Responsibility - ESG

Auris Energy Sustainability

At Auris Group, we believe that the most effective way to transition to a zero-emission society is to help companies reduce their carbon dioxide emissions and increase their energy efficiency every day. For companies to remain competitive, and for society as a whole to move towards a cleaner future, we need continuously better and comprehensive energy efficiency, and the cleanest possible energy that can always be relied upon. This guides the operations of our Group today and in the future.

Ensuring a carbon-neutral future is essential for humankind. Companies can play a large part in reaching this goal, here and now. To combat climate change, companies need cleaner energy that increases their competitiveness and improves their bottom line.

In 2023, Auris Energy continued its determined transformation into a more sustainable, service-
oriented and versatile energy company.

Our goal is to help companies to reduce their carbon footprint and increase their energy
efficiency significantly and quickly. We are committed to cutting emissions from both our
own operations and our customers, and we have already achieved many concrete results.

We continued the restructuring programme of our gas distribution network as planned and
further reduced our methane emissions from gas distribution. Our heat business also
continued its transition to be low-carbon last year.

We produced approximately 110 GWh of heat and steam for our customers. The share of
heat in our energy production decreased slightly, while our steam production increased,
which is proof of our flexibility and ability to meet our customers’ needs. In 2023, a larger
share of the energy purchased by our customers was produced from renewable energy sources, such as green electricity and biogas.

Our commitment to the future of clean gases is illustrated by the acquisition of a majority
shareholding in a biogas production plant in Mäntsälä. The plant processes renewable
energy and recycled nutrients from municipal and industrial side streams. Following the
transaction, we became not only a biogas seller and distributor, but also a producer of
domestic carbon-neutral biogas. This increases our opportunities to serve both the environment and our customers better and more responsibly.

Safety is of paramount importance to us, and we have invested significantly in the
safety of our employees, contractors and customers. We continuously work to improve
our safety culture and provide comprehensive training and support to our employees.

Last year, we put studying, maintaining and developing customer satisfaction at the forefront of our development projects. Customer satisfaction is dear to us, and the customer is also at the heart of our renewed strategy. We are constantly improving our services according to the needs of our customers. We have received very positive feedback from our customers, which indicates that we are on the right track. We will continue to listen to our customers with a keen ear and develop our services according to their needs.

The ongoing war in Ukraine has arisen deep concern and sadness in us, but at the same time, it has strengthened our decision to invest more in sustainable energy solutions. We want to be part of a solution that promotes peace and stability in the world. Therefore, we have ensured that all of the fuels and services sold by us come from countries that do not support the war in Ukraine.

The goal of our environmental responsibility is carbon neutrality

Our environmental targets are an integral part of our strategy. In 2040, we will be a carbon-neutral group in terms of direct emissions from our own operations. We have set as our milestone that by 2030, 50 per cent of the gas distributed
by us is carbon neutral and 75 per cent of the heat and steam we produce is emission-free.

In accordance with our environmental responsibility targets, we will materially increase the proportion of biogas and other low-emission gas of the gas sold and distributed by us. Our goal is for low-emission gas to make up 50 per cent of the gas sold by us by the year 2030.

Our second main milestone is to ensure that at least 75 per cent of the heat and steam produced by our energy service company will be emission-free by 2030. Our energy service company promotes the electrification and decarbonisation of the Finnish heat and steam market. The most significant means for this are solutions based on electricity and biomethane.

In addition, we will continue to develop our gas distribution network by investing further in the reduction of methane leaks. For several years, Auris’ methane leaks have been less than 0.1 per cent of all the gas we distribute, i.e. significantly below
the limit required by the authorities. In addition to reducing methane emissions, continued investments in the renovation of our network will ensure high safety of the network as well as readiness for growth in the distribution of renewable gases in the near future.

In addition, we continuously improve our customers’ energy use by modernising and
optimising their sites and the equipment they use for energy production. All of our sites and projects are implemented in a way that minimises greenhouse gas emissions and impacts on the environment.

Our key sustainability themes based on the materiality analysis:

  1. Greenhouse emissions
  2. Occupational health and safety
  3. Adapting to climate change, flexibility and green transition
  4. Security of gas supply
  5. Asset integrity and critical event management

Environmental responsibility

Auris Energia Group recognises the environmental impacts of its industry and operations. Our operations support the energy transition of society at large and our long-term goal is to make our operations carbon neutral.

Natural gas and biogas play a very important role in the transition to a low-carbon future in line with the EU’s objectives.

We help our customers transition from natural gas and other fossil fuels towards cleaner forms of energy. For instance, a switch from natural gas to biogas enables our customers to immediately become carbon neutral.

Summary of environmental impacts

In 2002–2023, we have reduced the methane leaks or gas losses of our gas distribution network
by approximately 86%. In 2023, our methane emissions were down to approximately 0.07% of
the gas distributed.

Our most significant theoretically possible environmental risks are related to burst pipes in the
distribution network, fires, disruptions in gas distribution due to maintenance work on the
distribution network, defects in gas appliances, shortages of personnel during disruption
incidents, disruptions in gas distribution and vandalism in the distribution network. We prepare
for technical faults and damage by engaging in 24/7 monitoring. Burst pipes caused by earthworks are prevented by using advance notifications of earthworks and the demonstration of pipelines.

Auris Group’s energy production and energy consumption consist of the energy produced for
our customers in the form of steam and district heat, and the energy used for the heating and
lighting of our business premises in the form of electricity, district heat and natural gas. In
2023, the amount of energy produced for our customers dropped slightly from the previous
year’s level to approximately 109 GWh.

In accordance with the GHG Protocol, the emissions arising from our operations are categorised
into Scope 1, 2 and 3. Scope 1 emissions consist of the emissions arising from our own
operations, which include the emissions generated by the combustion of natural gas in energy
production, and methane leaks from gas pipes, as well as methane losses and flaring emissions
from our biogas plant.

The emissions arising from energy produced for our customers came to approximately 21,201
tCO2e in 2023. Gas leaks generated emissions of approximately 1,657 tCO2e. In 2023, gas leaks
in our distribution network, measured using the extremely accurate overflow method,
corresponded to approximately 0.07% of the gas we distributed. In 2023, our Scope 1 emissions
were 23,799 tCO2e in total.

Our Scope 2 emissions consist of purchased electricity. In 2023, we purchased approximately
1,941 MWh of electrical energy for our own use, with the resulting emissions being
approximately 163 tCO2e. The most significant reason for the increase in our electricity
consumption was the acquisition of our biogas plant.

Our Scope 3 emissions consist of our other emissions. With regard to this category, we are
currently only reporting the emissions from the kilometres driven by our personnel subject to
compensation, the emissions arising from the natural gas sold by us and, starting from this year,
also the emissions from MBV’s waste transport.

The number of kilometres driven by our staff increased in 2023. Our employees received
compensation for approximately 232,547 kilometres driven, corresponding to total emissions of
20.3 tCO2e. In the future, we will avoid unnecessary travel and thereby reduce travel-related
emissions.

In 2023, the emissions arising from the natural gas sold by us amounted to approximately
143,421 tCO2e, whereas the corresponding figure the year before was approximately 125,106
tCO2e. We are actively striving to reduce these emissions by offering our customers more
renewable energy options, such as biogas and, further down the road, synthetic gases, as well
as our already nearly emission-free energy services.

In 2023, our total emissions amounted to approximately 167,457 tCO2e, whereas the
corresponding figure the year before was approximately 152,560 tCO2e. During the existence of Auris Group, the most significant emission reduction has been the reduction of methane leaks in the distribution network. In 2023, our methane emissions estimated using volume flow
measurement were approximately 0.07% of the gas we distributed.

Due to the nature of our energy production operations, we may also generate other emissions,
such as NOx and SOx emissions and particulate emissions. The amount of NOx emissions was
approximately 10.38 tonnes in 2023. The other environmental impacts of our operations include
the consumption of water in the production of steam. Our water consumption in 2023 came to
approximately 73 megalitres, which includes both our energy production operations and the
water used on our premises.
Our office work generates office waste, which we reduce by using digital archives, for example.
We have not reported waste generated in the repair and expansion of the distribution network,
as the treatment of that waste is the responsibility of our subcontractors. However, our
procedures obligate our subcontractors to prevent adverse impacts on the environment and
waterways.

Our new business area –Biogas production, Mäntsälän Biovoima Oy

On 17 March 2023, our Group company Auris Energia Holding Oy acquired a
majority shareholding (72%) in Mäntsälän Biovoima Oy through a share
transaction. Following the transaction, Auris became not only a biogas seller
and distributor, but also producer. The plant’s former owners Watrec Oy and
Nivos Energia will continue as the plant’s minority shareholders and Juhani
Suvilampi as the company‘s acting CEO.

The company’s biogas plant based on digestion technology is located along
Helsingintie in Mäntsälä. Mäntsälän Biovoima processes renewable energy
and recycled nutrients from municipal and industrial side streams. The plant
produces environmentally friendly, renewable, domestic energy from
biowaste from restaurants and shops, for example.

The completed acquisition contributes to Auris Energia’s goal to increase the
share of renewable gases in its business and to help its customers towards
carbon neutrality. The plant produces about 10 GWh of biomethane per year,
and there are plans to expand its capacity.

The goal of our environmental responsibility is carbon neutrality

Our environmental targets are an integral part of our business strategy. Auris Energia Group’s long-term strategy is focused on increasing the share of biogas and other low-emission gases and energy forms in our services as well as the prevention of gas leaks. Our goal is for the Group to be carbon neutral 2040.

We will materially increase the proportion of biogas and other low-emission gas of the gas sold and distributed by us. Our goal is for low-emission gas to make up 50% of the gas sold and distributed by us by the year 2030.

We will achieve this target by increasing the share of biogas and other low-emission gases of the gas in our distribution network and by incorporating carbon dioxide capture technology into our business operations. We will also continue to actively pursue the reduction of gas losses in our networks.

Auris Energiapalvelut’s sustainability strategy is part of the Group’s sustainability strategy. Our target is for 75% of the steam and heat produced for our customers by our energy services to be emission-free by the year 2030.

Our other activities to reduce our carbon footprint are focused on measures that promote both the Group’s business operations and well-being in society. We have divided these into six quantifiable measures:

  1. Auris Group will significantly reduce its own and society’s carbon dioxide emissions by 2030 and 2040, respectively. To achieve this, we will replace high-emission energy sources, such as coal, oil and liquefied petroleum gas (LPG), with renewable gases. The ultimate goal is zero-emission business operations.
  2. Auris Group will increase the share of its total gas distribution and sales represented by biogas and low-emission gas.
  3. Auris Group will reduce methane leaks in its distribution network by upgrading the network.
  4. We will increase the efficiency of our customers’ gas consumption through the modernisation and optimisation of the tools related to gas use.
  5. In the future, the majority of Auris Energiapalvelut’s products and services will be based on low-carbon and zero-carbon energy production.
  6. We will contribute to the future of renewable and low-carbon energy production by supporting the research and testing related to low-carbon technologies.

Safety

The safety and health of our employees, customers and partners are the
foundation of everything we do. We continuously monitor and improve the
safety of our operations and report on it on a regular basis. We identify and prevent the realisation of detected safety and well-being risks in our
operations and in the operations of our subcontractors.

Occupational health and safety

Most of the work performed by our personnel is office work, which involves
minimal physical risks but potentially significant psychological stress. We take
increasing psychological stress into account and assign duties in a balanced
manner. Our occupational health care provider has also assessed the health
and safety risks of our gas distribution and energy service sites. In 2023, we also commissioned an external expert to conduct an extensive survey of the overall safety status of our group. In addition, we appointed our own safety manager, who has taken overall responsibility for the development of our safety work.

Compared to 2022, absences due to sickness at the Group slightly increased in 2023, while the number of permanent employees increased during the same period.

Our safety rules and procedures specify detailed requirements for the safety of our operations and the operations of our subcontractors.

There were no accidents leading to absence in our Group during the period under review concerned by this sustainability report. Amongst other things, we prevent accidents by means of safety walks, which involve monitoring compliance with safety instructions by our employees and subcontractors.

We identify potential risks at each site before any work is carried out and report these to the management. Our Board of Directors monitors the safety of the work carried out by, and for, the Group through regular reporting in conjunction with each board meeting, i.e. at least every other month.

Safety walks and inspections have had a positive effect on our efforts to maintain a high standard of safety, and we did not have to issue any complaints to our subcontractors for neglecting to comply with safety measures during the period under review. A total of 29 safety walks were carried out in 2023.

Our Auris companies have separate occupational safety guidelines to which all employees are required
to adhere. We require our employees to engage in continuous safety observations, which are documented in the Auris safety channel. A total of 207 safety observations were made in 2023.

The construction, quality, inspection and use of the gas pipeline and the notes of the operations supervisor are documented in a separate monitoring log.

The estimated health and safety impacts of products and services

As a leading company in our field, we understand the health and safety risks associated with our products and services. To minimise these risks, we comply with all legal requirements, monitor our distribution network 24/7 and, where necessary, provide instructions to our customers and partners on how to minimise risks.

We also conduct safety walks at our subcontractors’ construction sites, and Auris Energiapalvelut monitors its energy production plants 24/7, all year round.

The safety and quality of the gas we sell and distribute is the responsibility of
the Finnish gas transmission system operator Gasgrid Finland Oy.