Environmental Matters

Georgia Capital has introduced and implemented energy-efficient solutions to further reduce energy consumption by conducting various activities across the Group and portfolio companies. Our portfolio companies continue to implement energy-saving solutions, such as LED lights and other energy-efficient equipment, such as boilers and heating ventilation and air conditioning systems. Details of environmental activities of our portfolio companies are set out in our Sustainability Report 2023.

Committing to the Net-Zero Initiative

Georgia Capital committed to the Net-Zero Initiative and expressed its willingness to reach Net-Zero across Scope 1 and 2 emissions at both GCAP HoldCo and portfolio company levels by 2050.

For details on environmental targets please refer to Sustainability Report 2023.

Emission Disclosure and Calculation Methodology

In preparing our emissions data, we use the World Resources Institute/World Business Council for Sustainable Development (WRI/ WBCSD), Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised edition 2016) as a reference source. We also use the most recent Georgian electricity conversion factor taken from the JRC Guidebook – “How to Develop a Sustainable Energy and Climate Action Plan in the Eastern Partnership Countries”, European Commission, Ispra, 2018, JRC113659. Further conversion factors are taken from the UK Government’s “Greenhouse Gas Conversion Factors for Company Reporting 2023”. GCAP's energy consumption is disclosed in line with UK SECR requirements. The emissions disclosures are also prepared in accordance with the TCFD requirements and the requirements of section 414 of the Companies Act.

The operations of Georgia Capital in London and Tbilisi itself have relatively low energy consumption. However, we recognise the evolving significance of emissions disclosures in the investment community and in line with our commitment to increasing transparency, we voluntarily disclose emissions for JSC Georgia Capital (intermediate Georgian holding company) and its portfolio investments. We have reported on all the emission sources listed under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 and the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (Scopes 1 and 2). Additionally, we have reported on those emissions under Scope 3 that are applicable to our businesses’ direct operations. All reported sources fall within our financial statements. We do not have responsibility for any emission sources that are not included in our financial statements.

For details on emission disclosure and calculation methodology please refer to Sustainability Report 2023.

Task Force on Climate-Related Financial Disclosures (TCFD)

The TCFD disclosures have been prepared in line with the all-sector guidance and, where applicable, reflect the supplementary recommendations for the asset managers. In the disclosures, we present the Company’s perspective on four core pillars of governance, strategy, risk management and metrics and targets related to climate-change mitigation. Please see our Sustainability Report 2023 for further details.

Issuance of US$ 150 million Sustainability-linked bond

In 2023, JSC GCAP successfully issued a US$ 150 million SLB on the Georgian market. The issuance of the bond represents the largest-ever corporate bond offering in Georgia, and the first of its magnitude and kind in the region.

Georgia Capital has established a SLB Framework in partnership with an international sustainable finance advisor, HPL.LLC. Under the framework, GCAP intends to decrease its GHG emissions by 20% by 2027 compared to a 2022 baseline. The SLB target is in line with GCAP’s overarching commitment to reaching Net-Zero at Group level by 2050 and it contributes to the UN Global Compact’s SDGs 7 (Affordable and Clean Energy) and 9 (Industry, Innovation and Infrastructure).

The issuance of SLB represents a significant strategic milestone for GCAP, as it will support climate change mitigation, natural resources conservation and pollution prevention, thereby contributing to the transition towards a more sustainable and lower-carbon economy in Georgia. 

Please see our Sustainability Report 2023 for further details.