Grigeo Group AB
CONSOLIDATED MANAGEMENT REPORT AND
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2
TABLE OF CONTENTS
Translation note: This version of the accompanying documents is a translation from the original, which was prepared in Lithuanian. All possible
care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of
information, views or opinions, the original language version of the accompanying documents takes precedence over this translation.
CEO’S FOREWORD .................................................................................................................................................. 3
CONSOLIDATED MANAGEMENT REPOR ............................................................................................................ 4
1. BUSINESS MODEL .............................................................................................................................................. 5
1.1. The future is circular ...................................................................................................................................... 6
1.2. Scale of organization in 2025 ........................................................................................................................ 7
1.3. Our mission and values ................................................................................................................................. 8
2. OVERVIEW OF OPERATIONS ............................................................................................................................ 9
2.1. Executive summary of 2025 .......................................................................................................................... 9
2.2. Financial and operating performance of the Group and the Company ....................................................... 10
2.3. Employees ................................................................................................................................................... 11
2.4. Risk management ........................................................................................................................................ 12
3. GROUP COMPANIES ........................................................................................................................................ 13
4. DATA ON THE ISSUER’S SECURITIES ........................................................................................................... 15
4.1. Contracts with intermediaries of public trading in securities ....................................................................... 15
4.2. Main characteristics of the Company’s shares ............................................................................................ 15
4.3. Trade in the Company’s shares .................................................................................................................. 15
4.4. Capitalisation of the Company’s shares ...................................................................................................... 16
5. CORPORATE GOVERNANCE REPORT .......................................................................................................... 17
5.1. Significant direct or indirect ownership interests ......................................................................................... 17
5.2. Rules regulating the election and replacement of the management and supervisory bodies ..................... 17
5.3. Management and supervisory bodies ......................................................................................................... 19
5.4. Functions and responsibilities of the management and supervisory bodies ............................................... 21
6. REMUNERATION REPORT .............................................................................................................................. 22
6.1. Remuneration policy .................................................................................................................................... 22
6.2. Remuneration paid to the management and supervisory bodies ................................................................ 23
6.3. Compliance with the Remuneration Policy .................................................................................................. 24
7. CONSOLIDATED SUSTAINABILITY REPORT .................................................................................................. 25
7.1. General information ..................................................................................................................................... 25
7.2. Environmental information ........................................................................................................................... 44
7.3. Social information ........................................................................................................................................ 67
7.4. Governance information .............................................................................................................................. 79
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS ........................................................................... 82
STATEMENTS OF FINANCIAL POSITION ........................................................................................................ 83
STATEMENTS OF COMPREHENSIVE INCOME .............................................................................................. 85
STATEMENTS OF CHANGES IN EQUITY ........................................................................................................ 86
STATEMENTS OF CASH FLOWS ..................................................................................................................... 88
NOTES TO THE FINANCIAL STATEMENTS .......................................................................................................... 89
STATEMENT OF COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE ........................................... 138
CONFIRMATION OF RESPONSIBLE PERSONS ................................................................................................ 153
INDEPENDENT PRACTITIONERS’ LIMITED ASSURANCE REPORT ON SUSTAINABILITY STATEMENT ..... 154
3
« Table of Contents
CEO’S FOREWORD
FOREWORD BY THE CEO
Looking at the financial results for 2025, we achieved
consolidated revenue of EUR 246.4 million, an increase of EUR
33.4 million compared to 2024. While the Group’s EBITDA
decreased by EUR 3.5 million year-on-year to EUR 31.3 million,
most of our businesses remained stable. The decline in EBITDA
was driven by unfavourable market trends in the corrugated
cardboard segment, which faced excess raw material supply and
stagnant consumption in Western Europe. Such market
dynamics had a direct impact on production volumes and
profitability; however, the agile adjustment of our operating
models enabled us to effectively manage the situation.
We continue to consistently pursue the Group’s sustainability
commitments. Following detailed calculations and scenario
assessments, we have set and submitted for approval our GHG
emissions reduction targets under the SBTi framework,
establishing a clear and science-based pathway to 2034. This
step reinforces the Group’s commitment to operate transparently
and responsibly, while supporting further investments in energy
efficiency, process modernization, and advanced technologies.
We expect a ruling from the Šiauliai Regional Court in 2026
regarding the environmental pollution incident involving one of
the Group’s companies, Grigeo Klaipėda AB. The company has
accepted responsibility and is committed to ensuring that any
environmental impact is fully addressed once its extent is
determined in accordance with European Union methodologies.
From the outset, Grigeo Klaipėda AB has also been actively
working to obtain the necessary approvals to remove pollutants
from the lagoon through targeted environmental remediation
measures as promptly as possible.
Our people are the key driver of our growth, and we are pleased
to increase wages year after year. In 2025, salaries across our
companies grew by 10.8%, remaining competitive with the
national average of 8.5%. As we expand our production capacity,
we welcomed 68 new colleagues to our teams this year. While
operating across multiple locations and countries, we are
committed to integrating all employees into a unified Grigeo
Group AB companies’ culture.
Looking ahead, 2026 will be a year of intensive preparation and
investment execution, with a strong focus on driving sales growth
and enhancing operational efficiency.
Tomas Jozonis
Chief Executive Officer of Grigeo Group AB
Dear Shareholders, Investors, and Partners,
2025 was a year of significant strategic
transformation for the Companies of Grigeo Group
AB. Despite a volatile macroeconomic environment
and ongoing market challenges, we pursued an
active growth strategy: we continued to invest in
production technologies, expanded the Group’s
structure, and consistently strengthened our
competitive advantage.
One of the year’s most significant achievements was
the acquisition of Huchtemeier Papier GmbH, based
in Dortmund, Germany. With long-standing
experience in the tissue paper segment and strong
partner trust, the newly acquired company will help
reinforce our position in Central and Western
Europe. Employing a team of over 50 professionals,
Huchtemeier Papier GmbH generates annual
revenues exceeding EUR 90 million, directly
contributing to the Group’s overall growth.
As part of the ongoing development of our tissue
paper business, we announced a landmark
investment program of EUR 106 million. In 2026, two
modern converting lines will be installed in Lithuania
and one in Poland. By 2029, we plan to commission
a new paper machine that will double our current
production volumes. We believe these investments,
together with strengthening commercial positions in
Germany, will ensure continued improvements in
product quality and enable us to better meet evolving
customer needs. Despite fluctuations in GDP
growth, this segment continues to demonstrate
stable year-on-year growth.
KONSOLIDUOTAS METINIS PRANEŠIMAS
MANAGEMENT REPOR
CONSOLIDATED MANAGEMENT REPORT
5
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
1. Business model
The Grigeo Group AB (hereinafter the “Company” or the “Issuer”) is the only paper and wood industry group of companies in Lithuania and one of the largest groups
in the Baltic countries. As at 31 December 2025, the Group consisted of the Company and thirteen subsidiaries as indicated below:
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« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
1.1. The future is circular
The Group operates following the principle of a circular economy. A part of paper used for the production of tissue
paper products and all raw materials designated for the production of corrugated cardboard, i.e., testliner (smooth
layered cardboard) and fluting (paper for corrugation and raw material for paper honeycomb), are produced by
recycling secondary raw materials, i.e., waste paper, thus contributing to the reduction of waste in Lithuania and
neighbouring countries as well as to the preservation of forests:
In the scope of its operational processes, the Group performs an almost complete cycle of processing of wood and
paper components, producing products with higher added value: tissue paper, i.e., toilet paper, tissues, paper towels,
paper to produce corrugated cardboard, honeycomb, corrugated cardboard and packaging, as well as solid
hardboard.
Corrugated cardboard packaging products are 100% recyclable, organic and biodegradable. The 2021 study
conducted by Graz University of Technology in Austria concluded that corrugated cardboard can be recycled up to 25
times. Corrugated cardboard packaging is currently one of the most recycled paper products and the market of
secondary raw materials is well established. Efficient recycling processes allow reusing fibre to produce new
packaging.
Production of recycled containerboard
Collecting, sorting and recycling of waste paper
- Used paper comprises 99% of all materials
- 120 710 tonnes recycled into raw material for
packaging
Production of tissue paper
- Recycling of white waste paper
- 26 727 tonnes recycled into tissue
paper
- 147 437 tonnes of waste paper recycled
- 82% of waste paper used for packaging production
Converting paper to packaging
- 26% of paper made by Grigeo Klaipėda AB is further converted
to corrugated cardboard in our packaging plants.
- We cooperated closely with our clients, 100% of our packaging
is custom-made.
- Reducing food waste: corrugated cardboard packaging is hygienic and storing
fruits and vegetables for longer periods.
- Corrugated cardboard packaging is cost-efficient and highly versatile which
allows optimisation of pace for transport and storage.
Significant role in logistics
7
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
1.2. Scale of organization in 2025
Consolidated revenue: EUR 246.4m
Consolidated EBITDA: EUR 31.3m
Consolidated net profit: EUR 16.5m
Employee remuneration fund: EUR 39.5m
Sponsorship provided: EUR 0.15m
25% Women
EMPLOYEES
MEMBERSHIPS IN ASSOCIATIONS
4 thous. t
51 thous t
20 thous .t
5 thous. t
339 GWh
74 GWh
59 GWh
6 GWh
153 GWh
147 thous. t
13 t
769 thous. m
3
73 thous. t
60 thous. t
71 thous. t
33 thous. t
6 thous. t
15 thous. t
8 thous. t
1 thous. t
32 thous. tCO
2
e
1 632 thous. m
3
969 thous. m
3
40 thous. m
3
Lithuania: 815
Poland: 160
Ukraine: 72
Germany: 45
Latvia: 18
13 thous t
37 thous. t
84 thous. t
2 thous. t
Biogas
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« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
1.3. Our mission and values
Our mission and areas of focus:
Responsible 360°
Agile
Whatever we do, let’s always think about the impact on our
environment because it’s our home.
We grow faster than the market.
The best measurement of our work is a satisfied client.
Even the best result can be better.
Working like for ourselves makes us proud with the work
done.
Every investor’s euro that is targeted makes us more
valuable.
Professional
Teamwork
A preconception is eliminated while considering proposed
ideas.
Good result is a merit of a good team.
Knowing everything is impossible – we improve by learning
and sharing a good practice.
The team is as strong as you are in it.
We speak the language of numbers and facts.
Before demanding from others, demand more from
ourselves.
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« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
2. Overview of operations
2.1. Executive summary of 2025
The Group’s revenue increased by EUR 33.4 million (16%). The Group’s EBITDA was lower by EUR 3.5 million (10%).
The Group’s EBT decreased by EUR 5.4 million (22%).
Indicator, EUR million
Group
2025
2024
Change
Revenue
246.4
213.0
16%
EBITDA
31.3
34.8
(10%)
Earnings before tax (EBT)
18.5
23.9
(22%)
In 2025, the Group turnover reached EUR 246.4 million (EUR 213.0 million in 2024).
The Group’s net profit amounted to EUR 16.5 million in 2025 (EUR 20.9 million in 2024). The Group’s profitability
ratios decreased due to increase of certain group of raw materials’ prices (the comparison of ratios is presented in
section 2.2).
More detailed information on reasons of these changes is presented in the table and explanations below according to
operating segments.
Revenue, gross profit, and gross margin of the business segments*:
Indicator, EUR
million
Tissue paper and
paper products
Wood hardboards
Raw materials for
corrugated
cardboard and
related products
Unallocated
TOTAL
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
Revenue
140.1
109.0
27.4
25.7
75.2
74.3
3.7
4.0
246.4
213.0
Gross profit
30.8
26.8
5.6
5.5
12.7
14.8
0.8
(1.7)
50.0
45.4
Gross margin
22.0%
24.6%
20.5%
21.3%
16.9%
19.9%
21.6%
-42.9%
20.3%
21.3%
*The data is presented after the elimination of the impact of transactions between the segments.
Segment of tissue paper and paper products
The segment's revenue in 2025 reached EUR 140.1 million, when compared to respective period of previous year,
increased by 28.6%. The gross profit of the segment amounted to EUR 30.8 million – 15.7% higher if compared to
the same period of the previous year. The gross margin of the segment decreased from 24.6% to 22.0%. Segment
profitability was mainly affected by increase of certain group of raw materials’ prices and changing structure of product
portfolio.
Segment of wood hardboards
In 2025, the segment’s revenue amounted to EUR 27.4 million and, when compared to respective period of previous
year, increased by 6.3%. The gross profit of the segment reached EUR 5.6 million and stayed at the same level when
compared to respective period of previous year. The gross margin has slightly decreased from 21.3% to 20.5%.
Raw materials for corrugated cardboard and related products
Over 12 months of 2025 the revenues of this segment exceeded previous year level and amounted EUR 75.2 million.
The gross profit of the segment reached EUR 12.7 million and, when compared to respective period of previous year,
decreased by 14%. The gross margin of the segment decreased from 19.9% to 16.9%.
163,2
203,2
195,4
213,0
246,4
12,4
10,6
25,3
20,9
16,5
2021 2022 2023 2024 2025
Rrevenue of the Group, EUR million Net profit of the Gruop, EUR million
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« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
2.2. Financial and operating performance of the Group and the Company
In 2025, the profitability indicators decreased due to higher prices in certain groups of raw materials. The liquidity and
capital structure ratios continue to proof the financial stability as well as low financial risk of the Group.
Indicator
Group
Company
2025
2024
2023
2025
2024*
2023
Revenue, EUR million
246.4
213.0
195.4
7.3
36.7
101.7
Net profit, EUR million
16.5
20.9
25.3
11.4
6.7
25.4
EBITDA, EUR million
31.3
34.8
38.9
2.2
8.0
28.0
EBIT, EUR million
19.0
23.8
29.4
11.6
7.6
28.4
Profitability ratios
Gross profit margin
20.3%
21.3%
26.4%
25.6%
24.5%
30.5%
EBITDA margin
12.7%
16.3%
19.9%
30.6%
21.9%
27.5%
EBIT margin
7.7%
11.2%
15.1%
159.0%
20.6%
27.9%
Net profit margin
6.7%
9.8%
13.0%
156.7%
18.4%
24.9%
ROE margin
12.4%
17.0%
23.6%
13.3%
8.0%
33.4%
ROA margin
8.7%
12.4%
16.9%
11.3%
6.4%
25.2%
ROCE margin
11.8%
16.6%
23.3%
13.1%
9.0%
31.7%
Liquidity ratios
Current ratio
1.49
1.83
2.45
0.88
0.93
2.46
Quick ratio
0.93
1.27
1.98
0.88
0.93
2.19
Capital structure ratios
Debt to equity ratio
0.47
0.39
0.35
0.17
0.18
0.31
Debt to total assets ratio
0.32
0.28
0.26
0.15
0.15
0.24
Market value ratios
P/E
9.04
6.63
5.69
13.15
20.45
5.67
Dividend pay-out ratio
47.5%
44.2%
26.0%
69.1%
136.3%
25.9%
Basic earnings per share, in EUR
0.126
0.158
0.193
0.086
0.051
0.193
Diluted earnings per share, in EUR
0.126
0.156
0.190
0.086
0.051
0.191
*On 1 May 2024 the Company transferred the tissue business to its subsidiary Grigeo Tissue UAB (more information
can be found in Nasdaq notification on material events at 30 April 2024).
The above-mentioned indicators have been calculated in accordance with the formulas recommended by Nasdaq
Vilnius AB:
EBITDA margin = EBITDA / sales revenue. EBITDA to revenue ratio shows the overview of operational efficiency and cash flows.
Gross profit margin = Gross profit / sales revenue. Gross profit margin shows the ability to earn profit from operating activity, control
the level of sales revenue and cost.
EBIT margin = Profit from operations / sales revenue. A monetary value of the coefficient shows operating profit to EUR 1 of sales.
A higher ratio shows higher profitability.
Net profit margin = Net profit attributable to shareholders / sales revenue. The ratio describes the profitability of the final total
operating result.
ROE margin = Net profit attributable to shareholders / average equity. This ratio estimates shareholders’ return on investment.
ROA margin = Net profit attributable to shareholders / average assets. The return on assets shows how effectively assets are used
to generate profit.
ROCE margin = EBIT / capital used. The used capital return shows income generated by each euro invested in the capital.
Current ratio = Current assets / current liabilities. The ratio shows the ability to cover current liabilities with current assets.
Quick ratio = (Current assets – Inventories) / current liabilities. Liquidity describing the ability to fulfil current liabilities from quickly
realisable current assets.
Debt to equity ratio = Liabilities / equity. The ratio estimates the combination of fund resources in the balance and compares funds
from owners and those that were borrowed.
Debt to total assets ratio = Liabilities / assets. The ratio shows the asset share financed from borrowed funds. The lower the value,
the more borrowings are covered with assets.
P/E = the market price of share / total of attributable profit. The ratio shows how much investors pay for one EUR of profit.
Dividend pay-out ratio = Dividends / Net profit attributable to shareholders. The ratio shows the portion of earnings paid out as
dividends.
Basic earnings per share = (Net profit – preferred stock dividends) / weighted average number of ordinary shares in circulation.
The calculated profit shows the earned net profit per share.
Diluted earnings per share = (Net profit – preferred stock dividends) / (weighted average number of ordinary shares in circulation
+ weighted average number of dilutive shares, i.e. shares that can be converted to ordinary shares). The calculated profit shows
the diluted net profit per share.
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« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
2.3. Employees
Increased number of the Group’s employees reflects workforce of newly acquired German company Huchtemeier
Papier GmbH (45 employees as at 31.12.2025). There were no significant changes in the number of employees in
other Group companies and natural staff turnover rates prevailed during the reported period.
The average salary in the Group increased for all categories of employees as compared to the year 2024. The growth
of the average salary was mostly driven by the consistent salary increase policy and recruitment of workers with higher
competences.
The number of employees in the Group and in the Company as at 31 December:
Employees
Group
Company
2025
2024
2025
2024
Total
1,110
1,042
53
52
The average salary in the Group and in the Company*, in euros:
Employees
Group
Company
2025
2024**
2025
2024**
Workers
2,536
2,296
Specialists
3,091
2,831
3,442
3,308
Management personnel
6,649
6,131
9,237
8,251
Total
3,113
2,810
5,529
4,910
*Information on the average salary does not include data of Mena Pak AT to show a more precise average salary in
the Group that is not affected by fluctuations in exchange rate of the Ukrainian hryvnia.
**The average salary for 2024 was adjusted to reflect the integration of newly acquired companies and structural
changes within the Group, ensuring the comparability of data.
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« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
2.4. Risk management
Environmental risk
The Group is constantly exposed to environmental risks during its manufacturing activities. To properly manage
environmental risks, ISO 14001 (Environmental Management System) has been implemented in all manufacturing
companies of the Group in Lithuania, the effectiveness of which is constantly monitored with the help of external
certification consultants.
The Group companies follow the integrated pollution prevention and control principles in its economic activities. The
Company rationally uses energy and natural resources through the application of modern production technologies
and technologies for the treatment of environmental components without worsening the quality of the products
manufactured.
Product risk
The Group's hygiene paper segment manufactures products that come into contact with food or are used as personal
hygiene products. For these reasons, the Group must apply the highest quality standards.
In 2020, Grigeo Tissue UAB was the first personal hygiene product manufacturer in Lithuania to receive an IFS HPC
quality certificate. It accredits that tissue paper products are manufactured in compliance with the highest quality and
safety standards and the products supplied to the market are safe to be in contact with food.
IFS HPC certificate is renewed on an annual basis.
In 2025, the Grigeo Tissue Sp. z o.o. tissue paper mill successfully obtained the international BRC Global Standard
certification, confirming that the company’s production processes meet the highest quality and safety requirements.
In 2024, Grigeo Packaging UAB received the international BRCGS Packaging Materials certificate. This confirms
that corrugated cardboard and packaging products are manufactured in accordance with the highest quality and
safety standards.
Climate change risk
The Group’s management is consistently strengthening the governance of climate related risks and opportunities by
integrating them into the overall Group risk assessment process and aligning with TCFD and ESRS principles. The
year 2025 marked a key preparation phase, as the Group aims to formally approve ambitious decarbonisation targets
in 2026 under the Science Based Targets initiative (SBTi).
Given that the largest share of the “Grigeo Group” GHG footprint comes from Scope 3 emissions related to raw
material extraction, production and logistics processes, our new targets encompass the entire value chain. To manage
transition risks, we actively engage suppliers and customers, develop transformation plans, and strategically invest in
energy efficiency and renewable energy solutions across the Group.
Risk of prices of raw materials
The situation in the raw material markets related to the paper and wood industry was volatile. In order to manage
this risk, the Group companies renewed annual supply contracts with the main suppliers of raw materials, ensuring
the necessary quantities of raw materials and linking prices to the relevant price indices.
Risk of prices of energy resources
In 2025, the Group companies renewed electricity, gas and biofuel supply contracts, focusing on the reliability and
flexibility of the selected partners, i.e. the ability to ensure the necessary energy resources and promptly respond to
market changes. Electricity prices remained at a similar level to 2024. In the market of natural gas, price growth trends
could be observed in 2025. Biofuel prices in the Lithuanian price zone of the Baltpool exchange remained largely
unchanged. Part of the electricity in the Group was produced by newly installed solar power generators on the roofs
of production buildings. In addition, the Group invests in new technologies that allow increasing energy efficiency and
at the same time reduce the need for energy resources.
Risk related to the process of financial reporting
The Company’s financial accounting is performed, and financial statements are prepared in accordance with the
requirements of International Financial Reporting Standards, as adopted by the European Union effective at
31 December 2025. The annual financial statements are audited by the independent auditors elected by the General
Meeting of Shareholders. Independence of the auditors is assessed by the Company’s Audit Committee. This
procedure guarantees the relevance and transparency of the data presented in the Company’s financial statements.
Financial risk
The information on financial risks and their management is disclosed in Note 3 to the consolidated and separate
financial statements.
13
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
3. Group companies
The Company has no branches or representative offices.
Status
Parent company
Subsidiary
Subsidiary
Company name
Grigeo Group AB
Grigeo Klaipėda AB
Grigeo Packaging UAB
Code
110012450
141011268
302329061
Authorised share capital
EUR 38,106,000
EUR 11,890,549.55
EUR 15,202,900
Profile of activities
Business and other
management consultancy
activities
Manufacture of raw material for
production of corrugated
cardboard
Manufacture of corrugated
cardboard and corrugated
cardboard products
Direct or indirect ownership
interest of Grigeo Group AB
The Company has not
acquired own shares
97.68%
100%
LEI code
529900YXT3CDTZGS0R43
64880O4VY4HF60K96D17
-
Address
Vilniaus g. 10, Grigiškės,
Vilnius City Municipality,
Lithuania
Nemuno g. 2, Klaipėda
Vilniaus g. 10, Grigiškės,
Vilnius City Municipality
Telephone
+370 5 243 5801
+370 46 39 5601
+370 5 243 5838
Fax
-
+370 46 39 5600
-
E-mail
group@grigeo.com
klaipeda@grigeo.com
packaging@grigeo.com
Website
https://www.grigeo.lt/en
https://www.grigeo.lt/en
https://www.grigeo.lt/en
Legal form
Public limited liability
company
Public limited liability
company
Private limited liability
company
Date of registration
23 May 1991
22 September 1994
10 April 2009
Manager of the register
State enterprise Centre of
Registers
State enterprise Centre of
Registers
State enterprise Centre of
Registers
Status
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Company name
Grigeo Tissue UAB
Grigeo Baltwood
UAB
Grigeo Recycling
UAB
Grigeo Recycling
SIA
Code
306639125
126199731
302529158
40203001091
Authorised share capital
EUR 76,000,000
EUR 4,000,000
EUR 2,960,000
EUR 500,000
Profile of activities
Production of tissue paper
Manufacture of uncoloured
hardboard and painted
hardboard panels
Collection of secondary
raw materials and
preparation of them for
recycling
Collection of secondary
raw materials and
preparation of them for
recycling
Direct or indirect ownership
interest of Grigeo Group AB
100%
100%
100%
100%
Address
Vilniaus g. 10, Grigiškės,
Vilnius City Municipality
Vilniaus g. 10, Grigiškės,
Vilnius City Municipality
Vilniaus g. 10, Grigiškės,
Vilnius City Municipality
Ēdoles iela 5, Riga,
Latvia
Telephone
+370 5 243 5801
+370 5 243 5900
+370 5 243 3393
+370 5 243 3393
E-mail
tissue.LT@grigeo.com
baltwood@grigeo.com
recycling.LT@grigeo.com
recycling.lv@grigeo.com
Website
https://www.grigeo.lt/en
https://www.grigeo.lt/en
https://www.grigeo.lt/en
-
Legal form
Private limited liability
company
Private limited liability
company
Private limited liability
company
Private limited liability
company
Date of registration
1 December 2023
10 April 2003
16 July 2010
16 June 2016
Manager of the register
State enterprise Centre
of Registers
State enterprise Centre
of Registers
State enterprise Centre
of Registers
Register of Enterprises
of the Republic of Latvia
14
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Status
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Company name
Mena Pak AT
Grigeo Paper
Packaging UAB
Naujieji Verkiai UAB
Grigeo Hygiene UAB
Code
00383260
302416687
300015674
302674488
Authorised share capital
UAH 4,011,470
EUR 19,329,776
EUR 28,962
EUR 97,200,000
Profile of activities
Manufacture of corrugated
cardboard and corrugated
cardboard products
Investment activities and
management of companies
Construction and
development of real
estate; the company was
dormant in 2023
Investment activities and
management of
companies
Direct or indirect ownership
interest of Grigeo Group AB
100%
100%
100%
100%
Address
Koševovo g. 6, Chernihiv
region, Mena, Ukraine
Vilniaus g. 10, Grigiškės,
Vilnius City Municipality
Popieriaus g. 15, Vilnius
Vilniaus g. 10, Grigiškės,
Vilnius City Municipality
Telephone
+380 4644 21341
+370 5 243 5838
+370 5 243 5933
+370 5 243 5801
E-mail
menapack@ukr.net
paperpackaging@grigeo.com
info@grigeo.lt
hygiene@grigeo.com
Website
www.menapack.com.ua
https://www.grigeo.lt/en
-
https://www.grigeo.lt/en
Legal form
Public limited liability
company
Private limited liability
company
Private limited liability
company
Private limited liability
company
Date of registration
30 December 1993
10 July 2009
6 April 2004
7 October 2011
Manager of the register
Mena District State
Administration, Chernihiv
Region
State enterprise Centre of
Registers
State enterprise Centre
of Registers
State enterprise Centre
of Registers
More information on the German company Huchtemeier Papier GmbH acquisition can be found in Nasdaq
notification on material events at 2 October 2025.
Status
Subsidiary
Subsidiary
Subsidiary
Company name
Grigeo Tissue sp. z o.o
Energia Cieplna Niedomice
sp. z o.o
Huchtemeier Papier GmbH
Code
(KRS) 0001051685
(KRS) 0001051726
HRB 19842
Authorised share capital
85,888,050 PLN
5,000 PLN
25 000 Eur
Profile of activities
Production of tissue paper
Production of heat energy
Sales of hygienic paper
products
Direct or indirect ownership
interest of Grigeo Group AB
100%
100%
100%
Address
33-132 Niedomice, ul.
Niedomicka 45, Poland
33-132 Niedomice, ul.
Niedomicka 45, Poland
Gernotstraße 18, 44319
Dortmund, Vokietija
Telephone
+48 722 390 330
+48 14 888 9207
+49 231 4494 0
E-mail
tissue.PL@grigeo.com
EnergiaCieplna@grigeo.com
info@huchtemeier.com
Website
-
-
https://www.huchtemeier.co
m/eng/
Legal form
Private limited liability
company
Private limited liability
company
Private limited liability
company
Date of registration
9 August 2023
9 August 2023
1895
Manager of the register
KRS
KRS
The German company
register
The transactions between related parties are disclosed in Note 30 to the financial statements.
15
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
4. Data on the Issuer’s securities
The ordinary registered shares of Grigeo Group AB are listed on the Baltic Main List of Nasdaq Vilnius Stock Exchange
(ticker symbol of the Company's shares is GRG1L).
During 2025 1,420,000 shares of the Company have been granted to employees of the Company and its
subsidiaries free of charge through the issuance of new shares. The newly issued shares were fully paid for out of
the reserve established by the Company for the purpose of granting shares. More information can be found in
Nasdaq notification at 29 August 2025.
The Company and the companies of the Group did not purchase own shares during the reporting period and have no
such shares acquired.
4.1. Contracts with intermediaries of public trading in securities
The Company has signed a contract with Artea Bankas AB (telephone No +370 610 44447, info@artea.lt) on payment
of dividends to the shareholders for the previous financial years.
The Company has signed a contract with FMĮ Orion Securities UAB (A. Tumėno g. 4, Vilnius, tel. +370 5 231 3833,
info@orion.lt) on the bookkeeping of securities issued by the Company and on market making activities.
4.2. Main characteristics of the Company’s shares
Type of shares
Securities’
ISIN code
Number of shares,
units
Par value, EUR
Total par value, EUR
Ordinary registered
shares
LT0000102030
132,820,000
0.29
38,517,800
4.3. Trade in the Company’s shares
Reporting
period
Price, EUR
Turnover, EUR
Total turnover
Max.
Min.
Last
session
Average
Max.
Min.
Last
session
Units
EUR
2022
0.944
0.650
0.704
0.782
160,293
97
3,831
3,278,619
2,564,490
2023, Q1
0.860
0.710
0.860
0.823
300,835
320
654
994,544
818,344
2023, Q2
0.906
0.838
0.894
0.879
57,063
318
4,655
593,794
521,829
2023, Q3
0.950
0.884
0.946
0.927
52,027
121
4,532
802,325
743,660
2023, Q4
1.105
0.912
1.095
0.996
397,140
2,269
10,367
2,241,728
2,233,520
2023
1.105
0.710
1.095
0.932
397,140
121
10,367
4,632,391
4,317,354
2024, Q1
1.130
1.040
1.125
1.097
36,374
868
1,521
565,648
620,687
2024, Q2
1.130
1.030
1.030
1.089
736,317
353
6,288
1,333,222
1,452,309
2024, Q3
1.035
1.000
1.015
1.012
30,291
158
553
425,611
430,928
2024, Q4
1.080
1.010
1.050
1.025
102,051
591
13,452
594,697
609,280
2024
1.130
1.000
1.050
1.066
736,317
158
13,452
2,919,178
3,113,204
2025, Q1
1.095
1.055
1.080
1.073
41,168
123
5,367
461,042
494,620
2025, Q2
1.115
1.050
1.070
1.078
35,621
697
10,073
553,094
596,154
2025, Q3
1.180
1.040
1.040
1.099
103,066
279
67,339
954,045
1,048,518
2025, Q4
1.135
0.996
1.130
1.033
361,156
3,161
43,862
3,225,248
3,332,866
2025
1.180
0.996
1.130
1.054
361,156
123
43,862
5,193,429
5,472,158
16
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Price and turnover of shares over the period 01/01/2023 – 31/12/2025:
Share price benchmarked against the Baltic market index over the period 01/01/2023 – 31/12/2025:
4.4. Capitalisation of the Company’s shares
0
200
400
600
800
0,40
0,60
0,80
1,00
1,20
1,40
2023-01 2023-04 2023-07 2023-10 2024-01 2024-04 2024-07 2024-10 2025-01 2025-04 2025-07 2025-10
turnover, EUR thousand share price, EUR
60%
80%
100%
120%
140%
160%
180%
2023-01 2023-04 2023-07 2023-10 2024-01 2024-04 2024-07 2024-10 2025-01 2025-04 2025-07 2025-10
OMX_Baltic_Benchmark_GI GRG1L - Grigeo
Last session date
Capitalisation, EUR
31/12/2022
92,505,600
31/03/2023
113,004,000
30/06/2023
117,471,600
30/09/2023
124,304,400
31/12/2023
143,883,000
31/03/2024
147,825,000
30/06/2024
135,342,000
30/09/2024
133,371,000
31/12/2024
137,970,000
31/03/2025
141,912,000
30/06/2025
140,598,000
30/09/2025
138,132,800
31/12/2025
150,086,600
17
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
5. Corporate governance report
The applied corporate governance code and information on compliance with the code are presented in the section
“Statement of compliance with the corporate governance code”.
5.1. Significant direct or indirect ownership interests
As at 31 December 2025, the number of shareholders of Grigeo Group AB was 5,190 (31 December 2024: 4,843).
There are no shareholders holding special controlling rights at the Company. There are no limitations of voting rights
at the Company. Moreover, the Company is not aware of any agreements between the shareholders, including those
under which a transfer of securities and / or voting rights could be restricted.
Shareholders holding more than 5% of the Issuer’s authorised share capital by the right of ownership as at 31
December 2025 and 31 December 2024 are presented in the table below:
Shareholder’s name, surname
(company’s name, type,
registered office address,
company code)
31 December 2025
31 December 2024
Number of
ordinary
registered
shares owned
by the
shareholder,
units
Ownership
interest, %
Voting
interest, %
Number of
ordinary
registered
shares owned
by the
shareholder,
units
Ownership
interest, %
Voting
interest, %
Ginvildos Investicija UAB*
Rukeliškių g. 21, Vilnius,
125436533
62,895,755
47.35
47.35
62,628,027
47.66
47.66
Irena Ona Mišeikienė
17,883,064
13.46
13.46
17,625,064
13.41
13.41
*67.00% of the shares of Ginvildos investicija UAB are held by Gintautas Pangonis, who is the ultimate beneficial
owner of the Company.
5.2. Rules regulating the election and replacement of the management and supervisory bodies
According to the Company’s Articles of Association, the Company’s bodies are the General Meeting of Shareholders,
the Supervisory Board (the collegial supervisory body), the Board (the collegial management body), and the Head of
the Company (the Chief Executive Officer). The Audit Committee is formed at the Company, which is the advisory
body to the Company’s Supervisory Board.
The Company’s objective is to ensure diversity of qualifications, professional experience and competences as well as
gender equality of the elected members of the management and supervisory bodies.
18
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
General Meeting of Shareholders
The shareholders of the Company exercise their rights through the General Meeting of Shareholders. The General Meeting
of Shareholders is the highest governing body of the Company, which adopts decisions in accordance with the Law on
Companies of the Republic of Lithuania and the Articles of Association of the Company. The competence of the General
Meeting of Shareholders includes, inter alia, the amendment of the Articles of Association of the Company; the approval of
the annual financial statements of the Company and the annual consolidated financial statements of the Group; the adoption
of a decision on the appropriation of profit (loss); the appointment and removal of the auditor or audit firm performing the
audit of the Company’s financial statements and the consolidated financial statements of the Group; the determination of
the terms of remuneration for audit services; as well as other competences provided for in the Law on Companies of the
Republic of Lithuania and the Articles of Association of the Company.
Shareholders of the Company entered in the Company’s register of shareholders by the record date, i.e. the fifth business
day prior to the General Meeting of Shareholders, shall have the right to attend the General Meeting of Shareholders and
to vote on matters within its competence.
Supervisory Board
The Supervisory Board consists of five members. The members of the Supervisory Board are elected by the General
Meeting of Shareholders for a period of four years as defined by the Articles of Association of the Company. The General
Meeting of Shareholders may recall the entire Supervisory Board or its individual members before the end of the term of
office of the Supervisory Board. In the election of the members of the Supervisory Board, each shareholder holds the number
of votes which is equal to the number of votes conferred by the shares held by them multiplied by the number of the
Supervisory Board members to be elected. The shareholder distributes these votes at his own discretion – in favour of one
or several candidates. The candidates who have collected the largest number of votes are elected. In case the number of
candidates who collected equal number of votes exceeds the number of vacancies on the Supervisory Board, a repeated
voting is organised during which each shareholder may vote only for one of the candidates who collected equal number of
votes. The Supervisory Board performs its functions for a period defined by the Articles of Association or until a new
Supervisory Board is elected but no longer than until the Ordinary General Meeting of Shareholders is held in the year in
which the Supervisory Board’s term of office ends. The number of terms of office of a member of the Supervisory Board is
unlimited.
More than a half of the Supervisory Board members must have no employment relations with the Company, at least 1/3 of
the Supervisory Board members must be independent and cannot be members of the Supervisory Board of the Company
for more than 10 years. The Supervisory Board or its members commence their activities after the end of the General
Meeting of Shareholders which elected the Supervisory Board or its members. The Supervisory Board is chaired by its
chairperson who is elected by the Supervisory Board from its members.
Audit Committee
The Audit Committee is formed at the Company, and it consists of three members. The Audit Committee is formed, and its
composition is approved by the decision of the Supervisory Board for the period defined therein but no longer than for four
years. Only a private individual may be a member of the Audit Committee. The Audit Committee must include at least one
Audit Committee member with knowledge of at least one of the following areas: finance, accounting, audit of financial
statements, or the sector in which the company operates; at least one member of the Audit Committee must have at least
three years’ working experience in accounting and (or) audit of financial statements. The Head of the Company and a person
who has held this position for the past five years may not be a member of the Audit Committee. More than a half of the Audit
Committee members must be independent members and may not serve as a member of the Company's Audit Committee
for a total of more than 12 years. The chairperson of the Audit Committee is elected by the members of the Audit Committee.
An independent member is elected to be the chairperson of the Audit Committee.
Board
The Company’s Board consists of five members. The Board is elected for a period of four years as defined by the Articles
of Association of the Company. The Board performs its functions for a period defined by the Articles of Association or until
a new Board is elected and starts to perform its functions but no longer than until the Ordinary General Meeting of
Shareholders is held in the year in which the Board’s term of office ends. The Board elects the chairperson of the Board
from its members. Only a private individual may be elected to be a member of the Board. The number of terms of office of
a member of the Board is unlimited. The Board or its members commence their activities after the end of the meeting of the
Supervisory Board which elected the Board or its members. The Supervisory Board may recall the entire Board or its
individual members before the end of their term of office.
Head of the Company
The Head of the Company (Chief Executive Officer) is elected, recalled and dismissed by the Board of the Company. An
employment contract is signed with the Head of the Company who starts to perform his/her duties from the election date,
unless otherwise provided for in the agreement signed.
Articles of Association of the Company
The General Meeting of Shareholders has the exclusive right to amend the Articles of Association of the Company subject
to the exceptions provided by the Law on Companies of the Republic of Lithuania. The Articles of Association of the
Company are amended following the procedure established by the Law on Companies of the Republic of Lithuania.
19
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
5.3. Management and supervisory bodies
Composition of the management and supervisory bodies
Name, surname
Position
Education
Term of office
Ownership
and voting
interest, %
Supervisory Board
Vilius Oškeliūnas
Independent Member,
Chairman
Vilnius University, BA and MA in
Economics
From 28 April
2023
until the General
Shareholders’
Meeting, to be
held in 2027
-
Marius Stankevičius
Member
University of Liverpool, MA in
Management of Information Systems
2.89
Ignas Degutis
Independent Member
ISM University of Management and
Economics, MA in Economics
-
Arūnas Pangonis
Member
Vilnius Gediminas Technical
University, MA in Industrial
Engineering
Indirectly*
Daiva Duksienė
Independent Member
Vilnius University, Economist
-
Audit Committee
Daiva Duksienė
Independent Member,
Chairwoman
Vilnius University, Economist
From 28 April
2023
until the General
Shareholders’
Meeting, to be
held in 2027
-
Ignas Degutis
Independent Member
ISM University of Management and
Economics, MA in Economics
-
Vilius Oškeliūnas
Independent Member
Vilnius University, BA and MA in
Economics
-
Board
Gintautas Pangonis
Chairman
Kaunas University of Technology,
Telecommunications Engineer
From 28 April
2023
until the General
Shareholders’
Meeting, to be
held in 2027
Indirectly*
Robertas Krutikovas
Member
Baltic Management Institute,
MA in Business Administration
From 30 May
2024 until the
general
shareholders’
meeting, to be
held in 2027
0.08
Vigmantas Kažukauskas
Member
Kaunas University of Technology,
Telecommunications Engineer
From 28 April
2023
until the General
Shareholders’
Meeting, to be
held in 2027
0.93
Saulius Martinkevičius
Member
Vilnius University, MA in Business
Administration and Management
0.34
Tomas Jozonis
Member
ISM University of Management and
Economics, BA in Management and
Business Administration; Vilnius
University, MA in Business
Indirectly*
Head of the Company
Tomas Jozonis
Chief Executive Officer
ISM University of Management and
Economics, BA in Management and
Business Administration; Vilnius
University, MA in Business
-
Indirectly*
*Ginvildos Investicija UAB holds 47.35% of the Company’s shares. 67.00% of shares of Ginvildos investicija UAB are owned by
Gintautas Pangonis, 10,00% by Arūnas Pangonis and 10,00% by Tomas Jozonis.
In the Company's Supervisory Board women represent 20% of the members, in the Audit Committee — 33%, and there are no
women presented in the Company’s Board. The terms of the Company’s Supervisory Board, Audit Committee, and Board will
expire in 2027.
20
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Participation of the management and supervisory bodies in the activities of other organisations
Name,
surname
Position
Name of the enterprise, institution and organization*
Vilius
Oškeliūnas
Chairman of the Supervisory Board,
Member of the Audit Committee
Grigeo Group AB
Wealth Manager
Gerovės Valdymas UAB (primary employment) (302445450)
Director, Board Member
Atelier Investment Management UAB (303335430)
Director
IM Investment UAB (302538424), Commody UAB (306224588)
Deputy Director
WB Invest UAB (305542673)
True Member
Gerovės Partneriai KŪB (304746185)
Board Member
Invalda Privatus Kapitalas AB (303075527), ETA projektai UAB (300657497), Liv in
LT UAB (305529989), V46 UAB (305621932)
Marius
Stankevičius
Member of the Supervisory Board
Grigeo Group AB
Shareholder
Didma UAB (151214459)
Shareholder
Statybų namai UAB (302527851)
Shareholder
Technikos namai UAB (302527762)
Ignas Degutis
Independent Member of the Supervisory
Board, Member of the Audit Committee
Grigeo Group AB
Independent Member of the Board
Amber Grid AB (303090867)
General Director
Vilniaus viešasis transportas (VVT) UAB (primary employment) (302683277)
Arūnas
Pangonis
Member of the Supervisory Board
Grigeo Group AB
Director
Hendrixon UAB (primary employment) (306660817)
Daiva
Duksienė
Independent Member of the Supervisory
Board, Chairperson of the Audit
Committee
Grigeo Group AB
Director
Amerigas UAB (126260725), Pasaulio skoniai UAB (305131273), TSMA-T UAB
(306068032)
Chief Financial Officer
Baltijos ir Amerikos terapijos ir chirurgijos klinika UAB (primary employment)
(110580798)
Gintautas
Pangonis
Director
Ginvildos investicija UAB (primary employment) (125436533)
Chairman of the Board
Grigeo Group AB
Board Member
Grigeo Klaipėda AB, Grigeo Packaging UAB, Grigeo Hygiene UAB, Grigeo Tissue
UAB, Grigeo Baltwood UAB, Grigeo Recycling UAB, Grigeo Paper Packaging UAB,
Naujieji Verkiai UAB
Member of the Supervisory Board
Mena Pak AT, Grigeo Tissue sp. z o. o., Huchtemeier Papier GmbH
Vigmantas
Kažukauskas
Board Member
Grigeo Group AB, Grigeo Klaipėda AB, Grigeo Baltwood UAB
Robertas
Krutikovas
Board Member
Grigeo Group AB, Grigeo Recycling UAB,
Chairman of the Board
Grigeo Klaipėda AB, Grigeo Packaging UAB
Member of the Supervisory Board
Grigeo Recycling SIA
Chairman of the Supervisory Board
Mena Pak AT
General manager
Grigeo Paper Packaging UAB (primary employment)
Saulius
Martinkevičius
Chief Procurement and Logistics Officer
Grigeo Group AB (primary employment)
Board Member
Grigeo Group AB, Grigeo Baltwood UAB, Grigeo Packaging UAB, Grigeo Klaipėda
AB, Naujieji Verkiai UAB, Grigeo Hygiene UAB, Grigeo Paper Packaging UAB
Member of the Supervisory Board
Mena Pak AT, Grigeo Tissue sp. z o. o., Huchtemeier Papier GmbH
Deputy Chairman of the Supervisory
Board
Grigeo Recycling SIA
General manager
Naujieji Verkiai UAB
Tomas Jozonis
Chief Executive Officer
Grigeo Group AB (primary employment)
Board Member
Grigeo Group AB
Chairman of the Supervisory Board
Grigeo Recycling SIA, Grigeo Tissue sp. z o. o., Huchtemeier Papier GmbH
Chairman of the Board
Grigeo Paper Packaging UAB, Grigeo Baltwood UAB, Grigeo Recycling UAB, Naujieji
Verkiai UAB, Grigeo Hygiene UAB, Grigeo Tissue UAB, Grigeo Packaging UAB
*Detailed contact information for the Group’s companies is presented in Note 3.
21
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
5.4. Functions and responsibilities of the management and supervisory bodies
Supervisory Board
The Supervisory Board discusses and approves the business strategy of the Company, elects members of the Board of the
Company and recalls them from their positions, adopts decisions regarding transactions with related parties, supervises the
activity performed by the Board and the Head of the Company, submits replies and proposals regarding the set of financial
statements, the proposed profit or loss appropriation and the annual report of the Company as well as the activity of the
Board and the Head of the Company to the General Meeting of Shareholders; and resolves other issues assigned to the
competence of the Supervisory Board by the Articles of Association of the Company, by the decisions of the General Meeting
of Shareholders regarding the supervision of the activities of the Company and its management bodies.
Audit Committee
The functions of the Audit Committee are to inform the Head or the supervisory body of the Company about the results of
the audit of the financial statements and to explain how this audit contributed to the reliability of the financial statements and
the role of the Audit Committee in doing that; to monitor the financial reporting process and submit recommendations for
ensuring the reliability thereof; to monitor the audit of the annual financial statements and the consolidated financial
statements; to review and monitor the independence of the auditors or the audit companies; to provide recommendations
regarding the appointment of statutory auditors or the audit companies; to submit opinions regarding the transactions
conducted by the Company with the related parties.
Board
The Board discusses and approves the Company’s annual and interim reports, the management structure of the Company;
elects and removes from the office the Head of the Company, sets his/her remuneration and other terms and conditions of
the employment contract; analyses and assesses the information submitted by the Head of the Company on the organisation
of the Company’s business activities, financial condition, the set of the Company’s annual financial statements, proposed
profit or loss appropriation and submits to the Supervisory Board and General Meeting of Shareholders together with the
responses and proposals in relation thereto and the Company’s annual report; analyses, assesses the draft business
strategy and information about the implementation of the Company’s business strategy submitted by the Head of the
Company and adopts other decisions assigned to the competence of the Board by the Law on Companies of the Republic
of Lithuania, the Articles of Association or the decisions of the General Meeting of Shareholders of the Company. The
Articles of Association of the Company provide for the following competence of the Board in addition to those provided by
the Law on Companies of the Republic of Lithuania: the Board discusses and approves the employee payment systems;
elects and recalls employees directly reporting to the Head of the Company, directors of the Company’s divisions, sets their
salaries, other terms and conditions of the employment contract, approves their job descriptions, allocates bonuses to these
employees; elects and recalls the accounting company providing accounting services to the Company, sets the conditions
of payment for the accounting services; approves the systems and procedures of bonuses, incentives to the employees
procedures; sets the non-current assets’ depreciation or amortisation rates and calculation methods applied in the Company.
Head of the Company
The Head of the Company – the Chief Executive Officer – organises the Company’s economic commercial business
activities. The Head of the Company has the right to unilaterally conclude transactions, except for the cases provided by the
Articles of Association of the Company where the Head of the Company may conclude transactions subject to the decision
of the Board of the Company to conclude such transactions. The Head of the Company is responsible for the organisation
of the Company’s business activities and for the implementation of its goals, preparation of the set of the annual financial
statements, preparation of the Company’s annual report, and for the fulfilment of other obligations provided by the Law on
Companies of the Republic of Lithuania and other legal acts as well as the Articles of Association of the Company.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
6. Remuneration report
On 28 April 2025, the General Meeting of the Shareholders approved the remuneration report of 2022.
The remuneration report presents information about the remuneration paid to each member of the management and
supervisory bodies of the Company (including but not limited to, all of its components, i.e., fixed and variable
remuneration, bonuses, extra pays and other benefits and taxes related to all payments or calculated benefits) by the
Company and any other entity within the Grigeo Group AB group.
The remuneration report includes personal data of the members of the management and supervisory bodies of the
Company (name, surname and other specified data) which is processed in order to enhance the Company’s
transparency, improve the accountability of the management and supervisory bodies, and monitor the remuneration
of the members of the management and supervisory bodies.
6.1. Remuneration policy
The Company’s remuneration policy (the “Remuneration Policy”), which was approved on 28 April 2025, is applicable
to the Head of the Company, members of the Board and the Supervisory Board. The Remuneration Policy is published
on the Company’s website www.grigeo.com/lt. The main provisions of the Remuneration Policy of the Company are
presented below.
Head of the Company
The remuneration to the Head of the Company consists of the fixed (base) monthly salary in the amount defined by
the Board of the Company, bonuses, and other benefits. By the decision of the Board of the Company, the Head of
the Company may be granted annual bonuses depending on the Company’s financial performance and calculated
following the bonus scheme approved by the Board of the Company. The amount of the annual bonus may not exceed
50% of the annual salary of the Head of the Company. Following the Rules for Granting Shares of the Company, the
Head of the Company may be remunerated by granting shares.
Board
A civil agreement on the provision of services is concluded with the member of the Board of the Company who has
no employment relations with the Company whereby a fixed monthly remuneration is set amounting to no more than
EUR 4,200 (before the applicable taxes). The member of the Board is paid an additional monthly remuneration for the
performance of the duties of the chairperson of the Board of the Company which cannot exceed 25% of the fixed
monthly remuneration agreed with the member of the Board in the agreement. No variable remuneration components,
bonuses or supplements are normally set to the member of the Board who has no employment relations with the
Company, and no remuneration is offered by granting shares, no specific remuneration criteria are predefined
depending on the financial and non-financial performance.
Тhe member of the Board who is the Company’s employee receives remuneration under the employment contract
signed with the Company. The remuneration of the member of the Board who is the Company’s employee consists
of a fixed (base) monthly salary, bonuses, and other benefits applicable to the employees of the Company. A specific
fixed (base) monthly salary is set by the Board of the Company. By the decision of the Board of the Company, a
member of the Board may be granted annual bonuses depending on the Company’s financial performance, calculated
in accordance with the bonus scheme approved by the Board of the Company. Following the Rules for Granting
Shares of the Company, the member of the Board who is the Company’s employee may be remunerated by granting
shares.
Following the procedure established by the Law on Companies of the Republic of Lithuania and by other legal acts,
by the decision and at the discretion of the General Meeting of Shareholders of the Company, the members of the
Board of the Company may be granted annual bonuses.
Supervisory Board
A civil agreement on the provision of services is concluded with the member of the Supervisory Board of the Company
whereby a fixed annual remuneration is set amounting to no more than EUR 4,800 (before the applicable taxes). In
case the member of the Supervisory Board has performed his/her activity for less than a calendar year, a proportionally
lower remuneration is paid thereto in view of the actual performance of the activity of the member of the Supervisory
Board. A member of the Supervisory Board shall be paid an annual additional remuneration of no more than 25% for
the performance of the duties of the Chairperson of the Supervisory Board of the Company, no more than 20% for
the performance of the duties of the member of the Audit Committee of the Company, and no more than 20% for the
performance of the duties of the Chairperson of the Audit Committee of the Company. No variable salary components,
bonuses or premiums depending on the Company’s performance are commonly set to the member of the Supervisory
Board, and no remuneration is offered by granting shares, no specific remuneration criteria are predefined depending
on the financial and non-financial performance.
Following the procedure established by the Law on Companies of the Republic of Lithuania and by other laws, by the
decision and at the discretion of the General Meeting of Shareholders of the Company, a member of the Supervisory
Board may be granted annual bonuses. In case annual bonuses are granted to a member of the Supervisory Board,
they also comprise the remuneration payable to the member of the Supervisory Board.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
6.2. Remuneration paid to the management and supervisory bodies
Position, name, surname
Reporting
period
Fixed salary component
Variable
salary
component
Share
options*
Total
remune-
ration
Fixed to
variable
salary ratio,
%
Base salary
Other
benefits
Chairman of the Board
(President until 06.05.2023)
Gintautas Pangonis
2025
156
-
-
-
156
100% / 0%
2024
130
-
-
-
130
100% / 0%
Member of the Board
(CEO from 06.05.2023)
Tomas Jozonis
2025
212
13
182
-
407
55% / 45%
2024
190
14
58
-
262
78% / 22%
Member of the Board
Saulius Martinkevičius
2025
135
6
44
87
272
52% / 48%
2024
125
3
41
-
169
76% / 24%
Member of the Board
Vigmantas Kažukauskas
2025
96
-
-
87
182
52% / 48%
2024
84
-
-
-
84
100% / 0%
Independent Member of the Board
Algimantas Variakojis (until 03.04.2024)
2025
-
-
-
-
-
0% / 0%
2024
11
-
-
-
11
100% / 0%
Member of the Board
Robertas Krutikovas (from 30.05.2024)
2025
162
7
69
109
347
50% / 50%
2024
154
7
58
-
219
73% / 27%
*In 2025, remuneration in the form of the Company’s shares was granted to the Members of the Board: Saulius
Martinkevičius, Vigmantas Kažukauskas, and Robertas Krutikovas. More information can be found in Nasdaq
notification at 29 August 2025.
During the reporting period, variable remuneration was not recovered.
The annual remuneration paid to the members of the management bodies of the Company as compared to the
Group’s performance and the average salary of the employees:
Position, name, surname
2021
2022
2023
2024
2025
Chairman of the Board
Gintautas Pangonis
207
223
390
130
156
Member of the Board, CEO
Tomas Jozonis
170
149
224
262
407
Member of the Board Saulius Martinkevičius
109
123
142
169
272
Member of the Board Vigmantas Kažukauskas
112
124
233
84
182
Independent Member of the Board Algimantas Variakojis
(until 03.04.2024)
30
30
38
11
-
Member of the Board Robertas Krutikovas
(from 30.05.2024)
219
347
The Group’s performance
2020
2021
2022
2023
2024
2025
EBITDA (-1 year)*
26,243
23,726
21,357
38,926
34,774
31,310
Average annual salary paid to full-time employees
2021
2022
2023
2024
2025
Average annual salary of the Group’s employees**
25.9
28.4
32.7
35.7
39.1
Annual remuneration of the Chairman of the Board
compared to the annual salary paid to a full-time employee
8.0
7.9
11.9
3.6
4.0
*The EBITDA ratio is presented in each case for the previous year as the results of operations are assessed based
on the previous year’s financial performance.
**The presented data is related to employees working in the Group companies operating in Lithuania who are not
members of the management and supervisory bodies of the Company.
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« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
The annual remuneration paid to the members of the supervisory body of the Company as compared to the Group’s
performance and the average salary of the Group’s employees:
Position, name, surname
2021
2022
2023
2024
2025
Chairman of the Supervisory Board, Member of the Audit
Committee Vilius Oškeliūnas
7.2
3.6
4.2
5.8
5.8
Member of the Supervisory Board, Member of the Audit
Committee Norimantas Stankevičius (until 06.05.2023)
8.7
4.4
4.9
-
-
Member of the Supervisory Board
Romualdas Degutis (until 06.05.2023)
6.0
3.0
4.0
-
-
Independent Member of the Supervisory Board, Chairwoman of
the Audit Committee Daiva Duksienė
8.4
4.2
4.2
5.6
5.6
Member of the Supervisory Board
Normantas Paliokas (until 06.05.2023)
6.0
3.0
4.0
-
-
Independent Member of the Supervisory Board, Member of the
Audit Committee Ignas Degutis (from 28.04.2023)
4.8
4.8
Member of the Supervisory Board
Marius Stankevičius (until 28.04.2023)
4.0
4.0
Member of the Supervisory Board
Arūnas Pangonis (until 28.04.2023)
4.0
4.0
The Group’s performance
2020
2021
2022
2023
2024
2025
EBITDA (-1 year)*
26,243
23,726
21,357
38,926
34,774
31,310
Average annual salary paid to full-time employees (EUR’000)
2021
2022
2023
2024
2025
Average annual salary of the Group’s employees**
25.9
28.4
32.7
35.7
39.1
*The EBITDA ratio is presented in each case for the previous year as the operating results are assessed based on
the previous year’s financial performance.
**The presented data is related to employees working in the Group companies operating in Lithuania who are not
members of the management and supervisory bodies of the Company.
6.3. Compliance with the Remuneration Policy
The remuneration received by the members of the Company’s management and supervisory bodies complies with
the approved Remuneration Policy.
Two out of five members of the Board of the Company are the Company’s employees holding the top-level
management positions at the Company. They receive the remuneration in the amount set by the Board under the
employment contract signed with the Company. The amounts of remuneration paid to the members of the Board who
are the Company’s employees are set in view of the qualifications and competence of each specific employee, the
scope of functions and responsibilities assumed within the Company, the aim to retain a specific person in the
Company’s top management position, motivate him/her to work in good faith, with due care, qualification and loyalty
for the Company to achieve the Company’s goals, and implement the Company’s strategy and interests, thereby
increasing the Company’s profitability and ensuring a consistent improvement of its financial performance in the long-
term perspective. Following the bonus system approved by the Board of the Company, annual bonuses were allocated
to the members of the Board of the Company who are the Company’s employees depending on the Group’s and/or
the Company’s financial performance. When allocating annual bonuses to the top-level employees, the Group’s and/or
the Company’s profitability and EBITDA are the main criteria that are taken into consideration when evaluating the
employees’ performance.
The monthly remuneration paid to the independent member of the Board is set in accordance with the provisions of
the Remuneration Policy and is provided for in the agreement signed with the member of the Board on the provision
of management activities/services subject to remuneration by the member of the Board.
The remuneration paid to the Head of the Company, members of the Board and the Supervisory Board of the
Company complies with the remuneration guidelines defined by the Remuneration Policy of the Company and enables
better accountability of members of the management and supervisory bodies to the Company and its shareholders
as well as encourages members of the management and supervisory bodies of the Company to focus on the long-
term goals and strategy rather than take high-risk decisions that may imply positive results only in the short-term.
25
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
7. Sustainability report
7.1. General information
ESRS 2 General disclosures
General basis for preparation of the sustainability statement (BP-1)
This report has been prepared in accordance with the requirements of the European Sustainability Reporting
Standards (ESRS), as well as other requirements set out in the legislation of the Republic of Lithuania.
This report demonstrates our efforts to consolidate the Group's impact and disclose the extent of the impact of our
business on people and environment and is prepared on a consolidated basis together with the financial report.
Information disclosure in segments. The Group consists of different business segments, therefore, where relevant,
information is presented according to the following business segments:
Segment
Group companies forming the segment
Abbreviation
Tissue paper and paper
products*
Grigeo Tissue UAB*, Grigeo Tissue Sp. z o.o., Energia
Cieplna Niedomice sp. z o.o, Huchtemeier Papier GmbH,
Grigeo Hygiene UAB, Grigeo Group AB*
Tissue paper
Wood hardboards
Grigeo Baltwood UAB
Hardboard
Raw materials for corrugated
cardboard and related products
Grigeo Packaging UAB, Grigeo Klaipėda AB, Mena Pak AT,
Grigeo Recycling UAB and Grigeo Recycling SIA
Containerboard
and packaging
*Grigeo Tissue UAB sells heat energy to the city of Vilnius. Where relevant, the data is disclosed in additional segment named “Sold heat”
accordingly.
Timeframe. Unless otherwise indicated, information represents 2025 calendar year, and data is accurate as at 31
December 2025. The reporting of employee and Health and Safety data reflects the situation at the end of 2025.
The definitions of periods used in the Sustainability Report are in line with ESRS standards:
• short-term: used in the financial statements as the reporting period;
• medium-term: from the end of the reporting period up to 5 years;
• long-term: more than 5 years.
Management involvement. The Board of the Company and the Audit Committee review this report before submitting
it to the annual general meeting of shareholders.
External assurance. The sustainability information presented in this report, prepared in accordance with the
requirements of the European Sustainability Reporting Standards (ESRS), has been subject to limited assurance
performed by Grant Thornton Baltic UAB in accordance with International Standards on Auditing.
Uncertainties. Due to the ongoing war and the high degree of uncertainty regarding future events, only the key
indicators related to the Group's operations in Ukraine, Mena Pak AT, are disclosed. This entity has not been included
in the double materiality analysis assessing impacts, risks and opportunities. The disclosed quantitative indicators
and monetary amounts are not characterized by a high level of measurement uncertainty.
Qualitative characteristics of information
Relevance. This report does not omit relevant information that substantively influences stakeholders’ assessments
and decisions, or that reflects significant economic, environmental, and social impact.
Faithful representation. We aim to cover both favourable and unfavourable results and topics in an unbiased
manner. Unless stated otherwise, all information provided is traceable to the accounting data. We strive for maximum
accuracy and present data on the basis of available accounting data, unless otherwise stated.
Comparability. Where relevant, our targets are measured against produced tons of products rather than absolute
values. Other information is reported in absolute figures, unless otherwise stated. We present results for at least two
years.
In October 2025, the Grigeo Group acquired a tissue paper company Huchtemeier Papier GmbH in Germany. Unless
otherwise stated, the figures for 2025 include the results of the newly acquired company.
In the 2025 report, slight adjustments have been done to the 2024 data in order to better meet the requirements of
the ESRS standards.
Verifiability When preparing the report, we aim that any data is documented in our systems and can be traced to
primary sources so that external auditors can review them, if needed.
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« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Understandability We aim to report in a concise way, avoiding abbreviations (or explaining them), in order that the
users with reasonable knowledge could easier understand the content of the report.
Disclosures in relation to specific circumstances (BP-2)
Specific circumstances related to the war in Ukraine. Due to Russia’s war against Ukraine and the resulting high
level of uncertainty, the Group presents only the baseline performance indicators of its subsidiary AT ‘Mena Pak’ in
this report. This company was not included in the double materiality assessment for identifying impacts, risks and
opportunities (IRO) in order to avoid unfounded projections regarding asset value and business continuity.
Value chain estimates and data quality. When collecting data on upstream and downstream activities, the Group
prioritises direct data from partners. In cases where primary data cannot be obtained (particularly when calculating
Scope 3 GHG emissions), generic factors from official databases (e.g., DEFRA, Ecoinvent) are used. Going forward,
the Group will systematically expand direct supplier engagement to obtain more of primary data.
The role of the administrative, management and supervisory bodies (GOV-1)
The administrative, management and supervisory bodies use internal resources (Sustainability Manager, CEO) and
external experts to acquire expertise in sustainability (including business ethics). Sustainability knowledge, resources
and external expertise are used to identify and assess the Group's material impacts, risks and opportunities, and to
develop a strategy that integrates sustainability themes into the Group's overall business strategy. The role of the
management and supervisory bodies in matters relating to business ethics is performed as required.
Composition and diversity of the members of the Group's administrative, management and supervisory bodies:
Value
Proportion of female and male board members
0:5
Percentage of independent board members
0%
Executive board members
2
Non-executive board members
3
Proportion of female and male members of the Supervisory Board
1:4
Percentage of independent Supervisory Board members
60%
Number of employee representatives on management and supervisory bodies
0
Sustainability matters, including business ethics, significant impacts, risks and opportunities, are discussed at ongoing
Board meetings on an as-needed basis, with additional strategic or other sessions as required to address the most
pressing issues related to sustainability.
No administrative, management or supervisory body or member has been assigned responsibility for overseeing and
reviewing the impacts, risks and opportunities (IROs) of sustainability matters, and these responsibilities are not
described in statutes, terms of reference or similar documents. This responsibility is assigned to the Group Finance
Manager.
Information provided to and sustainability matters addressed by the undertaking’s administrative,
management and supervisory bodies (GOV-2)
The targets set and results achieved for the material sustainability matters identified during the reviews of impacts,
risks and opportunities are consolidated at Group level and presented once a year to the Supervisory Board and the
Audit Committee. The quarterly results of each Group company are presented to the respective Boards of Directors.
Integration of sustainability-related performance in incentive schemes (GOV-3)
Sustainability matters (including climate-related aspects) are included in the variable remuneration incentive schemes
for all employees, including administrative and management bodies, according to need, job function and similar
considerations, and may vary from year to year. No variable remuneration is set for the members of the supervisory
bodies in accordance with the established remuneration policy.
Statement on due diligence (GOV-4)
Due diligence is the process by which a company identifies, prevents, mitigates and discloses how it manages actual
and potential negative impacts on the environment and on people affected by its activities. This includes negative
impacts related to the company's own operations and upstream and downstream parts of the value chain, including
through its products or services, as well as through its business relationships.
Identifying and assessing adverse impacts on people and the environment, involving affected stakeholders, taking
action to reduce adverse impacts on people and the environment, and monitoring the effectiveness of these efforts
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
are integral parts of due diligence. Due diligence is carried out within the Group every year and integrated into daily
management through the following processes:
• Impact identification and assessment: conducted through a double materiality assessment, an environmental
management assessment (ISO 14001), and Environmental Impact Assessment (EIA) procedures for
production sites.
• Taking action: board-approved action plans (X-matrices) and targeted investments in technology (e.g.,
anaerobic bioreactor, water pumping station) are used to manage and mitigate identified negative impacts.
• Stakeholder engagement: the Group maintains an ongoing dialogue with employees, suppliers, and
communities through surveys, public monitoring platforms, and consultations during EIA processes.
• Supply chain oversight: negative impacts in the upstream supply chain are monitored through supplier
sustainability questionnaires, audits, and compliance with the provisions of the Supplier Code of Conduct.
The table below shows how these due diligence elements are further detailed in the relevant sections of this report:
CORE ELEMENTS OF DUE DILIGENCE
PARAGRAPHS IN THE SUSTAINABILITY STATEMENT
a) Embedding due diligence in governance, strategy and business
model
ESRS 2 GOV-2, ESRS 2 GOV-3, ESRS 2 SBM-3
b) Engaging with affected stakeholders in all key steps of the due
diligence
ESRS 2 GOV-2, ESRS 2 SBM-2, ESRS 2 IRO-1, ESRS MDR-P
c) Identifying and assessing adverse impacts
ESRS 2 IRO-1, ESRS 2 SBM-3
d) Taking actions to address those adverse impacts
ESRS 2 MDR-A
e) Tracking the effectiveness of these efforts and communicating
ESRS 2 MDR-A, ESRS 2 MDR-T
Risk management and internal controls over sustainability reporting (GOV-5)
The Group's sustainability reporting and related work is managed by a dedicated sustainability unit. At the same time,
close cooperation is established with various departments (such as finance and accounting, HR, legal and other
departments and staff) to ensure the full implementation of the process.
Strategy, business model and value chain (SBM-1)
The strategy and business model are disclosed in section 1. Business model.
Value chain
The value chain encompasses the activities, resources, and relationships on which the company relies to create its
products or services – from their conception to delivery, use, and end‑of‑life. To understand where significant
sustainability impacts arise, we identified three main parts of the value chain. In the upstream stage, this includes
the supply of raw materials – suppliers providing recovered paper, wood, pulp, and biofuel for steam production, as
well as suppliers of electricity and natural gas. This stage involves the main indirect impacts on biodiversity and Scope
3 GHG emissions.
In the own operations stage (Group activities), six core activities are included: waste collection, steam generation,
hygiene paper production, cardboard base production, wood fibreboard production, and packaging manufacturing.
This stage generates direct environmental impacts – GHG emissions, water use, wastewater, and waste – as well as
impacts on people, including health and safety, working hours, training and skills development, and labour ethics
aspects such as the prevention of violence and harassment, and corruption and bribery risks.
In the downstream stage, the value chain covers distribution and logistics, where products are delivered to
customers, as well as customers and consumers – wholesale networks and end users. This stage also includes the
end‑of‑life phase, related to product recycling or disposal.
This structure helps systematically identify where in the value chain the impacts, risks, and opportunities (IRO) are
most significant. The specific locations of impacts are further detailed in the SBM‑3 sections.
The Company has applied the transitional provision under ESRS 1, paragraph 10.2, related to Section 5 “Value chain”,
and during the first three years (from 2024) does not disclose the full scope of value chain information required by
ESRS due to the extensive volume, significant resource needs, and challenges related to data availability. In 2025,
the Company focused on individual elements of the value chain, systematically collecting and analysing information
to ensure effective and targeted integration of value chain analysis into sustainability processes. Full disclosure of
value chain information in line with ESRS 1 requirements is planned for 2026.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Interests and views of stakeholders (SBM-2)
To gain a better understanding of stakeholder interests and views, we take the time and effort to identify key
stakeholder groups. Stakeholder interests and views are analysed annually at the Group's strategy sessions to review
the Group's long-term objectives. A structured overview of key stakeholder groups, communication channels and
expectations are presented in the table below.
Communication channels
Their expectations
What we strive to achieve
Clients
• Sales relationships.
• Regular business meetings.
• Collaboration through the full packaging
value chain.
• Quality control.
• Media.
• Site visits.
• Surveys.
• Packaging solutions that enable safe delivery
of our customers’ products.
• Packaging solutions that cut waste and
improve recyclability.
• Tissue paper quality.
• Operational efficiency.
• Water stewardship.
• Improved recycling process.
• Air and GHG emissions.
• Good reputation.
• Optimal, high quality, sustainable design
packaging.
• Creating and fostering circular economy through
efficient waste-paper collection and recycling
process.
• Proactively disclose our social and environmental
impacts including GHG emissions.
• Setting ambitious yet realistic sustainability
targets.
• Reporting consistently on our sustainability
efforts.
Investors
• Regular calls and in-person meetings.
• Business strategies.
• Financial returns.
• Risk mitigation.
• Audited annual reports.
• Public announcements via stock
exchange.
• Honest and transparent communication on our
sustainability efforts.
• Reducing reputational risk.
• Streamlining supply chains to reduce CO
2
emissions and minimise waste.
• Sustainable packaging innovations delivering
an attractive return on investment.
• Ensuring we do our part to address
environmental and social issues material to our
business.
• Generate financial return in a most transparent
way.
• Consistently reporting on our non-financial
results.
• Improving our ESG assessment.
Employees
• Safety programmes.
• Employee training.
• Company-wide communication.
• Involving employees in sustainability
reporting.
• Fostering involvement in setting
sustainability goals.
• Daily face-to-face meetings, surveys.
• Intranet.
• Feeling proud of the company they work for.
• Safety.
• Personal development.
• Fair and transparent compensation.
• Consistent career development.
• We ensure our employees are fully aware of our
role within the circular value chain.
• Exchange of talent and ideas across Group
operations to share best practice.
• Facilitate the sharing of best practices.
• Empowering our people to lead the circular
economy.
• Fostering high employee engagement so that our
people would be confident they can make real
changes.
Suppliers
• Negotiations.
• Request for information.
• Supplier sustainability audits.
• Quality control.
• Contract terms.
• Steady demand.
• Business continuity.
• Highest compliance standards for our suppliers.
• Transparent and fair procurement process.
• Promote responsible business best practices.
• We appreciate the possibilities of conducting
supplier sustainability surveys/audits.
Communities
• Economic and charitable relationships.
• Employee-led fundraising.
• Plant tours.
• Media.
• Meetings and presentations.
• Air and other types of emissions.
• Biodiversity.
• Fair neighborship.
• Economic impact and taxes paid.
• Community engagement.
• Sustainable and responsible business
practices.
• Water use and wastewater quality.
• Supporting local business ecosystems through
short supply chains.
• Proactively engaging with community
stakeholders to address water-related issues.
• Reducing our air emissions.
• Addressing odour issues.
• Enhancing our transparency.
Regulators
• Trade association meetings.
• Formal hearings.
• One-on-one meetings.
• Facility visits.
• Reports.
• Liaising with municipalities.
• Health and safety.
• Paper recycling and recovery.
• Taxes and environmental policy.
• Compliance.
• Fines and compensation.
• Legal processes.
• Biodiversity.
• Solving impending issues in the most sustainable
manner.
• Committing to meet or exceed legal
requirements.
• Educating policy makers on our commitment to
circular economy.
• Educating policy makers on the strategic/critical
importance of our recycling infrastructure on the
national level.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3)
The Group carried out a double materiality assessment to determine the impacts of its activities on the environment and society (impact materiality assessment), as well
as the sustainability‑related risks and opportunities that may have a financial effect (financial materiality assessment). The assessment was conducted in accordance
with the methodology described in section IRO‑1 and based on existing evaluations – for example, the environmental aspects analysis under ISO 14001, previous
materiality assessments, and the integrated risk management process. When assessing impacts, risks and opportunities, consideration was given to short‑, medium‑
and long‑term time horizons, as well as to the expectations of key stakeholders.
The identified material topics are presented in the table below.
Impact materiality
Financial materiality
Important
Significant
Critical
Critical
Significant
Important
Water withdrawal
Pollution of air
Energy
Energy
Climate change adaptation
Water withdrawal
Adequate wages
Water discharge
Pollution of water
Pollution of water
Climate change mitigation
Adequate wages
Work-life balance
Resources inflows
Health and safety
Health and safety
Pollution of air
Collective bargaining
Gender equality and equal pay
for work of equal value
Waste
Climate change adaptation
Waste
Training and skills
development
Working time
Diversity
Working time
Climate change mitigation
Water discharge
Water and sanitation
Corporate culture
Training and skills
development
Security-related impacts
Corruption and bribery
Measures against violence and
harassment in the workplace
Management of relationships
with suppliers including
payment practices
Water and sanitation
Corruption and bribery
Security-related impacts
Resources inflows
Protection of whistle-blowers
Management of relationships
with suppliers including
payment practices
The analysis showed that the Group’s most significant impacts, risks and opportunities arise from its operations in Lithuania, Poland, Latvia, Ukraine and Germany, and
that their links with the strategy and business model are clearly defined and consistently integrated into operational planning. The material topics are naturally reflected
in the Group’s main strategic directions:
• In the environmental area, priority is given to energy efficiency, emission reduction, pollution prevention and the optimisation of resource use. These aspects
are incorporated into investment plans and operational improvement programmes to reduce environmental impact and increase operational efficiency.
• In the social area, the focus is on employee well‑being, safety, competence development and a responsible supply chain. These factors are essential for
ensuring business continuity, attracting talent and creating long‑term value.
• In the governance area, transparency, ethics and anti‑corruption measures form an essential part of the Group’s culture and are integral to responsible business
practices and maintaining stakeholder trust.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Summary of material themes, impacts and impact effects:
Theme
Impacts
Impact effects
E1 Climate Change
Climate change adaptation, Climate change mitigation, Energy
Negative / Positive
E2 Pollution
Pollution of air, Pollution of water
Negative / Positive
E3 Water and marine
resources
Water discharge and withdrawal
Negative / Positive
E5 Circular economy
Resources inflows, Waste
Negative / Positive
S1 Own workforce
Adequate wages, Collective bargaining, Working time, Health and safety,
Gender equality and equal pay for work of equal value, Measures against
violence and harassment in the workplace
Negative / Positive
S1 Own workforce
Work-life balance, Training and skills development, Diversity
Positive
S3 Affected communities
Water and sanitation, Security-related impacts
Negative / Positive
G1 Governance
Corporate culture, Management of relationships with suppliers including
payment practices, Corruption and bribery
Negative / Positive
G1 Governance
Protection of whistle-blowers
Positive
The Group’s identified critically significant topics have different time horizons, which influence the Group’s strategy
and manifest across various parts of the value chain:
• Short term (up to 1 year): The greatest focus is on employee health and safety, as well as direct impacts on
water bodies. Risk assessments show that potential incidents (e.g., wastewater discharge into the
environment) represent actual or highly probable risks requiring continuous control. Alongside these risks, the
Group identifies opportunities to increase employee satisfaction and talent retention through a competitive
remuneration system and involvement in strategic projects. Increasing transparency through public monitoring
platforms also provides an opportunity to strengthen the Group’s reputation and stakeholder trust.
• Medium term (1–5 years): Risks related to energy and the climate transition dominate. It is expected that
tightening legislation and rising GHG-related taxes will have a direct financial impact on the Group’s cost
structure. At the same time, opportunities are planned to improve energy efficiency through investment
projects. The Group also sees significant potential to transition to renewable energy sources by implementing
the second phase of the solar power plant project and launching an anaerobic bioreactor, which enables the
production of biogas for internal needs and reduce dependence on natural gas. There is also an opportunity
to expand the circular economy model by increasing the collection and recycling volumes of recovered paper.
• Long term (over 5 years): Chronic physical climate risks are identified, such as changing precipitation
patterns and rising temperatures, which may affect production continuity and the availability of raw materials
(wood, biofuel) in the value chain. To manage these risks, opportunities arise to develop innovative,
lower-carbon products that meet growing customer expectations for sustainable packaging and hygiene
solutions. Compliance with sustainable forestry standards (e.g., FSC
®
) and EUDR requirements in the supply
chain also ensures long-term business resilience.
Sustainability is embedded in the Group’s strategy as a core element that enhances resilience to material impacts
and risks while enabling the Group to capture emerging opportunities in a dynamic business environment. The
outcomes of the materiality assessment – the identified material topics – were reviewed and evaluated for their
alignment with the objectives of the Group’s sustainability strategy and the action plans approved by the Boards of
the Group companies (X‑matrices). These material topics directly inform investment priorities, operational planning
and continuous improvement programmes. The assessment will be updated on a periodic basis to reflect changes in
the Group’s operations, regulatory developments and stakeholder expectations. In addition, following the integration
of ‘Huchtemeier Papier’ GmbH into the Group at the end of 2025, the double materiality assessment was reviewed,
updated and approved by the Group’s Board to ensure its continued relevance for the expanded Group structure.
The Group has not yet conducted an assessment of the resilience of its strategy and business model in relation to its
ability to address material impacts and risks and to realise the opportunities identified.
While the Group has identified a broad range of sustainability‑related impacts, risks and opportunities, the analysis
also showed that certain topics are not currently material to the Group’s own operations but remain relevant within
the broader value chain and stakeholder context. One such topic is biodiversity. The Group’s major biodiversity‑related
impacts arise not from its operations but within the value chain, particularly at the early stages of raw material sourcing.
The Group’s sites are not located within Natura 2000 protected areas, and direct impacts on habitats or endangered
species are not material. Nevertheless, the Group actively engages with suppliers, requiring compliance with FSC®
and other responsible forestry standards to ensure that raw material sourcing is conducted responsibly and with
minimal adverse effects on biodiversity.
Considering the full value chain, it is also important to note that consumers and end‑users constitute a relevant
stakeholder group. Their expectations are systematically assessed and integrated into product quality, safety and
responsible‑use principles. However, this topic is not currently material from either an impact or financial materiality
perspective. The Group nonetheless remains attentive to this stakeholder group and continuously monitors their
needs to ensure timely responses to evolving market and regulatory requirements.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement (IRO-2)
ESRS topic
Disclosure Requirement
Page
ESRS 2 General
disclosures
BP-1 General basis for preparation of sustainability statements
25
BP-2 Disclosures in relation to specific circumstances
26
GOV-1 The role of the administrative, management and supervisory bodies
26
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies
26
GOV-3 Integration of sustainability-related performance in incentive schemes
26
GOV-4 Statement on due diligence
26-27
GOV-5 Risk management and internal controls over sustainability reporting
27
SBM-1 Strategy, business model and value chain
27
SBM-2 Interests and views of stakeholders
28
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business
model
29-30
IRO-1 Description of the processes to identify and assess material impacts, risks and
opportunities
33-34
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement
31-32
MDR-P Policies adopted to manage material sustainability matters
35-36,
41-43
MDR-A Actions and resources in relation to material sustainability matters
37
MDR-M Metrics in relation to material sustainability matters
39-40
MDR-T Tracking effectiveness of policies and actions through targets
38
ESRS E1 Climate change
2 ETAS GOV-3 Integration of sustainability-related performance in incentive schemes
52
E1-1 Transition plan for climate change mitigation
2 ETAS SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
52-53
2 ETAS IRO-1 Description of the processes to identify and assess material climate-related
impacts, risks and opportunities
52
E1-2 Policies related to climate change mitigation and adaptation
53
E1-3 Actions and resources in relation to climate change policies
53-54
E1-4 Targets related to climate change mitigation and adaptation
54
E1-5 Energy consumption and mix
54-56
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
56-57
E1-7 GHG removals and GHG mitigation projects financed through carbon credits
57
E1-8 Internal carbon pricing
57
E1-9 Anticipated financial effects from material physical and transition risks and potential climate-
related opportunities
57
ESRS E2 Pollution
2 ETAS IRO-1 Description of the processes to identify and assess material pollution-related
impacts, risks and opportunities
58-59
E2-1 Policies related to pollution
59
E2-2 Actions and resources related to pollution
59
E2-3 Targets related to pollution
60
E2-4 Pollution of air, water and soil
60-61
E2-6 Anticipated financial effects from pollution-related impacts, risks and opportunities
61
ESRS E3 Water and
marine resources
2 ETAS IRO-1 Description of the processes to identify and assess material water and marine
resources-related impacts, risks and opportunities
62
E3-1 Policies related to water and marine resources
62
E3-2 Actions and resources related to water and marine resources
62
E3-3 Targets related to water and marine resources
62
E3-4 Water consumption
62-63
E3-5 Anticipated financial effects from water and marine resources-related impacts, risks and
opportunities
63
ESRS E5 Resource use
and circular economy
2 ETAS IRO-1 Description of the processes to identify and assess material resource use and
circular economy-related impacts, risks and opportunities
64
E5-1 Policies related to resource use and circular economy
64
E5-2 Actions and resources related to resource use and circular economy
64
E5-3 Targets related to resource use and circular economy
64-65
E5-4 Resource inflows
65
E5-5 Resource outflows
65-66
E5-6 Anticipated financial effects from resource use and circular economy-related impacts, risks
and opportunities
66
ESRS S1 Own workforce
2 ETAS SBM-2 Interests and views of stakeholders
67
2 ETAS SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
67
S1-1 Policies related to own workforce
67
S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns
67-68
S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material
risks and pursuing material opportunities related to own workforce, and effectiveness of those
actions
68
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities
68-69
S1-6 Characteristics of the undertaking’s employees
70
S1-8 Collective bargaining coverage and social dialogue
70-71
S1-9 Diversity metrics
71
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Grigeo Group AB, company code 110012450
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for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
ESRS topic
Disclosure Requirement
Page
S1-10 Adequate wages
71
S1-11 Social protection
71
S1-12 Persons with disabilities
71
S1-13 Training and skills development metrics
71-72
S1-14 Health and safety metrics
72-74
S1-15 Work-life balance metrics
74
S1-16 Compensation metrics (pay gap and total compensation)
74
S1-17 Incidents, complaints and severe human rights impacts
74
ESRS S2 Workers in the
value chain
2 ETAS SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
75
2 ETAS SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
75
S2-1 Policies related to value chain workers
75
S2‑3 Processes for remediation of negative impacts and channels for value chain workers to
raise concerns
75-76
S2‑4 Actions taken to manage material impacts and risks
76
S2‑5 Targets related to managing material impacts, risks and opportunities
76
ESRS S3 Affected
communities
2 ETAS SBM-2 Interests and views of stakeholders
77
2 ETAS SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
77
S3-1 Policies related to affected communities
77
S3-2 Processes for engaging with affected communities about impacts
77
S3‑3 Processes for remediation of negative impacts and channels for affected communities to
raise concern
77
S3-4 Taking action on material impacts on affected communities, and approaches to managing
material risks and pursuing material opportunities related to affected communities, and
effectiveness of those actions
78
S3‑5 Targets related to managing material negative impacts, enhancing positive impacts, and
managing material risks and opportunities
78
ESRS G1 Business
conduct
2 ETAS GOV-1 The role of the administrative, supervisory and management bodies
79
2 ETAS IRO-1 Description of the processes to identify and assess material impacts, risks and
opportunities
79
G1-1 Corporate culture and Business conduct policies and corporate culture
79-80
G1-2 Management of relationships with suppliers
80
G1-3 Prevention and detection of corruption and bribery
80-81
G1-4 Confirmed incidents of corruption or bribery
81
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Description of the process to identify and assess material impacts, risks and opportunities (IRO-1)
We are a vital infrastructure player in the circular economy, returning used paper and packaging to the manufacturing
cycle. We strive to integrate environmental, social and governance aspects into our business decisions. This ensures
that we properly assess risks, identify opportunities for more sustainable processes and meet growing market
demands.
By assessing impacts, risks and opportunities and their significance, we can identify and respond to stakeholder needs
and identify key topics. Some of these topics are critical to protecting and growing our revenues, while others have a
significant impact on our cost structure, supply chain and operational risks now and in the future.
We have assessed where the risks arise and/or could have an impact within our Group companies as well as in the
supply chain. Identified topics that involve key risks to the future and long-term success of the business and/or have
an impact on the people, the environment is considered to be highly important to the Group.
Material topics directly influence investment priorities, operational planning and improvement programmes. The
assessment is periodically updated to reflect changes in operations, regulation and stakeholder expectations.
Additionally, following the integration of Huchtemeier Papier GmbH into the Group at the end of 2025, the double
materiality assessment was reviewed, updated and approved by the Group’s Management Board to ensure its
relevance for the expanded Group structure.
Double materiality
Double materiality assessment is the starting point for sustainability reporting under the ESRS, assessing material
impacts, risks and opportunities. An important difference from the previous concept of materiality is that it considers
financial materiality as well as impact materiality. A sustainability matter becomes material if it meets the criteria for
one or both types of significance.
Stage 1:
- Context analysis – identifying and understanding the context of the organisation's activities, value chain and external
environment.
- Stakeholder identification and engagement – understanding stakeholder expectations and perceptions of the
organisation's impacts and risks.
- Identification of sustainability matters – understanding and identifying potentially material environmental, social and
governance aspects and assigning an equivalent ETAS theme and sub-theme.
One of the key steps in the second stage is to identify the impacts, risks and opportunities (IRO) arising from the
identified sustainability matter.
- The timeframe over which the IRO are likely to occur or have already occurred is identified: S – short time period –
reporting period of up to one year; M – medium time period – one to five years; L – long time period – more than 5
years.
- The status to be determined is actual (IRO already occurring and visible) or possible (IRO expected in the future).
- Determination of the impact effect: positive or negative (only in the impact assessment).
The IRO identification process uses sources already available within the Group, such as ISO 14001, ISO 45001, etc.
assessments, staff expertise, external sources. The assessment focuses on the Group's activities, but also includes
value chain IRO.
Stage 1
• Context analysis
• Stakeholders
• Sustainability
matters
Stage 2
• Impact assesment
• Risk assesment
• Opportunities
assesment
Stage 3
• Impact materiality
• Financial materiality
Stage 4
• Double materiality
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CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
The third stage is an assessment of the impact and financial materiality of the identified sustainability matters relevant
to the Group. Sustainability risks are integrated into the overall risk assessment process and are assessed on a
common basis with other risks. Impact and financial materiality assessments are also used.
Impact materiality
The assessment shall first take into account negative impacts (the scale, scope irremediable character and likelihood)
and, where appropriate, positive impacts (based on scale, scope and likelihood), and shall identify which sustainability
matters are material for reporting purposes, including relevant quantitative or qualitative thresholds and other
applicable criteria. Applicable thresholds:
• How severe are the negative or positive impacts on people and/or the environment (on a scale from 1 (minimal
or no impact) to 5 (Negative off-site impacts with long-term environmental/people impacts)).
• How widespread (on a scale from 1 (Enterprise/Group of Enterprises) to 5 (Global)).
• Whether the negative impacts can be remedied (on a scale from 1 (self-correcting impacts) to 5 (irreversible
impacts)).
• And for the potential impacts identified, over what timeframe the impact is likely to occur (on a scale of 1
(more than 5 years) to 5 (up to half a year)).
The assessments result in each sustainability issue being assigned one of four levels of significance: informative,
important, significant, critical, according to the thresholds assessed.
Financial materiality
For the financial impact assessment, quantitative thresholds, a level of importance and a probability of impact were
used.
• A qualitative assessment may be applied when evaluating the magnitude of the financial impact (on a scale
from 1 (up to 0.05% of revenue) to 5 (above 1% of revenue)), particularly in cases where quantification is
difficult.
• And for the potential financial impact identified, over what period of time it is likely to occur (on a scale of 1
(over 5 years) to 5 (up to half a year)).
As with the significance of impacts, each significant topic identified is assigned one of four levels of significance:
information, important, significant, critical, according to the thresholds assessed.
The assessment of impact and financial materiality is based on a range of assumptions, market practices, precedents,
expert insights and other relevant information.
The fourth stage is the identification of relevant topics.
An integrated assessment of impact and financial materiality is carried out to identify material topics for the Group.
Which may be material from an impact or a financial perspective, and some may be both.
When a sustainability topic is assessed as Critical, it is classified as one of the Group’s highest‑priority topics. These
topics are assigned targets and objectives and receive the greatest management attention. Topics assessed as
Significant or Important are considered relevant at the Group level; related data and processes are disclosed in the
report, and targets, policies or actions may also be defined. Topics falling into the Information category are relevant
to the Group but are not currently prioritised, and therefore are not disclosed.
Sustainability risks are not treated separately in the overall risk assessment process; all risks are evaluated in the
same way.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Policies adopted to manage material sustainability matters (MDR-P)
The Group’s policies are reviewed annually and updated by the responsible persons when necessary. They are
approved and amended by the Company’s Management Board. The primary scope of these policies covers our own
operations; however, in certain cases they may also apply more broadly — to stakeholders or specific parts of the
value chain. Policy guidelines related to value‑chain operations are further detailed in the Supplier Code of Conduct.
The Group's policies are publicly available and can be consulted at www.grigeo.com.
Group Environmental Policy
The Group's Environmental Policy describes the key principles and commitments of the Group with regard to
significant environmental aspects. The purpose of the policy is to disclose the Group's efforts to manage its significant
impacts, risks and opportunities related to environmental matters. This document is an integral part of the Group's
strategy, whose mission is to create a circular future. The Group's strategic commitments to its stakeholders include
a significant focus on efficient, more sustainable recycling and manufacturing processes, the production and
performance improvement of environmentally friendly products, responsible supply chain management, and improving
energy efficiency.
In order to minimise its environmental impact, the Group focuses on environmental areas where there are significant
(critical and/or major) impacts on both the Group and its stakeholders, and the policy describes the most important
aspects related to:
1. climate change (mitigation, energy efficiency, renewable energy),
2. pollution (air and water pollution, avoiding incidents and emergencies),
3. water resources (responsible management of water resources),
4. biodiversity and ecosystems (conserving natural resources, maintaining ecosystem balance),
5. resource use and circular economy (increasing the use of secondary resources, use of sustainable
renewable resources).
Group companies have adopted the ISO 14001 standard and, in line with its principles, maintain and strive to
continuously improve their integrated environmental management system.
The Group's environmental policy covers all relevant issues and the Group has not developed individual policies
(sustainable land use/agriculture, sustainable use of oceans/seas etc.).
Group Code of Ethics
The Code of Conduct guides stakeholders on the principles and values that the Group's companies follow in building
and maintaining relationships with the Group's partners (customers, suppliers, government authorities, etc.), the
behaviour expected of the Group's partners and the way in which they manage significant impacts related to
employees.
The Group respects and guarantees human rights and freedoms as defined in the Universal Declaration of Human
Rights of the General Assembly of the United Nations, the Council of Europe's Convention for the Protection of Human
Rights and Fundamental Freedoms, the conventions of the International Labour Organisation and other human rights
and freedoms recognised in international and national legislation. The Group does not use the labour of children under
the age of 16, nor does it work with suppliers and subcontractors who use the labour of children under the age of 16,
and it shall immediately cease working with suppliers and subcontractors if it becomes known that they use the labour
of children under the age of 16. The Group also does not use forced or compulsory labour.
The core values and principles described in the Code of Ethics and which we aim to implement are:
• Respect for human rights and freedoms;
• Transparency, integrity and anti-corruption;
• Avoidance of conflicts of interest;
• Respect for the environment and society.
These principles and values guide our activities and create a sense of responsibility towards society and the
environment. We are committed to continuously reinforcing and promoting these values both within our organisation
and in wider society.
The Group encourages diversity in its workforce and applies the same selection criteria and conditions for recruitment,
based on job-specific requirements, and provides the same working conditions and guarantees during employment
for all individuals, in accordance with the principles of gender equality and non-discrimination on other grounds.
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for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Group Occupational Safety and Health (OSH) Policy
The policy describes the basic principles of occupational safety and health and the Group's commitment to OSH. The
Policy is an integral part of the Group's strategy, whose mission is to provide employees with safe and healthy working
conditions, to eliminate hazards and reduce risks to occupational health and safety and to implement control measures
to prevent injuries and fatalities.
The Group's companies operate in accordance with the ISO 45001 Occupational Health and Safety Management
System standard, which enables companies to manage risk factors, react promptly to changes, and involve employees
in the improvement of the working environment.
Equal opportunities policy
The Equal Opportunities Policy is focused on ensuring that all employees have equal opportunities, regardless of their
gender, race, age, religious or other beliefs. The Group's corporate policies describe equal opportunities - in the
selection processes, pay and career development, and in the performance and termination of employment contracts.
This policy seeks to create an environment in which each employee is evaluated on the basis of his or her skills,
talents and performance, rather than on the basis of personal attributes that are not directly related to the job.
Employees or applicants for a vacancy who believe that their equal opportunities are being violated or that they are
being discriminated against have the right to file a complaint. This complaint shall be investigated within one month
of its receipt at the latest or shall be referred immediately to the Office of the Equal Opportunities Ombudsman.
Violence and harassment prevention policy
The policy describes how to identify and deal with violence and harassment, the forms it may take, the procedures for
reporting and dealing with reports, the measures to protect and assist whistleblowers and victims, the rules of conduct
for employees, and other preventive measures relating to potential violence and harassment in the Group's
companies.
The purpose of the Policy is to provide for and implement effective and efficient actions to protect employees from the
risk of violence and harassment. The policy covers various aspects, from education and information to procedures for
recording and handling cases. It aims to create a safe and respectful environment for all employees and to ensure
that the organisation adheres to the highest ethical and safety standards.
The policy applies to all employees, regardless of their position or type of employment contract.
The Group's policies on social aspects do not currently list specific measures to remedy human rights impacts or the
possibility of remedying them. The Group takes responsibility for identified human rights impacts and seeks to remedy
them in accordance with the procedures established by law.
Supplier code of conduct
The Supplier Code of Conduct sets out the values, principles and operational standards we expect from our suppliers.
Its purpose is to ensure fair, ethical and sustainable business conduct throughout the entire supply chain, including
suppliers, customers and other business partners. The Code defines key commitments in the areas of human rights
protection, employee health and safety, environmental impact reduction and responsible business practices.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Contributing to United Nations Sustainable Development Goals
As one of the largest groups of paper and wood industry companies in the Baltic countries, we aim to make a
significant contribution to the United Nations Sustainable Development Goals (SDGs). The SDGs define global
priorities and aspirations until 2030 with the mission of sustainable development of people and the planet. We have
identified the SDGs where we can contribute the most, both by reducing the negative impact and increasing the
positive impact on humanity and the planet:
SDG
SDG target
The activities and responsibilities of the Group
5.5
• Ensure that all employees and applicants for management
positions have equal opportunities.
• Track and disclose the percentage of women in leadership positions.
8.4
8.5
8.8
• Increasing the share of biofuel in the energy mix (Scope 1).
• Increasing the share of renewable packaging.
• Increasing waste-paper collection.
• Occupational Safety and Health (OSH) initiatives.
• Improving the TRI indicator (reduction of employee incidents).
9.4
• Evaporator of wastewater (Grigeo Baltwood UAB).
• Anaerobic bioreactor (Grigeo Klaipėda AB).
• Solar power plants.
12.2
12.4
12.5
12.6
• Reduce waste that is directed to disposal.
• Increasing waste-paper collection.
• Effluent reduction.
• Compliance with water cumulative pollution indicators.
• Preparation of annual sustainability reports.
13.2
• Reduction of GHG emission intensity (Scope 1).
• Increasing the share of biofuel in the energy mix (Scope 1).
• Solar power plants.
14.1
14.2
• Anaerobic bioreactor (Grigeo Klaipėda AB).
• Evaporator of wastewater (Grigeo Baltwood UAB).
• No direct entry of effluents into water bodies.
15.2
• Control of raw materials – ensuring that raw materials and biofuel
are supplied from sustainably managed forests.
• Supply chain traceability.
• Increasing energy efficiency.
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Grigeo Group AB, company code 110012450
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for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Tracking effectiveness of policies and actions through targets (MDR-T)
Commitments
The Group's business strategy includes non-financial targets and a sustainability agenda that are an integral part of
our overall strategy.
We consistently assess and review the Group's performance to ensure that we are focusing on critical topics and
significant impacts. All decision makers are actively involved in assessing the capabilities of our businesses to improve
the Group's performance. This report details our stakeholder and materiality assessment. The following sections are
dedicated to a detailed disclosure of the key resources, processes and ultimate impacts we use. Based on this data
and our experience in the business, we have been able to make corresponding sustainability commitments:
Agenda
Commitment
Direction
Environmental
Environment protection
Reducing our GHG emission intensity
Improving nature-and people-friendly product properties
Improving energy mix
Investing in energy efficiency
Promoting responsible collection of waste paper
Reducing chemical compound intensity
Wastewater quality management
Reducing disposable waste
Reliable supplier and partner
Responsible supply chain management
Reducing virgin plastic packaging consumption
Social
Meaningful activities based on trust
and cooperation
Accident-free workplace
Training and development
Pursuit of consistent feedback
Dialogue with local communities
Promoting healthier lifestyle of our employees
Governance
Ambition and transparency in the
market, ensuring competitive returns
Zero tolerance to compliance breaches
Increased transparency: sustainability reporting
Strong and widely accepted policies
Reliable supplier and partner
Supply chain transparency
The Group’s long‑term objectives are set during strategic sessions held by senior management, using the X‑matrix
as a strategic planning tool. The objectives cover the current Group strategy period through 2026. The Group has
established specific KPIs for its commitments, and sustainability objectives are integrated alongside other long‑term
strategic goals. These objectives are delegated to the managers of individual Group companies, who then cascade
them further to all employees – from department heads to specialists at all levels. At present, the established
objectives do not cover the entire value chain, as the focus remains on the operational boundaries of the Group’s
companies. Each year, we review the objectives, monitor progress and disclose results. However, in 2026 the Group
intends to update its long‑term sustainability commitments and targets, including setting new GHG reduction targets
in line with the Science Based Targets initiative (SBTi) methodology and expanding the scope to include the value
chain.
The current sustainability objectives are voluntary and cover activities carried out in the Baltic region. The target for
increasing the collection and sorting of recovered paper applies to waste collection operations. The wastewater
reduction target is relevant to production activities that generate wastewater: the manufacturing of tissue paper,
fibreboard and recycled paper. Other environmental targets, as well as all social and governance objectives, apply to
all activities carried out by the Group.
For the company acquired in Germany in Q4 2025, indicator monitoring began from the moment of acquisition. This
company is not yet included in the Group’s target monitoring framework, but it is planned to be incorporated in the
future. It is important to note that this company does not engage in tissue paper production – its activities are limited
to trading and interim warehousing of finished products. For this reason, some environmental indicators are not directly
relevant to its operations.
Our established objectives and the policies described are complementary instruments that help us not only meet
national environmental, social and governance requirements, but also pursue continuous improvement.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Metrics in relation to material sustainability matters (MDR-M)
The Group has committed to pursue the following targets*:
Target
Unit of measurement
No.
Base year
2021
Interim
result in
2024
Interim
result in
2025
Change
2025 vs
2021
Target for
2026
Environmental
targets
Reduction of GHG emission
intensity (Scope 1).
kgCO
2e
/ton of production
1.
114.1
115,2
115,3
+1,0%
-5.0%
Increasing energy efficiency
MWh/ton of production
2.
2.56
2,59
2,58
+0,9%
-3.0%
Reduce waste that is directed to
disposal
kg/ton of production
3.
53.0
41,1
36,1
-31,9%
-9.0%
Effluent reduction
m
3
/ton of production
4.
7.1
7,0
6,7
-5,9%
-17.0%
Increasing waste-paper
collection and sorting
In thousands of tons
5.
53.0
85,5
85,9
+62,0%
+50.0%
Social
targets
Reduce the number of accidents
at work
TRI ratio (number of incidents among
employees per 1 million hours worked)
6.
17.1
18,2
8,6
-8,5
8.0
Employee turnover
The ratio of retired employees to the
average number of employees
7.
30.8%
20,7%
19,3%
-11,5pp
22.0%
Employee retention rate
Employees with 1+ years’ service to
total employees
8.
85.7%
89,3%
90,2%
+4,5pp
91.0%
Governance
targets
We have identified 10 internal
policies, which we will update or
create, aiming for greater
compatibility with the Group's
strategy, sustainability
requirements and modern
practices.
Number of policies
9.
-
10
11
11
10
* In 2026, the Group intends to update its long‑term sustainability commitments and targets, including setting new GHG emission reduction goals in line with the Science Based Targets initiative
(SBTi) methodology.
Comments on progress
1. GHG emissions. In 2021, the Polish company had not yet been established, and therefore it was not possible
to recalculate the baseline year indicators. To avoid distorting the results, the Polish company’s data were not
included in the Group’s 2025 GHG emissions intensity calculations. Compared to 2021, the overall Scope 1
GHG emissions intensity increased. However, compared to 2024, Scope 1 emissions decreased (see the
consolidated GHG emissions table), where the Polish company’s results are already included. As in other
Group companies, a decline in emissions has also been observed there in recent years.
2. Energy efficiency. Comparing 2025 with 2021, the energy efficiency indicator remained 0.9% higher.
Although a faster recovery had been expected after the technical disruptions of previous years, their impact
lasted longer than planned, and the boiler house equipment has not yet reached optimal operating conditions.
Modernisation work launched in 2025 creates the conditions for a more significant improvement in efficiency
in the near term.
3. Waste directed to disposal. The amount of waste directed to disposal decreased from 53.0 kg/t in 2021 to
36.1 kg/t in 2025, a reduction of 31.9%. This result was driven by improved performance of AB “Grigeo
Klaipėda” wastepaper processing equipment and strengthened raw material control, as well as the diversion
of biomass boiler ash to composting instead of landfill disposal. The overall reduction was also influenced by
changes in the Group’s production structure, with part of the output produced in a facility where no waste
requiring disposal was generated. In addition, after commissioning the wastepaper bale wire extraction
mechanism, 32.25 tonnes of metal waste were separated during the testing phase and transferred for
recycling instead of being landfilled.
4. Wastewater. Wastewater volumes decreased by 5.9% – from 7.1 m³/t in 2021 to 6.7 m³/t in 2025. The change
continues to be driven by UAB “Grigeo Baltwood”’s investment in a wastewater evaporator, which already
delivered initial results last year. AB “Grigeo Klaipėda”, together with UAB “Klaipėdos vanduo”, is continuing
preparations for the anaerobic bioreactor project, which, once implemented, is expected to significantly
improve this indicator.
5. Recovered paper collection and sorting. In 2025, the Group collected and sorted 85.9 thousand tonnes of
recovered paper (53 thousand tonnes in 2021), an increase of 62%. This growth was driven by consistently
strengthened relationships with existing suppliers, expanded cooperation with new partners, and targeted
efforts to ensure raw material availability across the Baltic region.
6. Work safety. The improvement of the TRI indicator in 2025 was driven by a targeted focus on employee
safety, strengthening both competencies and infrastructure. A major contribution to the result came from hiring
experienced occupational health and safety specialists, active consultation with employees, and the
consistent reinforcement of a safety‑first culture across all Group companies. Infrastructure upgrades
(equipment service platforms, stairway modifications) and technological solutions that reduced the volume of
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
manual work also played an important role. Increased attention to training, briefings, incident investigations
and preventive measures helped systematically reduce risks and ensure a safer working environment,
bringing the Group closer to its 2026 target – a TRI of 8.0.
7. Employee turnover. The Group is committed to supporting its employees and allocates significant attention
and resources to reducing turnover and strengthening retention; improving these indicators is part of the
Group’s strategic objectives. The factors that contributed to the positive change in employee retention and
turnover are multifaceted. One of the most important elements in retaining current employees and attracting
new talent is competitive remuneration. The Group continuously monitors labour market trends and salary
forecasts, analyses available data, and reviews its remuneration system throughout the year. Other important
factors include engaging and meaningful work, opportunities for employees to develop their competencies,
involvement in ongoing projects and the implementation of strategic objectives, as well as recognising
employees for their achievements.
8. Policies. In 2025, the existing policies were reviewed; no new policies were created, but one existing
Integrated Management System (IMS) policy was updated.
41
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
List of datapoints in cross-cutting and topical standards that derive from other EU legislation
Disclosure Requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark Regulation reference
EU Climate Law
reference
Page
ESRS 2 GOV-1 Board's gender diversity paragraph 21
(d)
Indicator number 13 of Table #1 of
Annex 1
Commission Delegated Regulation
(EU) 2020/181627, Annex II
26
ESRS 2 GOV-1 Percentage of board members who are
independent paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
26
ESRS 2 GOV-4 Statement on due diligence paragraph
30
Indicator number 10 Table #3 of Annex 1
26-27
ESRS 2 SBM-1 Involvement in activities related to fossil
fuel activities paragraph 40 (d) i
Indicators number 4 Table
#1 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/245328 Table 1: Qualitative
information on Environmental risk and Table
2: Qualitative information on Social risk
Delegated Regulation (EU)
2020/1816, Annex II
-
ESRS 2 SBM-1 Involvement in activities related to
chemical production paragraph 40 (d) ii
Indicator number 9 Table #2 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
-
ESRS 2 SBM-1 Involvement in activities related to
controversial weapons paragraph 40 (d) iii
Indicator number 14 Table #1 of Annex 1
Delegated Regulation (EU)
2020/181829, Article 12(1) Delegated
Regulation (EU) 2020/1816, Annex II
-
ESRS 2 SBM-1 Involvement in activities related to
cultivation and production of tobacco paragraph 40 (d) iv
Delegated Regulation (EU)
2020/181829, Article 12(1) Delegated
Regulation (EU) 2020/1816, Annex II
-
ESRS E1-1 Transition plan to reach climate neutrality by
2050 paragraph 14
Regulation (EU)
2021/1119, Article 2(1)
Not available
ESRS E1-1 Undertakings excluded from Paris-aligned
Benchmarks paragraph 16 (g)
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 1: Banking book-
Climate Change transition risk: Credit
quality of exposures by sector, emissions
and residual maturity
Delegated Regulation (EU)
2020/1818, Article12.1 (d) to (g), and
Article 12.2
-
ESRS E1-4 GHG emission reduction targets paragraph
34
Indicator number 4 Table #2 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book –
Climate change transition risk: alignment
metrics
Delegated Regulation (EU)
2020/1818, Article 6
54
ESRS E1-5 Energy consumption from fossil sources
disaggregated by sources (only high climate impact
sectors) paragraph 38
Indicator number 5 Table #1 and
Indicator n. 5 Table #2 of Annex 1
54-55
ESRS E1-5 Energy consumption and mix paragraph 37
Indicator number 5 Table #1 of Annex 1
54-55
ESRS E1-5 Energy intensity associated with activities in
high climate impact sectors paragraphs 40 to 43
Indicator number 6 Table #1 of Annex 1
55-56
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG
emissions paragraph 44
Indicators number 1 and 2 Table #1 of
Annex 1
Article 449a; Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 1: Banking book –
Climate change transition risk: Credit quality
of exposures by sector, emissions and
residual maturity
Delegated Regulation (EU)
2020/1818, Article 5(1), 6 and 8(1)
56
ESRS E1-6 Gross GHG emissions intensity paragraphs
53 to 55
Indicators number 3 Table #1 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book –
Climate change transition risk: alignment
metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
57
ESRS E1-7 GHG removals and carbon credits
paragraph 56
Regulation (EU)
2021/1119, Article 2(1)
-
42
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Disclosure Requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark Regulation reference
EU Climate Law
reference
Page
ESRS E1-9 Exposure of the benchmark portfolio to
climate-related physical risks paragraph 66
Delegated Regulation (EU)
2020/1818, Annex II Delegated
Regulation (EU) 2020/1816, Annex II
57*
ESRS E1-9 Disaggregation of monetary amounts by
acute and chronic physical risk paragraph 66 (a)
ESRS E1-9 Location of significant assets at material
physical risk paragraph 66 (c).
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraphs 46 and 47; Template
5: Banking book - Climate change physical
risk: Exposures subject to physical risk.
57*
ESRS E1-9 Breakdown of the carrying value of its real
estate assets by energy-efficiency classes paragraph 67
(c).
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraph 34; Template
2:Banking book -Climate change transition
risk: Loans collateralised by immovable
property - Energy efficiency of the collateral
57*
ESRS E1-9 Degree of exposure of the portfolio to
climate- related opportunities paragraph 69
Delegated Regulation (EU)
2020/1818, Annex II
57*
ESRS E2-4 Amount of each pollutant listed in Annex II of
the E-PRTR Regulation (European Pollutant Release
and Transfer Register) emitted to air, water and soil,
paragraph 28
Indicator number 8 Table #1 of Annex 1
Indicator number 2 Table #2 of Annex 1
Indicator number 1 Table #2 of Annex 1
Indicator number 3 Table #2 of Annex 1
60-61
ESRS E3-1 Water and marine resources paragraph 9
Indicator number 7 Table #2 of Annex 1
62
ESRS E3-1 Dedicated policy paragraph 13
Indicator number 8 Table 2 of Annex 1
-
ESRS E3-1 Sustainable oceans and seas paragraph 14
Indicator number 12 Table #2 of Annex 1
-
ESRS E3-4 Total water recycled and reused paragraph
28 (c)
Indicator number 6.2 Table #2 of Annex
1
-
ESRS E3-4 Total water consumption in m3 per net
revenue on own operations paragraph 29
Indicator number 6.1 Table #2 of Annex
1
-
ESRS 2- IRO 1 - E4 paragraph 16 (a) i
Indicator number 7 Table #1 of Annex 1
-
ESRS 2- IRO 1 - E4 paragraph 16 (b)
Indicator number 10 Table #2 of Annex 1
-
ESRS 2- IRO 1 - E4 paragraph 16 (c)
Indicator number 14 Table #2 of Annex 1
-
ESRS E4-2 Sustainable land / agriculture practices or
policies paragraph 24 (b)
Indicator number 11 Table #2 of Annex 1
-
ESRS E4-2 Sustainable oceans / seas practices or
policies paragraph 24 (c)
Indicator number 12 Table #2 of Annex 1
-
ESRS E4-2 Policies to address deforestation paragraph
24 (d)
Indicator number 15 Table #2 of Annex 1
-
ESRS E5-5 Non-recycled waste paragraph 37 (d)
Indicator number 13 Table #2 of Annex 1
65-66
ESRS E5-5 Hazardous waste and radioactive waste
paragraph 39
Indicator number 9 Table #1 of Annex 1
-
ESRS 2- SBM3 - S1 Risk of incidents of forced labour
paragraph 14 (f)
Indicator number 13 Table #3 of Annex I
-
ESRS 2- SBM3 - S1 Risk of incidents of child labour
paragraph 14 (g)
Indicator number 12 Table #3 of Annex I
-
ESRS S1-1 Human rights policy commitments
paragraph 20
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of Annex I
35
ESRS S1-1 Due diligence policies on issues addressed
by the fundamental International Labor Organisation
Conventions 1 to 8, paragraph 21
Delegated Regulation (EU)
2020/1816, Annex II
Not available
ESRS S1-1 processes and measures for preventing
trafficking in human beings paragraph 22
Indicator number 11 Table #3 of Annex I
-
ESRS S1-1 workplace accident prevention policy or
management system paragraph 23
Indicator number 1 Table #3 of Annex I
36
ESRS S1-3 grievance/complaints handling mechanisms
paragraph 32 (c)
Indicator number 5 Table #3 of Annex I
68
43
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Disclosure Requirement and related datapoint
SFDR reference
Pillar 3 reference
Benchmark Regulation reference
EU Climate Law
reference
Page
ESRS S1-14 Number of fatalities and number and rate of
work-related accidents paragraph 88 (b) and (c)
Indicator number 2 Table #3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
74
ESRS S1-14 Number of days lost to injuries, accidents,
fatalities or illness paragraph 88 (e)
Indicator number 3 Table #3 of Annex I
74
ESRS S1-16 Unadjusted gender pay gap paragraph 97
(a)
Indicator number 12 Table #1 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
74
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)
Indicator number 8 Table #3 of Annex I
23
ESRS S1-17 Incidents of discrimination paragraph 103
(a)
Indicator number 7 Table #3 of Annex I
74
ESRS S1-17 Non-respect of UNGPs on Business and
Human Rights and OECD paragraph 104 (a)
Indicator number 10 Table #1 and
Indicator n. 14 Table #3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818 Art 12 (1)
-
ESRS 2- SBM3 – S2 Significant risk of child labour or
forced labour in the value chain paragraph 11 (b)
Indicators number 12 and n. 13 Table #3
of Annex I
-
ESRS S2-1 Human rights policy commitments paragraph
17
Indicator number 9 Table #3 and
Indicator n. 11 Table #1 of Annex 1
-
ESRS S2-1 Policies related to value chain workers
paragraph 18
Indicator number 11 and n. 4 Table #3 of
Annex 1
-
ESRS S2-1 Non-respect of UNGPs on Business and
Human Rights principles and OECD guidelines
paragraph 19
Indicator number 10 Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818, Art 12
(1)
-
ESRS S2-1 Due diligence policies on issues addressed
by the fundamental International Labor Organisation
Conventions 1 to 8, paragraph 19
Delegated Regulation (EU)
2020/1816, Annex II
-
ESRS S2-4 Human rights issues and incidents
connected to its upstream and downstream value chain
paragraph 36
Indicator number 14 Table #3 of Annex 1
-
ESRS S3-1 Human rights policy commitments paragraph
16
Indicator number 9 Table #3 of Annex 1
and Indicator number 11 Table #1 of
Annex 1
-
ESRS S3-1 non-respect of UNGPs on Business and
Human Rights, ILO principles or and OECD guidelines
paragraph 17
Indicator number 10 Table #1 Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818, Art 12
(1)
-
ESRS S3-4 Human rights issues and incidents
paragraph 36
Indicator number 14 Table #3 of Annex 1
-
ESRS S4-1 Policies related to consumers and end-users
paragraph 16
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of Annex 1
-
ESRS S4-1 Non-respect of UNGPs on Business and
Human Rights and OECD guidelines paragraph 17
Indicator number 10 Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818, Art 12
(1)
-
ESRS S4-4 Human rights issues and incidents
paragraph 35
Indicator number 14 Table #3 of Annex 1
-
ESRS G1-1 United Nations Convention against
Corruption paragraph 10 (b)
Indicator number 15 Table #3 of Annex 1
-
ESRS G1-1 Protection of whistle- blowers paragraph 10
(d)
Indicator number 6 Table #3 of Annex 1
80
ESRS G1-4 Fines for violation of anti-corruption and
anti-bribery laws paragraph 24 (a)
Indicator number 17 Table #3 of Annex
Delegated Regulation (EU)
2020/1816, Annex II)
81
ESRS G1-4 Standards of anti- corruption and anti-
bribery paragraph 24 (b)
Indicator number 16 Table #3 of Annex 1
80-81
* – Exception applied. Qualitative information provided.
44
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
7.2. Environmental information
Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)
The European Union (EU) Taxonomy is a classification system designed to determine which economic activities can
be considered environmentally sustainable. It helps companies and investors assess the contribution of activities to
sustainability objectives and ensures consistent disclosure practices across the EU. The Taxonomy is an important
part of the European Green Deal and other EU sustainability policy initiatives.
The EU Taxonomy covers six environmental objectives:
- climate change mitigation;
- climate change adaptation;
- sustainable use and protection of water and marine resources;
- transition to a circular economy;
- pollution prevention and control;
- protection and restoration of biodiversity and ecosystems.
In 2025, the European Commission adopted a delegated act simplifying the application of the Taxonomy disclosure,
climate, and environmental delegated acts. The amendments introduce new materiality thresholds, simplified “do no
significant harm” (DNSH) criteria, updated disclosure templates, and a reduced set of mandatory data points. These
changes apply to reporting for the 2025 financial year, although companies may choose to continue applying the
previous framework. The amendments do not change the scope of entities subject to the Taxonomy Regulation -
they relate only to the content and format of disclosures.
A taxonomy‑eligible economic activity is an activity recognised by the Taxonomy Regulation as capable of making a
substantial contribution to one of the six environmental objectives. The classification of activities as taxonomy‑eligible
or non‑eligible does not in itself indicate whether an activity is sustainable or unsustainable – it is merely a
categorisation step.
A taxonomy‑aligned activity is considered environmentally sustainable if it:
- makes a substantial contribution to one or more environmental objectives;
- does not significantly harm any of the other objectives;
- is carried out in compliance with minimum safeguards;
- meets the technical screening criteria established by the European Commission.
Key Performance Indicators (KPIs) – the shares of turnover, capital expenditure (CapEx), and operating
expenditure (OpEx) associated with taxonomy‑aligned activities – are calculated in accordance with the
requirements of the Taxonomy Regulation. All KPIs are assessed to avoid double counting; if an activity contributes
to several objectives, the indicators are included only once.
The largest decrease in the share of capital expenditure compared with previous years is observed in the activity
related to the renovation of existing buildings. Meanwhile, the largest increase in the share of capital expenditure is
recorded in activities related to the construction, extension and operation of water collection, treatment and supply
systems. No significant changes were observed in the shares of turnover and operating expenses.
The Group aims to contribute to the European Green Deal and therefore considers the continuously updated EU
Taxonomy Regulation when planning and implementing investments, with the objective of increasing the share of
the Group’s activities that qualify as taxonomy‑aligned in the future.
In 2025, the second phase of the solar power generation project was implemented, which is aligned with the
Taxonomy requirements.
The Group is currently assessing opportunities and expects to align heat generation from bioenergy with the
Taxonomy requirements in the future. In addition, in 2025 an anaerobic bioreactor (anaerobic wastewater sludge
digestion system) was commissioned, which is also expected to be aligned with the Taxonomy requirements.
45
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
The Group's main activities are not yet included in the Taxonomy Regulation. However, the Group has identified secondary activities within its operations that are classified
as taxonomic economic activities:
No.
Activity
Technical screening criteria
Description of the evaluation
1.
Electricity generation using concentrated
solar power technology
• Substantial contribution to climate change mitigation (Commission
Delegated Regulation (EU) 2021/2139 Annex I Clause 4.1.).
• Substantial contribution to climate change adaptation (Commission
Delegated Regulation (EU) 2021/2139 Annex II Clause 4.1.).
The assessment of the technical screening criteria for this activity has led
to the conclusion that the activity with the technical screening criteria for
mitigation and adaptation to climate change, does not cause significant
harm to other environmental objectives, and is in line with the minimum
safeguards.
2.
Production of heat from biomass
• Substantial contribution to climate change mitigation (Commission
Delegated Regulation (EU) (ES) 2021/2139 Annex I Clause 4.24.).
• Substantial contribution to climate change adaptation (Commission
Delegated Regulation (EU) 2021/2139 Annex II Clause 4.24.).
The assessment of the technical screening criteria indicated that the activity
does not comply with climate change mitigation technical screening criteria
as it does not comply with the emission limit values set out in Part 2 of
Annex II to Directive (EU) 2015/2193.
3.
Construction, extension and operation of
water collection, treatment and supply
systems
• Substantial contribution to climate change mitigation (Commission
Delegated Regulation (EU) 2021/2139 Annex I Clause 5.1.).
• Substantial contribution to climate change adaptation (Commission
Delegated Regulation (EU) 2021/2139 Annex II Clause 5.1.).
The assessment of the technical screening criteria indicated that the activity
does not comply with climate change mitigation technical screening criteria,
as the average energy consumption for extraction and treatment is more
than 0.5 kWh per cubic metre of water produced.
4.
Collection and transport of non-hazardous
waste in source segregated fractions
• Substantial contribution to climate change mitigation (Commission
Delegated Regulation (EU) 2021/2139 Annex I Clause 5.5.).
• Substantial contribution to climate change adaptation (Commission
Delegated Regulation (EU) 2021/2139 Annex II Clause 5.5.).
The assessment of the technical screening criteria indicated that the activity
does not comply with climate change mitigation technical screening criteria,
because not all waste collected is suitable for reuse or recycling. A small
proportion of waste is sent to incineration or landfill.
5.
Transport by motorbikes, passenger cars
and light commercial vehicles
• Substantial contribution to climate change mitigation (Commission
Delegated Regulation (EU) 2021/2139 Annex I Clause 6.5.).
• Substantial contribution to climate change adaptation (Commission
Delegated Regulation (EU) 2021/2139 Annex II Clause 6.5.).
The assessment of the technical screening criteria indicated that the activity
does not comply with climate change mitigation technical screening criteria,
as specific emissions of CO
2
, (as defined in Article 3(1), point (h), of
Regulation (EU) 2019/631), are higher than 50 g CO
2
/km.
6.
Renovation of existing buildings
• Substantial contribution to climate change mitigation (Commission
Delegated Regulation (EU) 2021/2139 Annex I Clause 7.2.).
• Substantial contribution to climate change adaptation (Commission
Delegated Regulation (EU) 2021/2139 Annex II Clause 7.2.).
• Substantial contribution to the transition to a circular economy
(Commission Delegated Regulation (EU) 2023/2486 Annex II Clause
3.2.).
The assessment of the technical screening criteria indicated that the activity
does not comply with climate change mitigation technical screening criteria,
as renovated buildings do not have energy efficiency certificates of class A
or higher, because renovation of cultural heritage buildings involves
minimal renovation, preserving the cultural value and not always achieving
higher energy efficiency classes. Also, the activity does not comply with
technical screening criteria for the transition to a circular economy as the
life cycle global warming potential of the renovation activities has not been
calculated for each stage of the life cycle from the start of the renovation of
the building.
7.
Acquisition and ownership of buildings
• Substantial contribution to climate change mitigation (Commission
Delegated Regulation (EU) 2021/2139 Annex I Clause 7.7.)
• Substantial contribution to climate change adaptation Commission
Delegated Regulation (EU) 2021/2139 Annex II Clause 7.7.).
The assessment of the technical screening criteria indicated that the activity
does not comply with climate change mitigation technical screening criteria,
as renovated buildings do not have energy efficiency certificates of class A
or higher.
8.
Collection and transport of non-hazardous
and hazardous waste
• Substantial contribution to the transition to a circular economy
(Commission Delegated Regulation (EU) 2023/2486 Annex II Clause
2.3.).
The assessment of the technical screening criteria indicated that the activity
does not comply with transition to a circular economy technical screening
criterion, because not all waste collected is suitable for reuse or recycling.
A small proportion of waste is sent to incineration or landfill.
46
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Proportion of turnover from products or services associated with Taxonomy-aligned economic activities:
Financial year 2025
Year
Substantial contribution criteria
DNSH criteria ('Does Not Significantly
Harm')
Economic activities (1)
Code
(a)
(2)
Turnover (3)
Proportion of turnover,
year 2024 (4)
Climate change
mitigation (5)
Climate change
adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change
mitigation (11)
Climate change
adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards
(17)
Proportion of
Taxonomy
aligned (A.1.) or
eligible (A.2.)
turnover, year
2024 (18)
Category
enabling
activity (19)
Category
transitional
activity (20)
Thousands
EUR
%
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Electricity generation using solar photovoltaic technology
CCM 4.1 /
CCA 4.1
-
-
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
-
-
-
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)
-
-
-
-
-
-
-
-
Y
Y
Y
Y
Y
Y
Y
-
-
-
Of which Enabling
-
-
-
-
-
-
-
-
Y
Y
Y
Y
Y
Y
Y
-
-
-
Of which Transitional
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
(c)
EL;
N/EL
(c)
EL;
N/EL
(c)
EL;
N/EL
(c)
EL;
N/EL
(c)
EL;
N/EL
(c)
-
-
-
-
-
-
-
-
-
-
Production of heat from biomass
CCM 4.24 /
CCA 4.24
1 028
0.4%
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
0.5%
-
-
Construction, extension and operation of water collection, treatment and
supply systems
CCM 5.1 /
CCA 5.1
-
-
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
-
-
-
Collection and transport of non-hazardous waste in source segregated
fractions
CCM 5.5 /
CCA 5.5
911
0.4%
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
0.4%
-
-
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5 /
CCA 6.5
-
-
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
-
-
-
Renovation of existing buildings
CCM 7.2 /
CCA 7.2
-
-
EL
EL
N/EL
N/EL
EL
N/EL
-
-
-
-
-
-
-
-
-
-
Acquisition and ownership of buildings
CCM 7.7 /
CCA 7.7
843
0.3%
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
0.4%
-
-
Turnover of Taxonomy eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
2 782
1.1%
1.1%
-
-
-
-
-
-
-
-
-
-
-
-
1.2%
-
-
A. Turnover of Taxonomy eligible activities (A.1+A.2)
2 782
1.1%
1.1%
-
-
-
-
-
-
-
-
-
-
-
-
1.2%
-
-
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy non-eligible activities
243 642
98.9%
Total
246 424
100%
(a)
Climate change mitigation (CCM), climate change adaptation (CCA), water and marine resources (WTR), pollution (PPC), circular economy (CE), biodiversity and ecosystems (BIO).
(b)
Y - Yes, Taxonomy eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy eligible but not Taxonomy-aligned activity with the relevant environmental objective; EL - Taxonomy eligible activity for the relevant objective.
(c)
EL – Taxonomy-eligible activity for the relevant objective; N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective.
47
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities:
Financial year 2025
Year
Substantial contribution criteria
DNSH criteria ('Does Not Significantly
Harm')
Economic activities (1)
Code
(a)
(2)
CapEx (3)
Proportion of CapEx, year
2024 (4)
Climate change mitigation
(5)
Climate change adaptation
(6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change mitigation
(11)
Climate change adaptation
(12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards (17)
Proportion of
Taxonomy
aligned (A.1.) or
eligible (A.2.)
turnover, year
2024 (18)
Category
enabling
activity (19)
Category
transitional
activity (20)
Thousands
EUR
%
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Electricity generation using solar photovoltaic technology
CCM 4.1 /
CCA 4.1
152
0.4%
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
6.0%
-
-
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)
152
0.4%
10.9%
-
-
-
-
-
Y
Y
Y
Y
Y
Y
Y
6.0%
-
-
Of which Enabling
-
-
-
-
-
-
-
-
Y
Y
Y
Y
Y
Y
Y
-
-
-
Of which Transitional
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
(c)
EL;
N/EL
(c)
EL;
N/EL
(c)
EL;
N/EL
(c)
EL;
N/EL
(c)
EL;
N/EL
(c)
-
-
-
-
-
-
-
-
-
-
Production of heat from biomass
CCM 4.24 /
CCA 4.24
316
0.8%
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
2.9%
-
-
Construction, extension and operation of water collection, treatment
and supply systems
CCM 5.1 /
CCA 5.1
2 975
7.6%
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
0.3%
-
-
Collection and transport of non-hazardous waste in source segregated
fractions
CCM 5.5 /
CCA 5.5
605
1.5%
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
0.3%
-
-
Transport by motorbikes, passenger cars and light commercial
vehicles
CCM 6.5 /
CCA 6.5
294
0.8%
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
0.7%
-
-
Renovation of existing buildings
CCM 7.2 /
CCA 7.2
871
2.2%
EL
EL
N/EL
N/EL
EL
N/EL
-
-
-
-
-
-
-
12.8%
-
-
Acquisition and ownership of buildings
CCM 7.7 /
CCA 7.7
-
-
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
-
-
-
Turnover of Taxonomy eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
5 061
12.9%
12.9%
-
-
-
-
-
-
-
-
-
-
-
-
17.0%
-
-
A. Turnover of Taxonomy eligible activities (A.1+A.2)
5 213
13.3%
13.3%
-
-
-
-
-
-
-
-
-
-
-
-
23.0%
-
-
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy non-eligible activities
33 948
86.7%
Total
39 161
100%
(a)
Climate change mitigation (CCM), climate change adaptation (CCA), water and marine resources (WTR), pollution (PPC), circular economy (CE), biodiversity and ecosystems (BIO).
(b)
Y - Yes, Taxonomy eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy eligible but not Taxonomy-aligned activity with the relevant environmental objective; EL - Taxonomy eligible activity for the relevant objective.
(c)
EL – Taxonomy-eligible activity for the relevant objective; N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective.
48
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities:
Financial year 2025
Year
Substantial contribution criteria
DNSH criteria ('Does Not Significantly
Harm')
Economic activities (1)
Code
(a)
(2)
OpEx (3)
Proportion of OpEx, year
2023 (4)
Climate change mitigation
(5)
Climate change adaptation
(6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change mitigation
(11)
Climate change adaptation
(12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards (17)
Proportion of
Taxonomy
aligned (A.1.) or
eligible (A.2.)
turnover, year
2024 (18)
Category
enabling
activity (19)
Category
transitional
activity (20)
Thousands
EUR
%
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y; N;
N/EL
(b)
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Electricity generation using solar photovoltaic technology
CCM 4.1 /
CCA 4.1
-
-
Y
Y
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
-
-
-
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)
-
-
-
-
-
-
-
-
Y
Y
Y
Y
Y
Y
Y
-
-
-
Of which Enabling
-
-
-
-
-
-
-
-
Y
Y
Y
Y
Y
Y
Y
-
-
-
Of which Transitional
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
(c)
EL;
N/EL
(c)
EL;
N/EL
(c)
EL;
N/EL
(c)
EL;
N/EL
(c)
EL;
N/EL
(c)
-
-
-
-
-
-
-
-
-
-
Production of heat from biomass
CCM 4.24 /
CCA 4.24
167
5.4%
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
6.6%
-
-
Construction, extension and operation of water collection, treatment and
supply systems
CCM 5.1 /
CCA 5.1
40
1.3%
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
1.2%
-
-
Collection and transport of non-hazardous waste in source segregated
fractions
CCM 5.5 /
CCA 5.5
371
12.0%
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
9.3%
-
-
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5 /
CCA 6.5
187
6.1%
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
4.6%
-
-
Renovation of existing buildings
CCM 7.2 /
CCA 7.2
109
3.5%
EL
EL
N/EL
N/EL
EL
N/EL
-
-
-
-
-
-
-
2.9%
-
-
Acquisition and ownership of buildings
CCM 7.7 /
CCA 7.7
-
-
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
-
-
-
Turnover of Taxonomy eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
874
28.3%
28.3%
-
-
-
-
-
-
-
-
-
-
-
-
24.6%
-
-
A. Turnover of Taxonomy eligible activities (A.1+A.2)
874
28.3%
28.3%
-
-
-
-
-
-
-
-
-
-
-
-
24.6%
-
-
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy non-eligible activities
2 717
71.7%
Total
3 091
100%
(a)
Climate change mitigation (CCM), climate change adaptation (CCA), water and marine resources (WTR), pollution (PPC), circular economy (CE), biodiversity and ecosystems (BIO).
(b)
Y - Yes, Taxonomy eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy eligible but not Taxonomy-aligned activity with the relevant environmental objective; EL - Taxonomy eligible activity for the relevant objective.
(c)
EL – Taxonomy-eligible activity for the relevant objective; N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective.
49
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Disclosure tables for nuclear and fossil gas activities under the Taxonomy as specified in the Complementary Delegated Climate Act
Template 1 Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from
nuclear processes with minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of
district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating
or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.
NO
5.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
NO
6.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
YES
Template 2 Taxonomy-aligned economic activities (denominator)
No turnover from taxonomic economic activities meeting the criteria was generated and no operating costs were incurred.
Capital expenditure KPIs for the taxonomic economic activity meeting the criteria:
Row
Economic activities
Proportion (the information is to be presented in monetary amounts and as
percentages)
(CCM + CCA)
Climate change
mitigation
Climate change adaptation
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
5.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the
denominator of the applicable KPI
152
0.4%
152
0.4%
-
-
8.
Total applicable KPI
39 161
100%
39 161
100%
-
-
50
« Table of Contents
Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Template 3 Taxonomy-aligned economic activities (numerator)
No turnover from taxonomic economic activities meeting the criteria was generated and no operating costs were incurred.
Capital expenditure KPIs for the taxonomic economic activity meeting the criteria:
Row
Economic activities
Proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA)
Climate change
mitigation
Climate change adaptation
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the applicable KPI
-
-
-
-
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the applicable KPI
-
-
-
-
-
-
5.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the applicable KPI
-
-
-
-
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the numerator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the
numerator of the applicable KPI
152
100%
152
100%
-
-
8.
Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI
152
100%
152
100%
-
-
Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities
The proportion of turnover related to economic activities that are taxonomic but do not meet the criteria:
Row
Economic activities
Proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA)
Climate change
mitigation
Climate change adaptation
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
4.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
5.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
6.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to
in rows 1 to 6 above in the denominator of the applicable KPI
2 782
100%
2 782
100%
-
-
8.
Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the
denominator of the applicable KPI
2 782
100%
2 782
100%
-
-
51
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
The capital expenditure part relates to economic activities that are taxonomic but do not meet the criteria:
Row
Economic activities
Proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA)
Climate change
mitigation
Climate change adaptation
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
4.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
5.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
6.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to
in rows 1 to 6 above in the denominator of the applicable KPI
5 061
100%
5 061
100%
-
-
8.
Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the
denominator of the applicable KPI
5 061
100%
5 061
100%
-
-
The part of the operating expenditure that relates to economic activities that are taxonomic but do not meet the criteria:
Row
Economic activities
Proportion (the information is to be presented in monetary amounts and as percentages)
(CCM + CCA)
Climate change
mitigation
Climate change adaptation
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
2.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
4.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
5.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
6.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section
4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to
in rows 1 to 6 above in the denominator of the applicable KPI
874
100%
874
100%
-
-
8.
Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the
denominator of the applicable KPI
874
100%
874
100%
-
-
52
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
ESRS E1 Climate change
Integration of sustainability-related performance in incentive schemes (2 ESRS GOV-2)
The disclosures are provided in ESRS 2 General Information section.
Description of the processes to identify and assess material climate-
related impacts, risks and opportunities (2 ESRS IRO-1)
Addressing climate change risks
We acknowledge the gravity of scenario analysis in disclosure of climate-related risks and opportunities. Climate
change impacts are primarily assessed through our Group's GHG emissions calculations (Table Consolidated GHG
emissions). We use the TCFD guidelines to analyse the potential impacts of climate change on business. An
assessment of the Group's business transformation and physical risks related to climate change and their potential
impacts in the short (2030) and long (2030-2060) term has been carried out, using a range of future climate change
projection research reports and scientific publications and climate scenarios (RCPs). We assessed the locations of
Grigeo Group companies' operations and their climate-related risks. In the short and long term, the physical risks are
considered to fall into the low to medium probability category.
Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3)
The Group is one of the largest paper and wood industry groups in the Baltics. Paper production is a resource- and
energy-intensive industry. It is our responsibility to ensure production efficiency in order to minimise negative impacts.
In order to reduce environmental impacts, the Group sets targets in areas where there are critical impacts on both the
Group and its stakeholders.
The Group has not yet carried out a full assessment of how resilient its strategy and business model are to climate
change. Accurate modelling and value‑chain risk assessment are constrained by the lack of reliable, audit‑ready
information about the sector, suppliers, locations, and other relevant factors. This challenge has intensified following
the entry into force of the Omnibus Delegated Act, under which large undertakings may no longer request more data
than what is foreseen in the voluntarily applicable VESRS/VSME standards, and SMEs may reasonably refuse to
provide such data. As a result, the availability of value‑chain data becomes limited, particularly in areas such as
climate, biodiversity, social responsibility, and other topics where our sector requires higher granularity. This makes it
difficult to move from general information to more precise supplier‑level data needed for decarbonisation planning and
risk modelling.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Given these constraints, the Group has established operational guidelines for managing the identified impacts and
risks, and strategic decisions are made based on the information available, with continuous monitoring of changes in
regulation, market dynamics, and the availability of value‑chain data.
Climate change risks and potential impact on our business lines by category:
Relevant short- and long-term
physical climate impacts
Illustrative effects on value chain
Approach guidelines
Transition risks
Technology
and market
shifts
• Policies and investments to ensure a low
carbon emissions economy.
• Increased demand for energy-
efficient lower-carbon products.
• Modern technologies that disrupt
markets.
• Shift to renewable energy to eliminate
GHG scope 2 emissions.
• Increase energy consumption efficiency.
• Refurbishing of machinery.
Reputation
• Raising awareness of climate change.
• Growing expectations for responsible
manufacturing.
• Public attention to deforestation.
• Concerns about manufacturing waste.
• Concerns about water usage.
• Threats to securing social license to
operate.
• Opportunity to enhance reputation
and brand value.
• Opportunity to engage with
stakeholders consistently.
• Improving company transparency.
• Our impact assessment and
measurement.
• Updating our procurement policies.
• Active engagement with stakeholders.
• Increasing contribution to other
environmental objectives, such as
circular economy.
Policy and
legal
• Evolving requirements.
• Regulatory changes on the national and
EU level.
• Threats to securing legal license to
operate.
• Increased operating costs.
• Increased tax.
• Emerging concern about liability.
• Closely monitoring the development of
industry-specific regulations.
• Monitoring changes in regulation through
supply chain.
Physical risks
Acute and chronic
• Increased intensity and duration of
extreme weather events, such as heat
waves, storms, and floods.
• Precipitation extremes and flooding.
• Increased evaporation of surface water.
• Increased mineral content of surface
water.
• Rising sea level.
• Rising temperatures.
• Increased wildfires.
• Increased business interruption.
• Damage across operations and
supply chains.
• Compromised reliability of material
supply.
• Volatility of input costs and revenues.
• Unpredictable asset values and
insurance claims.
• Increased cost of capital.
• Share price volatility.
• Increase in CAPEX.
• Monitoring.
• Climate change adaptation plans.
• Continuous engagement with suppliers.
• Improving climate change scenario
analysis.
• Regular review of the climate change
scenario.
Table of significant ESRS sub-topics
The assessment of climate change impacts, risks and opportunities has identified material topics for the Group's
companies and has been subject to an assessment of impacts and financial materiality in line with the new ESRS
requirements. All climate change sub-topics were identified as critically significant in impact assessment. Climate
change adaptation and mitigation are identified as critical in the value chain.
Subtopic
Impact materiality
Financial materiality
Climate change adaptation
Critical
Significant
Climate change mitigation
Critical
Significant
Energy
Critical
Critical
Policies related to climate change mitigation and adaptation (E1-2)
The disclosures are provided in ESRS 2 General Information, Group Environmental Policy section.
Actions and resources in relation to climate change policies (E1-3)
The Group implements climate‑change mitigation and adaptation measures, focusing primarily on energy efficiency,
fuel switching, and the expansion of renewable energy sources. The current GHG‑reduction target covers Scope 1
emissions – the area in which the Group can make decisions most rapidly and exert direct influence.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
In line with the Group’s decarbonisation levers for climate‑change mitigation and adaptation, the Group focuses on:
• Improving energy efficiency.
In 2025, the Group continued implementing energy‑efficiency initiatives, including equipment modernisation,
process optimisation, and the expansion of the energy‑monitoring system. These measures help reduce
energy consumption and directly contribute to the Group’s strategic GHG‑reduction objectives.
• Using renewable energy sources.
In 2025, the Group completed the second stage of its solar power plant project, significantly increasing the
total amount of electricity generated. In 2025, the solar plants produced nearly 4,000 MWh of electricity –
more than double the amount generated in 2024. This further reduced Scope 2 GHG emissions and
strengthened the Group’s energy independence.
• Fuel switching.
Most of the required heat energy continues to be produced using biomass, which helps reduce Scope 1 GHG
emissions and supports the achievement of strategic targets. Additionally, in 2025, the Group commissioned
an anaerobic bioreactor with an investment value of approximately EUR 5 million. Operating continuously in
2025, the bioreactor produced slightly more than 2,000 MWh of biogas, which replaced natural gas and further
reduced Scope 1 GHG emissions.
The Group’s investments are financed from available resources, and its financial position enables the continuation of
planned projects and technological development. In 2025, the Group completed its preparations for GHG‑reduction
targets: all necessary calculations were carried out, and the targets were submitted to the Science Based Targets
initiative (SBTi) for validation at the beginning of 2026. The review and approval of these decarbonisation targets is
expected in the second half of 2026. Since the largest share of the Group’s GHG footprint consists of Scope 3
emissions, the new targets will cover the entire value chain, actively involving suppliers and customers. Ongoing
investments in energy efficiency and renewable‑energy solutions will form the foundation of the transition plan
following SBTi validation.
Targets related to climate change mitigation and adaptation (E1-4)
To implement policy commitments, manage impacts and risks, and track progress, indicators are monitored and
targets are set not only to reduce GHG emissions, but also to improve energy efficiency. These targets are part of
the current strategy and are all subject to the 2021 base year values on which change is monitored. The base year
remains unchanged throughout the period.
Target
Unit of measurement
Base year
2021
Interim
result in
2025
Change
Target for
2026
1.
Reduction of GHG emission intensity (Scope 1)
kgCO
2
e/ton of production
114.1
115.3
+1.0%
-5.0%
2.
Increasing energy efficiency
MWh/ton of production
2.56
2.58
+0.9%
-3.0%
In 2021, the Polish company had not yet been established, and therefore it was not possible to recalculate the baseline
year indicators. To avoid distorting the results, the Polish company’s data are not included in the Group’s GHG
emissions intensity calculations for 2025.
Compared to 2021, the overall Scope 1 GHG emissions intensity increased. However, compared to 2024, Scope 1
emissions decreased (see the consolidated GHG emissions table), where the Polish company’s results are already
included. As in other Group companies, a decline in emissions has also been recorded there in recent years.
The energy efficiency indicator has remained broadly stable—the Group’s modernization projects and equipment
upgrades have offset the impact of the new company. It is expected that in the coming years, once the planned
modernization works are completed, both GHG emissions and energy efficiency indicators will continue to improve.
Energy consumption and mix (E1-5)
The Group produces energy from biofuels and natural gas. All the energy generated is used in the Group’s operations
and sold to meet the heating needs of Grigiškės or other consumers. Electricity and fuel for vehicles are also used in
the operations. Our total energy consumption in 2025 amounted to 630 GWh.
We are one of the largest consumers of wood chips on the market. In 2025, we consumed 28 thousand tonnes (tonnes
of oil equivalent) of wood chips, representing 332 GWh, or 53% of the Group’s total energy consumption.
Electricity is the second-largest energy resource used for our production lines, and in 2025 our consumption reached
138 GWh. During the year, the Group continued to expand its renewable energy generation capacity and used
electricity produced by its own solar power plants to cover part of its demand. In addition, more than two-thirds of the
electricity purchased and consumed was generated from renewable sources.
55
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Energy consumption in
MWh
Tissue paper
Sold heat
Hardboard
Containerboard
and packaging
Group
2025 m.
2024 m.
2025 m.
2024 m.
2025 m.
2024 m.
2025 m.
2024 m.
2025 m.
2024 m.
Renewable energy
Biofuel
57 363
65 772
30 683
26 105
85 990
84 425
157 934
162 189
331 970
338 491
Electricity
47 762
28 683
-
-
0
8 474
57 547
37 063
105 309
74 220
Biogas
-
-
-
-
-
-
2 047
-
2 047
-
Renewable energy
105 125
94 455
30 683
26 105
85 990
92 899
217 528
199 252
439 326
412 711
Non-renewable energy
Natural gas
82 694
87 990
46
254
-
-
68 203
65 179
150 943
153 422
Electricity
12 974
24 706
-
-
16 251
7 626
3 956
26 120
33 181
58 451
Diesel for transportation
144
32
-
-
903
880
2 988
2 812
4 035
3 724
Petrol for transportation
457
415
-
-
112
132
465
532
1 034
1 079
Petroleum Liquid Gas for
transportation
880
291
-
-
-
-
846
733
1 726
1 024
Non-renewable energy
97 149
113 434
46
254
17 266
8 638
76 458
95 376
190 919
217 700
Energy in total
202 274
207 889
30 729
26 359
103 256
101 537
293 986
294 628
630 245
630 411
Renewable energy
52%
45%
100%
99%
83%
91%
74%
68%
70%
65%
Self-generated energy (MWh):
- from non-renewable sources – 106 027;
- from renewable sources – 334 017.
Energy efficiency
We understand that our product energy impact is managed via energy mix (shifting to renewable energy sources) and
improving energy efficiency.
Energy efficiency is a key indicator of the economic and environmental performance of our production facilities.
Considering all circumstances, the investments in energy efficiency improvements will remain our key investment
direction.
Average energy consumption
KWh/t
Tissue paper
Hardboard
Containerboard and
packaging
Group
2025 m.
2024 m.
2025 m.
2024 m.
2025 m.
2024 m.
2025 m.
2024 m.
Renewable energy
Biofuel
804
1 022
1423
1 447
1403
1 432
1359
1 434
Electricity
670
446
-
145
511
327
431
315
Biogas
-
-
-
-
18
-
8
-
Non-renewable energy
Natural gas
1 159
1 367
-
-
606
575
618
650
Electricity
182
384
269
131
35
231
136
248
Diesel for transportation
2
-
15
15
27
25
17
16
Petrol for transportation
6
6
2
2
4
5
4
5
Petroleum Liquid Gas for
transportation
12
5
-
-
8
6
7
4
Total
2 835
3 230
1 709
1 740
2 612
2 601
2 580
2 672
By investing in new equipment, the Group achieved a little more than 3% improvement in energy efficiency in 2025,
with average energy consumption decreasing from 2 672 kWh/t in 2024 to 2 580 kWh/t in 2025. This result confirms
that the technological measures being implemented are delivering tangible benefits. At the same time, it is important
to note that energy efficiency will continue to be improved through process optimisation and equipment modernisation
in order to meet the targets set for 2026.
56
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Energy intensity by net income:
Energy intensity per net revenue
2025
2024
Total energy consumption from activities in high climate impact sectors per net revenue from
activities in high climate impact sectors (MWh/ million EUR)
2 558
2 960
Energy consumption and net revenue are taken from all Group companies, as their activities fall within sectors that
have a significant impact on the climate.
Gross Scopes 1, 2, 3 and Total GHG emissions (E1-6)
GHG emissions for all Grigeo Group companies and for the consolidated report are
calculated in accordance with the GHG Protocol methodology, applying the
operational control approach. Under this approach, all emissions from activities that
the Group manages and controls through its operations are included in the inventory, regardless of ownership
structure. National, DEFRA, supplier‑provided, and other emission factors were used for the GHG calculations. The
Group has no non‑consolidated investments (associates, joint ventures, or similar entities).
Emissions by scopes
Scope 1 GHG emissions are direct emissions from sources owned or directly controlled by the company. The majority
of the Group’s Scope 1 emissions come from the combustion of natural gas in the boiler houses in Klaipėda, Grigiškės,
and Niedomice, as well as in paper production equipment. This category also includes emissions from
company‑operated vehicles.
Scope 2 GHG emissions are indirect emissions associated with the generation of purchased electricity and heat.
These emissions occur not within the company itself but at the facilities of the energy producer, and therefore depend
on the type of fuel used and the emission factors of the energy system.
Scope 3 GHG emissions include all other indirect emissions arising across the Group’s value chain that the company
does not directly control. These cover the production of raw materials and goods, transportation, service provision,
waste management, the use of sold products, and other supply‑chain‑related processes.
Biogenic CO₂ is carbon dioxide released from the combustion or decomposition of materials of biological origin
(biomass). Unlike CO₂ from fossil fuels, biogenic CO₂ is not considered a greenhouse gas emission when the biofuel
used is sourced from sustainable, renewable resources.
Consolidated GHG emissions, in thousand tons:
Scope of GHG emissions
2025
2024
CO
2
e
Biogenic CO
2
e
CO
2
e
Biogenic CO
2
e
Scope 1
32,2
118,6
36,4
118,5
Scope 2 (location-based)
26,1
25,5
(a)(b)
Scope 2 (market-based)
22,0
38,5
(a)(c)
Scope 3
116,1
353,2
98,4
(a)(d)
345,3
Total location-based
174,4
471,8
160,3
(a)(e)
463,8
Total market-based
170,3
471,8
173,3
(a)(f)
463,8
(a) Due to updated emission factors, the 2024 GHG emissions were recalculated retrospectively; therefore, the values presented in this publication differ from those reported in the previous report.
(b) Value adjusted from 30,0 (change -4,5). (c) Value adjusted from 39,1 (change -0,6). (d) Value adjusted from 95,4 (change -+3,0). (e) Value adjusted from 161,8 (change -1,5).
(f) Value adjusted from 170,9 (change +2,4).
Minor adjustments were made to the 2024 data in the 2025 report to better align with applicable requirements. The
corrections were applied to Scope 2 and Scope 3 calculations – updated emission factors were used for electricity
and for emissions related to fixed assets. Scope 1 GHG emissions decreased by 12% in 2025. This change was
driven by a slight increase in the use of biofuel, but primarily by the implementation of energy efficiency measures.
Scope 2 emissions (market‑based method) decreased by as much as 43% compared to 2024, as significantly more
electricity from renewable sources was purchased in 2025. The Group plans to continue increasing the share of
renewable energy. Scope 3 GHG emissions consist of 15 different categories. The Group identified the relevant
categories and performed the GHG calculations. In 2025, Scope 3 emissions increased by 18% compared to 2024.
This change was not driven by a deterioration in the Group’s operational performance but by structural changes – one
category was partially expanded, and the main factor was the addition of a new company in Germany to the Group.
In 2025, an additional category – employee commuting – was also included in the calculations. The following
categories are not applicable due to the absence of related activities: upstream leased assets, downstream leased
assets, franchises, and investments.
57
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Scope 3 GHG emission categories, in thousand tons:
Category
Source of emission
2025
2024
CO
2
e
%
CO
2
e
%
1
Purchased goods and services
61,6
53,0%
52,4
54,3%
2
Capital goods
6,6
5,7%
3,4
(a)(b)
3,5%
3
Fuel- and energy-related activities
18,1
15,6%
16,6
(a)(c)
18,8%
4
Upstream transportation and distribution
5,1
4,4%
5,1
5,2%
5
Waste generated in operations
0,9
0,8%
0,9
0,9%
6
Business travel
0,1
0,1%
0,1
0,1%
7
Employee commuting
0,7
0,6%
-
-
9
Downstream transportation and distribution
13,5
11,6%
11,5
11,7%
10
Processing of sold products
5,1
4,4%
3,1
3,2%
12
End-of-life treatment of sold products
4,4
3,8%
5,3
5,4%
Total
116,1
100,0%
98,4
(a)(d)
100,0%
(a) Due to updated emission factors, the 2024 GHG indicators were recalculated retrospectively; therefore, the values presented in this publication differ from those reported in the previous report.
(b) Value adjusted from 2,2 (change +1,2). (c) Value adjusted from 14,8 (change +1,8). (d) Value adjusted from 95,4 (change +3,0).
Almost 70% of all Scope 3 emissions come from the purchased goods and services and transportation categories,
meaning emissions generated during the production of the raw materials we purchase, their transportation, and the
transportation of our finished products. The remaining categories – such as further processing of sold products or
their end‑of‑life treatment – account for slightly more than 30% of Scope 3 emissions.
GHG emissions intensity by net income (Net Income 2.2 Financial and operating performance of the Group and the
Company):
GHG intensity per net revenue
2025
2024
Thousand t CO
2
e /
million EUR
Thousand t CO
2
e /
million EUR
Total GHG emissions (location-based) per net revenue
0.708
0.753
(a)(b)
Total GHG emissions (market-based) per net revenue
0.691
0.814
(a)(c)
(a) Due to updated emission factors, the 2024 GHG indicators were recalculated retrospectively; therefore, the values presented in this publication differ from those reported in the previous report.
(b) Value adjusted from 0.760 (change -0,007). (c) Value adjusted from 0.802 (change +0,012).
In 2025, GHG intensity per net revenue decreased under both the location‑based and market‑based methods
compared to 2024. This indicates more efficient resource use and an improved ratio between revenue and emissions.
GHG removals and GHG mitigation projects financed through carbon credits (E1-7)
The Group did not finance any mitigation-related projects outside its value chain during the financial year and did not
purchase carbon credits. The Group does not use carbon pricing.
Internal carbon pricing (E1-8)
Group companies do not have a carbon pricing system.
Anticipated financial effects from material physical and transition risks and potential climate-related
opportunities (E1-9)
The Group assessed the expected financial impact of climate‑related physical and transition risks and opportunities.
The assessment shows that the energy transition has the highest material significance—particularly fluctuations in
green energy prices and the necessary investments in energy efficiency and electrification. These factors drive both
increased cost risks and substantial long‑term financial opportunities related to cost reductions and greater stability in
energy consumption. The impact of physical climate risks remains limited in the short term, but their importance grows
over the long term, especially in the context of supply chain and infrastructure resilience.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
ESRS E2 Pollution
Description of the processes to identify and assess material pollution-related impacts, risks and
opportunities (IRO-1)
In accordance with the established legal requirements, our production sites are subject to Environmental Impact
Assessment (EIA) screening procedures, which assess the potential impacts and risks related to pollution. The EIA
procedures involve consultations with interested parties such as local communities, public authorities, etc. During the
reporting year, a public presentation on the planned construction of the anaerobic reactor was organised, during which
the affected communities were able to express their views and comments. In addition, in accordance with the
requirements, the responsible authorities have issued Integrated Pollution Prevention and Control (IPPC) or Pollution
Permits for the sites concerned. This complements our process of double materiality analysis.
Table of significant ESRS sub-topics
The assessment of pollution-related impacts, risks and opportunities identified material topics for the Group's
companies and assessed the impact and financial materiality. Water pollution have been identified as Critical topic for
the Group, while air pollution is considered as Significant topic. Five sub-topics (pollution of soil, pollution of living
organisms and food resources, substances of concern, substances of very high concern, microplastics) were not
identified as material after the assessment.
Subtopic
Impact materiality
Financial materiality
Pollution of air
Significant
Significant
Pollution of water
Critical
Critical
Grigeo Klaipėda AB environmental incident in 2020
The environmental incident occurred in 2020, when it was announced that Grigeo Klaipėda AB released partially
biologically treated wastewater into the Curonian Lagoon through the treated wastewater collector of municipal
company Klaipėdos vanduo AB.
Grigeo Klaipėda AB assumed legal responsibility for this incident, carried out internal inspections and commissioned
international expert investigations to establish, through scientific research, the fact and extent of possible
environmental damage. It also started implementing environmental remedial measures on its own initiative to remove
the pollutants discharged with its wastewater from the natural environment.
Pollutants released into the natural environment with the wastewater of Grigeo Klaipėda AB that was only partially
biologically treated were nitrogen and phosphorus (i.e., water-soluble nutrients of organic origin that are necessary
for every living organism) and BOD
7
(biochemical oxygen demand per 7 days). Pollutants contained in the biologically
untreated wastewater of Grigeo Klaipėda AB are attributable to non-hazardous pollutants that have not had a
significant negative impact on (significant damage to) the water state, biota, and ecosystem of the Curonian Lagoon.
Grigeo Klaipėda AB seeks to cooperate with state authorities in implementing wastewater management solutions and
environmental remedial measures that would remove the allegedly released pollutants from the natural environment,
implement environmental remedial measures (improvement of the state of water of the Curonian Lagoon), restore lost
public confidence, and ensure business resilience in the long run. It is very important to the management of Grigeo
Klaipėda AB that this incident not only becomes a painful lesson for the company, but also prevents the recurrence
of such cases in the future in all economic activities of the country.
Grigeo Klaipėda AB environmental restoration actions after the 2020 environmental incident
In 2021 and in 2022 Grigeo Klaipėda AB assessed scientifically based environmental restoration measures, which
would aim to remove the amount of pollutants (phosphorus, nitrogen and BOD
7
) from the Curonian Lagoon and
contribute to more favourable conditions for the recovery of biological diversity, thereby reducing eutrophication
processes in the Curonian Lagoon. It was determined that the environmental restoration criteria set by the
Environmental Protection Department is best met by the following two environmental restoration measures: reed
removal in the Curonian Lagoon and installation of surface wastewater treatment facilities in Klaipėda city.
The first measure: Cutting and removing reed biomass on the shores of the Curonian Lagoon.
With this measure, the pollutants that Grigeo Klaipėda AB may have allegedly released into the natural environment
would be removed from the Curonian Lagoon. Also, removing the biomass of cut reeds would restore the sandy
shores of the Curonian Spit and the habitats of rare plant and animal species, reduce the amount of organic matter
entering the Curonian Lagoon, mitigating the negative effects of eutrophication. After the restoration of open bays and
the formation of canals, the swamping processes of the shores of the Curonian Lagoon would be eliminated,
recreational space and views of the Curonian Lagoon would open up, and this would increase the area's biological
diversity and recreational potential.
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CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Reed cutting would be carried out over four years from whenever the program is approved by the Environmental
Protection Department.
Grigeo Klaipėda AB carried out two pilot reed‑cutting projects, and their results were validated in the laboratory.
The harvested reeds are used in sustainable ways, in such order of priority:
• Roofing (a new product is being developed, with a service life of about 50 years).
• Biofuel – helps reduce the need for fossil fuels, biogenic CO
2
is released.
• Compost – returned to the natural environment as green waste.
In 2021, based on the conclusions of scientific experts, a plan of environmental restoration measures was prepared
and submitted to the Environmental Protection Department. The plan was subsequently revised several times in
response to the Department’s comments and supplemented with the results of the pilot projects that had been carried
out. However, by the end of 2025, it had still not been approved. Grigeo Klaipėda AB hopes that the Environmental
Protection Department will approve the plan of environmental restoration measures soon, and that once implemented,
the incriminated volume of pollutants will be removed from the natural environment of the Curonian Lagoon.
The second measure. Modernization of treatment facilities of Klaipėdos vanduo AB (preventive measure).
A trilateral cooperation agreement was concluded between Klaipėda City Municipality, Klaipėdos vanduo AB and
Grigeo Klaipėda AB, in which the parties agreed to prepare and implement the construction and operation program
of Klaipėdos vanduo AB surface wastewater treatment facilities. This measure would reduce the entry of oil products,
floating substances, and organic matter into the Klaipėda Strait. This would have a positive impact on reducing the
eutrophication of the Curonian Lagoon.
According to the signed contract, if the Environmental Protection Department approves the plan of environmental
restoration measures, Grigeo Klapėda AB will finance the modernization of No. 7 and No. 8 outlets of the surface
sewage networks managed by Klaipėdos vanduo AB. The surface sewage networks, which need to be modernized,
were chosen considering the position of Klaipėdos vanduo AB, according to which sewage basins No. 7 and No. 8
are among the largest, both in terms of their total area and the area of their surfaces intended for road transport
(streets, driveways, parking lots). The amount of pollutants released through the outlets of these basins is one of the
highest, compared to other basins where treatment facilities have not yet been built. From an environmental point of
view, it is appropriate (necessary) to reduce pollution where it is generated the most. The preliminary value of the
project amounts to EUR 2 million, which would be financed free of charge by Grigeo Klaipėda AB.
Investments in environmental research are essential for sustainable, efficient and future-proof environmental
management. Back in 2020, in order to fulfil its promise to the public to fund research to determine the condition of
the Curonian Lagoon water and to carry out environmental social initiatives, Grigeo Klaipėda AB signed a support
agreement with Klaipėda University for a targeted EUR 500,000 support for the development of solutions to reduce
environmental pollution in the Klaipėda region and for the training of environmental professionals. Under the terms of
the agreement, a five-year programme of environmental action is being implemented, focusing on long-term value
creation. Under the terms of the contract, a five-year programme of environmental action is being implemented,
focused on long-term value creation. A total of EUR 464 000 has been transferred to Klaipėda University by the end
of 2024. Klaipėda University is using the funds for the following research programmes: The first is the development
and implementation of a monitoring system for ambient air pollution (industrial and transport pollutants, volatile organic
compounds) in the city of Klaipeda. The second is the application of advanced treatment technologies for the
containment and removal of hazardous organic micro-pollutants in the city's wastewater treatment plants. The third is
the provision of support for undergraduate and postgraduate projects for the preparation of theses. The support
agreement has been fulfilled, and the intended objectives have been achieved.
Policies related to pollution (E2-1)
The disclosures are provided in ESRS 2 General Information, Group Environmental Policy section.
Actions and resources related to pollution (E2-2)
To monitor progress and to involve and inform stakeholders, we have introduced public monitoring platforms where
information can be tracked not only on discharges, but also on the results of direct, periodic air measurements by an
independent supplier. In order to achieve the highest environmental standards, we have added automated processes
to our existing environmental systems, which not only make it easier to track data, but also make it available to the
public. The monitoring platforms allow residents to see periodic updates of air test data showing the carbon emissions
from boiler plants.
GRIGEO TISSUE UAB MONITORING PLATFORM and GRIGEO KLAIPĖDA AB MONITORING PLATFORM
Emergency and non-standard emergency response plans are publicly available on the Group’s website
(www.grigeo.com).
Our actions and resources are also included in the disclosure on the AB Grigeo Klaipėda 2020 environmental incident.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Targets related to pollution (E2-3)
Water pollution is a critical topic for the Group. The commitment to reduce water pollution, i.e. to improve the quality
of wastewater by reducing wastewater volume per unit of production, is included as one of the Group's objectives in
its strategy.
Target
Unit of measurement
Base year
2021
Interim result
in 2025
Change
Target for 2026
Effluent reduction
m
3
/ton of production
7.1
6.7
-5.9 %
-17.0 %
Pollution of air, water and soil (E2-4)
Pollution of water
Water is used in almost all stages of paper (both tissue and containerboard) production. In addition, hardboard
production process also heavily depends on water supply. The quality of industrial wastewater is characterized by
biochemical oxygen consumption (BOD
7
), suspended solids (SS), total nitrogen (N), total phosphorus (P). BOD
7
represents the amount of dissolved oxygen needed (i.e., demanded) by aerobic biological organisms to break down
organic material present in each water sample at a certain temperature over a specific time. This is an indicator of
organic contamination. A long and strong fibre is required to produce high-quality tissue paper, cardboard, and wood
panels. The fibre in paper products going through repetitive recycling cycles deteriorates over time becoming weaker,
shorter and unsuitable for papermaking, i.e., during paper web formation, a large part of the fibre enters the
wastewater as SS and settles as sludge. In 2025, we recycled 147 thousand tonnes of recovered paper, which
contains various additives and impurities. All these impurities become our waste and water pollution.
Monitoring of pollutants discharged with wastewater is carried out in accordance with the approved environmental
monitoring programme at least once per month. Wastewater samples are analysed in laboratories authorised to
perform such testing, where their pollution parameters are determined.
Pollution by operating sites in tonnes:
Pollutant, t
Grigiškės*
Niedomice**
Klaipėda***
2025
2024
2025
2024
2025
2024
BOD
7
312
366,2
4,9
2,1
1580,1
2985,5
Nitrogen (N)
-
-
0,4
0,7
35,3
33,9
Phosphorus (P)
-
-
0,1
0,03
3,1
4,0
Suspended solids (SS)
174,6
422,4
6,0
8,5
303,9
224,2
Total
486,6
788,6
11,4
11,3
1922,4
3247,6
*Grigeo Tissue UAB, Grigeo Baltwood UAB, Grigeo Packaging UAB, Grigeo Recycling UAB
**Grigeo Tissue sp zoo
***Grigeo Klaipėda AB
Immediate and properly managed wastewater management is an essential step in reducing the impact of water
pollution. Innovative wastewater treatment technologies contribute to safer and more sustainable water use. The
Group has invested in a wastewater evaporator in Vilnius, which treats wastewater and reduces the level of
contamination of wastewater. After treatment, the concentration of suspended solids (SS) is <350 mg/l, the
concentration of BOD
7
is <800 mg/l, and the concentrated organic matter is returned to the production process of
hardboard, reducing the amount of process water used in the process.
The anaerobic bioreactor mentioned under the E1 ETAS Climate Change theme will not only reduce GHG emissions,
but will also allow the treatment of wastewater using micro-organisms, which will reduce the pollution of industrial
wastewater with BOD
7
, COD and suspended solids, and thus reduce the load on the wastewater treatment plant of
"Klaipėdos vanduo" AB. In the summer of 2025, the start‑up and commissioning of the bioreactor began, and the
annual BOD₇ load in Klaipėda decreased almost twofold compared to 2024.
Pollution of air
Grigeo Tissue UAB and Grigeo Klaipėda AB are key emitters, as these two companies operate boiler houses. Grigeo
Tissue sp zoo also operates a boiler house, but compared to the Group's boiler houses operating in Lithuania, its
power is lower, as are its air emissions. Grigeo Tissue UAB supplies steam to Grigeo Baltwood UAB which does not
burn any sort of fuels needed to produce hardboard; therefore, air emissions arise only from the production areas.
Emissions from stationary sources of air pollution are monitored at specified intervals by a certified laboratory.
Monitoring of air emissions shall be carried out in accordance with an approved Environmental Monitoring Programme.
Depending on the pollutant, measurements shall be carried out between 1 and 4 times a year, the method of
measurement being chosen according to the type of pollutant (counting, gas chromatography, etc.). In 2025, a slight
increase in particulate matter (other) was observed at UAB Grigeo Tissue, which can be linked to the higher volume
of products converted into final goods. In 2025, an increase in air emissions was also recorded at AB Grigeo Klaipėda,
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
associated with the start‑up and commissioning works of the bioreactor initiated that year. It is expected that once the
bioreactor commissioning is completed, air emission levels will decrease.
Air emissions in tonnes per year (according to the Air Pollution Accounting Report 2025):
Pollutant, t
Grigeo Baltwood
UAB
Grigeo Tissue
UAB
Grigeo Tissue sp zoo
Grigeo Klaipėda
AB
2025
2024 m.
2025 m.
2024 m.
2025 m.
2024 m.
2025 m.
2024 m.
Nitrogen oxides (NO
2
)
-
144,8
145,4
2,9
2,4
123,1
125,5
Sulphur dioxide (SO
2
)
-
-
7,3
7,3
0,5
-
6,1
6,2
Carbon monoxide (CO)
-
-
202
203,5
3,9
-
170,3
173,3
Particulate matter from the
combustion of solid, liquid or
gaseous fuels or waste
-
-
0,9
26,6
0,3
-
1,7
0,9
Particulate matter (other)
2,2
2,1
12,5
10,6
0,2
0,3
3,7
3,3
Non-methane volatile organic
compound (NMVOC)
9,1
8,3
0,003
0,001
0,3
0,9
27,6
14,4
Ammonia (NH3)
2
2
-
-
0,009
0,007
2,7
2,3
In the Group’s operations, fuel is burned to produce thermal energy. During combustion, various substances are
released into the ambient air, and their quantities are continuously monitored and recorded. To reduce emissions, the
Group uses air‑cleaning filters (multicyclones) and a condensing economizer, which not only lowers emissions but
also enables the recovery of part of the thermal energy.
In 2024, additional electrostatic filters were installed in the biomass boiler houses in Grigiškės (investment value –
approximately EUR 1.2 million). Thanks to these filters, particulate matter emissions were further reduced, contributing
to improved air quality and reducing potential negative impacts on human health.
In 2025, the reduction in particulate matter from the combustion of solid, liquid, or gaseous fuels was driven by the
increased efficiency of the filters – after the installation of electrostatic filters, the overall efficiency of the air‑cleaning
equipment in the Grigiškės boiler houses reached 95%. The change was also influenced by an updated methodology
for calculating emitted pollutants.
It should be noted that in 2024 and previous years, the particulate matter figures for Grigeo Tissue UAB were reported
without accounting for the efficiency of the boiler house air‑cleaning equipment.
Anticipated financial effects from pollution-related, risks and opportunities (E2-6)
The Group assessed the expected financial impact of pollution‑related risks and opportunities. Water pollution risks
have the highest material significance, driven by the need to invest in modern wastewater treatment solutions,
potential pollution taxes, and ongoing legal proceedings. These risks are highly likely and carry a critical financial
impact. At the same time, the planned investments create significant long‑term opportunities to reduce costs, improve
operational efficiency, and strengthen the Group’s environmental performance and reliability.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
ESRS E3 Water and marine resources
Description of the processes to identify and assess material water and marine resources-related impacts,
risks and opportunities (2 ESRS IRO-1)
Water is an essential resource in the paper industry and is used in almost all stages of paper production (both tissue
and paperboard). Similarly, the production process of hardboard is highly dependent on water supply. This is one of
the most important sources in our operations. We clearly understand that the use of water in our production processes
has an impact not only on the environment but also on local communities. Despite the need to use water in the paper
industry, it is important to look for sustainable water use strategies and efficient technologies to minimise the impact
on the environment and water resources, which is why one of our most important strategies is to preserve nature. In
order to meet our objectives, we have strengthened our internal processes for rational water use and closely monitor
the volume of wastewater discharges and the level of pollutants, and we strive to find sustainable solutions in water
management.
Large volumes of water are used in production, and withdrawal procedures are subject to Environmental Impact
Assessment (EIA) screening procedures, where necessary, to assess potential impacts and risks.
Table of significant ESRS sub-topics
The impact, risk and opportunity assessment identified significant themes for the Group's companies and the
assessment of impact and financial materiality is presented in the table below. Water discharges into the oceans and
extraction and use of marine resources were not identified as material due to the non-existence of such activities in
the Group.
Subtopic
Impact materiality
Financial materiality
Water withdrawal
Important
Important
Water discharge
Significant
Critical
Policies related to water and marine resources (E3-1)
The disclosures are provided in ESRS 2 General Information, Group Environmental Policy section.
Actions and resources related to water and marine resources (E3-2)
Water is used in both paper and fibreboard production lines in the Group's companies and plays a key role in our
business:
• It acts as a binding agent for the fibre and is needed in the cleaning and de-watering stages of the production
process.
• Water is used as a solvent.
• Carries energy in the form of vapour and in the cooling process equipment.
We are looking for more efficient water management methods to reuse water and reduce the amount of water
withdrawn by our Group. We are also working to ensure responsible management of water as a key resource in the
supply chain. Surface water is used subject to additional treatment as required and used in technological processes.
Our aim to conserve water as much as possible and to reduce its use in our production processes is reflected in our
environmental policy. Processes related to water use and wastewater management are described in our operational
documents such as the IPPC (Integrated Pollution Prevention and Control), subject to continuous monitoring and
control, and reported to the responsible authorities.
To reduce water consumption, it is important to promote conscious use and resource‑efficient habits at both the
individual and business levels. It is also essential to invest in advanced technologies that enable more efficient water
use in industry, agriculture, and other sectors.
Targets related to water and marine resources (E3-3)
The Group’s strategic objectives do not include a separate target for water consumption. Reducing water use is one
of the components of the wastewater‑reduction objective.
Water consumption (E3-4)
The main sources of water used in our production processes are the Vokė River and the Curonian Lagoon. Drinking
water is also used, but it accounts for only up to 3% of the Group’s total water demand. Water withdrawal data are
calculated using meter readings or other measurement data.
To avoid potential disruptions in the supply of technical water due to the removal of the Vokė dam, UAB Grigeo Tissue
carried out, in 2023, and coordinated with the competent authority, a screening procedure for the planned economic
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CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
activity under the environmental impact assessment requirements for the construction and operation of a new water
intake structure, pumping station, and water supply network at Vilniaus g. 10, Grigiškės, Vilnius City Municipality.
The project foresees abstracting water from the Neris River. It includes the design of a water intake structure (intake
mouth, supply pipeline, and distribution chamber), a water pumping station, and water supply pipelines connecting to
the existing factory water network. Once surface water from the Neris River is used, the existing pumping station will
no longer be used to supply surface water from the Grigiškės pond. The Grigiškės pond maintenance and use rules
will need to be amended to remove Grigeo Tissue UAB as a water user. The existing pumping station will not be
demolished but will remain in place and may be used only in emergency or abnormal (non‑conforming) operating
conditions. The planned start of operation of the new water intake, pumping station, and water supply network is
2026‑04‑26.
The installation and commissioning of the new water intake and pumping station will not change Grigeo Tissue’s UAB
technological production processes, wastewater management infrastructure, or related solutions. The project only
changes the water withdrawal point – discontinuing the current withdrawal from the Vokė dam and introducing a new
withdrawal point from the Neris River.
Group's water withdrawal (thousand m
3
):
Tissue paper
Hardboard
Containerboard and
packaging
Group
2025
2024
2025
2024
2025
2024
2025
2024
Water withdrawal
684,8
654,3
188,4
196,1
1037,9
994,9
1911,1
1845,2
Water intensity, m
3
per million EUR net revenue
7,8
8,7
The surface water we use must be filtered and purified before the production cycle begins. In addition, treating the
water and discharging it to third-party treatment facilities is costly and strictly regulated. We are continuously improving
the recycled water cycle during production so that we can reuse water several times. Re-use rates vary depending on
product specifications, but these figures are not currently recorded.
Water discharge (thousand m
3
):
Tissue paper
Hardboard
Containerboard and
packaging
Group
2025
2024
2025
2024
2025
2024
2025
2024
Untreated effluent to Klaipėdos vanduo AB
treatment plant
-
-
-
-
941,5
888,5
941,5
888,5
Treated effluent to Vilniaus vandenys UAB
treatment plant
438,3
437,6
195,9
199,8
7,1
7,8
641,3
645,2
Wastewater to urban treatment plants*
48,8
35,8
-
-
0,4
0,3
49,1
36,1
Total
487,1
473,4
195,9
199,8
949,0
896,6
1 632,1
1 569,8
*Not Vilnius or Klaipėda water treatment plants.
Anticipated financial effects from water and marine resources-related impacts, risks and opportunities (E3-5)
The Group assessed the expected financial impact of risks and opportunities related to water and marine resources.
The highest material significance is attributed to wastewater discharge risks, driven by large wastewater volumes,
dependence on third parties, and increasingly stringent requirements. These risks are highly likely and carry a critical
financial impact. At the same time, investments in the modernisation of wastewater networks and treatment solutions
create significant opportunities to reduce costs, improve process efficiency, and strengthen the Group’s environmental
performance and reliability.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
ESRS E5 Circular economy
Description of the processes to identify and assess material resource use and circular economy-related
impacts, risks and opportunities (IRO-1)
Circular economy is a commitment to sustainable development, reducing environmental impacts and making efficient
use of productive resources. The Group's activities are oriented towards the circular economy. We strive to use
resources as efficiently as possible and promote recycling processes by recycling collected waste paper and returning
it to the life cycle as a new product, thus reducing the negative impact. We also invest in energy efficiency solutions,
such as retrofitting and the use of energy-efficient technologies, to reduce carbon emissions and energy consumption.
We operate in accordance with an emissions or IPPC permit, through which we assess the risks and impacts of our
activities. The increasing focus on environmental issues and the circular economy allows us to assess and take
advantage of opportunities in the areas of recycling and renewable resources.
Table of significant ESRS sub-topics
In assessing the impacts, risks and opportunities related to the circular economy, material topics have been identified
for the Group's companies and an assessment of the impact and financial materiality has been carried out. The
Circular Economy subtopics of resource inflows and waste are identified as material at the Group level. Waste
minimisation and waste collection/ recycling have been identified as the most significant topics for which we have set
targets at the Group level.
Subtopic
Impact materiality
Financial materiality
Resources inflows, including resource use
Significant
Significant
Waste
Significant
Critical
Policies related to resource use and circular economy (E5-1)
The disclosures are provided in ESRS 2 General Information, Group Environmental Policy section.
Actions and resources related to resource use and circular economy (E5-2)
In carrying out our activities, we follow the waste hierarchy principles (prevention – reuse – recycling – other recovery,
e.g., energy recovery – and disposal), giving priority to waste prevention or reduction and the lowest priority to
disposal. Waste disposal is identified as one of the most significant topics at the Group level and is included as a
strategic objective – to reduce the amount of waste sent for disposal.
We invest in a centralized system for collecting production residues and waste in tissue paper manufacturing, where
offcuts are automatically collected and baled. This contributes not only to the circular economy but also improves
occupational safety and saves space in the production area.
All recyclable paper/ cardboard production residues and waste generated in our operations are returned for recycling
and used in the production of new products. We also reuse or return suitable packaging materials – such as cardboard
cores, IBC containers, wooden pallets, and others – to suppliers.
To reduce the amount of waste sent to landfill and increase the volume of recyclable waste, in 2025 the company
invested in a mechanism for cutting and removing wires from recovered paper bales (investment value approximately
EUR 0.5 million). The wire‑removal mechanism was installed in the second half of 2025, and commissioning works
began. Already during the commissioning stage, more than 32 tonnes of metal waste were separated and transferred
to a waste recycler. It is estimated that once the project is fully implemented, approximately 400 tonnes of wire per
year will be separated and recycled from the waste stream generated during recovered paper processing.
Targets related to resource use and circular economy (E5-3)
In order to use resources responsibly and strengthen the application of circular‑economy principles, we work
consistently on waste prevention, sorting, and identifying the most appropriate methods of reuse or recovery. To this
end, we not only optimise waste management within our operations but also actively encourage other market
participants to sort waste properly and deliver it for recycling. These actions help reduce the volume of waste sent for
disposal and increase the use of secondary raw materials.
One of our key circular‑economy objectives is to steadily increase the collection and sorting of recovered paper. This
goal directly contributes to reducing the need for primary raw materials and improving circular material‑use indicators.
In 2025, we achieved significant progress – the volume of recovered paper collected increased by more than 60%
compared to the 2021 baseline year, already exceeding the 2026 target of increasing this indicator by 50%.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Target
Unit of measurement
Base year
2021
Interim
result in
2025
Change
Target for
2026
1.
Effluent reduction
m
3
/ton of production
53,0
31,7
-40,2 %
-9,0%
2.
Increasing waste-paper collection and sorting
In thousands of tons
53,0
85,9
+62.1 %
+50,0%
In the same year, Grigeo Recycling UAB purchased a waste‑collection truck designed for the separate collection of
paper and plastic packaging. This investment enables even small companies to sort waste conveniently, expands
access to circular‑economy solutions, and contributes to the continued growth of secondary‑raw‑material collection.
Resource inflows (E5-4)
Raw materials
We work to ensure sustainable and responsible sourcing of raw materials and supplies. Almost all of the fibre (pulp,
wood) we produce and buy is FSC
®
(The Forest Stewardship Council) Chain of Custody certified. FSC
®
is an
independent international certification organisation that promotes environmentally sound, socially responsible and
economically viable forest management. We prefer the FSC
®
certification system and encourage all our suppliers to
seek this certification.
The recovered paper used in recycling processes is an important raw material for our Group as a whole, and this is
reflected in our strategic objectives.
Raw materials used (thousand tonnes):
Tissue paper
Hardboard
Containerboard
and packaging
Group
2025
2024
2025
2024
2025
2024
2025
2024
Renewable materials
Raw materials
83,50
72,15
120,54
115,24
140,03
143,45
344,07
330,84
Additional materials/ raw materials
-
-
-
-
-
-
-
-
Packaging
15,72
12,85
1,86
1,82
3,01
2,96
20,59
17,64
Total renewable materials
99,22
85,00
122,40
117,06
143,04
146,41
364,66
348,47
Non-renewable materials
Raw materials
-
-
-
-
-
-
-
-
Additional materials/ raw materials
1,37
1,23
1,04
1,14
1,77
1,54
4,18
3,92
Packaging
1,77
1,42
0,02
0,01
0,04
0,03
1,82
1,46
Total non-renewable materials
3,14
2,65
1,05
1,15
1,80
1,58
6,0
5,38
Total materials used
102,36
87,65
123,45
118,21
144,85
147,99
370,66
353,85
% of renewables
97%
97%
99%
99%
99%
99%
98%
98%
Data extracted from accounting documents.
On the Group level, only 2% of all raw materials used were non-renewable. All tissue paper and manufactured
corrugated paper boxes come in some plastic packaging. This packaging makes a large proportion of non-renewable
materials in our Group. We are cooperating closely with our packaging suppliers to reduce the total impact of non-
renewable packaging.
Composition of the raw materials used in the production of the Group's products and steam:
2025
2024
Waste paper
29%
30%
Wood
24%
24%
Cellulose
10%
9%
Biomass
25%
25%
Natural gas
2%
2%
Renewable packaging
4%
4%
Other renewable materials
5%
5%
Non-renewable materials
1%
1%
Total
100%
100%
Biofuels and natural gas are used as raw materials for the production of steam, which is needed in all the Group's
production facilities. This represents 27% of the total inputs consumed (converted into tonnes).
Resource outflows (E5-5)
Waste
In 2025, we consumed 370,7 thousand tonnes of materials for production. In the same year, our operations generated
23,9 thousand tonnes of waste. Our production process is unique in that a large share of the waste generated can be
returned to the production cycle within the Group. More than half of all waste generated across the Group was returned
to production in the form of materials.
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for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
For the waste that cannot be avoided and cannot be reused in our production processes, we apply the principles of
the waste hierarchy. Nevertheless, a portion of waste is still directed to disposal. In 2025, the largest share of disposed
waste consisted of Grigeo Klaipėda’s AB recovered‑paper sorting residues – accounting for 76% of all waste sent for
disposal. These residues arise together with the incoming recovered paper. They are disposed of through incineration,
and their energy value is used for energy generation.
The total amount of waste sent for disposal remains one of our strategic challenges. Therefore, we continue to invest
in improving recovered‑paper processing equipment and strengthening quality control of collected raw materials. The
higher the quality of paper waste entering our facilities, the greater the share that can be effectively recycled, helping
reduce resource waste, waste volumes, and related pollution.
To improve the quality of collected paper waste, it is also important for us to contribute to public education on proper
waste sorting. Only properly sorted materials can become high‑quality secondary raw materials that can be returned
to the production cycle, thereby supporting circular‑economy objectives.
During wastewater treatment, organic material – sludge – naturally forms. Currently, all wastewater generated by
Grigeo Klaipėda AB is transferred for treatment to Klaipėdos vanduo AB under contract. All sludge generated during
the wastewater treatment process is broken down, dried, and transferred to a waste handler by Klaipėdos vanduo AB.
At the Grigiškės production site, the fibre sludge generated from Grigeo Tissue UAB wastewater is processed and
delivered to other users for compost production, land reclamation, and similar purposes. In 2025, 5,6 thousand tonnes
of fibre sludge were generated during wastewater treatment.
Waste generated (tonnes):
Tissue paper
Hardboard
Containerboard and
packaging
Group
2025
2024
2025
2024
2025
2024
2025
2024
Hazardous waste
50
77
20
20
113
98
183
195
Non-hazardous waste
3 052
2 582
5 793
7 787
14 860
14 882
23 705
25 251
Waste diverted to other operations (tonnes):
2025
2024
Waste recovery operation
Preparation for reuse
-
-
Recycling
15 075
16 395
Other recovery operations
-
-
Total recover
15 075
16 395
Waste treatment
Incineration
7 862
8 413
Landfill
952
638
Other disposal operations
-
-
Total treated
8 814
9 051
Non-recycled waste
37%
36%
Data from direct measurement, weighing of waste delivered (using GPAIS data)
The Group continuously seeks opportunities to reduce the amount of waste sent for disposal; however, some waste
still cannot be avoided and is therefore directed to incineration or landfill. One of the main reasons is that not all waste
generated can currently be recycled within the Lithuanian market or in neighbouring regions. In addition, we assess
economic feasibility: transporting large volumes of waste over long distances is not always a sustainable or
economically rational solution.
An important step in reducing the volume of waste sent for disposal is Grigeo Klaipėda’s AB project to install a
mechanism for cutting and removing wires from recovered‑paper bales. Once implemented, this solution is expected
to reduce the amount of waste sent to landfill by up to 400 tonnes per year. This will significantly contribute to our
goals of reducing waste disposal and increasing the use of secondary raw materials.
Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities
(E5-6)
The Group assessed the expected financial impact of risks and opportunities related to resource use and the circular
economy. The highest material significance is attributed to waste generation and disposal risks, driven by increasingly
stringent recycling requirements, rising landfill taxes, and the need to secure substantial bank guarantees for waste
management activities. These risks are highly likely in the short‑ and medium‑term and have a critical financial impact
due to significantly increasing waste management costs. At the same time, investments in enhanced recycling,
process efficiency, and circular economy solutions create long‑term opportunities to reduce costs, optimise raw
material use, and strengthen the Group’s operational sustainability.
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CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
7.3. Social information
ESRS S1 Own workforce
Interests and views of stakeholders (ESRS 2 SBM-2)
The disclosures are provided in ESRS 2 General Information Interests and views of stakeholders section.
Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2
SBM-3)
Employees are a vital part of any organisation, as their contribution directly influences the efficiency and overall
success of the company. These people not only deliver the organisation's objectives but also contribute to its growth
and innovation. A successful company is only as successful as the commitment, talent and motivation of its workforce.
In addition to their specific roles, employees shape the company's culture and work environment. Their cooperation,
ability to overcome challenges and willingness to learn new things are essential for the success of the organisation.
For optimal performance and long-term success, it is important to emphasise employee well-being, promote their
professional development and create a supportive working environment. In order to ensure the well-being of
employees, the Group continuously monitors and assesses the impacts, risks and opportunities relating to employees.
An employee engagement survey is conducted each year to identify areas of strength or areas for improvement. The
Group also prioritises the health and safety of its employees in its operational activities and continuously assesses
the impacts and risks to prevent accidents.
Table of significant ESRS sub-topics
When assessing impacts, risks, and opportunities, the material topics for the Group’s companies were identified, and
both impact and financial materiality assessments were carried out. Health and safety have been identified as the
most critical sub-topic for the Group's operations in the assessment of the sub-topics and sub-sub-topics of the own
workforce.
Topic
Sub-topic
Impact materiality
Financial materiality
Working conditions
Adequate wages
Significant
Important
Working time
Important
Important
Collective bargaining, including rate of
workers covered by collective
agreements
Informative
Important
Work-life balance
Important
Informative
Health and safety
Critical
Critical
Equal treatment and
opportunities for all
Gender equality and equal pay for work
of equal value
Important
Informative
Training and skills development
Significant
Significant
Measures against violence and
harassment in the workplace
Significant
Informative
Diversity
Important
Informative
Policies related to own workforce (S1-1)
The Group's commitment and targeted management of material topics is described in the Code of Conduct, the
Occupational Health and Safety, Equal Opportunities and the Prevention of Violence and Harassment policies which
are described in more detail in the General Information section of ESRS 2, Group policies. Internal communication
and training are in place to ensure that employees understand and adhere to the organisation's objectives, values
and policies, thereby contributing to the success of the organisation.
Processes for involving own workers and workers’ representatives in addressing impact‑related matters
(S1‑2)
Communication with employees is carried out systematically, ensuring timely and transparent dissemination of
information about key processes and decisions within the Group through the SharePoint system and other internal
communication channels. Employee opinions and feedback are collected through periodic surveys conducted via
internal channels, and relevant information is also shared during daily meetings. Employees have the possibility to
report concerns or potential violations anonymously.
The Group’s companies organise internal training sessions led by external experts on relevant industry and
operational topics. Training sessions and presentations are delivered in both Lithuanian and English. In addition,
e‑learning programmes are implemented, enabling employees to enhance their professional knowledge and
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CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
competencies remotely and with flexible scheduling. Depending on job‑specific requirements, employees are
assigned mandatory training, with clear communication to the target audience, appropriate preparation of training
content, and systematic monitoring of participation and completion.
When preparing or updating the remuneration system of the Group’s companies, the information and consultation
procedure with employee representatives is carried out in accordance with applicable legal requirements.
Processes to remediate negative impacts and channels for own workers to raise concerns (S1-3)
The Group has an occupational health and safety register to record incidents, accidents and unsafe situations that
may lead to incidents or accidents. All employees of the Group can keep a record of these incidents, thus ensuring
that all relevant incidents are recorded and dealt with appropriately. This tool reinforces the safety culture within the
company. Encouraging employees to take an active part in the health and safety process creates a safer working
environment where everyone feels responsible for their own safety and that of their colleagues. In addition, the register
provides the opportunity to track statistics, which is essential for analysing the frequency of incidents, causes and
locations of unsafe situations.
Additional information on communication channels is disclosed in the Business Ethics section of ESRS G1, Corporate
Culture and Business Ethics Policy.
Taking action on material impacts on own workforce, and approaches to mitigating material risks and
pursuing material opportunities related to own workforce, and effectiveness of those actions (S1-4)
Employee engagement survey
Our long-term success is based on engaged and motivated people. As an employer, we strive to grow with our people.
Each year we conduct an employee engagement survey to determine the current level of engagement of our
employees, to assess how well our employees feel we are using employee engagement opportunities in the
organisation, to identify the strengths of our employees' experiences and to identify areas for improvement that are a
priority to maintain and strengthen employee engagement. Employee engagement is the responsibility of the HR
department.
Results of the annual survey:
Tissue paper
Hardboard
Containerboard and
packaging
Group
2025
2024
2025
2024
2025
2024
2025
2024
Engaged
47%
58%
62%
61%
49%
50%
48%
53%
Satisfied
69%
81%
81%
77%
72%
84%
72%
82%
Not engaged
6%
1%
0%
1%
6%
1%
5%
1%
In 2025, the Group’s overall employee engagement score reached 48%, which is 5 percentage points lower than in
2024. This fluctuation was driven by lower engagement levels at the newly acquired plant in Poland and in several
companies in Lithuania.
The results of engagement survey are presented and discussed with employees, which:
• Sets a direction of working conditions’ improvement.
• Helps prepare/develop training programs.
• Provides valuable insights on wage and benefit system modification.
• Gives us a better understanding on the competence of a manager.
We encourage and strive to create the conditions to our employees to express their observations, complaints, and
deal with any work-related issues as soon as they occur.
Improving the employee engagement
The survey results showed that employees’ most positive experiences highlight the strengths of our organisational
culture. The study also identified three priority areas for improvement, which the Group’s companies are focusing on
to enhance employee engagement. The results indicate that both the most positively rated aspects and the areas for
improvement have improved compared to the previous year. The Group’s companies continue to implement an
improvement plan that helps maintain and further increase employee engagement. Significant attention is devoted to
strengthening collaboration and feedback culture. The development of managers and specialists, as well as internal
career opportunities, is also considered one of the priority areas for increasing employee engagement.
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CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Most positive evaluations and areas for improvement:
Positive
Negative
2025
2024
2025
2024
Most positive evaluations
I believe that our organisation will be successful in the future
74%
83%
7%
3%
My colleagues are always ready to help with work-related questions when needed
78%
81%
5%
3%
A positive and friendly atmosphere prevails in my department
71%
75%
9%
6%
I have enough freedom to independently solve issues directly related to the performance of
my work.
69%
73%
10%
10%
The goals and tasks thar are set for me are realistic
67%
72%
9%
7%
Positive
Negative
2025
2024
2025
2024
Areas for improvement
The organization has attractive professional growth opportunities for me
41%
47%
34%
29%
My salary is fair compared to the salary received by specialists in a similar field in our country
43%
45%
32%
30%
To achieve organizational goals, departments/groups cooperate effectively
41%
45%
30%
25%
Dialogue and feedback
We understand the meaning of feedback as a very important and significant work for the manager, the employee, and
the company. The feedback is given to employees at all levels and is always based on gender equality and other non-
discrimination grounds at the Group companies. The feedback is provided in the form of performance discussion,
which aims to discuss employee performance, career perspectives and development expectations, strengthening
employee motivation to pursue new goals actively, thus contributing to the good performance of the Group.
The performance objectives of the Group companies are set for the year, usually during the strategic session of the
top management while using X matrix strategy development tool. Objectives are delegated in departments to
employees of all levels. Objectives are measured by setting KPIs (key performance indicators) and performance is
periodically reviewed. The periodicity of the discussion is determined by the nature of the objectives at different levels
of organisation, in the position groups: for managers, the performance is discussed during the annual performance
evaluation, for specialists – quarterly, for workers – daily and monthly during the meetings, while training and
instructing. The results of the performance evaluation and feedback interview are completed and confirmed in the
goal evaluation forms.
Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities (S1-5)
The Group's strategic objectives include three social aspects related to its workforce. These address the identified
material impact of the Group's activities on its employees. The objectives help to meet the expectations of
stakeholders (such as employees, the community or policy makers), mitigate risks, and increase the positive impact
on the workforce to ensure the success of the Group.
Target
Unit of measurement
Base year
2021
Interim
result in
2025
Change
Target for
2026
1.
Reduce the number of accidents at
work
TRI ratio (number of incidents among
employees per 1 million hours worked)
17,1
8,6
-8,5
8,0
2.
Employee turnover
The ratio of retired employees to the average
number of employees
30,8%
19,3%
-11,5pp
22,0%
3.
Employee retention rate
Employees with 1+ years’ service to total
employees
85,7%
90,2%
+4,5pp
91,0%
The Group takes care of its employees and devotes particular attention and resources to reducing and maintaining
staff turnover, and improving these indicators is included in the Group's strategic objectives. The factors that have led
to the positive change in retention and turnover rates are complex. Competitive remuneration is one of the most
important factors in retaining existing staff and attracting new talent. The Group continuously monitors the labour
market situation, remuneration forecasts, takes into account the analytics of the available data and reviews the
remuneration system during the year. Other important factors include interesting and meaningful work, opportunities
for employees to develop their competences, involvement of employees in ongoing projects, implementation of
strategic objectives and recognition of employees for their achievements.
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Grigeo Group AB, company code 110012450
CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Employees turnover and retention rates:
Employees
Tissue paper
Hardboard
Containerboard and
packaging
Group
2025
2024
2025
2024
2025
2024
2025
2024
Total turnover*
16%
12%
19%
19%
22%
28%
19%
21%
Retention rate
91%
90%
92%
90%
89%
79%
90%
86%
* Calculated as the number of total employees leaving the company divided by the average annual number of employees in the current calendar
year.
Characteristics of the undertaking’s employees (S1-6)
For the purposes of this report, the own workforce includes persons employed by, or in an employment relationship
with, the Group companies. The majority of employees of the Group companies are male (more than 60%). Our priority
is full-time employees with permanent contracts and long-term employees. We offer fixed-term contracts to students,
for whom we provide internships. We do not have any employees with non-guaranteed working hours.
Number of staff as at the end of the reporting period (see also Activity Overview 2.3 Employees):
Employees
Tissue paper
Hardboard
Containerboard and
packaging
Group
2025
2024
2025
2024
2025
2024
2025
2024
Under 30 years old
Women
13
4
2
2
7
9
22
15
Men
50
44
9
12
46
41
105
97
Other*
-
-
-
-
-
-
-
-
30-50 years old
Women
75
60
17
17
63
61
155
138
Men
238
221
56
50
212
231
506
502
Other*
-
-
-
-
-
-
-
-
Over 50 years old
Women
35
30
16
17
49
40
100
87
Men
109
100
31
35
82
68
222
203
Other*
-
-
-
-
-
-
-
-
Total
520
459
131
133
459
450
1110
1042
* Included in accordance with ESRS requirements.
In 2025, the number of employees increased by 6% compared to 2024. This growth was driven by the acquisition of
a new company in Germany, which contributed to business expansion and the overall increase in the Group’s
workforce.
Number of employees by country:
Country
Employee
Lithuania
815
Poland
160
Ukraine
72
Latvia
18
Germany
45
Total
1110
The largest part of the Group's companies is located in Lithuania, where the largest number of employees work – 73%
of all the Group's employees. The number of employees in the other four countries is smaller due to the smaller
number of companies and accounts for the remaining 27%.
Due to the current situation in Ukraine, we are currently not providing data on employee turnover, engagement and
other social indicators. We understand the importance of this information, but in an unstable environment, we strive
to ensure data accuracy and employee safety.
Collective bargaining coverage and social dialogue (S1-8)
We respect the right of workers to join, organise or not, including the right to form and join trade unions to defend their
interests. Workers have the right to bargain collectively freely. Workers shall not be discriminated against, intimidated
or harassed in the exercise of these rights.
The social dialogue between the employer and the employees of the Group companies is ensured together with the
existing trade unions and/or work councils. The relations of Grigeo Group AB, Grigeo Hygiene UAB, Grigeo Tissue
UAB, Grigeo Klaipėda AB, Grigeo Baltwood UAB, Grigeo Tissue S.p. z o.o. with the employees are defined by the
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CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
provisions of the collective agreement. Group's employees are covered by a collective agreement. There are no
collective agreements outside of Lithuania.
Diversity metrics (S1-9)
Gender distribution of employees at top management level (unit directors), in numbers and percentages:
Employees
Tissue paper
Hardboard
Containerboard and
packaging
Group
2025
2024
2025
2024
2025
2024
2025
2024
Women
2
1
0
0
3
3
5
4
Women %
12%
8%
0%
0%
25%
21%
16%
14%
Men
14
12
4
4
9
11
27
25
Men %
88%
92%
100%
100%
75%
79%
84%
86%
Total
16
13
4
4
12
14
32
29
Data on the distribution of employees by age are provided in the ESRS S1 Own Workforce, Characteristics of the
undertaking’s employees (S1-6) section.
Adequate wages (S1-10)
A transparent and clear wage management system, approved in 2020 and renewed in 2024, helps to retain and attract
talents, promotes productive and efficient work, and allows fair renumeration for work performed and results achieved.
The payment system is based on the following principles and foundations:
• gender equality and non-discrimination on other basis,
• transparency of the payment system within the Group,
• fair calculation and determination of payment,
• the determination of an appropriate level of payment for all employees of the Group,
• the encouragement of employees to develop and improve their skills,
• appropriate recognition of employee performance and additional monetary incentives and bonuses for
achieving targets.
In all our companies of the Group, positions are divided into three main groups: managers (2 levels), specialists (4
levels) and workers (3 levels). Additional monetary incentive systems are applied to all groups of positions or certain
individual positions.
The basic wage is determined based on the category and level of position as well as objective criteria relating to
employee‘s education, experience, competencies, abilities in relation of responsibility degree, the nature and
complexity of work performed, and the results obtained, the market situation is also taken into account to ensure a
fair wage.
Social protection (S1-11)
We take care of our employees, ensuring that they feel engaged, motivated and secure. We provide all the social
guarantees such as retirement benefits, parental leave, sickness, unemployment, accident and acquired disability
benefits, etc. We also give employees access to additional benefits. Employees of Group companies are covered by
accident insurance, accident benefits, critical illness benefits or supplementary health insurance. The list of fringe
benefits is regularly reviewed in line with employee needs. Employees are very appreciative of the fringe benefits and
actively take advantage of them.
Persons with disabilities (S1‑12)
The Company does not have information on the exact number of employees with disabilities, as under national
legislation employees are not required to provide their employer with information about their disability status. Such
information may only be disclosed voluntarily at the employee’s initiative, as a right rather than an obligation. In
Lithuania, as of 13 June 2024, Article 25(11) of the Law on Safety and Health at Work – previously requiring employees
to submit a medical assessment confirming their fitness for a specific job – was repealed. In line with applicable
legislation, data‑collection limitations, and the protection of employee privacy, the Company does not collect this
information and therefore does not hold statistics on employees with disabilities.
Training and skills development metrics (S1-13)
Work in the paper and wood-processing industry involves the use of powerful, complex, and potentially hazardous
equipment. To reduce the likelihood of risks and in line with the legal requirements, the control and operation of
machinery described in production process documentation may be entrusted only to highly qualified operators.
To supply our customers with high-quality products and ensure smooth operations across our business, we rely on
skills, experience, and knowledge. The training and development processes within Grigeo Group are designed – and
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for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
continuously improved – to build and strengthen employee competencies while opening opportunities for professional
growth.
Given the wide range of responsibilities and functions across the Group, we continuously develop our employees in
several directions:
• Development of production employees through internal training programmes and categorisation processes.
• Category advancement for production and technical personnel.
• Internal e-learning for all employees, including general competency development and mandatory training.
• Mandatory external training for production and technical personnel.
• External training for specialists and managers focused on general and leadership competencies.
We encourage employees to pursue career opportunities within the Group. The People Development Partner and HR
managers are responsible for the systematic assessment of training needs. Training needs for specialists and
managers are identified through the career management process and performance evaluations. Managers are also
required to identify competency development priorities for their team members. Mandatory training for production and
technical personnel, as well as the review of internal training programmes, is initiated and coordinated by training
coordinators.
These processes help us ensure:
• An adequate number of qualified employees required for production, product delivery, and service provision.
• Continuous encouragement of employee qualification improvement.
• Support for employee category advancement.
• Consistent application of the company’s values in daily operations.
• Fair and transparently determined remuneration for each employee, aligned with their acquired qualifications.
Supervision and management of training processes:
• To assess training needs and opportunities, we take into account the Group’s strategic objectives, the career
management process, and performance evaluations.
• Training coordinators monitor whether the content of internal training programmes and the competency
assessment within the categorisation process remain relevant and aligned with current needs.
• The need, content, and relevance of internal training are evaluated and coordinated by process owners.
• Particular attention is given to formal and informal certifications and training with a defined validity period.
Training coordinators and managers are responsible for ensuring that employee certifications and permits are
issued and renewed on time.
Average formal training in numbers*:
Average number of training hours per employee
Tissue paper
Hardboard
Containerboard
and packaging
Group
2025
2024
2025
2024
2025
2024
2025
2024
Women
37
22
40
12
39
21
38
18
Men
53
50
45
39
65
52
56
47
* Year 2024 Grigeo Group AB, Grigeo Hygiene UAB ir Grigeo Tissue UAB training hours are without Grigeo Tissue sp zoo.
All employees participate in regular performance and career development reviews, regardless of position, gender or
other aspects.
Health and safety metrics (S1-14)
General safety guidelines for every employee:
Wear protective
clothing that has been
provided
Comply with the
established working
and rest time
schedule
In the event of an
incident or accident,
report it to your
supervisor
immediately
Discuss any concerns
you may have with
your seniors
If you have an illness or
condition, inform your
supervisor
Report any
hazards
Keep your work area
clean and tidy
Follow 6S standard
Insist on receiving
proper training
Follow all safety
procedures and
rules your employer
has in place
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CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
In 2016, our companies, with an exception of Mena PAK AT, implemented the OHSAS 18001:2007 Occupational
Health and Safety Management Standard (ISO 45001 from 2021). This standard helps ensure the Group's
occupational health and safety, reducing the likelihood of accidents at work and occupational morbidity.
The key principles of our occupational safety and health (OSH) management system
• Compliance with legal requirements and the Code of Business Ethics.
• Promoting high awareness and personal involvement.
• Encouraging employees to actively contribute to improving the OSH management system.
• Providing employees with safe and healthy working conditions to prevent work‑related injuries and illnesses.
• Timely identification and elimination of hazards and unsafe situations.
• Carefully assessing OSH standards implemented by companies during supplier selection.
• Continuously analysing and evaluating the needs of stakeholders and seeking ways to meet their
requirements more effectively.
• Monitoring contractors working on our premises.
• Applying the OSH management system to all employees, contractors, visitors, suppliers, and trainees.
• Ensuring continuous employee training and timely certification.
We continuously monitor and identify risk factors and hazards to ensure a safe and healthy working environment.
Hazard identification
Key risk factors
• In 2025, we operated without a single life-changing accident. No workers (both
our employees and those employed by our contractors) suffered a major injury.
• We are dedicated to maintaining a safe and reliable workplace for everybody
performing their duties within our Group.
• Occupational risk assessment is performed by an external company.
• The risk assessment of production processes performed internally involves
OSH specialists, production management, employees, and the quality
department.
• Incident investigation – through a register of unsafe situations or in the event
of a more serious incident, a team is selected to investigate the incident.
• Incident investigation – recorded in the occupational health and safety register,
with a team appointed to analyse the event and define preventive measures.
• Close daily cooperation with employees across all departments.
• Rotating parts of equipment.
• Moving transport, loading works.
• Night work.
• Work at height.
• Works in wells.
• Manual lifting of loads.
• Working with chemicals.
• Use of potentially dangerous equipment
(cranes, pressure vessels, elevators).
• Noise
• Plant‑based dust
• Electrical work
Accident prevention
To prevent negative impacts and risks in the workplace, continuous employee involvement is essential. All employees
are required to report unsafe working conditions. All identified situations are recorded and managed in the
occupational health and safety register.
• A mobile application is used to register technical issues. Reported issues are transferred to the system, where
technical staff plan repairs or respond promptly.
• Safety matters are addressed during meetings attended by responsible personnel.
• Employees are represented through the occupational health and safety committee.
• Employees participate in identifying risks and hazards.
• All personal and collective protective equipment is inspected, and its timely maintenance is ensured.
OSH committees have been established within the Group’s companies, composed of representatives of both
the employer and employees.
Main responsibilities:
• Analyse and assess the occupational health and safety conditions within the companies.
• Review preventive measures aimed at avoiding workplace accidents and occupational diseases.
• Monitor compliance with established procedures and ensure that employees are provided with collective and
personal protective equipment, as well as oversee the maintenance of such equipment.
• Examine employee requests regarding the provision of safe and healthy working conditions, as well as reports
on situations in workplaces, work premises, or other company locations that, in their view, may pose risks to
employee safety and health, and submit proposals to the employer’s representative on measures to ensure
occupational health and safety.
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for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
To follow up on the Group's social strategic target, data on accidents at work are collected and recorded, and progress
is monitored. The TRI indicator is used to monitor occupational accidents:
Tissue paper
Hardboard
Containerboard and
packaging
Group
2025
2024
2025
2024
2025
2024
2025
2024
High-consequence injuries
-
-
-
-
-
-
-
-
Minor injuries
6
11
4
9
5
7
15
27
Hours worked
712 523
525 128
244 064
243 219
796 017
783 682
1 752 604
1 552 029
TRI rate*
8,4
20,9
16,4
37,0
6,3
8,9
8,6
17,4
*Number of incidents among our own employees per 1 000 000 hours worked.
Number of working days lost due to occupational accidents: 708.
Work-life balance metrics (S1-15)
Work-life balance not only contributes to the well-being of the individual employee, but also has a positive impact on
the Group's overall performance and long-term success. The Group ensures that all employees have the right to take
leave for family reasons, the table below shows data on employees who are entitled to and have taken parental leave:
Employees
Tissue paper
Hardboard
Containerboard and
packaging
Group
2025
2024
2025
2024
2025
2024
2025
2024
Employees entitled to parental leave
Women
8
2
0
0
5
3
13
5
Men
44
7
4
4
12
8
60
19
Employees that took parental leave (of those entitled to do so), %
Women
25%
100%
0%
0%
80%
100%
46%
100%
Men
25%
14%
100%
0%
92%
0%
43%
5%
Compensation metrics (pay gap and total compensation) (S1-16)
The Group adheres to the principle of equal opportunities and ensures that all employees are assessed on the basis
of their competences, experience and work results, regardless of their gender. Salaries in our organization are
determined objectively, based on clear criteria such as the nature of the work, level of responsibility and professional
skills.
We understand that in certain areas or positions there may be natural differences in gender distribution due to general
market trends or sector specificities. However, this does not in any way constitute discrimination - our goal is to create
equal conditions for all employees to grow and develop in their careers.
Average wage ratio between women and men*:
Employees
Tissue paper
Hardboard
Containerboard and
packaging
Group
2025
2024
2025
2024
2025
2024
2025
2024
Women/Men
7%
3%
23%
30%
11%
13%
11%
12%
* Calculated as: average hourly gross wage of male employees – average hourly gross wage of female employees / average hourly gross wage of
male employees × 100.
Information on the disclosure of the total remuneration ratio is provided in Section 6. Remuneration Report,
Remuneration paid to the management and supervisory bodies.
Incidents, complaints and severe human rights impacts (S1-17)
In 2025, the Group did not receive any complaints from employees regarding discriminatory behaviour at work. No
other major human rights incidents (such as forced labour, child labour, etc.) were identified.
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for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
ESRS S2 Workers in the value chain
Interests and views of stakeholder (ESRS 2 SBM-2)
In the S2 ETAS double materiality assessment of value‑chain workers, two material topics were identified: adequate
wages and health and safety. The Group recognises that value‑chain workers (supplier and contractor personnel) are
a key stakeholder group essential for ensuring business continuity. We understand their views and interests through
a consistent supplier‑management process: all new partners are audited using a specialised questionnaire, and
throughout the cooperation we follow the provisions of the Supplier Code of Conduct. These provisions require
suppliers to implement internal reporting systems and to inform their employees about the Group’s Trust Line, thereby
ensuring access to feedback mechanisms in their workplaces.
Table of significant ESRS sub-topics
Sub-topic
Sub-sub-topics
Impact materiality
Financial materiality
Work conditions
Adequate wages
Important
Informative
Health and safety
Significant
Informative
Material impacts, risks and opportunities and their interaction with strategy and the business model (SBM‑3)
The highest risk of negative impacts on value‑chain workers has been identified in the raw‑material extraction and
logistics stages, operating across the Lithuanian, Polish, Latvian, German and Ukrainian markets. The Group’s
business model is directly dependent on these inputs; therefore, ensuring safe working conditions within the supplier
chain is a critical factor in preventing supply disruptions and maintaining the Group’s ‘responsible 360°’ culture
standards. To manage the identified impacts, the Group applies specific risk‑management scenarios (e.g., for LDPE
film), enabling rapid response to potential shortages or ethical breaches within the value chain.
Policies related to value chain workers (S2-1)
The main document governing the Group’s relationship with value‑chain workers is the Supplier Code of Conduct
(SCoC), approved in 2024. This policy is aligned with the UN Guiding Principles on Business and Human Rights and
ILO conventions, ensuring strong compliance with international standards.
Key SCoC commitments:
• Human rights: strict prohibition of forced and child labour, and adherence to non‑discrimination principles.
• Working conditions: commitment to pay no less than the minimum wage and to compensate overtime fairly.
• Health and safety: obligation to provide regular instruction and training to employees, ensuring safe working
conditions across all operations.
The SCoC sets clear requirements for suppliers and is an important tool for ensuring fair labour practices, the
protection of workers’ rights, and ethical conduct throughout the supply chain. The principles defined in the Code
cover workers’ rights, equal opportunities, fair remuneration, regulation of working hours, and safe and healthy working
conditions. In addition, the SCoC promotes environmental and social responsibility initiatives and obliges suppliers to
uphold high standards of business ethics and transparency.
The Code of Conduct not only protects workers from potential exploitation or unfair working conditions but also
strengthens long‑term cooperation with responsible suppliers. Its implementation reduces supply‑chain risks, supports
sustainable business development, and enhances trust among partners and stakeholders.
Remediation processes and channels for value‑chain workers (S2‑3)
The Group has implemented a grievance and incident‑reporting mechanism that ensures value‑chain workers can
safely and confidentially report potential violations, and that identified non‑conformities are addressed promptly.
Grievance channels
• Internal supplier channels. Under the Supplier Code of Conduct (SCoC), all suppliers are required to maintain
functioning internal systems that allow their employees to submit complaints related to human rights, working
conditions or environmental violations. These channels must be easily accessible in the workplace.
• Group Trust Line. In addition, all value‑chain workers have access to the Group’s Trust Line – a confidential
channel through which potential violations can be reported via email at pranesejuapsauga@grigeo.com.
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for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Remediation of negative impacts
The Group aims to promptly address identified violations by applying risk‑management and corrective‑action
scenarios tailored to different product groups.
• When non‑conformities are identified, the supplier must immediately implement corrective actions based on
the Group’s recommendations.
• The Group monitors the effectiveness of these measures and, if necessary, conducts follow‑up checks after
the initial supplier assessment.
• In cases of material breaches of the SCoC, the Group reserves the right to terminate contractual relationships.
Supplier assessment and prevention
New suppliers are evaluated using an audit questionnaire covering occupational safety, fair remuneration, working
conditions and other areas of social responsibility. Suppliers are required to inform their employees and
subcontractors about the SCoC requirements, ensuring that responsible practices are applied throughout the entire
supply chain.
Actions to manage material impacts and risks (S2‑4)
To manage risks, the Group applies the following measures:
• Preventive assessment: New suppliers are audited before contracts are signed.
• Risk‑management scenarios: Action plans have been developed for specific product groups (e.g., LDPE
film) to address potential supply disruptions or ethical risks.
• Inspections: Periodic supplier inspections are carried out as needed, with particular attention to compliance
with OSH standards.
Objectives related to material impacts, risks and opportunities (S2‑5)
At present, the Group has not established quantitative KPIs for value‑chain workers.
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CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
ESRS S3 Affected communities
Interests and views of stakeholders (ESRS 2 SBM-2)
The Group's corporate activities have many points of contact with local communities, which are one of our important
stakeholders. We want to be a valuable part of the community and we assess our impact, risks and opportunities
related to this. We strive to avoid and minimise our negative impacts.
Policies related to affected communities (S3-1)
The Group's impacts and opportunities relating to affected communities are described in our Code of Ethics and
Environmental Policy. The Group's businesses adhere to important internationally recognised instruments such as
the United Nations Guiding Principles on Business and Human Rights.
The Group respects and guarantees human rights and freedoms as defined in the Universal Declaration of Human
Rights of the General Assembly of the United Nations, the Convention for the Protection of Human Rights and
Fundamental Freedoms of the Council of Europe, the Conventions of the International Labour Organisation and other
international and national legislation.
Material impacts, risks and opportunities and their interaction with strategy and business model (2 ETAS
SBM-3)
Table of significant ESRS sub-topics
The assessment of the impacts, risks and opportunities related to the affected communities identified two significant
topics and carried out an impact and financial materiality assessment. Two sub-topics were identified: water and
sanitation and security-related impacts, which were assessed at the level of significant materiality.
Sub-topic
Sub-sub-topics
Impact materiality
Financial materiality
Communities’ economic, social
and cultural rights
Water and sanitation
Important
Important
Security-related impacts
Important
Important
Processes for engaging with affected communities about impacts (S3-2)
The Group respects the local environment in which it operates and seeks to maintain good relations with local
communities and engage with affected communities. Affected communities are involved in impact assessment
processes. Each time an EIA procedure is carried out, a consultation process is carried out, during which changes
and news are presented and interested parties are given the opportunity to make comments, observations and ask
questions. There is no specific function assigned to ensure the involvement of affected communities. This depends
on the project and the responsibilities assigned. The main affected communities are located in the areas close to the
production sites – Grigiškės and Klaipėda. The Group has not assessed affected communities within the value chain.
Remediation processes and channels for affected communities (S3‑3)
The Group respects the local communities in which it operates and seeks to maintain responsible and transparent
relationships with them. When a potential or actual negative impact is identified, the Group assumes responsibility for
addressing it in accordance with national legislation and its internal procedures.
Representatives of affected communities can report concerns directly and confidentially through the Group’s Trust
Line (pranesejuapsauga@grigeo.com). This channel is publicly accessible and available to all stakeholders, including
residents, community organisations and other local interest groups.
In addition, communities are involved in impact assessments through EIA (Environmental Impact Assessment)
procedures and public consultations. During these processes, residents — for example, in Grigiškės or Klaipėda —
are informed about planned projects, their potential impacts, and have the opportunity to provide comments and ask
questions.
Reports received are examined promptly, independently and objectively, in line with the Group’s internal regulations.
Investigations may be carried out by designated employees or by specially formed committees to ensure competence
and impartiality. The Group guarantees whistleblower anonymity and confidentiality in accordance with the
Whistleblower Protection Act. More detailed information on protection measures is provided in section G1‑1 ‘Business
Ethics’.
Taking action on material impacts on affected communities, and approaches to managing material risks and
pursuing material opportunities related to affected communities, and effectiveness of those actions (S3-4)
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CONSOLIDATED MANAGEMENT REPORT
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
Odour management at Grigeo Klaipėda
Located in the centre of Klaipėda city, we recycle paper waste. We find various microorganisms (molds, fungi,
bacteria) in paper raw material – waste paper, which can cause a strong odour under certain conditions. Based on
our research, the intensity of the odour is dependent on the quality of paper being recycled. Recycled paper is made
up of a larger amount of short fibres and is often tainted with chemicals, glues and other substances, which directly
increase water pollution. In addition, we use raw water from the Curonian Lagoon, which adds contamination to the
process and accelerates the reproduction of microbes.
In 2025, we did not receive any notifications or complaints regarding odours from public authorities. Nevertheless, we
continuously monitor the situation and continue implementing odour‑management measures. In 2025, we introduced
additional air‑pollution and odour‑reduction measures at one of the emission sources, which will further help to
minimise potential impacts on the environment and surrounding communities.
Support for communities
The Group contributes to positive impacts on communities by creating jobs and supporting local initiatives. Support is
provided not only to local communities in Klaipėda and Grigiškės, but also through cooperation with other
organisations. The Group’s companies allocate financial support for the implementation of various environmental and
social projects and initiatives carried out by external organisations. Since the start of the war in Ukraine, the Group
has supported Ukraine by providing humanitarian and financial assistance to charitable and support organisations.
We also cooperate with and support foundations such as ‘Mamų unija’ and ‘Maisto bankas’.
Group’s direct charity contributions to local communities:
2025
2024
City of Vilnius
124
187
City of Klaipėda
10
46
Donations to Ukraine
20
40
Total
154
273
Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities (S3-5)
The Group's companies do not have specific targets related to communities, but we work closely together and look
for opportunities to improve or eliminate the impacts on local communities related to our activities.
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for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
7.4. Governance information
ESRS G1 Business conduct
Our mission and values (described in Section 1, Business model, under ‘Our mission and values’) are grounded in
the Group’s long‑standing history and accumulated business experience. We strive to build a motivating corporate
culture, which is why it matters how we behave and what principles guide our actions. Our core values inspire and
engage employees to pursue higher goals in their daily work and to contribute to building a successful company. In
creating and producing, we always consider our employees, customers, partners and communities — what matters
to them and how we can contribute to their well‑being.
In 2025, we continued our value‑strengthening initiatives. Together with external partners, we developed an e‑learning
programme, ‘The City of Values’, with content tailored to our operational specifics and organisational culture. To
ensure that the scenarios presented in the training were realistic and reflected employees’ everyday experiences,
dedicated workshops were organised and facilitated by external experts. During these workshops, employees from
different Group companies created practical situations that were later integrated into the training programme. This
initiative strengthened the shared understanding of how values are applied in practice and helped employees better
recognise the importance of value‑driven behaviour in everyday decision‑making.
We are committed to building a motivating corporate culture, which means not only declaring our values but also
consistently applying, developing and integrating them into daily operations.
Table of significant ESRS sub-topics
The assessment of business ethics impacts, risks and opportunities has identified material topics for Group companies
and assessed impact and financial materiality. Animal welfare and political engagement were not identified as material
due to the absence of such activities.
Sub-topic
Sub-sub-topics
Impact materiality
Financial materiality
Corporate culture
Important
Informative
Protection of whistle-blowers
Significant
Informative
Management of relationships
with suppliers including payment
practices
Significant
Significant
Corruption and bribery
Prevention and detection
including training
Important
Significant
Incidents
Important
Significant
The role of the administrative, supervisory and management bodies (ESRS 2 GOV-1)
Information is provided in sections 5.3 Management and supervisory bodies and 5.4. Functions and responsibilities
of management and supervisory bodies.
Description of the processes to identify and assess material impacts, risks and opportunities (ESRS 2 IRO-1)
The information is disclosed in ESRS 2 General Information, in the section Description of the processes to identify
and assess material impacts, risks and opportunities.
Corporate culture and Business conduct policies and corporate culture (G1-1)
Transparency, integrity and anti‑corruption are fundamental principles in business and society, forming a solid and
healthy organisational and social foundation. These principles are clearly embedded in our Group’s Code of Ethics,
and the Group consistently follows them in its operations:
• Our relationships with employees, customers, partners and the state are based on integrity and transparency.
• We report transparently to our employees and encourage other market participants to do the same.
• Any payments or other expenses that are not recorded in the relevant documents are unacceptable.
• We strongly oppose all forms of corruption.
• In order to ensure transparency and objectivity in our dealings with suppliers and business partners, we do
not accept any commercial offers that raise suspicions about their legality.
• We openly state our requirements and evaluation criteria to potential partners and define the terms of
cooperation in our contracts.
• We comply with the law and pay the required taxes.
• The Group complies with the applicable tax laws and the principles of the tax legislation and meets its tax
obligations in a timely and accurate manner.
• The Group has a low tolerance for tax risks in its risk assessment.
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• The Group's processes are clearly regulated by approved clear and transparent procedures.
Enforcement of the Code of Business Ethics and Communication of critical concerns
Ensuring the effectiveness of business ethics is an important organisational task that helps maintain high ethical
standards and values. The Group aims for all employees, customers and partners to adhere to ethical principles and
consistently promotes responsible, transparent and fair behaviour across all areas of activity.
• Employees may report violations, as well as questions or concerns related to the Business Ethics Code or
other relevant topics, to their direct manager, the HR manager or the company’s general manager.
• To ensure compliance with the requirements of Directive (EU) 2019/1937 of the European Parliament and of
the Council and the Lithuanian Law on the Protection of Whistleblowers, the Group has approved the
Procedure for Submitting and Investigating Information on Violations and Ensuring Confidentiality at AB
‘Grigeo’, effective since 6 January 2020. This procedure is based on the provisions of the Lithuanian
Whistleblower Protection Law. As these legal requirements apply to the Group, and in line with ESRS G1‑1
paragraph 11, this information is considered to meet the policy disclosure requirements.
• In accordance with the requirements of Directive (EU) 2019/1937 applicable to the Group, reports concerning
any suspected, ongoing or completed criminal act, administrative offence, breach of work duties, serious
violation of mandatory professional ethics, or any other legal infringement posing a threat to or violating the
public interest may be submitted through the Group’s internal whistleblowing channel via email at
pranesejuapsauga@grigeo.com.
• If information is received regarding violations, complaints or other negative impacts in governance,
environmental or social areas, such information is examined in accordance with the Group’s internal
regulations. The head of the Group company may appoint responsible persons or establish an ad hoc
committee composed of employees with the relevant competence and responsibilities to investigate the
matter.
• The management of each Group company is responsible for implementing the provisions of the Code and for
ensuring zero tolerance of actions that contradict the Code, as well as for prompt and fair remediation.
• The Group supports employees who act in good faith in accordance with the Code, encourages others to
follow it, and does not tolerate or overlook any instance of non‑compliance.
• The internal whistleblowing channel is publicly accessible on the Group’s website at http://www.grigeo.com.
To ensure the effectiveness of this channel, internal communication is carried out for employees. Training is
organised as needed.
Management of relationships with suppliers (G1-2)
The Group is committed to a responsible and sustainable purchasing policy to ensure effective supply chain
management and long-term relationships with suppliers. Our priority is to build long-term partnerships with trusted
suppliers based on integrity, transparency and mutual efficiency. The principles and guidelines for the Group's
procurement are described in the Procurement Policy:
• The Group undertakes to carry out procurement activities responsibly. Long-term, good business relations
and beneficial cooperation are the most important for the Group.
• All employees of the Group engaged in procurement activities must comply with the rules of the Group's Code
of Business Ethics. The Group's suppliers are also expected to comply with the Group's Code of Business
Ethics.
• All procurement activities must be conducted in such a way that the Group meets ethical, environmental and
social sustainability requirements in all parts of the supply chain.
• The Group communicates with suppliers in such a way that it is considered as honest, professional and
working by the highest standards of business ethics and procurement.
• To maintain constant competitive ability and lower risk, whenever possible the Group avoids purchases from
the single supplier and assesses all risks associated with the purchase.
Prevention and detection of corruption and bribery (G1-3)
The prevention and detection of corruption and bribery are an integral part of our organization's processes and
policies. We strive to ensure transparency, accountability, and integrity at all stages of our operations, which is why
anti-corruption mechanisms are embedded in our internal control systems, risk management, and ethical standards.
We continuously strengthen employee awareness, implement preventive measures, and promote a culture of open
reporting on potential violations, ensuring that our activities comply with the highest standards of integrity and legal
compliance.
• The Group's Code of Ethics describes our commitments to transparency, integrity and anti-corruption.
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All amounts are in EUR thousands unless otherwise stated
• The Group has an approved gift policy which prohibits the acceptance and giving of any type of gratuitous
items, services or other benefits of any value by employees of the Group in the course of their employment
functions. This policy is communicated to and adhered to by all employees.
• The Group has an approved Supplier Code of Ethics, compliance with which is an integral part of our
collaboration. By signing a contract, each supplier confirms their commitment to follow the provisions of this
code, including anti-corruption principles. This ensures a transparent, responsible, and ethical partnership
based on integrity and mutual respect.
• We have an established risk management process that includes corruption prevention-related risks. As
needed, management plans are assigned, and risk levels are assessed. This systematic approach allows us
to monitor, analyze, and mitigate corruption threats, ensuring transparent, ethical, and responsible operations.
Confirmed incidents of corruption or bribery (G1‑4)
During the previous reporting period, no cases of corruption and/or bribery were identified.
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
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Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, LT-27101, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
STATEMENTS OF FINANCIAL POSITION
Group | Company | ||||
Notes | At 31 | At 31 | At 31 | At 31 | |
December | December | December | December | ||
2025 | 2024 | 2025 | 2024 | ||
ASSETS | |||||
Non-current assets | |||||
Property, plant and equipment | 5 | 5,625 | 1,881 | ||
Right-of-use assets | 6 | 534 | 541 | ||
Intangible assets | 7 | 1,103 | 429 | ||
Investment property | 8 | 4,323 | 4,441 | ||
Investments in subsidiaries | 1 | 78,331 | 77,989 | ||
Other receivables | - | - | |||
Deferred income tax assets | 25 | 36 | 29 | ||
Total non-current assets | 89,952 | 85,310 | |||
Current assets | |||||
Inventories | 9 | 11 | 1 | ||
Trade and other amounts receivable | 10 | 9,051 | 2,676 | ||
Prepaid income tax | - | 84 | |||
Other current assets | 180 | 98 | |||
Cash and cash equivalents | 11 | 3,609 | 10,885 | ||
Total current assets | 12,851 | 13,744 | |||
TOTAL ASSETS | 102,803 | 99,054 |
(Cont'd on the next page)
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CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
STATEMENTS OF FINANCIAL POSITION (CONTINUED)
Group | Company | ||||
Notes | At 31 | At 31 | At 31 | At 31 | |
December | December | December | December | ||
2025 | 2024 | 2025 | 2024 | ||
EQUITY AND LIABILITIES | |||||
Equity | |||||
Authorised share capital | 12 | 38,518 | 38,106 | ||
Share premium | 12 | 2,249 | 1,119 | ||
Legal reserve | 12 | 3,811 | 3,811 | ||
Reserve for share-based payments | 12 | - | 500 | ||
Foreign currency translation reserve | 12 | ( | ( | - | - |
Retained earnings | 12 | 43,041 | 40,194 | ||
Equity attributable to shareholders of the Company | 87,619 | 83,730 | |||
Non-controlling interest | - | - | |||
Total equity | 87,619 | 83,730 | |||
Liabilities | |||||
Non-current liabilities | |||||
Borrowings | 13 | - | - | ||
Lease liabilities | 14 | 571 | 573 | ||
Grants | 15 | - | - | ||
Deferred income tax liability | 25 | - | - | ||
Long-term employee benefits | 16 | 25 | 29 | ||
Other amounts payable | 17 | - | - | ||
Total non-current liabilities | 596 | 602 | |||
Current liabilities | |||||
Borrowings | 13 | - | - | ||
Lease liabilities | 14 | 2 | 2 | ||
Income tax payable | 18 | - | |||
Trade and other amounts payable | 17 | 14,568 | 14,720 | ||
Total current liabilities | 14,588 | 14,722 | |||
Total liabilities | 15,184 | 15,324 | |||
TOTAL EQUITY AND LIABILITIES | 102,803 | 99,054 |
The accompanying notes are an integral part of these financial statements.
The financial statements were prepared by the management on 2 April 2026 and signed with a qualified electronic
signature on its behalf by:
Tomas Jozonis
Chief Executive Officer
Mindaugas Sologubas
Chief Financial Officer
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CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
STATEMENTS OF COMPREHENSIVE INCOME
Notes | Group | Company | |||
2025 | 2024 | 2025 | 2024 | ||
Revenue | 18 | 7,285 | 36,669 | ||
Cost of sales | 19 | ( | ( | (5,417) | (27,680) |
Gross profit | 1,868 | 8,989 | |||
Selling and distribution expenses | 20 | ( | ( | - | (1,911) |
Administrative expenses | 21 | ( | ( | (1,173) | (2,723) |
Other income | 22 | 10,803 | 2,192 | ||
Other gains/(losses) – net | 23 | 88 | 1,012 | ||
Operating profit | 11,586 | 7,559 | |||
Finance income | 24 | 143 | 279 | ||
Finance costs | 24 | ( | ( | (44) | (102) |
Finance income/(costs) – net | ( | 99 | 177 | ||
Profit before income tax | 11,685 | 7,736 | |||
Income tax | 25 | ( | ( | (269) | (987) |
PROFIT FOR THE PERIOD | 11,416 | 6,749 | |||
Profit for the period attributable to: | |||||
Shareholders of the Company | 11,416 | 6,749 | |||
Non-controlling interest | ( | - | - | ||
Other comprehensive income/(expenses) | |||||
Items that will not be reclassified | - | - | |||
subsequently to profit or loss | |||||
Items that may be reclassified subsequently | |||||
to profit or loss | |||||
Exchange differences arising on translation of financial statements of foreign operation | ( | ( | - | - | |
Cash flow hedges – effective portion of changes | - | - | |||
in fair value | |||||
Total items that may be reclassified | ( | ( | - | - | |
subsequently to profit or loss | |||||
Other comprehensive income/(expenses) for the period | ( | ( | - | - | |
Total comprehensive income for the period | 11,416 | 6,749 | |||
Total comprehensive income for the period | |||||
attributable to: | |||||
Shareholders of the Company | 11,416 | 6,749 | |||
Non-controlling interest | ( | - | - | ||
Basic earnings per share (EUR) | 26 | 0.086 | 0.051 | ||
Diluted earnings per share (EUR) | 26 | 0.086 | 0.051 |
The accompanying notes are an integral part of these financial statements.
Tomas Jozonis
Chief Executive Officer
Mindaugas Sologubas
Chief Financial Officer
86
« Table of Contents
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, LT-27101, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
STATEMENTS OF CHANGES IN EQUITY
Equity attributable to owners of the Company | |||||||||
Group | Reserve for | Foreign currency | Non- | ||||||
Authorised | Share | Retained | |||||||
Legal reserve | share-based | translation | Total | controlling | Total equity | ||||
share capital | premium | earnings | |||||||
payments | reserve | interest | |||||||
At 1 January 2024 | ( | ||||||||
Profit for the period | |||||||||
Other comprehensive income/(expenses) | ( | ( | ( | ||||||
Total comprehensive income/(expenses) | ( | ||||||||
Increase in legal reserve | ( | ||||||||
Allocated dividends | ( | ( | ( | ||||||
Remuneration in share options | |||||||||
Transactions with the Company’s shareholders | ( | ( | ( | ||||||
At 31 December 2024 | ( | ||||||||
At 1 January 2025 | ( | ||||||||
Profit for the period | ( | ||||||||
Other comprehensive income/(expenses) | ( | ( | ( | ||||||
Total comprehensive income/(expenses) | ( | ( | |||||||
Allocated dividends | ( | ( | ( | ( | |||||
Increase in legal reserve | ( | ||||||||
Reestablishment of reserve for share-based payments | ( | ||||||||
Formation of share premium | ( | ||||||||
Remuneration in share options | |||||||||
Transactions with the Company’s shareholders | ( | ( | ( | ( | ( | ||||
At 31 December 2025 | ( |
87
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, LT-27101, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
for the year ended 31 December 2024
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
STATEMENTS OF CHANGES IN EQUITY (CONTINUED)
Company
Authorised
share capital
Share premium
Legal reserve
Reserve for
share-based
payments
Retained earnings
Total equity
At 1 January 2024
38,106
1,119
2,886
500
42,752
85,363
Profit for the period
-
-
-
-
6,749
6,749
Total comprehensive income
-
-
-
-
6,749
6,749
Allocated dividends
-
-
-
-
(9,198)
(9,198)
Increase in legal reserve
-
-
925
-
(925)
-
Remuneration in share options
-
-
-
-
816
816
Transactions with the Company’s
shareholders
-
-
925
-
(9,307)
(8,382)
At 31 December 2024
38,106
1,119
3,811
500
40,194
83,730
At 1 January 2025
38,106
1,119
3,811
500
40,194
83,730
Profit for the period
-
-
-
-
11,416
11,416
Total comprehensive income
-
-
-
-
11,416
11,416
Allocated dividends
-
-
-
-
(7,884)
(7,884)
Increase in legal reserve
412
-
-
-
(412)
-
Reestablishment of reserve for share-based
payments
-
-
-
(500)
500
-
Formation of share premium
-
1,130
-
-
(1,130)
-
Remuneration in share options
-
-
-
-
357
357
Transactions with the Company’s
shareholders
412
1,130
-
(500)
(8,569)
(7,527)
At 31 December 2025
38,518
2,249
3,811
-
43,041
87,619
The accompanying notes are an integral part of these financial statements.
Tomas Jozonis
Chief Executive Officer
Mindaugas Sologubas
Chief Financial Officer
88
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, LT-27101, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
STATEMENTS OF CASH FLOWS
Notes | Group | Company | |||
2025 | 2024 | 2025 | 2024 | ||
Cash flows from operating activities | |||||
Profit before income tax | 11,685 | 7,736 | |||
Adjustments for non-cash items: | |||||
Depreciation and amortisation | 596 | 1,783 | |||
Dividends received | (9,950) | (1,300) | |||
Interest expenses on borrowings and lease | 24 | 23 | 70 | ||
Interest income | 24 | ( | ( | (143) | (278) |
Other finance (income)/costs – net | 24 | 21 | 32 | ||
Gain on disposal of non-current assets | ( | ( | (18) | (217) | |
Remuneration in share options | 14 | 189 | |||
2,228 | 8,015 | ||||
Changes in working capital | |||||
(Increase)/decrease in trade and other amounts receivable | ( | (26) | (1,919) | ||
(Increase)/decrease in inventories | ( | ( | (11) | (289) | |
(Increase)/decrease in other current assets | ( | (82) | 35 | ||
Increase/(decrease) in trade and other amounts payable | ( | (3,376) | 6,098 | ||
( | (3,495) | 3,925 | |||
Interest paid | ( | ( | (23) | (81) | |
Income tax paid | ( | ( | (390) | (3,928) | |
Net cash inflow from operating activities | (5,182) | 7,931 | |||
Cash flows from investing activities | |||||
Acquisition of property, plant and equipment and intangible assets | 5 / 7 | ( | ( | (4,293) | (1,250) |
Acquisition of investment property | 8 | ( | ( | (135) | (298) |
Disposal of property, plant and equipment | 19 | 261 | |||
Business acquisition / investments in subsidiaries | 1 | ( | ( | - | (23,640) |
Interest received | 124 | 441 | |||
Payments for financial assets at amortised cost | - | 20,050 | |||
Payments to subsidiaries under cash pool agreement | (6,330) | - | |||
Subsidies received | - | - | |||
Dividends received | 22 | 9,950 | 1,300 | ||
Net cash inflow/(outflow) from investing activities | ( | ( | (665) | (3,136) | |
Cash flows from financing activities | |||||
Dividends paid | ( | ( | (7,757) | (9,055) | |
Repayments of borrowings | ( | ( | - | (412) | |
Loans received | - | - | |||
Amounts received from subsidiaries under cash pool agreement | 2,828 | - | |||
Lease payments | ( | ( | (2) | (113) | |
Net cash (outflow) from financing activities | ( | (4,931) | (9,580) | ||
Net increase/(decrease) in cash flows | ( | ( | (7,276) | (4,785) | |
Cash and cash equivalents at the beginning of the period | 10,884 | 15,669 | |||
Cash and cash equivalents at the end of the period | 3,608 | 10,884 |
The accompanying notes are an integral part of these financial statements.
Tomas Jozonis
Chief Executive Officer
Mindaugas Sologubas
Chief Financial Officer
NOTES TO THE FINANCIAL STATEMENTS
90
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
At 31 December 2025 | At 31 December 2024 | |||
Number of | Number of | |||
% | % | |||
shares | shares | |||
62,895,755 | 47.35 | 62,628,027 | 47.66 | |
Mišeikienė Irena Ona | 17,883,064 | 13.46 | 17,625,064 | 13.41 |
Norimantas Stankevičius | 5,869,756 | 4.42 | 5,869,756 | 4.47 |
TOTAL | 86,648,575 | 65.24 | 86,122,847 | 65.54 |
At 31 December 2025 | At 31 December 2024 | |||||
Ownership | Amount | Ownership | Amount | |||
interest | (cost) of | interest | (cost) of | Address | Principal activities | |
held by | investment | held by the | investment | Date of acquisition (establishment) | ||
the Group | Group | |||||
Subsidiaries directly controlled by the Company: | ||||||
Grigeo Baltwood | Vilniaus g. 10, Grigiškės, | Manufacturing of wood hardboards. | ||||
100% | 2,555 | 100% | 2,555 | |||
UAB | Vilniaus sav., Lithuania | 10 April 2003 | ||||
Grigeo Recycling | Vilniaus g. 10, Grigiškės, | Collection of secondary raw materials and | ||||
100% | 3,706 | 100% | 3,706 | preparation for recycling. | ||
UAB | Vilniaus sav., Lithuania | 16 July 2010 | ||||
Building and development of real estate. | ||||||
Naujieji Verkiai | Popieriaus g. 15, Vilnius, | The company was dormant in 2025 and | ||||
UAB | 100% | - | 100% | - | Lithuania | 2024. |
6 April 2004 | ||||||
Grigeo Paper | Vilniaus g. 10, Grigiškės, | Investment activities and management of | ||||
100% | 19,427 | 100% | 19,427 | companies. | ||
Packaging UAB | Vilniaus sav., Lithuania | 10 July 2009 | ||||
Investment activities and management of | ||||||
Grigeo Hygiene | Vilniaus g. 10, Grigiškės, | companies. | ||||
100% | 51,505 | 100% | 51,505 | |||
UAB | Vilniaus sav., Lithuania | (former Grigiškių Energija UAB) | ||||
7 October 2011 | ||||||
Investment in subsidiaries (stock options for company employees) (Note 12) | ||||||
Company shares | ||||||
for employees of group companies | 1,138 | 796 | ||||
Total | 78,331 |
91
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
At 31 December 2025 | At 31 December 2024 | ||||
Ownership | Amount | Ownership | Amount | ||
interest | interest | Principal activities | |||
(cost) of | (cost) of | Address | |||
held by | investment | held by | investment | Date of acquisition (establishment) | |
the Group | the Group | ||||
Subsidiaries indirectly controlled by the Company: | |||||
Grigeo Tissue | Vilniaus g. 10, Grigiškės, | Manufacturing of tissue paper. | |||
100% | - | 100% | - | ||
UAB 1 | Vilniaus sav., Lithuania | 1 December 2023 | |||
Huchtemeier | Gernotstraße 18, 44319 | Sales of hygienic paper products. | |||
100% | - | 100% | - | ||
Papier GmbH 1 | Dortmund, Germany | 1895 | |||
Grigeo Tissue | 33-132 Niedomice, ul. | Manufacturing of tissue paper. | |||
100% | - | 100% | - | ||
sp. z o.o 1 | Niedomicka 45, Poland | 28 March 2024 | |||
Energia Cieplna | 33-132 Niedomice, ul. | Production of heat energy. | |||
Niedomice | 100% | - | 100% | - | |
Niedomicka 45, Poland | 28 March 2024 | ||||
sp. z o.o 2 | |||||
Grigeo Klaipėda | Nemuno g. 2, Klaipėda, | Manufacturing of cardboard and cardboard | |||
97.68% | - | 97.68% | - | paper honeycomb. | |
AB 3 | Lithuania | ||||
1 March 2010 | |||||
Grigeo Packaging | Vilniaus g. 10, Grigiškės, | Manufacturing of corrugated cardboard and | |||
100% | - | 100% | - | packaging. | |
UAB 3 | Vilniaus sav., Lithuania | 10 April 2009 | |||
Koševovo g. 6, Černigovo Manufacturing of corrugated cardboard and | |||||
Меna Pak AT 3 | 100% | - | 100% | - | packaging. |
raj., Mena, Ukraine | 1 March 2010 | ||||
Grigeo Recycling | Collection of secondary raw materials and | ||||
SIA 4 | 100% | - | 100% | - Ēdoles iela 5, Riga, Latvia | preparation for recycling. |
16 June 2016 | |||||
92
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
2. Summary of material accounting policy information
The principal accounting policies applied in the preparation of these financial statements are set out below. These
policies were applied consistently for the reported periods unless stated otherwise (adoption of new and/or amended
standards).
2.2 Amendments to standards and their interpretations
Adoption of new and/or amended IFRS and interpretations of the International Financial Reporting Interpretations
Committee (IFRIC).
b) Standards, interpretations and amendments thereto that are not yet effective and have not been early
adopted by the Company
- Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and
IFRS 7.
- Annual Improvements to IFRS Accounting Standards – IFRS 1 was clarified that a hedge should be
discontinued upon transition to IFRS Accounting Standards if it does not meet the ‘qualifying criteria’, rather
than ‘conditions’ for hedge accounting, in order to resolve a potential confusion arising from an inconsistency
between the wording in IFRS 1.
- Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7
Based on the Company’s estimate, these amendments will have no material impact on the Company’s financial
statements.
c) Standards, interpretations and amendments that have not been adopted by the European Union and that
have not been early adopted by the Group and the Company:
- Presentation and Disclosure in Financial Statements – Amendments to IFRS 18.
- Subsidiaries without Public Accountability: Disclosures - Amendments to IFRS 19.
- Subsidiaries without public accountability: Disclosures – Amendments to IAS 21.
The Company is currently assessing the impact of these amendments on the Company’s financial statements.
There are no other new standards, amendments to the existing standards or interpretations that are not yet effective
and that could have a material impact on the Company.
93
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
2. Summary of material accounting policy information (continued)
94
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
2. Summary of material accounting policy information (continued)
95
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
2. Summary of material accounting policy information (continued)
Buildings and structures of reinforced concrete | 40-80 years |
Lightweight buildings and structures | 8-25 years |
Machinery and equipment | 5–33 years |
Motor vehicles | 4–7 years |
Other fixtures and equipment | 2–13 years |
96
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
2. Summary of material accounting policy information (continued)
97
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
98
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
2. Summary of material accounting policy information (continued)
99
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
2. Summary of material accounting policy information (continued)
100
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
2. Summary of material accounting policy information (continued)
101
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
2. Summary of material accounting policy information (continued)
102
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
2. Summary of material accounting policy information (continued)
103
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
2. Summary of material accounting policy information (continued)
Type of goods sold and | Nature and timing of the fulfilment of | Revenue recognition |
services rendered | performance obligations and payment terms | under IFRS 15 |
Revenue is recognised when goods are delivered | ||
Paper and paper | to the customer or when goods are removed from | |
products | The customer takes over the control of | the warehouse. |
goods when goods are delivered. Invoices | ||
Wood hardboards | for goods are issued at the time when goods | Related expenses are recognised in the statement |
are delivered to the customer or when goods | of comprehensive income when incurred. | |
Raw materials for | are removed from the warehouse. Invoices | |
corrugated cardboard | are usually paid within 30-45 calendar days. | Marketing expenses that are directly related to |
(test liner and fluting), | earning of revenue are accounted for in the | |
corrugated cardboard | Turnover discounts are applied to goods sold | statement of comprehensive income as a |
and its products | which are calculated the end of each month, | reduction of revenue. |
Other goods | quarter and year for the previous period. | Possible loss for the contract is recognised |
immediately in the statement of comprehensive | ||
Sales of heat energy | Invoices for the serviced rendered during the | income. |
and other utility | month are issued on the last day of the | Revenue is recognised over a period of time when |
services | month. A standard established payment term | the services are rendered. |
is 10-30 calendar days. |
104
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
2. Summary of material accounting policy information (continued)
105
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Group | Company | |||
At 31 | At 31 | At 31 | At 31 | |
December | December | December | December | |
2025 | 2024 | 2025 | 2024 | |
Trade receivables | 24,442 | 27,556 | 113 | 141 |
Trade receivables from related parties | - | - | 493 | 345 |
Loans granted to related parties | - | - | 8,429 | 2,105 |
Other amounts receivable | 1,133 | 1,702 | 14 | 85 |
Other financial assets at amortised cost | 300 | - | - | - |
Cash and cash equivalents | 10,271 | 14,018 | 3,609 | 10,885 |
Total | 36,146 | 43,276 | 12,658 | 13,561 |
Group | Company | |||||||
Individually | Individually | Collectively | Collectively | Individually | Individually | Collectively | Collectively | |
assessed | assessed | assessed | assessed | assessed | assessed | assessed | assessed | |
impairment | impairment | impairment | impairment | impairment | impairment | impairment | impairment | |
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
At 1 January | 39 | 37 | - | - | 2 | 4 | - | - |
Business | 175 | - | - | - | - | - | - | - |
acquisition | ||||||||
Increase in allowance | 547 | 4 | - | - | - | - | - | - |
Receivables | - | (2) | - | - | - | (2) | - | - |
written off At 31 | 761 | 39 | - | - | 2 | 2 | - | - |
December |
106
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Not | Trade receivables past due | |||||||
past | < 30 | 30–60 | 60–90 | 90–360 | > 360 | Total | ||
due | ||||||||
days | days | days | days | days | ||||
Trade receivables – net (2025) | 22,384 | 1,563 | 369 | 50 | 76 | - | 24,442 | |
Trade receivables – gross | 22,384 | 2,058 | 392 | 50 | 107 | 212 | 25,203 | |
Recognised loss allowance | - | (495) | (23) | - | (31) | (212) | (761) | |
Expected loss coefficient | - | 24% | 6% | - | 29% | 100% | 3% | |
Trade receivables – net (2024) | 25,333 | 1,533 | 614 | 58 | 18 | - | 27,556 | |
Trade receivables – gross | 25,333 | 1,533 | 614 | 58 | 20 | 37 | 27,595 | |
Recognised loss allowance | - | - | - | - | (2) | (37) | (39) | |
Expected loss coefficient | - | - | - | - | 10% | 100% | - |
Company
Not
past
due
Trade receivables past due
Total
< 30
days
30–60
days
60–90
days
90–360
days
> 360
days
Trade receivables – net (2025)
37
76
-
-
-
-
113
Trade receivables – gross
37
76
-
-
2
-
115
Recognised loss allowance
-
-
-
-
(2)
-
(2)
Expected loss coefficient
-
-
-
-
100%
-
-
Trade receivables – net (2024)
68
59
14
-
-
-
141
Trade receivables – gross
68
59
14
-
2
-
143
Recognised loss allowance
-
-
-
-
(2)
-
(2)
Expected loss coefficient
-
-
-
-
100%
-
-
107
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Group | Company | ||||
At 31 | At 31 | At 31 | At 31 | ||
December | December | December | December | ||
2025 | 2024 | 2025 | 2024 | ||
AA- | 48 | 188 | - | - | |
A+ | 5,154 | 10,962 | 3,609 | 10,885 | |
A- | 4,475 | 790 | - | - | |
Baa1 | 268 | 1,965 | - | - | |
Other | 327 | 113 | - | - | |
Total | 10,271 | 14,018 | 3,609 | 10,885 |
Less than 3 | 3 to 12 | 1 to 5 | Over 5 | Total | Carrying | |
months | months | years | years | amount | ||
Borrowings | 2,837 | 1,167 | 9,355 | - | 13,359 | 12,448 |
Lease liabilities | 411 | 1,091 | 3,293 | 7,151 | 11,946 | 7,143 |
Trade payables | 27,550 | - | - | - | 27,550 | 27,550 |
Other amounts payable | 3,665 | - | 1,165 | - | 4,830 | 4,830 |
At 31 December 2025 | 34,463 | 2,258 | 13,813 | 7,151 | 57,685 | 51,971 |
Borrowings | 530 | 1,362 | 688 | - | 2,580 | 2,497 |
Lease liabilities | 201 | 599 | 2,536 | 6,683 | 10,019 | 5,373 |
Trade payables | 25,462 | - | - | - | 25,462 | 25,462 |
Other amounts payable | 2,499 | - | 2,034 | - | 4,533 | 4,533 |
At 31 December 2024 | 28,692 | 1,961 | 5,258 | 6,683 | 42,594 | 37,865 |
The table below summarises the maturity profile of the Company’s financial liabilities as at 31 December 2025 and
2024 based on contractual undiscounted payments.
Company
Less than 3
months
3 to 12
months
1 to 5
years
Over 5
years
Total
Carrying
amount
Borrowings
-
-
-
-
-
-
Lease liabilities
6
18
98
1,582
1,704
573
Amounts payable to related
parties
12,822
-
-
-
12,822
12,822
Trade payables
242
-
-
-
242
242
Other amounts payable
940
-
-
-
940
940
At 31 December 2025
14,010
18
98
1,582
15,708
14,577
Borrowings
-
-
-
-
-
-
Lease liabilities
6
18
98
1,582
1,704
575
Amounts payable to related
parties
12,822
-
-
-
12,822
12,822
Trade payables
242
-
-
-
242
242
Other amounts payable
940
-
-
-
940
940
At 31 December 2024
14,010
18
98
1,582
15,708
14,579
108
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
3. Financial risk management (continued)
Increase/decr | Group | Company | |
ease in basis | Effect on | Effect on | |
points | profit before | profit before | |
tax | tax | ||
2025 | |||
EUR | +100 | (124) | - |
EUR | -100 | 124 | - |
2024 | |||
EUR | +100 | (25) | - |
EUR | -100 | 25 | - |
2025 | 2024 | |
Reasonably possible change in the EUR/UAH exchange rate, % | +/-20% | +/-20% |
Financial assets denominated in the Ukrainian hryvnias | 1,419 | 470 |
Financial liabilities denominated in the Ukrainian hryvnias | 261 | 201 |
Estimated negative effect on profit before tax | (196) | (45) |
Estimated positive effect on profit before tax | 294 | 67 |
Reasonably possible change in the EUR/PLN exchange rate, % | +/-20% | +/-20% |
Financial assets denominated in the Polish zloty | 2,895 | 4,022 |
Financial liabilities denominated in the Polish zloty | 2,225 | 2,121 |
Estimated negative effect on profit before tax | (111) | (317) |
Estimated positive effect on profit before tax | 167 | 475 |
109
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
3. Financial risk management (continued)
Group | Company | |||
At 31 | At 31 | At 31 | At 31 | |
December | December | December | December | |
Non-current liabilities (excluding subsidies, | 2025 | 2024 | 2025 | 2024 |
16,333 | 8,064 | 596 | 602 | |
grants and deferred income tax liability) | ||||
Current liabilities | 42,004 | 36,501 | 14,588 | 14,722 |
Total liabilities | 58,337 | 44,565 | 15,184 | 15,324 |
Equity attributable to shareholders of the Company | 137,287 | 128,373 | 87,619 | 83,730 |
Debt-to-equity ratio | 42% | 35% | 17% | 18% |
110
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
5. Property, plant and equipment
Buildings | Machinery | Construction | ||||
Group | and | and | Motor | Other | work in | Total |
structures | equipment | vehicles | assets | progress and | ||
prepayments | ||||||
At 1 January 2024 | ||||||
Cost | 49,245 | 131,451 | 2,510 | 3,055 | 5,351 | 191,612 |
Accumulated depreciation | (25,421) | (94,090) | (1,689) | (1,816) | - | (123,016) |
Net book amount | 23,824 | 37,361 | 821 | 1,239 | 5,351 | 68,596 |
Opening net book amount | 23,824 | 37,361 | 821 | 1,239 | 5,351 | 68,596 |
at 1 January 2024 | ||||||
Additions | 99 | 367 | 1,049 | 179 | 18,228 | 19,922 |
Business acquisition | 4,496 | 8,803 | 64 | 5,972 | 130 | 19,465 |
Disposals and write-offs | (43) | - | (109) | (3) | - | (155) |
Reclassification to right-of-use assets | - | - | - | - | (11) | (11) |
Transfer from construction work in progress to property, plant and equipment | 605 | 5,613 | 127 | 228 | (6,573) | - |
Transfer from/to inventory | - | - | - | - | (411) | (411) |
Reclassification between groups | - | 5,102 | - | (5,102) | - | - |
Reclassification to intangible assets | - | - | - | - | (69) | (69) |
Foreign exchange effect | 25 | - | - | 60 | 1 | 86 |
Depreciation charge | (1,799) | (6,439) | (340) | (1,411) | - | (9,989) |
Closing net book amount | 27,207 | 50,807 | 1,612 | 1,162 | 16,646 | 97,434 |
at 31 December 2024 | ||||||
At 31 December 2024 | ||||||
Cost | 54,181 | 152,192 | 3,195 | 3,351 | 16,646 | 229,565 |
Accumulated depreciation | (26,974) | (101,385) | (1,583) | (2,189) | - | (132,131) |
Net book amount | 27,207 | 50,807 | 1,612 | 1,162 | 16,646 | 97,434 |
Opening net book amount | 27,207 | 50,807 | 1,612 | 1,162 | 16,646 | 97,434 |
at 1 January 2025 | ||||||
Additions | 48 | 625 | 420 | 137 | 25,960 | 27,190 |
Business acquisition | - | 77 | 54 | 64 | - | 195 |
Disposals and write-offs | - | (84) | (51) | (1) | - | (136) |
Reclassification to intangible assets | - | - | - | - | (90) | (90) |
Transfer from construction work in progress to property, plant and equipment | 8,099 | 6,618 | 111 | 58 | (14,886) | - |
Transfer from/to inventory | (4) | - | - | - | - | (4) |
Foreign exchange effect | 9 | 20 | (5) | (2) | 3 | 25 |
Depreciation charge | (1,960) | (8,128) | (417) | (425) | - | (10,930) |
Closing net book amount | 33,399 | 49,935 | 1,724 | 993 | 27,633 | 113,684 |
at 31 December 2025 | ||||||
At 31 December 2025 | ||||||
Cost | 62,277 | 159,373 | 3,337 | 3,452 | 27,633 | 256,072 |
Accumulated depreciation | (28,878) | (109,438) | (1,613) | (2,459) | - | (142,388) |
Net book amount | 33,399 | 49,935 | 1,724 | 993 | 27,633 | 113,684 |
111
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
5. Property, plant and equipment (continued)
Company
Buildings
and
structures
Machinery
and
equipment
Motor
vehicles
Other
assets
Construction
work in
progress and
prepayments
Total
At 1 January 2024
Cost
16,843
62,726
374
1,419
2,052
83,414
Accumulated depreciation
(8,220)
(48,390)
(194)
(719)
-
(57,523)
Net book amount
8,623
14,336
180
700
2,052
25,891
Opening net book amount
at 1 January 2024
8,623
14,336
180
700
2,052
25,891
Additions
17
3
223
46
594
883
Transferred assets upon separation of a
business unit
(6,977)
(13,458)
(121)
(469)
(2,491)
(23,516)
Disposals and write-offs
(42)
-
-
(1)
-
(43)
Transfer from construction work in
progress to property, plant and
equipment
-
-
29
56
(85)
-
Depreciation charge
(275)
(881)
(54)
(124)
-
(1,334)
Closing net book amount
at 31 December 2024
1,346
-
257
208
70
1,881
At 31 December 2024
Cost
1,830
-
392
447
70
2,739
Accumulated depreciation
(484)
-
(135)
(239)
-
(858)
Net book amount
1,346
-
257
208
70
1 881
Opening net book amount
at 1 January 2025
1,346
-
257
208
70
1,881
Additions
-
-
-
12
3,902
3,914
Depreciation charge
(56)
-
(54)
(60)
-
(170)
Closing net book amount
at 31 December 2025
1,290
-
203
160
3,972
5,625
At 31 December 2025
Cost
1,819
-
344
419
3,972
6,554
Accumulated depreciation
(529)
-
(141)
(259)
-
(929)
Net book amount
1,290
-
203
160
3,972
5,625
Prepayments amounted EUR 75 thousand as at 31 December 2025 (31 December 2024: EUR 42 thousand).
112
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
5. Property, plant and equipment (continued)
Group | Company | |||
At 31 | At 31 | At 31 | At 31 | |
December | December | December | December | |
2025 | 2024 | 2025 | 2024 | |
Cost of sales | 10,512 | 9,581 | 102 | 1,213 |
Administrative expenses | 274 | 298 | 68 | 94 |
Selling and distribution expenses | 144 | 110 | - | 27 |
Statement of comprehensive income | 10,930 | 9,989 | 170 | 1,334 |
– total |
Group | Company | ||||
At 31 | At 31 | At 31 | At 31 | ||
December | December | December | December | ||
2025 | 2024 | 2025 | 2024 | ||
Buildings and structures | 1,112 | 1,032 | 14 | 25 | |
Machinery and equipment | 4,067 | 3,766 | - | - | |
Motor vehicles | 418 | 334 | - | 52 | |
Other assets | 437 | 383 | 7 | 27 | |
Total | 6,034 | 5,515 | 21 | 104 |
113
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Buildings and | Machinery | Motor | |||
Land | structures | and | vehicles | Total | |
equipment | |||||
At 1 January 2024 | |||||
Cost | 3,902 | 625 | 569 | - | 5,096 |
Accumulated depreciation | (424) | (246) | (111) | - | (781) |
Net book amount | 3,478 | 379 | 458 | - | 4,315 |
Opening net book amount | 3,478 | 379 | 458 | - | 4,315 |
at 1 January 2024 | |||||
Change in value-in-use | 41 | 214 | 1,674 | - | 1,929 |
Foreign exchange effect | 1 | - | - | - | 1 |
Business acquisition | 101 | - | - | - | 101 |
Reclassification from property, plant and equipment | 11 | - | - | - | 11 |
Disposals and write-offs | (136) | - | (19) | - | (155) |
Depreciation charge | (72) | (168) | (351) | - | (591) |
Closing net book amount | 3,424 | 425 | 1,762 | - | 5,611 |
at 31 December 2024 | |||||
At 31 December 2024 | |||||
Cost | 4,122 | 650 | 1,864 | - | 6,636 |
Accumulated depreciation | (698) | (225) | (102) | (1,025) | |
Net book amount | 3,424 | 425 | 1,762 | - | 5,611 |
Opening net book amount | 3,424 | 425 | 1,762 | - | 5,611 |
at 1 January 2025 | |||||
Change in value-in-use | 234 | 39 | 477 | - | 750 |
Business acquisition | - | 1,464 | - | 100 | 1,564 |
Disposals and write-offs | - | - | (26) | - | (26) |
Foreign exchange effect | 1 | - | - | - | 1 |
Depreciation charge | (124) | (266) | (453) | (13) | (856) |
Closing net book amount | 3,535 | 1,662 | 1,760 | 87 | 7,044 |
at 31 December 2025 | |||||
At 31 December 2025 | |||||
Cost | 4,354 | 2,117 | 2,216 | 100 | 8,787 |
Accumulated depreciation | (819) | (455) | (456) | (13) | (1,743) |
Net book amount | 3,535 | 1,662 | 1,760 | 87 | 7,044 |
114
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
6. Right-of-use assets (continued)
Company
Land lease
rights
Buildings and
structures
Machinery and
equipment
Total
At 1 January 2024
Cost
1,017
1,613
242
2,872
Accumulated depreciation
(60)
(1,154)
(73)
(1,287)
Net book amount
957
459
169
1,585
Opening net book amount
at 1 January 2024
957
459
169
1,585
Change in value-in-use
41
-
-
41
Disposals, write-offs
(135)
(382)
-
(517)
Transfer related to the transfer of part of a
business
(312)
-
(129)
(441)
Depreciation charge
(10)
(77)
(40)
(127)
Closing net book amount
at 31 December 2024
541
-
-
541
At 31 December 2024
Cost
582
-
-
582
Accumulated depreciation
(41)
-
-
(41)
Net book amount
541
-
-
541
Opening net book amount
at 1 January 2025
541
-
-
541
Depreciation charge
(7)
-
-
(7)
Closing net book amount
at 31 December 2025
534
-
-
534
At 31 December 2025
Cost
582
-
-
582
Accumulated depreciation
(48)
-
-
(48)
Net book amount
534
-
-
534
115
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Licences, | Development | ||||
Goodwill | patents, brand | Software | work in | Total | |
progress | |||||
At 1 January 2024 | |||||
Cost | 3,001 | 84 | 2,527 | 1,176 | 6,788 |
Accumulated amortization | - | (56) | (2,091) | (370) | (2,517) |
Net book amount | 3,001 | 28 | 436 | 806 | 4,271 |
Opening net book amount | 3,001 | 28 | 436 | 806 | 4,271 |
at 1 January 2024 | |||||
Additions | - | 7 | 6 | 1,377 | 1,390 |
Business acquisition | - | - | - | 5 | 5 |
Transfer from development work in progress to intangible assets | - | - | 369 | (369) | - |
Reclassification from property, plant and equipment | - | - | - | 69 | 69 |
Amortization charge | - | (13) | (210) | (26) | (249) |
Closing net book amount | 3,001 | 22 | 601 | 1,862 | 5,486 |
at 31 December 2024 | |||||
At 31 December 2024 | |||||
Cost | 3,001 | 91 | 2,901 | 2,352 | 8,345 |
Accumulated amortization | - | (69) | (2,300) | (490) | (2,859) |
Net book amount | 3,001 | 22 | 601 | 1,862 | 5,486 |
Opening net book amount | 3,001 | 22 | 601 | 1,862 | 5,486 |
at 1 January 2025 | |||||
Additions | - | 5 | 13 | 2,155 | 2,173 |
Business acquisition | 5,055 | 2,068 | 1 | - | 7,124 |
Transfer from development work in progress to intangible assets | - | - | 2,636 | (2,636) | - |
Foreign exchange effect | - | (2) | - | 1 | (1) |
Reclassification from property, plant and equipment | - | - | - | 90 | 90 |
Amortization charge | - | (60) | (273) | (48) | (381) |
Closing net book amount | 8,056 | 2,033 | 2,978 | 1,424 | 14,491 |
at 31 December 2025 | |||||
At 31 December 2025 | |||||
Cost | 8,056 | 2,131 | 5,464 | 2,027 | 17,678 |
Accumulated amortization | - | (98) | (2,486) | (603) | (3,187) |
Net book amount | 8,056 | 2,033 | 2,978 | 1,424 | 14,591 |
116
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Revenue | Projected annual revenue growth (decrease), % | ||||
2024 | 2025 | 2026 | 2027 | 2028 | 2029 |
49,700 | 0.2 | 6.6 | 0.1 | 0.1 | 0.1 |
Gross profit margin, % | |||||
2024 | 2025 | 2026 | 2027 | 2028 | 2029 |
12.1 | 14.8 | 21.9 | 24.6 | 24.5 | 24.0 |
Projected annual revenue growth (decrease), % | |||||
2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
49,500 | 7.5 | 2.3 | 3.8 | 2.8 | 0.7 |
Gross profit margin, % | |||||
2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
8.1 | 15.5 | 16.7 | 18.2 | 19.5 | 19.4 |
Description | Carrying value at | Change in fair value | Fair value at |
acquisition | acquisition | ||
Property, plant and equipment | 9,822 | 9,755 | 19,577 |
Intangible assets | 676 | (671) | 5 |
Current assets | 8,040 | - | 8,040 |
Total assets | 18,538 | 9,084 | 27,622 |
Equity | 14,395 | 7,230 | 21,625 |
Goodwill | - | - | - |
Non-current liabilities | 754 | 70 | 823 |
Current liabilities | 3,391 | 1,784 | 5,174 |
Total equity and liability | 18,538 | 9,084 | 27,622 |
117
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Description | Carrying value at | Change in fair value | Fair value at |
acquisition | acquisition | ||
Property, plant and equipment | 195 | - | 195 |
Intangible assets | 653 | 2,068 | 2,721 |
Right-of-use assets | 1,564 | - | 1,564 |
Current assets | 7,675 | - | 7,675 |
Cash and cash equivalents | 4,582 | - | 4,582 |
Non-current liabilities | (2,342) | (1,064) | (3,406) |
Current liabilities | (6,563) | - | (6,563) |
Total net identifiable assets acquired | 6,768 | ||
Goodwill | 5,055 | ||
Total net assets acquired | 11,823 | ||
The total consideration for the acquisition consists of a deferred payment of EUR 95 thousand and a cash payment | |||
of EUR 11,728 As a result of the acquisition of this subsidiary, goodwill of EUR 5,055 thousand was recognised in the Group’s financial statements. Goodwill is not amortized, but its value is tested for impairment annually. From 1 October 2025 to 31 December 2025, the acquired company contributed EUR 20,012 thousand to the Group’s revenue and reduced the Group’s net profit by EUR 578 thousand. | thousand. In the cash flow statement, the payment for the investment is presented at a net amount of | ||
EUR 7,146 thousand, calculated as the cash payment less cash and cash equivalents acquired. | |||
118
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
7. Intangible assets (continued)
Company
Licences,
patents
Software
Development
work in progress
Total
At 1 January 2024
Cost
85
1,062
493
1,640
Accumulated amortisation
(57)
(865)
(13)
(935)
Net book amount
28
197
480
705
Opening net book amount
at 1 January 2024
28
197
480
705
Additions
6
-
281
287
Transfer from development work in
progress to intangible assets
-
99
(99)
-
Transferring assets, separating part of
the business
(4)
-
(465)
(469)
Amortisation charge
(11)
(81)
(2)
(94)
Closing net book amount
at 31 December 2024
19
215
195
429
At 31 December 2024
Cost
86
1,153
209
1,448
Accumulated amortisation
(67)
(938)
(14)
(1,019)
Net book amount
19
215
195
429
Opening net book amount
at 1 January 2025
19
215
195
429
Additions
4
13
793
810
Transfer from development work in
progress to intangible assets
-
295
(295)
-
Amortisation charge
(7)
(128)
(1)
(136)
Closing net book amount
at 31 December 2025
16
395
692
1,103
At 31 December 2025
Cost
58
1,383
708
2,149
Accumulated amortisation
(42)
(989)
(15)
(1,046)
Net book amount
16
395
692
1,103
119
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Group | Company | |||
At 31 December | At 31 December | At 31 December | At 31 December | |
2025 | 2024 | 2025 | 2024 | |
Licences, patents | 535 | 9 | 8 | 9 |
Software | 236 | 221 | 40 | 97 |
Other assets | - | 520 | - | - |
Total | 771 | 750 | 48 | 106 |
Buildings and | Construction | |||
Group | structures | Other assets | work in | Total |
progress | ||||
At 1 January 2024 | ||||
Cost | 5,063 | 19 | 690 | 5,772 |
Accumulated depreciation | (1,148) | (3) | - | (1,151) |
Net book amount | 3,915 | 16 | 690 | 4,621 |
Opening net book amount at 1 January 2024 | 3,915 | 16 | 690 | 4,621 |
Additions | (32) | - | 245 | 213 |
Disposals, write-offs | (1) | - | - | (1) |
Reclassification from construction work in progress | 429 | - | (429) | - |
Transfer from/to inventory | (126) | - | - | (126) |
Depreciation charge | (261) | (5) | - | (266) |
Closing net book amount at 31 December 2024 | 3,924 | 11 | 506 | 4,441 |
At 31 December 2024 | ||||
Cost | 5,250 | 19 | 506 | 5,775 |
Accumulated depreciation | (1,326) | (8) | - | (1,334) |
Net book amount | 3,924 | 11 | 506 | 4,441 |
Opening net book amount at 1 January 2025 | 3,924 | 11 | 506 | 4,441 |
Additions | - | - | 165 | 165 |
Depreciation charge | (278) | (5) | - | (283) |
Closing net book amount at 31 December 2025 | 3,646 | 6 | 671 | 4,323 |
At 31 December 2025 | ||||
Cost | 5,250 | 19 | 671 | 5,940 |
Accumulated depreciation | (1,604) | (13) | - | (1,617) |
Net book amount | 3,646 | 6 | 671 | 4,323 |
120
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
8. Investment property (continued)
Company
Buildings and
structures
Other assets
Construction
work in
progress
Total
At 1 January 2024
Cost
5,554
19
690
6,263
Accumulated depreciation
(1,622)
(3)
-
(1,625)
Net book amount
3,932
16
690
4,638
Opening net book amount
at 1 January 2024
3,932
16
690
4,638
Additions
(32)
-
245
213
Transferring assets, separating part of the business
(16)
-
-
(16)
Reclassification from construction work in progress
429
-
(429)
-
Disposals, write-offs
(2)
-
-
(2)
Transfer from/to inventory
(126)
-
-
(126)
Depreciation charge
(261)
(5)
-
(266)
Closing net book amount
at 31 December 2024
3,924
11
506
4,441
At 31 December 2024
Cost
5,250
19
506
5,775
Accumulated depreciation
(1,326)
(8)
-
(1,334)
Net book amount
3,924
11
506
4,441
Opening net book amount
at 1 January 2025
3,924
11
506
4,441
Additions
-
-
165
165
Depreciation charge
(278)
(5)
-
(283)
Closing net book amount
at 31 December 2025
3,646
6
671
4,323
At 31 December 2025
Cost
5,250
19
671
5,940
Accumulated depreciation
(1,604)
(13)
-
(1,617)
Net book amount
3,646
6
671
4,323
121
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
At 31 | At 31 | |
December | December | |
2025 | 2024 | |
Change in the discount rate (+100 basis points) | 4,739 | 4,462 |
Change in the discount rate (-100 basis points) | 5,652 | 5,016 |
Change in the rental yield (+100 basis points) | 5,550 | 4,418 |
Change in the rental yield (-100 basis points) | 4,822 | 5,109 |
Group | Company | ||||
At 31 | At 31 | At 31 | At 31 | ||
December | December | December | December | ||
2025 | 2024 | 2025 | 2024 | ||
Materials | 9,761 | 9,242 | 7 | 1 | |
Work in progress | 3,040 | 2,613 | - | - | |
Finished products | 9,868 | 7,492 | - | - | |
Inventories in transit | 313 | 863 | - | - | |
Prepayments | 595 | 380 | 4 | - | |
Total | 23,577 | 20,590 | 11 | 1 |
Group | Company | |||
At 31 | At 31 | At 31 | At 31 | |
December | December | December | December | |
2025 | 2024 | 2025 | 2024 | |
Trade receivables – gross | 25,203 | 27,595 | 115 | 143 |
Loss allowance | (761) | (39) | (2) | (2) |
Trade receivables – net | 24,442 | 27,556 | 113 | 141 |
Amounts receivable from related parties | - | - | 493 | 345 |
(Note 0) | ||||
Amounts receivable to group companies | - | - | 8,429 | 2,105 |
under cash pool agreement | ||||
VAT receivable | 2,185 | 2,419 | 2 | - |
Subsidies receivable | - | 1,367 | - | - |
Other amounts receivable – gross | 1,133 | 335 | 14 | 85 |
Other finance amounts receivable | 300 | - | - | |
Total trade and other amounts | 28,060 | 31,677 | 9,051 | 2,676 |
receivable – net | ||||
Of which: | ||||
Non-current amounts receivable | 300 | - | - | - |
Current amounts receivable | 27,760 | 31,677 | 9,051 | 2,676 |
122
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Group | Company | |||
At 31 December | At 31 December | At 31 December | At 31 December | |
2025 | 2024 | 2025 | 2024 | |
Cash at bank | 6,674 | 3,142 | 12 | 9 |
Cashpool | 3,597 | 10,876 | 3,597 | 10,876 |
TOTAL | 10,271 | 14,018 | 3,609 | 10,885 |
Type of shares | Securities’ | Number of | Par value, | Total par value, |
ISIN code | shares, units | EUR | EUR | |
Ordinary registered shares | LT0000102030 | 132,820,000 | 0.29 | 38,517,800 |
123
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Group | Company | |||
At 31 | At 31 | At 31 | At 31 | |
Non-current borrowings: | December 2025 | December 2024 | December 2025 | December 2024 |
Bank borrowings | 8,773 | 677 | - | - |
Current borrowings: | 8,773 | 677 | - | - |
Bank borrowings | 3,675 | 1,820 | - | - |
3,675 | 1,820 | - | - | |
TOTAL | 12,448 | 2,497 | - | - |
Group | Company | ||||
2025 | 2024 | 2025 | 2024 | ||
Opening balance | 2,497 | 4,644 | - | 1,868 | |
Proceeds from borrowings | 12,114 | - | - | - | |
Transfered | - | - | - | (1,456) | |
Repayments | (2,163) | (2,147) | - | (412) | |
Interest charged | 179 | 176 | - | 30 | |
Interest paid | (179) | (176) | - | (30) | |
Closing balance | 12,448 | 2,497 | - | - |
Group | Company | |||
At 31 | At 31 | At 31 | At 31 | |
December 2025 | December 2024 | December 2025 | December 2024 | |
EUR | 12,448 | 2,497 | - | - |
TOTAL | 12,448 | 2,497 | - | - |
124
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
13. Borrowings (continued)
Indicators of the Group | Indicators of the Company | |||||
At 31 | At 31 | At 31 | At 31 | |||
December | December | December | December | |||
2025 | 2024 | 2025 | 2024 | |||
Debt/EBITDA | < 4.0 | 0.07 | (1.02) | - | (351) | |
Debt service coverage ratio | > 1.2 | 12.7 | 15.4 | - | - | |
(DSCR) | ||||||
Group | Company | |||
At 31 | At 31 | At 31 | At 31 | |
December 2025 | December 2024 | December 2025 | December 2024 | |
Weighted average interest rate | 3.41% | 4.46% | - | - |
Group | Company | ||||
2025 | 2024 | 2025 | 2024 | ||
Non-current | 5,882 | 4,807 | 571 | 573 | |
Current | 1,261 | 566 | 2 | 2 | |
TOTAL | 7,143 | 5,373 | 573 | 575 |
Group | Company | ||||
2025 | 2024 | 2025 | 2024 | ||
Balance at 1 January | 5,373 | 4,222 | 575 | 1,634 | |
New lease liabilities | 749 | 1,929 | - | 41 | |
Business acquisition | 1,874 | - | - | - | |
Interest charged | 245 | 168 | 24 | 39 | |
Lease payments | (1,072) | (841) | (26) | (153) | |
Lease terminations | (27) | (106) | - | (986) | |
Balance at 31 December | 7,143 | 5,373 | 573 | 575 |
125
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Group | Company | |
Balance at 31 December 2023 | 1,293 | 1,199 |
Obtained grants | 722 | - |
Transferred after separation of part of the business | - | (1,163) |
Amortisation charge | (81) | (36) |
Balance at 31 December 2024 | 1,934 | - |
Grant adjustment | (212) | - |
Amortisation charge | (153) | - |
Balance at 31 December 2025 | 1,569 | - |
Group | Company | |
At 1 January 2024 | 296 | 112 |
Change during the year 2024 | 250 | (83) |
At 31 December 2024 | 546 | 29 |
Change during the year 2025 | (33) | (4) |
At 31 December 2025 | 513 | 25 |
At 31 | At 31 | |
December 2025 | December 2024 | |
Discount rate | 2.88% | 2.88% |
Expected annual salary growth rate | 5% | 5% |
Group | Company | |||
At 31 | At 31 | At 31 | At 31 | |
December 2025 | December 2024 | December 2025 | December 2024 | |
Trade payables | 27,550 | 25,462 | 774 | 4,007 |
Wages and salaries and social security | 5,506 | 4,744 | 843 | 715 |
contributions | ||||
Advance amounts received | 347 | 189 | 5 | - |
Accrued expenses | 1,021 | 435 | 34 | 19 |
Amounts payable to group companies | - | - | 11,885 | 9,058 |
under cash pool agreement | ||||
Other amounts payable | 3,809 | 4,098 | 1,027 | 921 |
TOTAL | 38,233 | 34,928 | 14,568 | 14,720 |
Of which: | ||||
Attributable to financial liabilities (Note 3) | 32,380 | 29,995 | 13,720 | 14,005 |
Not attributable to financial liabilities | 5,853 | 4 933 | 848 | 715 |
126
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Raw materials | |||||||
Group | Paper and | Wood | for corrugated | Total | Unallocated | ||
2025 | paper | hardboards | cardboard and | reportable | (1/2) | Elimination | TOTAL |
products | related | segments | |||||
products | |||||||
Unconsolidated segment | 152,817 | 29,233 | 105,595 | 287,645 | 18,972 | (60,193) | 246,424 |
sales | |||||||
Inter-segment sales | (12,679) | (1,866) | (30,387) | (44,932) | (15,261) | 60,193 | - |
Sales to third parties | 140,138 | 27,367 | 75,208 | 242,713 | 3,711 | - | 246,424 |
Cost of sales | (109,336) | (21,749) | (62,472) | (193,557) | (2,911) | - | (196,468) |
Gross profit | 30,802 | 5,618 | 12,736 | 49,156 | 800 | - | 49,956 |
Raw materials | |||||||
Paper and | Wood | for corrugated | Total | Unallocated | |||
paper | hardboards | cardboard and | reportable | (1/2) | Elimination | TOTAL | |
products | related | segments | |||||
Unconsolidated segment | products | ||||||
sales | 117,305 | 27,090 | 104,778 | 249,173 | 15,278 | (51,459) | 212,992 |
Inter-segment sales | (8,326) | (1,341) | (30,465) | (40,132) | (11,327) | 51,459 | - |
Sales to third parties | 108,979 | 25,749 | 74,313 | 209,041 | 3,951 | - | 212,992 |
Cost of sales | (82,203) | (20,253) | (59,506) | (161,962) | (5,645) | - | (167,607) |
Gross profit | 26,776 | 5,496 | 14,807 | 47,079 | (1,694) | - | 45,385 |
Group | Company | ||||
2025 | 2024 | 2025 | 2024 | ||
Domestic market (Lithuania) | 55,304 | 57,240 | 6,539 | 14,761 | |
European Union | 166,722 | 135,437 | 745 | 20,803 | |
Other countries | 24,397 | 20,315 | - | 1,105 | |
TOTAL | 246,423 | 212,992 | 7,284 | 36,669 |
Group | Company | |||
2025 | 2024 | 2025 | 2024 | |
Lithuania | 111,246 | 101,876 | 11,585 | 7,292 |
Latvia | 1,399 | 1,259 | - | - |
Poland | 17,861 | 9,525 | - | - |
Germany | 8,741 | - | - | - |
Ukraine | 346 | 312 | - | - |
TOTAL | 139,593 | 112,972 | 11,585 | 7,292 |
127
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Group | Company | |||
2025 | 2024 | 2025 | 2024 | |
Raw materials and consumables | 108,424 | 87,794 | - | 15,879 |
Wages and salaries and social security contributions | 31,244 | 26,853 | 3,772 | 4,969 |
Energy | 28,399 | 26,767 | - | 3,214 |
Other expenses | 17,177 | 16,441 | 1,393 | 2,162 |
Depreciation and amortisation of non-current assets, including | 11,038 | 9,316 | 238 | 1,290 |
grants | ||||
Remuneration in share options | 186 | 436 | 14 | 166 |
TOTAL | 196,468 | 167,607 | 5,417 | 27,680 |
Group | Company | ||||
2025 | 2024 | 2025 | 2024 | ||
Fuel and transport services | 14,827 | 11,969 | - | 1,152 | |
Wages and salaries and social security contributions | 4,254 | 2,989 | - | 471 | |
Other selling expenses | 898 | 582 | - | 72 | |
Property maintenance and servicing | 605 | 494 | - | 49 | |
Intermediation, marketing, advertising and representation | 506 | 441 | - | 46 | |
Depreciation and amortisation of non-current assets | 344 | 222 | - | 121 | |
Remuneration in share options | 49 | 75 | - | - | |
TOTAL | 21,483 | 16,772 | - | 1,911 |
Group | Company | |||
2025 | 2024 | 2025 | 2024 | |
Wages and salaries and social security contributions | 4,668 | 3,921 | 8 | 610 |
Legal services | 1,235 | 1,364 | 1 | 48 |
Taxes (other than income tax) | 1,055 | 954 | 67 | 158 |
Other administrative expenses | 1,051 | 830 | 115 | 188 |
Depreciation and amortization of non-current assets | 918 | 734 | 359 | 374 |
Social expenses | 899 | 781 | 78 | 153 |
Insurance services | 847 | 746 | 34 | 92 |
Property maintenance and servicing | 646 | 801 | 264 | 396 |
Impairment of doubtful amounts receivable/(reversal of impairment | 547 | 4 | - | - |
Audit services | 436 | 285 | 27 | 38 |
Security services | 374 | 388 | - | 15 |
Bonuses and other similar payments | 274 | 249 | 131 | 130 |
Consultation services | 194 | 156 | - | 9 |
Personnel training and recruitment expenses Support | 165 | 165 | 3 | 39 |
Support | 157 | 314 | 19 | 86 |
Remuneration in share options Fuel and transport services | 147 | 305 | - | 23 |
Fuel and transport services | 45 | 45 | - | 5 |
Expenses for the listing of securities and related expenses | 45 | 39 | 45 | 39 |
Advertising and representation | 33 | 87 | 8 | 22 |
Costs of services provided by related companies and service | - | - | 14 | 298 |
units | ||||
TOTAL | 13,736 | 12,168 | 1,173 | 2,723 |
128
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Group | Company | |||
2025 | 2024 | 2025 | 2024 | |
Rental income | 924 | 901 | 853 | 892 |
Dividend income | - | - | 9,950 | 1,300 |
TOTAL | 924 | 901 | 10,803 | 2,192 |
In 2025, the Company received dividends of EUR 1,500 thousand from Grigeo Recycling UAB, dividends of EUR
1,500 thousand from Grigeo Baltwood UAB, dividends of EUR 3,650 thousand from Grigeo Hygiene UAB, dividends
of EUR 3,300 thousand from Grigeo Paper Packaging UAB. In 2024, the Company received dividends of EUR 3,00
thousand from Grigeo Recycling UAB, dividends of EUR 1,000 thousand from Grigeo Baltwood UAB.
Group | Company | ||||
Net gain from turnover of emission | 2025 | 2024 | 2025 | 2024 | |
allowances | 2,334 | 4,604 | - | 7 | |
Result of disposal of assets | 188 | 989 | 19 | 928 | |
Other gain/(losses) | 828 | 823 | 69 | 77 | |
TOTAL | 3,350 | 6,416 | 88 | 1,012 |
Group | Company | ||||
2025 | 2024 | 2025 | 2024 | ||
Interest income | 208 | 619 | 144 | 278 | |
Foreign exchange gain – net | 25 | 60 | - | - | |
Other finance income | 168 | 119 | - | 1 | |
Total finance income | 401 | 798 | 144 | 279 | |
Interest on loans and lease | (301) | (462) | (23) | (69) | |
Foreign exchange loss – net | - | - | (1) | (2) | |
Default charges and other finance costs | (595) | (229) | (21) | (31) | |
Total finance costs | (896) | (691) | (45) | (102) | |
Finance income/(costs) – net | (495) | 107 | 99 | 177 |
Group | Company | ||||
2025 | 2024 | 2025 | 2024 | ||
Current year income tax | 1,758 | 2,925 | 275 | 912 | |
Adjustments to previous year income tax | 105 | 16 | 1 | 19 | |
Deferred income tax (benefit) | 112 | 69 | (7) | 56 | |
Income tax expenses recognised in the statement of comprehensive income | 1,975 | 3,010 | 269 | 987 |
129
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
25. Income tax and deferred income tax (continued)
The amount of income tax expenses attributable to the operating result for the year can be reconciled against the
amount of income tax expenses that would result from applying the statutory income tax rate to profit before income
tax:
Group | Company | |||
2025 | 2024 | 2025 | 2024 | |
Profit before income tax | 18,515 | 23,869 | 11,685 | 7,736 |
Income tax expenses calculated at the tax | 2,962 | 3,580 | 1,870 | 1,160 |
rate of 16% (in 2024 15%) | ||||
Effect of a higher income tax rate applied in Ukraine | 8 | 13 | - | - |
Effect of a tax rate due to taxation in Latvia | (42) | (29) | - | - |
Effect of a tax rate due to taxation in Poland | 39 | (158) | - | - |
Effect of a tax rate due to taxation in Germany | (31) | - | - | - |
Effect of investment relief | (1,409) | (1,527) | (10) | (40) |
Sponsorship | (55) | (9) | (6) | (26) |
Adjustments of income tax in respect of prior periods | 105 | 6 | 1 | 19 |
Transfer of tax losses between group | - | - | (3) | 16 |
companies | ||||
Non-allowable deductions | 2,998 | 1,362 | 25 | 78 |
Income not subject to tax | (2,600) | (228) | (1,608) | (220) |
Income tax expenses recognised in the statement of comprehensive income | 1,975 | 3,010 | 269 | 987 |
Group | Company | |||
At 31 December | At 31 December | At 31 December | At 31 December | |
Deferred income tax assets | 2025 | 2024 | 2025 | 2024 |
Decrease in net realisable value | 5 | 5 | - | - |
of amounts receivable | ||||
Investment relief | 1,437 | 1,050 | - | - |
Write-downs of inventories to net | 193 | 171 | - | - |
realisable value | ||||
Long-term employee benefits | 90 | 93 | 4 | 5 |
Vacation reserve | 232 | 200 | 51 | 40 |
Right-of-use assets and liabilities | 45 | 32 | 7 | 5 |
Tax losses carried forward | - | - | - | - |
Other accruals | 4 | 4 | - | - |
Grants | 76 | 59 | - | - |
Deferred income tax assets | 2,082 | 1,614 | 62 | 50 |
Less: unrecognised part | - | - | - | - |
Deferred income tax assets – | 2,082 | 1,614 | 62 | 50 |
net | ||||
Deferred income tax liability | ||||
Property, plant and equipment | (6,257) | (5,865) | (26) | (21) |
Intangible assets | (682) | - | - | - |
Deferred income tax liability | (6,939) | (5,865) | (26) | (21) |
Deferred income tax – net | (4,857) | (4,251) | 36 | 29 |
130
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Change due Recognised | Change due Recognised | ||||||||
At 31 | to | in the | At 31 | to | in the | At 31 | |||
Group | December | acquisition statement of | December | acquisition | statement of | December | |||
2023 | of | comprehen- | 2024 | of | comprehen- | 2025 | |||
Non-current | investment | sive income | investment | sive income | |||||
assets | (2,474) | (2,530) | (861) | (5,865) | (682) | (392) | (6,939) | ||
Investment relief | 235 | - | 815 | 1,050 | - | 387 | 1,437 | ||
Long-term | |||||||||
employee | 45 | - | 48 | 93 | - | (3) | 90 | ||
benefits | |||||||||
Decrease in net | |||||||||
realisable value of amounts | 5 | - | - | 5 | - | - | 5 | ||
receivable | |||||||||
Write-downs of inventories to net | 168 | - | 3 | 171 | - | 22 | 193 | ||
realisable value | |||||||||
Vacation reserve | 237 | - | (37) | 200 | - | 32 | 232 | ||
Right-of-use | |||||||||
assets and liabilities | 14 | - | 18 | 32 | - | 13 | 45 | ||
Tax losses carried | 10 | - | (10) | - | - | - | - | ||
forward | |||||||||
Grants | 60 | - | (1) | 59 | - | 17 | 76 | ||
Other | 48 | - | (44) | 4 | 188 | (188) | 4 | ||
Total deferred | (1,652) | (2,530) | (69) | (4,251) | (494) | (112) | (4,857) | ||
income tax | |||||||||
Unrecognised | - | - | - | - | - | - | - | ||
part | |||||||||
Deferred income | (1,652) | (2,530) | (69) | (4,251) | (494) | (112) | (4,857) | ||
tax – net | |||||||||
Movements in the Company’s deferred income tax differences before and after tax were as follows:
Company
At 31
December
2023
Recognised in
the statement
of comprehen-
sive income
Business
relocation
At 31
December
2024
Recognised
in the
statement of
comprehen-
sive income
At 31
December
2025
Property, plant and
equipment
(924)
934
(31)
(21)
(5)
(26)
Long-term employee
benefits
17
(16)
4
5
(1)
4
Decrease in net realisable
value of amounts
receivable
-
-
-
-
-
-
Write-downs of inventories
to net realisable value
77
(68)
(9)
-
-
-
Vacation reserve
120
(97)
17
40
11
51
Grants
60
(56)
(4)
-
-
-
Right-of-use assets and
liabilities
8
-
(3)
5
2
7
Other
30
-
(30)
-
-
-
Total deferred income
tax
(612)
697
(56)
29
7
36
Unrecognised part
-
-
-
-
-
-
Deferred income tax –
net
(612)
697
(56)
29
7
36
131
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Group | Company | |||
Net profit for the year attributable to the | 2025 | 2024 | 2025 | 2024 |
Company’s shareholders | 16,597 | 20,818 | 11,416 | 6,749 |
Number of ordinary shares (at January 1 st ) | 131,400,000 | 131,400,000 | 131,400,000 | 131,400,000 |
Shares issued (July 16-18 d.) | 1,420,000 | - | 1,420,000 | - |
Number of ordinary shares (at December 31 st ) | 132,820,000 | 131,400,000 | 132,820,000 | 131,400,000 |
Share options | - | 1,660,000 | - | 1,660,000 |
Weighted average number of ordinary shares | 132,053,589 | 133,060,000 | 132,053,589 | 133,060,000 |
Earnings per share (in EUR) | 0.126 | 0.158 | 0.086 | 0.051 |
Diluted earnings per share (in EUR) | 0.126 | 0.156 | 0.086 | 0.051 |
27. Dividends per share
2025 | 2024 | |
Allocated dividends | 7,884 | 9,198 |
Number of shares | 131,400,000 | 131,400,000 |
Allocated dividends per share (in EUR) |
28. Adjusted EBITDA
The management of the Group and the Company calculate the adjusted EBITDA – they monitor this performance
indicator both at the consolidated level and at the individual company level. The management believes that this
indicator is important for understanding the Group’s and the Company’s financial performance. The adjusted EBITDA
is calculated by adjusting profit from continuing operations to exclude the impact of taxation, net finance costs,
depreciation, amortisation, impairment losses/reversals related to goodwill, intangible assets, property plant and
equipment. The calculation also includes amortisation of subsidies related to non-current assets which affects the
profit for the period.
The adjusted EBITDA as a performance indicator is not established by IFRS. The Group’s definition of the adjusted
EBITDA may not match with similarly named performance indicators and disclosures of other entities.
Group | Company | |||
2025 | 2024 | 2025 | 2024* | |
Profit for the period | 16,541 | 20,859 | 11,416 | 6,749 |
Income tax | 1,975 | 3,010 | 269 | 987 |
Profit before income tax | 18,516 | 23,869 | 11,685 | 7,736 |
Adjustment: | ||||
Finance costs (income) – net (Note | 495 | (107) | (99) | (177) |
24) | ||||
Dividends received (Note 22) | - | - | (9,950) | (1,300) |
Depreciation (Notes 5 and 8) | 11,215 | 10,253 | 454 | 1,599 |
Amortisation (Notes 6 and 7) | 1,238 | 840 | 142 | 220 |
Amortisation of grants (Note 15) | (153) | (81) | - | (36) |
Adjusted EBITDA | 31,311 | 34,774 | 2,232 | 8,042 |
*On 1 May 2024 the Company transferred the tissue business to its subsidiary Grigeo Tissue UAB (more information
can be found in Nasdaq notification on material events at 30 April 2024).
132
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
Group | Notes | At 31 December 2025 | At 31 December 2024 |
Financial assets at amortised cost | |||
Trade receivables | 10 | 24,442 | 27,556 |
Other amounts receivable | 10 | 1,133 | 335 |
Cash and cash equivalents | 11 | 10,271 | 14,018 |
Total financial assets at amortised cost | 35,846 | 41,909 | |
Financial liabilities at amortised cost | |||
Borrowings | 13 | 12,448 | 2,497 |
Lease liabilities | 14 | 7,143 | 5,373 |
Trade payables | 17 | 27,550 | 25,462 |
Other amounts payable | 17 | 3,815 | 2,499 |
Total financial liabilities at amortised | 50,956 | 35,831 | |
cost |
Company
Notes
At 31 December 2025
At 31 December 2024
Financial assets at amortised cost
Trade receivables
10
113
141
Amounts receivable from related parties
10
8,922
2,450
Other amounts receivable
10
14
85
Cash and cash equivalents
11
3,609
10,885
Total financial assets at amortised cost
12,658
13,561
Financial liabilities at amortised cost
Borrowings
13
-
-
Lease liabilities
14
573
575
Trade payables
17
743
242
Trade payables to related parties
17
11,915
12,822
Other amounts payable
17
1,061
940
Total financial liabilities at amortised
cost
14,292
14,579
133
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
30. Related-party transactions (continued)
Company (the year 2025)
Sales of
goods and
services
Purchases of
goods and
services
Amounts
receivable*
Amounts
payable**
Companies having significant influence
-
-
-
-
Subsidiaries
7,631
254
8,922
11,915
Other related parties
-
-
-
-
TOTAL
7,631
254
8,922
11,915
Company (the year 2024)
Sales of
goods and
services
Purchases of
goods and
services
Amounts
receivable*
Amounts
payable**
Companies having significant influence
-
-
-
-
Subsidiaries
6,167
3,297
2,450
10,022
Other related parties
-
-
-
-
TOTAL
6,167
3,297
2,450
10,022
* Amounts receivable comprise prepayments for goods, services and loans granted.
** Amounts payable also comprise borrowings from the subsidiaries.
Group | Company | ||||
2025 | 2024 | 2025 | 2024 | ||
Key management personnel compensation | 2,080 | 1,676 | 700 | 573 | |
Average annual number of management personnel | 14 | 10 | 3 | 3 |
Full name | Job position | Percentage of share capital |
and voting rights held at the Company, % | ||
Gintautas Pangonis | Chairman of the Board | Indirectly* |
Vigmantas Kažukauskas | Member of the Board | 0.93 |
Saulius Martinkevičius | Chief Procurement and Logistics Officer | 0.34 |
Tomas Jozonis | Chief Executive Officer | Indirectly* |
Robertas Krutikovas | Member of the Board | 0.08 |
134
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
135
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
136
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
137
Grigeo Group AB, company code 110012450, Vilniaus g. 10, Grigiškės, 27101 Vilnius City Municipality
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
All amounts are in EUR thousands unless otherwise stated
« Table of Contents
34. Material uncertainties
Russia’s invasion of Ukraine on 24 February 2022 has a negative impact on the Group’s financial performance. The
Group’s subsidiary Grigeo Paper Packaging UAB has investments in Ukrainian subsidiary Mena Pak AT.
Uncertainties related to the investment in Mena Pak AT
The Group’s statement of financial position includes the following consolidated assets and liabilities of Mena Pak AT:
Mena Pak AT | At 31 | At 31 | |
December 2025 December 2024 | |||
Non-current assets | 500 | 490 | |
Current assets | 1,977 | 2,222 | |
TOTAL ASSETS | 2,477 | 2,712 | |
Shareholders’ equity | 2,237 | 2,479 | |
Non-current liabilities | - | 2 | |
Current liabilities | 240 | 231 | |
TOTAL EQUITY AND LIABILITIES | 2,477 | 2,712 |
The Group’s statement of comprehensive income for the year 2025 includes the following consolidated results of
Mena Pak AT:
Mena Pak AT | 2025 |
Revenue | 4,564 |
Profit before tax | 419 |
Net profit | 346 |
EBITDA | 487 |
Mena Pak AT did not incur any damage during the war. However, the Group’s management estimates that a high
uncertainty exists in relation to Mena Pak AT’s assets of EUR 2.5 million and liabilities of EUR 0.2 million due to the
ongoing war and high uncertainty of future events.
S
STATEMENT OF COMPLIANCE WITH THE CORPORATE
GOVERNANCE CODE FOR THE YEAR 2025
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STATEMENT OF COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE
Grigeo Group AB (hereinafter the “Company”), acting in compliance with Article 12(3) of the Republic of Lithuania Law on
Securities and paragraph 24.4 of the Listing Rules of Nasdaq Vilnius AB, hereby discloses how it complies with the Corporate
Governance Code for the Companies listed on Nasdaq Vilnius as well as its specific provisions or recommendations. In case of
non-compliance with this Code or some of its provisions or recommendations, the specific provisions or recommendations that are
not complied with are indicated and the reasons for such non-compliance are specified. In addition, other explanatory information
indicated in this form is provided.
PRINCIPLES/ RECOMMENDATIONS
YES /NO /NOT
APPLICABLE
COMMENTARY
Principle 1: General meeting of shareholders, equitable treatment of shareholders, and shareholders’ rights
The corporate governance framework should ensure the equitable treatment of all shareholders. The corporate governance
framework should protect the rights of shareholders.
1.1. All shareholders should be provided with access
to the information and/or documents established in
the legal acts on equal terms. All shareholders should
be furnished with equal opportunity to participate in
the decision-making process where significant
corporate matters are discussed.
Yes
The Company fully complies with this
recommendation and provides the information and/or
documents established in the legal acts to the
shareholders in accordance with the requirements
established by the Republic of Lithuania Law on
Securities and other legal acts.
1.2. It is recommended that the company’s capital
should consist only of the shares that grant the same
rights to voting, ownership, dividend and other rights
to all of their holders.
Yes
The authorised share capital of the Company
consists of 132,820,000 ordinary registered shares,
each with a nominal value of EUR 0.29. All
shareholders of the Company are granted equal
rights.
1.3. It is recommended that investors should have
access to the information concerning the rights
attached to the shares of the new issue or those
issued earlier in advance, i.e. before they purchase
shares.
Yes
The Company fully complies with this
recommendation.
1.4. Exclusive transactions that are particularly
important to the company, such as transfer of all or
almost all assets of the company which in principle
would mean the transfer of the company, should be
subject to approval of the general meeting of
shareholders.
Yes
The Company will comply with this recommendation.
1.5. Procedures for convening and conducting a
general meeting of shareholders should provide
shareholders with equal opportunities to participate
in the general meeting of shareholders and should
not prejudice the rights and interests of shareholders.
The chosen venue, date and time of the general
meeting of shareholders should not prevent active
participation of shareholders at the general meeting.
In the notice of the general meeting of shareholders
being convened, the company should specify the last
day on which the proposed draft decisions should be
submitted at the latest.
Yes
The procedures for convening and attending general
meetings of shareholders of the Company provide
equal opportunities for shareholders to attend a
meeting and do not prejudice their rights and
interests. The notice of the general meeting of
shareholders is published in the central database of
regulated information managed by Nasdaq Vilnius
AB and on the Company’s website in accordance
with the procedure prescribed by the Law on
Securities. General meetings of shareholders of the
Company are convened at the registered office and
business address of the Company at Vilniaus str. 10
Grigiškės, Vilnius city municipality. The chosen
location of the general meeting of shareholders does
not prevent active participation of the shareholders in
the meeting. In the notice of the general meeting of
shareholders being convened, the Company
specifies that the shareholders may submit the
proposed draft resolutions at any time prior to the
general meeting.
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1.6. With a view to ensure the right of shareholders
living abroad to access the information, it is
recommended, where possible, that documents
prepared for the general meeting of shareholders in
advance should be announced publicly not only in
Lithuanian language but also in English and/or other
foreign languages in advance. It is recommended
that the minutes of the general meeting of
shareholders after the signing thereof and/or adopted
decisions should be made available publicly not only
in Lithuanian language but also in English and/or
other foreign languages. It is recommended that this
information should be placed on the website of the
company. Such documents may be published to the
extent that their public disclosure is not detrimental to
the company or the company’s commercial secrets
are not revealed.
Yes
The Company complies with this recommendation.
The Company publishes documents prepared for the
general meeting of shareholders in advance in the
Lithuanian and English languages. The Company
also publicly announces information about the
resolutions adopted by the general meeting of
shareholders in the Lithuanian and English
languages. The Company also announces the
aforementioned information on the Company’s
website.
1.7. Shareholders who are entitled to vote should be
furnished with the opportunity to vote at the general
meeting of shareholders both in person and in
absentia. Shareholders should not be prevented from
voting in writing in advance by completing the general
voting ballot.
Yes
The Company complies with this recommendation.
The notice of the general meeting of shareholders
being convened always indicates the possibility for
the shareholders to vote in writing by filling in the
attached voting ballot form.
1.8. With a view to increasing the shareholders’
opportunities to participate effectively at general
meetings of shareholders, it is recommended that
companies should apply modern technologies on a
wider scale and thus provide shareholders with the
conditions to participate and vote in general meetings
of shareholders via electronic means of
communication. In such cases the security of
transmitted information must be ensured and it must
be possible to identify the participating and voting
person.
No
The Company does not comply with this
recommendation due to legal uncertainties and
obstacles regarding the participation and voting of
shareholders in general meetings of shareholders via
electronic means of communication. The notice of the
general meeting of shareholders being convened
always states that the Company does not provide the
shareholders with the conditions to participate and
vote in the general meeting of shareholders via
electronic means of communication.
1.9. It is recommended that the notice on the draft
decisions of the general meeting of shareholders
being convened should specify new candidatures of
members of the collegial body, their proposed
remuneration and the proposed audit company if
these issues are included into the agenda of the
general meeting of shareholders. Where it is
proposed to elect a new member of the collegial
body, it is recommended that the information about
his/her educational background, work experience
and other managerial positions held (or proposed)
should be provided.
Yes
The Company complies with this recommendation.
The Company discloses information about the
candidates for the collegial body of the Company to
the shareholders immediately upon the receipt of the
proposals for the candidates for the collegial body.
The Company has only paid to the members of the
collegial body annual bonuses for their work that
were granted by the general meeting of
shareholders, and therefore, the proposed
remuneration was not indicated in the information
about the candidates for the collegial body. The
Company also provides information on the proposed
audit firm and the proposed remuneration for the
services when this issue is included in the agenda of
the general meeting of shareholders.
1.10. Members of the company’s collegial
management body, heads of the administration or
other competent persons related to the company who
can provide information related to the agenda of the
general meeting of shareholders should take part in
the general meeting of shareholders. Proposed
candidates to member of the collegial body should
also participate in the general meeting of
shareholders in case the election of new members is
included into the agenda of the general meeting of
shareholders.
Yes
The Company complies with this recommendation.
Relevant competent persons who can provide
information relating to the agenda of the general
meeting of shareholders always attend the general
meeting of shareholders. Proposed candidates for
the members of the collegial body attend the general
meetings of shareholders as far as possible.
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Principle 2: Supervisory board
2.1. Functions and liability of the supervisory board
The supervisory board of the company should ensure representation of the interests of the company and its shareholders,
accountability of this body to the shareholders and objective monitoring of the company’s operations and its management bodies
as well as constantly provide recommendations to the management bodies of the company.
The supervisory board should ensure the integrity and transparency of the company’s financial accounting and control system.
2.1.1. Members of the supervisory board should act in
good faith, with care and responsibility for the benefit and in
the interests of the company and its shareholders and
represent their interests, having regard to the interests of
employees and public welfare.
Yes
According to the knowledge of the Company, all
members of the supervisory board act in good faith
for the benefit of the Company and its
shareholders.
2.1.2. Where decisions of the supervisory board may have
a different effect on the interests of the company’s
shareholders, the supervisory board should treat all
shareholders impartially and fairly. It should ensure that
shareholders are properly informed about the company’s
strategy, risk management and control, and resolution of
conflicts of interest.
Yes
The supervisory board treats all shareholders fairly
and impartially.
2.1.3. The supervisory board should be impartial in
passing decisions that are significant for the company’s
operations and strategy. Members of the supervisory board
should act and pass decisions without an external influence
from the persons who elected them.
Yes
The supervisory board is independent in passing
decisions that are significant for the Company’s
operations and strategy.
2.1.4. Members of the supervisory board should clearly
voice their objections in case they believe that a decision of
the supervisory board is against the interests of the
company. Independent1 members of the supervisory board
should: a) maintain independence of their analysis and
decision-making; b) not seek or accept any unjustified
privileges that might compromise their independence.
Yes
The supervisory board members are impartial in
passing decisions and clearly voice their will
regarding the decisions passed.
2.1.5. The supervisory board should oversee that the
company’s tax planning strategies are designed and
implemented in accordance with the legal acts in order to
avoid faulty practice that is not related to the long-term
interests of the company and its shareholders, which may
give rise to reputational, legal or other risks.
Yes
The supervisory board oversees that the
Company’s tax planning strategies are designed
and implemented in accordance with the legal acts.
2.1.6. The company should ensure that the supervisory
board is provided with sufficient resources (including
financial ones) to discharge their duties, including the right
to obtain all the necessary information or to seek
independent professional advice from external legal,
accounting or other experts on matters pertaining to the
competence of the supervisory board and its committees.
Yes
Meetings of the supervisory board are provided
with premises and all necessary information and
the supervisory board has the right to seek
independent professional advice from external
legal, accounting, or other experts on matters
falling within their competence.
1
For the purposes of this Code, the criteria of independence of members of the supervisory board are interpreted as the criteria of
unrelated parties defined in Article 31(7) and (8) of the Law on Companies of the Republic of Lithuania.
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2.2. Formation of the supervisory board
The procedure of the formation of the supervisory board should ensure proper resolution of conflicts of interest and effective and
fair corporate governance.
2.2.1. The members of the supervisory board elected by
the general meeting of shareholders should collectively
ensure the diversity of qualifications, professional
experience and competences and seek for gender equality.
With a view to maintain a proper balance between the
qualifications of the members of the supervisory board, it
should be ensured that members of the supervisory board,
as a whole, should have diverse knowledge, opinions and
experience to duly perform their tasks.
Yes
The members of the supervisory board elected by
the general meeting of shareholders of the
Company ensure the diversity of qualifications,
professional experience and competences, and the
supervisory board has members of both genders.
2.2.2. Members of the supervisory board should be
appointed for a specific term, subject to individual re-election
for a new term in office in order to ensure necessary
development of professional experience.
Yes
According to the Articles of Association of the
Company, the supervisory board is elected by the
general meeting of shareholders for a period of 4
years, i.e. the maximum period permitted by the
legislation of the Republic of Lithuania.
2.2.3. Chair of the supervisory board should be a person
whose current or past positions constituted no obstacles to
carry out impartial activities. A former manager or
management board member of the company should not be
immediately appointed as chair of the supervisory board
either. When a company decides to depart from these
recommendations, it should furnish information on the
measures it has taken to ensure the impartiality of
supervision.
Yes
Chair of the supervisory board is a person whose
current or past positions constitute no obstacles to
carry out impartial activities. Former managers or
management board members of the Company
were not appointed as chairs of the supervisory
board.
2.2.4. Each member should devote sufficient time and
attention to perform his duties as a member of the
supervisory board. Each member of the supervisory board
should undertake to limit his other professional obligations
(particularly the managing positions in other companies) so
that they would not interfere with the proper performance of
the duties of a member of the supervisory board. Should a
member of the supervisory board attend less than a half of
the meetings of the supervisory board throughout the
financial year of the company, the shareholders of the
company should be notified thereof.
Yes
Each member devotes sufficient time and attention
to perform his/her duties as a member of the
supervisory board and his/her other professional
obligations do not interfere with the proper
performance of the duties of a member of the
supervisory board.
2.2.5. When it is proposed to appoint a member of the
supervisory board, it should be announced which members
of the supervisory board are deemed to be independent. The
supervisory board may decide that, despite the fact that a
particular member meets all the criteria of independence,
he/she cannot be considered independent due to special
personal or company-related circumstances.
No
The Company submits to the shareholders
received proposals concerning the candidates for
the members of the supervisory board.
2.2.6. The amount of remuneration to members of the
supervisory board for their activity and participation in
meetings of the supervisory board should be approved by
the general meeting of shareholders.
Yes
The amount of remuneration to members of the
supervisory board for their activity and participation
in meetings of the supervisory board is approved by
the general meeting of shareholders. Guidelines for
the determination of remuneration of the members
of the supervisory board of the Company and the
procedure for payment of remuneration is
established by the Company’s remuneration policy
approved by the Resolution of the Ordinary General
Meeting of Shareholders on 28 April 2025.
2.2.7. Every year the supervisory board should carry out
an assessment of its activities. It should include evaluation
of the structure of the supervisory board, its work
organization and ability to act as a group, evaluation of the
competence and work efficiency of each member of the
supervisory board, and evaluation whether the supervisory
board has achieved its objectives. The supervisory board
should, at least once a year, make public respective
information about its internal structure and working
procedures.
No
The supervisory board has not carried out an
assessment of its activities.
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Principle 3: Management board
3.1. Functions and liability of the management board
The management board should ensure the implementation of the company’s strategy and good corporate governance with due
regard to the interests of its shareholders, employees and other interest groups.
3.1.1. The management board should ensure the
implementation of the company’s strategy approved by the
supervisory board if the latter has been formed at the
company. In such cases where the supervisory board is not
formed, the management board is also responsible for the
approval of the company’s strategy.
No
The supervisory board has not approved the
Company’s strategy.
3.1.2. As a collegial management body of the company,
the management board performs the functions assigned to
it by the Law and in the Articles of Association of the
company, and in such cases where the supervisory board is
not formed in the company, it performs inter alia the
supervisory functions established in the Law. By performing
the functions assigned to it, the management board should
take into account the needs of the company’s shareholders,
employees and other interest groups by respectively striving
to achieve sustainable business development.
Yes
The management board, as a collegial
management body of the Company, performs the
functions assigned to it by the Law on Companies
and in the Articles of Association of the Company.
By performing the functions assigned to it, the
management board takes into account the needs of
the Company’s shareholders, employees and other
interest groups and, respectively, strives to achieve
sustainable business development.
3.1.3. The management board should ensure compliance
with the laws and the internal policy of the company
applicable to the company or a group of companies to which
this company belongs. It should also establish the respective
risk management and control measures aimed at ensuring
regular and direct liability of managers.
Yes
The management board, within the limits of its
competence and functions assigned to it, aims to
ensure the compliance with the provisions of the
laws and the internal policy of the Company.
3.1.4. Moreover, the management board should ensure
that the measures included into the OECD Good Practice
Guidance
2
on Internal Controls, Ethics and Compliance are
applied at the company in order to ensure adherence to the
applicable laws, rules and standards.
Yes
The Company applies a variety of documents
ensuring the highest level of internal control, ethics
and measures of compliance management.
3.1.5. When appointing the Head of the company, the
management board should take into account the appropriate
balance between the candidate’s qualifications, experience
and competence.
Yes
When appointing the Head of the Company, the
management board considers the appropriate
balance between the candidate’s qualifications,
experience and competence.
3.2. Formation of the management board
3.2.1. The members of the management board elected by
the supervisory board or, if the supervisory board is not
formed, by the general meeting of shareholders should
collectively ensure the required diversity of qualifications,
professional experience and competences and seek for
gender equality. With a view to maintain a proper balance in
terms of the current qualifications possessed by the
members of the management board, it should be ensured
that the members of the management board would have, as
a whole, diverse knowledge, opinions and experience to duly
perform their tasks.
Yes
The management board members elected by the
supervisory board of the Company ensure the
diversity of qualifications, professional experience
and competences. During the election of the
members of the management board, the Company
aims to ensure gender equality and the
management board has had members of both
genders for a number of years.
2
Link to the OECD Good Practice Guidance on Internal Controls, Ethics and Compliance: https://www.oecd.org/daf/anti-
bribery/44884389.pdf
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3.2.2. Names and surnames of the candidates to become
members of the management board, information on their
educational background, qualifications, professional
experience, current positions, other important professional
obligations and potential conflicts of interest should be
disclosed without violating the requirements of the legal acts
regulating the handling of personal data at the meeting of
the supervisory board in which the management board or
individual members of the management board are elected.
In the event that the supervisory board is not formed, the
information specified in this paragraph should be submitted
to the general meeting of shareholders. The management
board should, on yearly basis, collect data provided in this
paragraph on its members and disclose it in the company’s
annual report.
Yes
Names and surnames of the candidates to become
members of the management board, information on
their educational background, qualifications,
professional experience, current positions, other
important professional obligations and potential
conflicts of interest are disclosed at the meeting of
the supervisory board in which the management
board or individual members of the management
board are elected. The data on the members of the
management board referred to in this paragraph is
also disclosed in the Company’s annual report.
3.2.3. All new members of the management board should
be familiarized with their duties and the structure and
operations of the company.
Yes
Members of the management board are
familiarised with their duties and the structure and
operations of the Company, and the main corporate
documents of the Company are shared.
3.2.4. Members of the management board should be
appointed for a specific term, subject to individual re-election
for a new term in office in order to ensure necessary
development of professional experience and sufficiently
frequent reconfirmation of their status.
Yes
Members of the management board are appointed
for a term of four years, subject to re-election for a
new term in office. The number of terms in office of
a member of the management board is unlimited.
3.2.5. Chair of the management board should be a person
whose current or past positions constitute no obstacles to
carry out impartial activity. Where the supervisory board is
not formed, the former Head of the company should not be
immediately appointed as chair of the management board.
When a company decides to depart from these
recommendations, it should furnish information on the
measures it has taken to ensure the impartiality of
supervision.
Yes
A person whose current or past positions constitute
no obstacles to impartially carry out the functions of
the chair of the management board is appointed as
the chair of the management board.
3.2.6. Each member should devote sufficient time and
attention to perform his duties as a member of the
management board. Should a member of the management
board attend less than a half of the meetings of the
management board throughout the financial year of the
company, the supervisory board of the company or, if the
supervisory board is not formed at the company, the general
meeting of shareholders should be notified thereof.
Yes
Each member devotes sufficient time and attention
to perform their duties as a member of the
management board.
3.2.7. In the event that the management board is elected
in the cases established by the Law where the supervisory
board is not formed at the company, and some of its
members will be independent
3
, it should be announced
which members of the management board are deemed as
independent. The management board may decide that,
despite the fact that a particular member meets all the
criteria of independence established by the Law, he/she
cannot be considered independent due to special personal
or company-related circumstances.
Not
applicable
The supervisory board has been formed at the
Company.
3
For the purposes of this Code, the criteria of independence of the members of the board are interpreted as the criteria of unrelated
persons defined in Article 33(7) of the Law on Companies of the Republic of Lithuania.
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3.2.8. The general meeting of shareholders of the
company should approve the amount of remuneration to the
members of the management board for their activity and
participation in the meetings of the management board.
Yes
The general meeting of shareholders of the
Company approves the amount of remuneration to
the members of the management board for their
activity and participation in the meetings of the
management board. Guidelines for the
determination of remuneration of the members of
the management board of the Company and the
procedure for payment of remuneration is
established by the Company’s remuneration policy
approved by the Resolution of the Ordinary General
Meeting of Shareholders of 28 April 2025.
3.2.9. The members of the management board should act
in good faith, with care and responsibility for the benefit and
the interests of the company and its shareholders with due
regard to other stakeholders. When adopting decisions, they
should not act in their personal interest; they should be
subject to no-compete agreements and they should not use
the business information or opportunities related to the
company’s operations in violation of the company’s
interests.
Yes
According to the information available to the
Company, all members of the management board
act in good faith, with care and responsibility for the
benefit and the interests of the Company and its
shareholders and put an effort to maintain their
independence in decision-making. In accordance
with the provisions of the Republic of Lithuania Law
on Companies, all members of the management
board must protect the Company’s commercial
(industrial) secrets and confidential information that
they got acquainted with when they were members
of the management board.
3.2.10. Every year the management board should carry out
an assessment of its activities. It should include evaluation
of the structure of the management board, its work
organisation and ability to act as a group, evaluation of the
competence and work efficiency of each member of the
management board, and evaluation whether the
management board has achieved its objectives. The
management board should, at least once a year, make
public the respective information about its internal structure
and working procedures in observance of the legal acts
regulating the processing of personal data.
No
The management board has not carried out an
assessment of its activities.
Principle 4: Rules of procedure of the supervisory board and the management board of the company
The rules of procedure of the supervisory board, if it is formed at the company, and of the management board should ensure
efficient operation and decision-making of these bodies and promote active cooperation between the company’s management
bodies.
4.1. The management board and the supervisory board, if
the latter is formed at the company, should act in close
cooperation in order to attain benefit for the company and its
shareholders. Good corporate governance requires an open
discussion between the management board and the
supervisory board. The management board should regularly
and, where necessary, immediately inform the supervisory
board about any matters significant for the company that are
related to planning, business development, risk
management and control, and compliance with the
obligations at the company. The management board should
inform the supervisory board about any derogations in its
business development from the previously formulated plans
and objectives by specifying the reasons for this.
Yes
The management board and the supervisory board
act in close cooperation.
4.2. It is recommended that meetings of the company’s
collegial bodies should be held at the respective intervals,
according to the pre-approved schedule. Each company is
free to decide how often meetings of the collegial bodies
should be convened but it is recommended that these
meetings should be convened at such intervals that
uninterruptable resolution of essential corporate governance
issues would be ensured. Meetings of the company’s
collegial bodies should be convened at least once per
quarter.
Yes
Meetings of the Company’s collegial bodies are
convened at such intervals that uninterruptable
resolution of essential Company’s management
and supervision issues is ensured.
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4.3. Members of a collegial body should be notified of the
meeting being convened in advance so that they would have
sufficient time for proper preparation for the issues to be
considered at the meeting and a fruitful discussion could be
held and appropriate decisions could be adopted. Along with
the notice of the meeting being convened all materials
relevant to the issues on the agenda of the meeting should
be submitted to the members of the collegial body. The
agenda of the meeting should not be changed or
supplemented during the meeting, unless all members of the
collegial body present at the meeting agree with such
change or supplement to the agenda, or certain issues that
are important to the company require immediate resolution.
Yes
Members of a collegial body are notified of the
meeting being convened and all materials relevant
to the issues on the agenda of the meeting are
submitted to them in advance, so that members of
a collegial body would have sufficient time for
proper preparation for the issues to be considered
at the meeting and a fruitful discussion could be
held and appropriate decisions could be adopted.
4.4. In order to coordinate the activities of the company’s
collegial bodies and ensure effective decision-making
process, the chairs of the company’s collegial supervision
and management bodies should mutually agree on the dates
and agendas of the meetings and closely cooperate in
resolving other matters related to corporate governance.
Meetings of the company’s supervisory board should be
open to members of the management board, particularly in
such cases where issues concerning the removal of the
management board members, their responsibility or
remuneration are discussed.
Yes
In order to coordinate the activities of the
Company’s collegial bodies and ensure effective
decision-making process, the chairs of the
Company’s collegial supervision and management
bodies mutually agree on the dates and agendas of
the meetings and cooperate closely in resolving
other matters related to the Company’s
management.
Principle 5: Nomination, remuneration and audit committees
5.1. Purpose and formation of committees
The committees formed at the company should increase the work efficiency of the supervisory board or, where the supervisory
board is not formed, of the management board which performs the supervisory functions by ensuring that decisions are based
on due consideration and help organise its work in such a way that the decisions it takes would be free of material conflicts of
interest.
Committees should exercise independent judgment and integrity when performing their functions and provide the collegial body
with recommendations concerning the decisions of the collegial body. However, the final decision should be adopted by the
collegial body.
5.1.1. Taking due account of the company-related
circumstances and the chosen corporate governance
structure, the supervisory board of the company or, in cases
where the supervisory board is not formed, the management
board which performs the supervisory functions, establishes
committees. The collegial body is recommended to form the
nomination, remuneration and audit committees
4
.
Yes
The Audit Committee has been formed at the
Company.
5.1.2. Companies may decide to set up less than three
committees. In such case companies should explain in detail
why they have chosen the alternative approach, and how the
chosen approach corresponds with the objectives set for the
three different committees.
Yes
The nomination and remuneration committees
have not been formed at the Company. Candidates
proposed for the members of a collegial body in
accordance with the procedure established by the
legal acts are submitted for consideration to the
electing general meeting of shareholders or
collegial body.
4
The legal acts may provide for the obligation to form a respective committee. For example, the Law on the Audit of Financial
Statements of the Republic of Lithuania provides that public-interest entities (including but not limited to public limited liability
companies whose securities are traded on a regulated market of the Republic of Lithuania and/or of any other Member State) are
under the obligation to set up an audit committee (the legal acts provide for the exemptions where the functions of the audit
committee may be carried out by the collegial body performing the supervisory functions).
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5.1.3. In the cases established by the legal acts, the
functions assigned to the internal committees of the
companies may be performed by the collegial body itself. In
such case the provisions of this Code pertaining to the
committees (particularly those related to their role, operation
and transparency) should apply, where relevant, to the
collegial body as a whole.
Yes
Provisions of the Code pertaining to the
committees (particularly those related to their
role, operation and transparency) apply to the
collegial body performing the functions of the
committees.
5.1.4. Committees established by the collegial body
should normally be composed of at least three members.
Subject to the requirements of the legal acts, committees
could be comprised only of two members as well. Members
of each committee should be selected on the basis of their
competences by giving priority to independent members of
the collegial body. The chair of the management board
should not serve as the chair of committees.
Yes
The Company has formed the Audit Committee
consisting of three members of the supervisory
board of the Company. The chair of the
management board is not a member of the Audit
Committee.
5.1.5. The authority of each committee formed should be
determined by the collegial body itself. Committees should
perform their duties according to the authority delegated to
them and regularly inform the collegial body about their
activities and performance on a regular basis. The authority
of each committee defining its role and specifying its rights
and duties should be made public at least once a year (as
part of the information disclosed by the company on its
governance structure and practice on an annual basis). In
compliance with the legal acts regulating the processing of
personal data, companies should also include in their annual
reports the statements of the existing committees on their
composition, the number of meetings and attendance over
the year as well as the main directions of their activities and
performance.
Yes
The supervisory board of the Company has
established the authority of the Audit Committee
in the internal rules of the Audit Committee
approved by the supervisory board itself.
5.1.6. With a view to ensure the independence and
impartiality of the committees, the members of the collegial
body who are not members of the committees should
normally have a right to participate in the meetings of the
committee only if invited by the committee. A committee may
invite or request that certain employees of the company or
experts would participate in the meeting. Chair of each
committee should have the possibility to maintain direct
communication with the shareholders. Cases where such
practice is to be applied should be specified in the rules
regulating the activities of the committee.
Yes
In accordance with the internal rules of the Audit
Committee, it has the right to invite the chair of
the supervisory board and certain employees of
the Company, as well as external auditors, to its
meetings.
5.2. Nomination committee
5.2.1. The key functions of the nomination committee
should be the following:
1) to select candidates to fill vacancies in the membership of
supervisory and management bodies and the administration
and recommend the collegial body to approve them. The
nomination committee should evaluate the balance of skills,
knowledge and experience in the management body,
prepare a description of the functions and capabilities
required to assume a particular position and assess the time
commitment expected;
2) to assess, on a regular basis, the structure, size and
composition of the supervisory and management bodies as
well as the skills, knowledge and activity of its members, and
provide the collegial body with recommendations on how the
required changes should be sought;
3) to devote the attention necessary to ensure succession
planning.
No
To date, the nomination committee has not been
formed at the Company.
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5.2.2. When dealing with issues related to members of the
collegial body who have employment relationships with the
company and the heads of the administration, the Head of
the company should be consulted by granting him/her the
right to submit proposals to the nomination committee.
No
To date, the nomination committee has not been
formed at the Company.
5.3. Remuneration committee
The main functions of the remuneration committee should be as
follows:
1) to submit to the collegial body proposals on the remuneration
policy applied to members of the supervisory and management
bodies and the heads of the administration for approval. Such policy
should include all forms of remuneration, including the fixed-rate
remuneration, performance-based remuneration, financial incentive
schemes, pension arrangements and termination payments as well
as conditions which would allow the company to recover the
amounts or suspend the payments by specifying the circumstances
under which it would be expedient to do so;
2) to submit to the collegial body proposals regarding individual
remuneration for members of the collegial bodies and the heads of
the administration in order to ensure that they would be consistent
with the company’s remuneration policy and the evaluation of the
performance of the persons concerned;
3) to review, on a regular basis, the remuneration policy and its
implementation.
No
To date, the remuneration committee has
not been formed at the Company.
5.4. Audit committee
5.4.1. The key functions of the audit committee are defined in the
legal acts regulating the activities of the audit committee
5
.
5.4.2. All members of the committee should be provided with detailed
information on specific issues of the company’s accounting system,
finances and operations. The heads of the company’s administration
should inform the audit committee about the methods of accounting for
significant and unusual transactions where the accounting may be
subject to different approaches.
5.4.3. The audit committee should decide whether the participation
of the chair of the management board, the Head of the company, the
chief finance officer (or senior employees responsible for finance and
accounting), the internal and external auditors in its meetings is required
(and, if required, when). The committee should be entitled, when
needed, to meet the relevant persons without members of the
management bodies present.
5.4.4. The audit committee should be informed about the internal
auditor’s work program and should be furnished with internal audit
reports or periodic summaries. The audit committee should also be
informed about the work program of external auditors and should
receive from the audit firm a report describing all relationships between
the independent audit firm and the company and its group.
5.4.5. The audit committee should examine whether the company
complies with the applicable provisions regulating the possibility of
lodging a complaint or reporting anonymously his/her suspicions of
potential violations committed at the company and should also ensure
that there is a procedure in place for proportionate and independent
investigation of such issues and appropriate follow-up actions.
5.4.6. The audit committee should submit to the supervisory board
or, where the supervisory board is not formed, to the management
board its activity report at least once in every six months, at the time
that annual and half-yearly reports are approved.
Yes
The Company has the Audit Committee the
main functions of which comply with these
recommendations.
5
Issues related to the activities of audit committees are regulated by Regulation No. 537/2014 of the European Parliament and the
Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities, the Law on the Audit of
Financial Statements of the Republic of Lithuania, and the Rules Regulating the Activities of Audit Committees approved by the
Bank of Lithuania.
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Principle 6: Prevention and disclosure of conflicts of interest
The corporate governance framework should encourage members of the company’s supervisory and management bodies to
avoid conflicts of interest and ensure a transparent and effective mechanism of disclosure of conflicts of interest related to
members of the supervisory and management bodies.
The corporate governance framework should recognize the rights of stakeholders entrenched in the laws and encourage active
cooperation between companies and stakeholders in creating the company value, jobs and financial sustainability. In the
context of this principle the concept “stakeholders” includes investors, employees, creditors, suppliers, clients, local community
and other persons having certain interests in the company concerned.
Any member of the company’s supervisory and management body
should avoid a situation where his/her personal interests are or may
be in conflict with the company’s interests. In case such a situation
did occur, a member of the company’s supervisory or management
body should, within a reasonable period of time, notify other
members of the same body or the body of the company which
elected him/her or the company’s shareholders of such situation of
a conflict of interest, indicate the nature of interests and, where
possible, their value.
Yes
The Company fully complies with these
recommendations.
Principle 7: Remuneration policy of the company
The remuneration policy and the procedure for review and disclosure of such policy established at the company should prevent
potential conflicts of interest and abuse in determining remuneration of members of the collegial bodies and heads of the
administration, in addition it should ensure the publicity and transparency of the company’s remuneration policy and its long-
term strategy.
7.1. The company should approve and post the remuneration policy
on the website of the company; such policy should be reviewed on
a regular basis and be consistent with the company’s long-term
strategy.
Yes
The Company has approved its
remuneration policy and published it on the
Company’s website. The remuneration
policy is reviewed on a regular basis.
7.2. The remuneration policy should include all forms of
remuneration, including the fixed-rate remuneration, performance-
based remuneration, financial incentive schemes, pension
arrangements and termination payments as well as the conditions
specifying the cases where the company can recover the disbursed
amounts or suspend the payments.
Yes
The remuneration policy of the Company
includes all forms of remuneration.
7.3. With a view to avoid potential conflicts of interest, the
remuneration policy should provide that members of the collegial
bodies which perform the supervisory functions should not receive
remuneration based on the company’s performance.
Yes
The remuneration policy of the Company
provides that the remuneration of the
members of its supervisory board is not
based on the Company’s performance.
7.4. The remuneration policy should provide sufficient information
on the policy regarding termination payments. Termination
payments should not exceed a fixed amount or a fixed number of
annual wages and in general should not be higher than the non-
variable component of remuneration for two years or the equivalent
thereof. Termination payments should not be paid if the contract is
terminated due to inadequate performance.
Yes
The Company fully complies with this
recommendation.
7.5. In the event that the financial incentive scheme is applied at the
company, the remuneration policy should contain sufficient
information about the retention of shares after the award thereof.
Where remuneration is based on the award of shares, shares
should not be vested at least for three years after the award thereof.
After vesting, members of the collegial bodies and heads of the
administration should retain a certain number of shares until the end
of their term in office, subject to the need to compensate for any
costs related to the acquisition of shares.
Yes
The Company applies a share award
scheme. The remuneration policy states
that according to the rules for granting
shares, the granting of shares is postponed
for a period of 3 years - the Company's
shares are granted (the share option can be
exercised) no earlier than 3 years after the
conclusion of the option agreement.
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7.6. The company should publish information about the
implementation of the remuneration policy on its website, with a key
focus on the remuneration policy in respect of the collegial bodies
and managers in the next and, where relevant, subsequent financial
years. It should also contain a review of how the remuneration
policy was implemented during the previous financial year. The
information of such nature should not include any details having a
commercial value. Particular attention should be paid on the major
changes in the company’s remuneration policy, compared to the
previous financial year.
Yes
The Company complies with this
recommendation.
7.7. It is recommended that the remuneration policy or any major
change of the policy should be included on the agenda of the
general meeting of shareholders. The schemes under which
members and employees of a collegial body receive remuneration
in shares or share options should be approved by the general
meeting of shareholders.
Yes
The Company complies with this
recommendation.
Principle 8: Role of stakeholders in corporate governance
The corporate governance framework should recognize the rights of stakeholders entrenched in the laws or mutual agreements
and encourage active cooperation between companies and stakeholders in creating the company value, jobs and financial
sustainability. In the context of this principle the concept “stakeholders” includes investors, employees, creditors, suppliers,
clients, local community and other persons having certain interests in the company concerned.
8.1. The corporate governance framework should ensure that the
rights and lawful interests of stakeholders are protected.
Yes
The Company complies with all statutory
requirements ensuring the rights of
stakeholders.
8.2. The corporate governance framework should create conditions
for stakeholders to participate in corporate governance in the
manner prescribed by law. Examples of participation by
stakeholders in corporate governance include the participation of
employees or their representatives in the adoption of decisions that
are important for the company, consultations with employees or
their representatives on corporate governance and other important
matters, participation of employees in the company’s authorized
capital, involvement of creditors in corporate governance in the
cases of the company’s insolvency, etc.
Yes
The Company complies with all statutory
requirements ensuring the rights of
stakeholders.
8.3. Where stakeholders participate in the corporate governance
process, they should have access to relevant information.
Yes
The Company complies with all statutory
requirements ensuring the rights of
stakeholders.
8.4. Stakeholders should be provided with the possibility of
reporting confidentially any illegal or unethical practices to the
collegial body performing the supervisory function.
No
Pursuant to the legislation of the Republic of
Lithuania, the Company has established an
internal whistleblowing channel and
individuals have also been informed about
this on the Company’s website.
Principle 9: Disclosure of information
The corporate governance framework should ensure the timely and accurate disclosure of all material corporate issues,
including the financial situation, operations and governance of the company.
9.1. In accordance with the company’s procedure on confidential
information and commercial secrets and the legal acts regulating
the processing of personal data, the information publicly disclosed
by the company should include but not be limited to the following:
9.1.1. operating and financial results of the company;
Yes
The Company complies with this
recommendation.
9.1.2. objectives and non-financial information of the company;
Yes
The Company complies with this
recommendation.
9.1.3. persons holding a stake in the company or controlling it
directly and/or indirectly and/or together with related persons as well
as the structure of the group of companies and their relationships
by specifying the final beneficiary;
Yes
The Company complies with this
recommendation.
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9.1.4. members of the company’s supervisory and management
bodies who are deemed independent, the Head of the company,
the shares or votes held by them at the company, participation in
corporate governance of other companies, their competence and
remuneration;
Yes
The Company complies with this
recommendation.
9.1.5. reports of the existing committees on their composition,
number of meetings and attendance of members during the last
year as well as the main directions and results of their activities;
No
To date, the Company has not published
this information.
9.1.6. potential key risk factors, the company’s risk management
and supervision policy;
Yes
The Company complies with this
recommendation.
9.1.7. the company’s transactions with related parties;
Yes
The Company complies with this
recommendation by disclosing information
about transactions with related parties that
are not a part of the Company’s normal
economic activities and/or exert a significant
influence on the Company.
9.1.8. main issues related to employees and other stakeholders
(for instance, human resource policy, participation of employees in
corporate governance, award of the company’s shares or share
options as incentives, relationships with creditors, suppliers, local
community, etc.);
Yes
The Company complies with this
recommendation.
9.1.9. structure and strategy of corporate governance;
No
The Company has not published its
structure and strategy of corporate
governance.
9.1.10. initiatives and measures of social responsibility policy and
anti-corruption fight, significant current or planned investment
projects.
This list is deemed minimum and companies are encouraged not to
restrict themselves to the disclosure of information included into this
list. This principle of the Code does not exempt companies from
their obligation to disclose information as provided for in the
applicable legal acts.
Yes
The Company complies with this
recommendation.
9.2. When disclosing the information specified in paragraph 9.1.1 of
recommendation 9.1, it is recommended that the company which is
a parent company in respect of other companies should disclose
information about the consolidated results of the whole group of
companies.
Yes
The Company complies with this
recommendation.
9.3. When disclosing the information specified in paragraph 9.1.4 of
recommendation 9.1, it is recommended that the information on the
professional experience and qualifications of members of the
company’s supervisory and management bodies and the Head of
the company as well as potential conflicts of interest which could
affect their decisions should be provided. It is further recommended
that the remuneration or other income of members of the company’s
supervisory and management bodies and the Head of the company
should be disclosed, as provided for in greater detail in Principle 7.
Yes
The Company complies with this
recommendation.
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9.4. Information should be disclosed in such manner that no
shareholders or investors are discriminated in terms of the method
of receipt and scope of information. Information should be disclosed
to all parties concerned at the same time.
Yes
The Company discloses the information in
the Lithuanian and English languages
simultaneously through the information
disclosure system used by Nasdaq Vilnius
AB Stock Exchange. The Company usually
publishes information before or after the
trading session of Nasdaq Vilnius AB Stock
Exchange and presents it simultaneously to
all markets where the Company’s securities
are traded. The Company does not disclose
any information that may affect the price of
its issued securities in comments, interviews
or otherwise until such information is made
public through the information disclosure
system of the Stock Exchange. This
information is also disclosed on the
Company’s website www.grigeo.lt.
Principle 10: Selection of the company’s audit firm
The company’s audit firm selection mechanism should ensure the independence of the report and opinion of the audit firm.
10.1. With a view to obtain an objective opinion on the
company’s financial condition and financial results, the company’s
annual financial statements and the financial information provided
in its annual report should be audited by an independent audit firm.
Yes
The Company complies with this
recommendation.
10.2. It is recommended that the audit firm would be proposed to
the general meeting of shareholders by the supervisory board or, if
the supervisory board is not formed at the company, by the
management board of the company.
Yes
The Company complies with this
recommendation.
10.3. In the event that the audit firm has received remuneration
from the company for the non-audit services provided, the company
should disclose this publicly. This information should also be
available to the supervisory board or, if the supervisory board is not
formed at the company, by the management board of the company
when considering which audit firm should be proposed to the
general meeting of shareholders.
Yes
When considering which audit firm should
be proposed to the general meeting of
shareholders, the Company’s supervisory
board had information on whether the audit
firm has received remuneration from the
Company for the non-audit services
provided.
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