Stage 3 and 4: Impacts, risks, and opportunities (IRO) assessment

EPSO-G, the Lithuanian energy group, conducts a thorough regular materiality assessment to determine its sustainability priorities and impacts. This assessment involves identifying the most significant environmental, social, and governance impacts through stakeholder surveys and consultation with Group management. In 2022, over 600 stakeholders participated in the survey, representing various groups such as employees, suppliers, customers, and local communities. The Group Sustainability Policy, approved by the Board of Directors, mandates regular reviews of environmental and socio-economic impacts through materiality assessments, ensuring stakeholder involvement. EPSO-G evaluated 19 sustainability impacts based on its business activities, long-term strategy, and international standards such as SASB and GRI guidelines.

Ropo Capital, a Finnish B2B service provider, conducted a comprehensive sustainability risk assessment in collaboration with external consultants to identify environmental, social, and governance (ESG) risks within its operations and supply chain. The assessment yielded 17 critical, focal, and monitoring risks categorized into eight groups, with three deemed critical, two focal, and three for monitoring. Critical risks included challenges related to automation and digitalization, such as integrity breaches and discrimination, which could result in significant financial and reputational damage. Employee well-being emerged as another critical area, encompassing concerns about health and safety, working conditions, and gender discrimination. Compliance issues, particularly conflicts of interest and accountability, were also identified as critical risks. Focal risks focused on corruption and climate change, with Ropo Capital committed to combating corruption and reducing its environmental footprint. The assessment underscores Ropo Capital's proactive approach to addressing sustainability risks and its commitment to responsible business practices. Based on the sustainability risk assessment, an inventory of Ropo Capital's existing sustainability efforts, and benchmarking against industry peers, nine material sustainability aspects relevant to the business were identified. To prioritize these aspects, stakeholder dialogues and an impact assessment were conducted. The impact assessment followed a dual materiality perspective, analyzing the aspects' impact on Ropo Capital and how the company impacts them. Using the insights from stakeholder dialogues and the impact assessment, the material aspects were organized into a materiality pyramid to prioritize them based on their importance. This systematic approach ensures that Ropo Capital focuses its efforts on addressing the most significant sustainability challenges relevant to its business operations.

Nokia, one the biggest telecommunication companies in Finland, conducted a comprehensive materiality assessment in spring 2022, leveraging the expertise of an external consultancy. This assessment employed a multi-faceted approach, incorporating desktop research, stakeholder interviews, surveys, and insights from sustainability experts. Internal and external stakeholders, including employees, customers, investors, suppliers, partners, NGOs, and academics, provided valuable input. The materiality matrix resulting from this assessment was reviewed by Nokia's Group Leadership Team and Board of Directors. The top right quadrant of the matrix highlights the most significant topics identified, which are deemed relevant to both Nokia's business and stakeholders. The top five material topics identified for Nokia include industrial digitalization, bridging the digital divide, responsible business practices, ensuring the well-being of their employees, and prioritizing security and privacy concerns. Additionally, Nokia acknowledges the importance of addressing climate impact through their products, maintaining ethical business practices, ensuring privacy and security, implementing responsible sourcing practices, and prioritizing health and safety initiatives.

Sources of input for the materiality work included:

• Global macro trends with an impact on sustainable development

• Regular engagement with various stakeholders

• Requirements and information requests especially from customers and investors

• Benchmarking of industry peers and leaders in sustainability

• Corporate strategy and Code of Conduct

• Assessments of risks and opportunities through the Nokia Enterprise Risk Management system

• Analysis of the economic, environmental and social value created throughout the value chain

• Analysis of UN Sustainable Development Goals and Targets and their relevance to Nokia

• International sustainability frameworks such as SASB, the GRI Standards and the UN Global Compact

In 2021, Amber Grid, the gas transmission system operator in Lithuania, conducted a comprehensive assessment to determine the significance of environmental, social, and governance (ESG) impacts relevant to its operations, with active involvement from stakeholders. This assessment engaged a diverse group of 180 respondents, including employees, suppliers, customers, business partners, local communities, associations, trade unions, government entities such as the Ministry of Energy, investors, and heads of the Group’s companies and board members. Aligning with its sustainability policy adopted in 2021, Amber Grid committed to conducting regular materiality assessments with stakeholder participation to review ESG impacts and sustainability priority topics. These assessments are conducted at least once every two years, demonstrating the company's dedication to understanding and addressing the most pressing sustainability challenges.

Lithuanian Airports (LTOU) conducted a thorough assessment to identify and prioritize key sustainability topics through the development of a materiality matrix based on the GRI standards. This matrix highlights the economic, social, and environmental aspects that are of utmost importance to stakeholders and have a significant impact on LTOU's operations. It's important to note that all topics identified on the materiality map are considered essential, and even those categorized as medium importance will be addressed. To determine these material topics, several steps were taken. These included examining international trends and best practices within the aviation sector, assessing current sustainability initiatives and their impacts, analyzing stakeholder expectations, and conducting strategy sessions with internal experts and management. LTOU periodically analyses and updates material topics if necessary. Through this comprehensive process, LTOU aims to effectively address the most pertinent sustainability challenges while aligning with stakeholder expectations and industry standards.

In 2022, Playtech, the gambling software company present in Estonia, updated the Group’s materiality assessment by conducting a refreshed systematic scan of the priority issues for the betting and gaming and software and services sectors. They reviewed the frameworks defined by investors and the wider financial community, employees, licensees, gambling charities, regulators and the media in order to conduct this analysis. They then grouped a long list of issues into more meaningful clusters, which were prioritised through a variety of exercises, including internal interviews.

Akropolis Group, a Lithuanian real estate development company, undertook a thorough materiality assessment process to identify the most significant topics for the Group, drawing upon best practices. Initially, the company analyzed industry-specific issues before engaging in internal discussions with employees and management to prioritize these topics. To gain deeper insights into stakeholders' environmental and social needs, Akropolis conducted a comprehensive survey involving over 800 stakeholders, encompassing employees, visitors, tenants, partners, and shareholders. By leveraging the feedback received, the company identified key sustainability areas to be addressed and managed. These areas were then subjected to further analysis in alignment with international guidelines to assess the positive and negative impacts of the Group's activities. This comprehensive analysis not only informed the selection of material topics for inclusion in the company's reporting but also laid the groundwork for the development of its Sustainability Strategy, slated for finalization by the end of 2023.