL GREENHOUSE GAS EMISSIONS||23,349||51,660||83,264|
|TOTAL GREENHOUSE GAS EMISSIONS PER FTE||1.46||2.43||3.21|
*Due to the nature of their operations, GHG, GGU and Teliani contributed to the increase in greenhouse gas emissions in 2017