i) The hereby annual separate and consolidated financial statements of the Company TERNA ENERGY S.A. of the annual period from January 1 st , 2023, to December 31 st , 2023, that has been prepared according to the applicable international accounting standards, reflect truly and fairly assets and liabilities, equity, and the financial results of the Company as well as the companies that has been included in the consolidation in aggregate, and

ii) The attached BoD Report provides a true and fair view of the Company’s evolution, performance, and position, as well as of the companies included in the consolidation in aggregate, including the description of the main risks and uncertainties to which they are exposed is also encompassed in the Report.

Athens , 29/04/2024

The Certifiers

Chairman of the BoD

Chief Executive Officer

Member of the BoD

George Peristeris

Emmanouil Maragoudakis

George Spirou

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

4

ANNUAL MANAGEMENT REPORT OF THE BOARD OF DIRECTORS OF “TERNA ENERGY SOCIETE ANONYME INDUSTRIAL COMMERCIAL AND TECHNICAL COMPANY” ON CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR FINANCIAL YEAR 2023

Dear Shareholders,

According to the provisions of Law 4548/2018 as well as Law 3556/2007 Article 4 par. 2(c), 6,7 & 8 and the decisions issued by the Hellenic Capital Market Commission under No. 8/754/14.4.2016 Article 2 and the Company’s Articles of Association, we are hereby presenting the annual management report of the Board of Directors for the financial year from 01/01/2023 to 31/12/2023.

This report includes the financial and non-financial report of TERNA ENERGY Group for the financial year 2023 and describes the most significant events that occurred before and after the reporting date of the financial statements. Furthermore, it provides a description of the main risks and uncertainties that the Group may face in 2024 and lists the significant transactions entered between the Company and its related parties.

A) Financial Highlights and Performance for the financial year 2023

Despite the ongoing geopolitical uncertainties, high inflation and the subsequent tight monetary policy, the Greek economy maintained in 2023 a significant part of the growth momentum of the previous year but at a slower pace compared to the post-pandemic period of the previous year. As a result, according to ELSTAT, GDP in 2023 strengthened by 2.0% year-on-year (compared to 5.9% in 2022), well above the European average (estimated growth of 0.6%). It is worth noting that the growth rate exceeds the initial estimates for 2023, which set the bar at 1.7%, indicative of the resilience and dynamism of the economy. At the component level, GDP growth is supported by consumption (contributing around 70% of GDP), which strengthened by 1.8% due to the increase in disposable income following wage/pension increases and the decline in unemployment. Still investment made a significant contribution to growth in 2023, with its growth (Gross Fixed Capital Formation) amounting to 4.0%. Finally, the growth rate of exports (+3.7%) exceeded that of imports (+2.1%) supported by the strong performance of tourism and leading to an improvement in the trade balance.

At the inflation forefront, the downward trend that started at the end of 2022 continued mainly as a consequence of the decline in international energy prices. Thus, annual inflation for 2023 stood at 3.5% based on ELSTAT data, compared with 9.6% for 2022.

In the budgetary sector, the country is expected to achieve a primary surplus of 1.1% of GDP in 2023 (compared to 0.1% in 2022 and initial estimates of 0.7% for 2023) following the robust GDP dynamics that led to both revenue growth and a reduction in expenditures related to supporting households and businesses during the 2022 energy crisis. For 2024, the target is for a primary surplus of 2.1% of GDP.

An important achievement for the Greek economy was the upgrade of the country's credit rating in 2023, which returned to investment grade after 13 years in the second half of the year since Scope (BBB), DBRS (BBB low), S&P (BBB-) and Fitch (BBB-) upgraded the Greek government's credit rating to investment grade. Consequently, Greek government bond yields as well as the spread against other government bonds have decreased (indicatively, the spread against the German bond decreased during 2023 by 84bps to 119bps).

For years to come, however, the Greek economy is expected to maintain a growth rate higher than the European average, with the latest estimates from the Bank of Greece targeting GDP growth for 2024 of 2.3% (2.9% based on the government) and 2.5% for 2025 (vs. 0.8%-1.5% for the Eurozone respectively according to the ECB). The

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

5

main drivers of the economy in the coming years will continue to be private consumption, investments, and exports, while the net contribution of the external sector will be marginally negative. The monetary policy is expected to continue to have a contractionary effect on economic activity, while investments will contribute positively to growth thanks to the resources of the Recovery and Resilience Mechanism.

Trends in the Energy Market in Greece during the year 2023

From the beginning of the year and the partial easing of geopolitical pressures, the energy market has entered a phase of normalization, with many parameters remaining volatile, however, affecting visibility in the medium term. This combined with lower demand, as a result of high prices, but also milder temperatures prevailing during the winter period, led to a continued deceleration in energy prices observed during the end of 2022 and a further decline during 2023. Indicatively, gas prices (TTF) fell from 2022 levels (average 133.7 EUR/MWh) to 44.3 EUR/MWh for 2023. In a similar pattern, the electricity price on the wholesale market showed an average price of 132.2 EUR/MWh for the year compared to 306.6 EUR/MWh for 2022.

Electricity demand in 2023 recorded a 2.3% year-on-year decline, influenced mainly by the unseasonably high temperatures that prevailed in the first months of the year (and compared to particularly low temperatures for the corresponding months of 2022) and by the measures to limit consumption by households and businesses. It is notable that in the second half of the year demand increased by 4.0%.

The reduced demand, combined with increased production from RES, led to a drop in production from thermal stations in the interconnected system (19.2% decrease in lignite production, 18.5% decrease in gas production), while hydroelectric production, marginally increased by 1.1%. Renewable Energy production increased by 8.8% in line with the increase in installed capacity, while net imports also increased, covering 9.9% of total demand (compared to 6.8% for 2022). Overall, renewables covered 43.2% of demand (historical high) compared to 38.8% for the same period in 2022. It is worth noting that including generation from large hydropower plants, total green energy production in the country met 51.3% of demand in 2023 (vs. 46.7% for 2022).

In the renewable energy sector and more especially in wind power, the installed capacity of the market at the end of 2023 amounted to 5,226 MW showing an increase of 542.8 MW (+11.6%) compared to the end of 2022. The acceleration of growth is attributed to the gradual completion of large wind investments such as the Kafirea wind farm (327MW) by TERNA Energy. In terms of market shares, according to ELETAEN data, for 2023 in Greece, TERNA Energy held 19.7% of installed wind capacity, with the second and third producers holding 14.6% and 7.8% respectively.

According to the same source, at the end of 2023, over 850 MW of new wind farms were under construction or contracted in the Greek territory, of which over 300 MW are expected to be connected to the grid within the next 12 months. To these are added a further 400 MW that have been selected in tenders or have submitted performance guarantees but do not belong to any of the above categories. Thus, total wind capacity is expected to approach 6.5 GW within the next three years.

Regarding photovoltaics, according to the latest data for the whole country (HELAPCO-FEB 2024), 2023 was a record year with 1,574 MW of new photovoltaics added to the system compared to the end of 2022 (compared to 1,397 MW added for 2022), bringing the interconnected capacity to around 7,087 MW at the end of 2023. It is worth noting, however, that only 40.2% of new installations involved projects above 1.0 MW. According to market estimates, a similar number of new PV plants are expected to be interconnected in 2023 through 2024.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

6

TERNA ENERGY GROUP

Throughout 2023, TERNA ENERGY Group continued the implementation of its investment plan with the construction of mature projects and the strengthening of its portfolio with the further maturation of projects from the existing portfolio and the addition of new projects in various stages. As part of this plan, the grid connection of the wind farm cluster at Kafirea with a total capacity of 327 MW was completed during the year, with the project now fully operational at the date of publication of the financial statements.

Moreover, for the long-duration storage project with pumped storage technology in the area of Amphilochia (680 MW), which had already started by the end of 2022, construction works are ongoing and expected to be completed within approximately three years.

As of 31/12/2023, TERNA ENERGY Group owns almost 2.500 MW of RES power plants, in operation, under construction or ready for construction in Greece, Central and Eastern Europe. Including projects in various stages of maturity, the Group's portfolio is approaching 12 GW.

Specifically, the Group's total installed capacity in Greece and abroad amounts to 1.223,8 MW.

Particularly:

a) In the energy sector the installed capacity settled as follows:

TOTAL

GREECE

POLAND

BULGARIA

WIND PARKS

1.193,4

1.061,4

102

30

HYDROELECTRIC

17,8

PHOTOVOLTAIC

8,5

BIOMASS

4,1

TOTAL

1.223,8

1.091,8

102

30

b) In the Sector of Waste Management, the Group with the company "AEIFORIKI EPIRIOUS SPSA" operates the Waste Treatment Plant of Epirus Region by implementing the Public Private Sector Partnership (PPP) project "Integrated Waste Management of Epirus Region" and with the company “Perivallontiki of Peloponnese S.A.” implements in the Peloponnese Region Public Private Sector Partnership (PPP) project "Integrated Waste Management of the Peloponnese Region" where in 2023 started its commercial operation the Integrated Waste Management Unit of Arcadia , the Waste Transfer Stations of Argolida and Corinthia and the Transitional Management Units of Messinia and Laconia, while the construction of the MSW Management Units of Messinia and Laconia is in progress, and expected to be completed within 2024. The high added value projects are implemented with the objective of providing modern waste management services, aiming at environmental protection, ensuring public health, and providing multiple benefits to local communities as development cells of a circular economy.

c) Construction segment refers mainly to the construction of new RES production units, the installation of waste management units and other facilities that the Group has undertaken based on PPP contracts public-private partnership agreements.

In 2023 the Group consolidated sales from continuing operations amounts to € 327,8 million compared to € 298,0 mill. in 2022, with an increase of 10,0%. The increase in revenues was mainly contributed by the energy sector due to increased production, as a consequence of the commissioning of the wind farm complex in the

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

7

area of Kafireas in the region of Evia. At the same time, the construction and concessions sectors also increased as a result of the commissioning of the new waste management units of the Peloponnese Region. The Group's operating earnings before interest, taxes, depreciation, and amortization (EBITDA) from continuing operations amounted to € 177,8 million compared to € 115,9 million in the previous year, increased by 53,4%, as a result of the recorded expense of the plan from the free distribution of shares, amounting to € 0,6 million, as defined in IFRS 2 compared to €48.8 million of plan costs recognized in FY 2022.

Excluding the cost of the free share distribution plan, the Group's operating earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations for the year 2023 amount to € 178,4 million, with the respective amount of the previous year was € 164,7million, increased by 8.3% as a consequence of the commissioning of the Group's new wind farm cluster in the Kafireas area.

Profit before tax from continuing operations to € 81,1 million, increased by 109,8% compared to € 38,7 million in 2022 due to the recorded expense of the plan from the free allocation of shares as defined in IFRS2 which in the year 2022 amounted to € 48.8 million.

Net operating profit from continuing operations attributed to the shareholders of the parent company amounted to € 59,7 million, increased by 201,2% compared to the previous year ( 2022: € 19,8 million). The Increase in net profit for the year from continuing operations attributable to owners of the parent company is due to the cost of the valuation of the free share plan recognised under IFRS 2, under which the expense charged to the results in 2022 amounted to € 48.8 million, compared to a charge of € 0.6 million in 2023.

Net profit from continuing and discontinued operations excluding the plan's expense from the free share allocation and results from financial instruments at fair value amounted to € 64,6million.

Total comprehensive income (from continuing and discontinued operations) amounted to € 62,1 million compared to a profit of € 56,9 million in the same period of the last year. For the year 2023, the total profit attributable to Owners of the Parent amounted to € 58,7 million, while the profit attributable to Non-Controlling Interests amounted to € 2,4 million.

Regarding the results from continuing operations of the individual sectors:

• The energy sector realized sales of € 249,9 million, with an increase of 5,8% compared to 2022. This increase is attributable mostly to the commissioning of the new Wind Farms in the area of Kafireas in Evia. The limited increase in sales was significantly impacted by the reduced wind power recorded during the first half of 2023. Operating profitability (EBITDA) amounted to € 169,7 million, increased by 51,3% compared to the same period of 2022, due to the charge for the expense in the financial year 2022 with the free share distribution plan expense. Excluding the related expense of the free share distribution plan, operating profitability (EBITDA) reached € 170,3 million. It is to be noted that the Group in the energy sector recorded research and development expenses of € (6.254) thousand which are related with the development and licensing of new renewable energy generation plants (see Note 35)

• The turnover of the construction activity of TERNA ENERGY amounted to € 92,3million, decreased by 53,6% compared to FY 2022, mainly due to the construction of new Wind Farms complex in Kafirea Evoias area. Out of total turnover, an amount of EUR 44,2 million related to customers outside the Group. The operating profit before depreciation and amortization (EBITDA) of the construction segment amounted to € 2,4 million compared to a profit of € 14,5 million in the 2022 financial year. More specifically, the the outstanding

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

8

balance of construction works (backlog) of construction work amounted to € 32,7million at the end of 2023, of which € 20,2 million relates to concession projects. Research and development expenses in the construction segment totaled € (1.030) thousand, mainly related to costs incurred by the Company in participating in tender procedures for the award of construction projects.

• Finally, revenues from the concessions segment amounted to € 31,4 million compared to € 21,6million in 2022, representing an increase of 45,6% mainly due to the commencement of operations of the Arcadia waste treatment plant. Operating profit (EBITDA) amounted to € 9,2 million, compared to € 3,3 million in 2022.

The Group's operating cash flow from continuing operations for the year amounted to € 134,2 million, compared to € 110,2 million in 2022. The increase is mainly attributable to the liquidation of the increased results realized in the year 2022 which is expected to be reversed during the 2024 financial year.

On 31/12/2023, TERNA ENERGY Group investments amounted to € 218,9 million. The Group’s on-going investing activities generate the conditions for stabilization of increased flows of revenue and profitability on a long-term basis.

The Group's financial position remains satisfactory, as cash and cash equivalents and restricted cash amounted to € 322,5 million, while the loan liabilities amounted to € 1.167,1 million. The net debt position (debt liabilities minus cash and cash equivalents minus restricted deposits related to debt liabilities) as of 31/12/2022 stands at € 844,6 million compared to € 669,3 million in the previous financial year.

B. Significant events in the year 2023

• Dividend distribution according to the resolutions of the Annual General Meeting of 14/06/2023

On 14/06/2023, the Annual General Meeting of the Shareholders of TERNA ENERGY S.A. convened, which approved the Management Board's proposal for the shareholders' distribution of earnings and reserves in the total amount of EUR 44.604.209,65, i.e., € 0,38 per share, according to article 162 par. 3 of Law 4548/2018. This amount has been increased by the dividend corresponding to the treasury shares that the Company holds.

• New investments in wind farms and photovoltaic power plants

On 10 February 2023, the Company proceeded with the acquisition of the total shares of the company ANAX PC, which was subsequently renamed into TERNA ENERGY SAPPON PC. The company is developing a 246.35 MW photovoltaic power plant in the region of Rodopi Prefecture.

• Establishment of a new company in the concessions sector

On 17 May 2023, the Group's parent company, TERNA ENERGY S.A. founded, in cooperation with the GRID TELECOM S.A. a company under the name of TERNA FIBER SPECIAL PURPOSE S.A. This company is a Company Vehicle for the implementation of the Partnership Agreement that will be signed between the Greek State through the Ministry of Digital Governance (hereinafter referred to as "the Contracting Authority"), the Company and the founders - original shareholders of the Company as third party contractors, for the execution of the project "Ultra Ultra High Broadband Infrastructure - ULTRA FAST BROADBAND through PPP" for Geographical Zones 2, 4, 5 and 6, as indicated in the Call for Expression of Interest and the Call for Tenders Document.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

9

• Company's Share Distribution Plan

Within the framework of the Share Distribution Plan, the Management of "TERNA ENERGY S.A." informed the Investors that for the implementation of the Share Distribution Plan approved by the decision of the Extraordinary General Meeting of the Company's shareholders on December 16, 2020, and following their contribution to the achievement of the financial objectives, the implementation of new projects and the increase of the Company's profitability, it has distributed to twenty-six (26) Directors a total of 2. 250,000 new shares, which resulted from increases in its share capital with capitalization of share premium reserves and represent 1.9% of the paid-up share capital. The shares were distributed through an off-market transaction on 22/6/2023.

It is noted that given that the new shares are of the same class as the Company's shares already traded on the Main Market of the Athens Stock Exchange and represent, over a period of twelve months, approximately 1.9% of the Company's already listed shares, i.e. less than 20% of the number of shares of the same class already listed for trading on the Stock Exchange. A. without any other listing beyond that in the last twelve months, there is no obligation to publish a prospectus for the listing of the new shares for trading on the Stock Exchange, in application of the exception in paragraph (a) of subparagraph (a). 5 of Article 1 of Regulation (EU) 2017/1129. Accordingly, the Company's share capital currently amounts to €35,431,527.00 divided into 118,105,090 common voting registered shares with a nominal value of €0.30 each.

• Completion of the installation of all the wind turbines of the Wind Farm in Kafireas Evvoia’s area

The installation of all the wind turbines of the Group's Wind Farm Complex in Karystos & Kafirea Evvoia’s area with a total capacity of 327 MW has been completed. This project is the largest project of Terna Energy Group in the field of renewable energy and Wind Energy in particular.

• Start of operation of the Transitional Waste Management Station of the 2nd DE (Messinia) of the Peloponnese Region.

On 30/06/2023 the Independent Auditor issued the Acceptance Certificate of the Transitional Waste Management Station 2nd DE (Messinia) following the successful completion of the trial period of the above- mentioned Station, whereby on the above-mentioned date the Planned Date of Availability of the Transitional Waste Management Services of the Transitional Waste Management Station 2nd DE (Messinia) was reached. The successful completion of the trial period and the issuance of the aforementioned Acceptance Certificate marks the start, as of 1 July 2023, of the Transitional Management Services Period of the Transitional Waste Management Station 2nd DE (Messinia) for the acceptance and treatment of municipal solid waste in accordance with the terms of the Partnership Agreement.

• Change in the useful life assessment of wind farms.

During the last quarter of the year 2023 and considering the fact that some of the Group's Wind Farms are entering the 25th year of their useful life, the Group's Management reviewed the condition of all Wind Farms with the assistance of independent experts as well as the Operations and Finance Departments. The conclusion of this examination, both in terms of operational and economic feasibility, was that the useful life of the Group's Wind Farms, based on the results obtained, can be safely extended to 30 years instead of the 25 years previously applied as an estimation.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

10

Based on the aforementioned, the Group's Board of Directors accepted the common recommendation of the Operations and Finance Departments to extend the useful life of the parks to 30 years, accepting that this estimate reflects better the current reality both at the Group level and globally.

The pre-tax impact of this change on the results reflected in the Group's financial statements, from this change for the financial year 2023, in thousands of Euros, is as follow:

Amortization of intangible fixed assets

92

Depreciation of tangible fixed assets

2.642

Amortization of grants

(382)

Effect on financial cost of provisioning for environmental rehabilitation

41

Total effect of change in useful life of fixed assets (increase in profit)

2.393

C. Events after the end of fiscal year 2023

From 01/01/2024 and until the preparation date of the present report, the following important events occurred:

• Conclusion of a 12-year bilateral contract with EYATH

TERNA ENERGY Group signed the first ever PPA agreement in Greece, with a duration of 8 years with the option of extension of 4 more years, according to which the Group will supply EYATH with 100% green energy with a capacity of 100 GWh/year. With this transaction, TERNA ENERGY S.A. will ensure a constant selling price for its electricity production, while EYATH will reduce its energy costs by up to 50%, the increase of which in 2022 burdened its financial results, causing the long-time profitable company to make losses for the first time in 25 years. At the same time, EYATH will reduce its carbon footprint to zero by 2025 instead of the target of 2030.

• Inclusion of Terna Energy in the Final List of Selected Participants for S.A.E.E. (Electricity Storage Stations) of RAAEY

With the decision of 15 February 2024 of RAAEY, TERNA ENERGY ABETE was selected as one of the shortlisted bidders of the second (b) Competitive Bidding Procedure for the granting of investment and operational support to Electricity Storage Stations in accordance with the provisions of article 143F of Law No. 4001/2011, of a capacity of 40 MW and a capacity of 80 MWh.

• Selection of three TERNA ENERGY Investment Plans in the list of the European Network of Transmission System Operators for Electricity (ENTSO-E)

The list of 209 electricity infrastructure projects of the Trans-European Ten-Year Development Plan (TYNDP) 2024 of the European Network of Transmission System Operators for Electricity (ENTSO-E) includes three energy storage investment projects of TERNA ENERGY Group:

The pumped-storage project of Terna Energy in Amfilochia. It is the largest investment in an energy storage project in Greece, with a total installed capacity of 680 MW (megawatts) for generation and 730 MW for pumping. It is an investment of more than EUR 500 million with an annual energy production of approximately 816.00 GWh (gigawatt-hours) and an operational horizon of 2026.

Pumped storage plant of PPC - TERNA Energy at Ladonas. This is a project with an installed capacity of 220 MW for generation and 231 MW for pumping. It is expected to be completed in 2032.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

11

TERNA Energy's pumped storage project "Vrohonera": It consists of two independent projects, "Vrohonera I" (total installed capacity of 424 MW for generation and 377 MW for pumping) and "Vrohonera II" (total installed capacity of 351 MW for generation and 344 MW for pumping).

These projects will play an important part in shaping Europe's electricity system up to 2040.

D. Prospectives

The performance in 2023 and particularly in the first half of the year has been affected by the weak wind conditions observed in the country and in the Northern Hemisphere in general, in contrast to the highly enhanced conditions observed in the first half of last year. This fact is consistent with the stochasticity that governs production from wind farms and is taken into account in any forecasting model, without affecting the long-term performance of the projects, which, it should be remembered, have a 30-year lifespan.

With respect to the immediate periods following, TERNA Energy Group expects a significant strengthening of revenues and operating profitability subsequent to the commissioning of the Kafirea wind cluster before the end of the third quarter of 2023. The commissioning marks an increase in installed capacity of approximately 35% and is expected to have a corresponding impact on operating profitability (on an annualized basis). It is also worth mentioning that the excreta management project in the Peloponnese is now in full commercial operation and together with the other concessions/ PPP projects (waste management in Epirus, Electronic Ticket) will further enhance the Group's performance in the long term.

In the medium term, the Group continues to pursue its investment plan without interruption, having now under construction the large pumped storage project in Amphilochia with a total investment of €650 million. The construction of new parks (mainly photovoltaic) in Greece is planned to start gradually from the end of this year and within 2024, while projects abroad continue to be considered on a case-by-case basis. Concurrently, the Group is advancing the procedures for the maturation of projects of various technologies (e.g. hydroelectric, storage, hybrid, etc.) in Greece that are expected to be able to gradually start construction from next year. Finally, emphasis is also given to new concessions/ PPP projects (waste management, digital transformation, etc.) that can further enhance the Group's revenues in the long term by generating synergies as well.

Considering the above and notwithstanding the continuous challenges and the always volatile conditions in the energy markets in Greece and abroad as the recent past has shown, Terna Energy Group is expected to continue to be a leading player. Recall the Group's long-term target to approach a portfolio of projects above 6.0 GW in operation before the end of the current decade.

E. Risks and uncertainties

The Group’s activities expose it to various financial risks such as market risk (including foreign exchange risk, interest rate risk and price volatility risk), credit risk and liquidity risk.

The Group, in order to mitigate financial risks and limit their negative impact on its financial results, monitors the fluctuations of variables affecting costs and sales and uses appropriate products, as appropriate.

The main risks and uncertainties related to the Group's operations are as follows:

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

12

i. Credit risk

The Group continuously reviews its receivables and incorporates the resulting information into its credit control.

The energy sector accounts receivable are all related to the wider public sector both domestically ( including ENEX, DAPEP, HEDNO, OASA, ASDA) and internationally, and the same applies to the concessions sector, as well as most of the construction sector receivables.

The Group has traditionally, due to the nature of its business, is not exposed to significant credit risk from trade receivables. In the past, there have been delays in collections from the DAPEEP, which have been significantly reduced with the implementation of Law 4254 /14 as well as the extraordinary levy imposed for the fiscal year 2020 to address the side effects of the coronavirus pandemic, on electricity producers from Renewable Energy Sources (RES) power plants, which have been put into normal or trial operation by 31 December 2015 (Government Gazette 245/09.12.2020). In other transactions with individuals, the Group operates with a view to limiting credit risk and securing its receivables.

The credit risk for cash and cash equivalents and other receivables is low, given that the counterparties are banks with a high-quality capital structure, the public sector or companies in the wider public sector or strong business groups.

Finally, the Group's management considers that all of the above financial assets which have arisen after making the necessary impairments are of high credit quality.

ii. Foreign exchange risk

The Group operates, besides Greece, also in Eastern Europe, therefore it is possible to be exposed to exchange rate risk that may arise from the exchange rate of euro to other currencies. This type of risk can only arise from commercial transactions in foreign currencies, from investments of financial assets in foreign currencies, as well as from net investments in foreign entities. In order to limit this risk, the Group utilises locally generated cash surpluses in local currency. During the operating phase, all related costs and revenues are incurred in local currency, eliminating any possibility of generating foreign exchange differences.

To mitigate this risk, the Group's financial management department systematically monitors exchange rate movements and ensures that they do not have a negative impact on cash resources.

Regarding the Company's transactions with foreign entities, these are generally with European Groups where the settlement currency is the euro and therefore no exchange rate risk arises.

iii. Interest rate risk

The Group’s policy is to minimize its exposure to cash flow interest rate risk with regards to its long-term financing.

As part of this policy, the long-term loans received by the Group either carry a fixed interest rate or are hedged for almost the entire duration of their term. Thus, 16,2%% of the Group's long-term borrowings refer to fixed rate loans 66,0%% refer to floating rate loans hedged through derivatives whereby future fixed rate payments are exchanged for floating rate receipts, and 17,8%% to floating rate loans based on euribor or wibor, as appropriate.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

13

The Group's short-term bank borrowings are all denominated in euros with a variable interest rate linked to the euribor. Short-term loans are obtained primarily as a bridge to cover temporary financing needs during the implementation - construction phase of the Group's investments (wind farms). These loans are repaid by taking out long-term loans upon completion of construction and commissioning of the wind farms. Consequently, the Group is exposed to interest rate risk arising from short-term borrowings and the portion of long-term borrowings that are at floating interest rates.

Sensitivity analysis of interest rate risk

The table, presented below, records sensitivity of earnings for the year versus the Group's short-term borrowing and deposits, at a change in the variable part of the interest rate of +20% - 20% ( 2022: +/- 20% correspondingly). Changes in interest rate are estimated to fluctuate on a reasonable basis in relation to the recent market conditions and till currently, they have been stable compared to the previous year.

2023

2022

Amounts in thousand €

20%

(20)%

20%

(20)%

Results for the year after tax – Group

(2.263)

2.263

(1.942)

1.942

Results for the year after tax – Company

(301)

301

(426)

426

The Group is not exposed to other interest rate risks.

iv. Market risk analysis

The Group is not exposed to market risk for its financial assets, with the exception of the portfolio of listed securities. The Group has not taken specific hedges of this risk given that any impact is not expected to be significant.

v. Liquidity risk analysis

The Group’s liquidity is considered satisfactory, as apart from the effective cash and cash equivalents, currently operating wind farms generate satisfactory cash flows on an on-going basis. In the year 2023 net cash flows from continuing operating activities amounted to € 134 million versus € 110 million in 2022. The Group manages its liquidity needs by applying cautious cash flow planning, by carefully monitoring the balance of long‐term financial liabilities as well as by systematically managing the payments which take place daily. The liquidity needs are monitored at different time zones, on a daily and weekly basis, as well as based on a moving 30‐day period. The liquidity needs for the next 6 months, and the next year are defined monthly.

The Company maintains cash and cash equivalents in banks, in order to cover its liquidity needs for periods up to 30 days. The capital for mid‐term liquidity needs is released from the Company’s term deposits.

vi. Other risks and uncertainties

The Group remains exposed to short‐term fluctuations of wind and hydrologic data, a fact, which does not affect the long‐term efficiency of its projects, as prior to the implementation of the investments extensive studies take place with regards to the long‐term behavior of such factors.

The construction sector of TERNA ENERGY is subject to significant fluctuations, both with regards to turnover and with regards to the profitability of each construction project, because the construction activity, particularly of specialized companies such as TERNA ENERGY, entails increased volatility that is mainly related to the ongoing renewal of the backlog of construction agreements towards third parties, which are mainly public entities.

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(a) Special note to the war conflict in the region of Ukraine

The effects of this military conflict in Ukraine, which had a significant impact on the electricity market where the Group operates, seem to have stabilised. However, the risk is significant as long as there is no overall resolution of the conflict. In any case, considering the nature of the transactions carried out by the Group's companies, there was no direct impact on the Group's size and performance, and none is expected in the future. Other risks such as the fluctuation of expected government revenues in the tourism sector, energy and grain price inflation and uncertainty in the development of foreign direct investment continue to be variables that may affect fiscal flexibility and the broader economic climate with unavoidable indirect consequences for the Group.

(b) Climate Change Risk and Fluctuations in wind and hydrological data

The Group's core business is closely linked to climatic conditions and in this context, management closely monitors developments and assesses the potential impact that climate change may have on the smooth operation of the facilities. From now on, calculation models incorporated also new factors allowing for the occurrence of potential events of force majeure, such as the current epidemic, in order to examine in greater depth, the viability of any projected investment.

Regarding its activity in the energy sector, the Group remains exposed to the short-term fluctuations of wind and hydrological data, without affecting the long-term profitability of its projects, if the implementation of its investments is preceded by extensive studies involving long-term studies of the above factors.

F. Alternative Performance Measurement Indicators (“APMI”)

In the context of applying the Guidelines “Alternative Performance Measures” of the European Securities and Markets Authority (ESMA/2015/1415el) which are applied from 3rd of July 2016 in the Alternative Performance Measures Indicators (APMI).

The Group utilizes Alternative Performance Measurement Indicators ("APMI") in its financial, operational and strategic planning decisions, as well as in evaluating and publishing its performance. These APMI serves to better understanding the Group’s financial and operating results as well as its financial position.

Alternative indicators should always be considered in conjunction with the financial results prepared in accordance with IFRSs and in no case should they replace them. The following indicators are used when describing the Group's performance by sector:

EBIΤ (Earnings before Interest and Taxes): It is a ratio by which the Company's Management assesses its operating performance. It is defined as: Turnover, - Cost of sales, - Administrative & distribution expenses, - Research & development expenses, +/- Other Income / (Expenses) and other Gains / (Losses) determinants of ΕΒΙΤ. The other Income / (Expenses) determinants are defined as Other Income (Expenses), not including foreign exchange valuation differences, Impairment / (Recovery of impairment) of assets as presented in Note 36.

EBITDA (Earnings before Interest Taxes Depreciation and Amortization): The ratio is calculated as Earnings before Interest & Tax (EBIT) adding the total depreciation of tangible, intangible assets and rights of use deducting grants depreciations. The greater the indicator is, the more efficient the operation of the Company becomes. The EBITDA is defined as EBIT adding assets depreciation, less grants depreciation.

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“Net debt / (Surplus)” is a ratio by which the Company’s Management assesses each time the respective cash position. The ratio is defined as total long-term loan liabilities, short-term loan liabilities, long-term liabilities carried forward, less cash and cash equivalents less restricted deposits related to bank debt.

“ Gross Profit Margin” is a ratio by which the Company’s Management assesses the return level and is defined as Gross Profit to Turnover.

"Loan Liabilities to Total Capital in Use" is an indicator that the Management assesses the Group's financial leverage. Loan Liabilities are the total of Short-term Loans, Long-term Loans and Long-term Loans payable the following year. Total Capital Employed is defined as the total of equity, loan liabilities, lease liabilities, grants are reduced by the amount of cash available that is not subject to any restriction or commitment, beyond the commitments associated with the borrowing.

The following tables configures the ratios “EBIT”, “EBITDA”, “Net debt / (Surplus)”, “Gross Profit Margin” and "Loan Liabilities to Total Capital Employed":

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Operating segments

Construction

Electricity from RES

Waste management

E-Ticket

Intersegment consolidation eliminations

Consolidated total

31st December 2023

Revenue

Sales of products and services

46.461

249.942

18.112

13.316

−

327.831

Intersegment revenue

45.813

−

(45.813)

−

Total revenue from continuing operations

92.274

249.942

18.112

13.316

(45.813)

327.831

Cost of sales

(87.251)

(102.538)

(12.674)

(11.113)

44.789

(168.787)

Gross profit from continuing operations

5.023

147.404

5.438

2.203

(1.024)

159.044

Administrative and distribution expenses

(634)

(32.137)

(583)

(536)

−

(33.890)

Research and development expenses

(1.030)

(6.254)

−

(7.284)

Other income/(expenses) and other gain/(losses)-ΕΒΙΤ determinants

(1.467)

10.911

1.351

1.037

−

11.832

Operating results (EBIT) from continuing operations

1.892

119.924

6.206

2.704

(1.024)

129.702

Depreciation

(539)

(54.756)

(280)

(22)

2.539

(53.058)

Grants' amortisation

−

4.971

−

4.971

EBITDA from continuing operations

2.431

169.709

6.486

2.726

(3.563)

177.789

Long‐term loans

−

987.387

58.474

8.403

−

1.054.264

Long‐term liabilities carried forward

−

93.219

16.077

3.552

−

112.848

Cash and cash equivalents

(2)

(224.639)

(15.159)

(8.227)

−

(248.027)

Restricted cash

−

(68.663)

(5.366)

(425)

−

(74.454)

Net debt/(surplus)

(2)

787.304

54.026

3.303

844.631

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(Amounts in thousands of Euros unless mentioned otherwise)

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Operating segments

Construction

Electricity from RES

Waste management

E-Ticket

Intersegment consolidation eliminations

Consolidated total

31st December 2022

Revenue

Sales of products and services

40.278

236.176

8.976

12.615

−

298.045

Intersegment revenue

158.654

−

(158.654)

−

Total revenue from continuing operations

198.932

236.176

8.976

12.615

(158.654)

298.045

Cost of sales

(184.184)

(93.811)

(7.074)

(10.610)

142.950

(152.729)

Gross profit from continuing operations

14.748

142.365

1.902

2.005

(15.704)

145.316

Administrative and distribution expenses

(684)

(76.253)

(394)

(501)

(29)

(77.861)

Research and development expenses

(385)

(6.982)

−

(7.367)

Other income/(expenses) and other gain/(losses)-ΕΒΙΤ determinants

530

12.508

152

9

(10)

13.189

Operating results (EBIT) from continuing operations

14.209

71.638

1.660

1.513

(15.743)

73.277

Depreciation

(281)

(45.927)

(140)

(15)

(1.596)

(47.959)

Grants' amortisation

−

5.367

−

5.367

EBITDA from continuing operations

14.490

112.198

1.800

1.528

(14.147)

115.869

Long‐term loans

−

865.793

73.633

11.900

−

951.326

Short‐term loans

−

60.632

−

60.632

Long‐term liabilities carried forward

−

104.381

3.184

3.536

−

111.101

Cash and cash equivalents

−

(362.464)

(21.765)

(7.667)

−

(391.896)

Grants to be rebated

−

3.260

−

3.260

Restricted cash

−

(63.379)

(1.320)

(399)

−

(65.098)

Net debt/(surplus)

−

608.223

53.732

7.370

−

669.325

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(Amounts in thousands of Euros unless mentioned otherwise)

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Operating segments

Construction

Electricity from RES

Waste management

E-Ticket

Intersegment consolidation eliminations

Consolidated total

31st December 2023

Revenue from continuing operations

92.274

249.942

18.112

13.316

(45.813)

327.831

Cost of sales from continuing operations

(87.251)

(102.538)

(12.674)

(11.113)

44.789

(168.787)

Gross profit from continuing operations

5.023

147.404

5.438

2.203

(1.024)

159.044

Gross profit margin from continuing operations

5,44%

58,98%

30,02%

16,54%

2,24%

48,51%

Operating segments

Construction

Electricity from RES

Waste management

E-Ticket

Intersegment consolidation eliminations

Consolidated total

31st December 2022

Revenue from continuing operations

198.933

236.176

8.976

12.615

(158.654)

298.046

Cost of sales from continuing operations

(184.184)

(93.811)

(7.074)

(10.610)

142.950

(152.729)

Gross profit from continuing operations

14.749

142.365

1.902

2.005

(15.704)

145.317

Gross profit margin from continuing operations

7,41%

60,28%

21,19%

15,89%

9,90%

48,76%

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The ratio “Loan Liabilities to Total Capital Employed” at the end of 2023 and 2022 is as follows:

Amounts in thousand €

31/12/2023

31/12/202 2

Short‐term loans

−

60.632

Long‐term loans

1.054.264

951.326

Long‐term liabilities carried forward

112.848

111.101

Loan liabilities

1.167.112

1.123.059

Total equity

506.206

491.176

Loan liabilities

1.167.112

1.123.059

Lease liabilities (Long-term and Short-term portion)

30.826

27.026

Grants

162.812

167.146

Subtotal

1.866.956

1.808.407

Less:

Cash and cash equivalents

248.027

391.896

Restricted cash related with loans (Note 21)

74.455

65.098

Grants to be rebated (Note 29)

−

(3.260)

Subtotal

322.482

453.734

Total employed capital

1.544.474

1.354.673

Loan Liabilities / Total employed capital

76%

83%

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G. Annual Non-Financial Statement 2023

1. Introduction

This Non-Financial statement covers the fiscal year ended on December 31st, 2023. Having considered the provisions of section 7 "Report (Statement) of Non-Financial Information" of Law 62784/2017 of the Ministry of Economy and Development, in accordance with the provisions of Law 4548/2018 (articles 151 & 154), the report contains information on all the activities of TERNA ENERGY Group for the following topics:

• Supply chain issues.

• Anti-corruption and anti-bribery

• Respect for human rights.

• Labor issues

• Social issues

• Environmental issues

The statement presents relevant information on the required disclosures of Article 8 of the Taxonomy Regulation, as specified in Article 10 of the Delegated Regulation (EU) 2021/2178. The statement has been prepared considering the Global Reporting Initiative (GRI) international standards, the standards introduced by the Sustainability Accounting Standards Board (SASB) and the Athens Stock Exchange ESG Reporting Guide (ATHEX ESG Reporting Guide 2022). The statement presents information on the main risks related to the Group's activities, due diligence policies as well as other relevant policies applied. In addition, for a better understanding of the Group's performance, the qualitative and quantitative results of these policies are presented, and relevant financial and non-financial performance indicators are listed.

The structure of this report is as follows:

• The Group's approach to Sustainable Development

• Corporate Governance and the Group's Basic Operating Principles

• Environmental issues

• Sustainable Supply Chain

• Social and labor issues

• Taxonomy Report

TERNA ENERGY GROUP

For more than two decades, TERNA ENERGY Group has been one of the largest Greek vertically integrated Groups in the field of Renewable Energy Sources (RES), holding the largest and most diversified project portfolio in Greece, with activities related to the development, construction, financing and operation of RES projects and waste management. In addition, the Group is active in the field of design, installation, operation support, maintenance and technical management of a Unified Automatic Fare Collection System (e- ticket). TERNA ENERGY shares are listed on the Athens Stock Exchange (FTSE / Athex Large Cap). Moreover, in October 2023, the Group was included in the Standard & Poor's "Clean Energy Index", among the top 100 producers and/or suppliers of clean energy.

TERNA ENERGY Group is active in renewable energy projects, from development to energy production, in a range of technologies that include the construction and operation of wind farms, hydroelectric projects, pumped storage projects, hybrid power plants and photovoltaic parks, as well as the undertaking of integrated waste management projects, biofuel production, soil improvement products and other. In 2023 the Group operated in Greece, Bulgaria, Poland .

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As of 31.12.2023, the Group holds almost 2,500 MW of renewable energy power production units operating, under construction or ready for construction in Greece, Central and Eastern Europe. Including projects in various stages of maturity, the Group's portfolio exceeds 11 GW.

Overall Business Strategy

Τhe Group's business activity is characterized by sound financial structure, robust specialization and expertise, full implementation of quality assurance procedures, and in-depth knowledge of the international financial and business environment.

The Group's business model is based both on responsible planning and effective implementation of every project it undertakes. Moreover, through its successful and responsible business practices, the Group secures capital adequacy and necessary liquidity for each stage of project implementation, ensuring its business continuity and sustainable development .

Design and implementation of new projects.

TERNA ENERGY Group has designed and launched a €5.5 billion investment plan in clean energy, environment, and circular economy, while at the same time, it strengthens its presence in pioneering projects and the development of projects of various technologies (e.g. hydroelectric, storage, hybrid, etc.) in Greece that are in different maturity levels and are expected to gradually commence construction in the near future.

At the same time, the Group recently commissioned the country’s largest wind farm cluster with a total capacity of 330 MW in South Evia, is intensively progressing construction work on the 680MW pumped- storage project in Amfilochia and has secured one of the first two exploration permits for pilot Offshore Wind Farms in Greece. Meanwhile, the waste management project in Peloponnese is now in full commercial operation.

2. The Group’s approach to Sustainable Development

Metric ATHEX C-G4: Sustainability Policy

The alignment of the Group with the principles of Sustainable Development constitutes a driving force for its business operations. Therefore, the Group's Sustainable Development Policy places stakeholders at the center and emphasizes the systematic assessment of the material impacts of its activities on the economy, society, and the environment.

The Sustainable Development Policy aims to enhance the positive impact and mitigate the negative effects of the Group's activities through the implementation of a series of best practices, targeted initiatives, and sustainable collaborations. The goal is to create long-term value for both stakeholders and society as a whole.

The Group's business strategy incorporates the material topics and needs identified by its stakeholder groups, by implementing targeted actions for the environment and society, in line with the 17 Sustainable Development Goals of the United Nations (UN). As part of the Group’s Sustainable Development Policy, corporate responsibility will be aligned with the ESG (Environmental-Social-Governance) criteria / principles and will apply to four (4) activity axes:

▪ Environmental Protection

▪ Human Value Promotion

▪ Strengthening our Social Footprint

▪ Shaping a Responsible Market

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Based on the above, the Group’s sustainability goals and targets are defined, and their performance is assessed annually to ensure their relevance and adjust if necessary. Additionally, the Group prepares and implements management systems, policies, and procedures, uses Key Performance Indicators (KPIs) and metrics, and adopts efficient action plans/programs to monitor and achieve its sustainable development goals and targets.

To enhance transparency and facilitate regular stakeholder engagement, the Group's performance on ESG topics is published in the annual Sustainable Development Report and in the current Statement.

It should be noted that, emphasizing transparency, accountability and sustainable business practices, the Group will include the "double materiality" assessment in its 2024 Sustainability Report. The "double materiality" assessment implies an integrated consideration of the actual and/or potential impacts of corporate practices on the broader economy, society, and the environment, alongside with the financial materiality, which assesses the financial impact of the sustainability issues on the Group's business processes and strategies.

3. Corporate Governance and the Group's Basic Operating Principles

Metric ΑΤΗΕΧ C-G2: Sustainability Oversight

Corporate Governance is a set of established rules and business practices that the Group applies to ensure business continuity and thereby its ability to create long-term value for the benefit of its shareholders. Responsible corporate governance promoted throughout the company is reflected in the Corporate Governance Code established by the Management.

The Board of Directors (BoD) is the Group’s top management body. Ιts members are elected by the General Meeting of Shareholders and its main mission is the establishment of the Group’s core guidelines and the development of its business strategy. Additionally, the BoD is responsible for monitoring the procedures that ensure effective business operation, implementation of the Group’s core principles and the expression of the administrative philosophy of the Group. Moreover, the BoD carries out the decision-making for all corporate matters except those that fall under the competence of the General Assembly.

The BoD’ s target is to protect and promote Shareholders’ long-term interests, implementing terms and methods that establish the company’s credibility in the financial-business community and the wider social environment, while ensuring respect from and towards any stakeholder. To ensure effective performance of its duties and the establishment of a responsible business model, the BoD is supported by individual Committees which have an advisory role with significant weight in the decision-making process:

• Audit Committee

• Nominations Committee

• Remuneration Committee

• Strategic Planning Committee

• Investment Committee

• ESG Committee

For the smoother and more efficient operation of the Group, an Executive Committee has been established, which consists of six (6) executive members. The Executive Committee is responsible for the implementation of the strategic planning, which is determined by the Board of Directors. Moreover, the Executive Committee

TERNA ENERGY GROUP

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is responsible for the implementation of the BoD’s decisions and the implementation of the actions required for the management and operation of the Group .

Aiming to achieve better supervision of the Group’s Sustainable Development issues, the ESG committee meets at least 4 times a year or whenever required, discussing the Group's ESG performance and goals. The ESG Committee consists of four (4) members, three (3) of which are Independent Non-Executive Members of the Board of Directors of the Group.

3.1 Due Diligence and other policies

3.1.1 Code of Conduct

Metric ΑΤΗΕΧ A-G2: Business ethics violations

Metric ΑΤΗΕΧ C-G5: Business ethics policy

The Code of Ethics and Conduct incorporates the Group's core principles, beliefs, corporate culture, business ethics and voluntary ethical commitments, which shape the operating model across the Group's activities. The Code captures and reinforces these elements and creates an agreed and transparent framework of operation and behaviors that applies to all employees, customers, partners, subcontractors, suppliers and the local community.

The Code applies to all subsidiaries and all different areas and countries of the Group's operational activity and is also considered in the Partnerships and Joint Ventures in which the Group participates. The content of the Code is not exhaustive and includes the minimum requirements regarding human capital procedures (e.g. Health and Safety of employees and associates) and governance mechanisms and practices (e.g. avoidance of bribery practices, healthy competition, etc.). These minimum commitments are complemented by policies, procedures, and other internal documents, which are equally binding for all.

The content of the Code is aligned with the general principles set out in international regulations and relevant conventions, as well as international standards. To ensure their application, the Group undergoes periodic audits by accredited bodies from which it has obtained the corresponding certifications.

The Code of Ethics and Conduct is an overarching framework that also includes issues related to labor and human rights. More specifically, individual issues, such as the fight against violence at work, the violation of human rights, etc., are specified to a greater extent with individual policies and internal procedures of the Group.

The Group, guided by the Code of Ethics and Conduct, places particular emphasis on integrity, transparency, and professionalism, while demonstrating zero tolerance for issues of corruption, bribery and generally illegal or unlawful and unethical behavior. Complying with the requirements of Law no. 4990/2022 on Whistleblowing, the Group has adopted and implemented a "Whistleblowing Policy" and has appointed an Officer responsible for the receipt and monitoring of reports.

Any employee may report or raise a concern regarding any issue related to the implementation of the Code of Ethics and Conduct, either by name or anonymously through the following channels of reaction:

▪ Send an email to compliance@terna-energy.com

▪ Using the online platform

https://ternaenergy.integrityline.com/frontpage

.

▪ Sending a letter to the address: “ TERNA ENERGY S.A.”, 85 Mesogeion Ave., 115 26 Athens, attention of the “Responsible for the receipt and monitoring of reports “of the Company, marked as “Confidential”.

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▪ By phone (Monday to Friday: 9:00 - 17:00) at +30 210 6968300, mentioning “Communication with the Responsible for the receipt and monitoring of reports”.

▪ Personal meeting with the Responsible for the receipt and monitoring of reports, during the Company's operating hours (Monday to Friday: 9:00 - 17:00), within a reasonable time frame from the submission of the relevant request for a personal meeting.

3.1.2 Compliance, Corruption and Bribery Control Policy

Regulatory compliance and control of corruption and bribery are key principles of the Group's voluntary commitments and responsible governance. The objectives of the Group for the efficient and effective management of these issues are reflected in the Compliance, Corruption and Bribery Control Policy as follows:

• Strict compliance with all requirements arising from the regulatory framework of the Group, as defined by the Management System.

▪ Strict compliance with the legal framework that governs the issues of corruption and bribery in the activities of the Group.

▪ Strict adherence to the legal framework governing the issues of money laundering and terrorist financing.

▪ Employee awareness in matters of regulatory compliance, corruption, and bribery but also of the Code of Ethics and Conduct, to create a strong culture of compliance within the Group and compliance with the policies and procedures of the Management System.

▪ Identification and management of regulatory compliance and corruption-bribery risks. This includes identifying and assessing the risks associated with the regulatory corruption and bribery framework to take appropriate measures to reduce them.

▪ Communication of compliance obligations, including risks, management procedures, non-compliances as well as improvement actions and the results of controls / audits to all parties involved.

▪ Creation of the appropriate control mechanism and prevention measures to detect and prevent issues such as bribery, corruption, money laundering and bribery financing, conflict of interest, general regulatory compliance issues.

Prevention mechanisms and measures include the following:

o Clear definition of the principles related to these issues, that govern the Group through the Code of Ethics and Conduct and the applicable Policies.

o Clear definition of responsibilities through the Internal Rules of Operation.

o Different levels of approval are clearly defined in the Internal Rules of Operation and in the decisions of the Board of Directors.

o Application of the four-eye principle and double signatures in the Group's procedures.

o Continuous training and awareness of staff.

o Due diligence actions in the selection of partners, suppliers, staff, subcontractors, and customers.

o Scheduled and extraordinary audits by the Internal Audit Unit.

o Scheduled and extraordinary internal audits by the Head of Regulatory Compliance.

To achieve the above, the Group is committed to the following:

o Continuous training and staff awareness.

o Reporting and Managing Complaints.

o Independence of the Regulatory Officer.

o Implementation of procedures for managing conflicts of interest.

o Continuous improvement of Management System efficiency.

o Operation of a Mechanism for the evaluation of cases of non-performance of obligations.

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o Drafting and implementation of Policies specializing in regulatory compliance, corruption, and bribery issues, such as unhealthy competition policy, travel and accommodation policy, gift policy, sponsorship, and donation policy.

Moreover, TERNA ENERGY Group is implementing a Certified Anti-Bribery Management System based on the requirements of ISO 37001:2016, and additionally applies a Compliance Management System, based on the new international standard ISO 37301:2021 which has been certified by an accredited Certification Body.

3.1.3 Policy on the protection of Personal Data

Μetric ATHEX C-G6 Data security policy

Safe management of information and protection of personal data of all the individuals involved in the Group’s activities is an issue of essence in order to ensure regulatory compliance, as underlined in the Code of Ethics and Conduct and the business ethics principles that characterize all the activities, functions and partnerships run by the Group. As such, an Information Security Management System Manager has been appointed, who cooperates with the Group Chief Information Systems Security Officer (CISO) and the Personal Data Protection Unit to monitor the Group's compliance with relevant laws and regulations.

In order to ensure a significant level of security, proportionate to the criticality and confidentiality of the data and information sharing, a personal data protection policy is in place and an Information Security Management System has been developed and certified under the international standard ISO/IEC 27001:2013.

The Group complies with the relevant European and National legal frameworks and has appointed a Data Protection Officer (DPO), who reports to the Board of Directors. Appropriate organizational and technical measures are taken to protect the personal data processed by the Group and those who process the information on its behalf are also bounded accordingly.

These measures include policies and procedures on the rights of the data subjects and on the management of data breach incidents.

3.2 Major Risks & Risk Management

The fight against corruption is of high importance, not only for dealing with potential negative impacts on the Group, but also on society, the economy, and the environment. To effectively address any crucial issues that may arise from its operational activities, the Group is implementing a certified Anti-Corruption and Anti- Bribery Management System, based on the requirements of the ISO 37001 standard, for the identification and handling of potential corruption and fraud risks, through a systematic identification, analysis, and assessment approach.

With a priority on increasing installed capacity, strengthening its leadership position in Greece, enhancing international presence, diversifying into a range of technologies, and leveraging its capabilities in the renewable energy value chain, the Group acknowledges that effective Risk Management, integrated into all organizational functions and processes, is a fundamental component in decision-making while it also contributes to continuous improvement and growth of the Group. In this context, the Group develops and implements a comprehensive Risk Management System. This system supports Management in making strategic decisions by identifying, assessing, communicating, and addressing Corporate Risks, establishing the strategy for monitoring, and responding to Risk Management, identifying both threats and corresponding opportunities that arise.

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The Group through the “

Risk Management Policy

” is committed to the following :

▪ Adoption of preventive actions in Risk Management for all operational activities through transparent systematic processes and procedures.

▪ Ensuring effective identification, assessment, and management of emerging risks through appropriate unified methods of internal consultation, control tools, indicators, and reports.

▪ Managing all corporate activities in compliance with the legal framework, internal procedures, requirements of identified stakeholders, the Company's Code of Business Ethics, and international best practices.

▪ Establishing minimum tolerance thresholds for each risk assessment level, and in case of exceeding these thresholds, implementing corrective actions accordingly.

▪ Promoting systematic monitoring of the Risk Management Process and reviewing its outcomes through assigning distinct roles and responsibilities during the implementation stage.

Ensuring Business Continuity

In addition, through the Business Continuity Policy, the top management of TERNA ENERGY Group identifies risks that may threaten the smooth operation of the Group and allocates all necessary resources for the implementation of the Business Continuity Management System, in accordance with the international standard ISO 22301:2019 that allows:

▪ business continuity of critical functions after an emergency or disruption.

▪ the return to acceptable levels of operation as soon as possible.

The implementation of the Business Continuity Management System, through the adherence to the business continuity policy, procedures and relevant business continuity plans, aims to preserve the Health and Safety of personnel, minimize the impact of business disruption incidents on stakeholders, and establish systematic methods for the planning and evaluation of the company's business continuity requirements.

3.3 Non-Financial performance indicators

TERNA ENERGY Group is certified according to the ISO 37001 anti-bribery standard for all its activities.

GRI 205-3: Confirmed incidents of corruption and actions taken.

During 2023, there were no confirmed case of corruption, either through complaints or through audits carried out by the Group.

GRI 419-1: Non-compliance with socio-economic laws and regulations

During 2023, no fines and / or non-monetary sanctions for non-compliance with laws and / or regulations in the social and economic sector, were inflicted to the Group.

4. Environmental issues

4.1 Due Diligence and other policies

4.1.1 Environmental management and compliance

TERNA ENERGY Group operates with a high sense of environmental responsibility and continuously adapts its business practices to the needs of environmental protection and the efficient management of natural resources. By ensuring compliance with environmental legislation and implementing sustainable practices, the Group ensures that its activities minimize any negative impact of its environmental footprint.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

27

The environmental principles guiding the Group's business decisions are aligned with the European Green Deal Directives and the National Climate Law. Through a coherent environmental policy, the Group sets clear guidelines for all its subsidiaries & activities, aiming to follow the best environmental practices to contribute to the protection and preservation of the natural environment.

More specifically, the Group's environmental strategy includes:

▪ implementation of an Environmental Management System according to ISO 14001:2015,

▪ implementation of the Eco-Management and Audit Scheme System (EMAS),

▪ mitigation of the climate change impacts,

▪ protection and conservation of biodiversity,

▪ responsible management of solid and liquid waste,

▪ responsible for water management.

To ensure environmental compliance at both activity and operational levels, internal and external environmental audits are conducted annually and at regular intervals. These audits aim to verify compliance with legislation, protocols, working practices, and the requirements of international standards. Internal environmental audits are carried out by the QHSE Department, while external audits are conducted by accredited Certification Bodies and other auditing authorities.

In this context, a Management Systems Policy has been developed, aiming to mitigate the environmental impact of the Group’s operations, reduce the energy consumption and greenhouse gas emissions related to the Group’s buildings and facilities, and promote the Group’s sustainable development.

It is worth noting that in October 2023, TERNA ENERGY Group completed its registration in the European Union's EMAS Register with registration number EL-000119.

4.2 Risk Management

4.2.1 Tackling Climate Change

Μetric ATHEX A-E2: Risks and opportunities from climate change

In terms of mitigation and adaptation to climate change, the Group's activity regarding energy production from RES and integrated waste management contributes to tackling climate change. Furthermore, the Group is committed to reduce its carbon footprint and contribute to the parent Group’s company (GEK TERNA) target to reduce the intensity of greenhouse gas emissions by 25% by 2025 (with 2021 as the baseline year), through specific actions such as:

▪ Implementation of a strategy to reduce energy consumption and greenhouse gas emissions in its buildings and facilities.

▪ Use of 100% green electricity in all Group's facilities in Greece and abroad from 2021 onwards, and therefore zero indirect greenhouse gas emissions (Scope 2) related to all Group’s facilities.

▪ Continuous assessment of risks and opportunities related to climate change, carried out within our Environmental Management System, and alignment with TCFD recommendations.

▪ Contribute to the global decarbonisation effort by increasing the installed capacity of renewable energy production to 6GW by the end of 2029.

▪ Acceleration of investment plans in the field of energy storage, with the aim of contributing decisively to maximizing the penetration of RES and to the achievement of the Greek national energy and climate goals.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

28

4.2.2 Protection and conservation of Biodiversity

Μetric ATHEX A-E5: Biodiversity sensitive areas

In the context of responsible management of the impacts on biodiversity that may result from the Group's activities, best practices and advanced technologies are applied in order to minimize the negative effects and achieve positive impacts on the natural ecosystems within or close to the Group's activity areas.

In this context, the Group applies the following:

- Site investigation of the projects and required infrastructure, during the planning phase in order to identify any special requirements or restrictions that may exist due to national and European regulatory provisions (e.g. Habitat Directive 92/43/EEC) and the possibility that the projects/infrastructure may fall within protected areas of the Natura 2000 network or other areas with land use restrictions.

- Preparation of Environmental Impact Assessment (EIA) and other specific studies in line with the applicable international (where required) and national legal framework.

- Implementation of a certified Environmental Management System (EMS) and training. More specifically, the EMS, certified in accordance with the requirements of the international standard ISO 14001, has been developed and communicated to all stakeholders involved in the supply chain (employees, partners, suppliers, subcontractors), while also trainings are conducted for the Group's employees and subcontractors.

- Development of multi-year monitoring programs for the interaction of wildlife (including avifauna) with the Group facilities, in accordance with the requirements of the Environmental Terms Approval Decisions (ETADs), as well as beyond them.

- Installation of avifauna protection systems in wind farms, as provided by the approved Environmental Terms, using automated bird identification software and high-definition cameras. Since 2021, bird protection systems have been operating in wind farms in Crete and Evros, where a total of 39 systems have been installed. In 2023, the bird monitoring study for all wind farms of the Karystia project was completed, with 81 collision prevention systems installed.

In addition, in 2023:

• A study was conducted for the protection of wildlife related to the waste management project under construction in the Peloponnese Region (MEA Skala Lakonias).

• The first year of the Ornithological Monitoring Program for the operational Small Hydroelectric Power Station at the "Dafnozonara – Sanidi" site in the regions of Arta, Karditsa, and Aetolia-Acarnania was completed (period: December 2022 – November 2023).

In the context of this project, the following were conducted, on a monthly basis:

• Vantage Point surveys of flights of sensitive bird species in relation to pylons and high-voltage power lines and assessment of the collision risk of sensitive species,

• A bird search survey for any potential collision victims, under the pylons and high-voltage power lines,

• A survey of the status of important bird species in the vicinity of the project area and mapping of sensitive species nests in the project area.

Based on the above records, data processing and analysis are conducted, thematic maps are generated, and conclusions are drawn regarding flights of sensitive species, collision risk, and the need for mitigation measures, if the risk is deemed significant.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless mentioned otherwise)

29

During the construction of the Amphilochia pumped-storage project, audits are carried out during vegetation clearing and excavation of the surface soil, as part of environmental monitoring and compliance with environmental permits. Additionally, the area within a radius of at least 100 meters around the intervention point is investigated to identify wildlife species (mammals, birds, reptiles, amphibians, fish) that may be at risk from the activity, so that, if necessary, they can be relocated to a safer location. Furthermore, a biologist specializing in ornithology is employed to conduct monthly field research and prepare relevant reports.

4.2.3 Responsible waste management

Μetric ATHEX A-E3: Waste Management

Responsible waste management applies to the activities of TERNA ENERGY Group and its suppliers and partners, both in Greece and abroad. Waste management that does not follow responsible guidelines may cause negative impacts both at a local (e.g., contamination of the local environment and deterioration of the residents’ quality of life) and at a national level (degradation of the natural environment and intensification of the solid and liquid waste management problem), as well as at its operations (e.g., imposition of sanctions and i nterruption of operations due to the uncontrolled production and/or waste disposal method).

Therefore, the Group invests in the implementation of the principles of Circular Economy, utilizing reuse and recycling practices in cooperation with certified entities. At the same time, the relevant specifications of the certified environmental management system are explicitly applied, and internal and external audits are carried out in order to identify impacts that need improvement and to adopt preventive and corrective actions to address them.

4.3 Non-Financial performance indicators

To ensure environmental compliance, in 2023, more than 60 internal and external audits were carried out at all the Group's facilities.

SASB IF-EU-000.D: Total electricity generation

The Group, as one of the largest Greek producers of energy from RES (2023), produced 2,596,675MWh of clean energy and prevented the release of 1,079,844 tnCO2 eq into the atmosphere.

GRI 304-2 Significant impacts of activities, products and services on biodiversity

During 2023, there were no incidents or complaints from regulators, environmental inspectors, NGOs and the local community regarding the violation of environmental conditions related to the protection of biodiversity in the Group's operations.

GRI 307-1 Non-compliance with environmental laws and regulations

During 2023, no fines or other sanctions were imposed on the Group in relation to the violation of environmental laws and regulations.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

30

Environmental data from the Group's activity for the production of electricity 1

GRI 302-1: Energy consumption within the organization

ATHEX C-E3: Energy consumption and production

Indicator C-E3: Energy consumption within the body

GRI 302-1: Energy consumption within the body

2023

2022

Fuel consumption within the Group from non-renewable sources (in MJ)

5,812,486.69

5,553,517.15

Electricity consumption from renewable sources (in MJ)

25,769,952

22,938,192.00

Total energy consumption within the Group (in MJ)

109,740,154.91

104,967,550.45

Total intra-group energy consumption (in MWh)

30,483.39

29,157.67

Percentage of electricity consumed (in MWh)

23.5%

22%

Percentage of energy consumed from renewable sources (in MWh)

95%

1 The data relate to all operating power generation facilities controlled by the Group in the countries: Greece, Bulgaria, Poland.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

31

ATHEX C-E1: Direct emissions (Scope 1)

GRI 305-1: Direct greenhouse gas emissions (Scope 1)

ATHEX C-E2: Indirect emissions (Scope 2)

GRI 305-2: Energy-related indirect greenhouse gas emissions (Scope 2)

SASB topic: Greenhouse gas emissions and energy resource management

ATHEX C-E1 Direct emissions (Scope 1)

GRI 305-1: Direct emissions of greenhouse gases (Scope 1

2023

2022

Total direct greenhouse gas emissions (in tCO₂e)

381.5

372.4

Biogenic CO₂ emissions (in tCO₂e)

4,367.4

4,273.4

ATHEX C-E2 Indirect emissions (Scope 2)

GRI 305-2: Energy-related indirect greenhouse gas emissions (Scope 2)

2023

2022

Location-based emissions (in tCO₂e)

2,679.05

2,672.4

Μarket-based emissions (in tCO₂e) 1

0

Which gases have been included in the calculation of indirect emissions (e.g. CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃, or all)?

ALL

SASB (IF-WM-120a.1): Emissions of gaseous pollutants

2023

2022

Emissions of NOₓ (including NO and NO₂ and excluding N₂O) (in t)

2.40

2.58

SOₓ emissions (including SO₂ and SO₃) (in t)

1.36

2.98

Emissions of non-methane organic compounds (VOCs) (in t)

N/A

Emissions of hazardous air pollutants (HAPs) (in t)

N/A

1 It is noted that the Group has completed the required procedure for the issuance of Guarantees of Origin for electricity from renewable sources, and the issuance of certificates by the competent authority (Renewable Energy Sources Operator & Guarantees of Origin - DAPEEP) is expected.

The greenhouse gas emissions included in the above table relate to the Group's operating activities in Greece, Bulgaria and Poland.

The methodology followed for the quantification and compilation of GHG emissions was based on the ISO 14064-1:2018 standards and the Greenhouse Gas Protocol.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

32

TERNA ENERGY does not maintain operational control of the Waste Management Facility of the Regional Unit of Epirus nor of Peloponnese Regional Unit and therefore its energy consumption and GHG emissions of these facilities are not included.

GRI 306-3: Waste generated.

GRI 306-4: Waste diverted from disposal.

GRI 306-5: Waste directed to disposal.

GRI 306-3: Waste generated

Unit

2023

2022

Hazardous Waste

Waste generated

Waste diverted from disposal

Waste not available for recovery

Waste generated

Waste diverted from disposal

Waste not available for recovery

Contaminated packaging - 15 01 10*

t

6.117

-

6.609

-

Contaminated absorbents-15 02 02*

t

15.634

-

15.579

-

Lubricants - 13 02 05*

t

18.218

-

7.875

-

Batteries - 16 06 01*

t

0.033

-

0.105

-

Oil filters - 16 01 07*

t

5.056

-

4.037

-

Oil waste - 13 08 99*

t

1.004

-

0.212

-

Antifreeze fluids - 16 01 14*

t

0.020

-

2.689

-

Oily water from oil/water separators - 13 05 07*

t

20.000

-

Fluorescent lamps - 20 01 21*

t

0.020

-

0.003

-

Waste from adhesives and sealants - 08 04 09*

t

-

0.204

-

Non-chlorinated hydraulic oils - 13 01 10*

t

0.350

-

4.080

-

Other engine oils and lubricants - 13 02 08*

t

0.000

-

3.250

-

Discarded equipment containing hazardous components - 16 02 13*

t

0.010

-

Batteries and accumulators included in 16 06 01, 16 06 02 or 16 06 03 and mixed batteries and accumulators containing such batteries - 20 01 33*

t

0.042

-

Total

t

66.504

-

44.643

-

Information necessary to understand the data and how the data have been collected

The figures for 2023 include:

-Facilities (Sites & Offices) in operation in the countries: Greece, Bulgaria and Poland.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

33

Non-hazardous Waste

Waste generated

Waste diverted from disposal

Waste not available for recovery

Waste generated

Waste diverted from disposal

Waste not available for recovery

Municipal Waste 2

t

165.11

-

165.11

51.2

-

51.2

End-of-life vehicles - wastes not otherwise specified - 16 01 99

t

0.19

-

Components (TCS vehicles) not otherwise specified - 16 01 22

t

2.49

-

Absorbent materials, filter materials, wiping cloths and protective clothing other than those mentioned in 15 02 02 - 15 02 03

t

3.23

-

Discarded equipment other than those mentioned in 16 02 09 to 16 02 13 - 16 02 14 - 16 02 14 -

t

0.025

-

Plastic packaging - 15 01 02

t

0.02

-

Recycled materials

t

-

52.97

-

Total

t

171.07

5.96

165.11

104.17

52.97

51.2

Information necessary to understand the data and how the data have been collected

The figures for 2023 include:

-Facilities (Sites & Offices) in operation in the countries: Greece, Bulgaria and Poland.

GRI 306-4: Waste diverted from disposal

Unit

2023

2022

Hazardous waste

Onsite

Offsite

Total

Onsite

Offsite

Total

Preparation for reuse

t

-

Recycling

t

-

44.64

Other recovery procedures

t

-

66.50

-

Total

t

-

66.50

-

44.64

Municipal waste is waste at the Eleoussa hydropower plant which is carried by the river and retained in the diversion grates of the hydropower plant. No periodic cleaning is carried out except when there is an increased concentration.

*Hazardous waste according to the European Waste List

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

34

Non-hazardous Waste

Onsite

Offsite

Total

Onsite

Offsite

Total

Preparation for reuse

t

-

Recycling

t

-

5.96

-

52.97

Other recovery procedures

t

-

Total

t

-

5.96

-

52.97

GRI 306-5: Waste diverted from disposal

Unit

2023

2022

Hazardous waste

Onsite

Offsite

Total

Onsite

Offsite

Total

Incineration (with energy recovery)

t

-

Incineration (without energy recovery)

t

-

Landfill

t

-

Total

t

-

Non-Hazardous waste

Onsite

Offsite

Total

Onsite

Offsite

Total

Incineration (with energy recovery)

t

-

Incineration (without energy recovery)

t

-

Landfill

t

-

165.11

-

51.20

Other recovery procedures

t

-

Total

t

-

165.11

-

51.20

* Based on the European Waste List

ATHEX Α-E3: Waste Management

ATHEX A-E3: Waste Management

202 3

202 2

Percentage of waste by type of treatment

Total amount of waste generated

t

237.57

148.81

Recycling

%

31%

66%

Preparation for reuse

%

0%

Landfill

%

69%

34%

Incineration (with energy recovery)

%

0%

Incineration (without energy recovery)

%

0%

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

35

GRI 303-3: Water withdrawal

GRI 303-4: Water discharge

GRI 303-5: Water consumption

SASB IF-EU-140a.1: Water Management

2023

2022

GRI 303-3: Water Withdrawal

Unit

All the areas

Areas of significant influence on water resources

All the areas

Areas of significant influence on water resources

Surface water

ML

3,730,524.84

3,963,200.00

Fresh water

ML

-

Other water (>1,000 mg/lt total dissolved solids)

Groundwater

ML

-

Fresh water

ML

-

Fresh water (>1,000 mg/lt total dissolved solids)

Sea water

ML

-

Fresh water

ML

1.25

1.28

Other water (>1,000 mg/lt total dissolved solids)

Generated water

ML

-

Fresh water

ML

-

Other water (>1,000 mg/lt total dissolved solids)

Third-party water

ML

3.67

3.62

2.30

2.23

Fresh water

ML

-

Other water (>1,000 mg/lt total dissolved solids)

ML

-

Surface water

ML

-

Groundwater

ML

-

Sea water

ML

-

Gerated water

Total

ML

3,730,528.51

3,730,528.46

3,963,202.30

3,963,202.23

Fresh water

ML

1.25

1.28

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

36

2023

202 2

GRI 303-4: Water discharge

Unit

All the areas

Areas of significant influence on water resources

All the areas

Areas of significant influence on water resources

Surface water

Fresh water

ML

3 , 730 , 524 . 84

3 , 963 , 200 . 00

Other water (>1,000 mg/lt total dissolved solids)

ML

-

Groundwater

Fresh water

ML

-

Other water (>1,000 mg/lt total dissolved solids)

ML

-

Sea water

Fresh water

ML

-

Other water (>1,000 mg/lt total dissolved solids)

ML

0.87

0.89

Third-party water

Fresh water

ML

-

Other water (>1,000 mg/lt total dissolved solids)

ML

-

Total third country waters sent for use by other organizations

ML

-

Total

Fresh water

ML

3 , 730 , 524 . 84

3 , 963 , 200 . 00

Other water (>1,000 mg/lt total dissolved solids)

ML

0.87

0 . 89

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

37

2023

202 2

Total Water Withdrawal/Discharge/Consumption

Unit

All the areas

Areas of significant influence on water resources

All the areas

Areas of significant influence on water resources

Total Water Withdrawal

a) Total water withdrawal

ML

3 , 730 , 529 . 76

3 , 730 , 529 . 71

3 , 963 , 203 . 58

3 , 963 , 203 . 51

b) Total freshwater abstraction

ML

3 , 730 , 528 . 51

3 , 730 , 528 . 46

3 , 963 , 20 2.3 0

3 , 963 , 20 2.23

c) Total other water intake (>1,000 mg/lt total dissolved solids)

ML

1 . 25

1 . 28

Total water discharge

a) Total water discharge

ML

3 , 730 , 525 . 71

3 , 963 , 200 . 89

b) Total freshwater discharge

ML

3 , 730 , 524 . 84

3 , 963 , 200 . 00

c) Other waters (>1,000 mg/lt total dissolved solids)

ML

0 . 87

0 . 89

Total water consumption

a) Total water consumption

ML

4.05

4

2 . 69

2 . 62

b) Change in water storage

ML

-

1 Includes data from all operating facilities controlled by the Group in Greece, Bulgaria, Poland.

The following data has been calculated :

- River water for the operation of hydroelectric stations (water withdrawn in the case is equal to water discharged)

- Seawater used for the desalination in Agios Georgios Island

- Water from the local networks, water transferred to the facilities with vehicles and bottled water .

- Water stress areas have been identified through the WWF Water Risk Filter (only installations in Bulgaria and 5 out of 8 installations in Poland are considered low risk).

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

38

Environmental data for other Group activities 1

202 3

2022

Total energy consumption (in MWh)

3 , 771 . 80

1 , 732 . 3

Direct emissions (Scope 1)

Total direct greenhouse gas emissions (in tonnes of CO₂e)

883 . 12

441 . 2

Indirect emissions (Scope 2) - Location-based emissions (in tonnes of CO₂e)

15 . 48

3 . 5

Indirect emissions (Scope 2) - market-based emissions (in tonnes of CO₂e)

0

Electricity consumption (in kWh) 2

41 , 643 . 14

8 , 330 . 0

Water withdrawal from third parties (lt) 3

12 , 720 , 000

21 , 550 , 764 . 0

Construction waste (tn) 4

226.26

12 , 621 . 8

Soils and stones (17 05 04)

-

12 , 106 . 4

Mineral asphalt mixtures (17 03 02)

-

372 . 5

Construction and demolition waste mixtures (17 09 04)

226 . 26

14 . 3

Excavator mortar (17 05 06)

-

128 . 6

1 It concerns the Group's activity for the construction of wind farms in Evia and the support, operation, maintenance and technical management of the electronic ticket system.

2 The listed price refers to the consumption of electricity at the offices of TERNA ENERGY and the houses rented in the area of Karystos in Evia.

3 The listed price refers almost entirely to wetting the streets during the construction of the Kafireas works.

4 The listed price refers to construction waste from Kafirea's projects.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

39

5. Sustainable Supply Chain

With the aim of maximizing its positive impact, the Group conducts its business activities throughout the supply chain following a detailed assessment of potential environmental, social, and economic impacts. To meet the new challenges posed by supply chain issues, the Group ensures that it regularly updates the criteria it uses in its processes for managing supply chain issues, such as new terms of engagement with suppliers and preference for domestic suppliers.

For this reason, on an annual basis, the Group aims to further strengthen its partnerships with local suppliers, and create relationships of trust, contributing, at the same time, to the stimulation of local communities and enhancing of the Group’s socio-economic footprint.

TERNA ENERGY Group recognizes the importance of disseminating the fundamental principles and values of corporate culture and business ethics in the supply chain as an important element of responsible business conduct. In this context, in 2023 the

Procurement Policy

was universally implemented, defining the basic framework of policies and values that should characterize the professional behavior of all the Group's partners, including its subsidiaries in Greece and abroad.

At the same time, the Procurement Policy acknowledges the risk of incidents of violation of international standards and/or legislation related to the practices of its suppliers and the possibility of non-adoption of common policies/values of suppliers with the Group. It is noted that potential supply chain risks may arise from the failure to support local and domestic suppliers, with a potential reduction in their purchasing power and the wider economic growth and prosperity of the regions of operation.

5.1 Due diligence and other policies.

5.1.1 Supply Chain

Μ etric ATHEX C-S8: Supplier Assessment

The responsible management of the supply chain is placed at the center of the Group's effort to create long- term value through its business operation and the establishment of responsible business relationships with its suppliers and partners. In this direction, the Group selects suppliers and partners that are in line with the provisions of its Procurement Policy. Moreover, the Group communicates its minimum cooperation requirements with the aim of meeting environmental, energy and social criteria by the corresponding policies and procedures.

Principal conditions of cooperation with any supplier are full compliance with the regulatory framework for Health and Safety and environmental management, the Code of Ethics and Conduct, the Human Rights Policy, and the Personal Data Protection Policy for ensuring the proper and safe operation of the supply chain and the safe execution of all operations. In addition, the main concern of the Group is the use of materials and equipment that are environmentally friendly and belong to a high energy class of low energy consumption with the least possible risk for the user and the environment apart from having enhanced suitability and usability.

Taking into account the aforementioned, the Group's suppliers and partners selection process is also based on ESG criteria, while the evaluation process is implemented on an annual basis in order to ensure the maximum degree of suitability of the Group’s partnerships.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

40

5.1.2 Human Rights

Μetric ATHEX C-S6: Human rights Policy

Human rights Policy

TERNA ENERGY Group has set its Human Rights Policy as the foundation of responsible business behavior and contribution to Sustainable Development. The purpose of this policy is to express the Group’s commitment to respecting international human rights and to recognizing the responsibility for identifying, assessing and managing potential impacts on the rights of stakeholders, throughout the Group’s value chain and activities. The Policy’s scope covers all countries that the Group operates by identifying human rights per stakeholder group categories and taking into consideration the following:

▪ United Nations Universal Declaration of Human Rights/The International Bill of Human Rights

▪ United Nations International Covenant on Civil and Political Rights

▪ United Nations International Covenant on Social, Economic and Cultural Rights

▪ United Nations Guiding Principles on Business and Human Rights

▪ United Nations Global Compact Principles

▪ ILO Declaration on Fundamental Principles and Rights at Work

▪ United Nations Resolution 46/7 on Human Rights and the Environment

▪ Voluntary Principles on Security and Human Rights

▪ The Business and Human Rights Resource Centre Benchmark for Renewable Energy & Human Rights

The Human Rights Policy is covered by the Group’s Complaints and Grievance Mechanism and has been thoroughly communicated to all employees.

5.2 Risk Management

TERNA ENERGY Group acknowledges the high importance of respecting internationally recognized human rights, as it sets the foundation of responsible business behavior while paving the way to its sustainable development. The Group identifies the risk of human rights violations both within its supply chain and its own boundaries, such as forced or child labor.

The potential violation of human rights may have negative impacts on the Group itself, such as the imposition of fines or penalties, as well as on its employees and reputation and / or trust of its stakeholders. Implementing the human rights principles, the Group contributes more widely to the reinforcement of the rule of law and to the improvement of legal systems, which form the basis for the conclusion of all business contracts.

5.3 Non-financial performance indicators

In 2023, there were no incidents of human rights violations at TERNA ENERGY Group.

6. Social and Labour issues

The Group's employees constitute the cornerstone of its growth, business continuity and uninterrupted operation. Therefore, the Group manages potential risks and opportunities to ensure a balanced and safe working environment, which contributes to the Group’s vision.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

41

6.1 Due Diligence and other policies

Through the adoption of responsible policies to create shared value for all its stakeholders, the Group supports the local communities in which it operates and with which it interacts, and through continuous stakeholder engagement and consultation efforts, aims to identify and address their real needs.

The Group actively participates, supports, and regards investment in its people as a highest priority, providing the necessary resources for the promotion of the continuous improvement of the working environment. The Group, for the management of social and labor issues:

▪ Increases its socio-economic footprint.

▪ Provides equal opportunities, payroll, and benefits.

▪ Provides equal opportunities for training and education.

▪ Implement the Health and Safety policy.

6.1.1 Human Resources

Equal opportunities, rewards, and benefits

Equal treatment in the working environment, the elimination of all kinds of discrimination and the provision of equal opportunities, are integral to the Group’s understanding and business conduct.

The Group supports internal recruiting, ensuring that existing employees are considered for filling job vacancies and thus giving them the opportunity to improve their careers.

The Group collaborates with the largest University Institutions of the country, thus strengthening the development of more internship positions and the acquisition of professional experience to undergraduate students, while providing the ability to offer professional opportunities after their graduation.

With a view to developing a fair working environment, the Group has developed a Remuneration & Benefits Policy, the basic principles of which include:

▪ Shaping a working environment in such a way as to engage and motivate the employees.

▪ Attracting new competent executives and competent employees of every level.

▪ Efficiently work in a controlled and stable environment of trained human resources, with a common corporate culture and knowledge of the requirements, in which the Group constantly invests.

In this context, all actions related to employees are based on meritocratic criteria which relate to the performance, competence, performance, achievements, effectiveness, and qualifications of each employee. At the same time, the attraction of new people and the retention of the Group's existing talents are based on transparent and objective procedures that underpin the Group's business strategy.

In addition, the Remuneration Committee is responsible for the Compensation Policy of BoD, committee members, individuals holding the position of General Managers or their deputies, as well as the senior management of the Group, as provided for in Article 110, paragraph 1 of Law 4548/2018, while the Group's Human Resources Management is responsible for the proper implementation of the Compensation and Benefits framework for the rest of the Group's population.

Training of employees

The training and development of employees constitute one of the most essential tools for achieving their professional advancement. The Group, acknowledging the value created by human capital, consciously

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

42

invests in the continuous provision of right resources and the evaluation of its employees to achieve the development of their skills and their progression in alignment with its strategic goals.

The Group systematically invests in training aimed not only at enhancing the performance of employees and upgrading their technical capabilities, but also at improving their ability to respond to emergency situations. The training and development programs are specialized and tailored to the subject matter of each position, strategic planning, and the needs of the human resources. Additionally, internal training is carried out on an annual basis and on a case-by-case basis by supervisors and specialized colleagues regarding Health and Safety, environment, personal data, cyber-security and the implementation of the Code of Conduct.

The Group's training plan includes the following categories of training activities:

▪ Intra-company training programs

▪ Inter-company training programs of third parties

▪ Conferences/ Workshops/ Lectures/ Exhibitions

▪ Foreign Language Courses

▪ Postgraduate programs

In addition, in the context of the ongoing training of the Group’s employees, the e-learning platform was activated at the beginning of 2023 to allow distance training for all employees on various topics (e.g. personal data, human rights, cyber-security and implementation of the Code of Conduct), enhancing their development.

The Group has a Training Policy which is a guiding policy for all TERNA ENERGY Group personnel. The purpose of the Policy is to describe the framework of internal procedures regarding the training of the Group's Human Resources and the dissemination of knowledge and experience, with emphasis on any developments concerning Internal Audit, Risk Management, Regulatory Compliance, Information Systems, Information Security and Personal Data Protection departments. The Policy is implemented under the responsibility of the Development Department of the Human Resources Division, is approved by the Group's Management as a framework and may be specified according to the needs and requirements of each subsidiary.

Responsible social relations and strengthening of the local communities.

With a focus on developing trusting relationships with local communities, the Group seeks to maximize the positive social impacts of its activities, ensuring its path towards Sustainable Development. Strengthening ties with local communities is achieved through the Group's strategy aimed at creating positive effects in its operational areas. Some indicative measures included in this strategy involve creating new job positions and supporting local suppliers and stakeholders, while particular emphasis is placed on the socio-economic footprint of projects. Additionally, consultation processes are enhanced to build and maintain trusting relationships with stakeholders.

6.1.2 Health and safety

Recognizing the importance of ensuring a healthy and safe working environment for all those directly or indirectly related to its operations, the Group has designed and adopted a series of actions and activities for Health & Safety (H&S):

▪ Implementation of a certified Health and Safety Management System based on the international standard ISO 45001,

▪ Shaping a corporate culture governed by Health and Safety principles,

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

43

▪ Full compliance with legal and other national, community and international requirements, directives and provisions relating to Health and Safety,

▪ Implementation, monitoring, evaluation and improvement of Health and Safety actions,

▪ Identifying occupational risks and developing an integrated prevention methodology,

▪ Prevention of injuries, illnesses and adverse Health and Safety incidents,

▪ Preparation and implementation of emergency management plans,

▪ Conduct of measurement of harmful factors in the working environment (noise, particulate matter, etc.),

▪ Provision of proper, adequate Health and Safety training and information to all employees, suppliers, subcontractors, partners and visitors,

▪ Compliance and strict adherence to H&S procedures,

▪ Immediate investigation of each accident/incident to assess the factors that led to it and take preventive measures,

▪ Incorporation of technologies, good practices and operating procedures that guarantee safety conditions for employees, subcontractors and third parties.

The practical commitment to Health and Safety issues is demonstrated by the certification of the Health and Safety Management System, which covers all the Group's activities, by an accredited body.

6.1.3 Combating workplace violence and harassment

In the context of ensuring a healthy and safe working environment, TERNA ENERGY Group has adopted, since 2022, the Policy against Violence and Harassment at the Workplace, which recognizes and respects the right of every employee to a working environment free from violence and harassment, governed by respect and guarantees human dignity.

Through this policy, the Group declares its zero tolerance to any incident of violence and harassment, in any form it may take, taking all appropriate and necessary measures to both prevent and address such incidents and forms of behavior.

6.2 Risk Management

The Group, having recognized the potential risks associated with the lack of equal opportunities, fair compensation, appropriate health and safety conditions, and employee training that may adversely affect its ability to operate effectively, has invested in creating appropriate structures and conditions that promote transparent recruitment, training, development, and reward of its human resources by offering equal opportunities and supporting diversity.

The Group cares about the Health & Safety (H&S) of all its human resources, while recognizing the potential risk of an occupational accident, it seeks to minimize it by preparing special Occupational Risk Assessment Studies (ORAs). Through ORAs, the potential risks related to health and safety are identified for each job position. At the same time, with respect to the local communities within which the Group conducts its activities, before commencing any new work, the Group conducts impact studies to assess along the planned activities, the potential social and environmental risks (e.g. effects on the health and safety of residents, quality of life) that the activities pose to local communities.

By increasing the available job positions, the Group contributes to addressing potential economic and social impacts associated with the reduction of employment in the country (e.g., unemployment), with a focus on creating job opportunities at the local level. Furthermore, emphasis is placed on recognizing the indirect

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

44

negative economic impacts that its activities may cause, by implementing best practices for their effective mitigation.

6.3 Non-financial performance indicators

During 2023, the social contribution of TERNA ENERGY Group through sponsorships, donations and infrastructure projects in the areas where it operates amounted to €4.3 million.

At the same time, the compensatory benefits to the municipalities where the Group's projects are located approached €6.5 million, which corresponds to 3% of the gross revenues from the operation of the projects.

Also in 2023, the Group continued to monitor its environmental footprint by implementing the relevant environmental impact studies in all the projects being constructed and carried out consultations and public information programs, where required.

GRI 406-1: Total number of discrimination incidents and corrective actions taken.

During 2023, there were no reported cases of human rights abuses and / or violations, discrimination due to race, religion, gender, age, disability, nationality, political beliefs, etc., including incidents of harassment, in any of its activities.

Μetric ATHEX SS-E6: Backlog cancellations

During 2023, there were no backlog cancellations or delays of work related to impacts on society within the TERNA ENERGY Group .

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

45

GRI 2-7: Employees

202 3

2022

Male

Female

Other 1

Not disclosed

Total

Female

Male

Other

Not Disclosed

Total

Number of permanent employees

100

343

0

443

97

320

0

417

Number of temporary employees

4

15

0

19

2

8

0

10

Number of non-guaranteed hours employees

0

Number of full-time employees

96

349

0

445

93

323

0

416

Number of part-time employees

6

2

0

8

7

4

0

11

Number of freelancers

21

111

0

132

21

108

0

129

Total number of employees (incl. freelancers)

125

469

0

594

121

435

0

556

Total

Total number of employees (excl. freelancers)

104

358

0

462

100

327

0

427

202 3

202 2

Male

Female

Other 1

Not disclosed

Total

Female

Male

Other

Not Disclosed

Total

Number of permanent employees

96

334

0

430

91

307

0

398

Number of temporary employees

4

12

0

16

2

8

0

10

Number of non-guaranteed hours employees

0

Number of full-time employees

94

344

0

438

87

310

0

397

Number of part-time employees

6

2

0

8

7

4

0

11

Number of freelancers

21

111

0

132

21

108

0

129

Total number of employees (incl. freelancers)

121

457

0

578

115

422

0

537

Greece

Total number of employees (excl. freelancers)

100

346

0

446

94

314

0

408

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

46

202 3

202 2

Male

Female

Other 1

Not disclosed

Total

Female

Male

Other

Not Disclosed

Total

Number of permanent employees

0

1

0

1

0

1

0

1

Number of temporary employees

0

Number of non-guaranteed hours employees

0

Number of full-time employees

0

1

0

1

0

1

0

1

Number of part-time employees

0

Number of freelancers

0

Total number of employees (incl. freelancers)

0

1

0

1

0

1

0

1

USA

Total number of employees (excl. freelancers)

0

1

0

1

0

1

0

1

202 3

202 2

Male

Female

Other 1

Not disclosed

Total

Female

Male

Other

Not Disclosed

Total

Number of permanent employees

2

4

0

6

2

4

0

6

Number of temporary employees

0

Number of non-guaranteed hours employees

0

Number of full-time employees

2

4

0

6

2

4

0

6

Number of part-time employees

0

Number of freelancers

0

Total number of employees (incl. freelancers)

2

4

0

6

2

4

0

6

Bulgaria

Total number of employees (excl. freelancers)

2

4

0

6

2

4

0

6

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

47

202 3

202 2

Female

Male

Other

Not Disclosed

Total

Female

Male

Other

Not Disclosed

Total

Number of permanent employees

2

4

0

6

3

8

0

11

Number of temporary employees

0

3

0

3

0

Number of non-guaranteed hours employees

0

Number of full-time employees

0

3

8

0

11

Number of part-time employees

0

Number of freelancers

0

Total number of employees (incl. freelancers)

2

7

0

9

3

8

0

11

Poland

Total number of employees (excl. freelancers)

2

7

0

9

3

8

0

11

1 Gender as defined by the employees themselves.

2 The number of employees has been calculated using the Headcount methodology.

GRI 2-8: Employed persons not in employment.

GRI 2-8: Workers who are not employees

2023 1

2022

Workers who are not employees and whose work is controlled by the organization

TOTAL

151

127

1 Includes all trainees, agency workers and subcontractors. The number of subcontractors has been calculated as the average number of subcontractors who worked at TERNA ENERGY's facilities in 2023

(Greece, Poland, Bulgaria).

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

48

Metric ATHEX C-S2: Female employees

ATHEX C-S2: Female employees

2023

2022

Percentage of female employees*

21.5%

21.8%

Metric ATHEX C-S3: Female employees in management positions

ATHEX C-S3: Female employees in management positions

2023

2022

Percentage of female employees at the top 10% of employees

by total compensation

20.7%

16.07%

* Total women employees in management positions account for 30%.

Average of employees

2023

2022

Workers

322

321

Employees

124

106

GRI 2-30: Collective bargaining agreements

Metric ATHEX C-S7: Collective bargaining agreements

GRI 2-30: Collective bargaining agreements

2023

2022

Percentage of the total number of employees covered by collective bargaining agreements

%

100% 1

1 All employees of TERNA ENERGY in Greece are covered by the National General Collective Agreement. Correspondingly, the provisions for collective agreements at the national level are followed

on a case-by-case basis in the countries where the Group operates abroad.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

GRI 403-8: Workers covered by an occupational health and safety management system

2023

2022

Employees and workers who are not employees but whose work and/or workplace is controlled by the organization 1

Total number

745

683

Number and percentage of all employees and workers who are not employees but whose work and/or workplace is controlled by the organization, who are covered by a H&S

management system

Number

745

683

Percentage

100%

Number and percentage of all employees and workers who are not employees but whose work and/or workplace is controlled by the organization, who are covered by a H&S management system that has been internally audited

Number

745

683

Percentage

100%

Number and percentage of all employees and workers who are not employees but whose work and/or workplace is controlled by the organization, who are covered by a H&S management system that has been audited or certified by an external party 2

Number

726

661

Percentage

98%

96.78%

1 Workers who are not employees but whose work and/or workplace is controlled by the organization, include all trainees, agency workers as well as subcontractors. The number of subcontractors has been calculated as the average number of subcontractors who worked at TERNA ENERGY's facilities in 2023 (Greece, Poland, Bulgaria).

2 Employees and employees who are not employees but whose work and/or workplace is controlled by the organization, based in Bulgaria and Poland, are not covered by an externally audited health and safety system.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

Indicator C-S5: Health and safety performance

2023

2022

Employees

Number of workdays lost due to work-related accidents

0

4

Accident severity rate

0.00

0.93

Workers who are not employees but whose work and/or workplace is controlled by the organization*

Number of workdays lost due to work-related accidents

0

Accident severity rate

0.00

0

* Workers who are not employees but whose work and/or workplace is controlled by the organization, include all trainees, agency workers as well as subcontractors working in the operations part of Terna Energy’s activities. The number of subcontractors has been calculated as the average number of subcontractors who worked at TERNA ENERGY's facilities in 2023 (Greece, Poland, Bulgaria).

GRI 403-9 Work-related injuries

GRI 403-10 Work-related ill health

SASB IF-EU-320a.1: (1) Total recordable incident rate (TRIR), (2) fatality rate, and (3) near miss frequency rate (NMFR)

GRI 403-9: Workplace-related injuries

2023

2022

Employees

Number of hours worked

1,190,744

857,416

Number of fatalities as a result of work-related injury

0

Rate of fatalities as a result of work-related injury

0.00

Number of high-consequence work-related injuries (excluding fatalities)

0

Rate of high-consequence work-related injuries (excluding fatalities)

0.00

Number of recordable work-related injury2

0

1

Rate of recordable work-related injuries (IR) 3

0

0.23

The main types and number of work-related injuries:

-

Light injury during the use of stairs

0

1

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

All workers who are not employees but whose work and/or workplace is controlled by the organization

Number of hours worked

114,936

131,040

Number of fatalities as a result of work-related injury

0

Rate of fatalities as a result of work-related injury

0.00

Number of high-consequence work-related injuries (excluding fatalities)

0

Rate of high-consequence work-related injuries (excluding fatalities)

0.00

Number of recordable work-related injury2

0

3

Rate of recordable work-related injuries (IR) 3

0

4.58

The main types and number of work-related injuries

-

In the above table:

▪ Indicators are presented in rounded form.

▪ There were no workplace-related deaths, high-consequence injuries or illnesses.

▪ Indicators are calculated at a rate of 200,000 ([total number of recordable work-related injuries or number of working days lost due to work-related accidents / total number of working hours of all employees per year] x 200,000). The rate of 200,000 indicates the number of hours worked by 100 full-time employees in a year .

▪ Occupational hazards that may result in injuries have been identified and recorded by the safety technician in collaboration with the operation and project managers of each facility, through the occupational risk assessment process. The Safety Technician, in case of any injury, makes recommendations for the proper monitoring of safety rules and instructions to show due care .

▪ Work-related near-misses are not included .

▪ Workers who are not employees but whose work and/or workplace is controlled by the organization, include all trainees, agency workers as well as subcontractors working in the operations part of Terna Energy’s activities. The number of subcontractors has been calculated as the average number of subcontractors who worked at TERNA ENERGY's facilities in 2023 (Greece, Poland, Bulgaria) .

2 Refers to minor injuries.

3 Accident frequency rate based on terminology of the Athens Stock Exchange Reporting Guide 2023.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

GRI 401-1: New employees hires and employee turnover.

Metric C-S4: Employee turnover

202 3

202 2

<30 years old

30-50 years old

>50 years old

<30 years old

30-50 years old

>50 years old

GRI 401: Recruitment of new employees and employee turnover

ATHEX C-S4: Employee turnover and mobility

Male

Female

Toatal

Male

Female

Total

Male

Female

Total

Male

Female

Total

Male

Female

Total

Male

Female

Total

Total number of employees

53

13

66

312

89

401

92

19

111

53

14

67

272

83

355

97

18

115

Number of new employee hires

36

10

46

94

17

111

21

5

26

38

10

48

74

17

91

23

1

24

Rate of new employee hires

68%

77%

70%

30%

19%

28%

23%

26%

23%

72%

71%

72%

27%

20%

26%

24%

6%

21%

Number of voluntary employee exits

11

2

13

34

8

42

11

0

11

9

1

10

38

11

49

4

1

5

Employee voluntary turnover rate

21%

15%

20%

11%

9%

10%

12%

0%

10%

17%

7%

15%

14%

13%

14%

4%

6%

4%

Number of forced employee exits

3

1

4

24

4

28

10

2

12

2

0

2

11

3

14

6

0

6

Employee involuntary turnover rate

6%

8%

6%

8%

4%

7%

11%

4%

0%

3%

4%

6%

0%

5%

Total number of turnover

14

3

17

58

12

70

21

2

23

11

1

12

49

14

63

10

1

11

Greece

Total employee turnover rate

26%

23%

26%

19%

13%

17%

23%

11%

21%

7%

18%

17%

18%

10%

6%

10%

Total number of employees

0

1

0

1

0

1

0

1

0

Number of new employee hires

0

Rate of new employee hires

0%

USA

Number of voluntary employee exits

0

1

0

1

2

0

1

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

202 3

202 2

<30 years old

30-50 years old

>50 years old

<30 years old

30-50 years old

>50 years old

GRI 401: Recruitment of new employees and employee turnover

ATHEX C-S4: Employee turnover and mobility

Male

Female

Toatal

Male

Female

Total

Male

Female

Total

Male

Female

Total

Male

Female

Total

Male

Female

Total

Employee voluntary turnover rate

0%

100%

0%

200%

0%

Number of forced employee exits

0

1

0

1

7

2

9

1

2

Employee involuntary turnover rate

0%

700%

0%

900%

0%

Total number of turnover

0

2

0

2

8

3

11

1

2

3

Total employee turnover rate

0%

800%

0%

1100%

0%

Total number of employees

0

5

2

7

2

0

2

0

8

3

11

0

Number of new employee hires

0

2

1

3

0

Rate of new employee hires

0%

25%

33%

27%

0%

Number of voluntary employee exits

0

1

2

0

Employee voluntary turnover rate

0%

20%

50%

29%

0%

Number of forced employee exits

0

Employee involuntary turnover rate

0%

Total number of turnover

0

1

2

0

Poland

Total employee turnover rate

0%

20%

50%

29%

0%

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

202 3

202 2

<30 years old

30-50 years old

>50 years old

<30 years old

30-50 years old

>50 years old

GRI 401: Recruitment of new employees and employee turnover

ATHEX C-S4: Employee turnover and mobility

Male

Female

Toatal

Male

Female

Total

Male

Female

Total

Male

Female

Total

Male

Female

Total

Male

Female

Total

Total number of employees

0

3

2

5

1

0

1

0

3

2

5

1

0

1

Number of new employee hires

0

Rate of new employee hires

0%

Number of voluntary employee exits

0

Employee voluntary turnover rate

0%

Number of forced employee exits

0

Employee involuntary turnover rate

0%

Total number of turnover

0

Bulgaria

Total employee turnover rate

0%

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

C-S4: Metric ATHEX C-S4: Employee turnover

• Greece

2023

2022

ATHEX C-S4: Employee turnover 1

Male

Female

Total

Male

Female

Total

Ratio of voluntary employee turnover

12.25%

8.26%

11.42%

12.09%

11.30%

11.92%

Ratio of involuntary employee turnover

8.10%

5.79%

7.61%

4.50%

2.61%

4.10%

• Abroad

2023

2022

ATHEX C-S4: Employee turnover 1

Male

Female

Total

Male

Female

Total

Ratio of voluntary employee turnover

8.33%

25.00%

12.50%

15.38%

33.33%

21.05%

Ratio of involuntary employee turnover

0.00%

69.23%

50%

63.16%

1 The ratio of voluntary employee turnover is calculated by dividing the total amount of voluntary departures within a year by the number of employees within a year and multiplying it by 100 to give the figure as a percentage. The ratio of involuntary employee turnover is calculated by dividing the total amount of involuntary departures in a year by the number of employees in a year and multiplying by 100 to give the figure as a percentage.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

GRI 404-1: Average hours of training per year per employee

Metric ATHEX C-S5: Employee training

Employee training

GRI 404-1 Average hours of training per year per employee

202 3

2022

Gender

Male

Female

Other *

Not Disclosed

Male

Female

Other *

Not Disclosed

By employee level

Employees in the top 10% of employees by total compensation

8.3

16.0

0.0

0.5

4.0

0.0

Employees in the bottom 90% of employees by total compensation

5.7

8.6

0.0

7.7

7.4

0.0

Total

5.9

9.3

0.0

7.0

7.1

0.0

Gender

Male

Female

Other *

Not Disclosed

Male

Female

Other *

Not Disclosed

By function

Administrative staff

19.1

23.0

0.0

27.4

16.7

0.0

Technicians

9.2

0.6

0.0

6.8

0.7

0.0

Rest of workers

0.1

0.0

0.6

0.0

Total

5.9

9.3

0.0

7.0

7.1

0.0

* Gender as specified by employees themselves.

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

GRI 405-1: Diversity of governance bodies and employees

2023

<30 years

30-50 years

>50 years

Employees by category

GRI 405-1: Diversity of governance bodies and employees

Male

Female

Total

Male

Female

Total

Male

Female

Total

By employee level

Administrative staff

12

5

17

35

40

74

15

7

22

Technicians

11

6

17

135

30

165

39

3

42

Workers - other

30

2

32

150

23

173

42

9

51

Total

53

13

66

319

93

412

96

19

115

TERNA ENERGY GROUP

Annual Financial Report for the Year 2023

(Amounts in thousands of Euros unless otherwise mentioned)

58

7. Taxonomy Report

7.1 Article 8 Taxonomy Regulation

The Taxonomy Regulation (EU 2020/852, as amended) is a key component of the European Commission's action plan to redirect capital flows towards sustainable and inclusive growth. It represents an important step towards achieving climate neutrality by 2050, in line with the EU's climate goals, as the Taxonomy is a classification system for environmentally sustainable economic activities.

In the following section, we, as a non-financial parent entity, present the share of our group turnover, capital expenditure (CapEx) and operating expenditure (OpEx) for the reporting period 2023, which are associated with Taxonomy-aligned economic activities contributing to the first environmental objective (Climate change mitigation) in accordance with Art. 8 Taxonomy Regulation.

7.2 Our Activities

Overview

For details and tables see chapter 'Key performance indicators (KPIs) and accounting policies'.

Table 1 - Proportion of Taxonomy-eligible and Taxonomy-aligned economic activities in total turnover, CapEx and OpEx in FY 2023

FY 2023

Total ( TEUR )

Proportion of Taxonomy-eligible (non-aligned) economic activities (in %)

Proportion of Taxonomy- aligned economic activities (in %)

Proportion of Taxonomy- non- eligible economic activities (in %)

Turnover

327,831

0%

76%

24%

Capital expenditure (Capex)

224,497

0%

95%

5%

Operating expenditure (Opex)

28,468

0%

89%

11%

7.3 Definitions

Taxonomy-eligible economic activity is an economic activity that is described in the delegated acts complementing the Taxonomy Regulation (EU 2020/852 as amended), namely the complementary delegated acts issued for the six (6) Environmental Objectives (EOs) of the Regulation (a) climate change mitigation; (b) climate change adaptation; (c) the sustainable use and protection of water and marine resources; (d) the transition to a circular economy; (e) pollution prevention and control; (f) the protection and restoration of biodiversity and ecosystems, irrespective of whether the economic activity meets the Technical Screening Criteria (TSC) of substantial contribution and Do No Significant Harm (DNSH) defined in these acts for each EO of the Taxonomy.