TRANSLATION

Climate change (E)

In our double materiality assessment, we identified the following material impacts, risks, and opportunities related to climate change (E1 standard):

Risk	Uncertainty related to weather conditions poses a risk to electricity availability, consumed volumes, and pricing.
Risk	Extreme weather events caused by climate change may have an impact on energy production and distribution.
Negative impact	The operations of the Vaasan Sähkö Group and its value chain generate greenhouse gas emissions.
Opportunity and posivite impact	The increase in the supply of renewable energy raises the need for energy storage solutions and for optimizing energy use. These investments offer opportunities to increase sales and profitability while also reducing emissions.
Opportunity and posivite impact	The electrification of society and the transition to low‑carbon energy offer new business and investment opportunities, while at the same time enabling emissions reductions.
Opportunity and risk	Investments in sustainable new technologies present financial opportunities, but also carry a risk of investment failure.
Risk	The use of biofuels and combustion involves a risk related to uncertainty in future regulation.
Opportunity and positive impact	Improving energy efficiency has a positive environmental and economic impact.

The double materiality assessment examines two perspectives simultaneously: which sustainability matters are material from the perspective of the company’s business, and what significant impacts the company’s activities have on people and the environment.

Transition plan for climate change mitigation

(E1-1) 

The first version of Vaasan Sähkö’s transition plan for climate change mitigation was completed in 2025. The transition plan includes annual emissions reduction targets and the key actions to achieve them, with a particular focus on electricity and district heating production at facilities with long operational lifetimes.

Targets and target setting

In developing the transition plan, Vaasan Sähkö assessed both the activities that generate the most significant greenhouse gas emissions and the areas where emissions reductions can be achieved most effectively. This assessment covered the Group’s own operations as well as electricity and district heating production associated with equity interests and procurement agreements.

As the majority of the Group’s emissions are classified as Scope 3 emissions, their role in achieving the emissions reduction targets was considered critical. At the same time, identifying emissions reduction measures within the Group’s own operations was regarded as important, as these are areas where the company has the most direct control and influence.

Based on this analysis, the transition plan sets the targets of carbon‑neutral base production by 2030 and net‑zero emissions by 2050.

targets

Carbon‑neutral base production 2030

• The target focuses on four electricity and heat‑producing facilities fully owned by EPV Energia:
  • the combined heat and power (CHP) plants in Vaasa, Seinäjoki and Tornio, as well as the Westenergy waste‑to‑energy plant.
• The target is based on close cooperation with both internal and external stakeholders.
• A significant reduction in carbon dioxide emissions from base electricity and heat production will substantially decrease Vaasan Sähkö’s value chain emissions under Scope 3.

Net‑zero emissions 2050

• Net-zero target refers to a state in which the net amount of greenhouse gas emissions generated by the undertaking’s activities is zero.
• In other words, greenhouse gas emissions released into the atmosphere are balanced by an equivalent amount of emissions removed.
• The target covers greenhouse gas emissions beyond carbon dioxide and includes Scope 1, Scope 2 and Scope 3 emissions in accordance with the GHG Protocol.
• The primary means of achieving the target is the reduction of the undertaking’s own greenhouse gas emissions. As a secondary measure, the most residual and hard-to-abate emissions are addressed through carbon removals or compensation mechanisms, in line with applicable standards.
• Achieving the target requires system-wide optimization, investments and changes in operations and the value chain.
  

Decarbonisation roadmaps for electricity and district heating production

Risk identification, scenario and resilience analysis 

(E1-2, E1-3) 

As part of the transition plan for climate change mitigation, a climate risk analysis was conducted in 2025. The analysis assessed climate‑related risks from the perspectives of location, infrastructure, the value chain, and different climate scenarios.

Vaasan Sähkö’s climate scenario analysis primarily draws on publications by the Intergovernmental Panel on Climate Change (IPCC) and the Finnish Meteorological Institute, and examines modelled outcomes representing two extreme ends of climate scenarios.

• Scenario 1: Successfull transition
  • Climate actions and targets in line with the Paris Agreement are successfully implemented
  • Global warming is halted and average temperatures begin to decline
  • This scenario requires ambitious climate action and strong international cooperation.
• Scenario 2: Unsuccesfull transition
  • International climate action remains limited
  • The objectives of the Paris Agreement are not achieved, global temperatures continue to rise, and climate change significantly reshapes environmental conditions and living environments.

risk types

In the climate analysis, climate‑related risks are assessed across different time horizons and at various
points along the value chain. For the purposes of the analysis, risk types are categorized
into transition risks and physical risks as follows:

Transition risks

• Energy regulation
• Increase in electricity prices
• Increase in district heating prices
• Increase in raw material and production costs
• Increase in internal costs
• Increased costs for suppliers related to the transition to green energy
• Changes in the production and delivery costs of green energy
• Loss of revenue.

Fysical risks

• Physical damage to assets resulting from climate‑related events
• Decrease in revenue due to climate‑related events
• Supply disruptions
• Disruptions to production and operations.

Climate change mitigation and adaptation: policies and actions

(E1-4, E1-5) 

Vaasan Sähkö’s strategic objective guiding its operations is to achieve carbon‑neutral base production by the end of the 2020s and to phase out fossil fuels by 2030. As a result, electricity and heat production with long annual operating hours will no longer be based on fossil fuels as primary fuels. However, oil will continue to be used at the production facilities for specific purposes such as start‑up operations.

Central policies and actions

Investments in emission-free and renewable energy

The Group invests in wind and solar power as well as in other solutions that reduce carbon dioxide emissions from energy production.

Flexible and innovative energy solutions

Thermal energy storage facilities, electric boilers and sector coupling solutions increase the flexibility of the energy system and support the integration and utilisation of renewable energy.

Transition away from fossil fuels

The use of coal in district heating is being phased out and will be fully discontinued 2029 at the latest. Replacement solutions include, among others, biocarbon and the utilisation of waste heat.

Climate change adaptation and security of supply

Physical climate risks are addressed through investments in the reliability and resilience of energy production and distribution.

Targets

(E1-6) 

Vaasan Sähkö’s climate‑related targets and performance are presented in the table below.

Climate change

	Unit of measurement	Target year	Target value	2025
Carbon neutral base production	Carbon dioxide emissions from base production, tCO₂e	2030	19,747	169,136
Net-zero emissions	Target achieved, yes/no	2050	Yes	No
Commitment to SBTi targets	Committed, yes/no	2026	Yes	No

Energy consumption and energy mix

(E1-7) 

Vaasan Sähkö uses a range of different fuels in electricity and heat production. The energy sources used are presented in the table below.

Energy consumption, MWh

	2025
Total renewable sources	6,731
Total nuclear sources	15,205
Total fossil sources	35,359
– coal and coal products	0
– crude oil and oil products	6,779
– natural gas	0
– other fossil fuels	0
– electricity, heat, steam or cooling purchased or acquired from fossil sources	28,580
Total consumption	57,295

Fuel mix of electricity and district heating production

Electricity

Heat

 

greenhouse gas emissions

(E1-8)

GHG Protocol‑based calculation

Vaasan Sähkö calculates its greenhouse gas emissions in accordance with the Greenhouse Gas Protocol, applying a financial control approach to define organisational boundaries. Emissions are reported in carbon dioxide equivalents (CO₂e).

Greenhouse gases included

The calculation takes into account carbon dioxide (CO₂), methane (CH₄) and nitrous oxide (N₂O), as well as fluorinated gases, which have different impacts on the climate.

Coverage: Scopes 1–3

The calculation covers direct emissions from the Group’s own operations (Scope 1), emissions from purchased energy (Scope 2), and a significant share of emissions from the value chain (Scope 3).

Development

The emissions calculation is based on both measurement‑based and expenditure‑based data, and the coverage of Scope 3 emissions will be expanded in the coming years.

Greenhouse gas emissions

tCO₂e, or as otherwise reported	2025
Scope 1 greenhouse gas emissions
Gross Scope 1 greenhouse gas emissions	2,115
Share of Scope 1 GHG emissions covered by EU ETS (%)	75.7%
Scope 2 greenhouse gas emissions
Location‑based Gross Scope 2 greenhouse gas emissions	19,364
Market‑based Gross Scope 2 greenhouse gas emissions	19,286
Material Scope 3 greenhouse gas emissions
Total gross indirect Scope 3 greenhouse gas emissions	195,851
1 Purchased goods and services	12,030
2 Capital goods	5,877
3 Fuel‑ and energy‑related activities (not included in Scope 1 or Scope 2)	169,136
4 Upstream transportation and distribution	1,320
5 Waste generated in operations	6,177
6 Business travel	18
7 Employee commuting	62
11 Use of sold products	1,231
Total greenhouse gas emissions
Total greenhouse gas emissions, location-based	217,330
Total greenhouse gas emissions, market-based	217,252
Direct biogenic Scope 1 emissions	188

Carbon credits, internal carbon pricing and anticipated financial effects

(E1-9, E1-10, E1-11) 

• Vaasan Sähkö does not remove or compensate greenhouse gas emissions and did not use carbon credits in its own operations or value chain in 2025.

• The company is preparing a net‑zero target in line with the Science Based Targets initiative (SBTi), after which residual emissions will be compensated through permanent, approved carbon removal methods.

• Climate‑related risks and opportunities have been identified, and their anticipated financial effects will be assessed and reported in more detail in the coming years.

Biodiversity and ecosystems

(E4)

Vaasan Sähkö has identified biodiversity as one of the Group’s key sustainability themes. Electricity and heat production and distribution have both direct and indirect impacts on biodiversity and ecosystems across the value chain, in particular through:

• land and water use,
• infrastructure construction, and
• greenhouse gas emissions.

At the same time, the Group’s business is dependent in the long term on well‑functioning ecosystems and the ecosystem services provided by nature. Vaasan Sähkö is systematically developing its expertise and operating practices to identify, assess and manage impacts on biodiversity.

In our double materiality assessment, we identified the following material impacts, risks and opportunities related to biodiversity and ecosystems (ESRS E4):

Negative impact and risk

Different forms of energy production, as well as the construction and maintenance of electricity distribution and district heating networks, have impacts on biodiversity and are dependent on ecosystem services provided by nature.

Biodiversity and ecosystem transition plan

(E4-1) 

Vaasan Sähkö has not published a biodiversity and ecosystems transition plan as referred to in the ESRS E4 standard.

The aim is to prepare a biodiversity and ecosystems transition plan for Vaasan Sähkö and to publish it no later than in connection with the publication of the sustainability report for 2026.

The transition plan will be aligned with the Kunming–Montreal Global Biodiversity Framework and will include the Group’s key biodiversity‑related objectives, the main actions to achieve these objectives, as well as the financing of the plan, responsibilities and monitoring.

Biodiversity and ecosystems: policies and actions

(E4-2, E4-3) 

Vaasan Sähkö systematically develops the management of biodiversity as an integral part of its sustainability work. The Company identifies and manages its impacts on nature primarily by avoiding and mitigating impacts, and secondarily by restoring and enhancing ecosystems.

Key policies and actions

Identification of impacts and dependencies:

Vaasan Sähkö applies the TNFD LEAP approach to identify and assess its nature‑related impacts and dependencies. The Company reviews its activities across the entire value chain and from the perspective of the key drivers of biodiversity loss.

Siting and planning

Energy infrastructure is, where possible, located within existing built environments, and areas of high nature conservation value are avoided.

Energy production

Transitioning to renewable energy sources and a significantly reducing the use of fossil fuels.

Permits and assesments

Environmental impact assessments, authority cooperation, and permitting procedures form an integral part of all significant projects.

Targets

(E4-4) 

Vaasan Sähkö’s objective is to identify impacts on biodiversity and to better integrate biodiversity considerations into its daily operations, alongside the Company’s climate‑related efforts, by establishing biodiversity‑related targets, metrics, and actions to safeguard biodiversity

The Company’s objective is to develop the first version of a biodiversity‑related transition plan by spring 2027.

Vaasan Sähkö’s biodiversity‑ and ecosystem‑related targets and results are presented in the table below.

Biodiversity and ecosystems

	Unit of measurement	Target year	Target value	2025
Transition plan	Published/ complete/ incomplete	2027	Complete	Incomplete,
Promotion of energy efficiency in accordance with voluntary energy efficiency agreements	Progress in line with targets, yes/no	Annual	Yes	Yes, *)

Metrics

(E4-5) 

Climate change is one of the most significant drivers of biodiversity loss globally, and reducing emissions is a key means of mitigating its impacts on nature. Vaasan Sähkö’s climate targets and emission reduction measures are disclosed in accordance with ESRS E1 and are therefore not addressed separately within the biodiversity targets.

Biodiversity and ecosystems

	Unit of measurement	2025
Operational sites located in or near sensitive areas	Number (pcs)	*)
Bird diverters and markers installed on overhead power lines	Number during the year (pcs)	*)
Network infrastructure located in protected areas and Natura 2000 sites	Line length (km)	*)
Transition plan	Published/ complete/ incomplete	Incomplete
Promotion of energy efficiency in accordance with energy efficiency agreements	Progress in line with targets, yes/no	Yes