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Sustainability topics

Material sustainability topics within LTG Group are identified through a double materiality assessment, which evaluates both the Group’s impacts on internal and external stakeholders and the environment (impact materiality), as well as the effects of sustainability matters on the Group’s operations and performance (financial materiality). The assessment results are reviewed annually. In the event of significant economic, political, organisational, or climate-related developments, a comprehensive reassessment is conducted, involving stakeholders where feasible.

Climate change

Climate change mitigation

LTG Group recognises its responsibility for its climate impact and is actively committed to reducing greenhouse gas (GHG) emissions. Due to the use of fossil fuels and other carbon-intensive energy sources, the Group’s operations generate a significant GHG footprint, resulting in material impacts across the value chain.

The Group’s strategy and approved Sustainability Policy set out clear targets and a commitment to achieving climate neutrality. In the long term, GHG emissions management is guided by a structured decarbonisation plan, which includes initiatives such as railway electrification, the acquisition of electric trains and locomotives, and infrastructure modernisation. In addition to reducing climate impacts and strengthening LTG’s position as a leader in sustainable transport, the plan enables both the Group and its business customers and passengers to contribute to emissions reductions.

Climate change adaptation

Climate change is having an increasingly significant impact on business operations, particularly in the transport sector, where extreme weather events can disrupt operations, damage infrastructure, and affect service delivery. Such disruptions could adversely affect not only the Group itself but also its customers, making freight transportation less reliable for business clients and limiting passengers’ ability to reach their destinations.

In response to these challenges, the Group has conducted a comprehensive climate risk assessment. This process includes the evaluation of both physical and transition climate risks and is integrated into the Group’s overall risk management framework.

Energy

LTG Group’s operations, which include passenger and freight transportation, require significant amounts of energy, particularly for traction, infrastructure heating, and lighting. A portion of this energy is still sourced from carbon-intensive fuels, including fossil fuels, resulting in adverse environmental impacts and contributing to the Group’s greenhouse gas (GHG) emissions footprint.

In response, LTG Group is implementing an extensive electrification programme aimed at gradually phasing out the use of fossil fuels. The electrification of railway lines, the acquisition of electric trains, and the introduction of energy-efficiency solutions will not only reduce emissions but also improve the efficiency of infrastructure operations.

The Group’s actions in this area contribute to the sustainability of the entire value chain. Lower-energy-intensity solutions and railway electrification support the development of cleaner transport services, benefiting both business customers and individual passengers.

Pollution

Air pollution

Although LTG Group’s operations are not considered highly polluting, the Group responsibly manages all potential sources of pollution and strives to minimise its environmental impact.

Air pollution may arise from stationary sources such as fuel-combustion equipment, welding facilities, and paint shops. The Group continuously monitors pollution levels and implements preventive measures to reduce emissions and modernise its infrastructure.

Soil pollution

Soil pollution is primarily associated with historical contamination on properties managed by the Group. Remediation activities and environmental monitoring are carried out to protect groundwater resources and safeguard the quality of life of nearby communities.

Circular economy

Waste

LTG Group is committed to reducing waste generation and ensuring the responsible management of waste across all areas of its operations. Priority is given to waste prevention, sorting, and recycling, thereby minimising environmental impacts.

The Group applies sustainable practices in infrastructure maintenance, repair activities, and day-to-day operations, while ensuring that waste is managed in compliance with applicable legal requirements. LTG continuously seeks opportunities to optimise processes and promote circular economy principles.

Decarbonisation

Decarbonisation is one of the Group’s key strategic priorities. To support this strategic direction, the Group has adopted a decarbonisation plan focused on reducing greenhouse gas (GHG) emissions from its direct operations (Scopes 1 and 2) by 42% and promoting a more sustainable supply chain.