SCOPE AND BOUNDARIES OF THE REPORT
This ESG report provides a structured overview of SSE Group’s sustainability performance for the reporting period January 2025 to June 2026. Where relevant, 2024 data is included as baseline reference to provide context and demonstrate progress over time.
Reporting Period: The data presented in this report covers the period from January 2025 to June 2026. Historical data and forward-looking targets are included where available to illustrate roadmaps and progress.
Organisational Boundaries: The scope of the report includes all entities consolidated in SSE Group’s financial statements, operating across Switzerland, Czech Republic, Poland, Romania, Germany, Sweden and other countries where we operate. While we consider impacts across the value chain, this report does not cover the downstream use of our products, as these impacts are disclosed by our customers in their own ESG reporting.
METHODOLOGIES
ESG data is collected through standardised internal processes, including audits, surveys, and monitoring systems. It is then validated and analysed using recognised methodologies and performance indicators. Our approach includes:
- Environmental metrics: GHG emissions (Scope 1, 2 and 3, in CO2 equivalents), energy consumption by source, water consumption and waste generation — measured using internal tools, the Tennaxia platform, and aligned with the Greenhouse Gas Protocol and ISO 14001 environmental management standards. Uncertainty levels have been identified for each indicator to ensure transparency in how results are interpreted.
- Social metrics: Indicators such as diversity and inclusion, occupational health and safety, employee engagement and community involvement — collected via internal surveys, HR systems and governance audits.
- Governance metrics: Board composition, ethical practices, compliance and oversight structures — assessed through internal policy reviews and governance audits.
Where applicable, the report specifies assump-tions (e.g. use of proxies or industry averages) and limitations (e.g. data availability or mea-surement challenges).
ALIGNMENT WITH CSRD AND REGULATORY FRAMEWORKS
SSE Group is progressively aligning its ESG disclosures with applicable sustainability re-porting frameworks. As a company of its size, SSE Group falls within the scope of the Volun-tary Sustainability Reporting Standard for SMEs (VSME), developed by EFRAG as a proportio-nate framework for smaller companies not di-rectly subject to the full CSRD requirements. While SSE is not legally required to apply the full CSRD/ESRS framework, the Group voluntarily draws on its principles as a reference to stren-gthen the quality, structure and credibility of its reporting.
This alignment is evolving and focuses on buil-ding the internal capabilities and processes needed to anticipate future regulatory expec-tations.
In anticipation of these requirements, this re-port begins to reflect key principles of the direc-tive, including:
- Double Materiality: SSE Group completed its first Double Materiality Assessment (DMA) at Group level in 2025, integrating internal and external stakeholders to identify the sustaina-bility topics that are most impactful to people and the planet, and most financially material to our business. The results will inform future disclosures and strengthen the connection between sustainability initiatives and long-term value creation.
- Progressive incorporation of ESRS/VSME Requirements: SSE is actively working toward the gradual adoption of relevant reporting standards, using both ESRS and the VSME standards as guidance. This process will shape the structure and content of future ESG reports as regulatory obligations evolve and internal readiness is strengthened.
- • ISO 14001 & ISO 45001 Certification 82% of SSE Group companies are certified to both ISO 14001 (environmental management) and ISO 45001 (occupational health and safety), demonstrating the Group’s commitment to systematic and structured management practices.
CONNECTING PERFORMANCE AND PURPOSE: PREPARING FOR ESG-LINKED FINANCIAL DISCLOSURE
This report reflects SSE Group’s ongoing jour-ney to align sustainability with business perfor-mance. While financial and ESG information are currently presented separately, we are actively laying the groundwork for more connected and transparent reporting in the near future.
A key step in this process is the completion of our Double Materiality Assessment, which identified the sustainability topics most mate-rial to SSE’s strategy, risks and stakeholders. In parallel, the deployment of the Tennaxia platform enables carbon footprint monitoring and scenario-based decarbonisation pathways, supporting forward-looking operational and in-vestment decisions.
On GHG emissions: The 2024 carbon footprint has been established as SSE’s baseline year. A decarbonisation strategy is currently under de-velopment. Updated GHG data will be reported upon strategic target validation.
Although this year’s report does not yet quan-tify the financial outcomes of our ESG actions, it clearly outlines the strategic path we are taking. Supported by the DMA and the imple-mentation of the RESONANCE roadmap, future disclosures will progressively demonstrate how sustainability, performance and value creation are truly interlinked.
DOUBLE MATERIALITY ASSESSMENT: FROM FOUNDATION TO RESULTS DMA METHODOLOGY
In 2025, SSE Group completed its first Double Materiality Assessment (DMA) at Group level. This key initiative was designed to identify and prioritise the environmental, social and governance (ESG) topics most relevant to our business — both from an impact and a financial materiality perspective.
Rather than outsourcing the process, we chose a pragmatic, resource-efficient and internally driven approach, tailored to the specificities of SSE. The assessment was coordinated by a dedicated internal project manager, with support from the ESG function and expert guidance to ensure alignment with CSRD/VSME requirements.
Our DMA process included:
- Mapping our full value chain and descri-bing key activities
- Screening and prioritising sustainability matters aligned with the 69 topics defined under the ESRS
- Engaging internal and external stakehol-ders through workshops, interviews and surveys — capturing diverse perspectives including employees, clients, suppliers and community representatives
- Assessing both actual and potential im-pacts, as well as financial risks and opportunities
- Developing a clear and auditable documen-tation trail to support transparency and en-able future iterations
Results and outcomes: The DMA has been fi-nalised and its results are reflected in this re-port. The consolidated Double Materiality Ma-trix identifies SSE’s most material ESG topics and informs the structure of our reporting, our strategic priorities and our risk manage-ment approach. The results will be progres-sively integrated into future ESG disclosures, strengthening alignment between sustainabi-lity and long-term value creation.
A detailed internal DMA report, including the full Double Materiality Matrix, stakeholder en-gagement documentation and impact assess-ment methodology, has been produced and is available upon request.
CARBON FOOTPRINT AND DECARBONISATION TRAJECTORIES: OUR APPROACH WITH TENNAXIA
Methodology
SSE Group conducted its first comprehen-sive carbon footprint assessment in 2025, covering Scope 1, 2 and 3 emissions based on 2024 operational data. This assessment establishes SSE’s baseline year for GHG emissions reporting.
The carbon footprint was calculated using the Tennaxia platform, a recognised ESG data management tool that enables:
- Structured data collection across all SSE entities and geographies
- Carbon emissions calculation aligned with the Greenhouse Gas Protocol
- Uncertainty level identification for each emissions source
- Scenario-based decarbonisation pathway modelling
Scope of the assessment:
- Scope 1: Direct emissions from owned and controlled sources (fuel combustion, fleet, industrial processes)
- Scope 2: Indirect emissions from pur-chased electricity and heat
- Scope 3: Value chain emissions including upstream and downstream activities
A detailed internal carbon footprint report, including emissions calculations, data sources, uncertainty levels and assumptions by scope and entity, has been produced and is available upon request.
Decarbonisation trajectory
In 2025, SSE initiated the development of its decarbonisation strategy, structured around two complementary time horizons:
- Strategic scenarios: 16 decarbonisation sce-narios were developed across key transfor-mation levers, providing a first assessment of emission reduction potential, operational feasibility and financial implications. These are currently under expert review to support future Board-level decisions.
- Immediate actions: A Decarbonisation Guidebook was launched, enabling the im-plementation of practical emission reduc-tion measures at site level, initially piloted in Romania and the Czech Republic, with pro-gressive rollout planned across all markets in 2026.
Updated GHG data will be reported in the next ESG report, following strategic target valida-tion and the formalisation of SSE’s decarboni-sation pathway.
