5.3. Impact of climate issues on the Group operations

The Group has not identified any major impact of the climate action agenda, aimed at achieving climate neutrality in compliance with Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’), at the current and foreseeable future operations of the Group.

Specifically, the 2023 Budget and the 2025 Strategy of the Group do not provide for a major impact of climate issues on the business run by the Group. On a current basis, the Group has also been analysing climate risk issues present in the value change, as well as the potential impact of the risk of transition to low-emission economy. As of this day, no major impact of the aforesaid factors on the financial statements for the year ended 31 December 2023 has been identified. Neither the Company nor the companies of the Capital Group were covered with the Community Emissions Trading Scheme (ETS) and in the opinion of the Management Board, they are not exposed to the risk of stricter regulations in this respect. Currently, the Group does not see any major impact of climate change on prices or availability of materials (including energy prices) sourced by the Company and the companies of the Capital Group. Moreover, the Group does not possess any major in-house sources of electric energy or gas. All property, plant and equipment comply with environmental requirements, both the currently binding ones and those expected in the future. The Group has not currently identified any requirement that would be imposed on it by the EU regulations (including the one referred to above) to invest in or modernise the possessed assets.

The impact of environmental risks on the financial data disclosed in these statements has been presented in note 36.6.