1.3.4. Legal and regulatory framework

The Elia group complies with all applicable legislation. Its business activities are subject to numerous regional, national and European laws and regulations. Elia Group SA/NV is subject to the rules of good governance applicable to listed companies. Additional relevant information can be found in the Corporate Governance Statement in our 2021 Financial Report.

The Elia group actively monitors the emergence of European, national or local regulations

A European Green Deal

In December 2019, the European Commission published its European Green Deal, an ambitious package of measures that aims to make the EU the first climate-neutral continent in the world and is based on the Commission’s 2018 publication A Clean Planet for all. This strategy is in line with the 2015 Paris Agreement, which aims to keep the average global temperature increase well below 2°C (preferably 1.5°C). All EU member states have also agreed to reaching the goal of climate neutrality.

2021 was a particularly important year in terms of making the Green Deal goals a reality, since in June 2021, the Commission presented its so-called “Fit for 55” package. This aims to reduce greenhouse gas emissions by at least 55% (compared with 1990 levels) by 2030. The package covers wide-ranging policy areas – from renewables to energy efficiency, as well as alternative fuels (for e-mobility), land use, energy taxation, effort sharing and emissions trading. The Elia group in particular monitors the Energy Efficiency Directive, the Renewables Directive and the Alternative Fuels Infrastructure Regulation. An Elia group position paper on the “Fit-For-55” package is publicly available5 .

In addition, in December 2021 the Energy Performance of Buildings Directive was published, as well as a revision of the gas package.

GRI 419-1

During the reporting year, the Elia group companies did not receive any significant fines or non-monetary sanctions for failure to comply with social or economic legislation and regulations.

ELIA IN BELGIUM

One of the core principles of corporate governance laid down by the legislation governing the electricity industry in Belgium is the strict separation between the composition of and responsibilities incumbent upon Elia Transmission Belgium SA/NV and Elia Asset SA/NV’s Board of Directors and Executive Management Board.

Additional information about the legislation and regulations which are relevant to our business activities can be found on our website (link). In 2021, as required by law, Elia Transmission Belgium SA/NV published its most recent biennial study on Belgium’s adequacy and flexibility needs for the coming decade (2022-2032).

50HERTZ IN GERMANY

In the reporting year, the following laws were of particular note. These have an influence on the integration of sustainability into business activities.

• The amendment to the Climate Protection Act increases the greenhouse gas reduction target from 55% to at least 65% by 2030 and 88% by 2040. The target year for reaching climate neutrality was brought forward from 2050 to 2045. Concrete measures to achieve the target will be ensured in future by individual laws and ordinances. These will also have a significant influence on 50Hertz’s business activities.

• The Supply Chain Due Diligence Act describes requirements regarding the due diligence obligations of companies. The aim is to improve the protection of human rights in global supply chains. The supply chain extends from a company’s own business operations to its direct and indirect suppliers. Important components of the law include businesses being required to carry out a risk analysis, implement risk management and introduce a complaints mechanism and transparent reporting.

From 2024, the law will apply to companies with more than 1,000 employees.

• A jacket ordinance was passed in 2021 that recasts or amends the Federal Soil Protection and Contaminated Sites Ordinance, the Landfill Ordinance and the Gewerbeabfall Ordinance. The ordinance will apply from 2023.