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Environmental matters


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.

  Preventive measures
  • Introducing speed limits on unmade roads 
  • Damping down using water bowsers with spray bars 
  • Sheeting of construction materials and storage piles
  • Using defined moving routes and reducing in vehicle speed limits where required

Spills and leaks
during refuelling
  • Installing a sealed drainage systems at refuelling areas 
  • Providing suitable tanks (e.g. double skinned), bunds and impermeable liners at fuel stores and refuelling points 
  • Using drip trays for static plant (e.g. generators and pumps)
  • Training staff in refuelling and pump operations
  • Shortening the refuelling line as much as possible
  • Performing regular maintenance checks of hoses and valves
  • Conducting follow-up procedures for proper and safe refuelling by operators

Air emissions purchase
  • Ensuring that new vehicles comply with the current European Union emissions standards at the time of purchase 
  • Implementing a regular maintenance programme to ensure all new vehicles continue to comply with the relevant emissions standards  
  • Ensuring that older vehicles are maintained in order to eliminate extra emissions as much as reasonably practicable
  • Strictly enforcing speed limits in order to optimise fuel consumption and production of exhaust fumes, and minimise dust generation on unpaved surfaces.

Water contamination
  • Locating fuel stores and refuelling points further away from watercourses and aquifers
  • Providing a fire extinguisher adjacent to each item of mobile plant and equipment
  • Fitting effective silencers on all plant and machinery and providing ear defenders and/or plugs on sites 
  • No idling or revving of plant engines/vehicles 
  • Using controlled venting, silenced equipment and absorbing screens
  • Working at preferred times of day (daylight hours Monday to Saturday, otherwise communicated to the local community and authorities)

  • Operating the equipment within the manufacturer specification limits and limiting any overuse
Depletion of the stratospheric
ozone layer   
  • Ensuring that no ozone depleting substances (ODS) such as chlorofluorocarbons (CFCs) and hydro-chlorofluorocarbons (HCFCs), or products with known global warming potential are used

In preparing our emissions data, we have used the World Resources Institute/World Business Council for Sustainable Development (WRI/WBCSD) Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised edition) and emissions factors from the UK Government’s Greenhouse Gas Conversion Factors for Company Reporting 2016. For wastewater treatment and discharge operations we used conversion factors from 2006 IPCC Guidelines for National Greenhouse Gas Inventories.

Our reported data is collected and reported on in respect of six of the Group’s main businesses:
  • 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) 

Scope 3 includes emissions from:
  • 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.

The Group has in place a Code of Ethics, as well as policies which relate to environmental matters, employees, social matters, our respect for human rights and anti-corruption and bribery.

Copies of these polices can be found on the Group’s website:


2015 2016 2017
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
FTEs 15,955 21,278 25,900


 *Due to the nature of their operations, GHG, GGU and Teliani contributed to the increase in greenhouse gas emissions in 2017