REG - Etalon Group PLC - Etalon Publishes First-Ever Sustainability Report

EtalonAnnouncement

11/08/2023 12:17

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RNS Number : 1102J  Etalon Group PLC  11 August 2023

11 August 2023

 

Etalon Group Publishes Its First-Ever Stand-Alone Sustainability Report

ETALON GROUP PLC ("Etalon Group" or the "Company"), one of Russia's largest
and longest-established development and construction companies, has published
its first Sustainability Report (the "Report").

Preparation and publication of a separate Sustainability Report is the result
of systematic implementation of the goals outlined in the current ESG Policy
of Etalon Group and consistent work to improve the quality of information
disclosure.

The Report contains information on a wide range of material topics, including
industrial safety, environmental stewardship, human capital, relations with
local communities, innovation and sustainable supply chains. For the first
time the Company is publishing information on its direct and indirect
energy-related emissions (scope 1 and 2) as well as downstream indirect
emissions during the product life cycle and in connection with business
travel. In addition, the Report presents the Group's Sustainable Development
Strategy, which outlines the Company's ESG-related goals and initiatives.

Commenting on the publication of Company's first Sustainability Report, Chief
Executive Officer Gennady Shcherbina said:

"Despite the turbulence of recent years, we have been consistently
incorporating and systematising sustainable approaches to doing business.
Following the approval of our ESG Policy in 2021, we developed a
sustainability strategy and goals: with due regard for new global challenges,
we are focusing on the efficient use of resources and combating climate
change, caring for our employees, developing local communities and conducting
business in a responsible manner.

This year we are publishing a separate Sustainability Report, thereby
fulfilling the promise set out in our ESG Policy. We see the publication of
the Report as an important step in increasing the transparency of our
non-financial disclosures and engaging all stakeholders in improving our
sustainable practices.

In 2022, we made important progress on environmental, social and corporate
governance issues.

As part of our social initiatives, we have built schools and kindergartens in
the regions where we operate, which will be attended by more than 780
children; we are taking part in the 'Science and Universities' national
project; we have implemented more than 65 community development activities and
programmes, including charitable projects. A traditional focus for us remains
the well-being and safety of our employees, whose number increased by almost a
quarter to 5,900 in 2022 as we grew our business in the regions and acquired
YIT Russia. We continued to improve our approach to occupational health and
safety and to digitalise our workplace safety system. As a result, there were
no fatal accidents at our construction sites, and injury rates decreased.

We continued to improve our corporate governance and systematise our approach
to sustainable business development: we developed and approved the Supplier
Code, which includes ESG criteria for evaluating contractors; we developed a
sustainability strategy and continue to work on the formation of specific
measurable ESG goals.

As part of our efforts to combat climate change, we take a particularly
rigorous approach to our resource-efficiency calculations when designing
buildings, selecting materials and vetting suppliers. Several of our
properties have already been certified in line with the Green Zoom green
standards. In 2022 we continued our efforts in this area, taking part in a
trial project for a new national GOST R green standard for apartment buildings
developed by Dom.rf.

We also decided to digitalise our carbon footprint, calculating our scopes 1
and 2 and, in part, scope 3 greenhouse gas emissions this year for the
purposes of our first stand-alone Sustainability Report. We developed our
methodology for calculating greenhouse gas emissions as a tool for monitoring
and reducing our environmental impact by optimising our supply chains and
route planning, taking a responsible approach to our choice of materials, and
implementing other impactful measures to reduce our carbon footprint. One such
measure is the development of state-of-the-art industrial housing construction
technologies. We expect that by transitioning to the production of
prefabricated elements and the large-scale application of this technology we
will be able to considerably reduce CO(2) emissions both throughout the
production cycle and the life cycle of the buildings.

We are committed to maintaining our high standards of social responsibility,
expanding our sustainability practices and sharing our success with a wide
range of stakeholders."

The Report is available at
https://www.etalongroup.com/investor-relations/annual-reports-and-accounts/
(https://www.etalongroup.com/investor-relations/annual-reports-and-accounts/)
.

This and other recent announcements are available on the Etalon Group website:
https://www.etalongroup.com/investor-relations/investor-news/
(https://www.etalongroup.com/ru/investoram/novosti/)

 

Contact information

Etalon Group

IR Team

T: +44 (0) 20 8123 1328

E: ir@etalongroup.com

EM

E: etalon@em-comms.com (mailto:etalon@em-comms.com)

 

About Etalon Group

Founded in 1987, Etalon Group is one of Russia's largest development and
construction companies. The Company focuses on middle class residential real
estate in the Moscow and St Petersburg metropolitan areas. In 2021, the
Company began a regional expansion programme and has already launched new
projects in Omsk, the Novosibirsk region, Ekaterinburg, Tyumen and Kazan. With
a 35-year history, Etalon Group has one of the longest and most successful
track records in the Russian real estate industry. Since its foundation,
Etalon Group has delivered 8.6 mln sqm of real estate.

Thanks to its integrated business model, Etalon Group is able to create added
value for customers and shareholders at every stage of development, from land
plot analysis and acquisition to the operation and maintenance of existing
properties. Etalon Group employs more than 5,800 people, and its nationwide
sales network covers 35 regions of Russia.

Etalon Group's assets comprise 38 projects at the design and construction
stages, unsold inventory at completed residential complexes and commercial
properties, with total unsold NSA of 6.4 mln sqm, as well as a construction
and maintenance division. According to Nikoliers, the value of Etalon Group
assets as of 31 December 2022 was RUB 288 billion.

In 2022, Etalon Group's new contract sales totalled 292 ths sqm, or RUB 58.7
billion, not including accumulated new contract sales at YIT Russia as of its
acquisition.

The Company's revenue in 2022 amounted to RUB 80.6 billion, with EBITDA of RUB
16.5 billion.

Etalon Group's GDRs have been listed on the Main Market of the London Stock
Exchange since 20 April 2011 and in the Level 1 quotation list of Moscow
Exchange since 31 January 2020 under the ticker ETLN. In July 2023, the
Company completed the process of changing the basis for its listing on Moscow
Exchange.

 

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