In February 2022, ALTEO Plc. received a Comprehensive ESG Risk Rating and was assessed by Sustainalytics to be at High risk of experiencing material financial impacts from ESG factors. ALTEO received an ESG rating of 30.8 points on the 0-50 risk scale of Sustainalytics. The analysis highlights that the industry is fundamentally exposed to higher risk and, as such, the company's exposure falls into a higher category to begin with. At the same time, the rating also considers how the company responds to the risks arising from its operations and how it manages their impact. For the latter, ALTEO has been identified as having a strong risk management in place.
In February 2022, ALTEO Energiaszolgáltató Nyrt. became the first company in the Hungarian energy sector to obtain an independent, international ESG Risk Rating. Based on the Sustainalytics assessment, the company achieved a lower ESG Risk Rating than the industry average.
In terms of aggregate results, ALTEO received an ESG Risk Rating of 30.8 points on the 0-50 risk scale of Sustainalytics, which assesses the company's environmental, social and corporate governance impacts. This makes ALTEO the first in Hungary to achieve a lower ESG Risk Rating level than the average in the sector of independent energy producers and traders, and utilities.
The analysis highlights that the industry is fundamentally exposed to higher risk and, as such, the company's exposure falls into a higher category to begin with. At the same time, the rating also considers how the company responds to the risks arising from its operations and how it manages their impact. For the latter, ALTEO has has been identified as having a strong risk management in place: it has introduced robust ESG programs, practices and policies to effectively control and mitigate existing risks. With the exception of carbon emissions arising from the operation of natural gas-powered power plants, all other ESG themes received a medium, low or negligible risk rating, with certain indicators showing 100% or close to 100% compliance. "Last year we announced our intention to continue as a certified company under the ESG approach as soon as possible. As a listed company, transparency is a fundamental principle for us, and as a new generation energy provider, we want to set an example to all energy market players", said ALTEO CEO Attila Chikán Jr., adding that "we are proud to be the first company in Hungary in the energy sector, not including oil and gas industry, to obtain ESG Risk Rating (moreover, by the deadline we have set for ourselves), and we are hoping that this will gradually become a market expectation in the Hungarian corporate sector as well."
"Since our establishment in 2008, sustainability has accompanied us in all our business decisions, and the ESG Risk Rating provides us with the reference points that form the basis of a comprehensive ESG strategy covering all areas of sustainability," said Anita Simon, Deputy CEO for Sustainability and Circular Economy at ALTEO. In her view, the analysis covers all sector-specific risks and also makes it clear what measures can be taken to mitigate these risks, allowing for the results to be used as a starting point for more ESG conscious company operations in the future.
The detailed Sustainalytics report is available here.
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