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CONSOLIDATED
MANAGEMENT REPORT
Beginning of the reporting period
End of the reporting period
Business name
Registration number
Legal address
Telephone
Fax
E-mail
Website
Auditor
CONSOLIDATED
MANAGEMENT REPORT
FOR 2025
1 January 2025
31 December 2025
City Service SE
12827710
Narva mnt. 5, 10117 Tallinn,
the Republic of Estonia
+370 5 239 49 00
+370 5 239 48 48
info@cityservice.eu
http://www.cityservice.eu
Ernst & Young Baltic AS
1. Corporate profile
1.1. City Service Group
1.2. Strategy and objectives
1.3. Mission and vision
1.4. Structure of the Group
1.5. Employees
2. Management and Corporate
Governance report
2.1. Main areas of activity
2.1.1. Administration of apartment buildings
2.1.2. Management of commercial building facilities
2.1.3. Maintenance and cleaning of territories
2.1.4. Other activities
2.1.5. Apartment rental and property management
2.2. Performance improvement
2.3. Significant events
2.4. Key risk activity types and uncertainties
2.5. The main financial ratios concerning the financial year
2.6. The structure of the Company’s share capital
2.7. The shareholders of the Company
2.8. Restrictions on the transfer of securities and restrictions on voting rights
2.9. Company’s supervisory board and management board
2.9.1. Company’s supervisory board
2.9.2. Company’s management board
2.10. Dividend policy
2.11. Procedure of amendment of the Statutes of the Company
2.12. Material agreements concluded by the Company which may be important
after change of control of the Company
2.13. Auditing system and description of the main features of internal audit
and risk management systems in connection with the process of the preparation
of the annual accounts
2.14. Information on compliance with the corporate governance code
2.15. Remuneration report
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CONTENT
3. Sustainability Statement 2025
About the report
Sustainability governance
Strategy, business model and value chain
Stakeholder engagement
Double materiality assessment
E1 climate change
Climate risk assessment
Eu taxonomy disclosure
S1 own workforce
S2 workers in the value chain
S4 consumers and end-users
G1 business conduct
Indices
39
39
41
50
53
55
64
65
76
82
97
99
104
109
4. Consolidated financial statements
Consolidated statement of financial position
Consolidated statement of comprehensive income
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the financial statements
Note 1 General information
Note 2 Material accounting policies
Note 3 Use of judgements and estimates in preparation of financial statements
Note 4 Segment information
Note 5 Goodwill
Note 6 Other intangible assets
Note 7 Property, plant and equipment
Note 8 Inventories
Note 9 Prepayments
Note 10 Other non-current and current receivables
Note 11 Trade receivables
Note 12 Cash and cash equivalents
Note 13 Reserves and share premium
Note 14 Borrowings
Note 15 Leases
Note 16 Provision for employee benefits
Note 17 Trade payables and other payables
Note 18 Contract liabilities - advances received
Note 19 Cost of sales
Note 20 General and administrative expenses
Note 21 Income tax
Note 22 Basic and diluted earnings per share (EUR)
Note 23 Dividends per share
Note 24 Financial assets and liabilities and risk management
Note 25 Commitments and contingencies
Note 26 Related party transactions
Note 27 Capital management
Note 28 Subsequent events
Note 29 Parent company’s unconsolidated financial statements
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130
139
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152
152
153
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According to Management Board Regulations of City Service SE, Chairman of the Management
Board hereby declares and confirms that according to his best knowledge, the financial statements,
prepared according to the accounting standards in force, present a correct and fair view of the
assets, liabilities, financial situation and loss or profit of the issuer and the undertakings involved in
the consolidation as a whole, and the management and sustainability reports, prepared according
to the accounting standards in force, gives a correct and fair view of the development and results
of the business activities, financial status and aims in environmental, social and governance areas of
the issuer and the undertakings involved in the consolidation as a whole and contains a description
of the main risks and doubts.
Chairman of the Management Board
Artūras Gudelis
DECLARATION
OF THE MANAGEMENT
30 April 2026
7
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
1.1. CITY SERVICE GROUP
City Service SE is a holding company managing a group of companies operating in the field of
building management and integrated facility services in the Baltic States. The Group provides
comprehensive solutions for the management of residential and commercial real estate.
The companies within the Group are engaged in the administration of building management processes, maintenance
and repair of engineering systems, energy resource management based on artificial intelligence solutions, building
renovation, technical and energy audits. In addition, the Group provides territory maintenance and cleaning services,
apartment rental and administration services, IT services, fuel station maintenance, and debt administration services.
The Group conducts its operations in accordance with sustainable environmental principles, focusing on efficient re-
source use and the long-term preservation of building value.
Administration
of residential
apartment
buildings
Commercial
property
management
Territory
cleaning and
maintenance
Apartment
rental and
administration
Main business areas of the Group:
CORPORATE
PROFILE
Other
related
activities
8
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
1.3. MISSION AND VISION
1.2. STRATEGY AND OBJECTIVES
By combining City Service expertise with a deep understanding of local specifics, we provide our
customers with modern and convenient services.
Our long-term objective is very linked with our mission – growth of commercial, public and private property manage-
ment, development of integrated utility services.
16.2
millions m
2
Currently, City Service SE Group
operates in Lithuania and Latvia.
The total area of buildings
administered by the Group in
these regions amounts to
OUR VISION
is to be a leader in value creation
of residential property.
OUR MISSION
is to represent the interests of
customers by increasing the value
of their property and improving their
living environment.
9
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
LITHUANIA LATVIA
76%
UAB Alytaus namų
valda
100%
UAB Energijos taupymo
paslaugos
100%
UAB Mano Būstas
Kaunas
100%
UAB Mano Būsto
klientų patirčių centras
100%
UAB Rinkų vystymas
100%
SIA BILANCE
100%
SIA MultiHouse
100%
UAB Baltijos NT
valdymas
100%
UAB EPC projektai
100%
UAB Mano Būstas
Klaipėda
100%
UAB Mano Būsto
priežiūra
100%
UAB Šiaulių NT
valdymas
100%
SIA Manas MĀJAS
100%
SIA Latvijas
Namsaimnieks
100%
UAB Baltijos transporto
valdymas
100%
UAB Kapitalo
Sprendimai
100%
UAB Mano Būstas
Neris
100%
UAB Merlangas
100%
UAB Skolos LT
100%
SIA BonoDomo
100%
SIA Livonijas Nami
57.71%
UAB Biržų butų ūkis
100%
UAB Mano aplinka
100%
UAB Mano Būstas NPC
100%
UAB Monto EU
100%
UAB Unitechna
100%
SIA Manas MĀJAS 1
100%
SIA Namu serviss APSE
100%
UAB BonoDomo
100%
UAB Mano bendrabutis
100%
UAB Mano Būstas
Radviliškis
100%
UAB Namų priežiūros
tarnyba
100%
UAB Žemaitijos būstas
100%
SIA Manas MĀJAS 2
100%
SIA Manas MĀJAS
Tukums
100%
UAB BonoDomo Pay
100%
UAB Mano Būstas
100%
UAB Mano Būstas
Šiauliai
100%
UAB Naujininkų ūkis
100%
SIA Manas Majas
Salnas 21
100%
SIA Manas MĀJAS
Jelgava
100%
UAB Būsto aplinka
100%
UAB Mano Būstas
Alytus
100%
UAB Mano Būstas
Sostinė
100%
UAB GS-Servisas
100%
SIA City Service
Engineering
100%
SIA Nia Nami
100%
UAB City Service
Cleaning
100%
UAB Mano Būstas
Aukštaitija
100%
UAB Mano Būstas
Ukmergė
100%
UAB Nacionalinis
renovacijos fondas
100%
SIA Manas MĀJAS 3
100%
UAB City Service
Engineering
UAB Mano Būstas
100%
Baltija
99.97%
UAB Mano Būstas
Vakarai
100%
UAB Pastatų priežiūra
100%
SIA Ēku pārvaldīšanas
serviss
100%
UAB CSG IT
100%
UAB Mano Būstas
Dainava
100%
UAB Mano Būstas
Vilnius
100%
UAB Pastatų valdymas
100%
SIA Manas MĀJAS
Ventspils
1.4. STRUCTURE OF THE GROUP
10
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
1.5. EMPLOYEES
In 2025, the City Service Group continued to strengthen employee engagement, internal
communication, and organizational culture across all Group companies. To ensure transparent
information sharing and consistent employee awareness, regular in-person meetings with
management were held, during which the Group’s strategy, operational objectives, and achieved
results were presented. This practice has become a sustainable organizational tradition, supporting
a clearer understanding of the business direction, strengthening trust in leadership, and fostering
long-term employee engagement.
Significant focus was placed on digitalization and the de-
velopment of artificial intelligence solutions. The Group
actively continued to develop and implement AI solutions
aimed at improving work quality, increasing operational
efficiency, and promoting innovation. Employees from
various functions were involved in AI initiatives, enabling
interdisciplinary collaboration. Solutions were presented
during project meetings, training sessions, and practical
workshops, while accumulated experience was leveraged
in the development of new processes and services that
enhance the Group’s competitiveness.
The onboarding of new employees was carried out
through a structured integration process, including intro-
ductory training, informational materials, welcome initia-
tives, and active involvement of direct managers. At City
Service Engineering, the new employee day initiative was
continued, introducing newcomers to the Group’s op-
erations, values, strategic priorities, occupational safety,
data protection, and principles of responsible technology
use. This approach supports smooth integration of new
employees, increases job satisfaction, and contributes to
reducing early-stage employee turnover.
Employee well-being and organizational culture remained
among the key priorities of the Group. In 2025, employ-
ees were offered additional benefits, community-building
initiatives were organized, and access to professional,
confidential, and anonymous psychological support was
provided. A traditional summer event was held, holiday
gifts were provided, long-serving employees were recog-
nized, access to seasonal flu vaccination was offered, and
additional allowances were granted to employees work-
ing remotely. Motivational and team-building activities
remained an integral part of the organizational culture,
with employees participating in joint gatherings, team
activities, and informal initiatives aimed at strengthening
interpersonal relationships. The digital MELP platform
was used to support internal communication, employee
recognition, and engagement surveys.
11
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
The Group also actively contributed to social impact
initiatives and the support of local communities. For the
third consecutive year, City Service Engineering imple-
mented a corporate social responsibility initiative, with
six regional teams across Lithuania participating in 2025.
As part of the initiative, support was provided to social
and non-governmental organizations, infrastructure im-
provement works were carried out, technical assistance
was delivered, and support was extended to animal wel-
fare organizations, contributing to community well-being
and the reduction of social exclusion.
In 2025, an employee engagement survey was conducted,
with results indicating an employee NPS
1
of +23 and an
overall engagement score of 51.1%. The insights from the
survey were communicated to employees, and follow-up
actions were defined to further enhance engagement and
job satisfaction. During annual performance and develop-
ment discussions, employees were assigned performance
objectives and provided with structured feedback on
professional development and values-based behaviours.
In 2025, this process was expanded to more actively in-
clude technical employees, and candidate NPS measure-
ment was also introduced.
The City Service Group continued to invest in employ-
ee skills development by organizing internal and exter-
nal training programs delivered both in person and re-
motely, with particular focus on onboarding, adaptation,
and long-term professional growth. The Group regularly
participates in salary benchmarking surveys and, taking
into account market developments, reviews remunera-
tion systems across countries of operation to ensure a
competitive, transparent, and motivating compensation
policy.
As of the end of 2025, the Group employed a total of
1,339 employees, of whom 1,225 were based in Lithuania
and 114 in Latvia.
Number of employees
by country:
LITHUANIA LATVIA
employees
employees
1,225
114
The total number
of employees of the Group is
1,339
1
NPS - Net Promoter Score
12
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
2.1. MAIN AREAS OF ACTIVITY
2.1.1. Administration of apartment buildings
The Group’s companies provide multi-apartment building administration services, performing all
actions necessary to preserve common-use property and ensure its use in accordance with its
intended purpose, as well as carrying out ongoing technical maintenance.
The companies ensure the mechanical stability of the main building structures, eliminate minor defects, conduct pre-
ventive maintenance and adjustment of common engineering systems, ensure safe operation, eliminate emergencies,
and perform preventive maintenance, adjustment, and preparation for the heating season of heat and hot water supply
systems.
The Group provides multi-apartment building administration, technical maintenance, and repair services in Lithuania
and Latvia.
MANAGEMENT
AND CORPORATE
GOVERNANCE REPORT
13
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
In Lithuania, the Group
expanded its portfolio of
managed multi-apartment
buildings by signing new
agreements with apart-
ment owners. During the
year, comprehensive property maintenance ser
-
vices were additionally launched for 129 multi-
apartment buildings with a total area exceeding
205 thousand sq. m. The total managed portfolio
amounts to approximately 10 million sq. m. as of
31 December 2025.
In order to improve service quality and better meet cus-
tomer expectations, the Group companies systematically
monitored the customer satisfaction index (NPS) and
adjusted operational processes based on the results.
The stairwell vacuum cleaning service grew significantly
– from only a few stairwells maintained in 2024 to 250
premises serviced in 2025.
Remote management of heating systems was also ex-
panded – in 2025, 519 heating substations were connect-
ed to the remote management platform. This enables
real-time preventive monitoring of parameters and faster
response to system disruptions.
The self-service platform “BonoDomo” continues to play
an important role in the Group’s customer service. In 2025,
44% of the Group’s customers used the platform, and 600
thousand invoices were paid through it. During the report-
ing period, the total number of user logins reached 3.9
million, reflecting the growing use of digital services.
Area of currently maintained buildings
in Lithuania amounts to
10
million m
2
Total number of user logins
reached in
BonoDomo was
3.9
million
Area of currently maintained
buildings in Latvia amounts to
0.8
million m
2
In Latvia, the Group’s
companies actively im-
proved customer inquiry
management, call center,
and invoicing systems, as
well as internal processes.
These changes helped increase operational ef-
ficiency and improve the quality of services pro-
vided.
Customer satisfaction is monitored using the Net Promoter
Score (NPS), which remained stable during the first half of
the year, reflecting customers’ trust in the company.
The Group’s companies plan to continue expanding their
operations in Latvia, both organically and through new ac
-
quisitions. Activities will also be expanded to other cities
across the country. Currently, services are provided in Riga,
Liepāja, Ventspils, Tukums, Jelgava, and Ogre.
14
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
Changes in the area of managed apartment buildings
in the Group companies, million m
2
2025
Area of apartment buildings managed by the Group decreased mainly due to sale of business in Poland in 2023
(1.08 million m
2
).
2022 2023
2024
11.9
10.6
10.3
10.6
15
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
2.1.2. Management of commercial building facilities
The Group’s companies provide commercial building facility management services that ensure
reliable operation of building systems and reduced maintenance costs. The companies take care
of building maintenance ranging from engineering equipment, energy resource management and
efficiency, to indoor cleaning services.
The Group’s commercial building facility management
services are provided in Lithuania and Latvia.
City Service Engineering con-
tinues to strengthen its posi-
tion in the Lithuanian building
maintenance market. In 2025,
the company signed 41 new
building maintenance con-
tracts, maintaining a steady pace of growth and expand-
ing the scope of its services.
Among the most significant projects are contracts for
the maintenance of four business centres managed by
the investment company “Capitalica”. The company’s
portfolio was also expanded with two major industrial
facilities – the “Hommanit” and “Narbutas” factories, the
new “Eurovaistinė” logistics warehouse, and the “Tower”
shopping centre. In addition, cooperation with the long-
term client “Telia” continues to be strengthened through
the commencement of refrigeration equipment mainte-
nance services.
The company continues to implement advanced solutions
focused on efficient building maintenance and preserving
the value of clients’ assets. The newly signed contracts
reflect growing clients’ trust and the company’s expertise
in the field of facility management.
41
contracts with
new customers
were signed in
Lithuania.
A Group company operating
in Latvia has recently signed
several significant contracts
for integrated building facility
management and maintenance
services. Among the key cli-
ents is “RĪGAS SATIKSME” (Riga Transport), for which
ventilation and air conditioning system maintenance ser-
vices are being provided across 38 sites, as well as “MAX-
IMA”, for which full servicing of 40 new locations is being
ensured. In addition, the Group is carrying out ventilation
and air conditioning system maintenance for the “Latvian
Prison Administration” and will provide comprehensive
maintenance of all engineering systems for the “Valmiera
Drama Theatre”.
Multiple
contracts with
customers were
signed
in Latvia.
16
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
Changes in the areas of commercial, public and industrial
buildings in managed by the Group companies, m
2
2025
5.7
2022
4.7
2023
5.1
2024
5.1
17
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
2.1.3. Maintenance and cleaning of territories
The Group’s companies provide a full range of territory maintenance and cleaning services: they
carry out indoor and outdoor cleaning works, maintain private territories and the surroundings
of apartment buildings, take care of snow, sand, and leaf removal, mow grass, perform specialized
cleaning works, and supply hygiene products. Cleaning and territory maintenance services are
provided throughout Lithuania.
In Lithuania
, the Group’s companies provide stairwell
and territory maintenance services for apartment buildings
in Vilnius, Kaunas, Klaipėda, Šiauliai, Alytus, Šilutė, Šilalė,
Telšiai, Radviliškis, Panevėžys, Palanga, and Tauragė.
In commercial properties—such as shopping centers,
sports clubs, exhibition halls, manufacturing and energy fa
-
cilities, and others—the Group’s company provides clean-
ing services in Vilnius, Kaunas, Klaipėda, Šiauliai, Panevėžys,
and Alytus. In 2025, the Group’s company began provid-
ing specialized cleaning services to new business centers
in Vilnius (“Hero” and “AeroCity”) and in Kaunas to the
“Žalgirio” and “Šilainių” swimming pools.
A Group company engaged in the interior cleaning of com
-
mercial, industrial, and public buildings uses only sustainable
cleaning products instead of conventional chemical clean-
ers—products that do not contain chemicals harmful to
the environment or human health. This step was motivated
by the company’s desire to contribute to environmental
preservation, further ensure the cleanliness of premises,
and take more responsible care of the health of clients and
company employees.
18
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
2.1.4. Other activities
In addition to their core operations, the Group’s companies also provide other services.
2.1.5. Apartment rental and property management
In 2025, the group company “Monto” started providing apartment rental and property management
services. The company assists with all aspects of the real estate rental or sale process—from
preparing the property to finding tenants or buyers, as well as ensuring long-term management
and maintenance.
In Lithuania
, in 2025 the Group’s subsidiaries implemented building renovation projects in 122 residential buildings, pro-
vided maintenance services to 203 fuel stations, and recovered debts for the benefit of clients through judicial and pre-trial
procedures amounting to EUR 3.8 million.
the Group companies
provided maintenance
services to
203
fuel stations.
recovered debts for the
benefit of clients
3.8
million
Having become one of the largest residential rental manage-
ment companies, it currently manages more than 570 real
estate properties across Lithuania, Latvia, and Poland. The
company’s clients include both individual property owners
and institutional investors managing large, distinctive, and
unique real estate portfolios.
The company plans to expand further in Lithuania and oth
-
er European regions.
The total value of assets managed by “Monto” today ex
-
ceeds EUR 70 million.
The total value of
assets managed by
“Monto” exceeds
70
million €
19
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
In the area of administrative processes, the organization
continued to expand automation initiatives, including the
use of virtual assistants to support internal operations.
The application of AI solutions for document analysis
and evaluation significantly reduced processing times, im-
proved accuracy, and decreased the number of errors
across administrative workflows.
Significant attention is devoted to strengthening employ-
ees’ AI literacy. Regular training sessions are conducted
covering AI fundamentals, application opportunities, asso-
ciated risks, and principles of responsible use. Additional
targeted training is organized on a regular or ad hoc basis
for relevant stakeholders, focusing on practical tool usage,
risk awareness, and best practices. Training programs are
tailored to different competency levels and the specific
needs of individual departments, ensuring effective and re-
sponsible adoption of AI solutions across the organization.
2.2. PERFORMANCE IMPROVEMENT
In 2025, the Customer Service Centre continued the systematic implementation and development
of strategic artificial intelligence solutions aimed at increasing operational efficiency, optimizing
costs, and enhancing customer experience. Artificial intelligence was applied across customer
service, process automation, and sales enablement, enabling faster response to customer inquiries,
reducing manual workload, and ensuring service continuity during peak demand periods.
MANAGEMENT
AND CORPORATE
GOVERNANCE REPORT
In the area of customer service, AI solutions were de-
ployed across both written and voice communication
channels, accelerating request handling, automating re-
petitive tasks, and supporting uninterrupted service de-
livery during seasonal peak loads. Automated solutions
were also introduced to support voting-related processes
and proactive customer engagement, including outbound
communications for service sales, customer activation,
and the collection of additional service needs.
Within maintenance operations, AI-enabled solutions
were implemented to improve the speed and accuracy of
work order documentation and reporting. Voice-based
technologies support the prompt capture of completed
work information, while AI agents developed within in-
ternal systems contribute to the automation of routine
internal tasks, process acceleration, and the reduction of
manual effort.
20
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
On 13 January 2025 UAB “Merlangas” acquired 100%
of the shares of UAB “Naujininkų ūkis” (acquisition price
EUR 1,875 thousand). UAB “Naujininkų ūkis” is engaged
in facility administration activities in Lithuania.
On 27 January 2025 the Company „Monto EU“ en-
tered into a tripartite transfer agreement under which it
assumed from UAB „Newsec Property Management LT“
all rights and obligations under the residential property
management agreement and its amendments in relation
to the transferred property portfolio in amount of EUR
180 thousand. As a result of this transaction, the Com-
pany became the new property manager and service pro-
vider for that portfolio from the effective transfer date.
On 02 April 2025 the title of SIA “Manas MĀJAS” was
changed to SIA “Manas MĀJAS 1”. Other contact details
did not change.
On 02 April 2025 the title of SIA “City Service” was
changed to SIA “Manas MĀJAS”. Other contact details
did not change.
On 05 August 2025 the title of SIA “Nebruk Jelgava”
was changed to SIA “Manas MĀJAS Jelgava”. Other con-
tact details did not change.
On 29 September 2025 UAB “Monto” acquired
100% of the shares of UAB “Stop Kaune” (acquisition
price EUR 123 thousand). UAB “Stop Kaune” is engaged
in rental properties management activities in Lithuania.
On 29 September 2025 UAB “Mano Būstas” acquired
100% of the shares of UAB “Namų Priežiūros Tarnyba”
(acquisition price EUR 134 thousand). UAB “Namų
Priežiūros Tarnyba” is engaged in administration of dwell-
ing-houses in Lithuania.
On 27 November 2025 the title of UAB ”Butų ūkio
valdos” was changed to UAB “Žemaitijos būstas”. Other
contact details did not change.
On 01 December 2025 the title of SIA “Ventspils
Nami” was changed to SIA “Manas MĀJAS Ventspils”.
Other contact details did not change.
On 23 December 2025 UAB “City Service Engineer-
ing” acquired 100% of shares of UAB “GS servisas” (ac-
quisition price EUR 640 thousand). UAB “GS servisas”
operates a niche business specializing in the installation,
maintenance, and servicing of automatic doors, windows,
gates, and related systems.
On 03 December 2025 the composition of the Com-
pany’s Management Board was expanded from two to
six members. The following individuals were appointed as
additional members of the Management Board, effective
as of that date: Giedrius Jakubauskas, Mindaugas Genys,
Aistė Cikanaitė-Jankauskė, and Tomas Sujeta.
On 30 December 2025 UAB “CSG IT” was reor-
ganized by way of division and ceased to exist as a legal
entity. All rights and obligations of UAB “CSG IT” were
transferred to two other subsidiaries of the Company -
UAB “Mano Būstas” and UAB “Baltijos transporto valdy-
mas”. No effect on parent’s unconsolidated statement of
financial position.
On 30 December 2025 the Company’s subsidiary
UAB “Stop Kaune” was merged with UAB “Monto EU”.
Following the completion of the merger, UAB “Stop
Kaune” ceased to exist as a separate legal entity. No ef-
fect on parent’s unconsolidated statement of financial
position.
2.3. SIGNIFICANT EVENTS
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
The risks remain similar to last year‘s: inflation, customers’
ability to pay, competition-influenced stricter demands
from commercial and residential clients, supply of
qualified personnel in the market. Regarding inflation and
customers‘ ability to pay Group doesn‘t see significant
risk as the prices are stabilized and salary growth is stable.
The scope of residential apartment building
administration and maintenance services, the essential
requirements for service providers, and the tariff
calculation procedure are set and regulated in detail by
the national and local authorities. Local authorities are
empowered to set maximum tariffs for such services,
together with the relevant inspectorates control the
proper implementation by service providers of the
administration and maintenance requirements set out in
legislation. In case of incompliance with set requirements,
local authorities may impose sanctions.
Any claims concerning the services provided may be
presented to the authorities or service providers by
individual owners as well. Taking into account the
aforementioned, additional risk factors in the field
of apartment building administration and maintenance
include any possible amendments to the enforced
legislation, the frequency of adoption of such amendments,
resolutions passed by central or local authorities which
provide additional obligations for service providers and
the results of controls carried out by various inspectorates
and local authorities. Timely and correct indexation of
the set maximum tariffs is also a risk factor which has an
impact on the Group’s activities in the field of residential
apartment building administration and maintenance.
There were no other material changes in the legal
regulation of the area of administration and maintenance
of apartment buildings in 2025, and neither were there
any decisions providing significant additional obligations
for service providers. Supervising institutions did not
identify any deficiencies in the provision of the services
or inconsistencies with the legislative requirements.
CREDIT RISK
The Group’s procedures are in force to ensure on a
permanent basis that sales are made to customers with
an appropriate credit history and do not exceed an
acceptable credit exposure limit. There are no individual
customers exceeding 10% of segment sales.
The maximum exposure to credit risk is represented by
the carrying amount of each financial asset. Therefore,
the management considers that its maximum exposure is
reflected by the amount of trade and other receivables,
net of allowance for doubtful accounts recognized at the
date of the statement of financial position.
INTEREST RATE RISK
The major part of the Group’s borrowings (loans and
financial lease obligations) are subject to EURIBOR
which create an interest rate risk (Financial statements’
Notes 14 and 15). There are no financial instruments
designated in the financial statements to manage the
exposure to the interest rate risk outstanding as of 31
December 2025 and 2024.
The sensitivity of the Group’s profit before tax to
a reasonably possible change in interest rates would have
a negative effect on the profit before the income tax in
amount of EUR (296) thousand if the interest rates would
increase by 1 basis point (EUR (275) thousand in the year
2024). The Group doesn‘t see significant interest rates
risk as there were no significant changes in Company’s
financing from last year.
SEASONALITY
The Group doesn’t have observable seasonality as usually
revenues from facility management and residential building
administration are based on contractual flat terms and
services and works are provided continuously. However,
the most profitable is Q3 as the major part of additional
works are completed during this season due to favorable
weather conditions.
2.4. KEY RISK ACTIVITY TYPES AND UNCERTAINTIES
In 2025 the market was stable, prices and purchasing power did not decline in comparison with
2024. Due to heavy competition in facility management market the Group had to concentrate
on further efficiency of activities. Building administration tariff has not changed significantly in a
year. Improved customers experience and active sales led to rapid increase in additional services
sales volume.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
2.5. THE MAIN FINANCIAL RATIOS CONCERNING
THE FINANCIAL YEAR
KEY FINANCIAL INDICATORS*
2022 2023 2024 2025
Sales in Baltics (Lithuania and Latvia)
84,145 101,561 109,891 115,566
Sales in foreign markets (Poland, CIS and Spain)**
31,207 7,919 - -
Area under management in Lithuania and Latvia
(thousand sq. m)
14,945 15,233 15,322 16,276
Area under management in foreign markets
(Poland, CIS and Spain)**
1,080 - - -
GROSS PROFIT
EBITDA
664 10,377 10,490 13,061
EBITDA margin
0,6% 9,5% 9,5% 11,3%
Operating profit (EBIT)
(3,177) 6,577 8,336 10,825
EBIT margin
-2,8% 6,0% 7,6% 9,4%
Earnings before tax (EBT)
(4,400) 7,461 7,123 10,487
EBT margin
-3,8% 6,8% 6,5% 9,1%
Net profit
(5,179) 5,150 6,549 9,564
Net profit in foreign markets (Poland, Russia and Spain)**
(10,749) (1,760) - -
Net profit margin
-6.15% 5.07% 5.96% 8.28%
Profit per share (EUR)
-0.15 0.19 0.21 0.30
Return on equity (ROE)
-28.7% 24.6% 22.7% 29.0%
Return on assets (ROA)
-6.7% 7.1% 7.1% 9.6%
* Key financial data and ratios in 2022 - 2023 are represented
including subsidiaries that were disposed in 2022 - 2023.
All amounts in key financial indicators are in EUR thousand unless
otherwise stated.
** Group companies operating in Russia were disposed during
2022, Poland, Spain, Czech and Portugal disposed during 2023.
EBITDA = Net profit + Income Tax + Depreciation and Amortization + Other finance
income (expenses) + Interest income (expenses) + Loss (gain) on sale of investments
EBITDA margin = EBITDA / Revenue from contracts with customers * 100 %
Profit (loss) from operations (EBIT) = Net profit + Income Tax + Other finance income
(expenses) + Interest income (expenses) + Loss (gain) on sale of investments
EBIT margin = EBIT / Revenue from contracts with customers * 100 %
Profit (loss) before tax (EBT) = Net profit (loss) - Income Tax
EBT margin = EBT / Revenue from contracts with customers * 100 %
Net profit (loss) = EBT + Income Tax
Net profit (loss) margin = Net profit / Revenue from contracts with customers
Profit (loss) per share (EUR) = Net profit / Amount of shares
Return on equity (ROE) = Net profit / Equity * 100 %
Return on assets (ROA) = Net profit / Assets * 100%
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
* Group companies operating in Russia were disposed during 2022, Poland, Spain, Czech and Portugal disposed during 2023
Area under
management,
thousand m
2
NET profit (loss),
thousand Eur
NET profit (loss),
margin %
Sales,
thousand Eur
84,145 101,561
1,080
0
0
0
31,207
7,919
Area in foreign markets
(Russia, Poland, Czech and Portugal)*
Area under management in Lithuania and Latvia
Sales in foreign markets
(Russia, Poland, Czech and Portugal)*
Sales in Lithuania and Latvia market
14,945 15,32215,233
5.07
5,150
6,549
9,564
-6.15
-5,179
2022 2023
2023 2023
2022 2023
2022 2022
HIGHLIGHTS
2024
109,891
2024
2024 2024
5.96
8.28
2025 2025
2025
2025
16,276 115,566
0
0
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
2.6. THE STRUCTURE OF THE
COMPANY’S SHARE CAPITAL
The share capital of the Company is EUR 9,483 thousand as of 31 December 2025. It is divided
into 31,610 thousand ordinary shares with the nominal value of EUR 0.30 each. All shares of the
Company are paid up.
As of 31 December 2025 all 31,610 thousand ordinary
shares of the Company are included into the Parallel
Market of Warsaw Stock Exchange and Baltic First North
Foreign Shares trading list of NASDAQ Baltic Market (ISIN
Code of the shares is EE3100126368). Trading Code of the
shares on Warsaw Stock Exchange is CTS, on NASDAQ
Baltic Market - CTS1L.
The Company does not have any other classes of shares
than ordinary shares mentioned above, there are no any
restrictions of share rights or special control rights for the
shareholders settled in the Statutes of the Company. No
shares of the Company are held by itself or its subsidiaries.
No convertible securities, exchangeable securities or
securities with warrants are outstanding; likewise, there
are no outstanding acquisition rights or undertakings to
increase share capital. There are no shareholders with
special control rights in the Company; the ordinary shares
grant equal rights to all the shareholders of the Company.
THE RIGHTS CONFERRED BY THE SHARES ARE AS FOLLOWS:
● to receive a portion of the Company’s profit
(dividends);
● to receive the Company’s funds when the capital of
the Company is reduced with intend to pay out the
Company’s funds to the shareholders;
● to receive shares without payment if the capital is
increased from the shareholders’ equity (bonus issue);
● to have a pre-emption right in acquiring the shares
or convertible debentures issued by the Company,
except in the case when the General Meeting
decides to withdraw the pre-emption right for all the
shareholders;
● to receive a part of the assets of the Company in
liquidation;
● to attend General Meetings;
● to vote at General Meetings according to voting rights
carried by their shares;
● to receive information on the activities of the
Company from the Management Board at the General
Meeting, unless this may cause significant damage to
the interests of the Company;
● to demand the calling of a General Meeting, if this is
demanded by shareholders whose shares represent
at least one-twentieth of the share capital of the
Company;
● to call a General Meeting, if the Management Board
does not call a General Meeting within one month
after receipt of such a demand by shareholders whose
shares represent at least one-twentieth of the share
capital of the Company;
● to demand at the General Meeting a resolution to
conduct a special audit on matters regarding the
management or financial situation of the Company,
if this is demanded by shareholders whose shares
represent at least one-tenth of the share capital of the
Company;
● other property and non-property rights set out in the
Commercial Code.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
2.7. THE SHAREHOLDERS OF THE COMPANY
On 31 December 2025 the total number of shareholders of the Company was 72.
2.8. RESTRICTIONS ON THE TRANSFER OF SECURITIES
AND RESTRICTIONS ON VOTING RIGHTS
To the best knowledge of the Company and its management, the transfer of the shares was free
from any restrictions on the transfer of the Company’s shares in 2025.
Company’s shares distribution among shareholders who have more than 5 % shares of the Company as of 31 December
2025 was the following:
To the best knowledge of the Company and its management, the voting rights were free from any other restrictions on
the shares issued by the Company. To the best knowledge of the Company, all shareholders of the Company have the
voting right in the General Meeting.
* Number of the shareholders includes shareholders who hold more than 0.5 per cent of the votes through a nominee
accounts (according to amendments that entered into force in 10 September 2020 in the Securities Register Maintenance
Act (§ 6 Nominee account (subsection 9.2)) and the shareholders who hold their shares directly (not through nominee
accounts).
NUMBER OF
SHARES HELD
OWNED PERCENTAGE
OF THE SHARE
CAPITAL AND VOTES, %
UAB Unit Invest, legal entity
code 305873584, address:
Ozo str. 12A-1, Vilnius,
Lithuania
26,813,293 84.83 %
Other private and institutional
shareholders
4,796,707 15.17 %
TOTAL
31,610,000 100 %
Other private and institutional shareholders
UAB Unit Invest
84.83%
15.17%
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
2.9. COMPANY’S SUPERVISORY BOARD
AND MANAGEMENT BOARD
2.9.1. Company’s supervisory board
The Supervisory Board is a collegial management body of the Company. The Supervisory Board
shall consist of one (1) to seven (7) members elected for a term of 4 (four) years by the General
meeting in accordance with the procedure provided for by the Law on Companies of the Republic
of Estonia.
Only a natural person may be elected to serve on the Supervisory Board. There is no limitation on the number of
terms of offices a member of the Supervisory Board may serve. The Supervisory Board shall elect its chairman from
among its members. The General Meeting may remove from office the entire Supervisory Board or its individual mem-
bers before the expiry of their term of office.
A member of the Supervisory Board may resign from office prior to the expiry of his term of office by giving a written
notice thereof to the Company. The powers of the Supervisory Board shall cover consideration of the following issues
and taking of the following decisions:
● to elect and remove from the office the members of
the Management Board, set their remuneration, other
terms of office (employment), approve Management
Board regulations;
● to appoint and remove procurators;
● for the Company to become a founder or a member
of other legal entities, to acquire, transfer or dissolve
(liquidate) any such entities, as well as decisions to
transfer or encumber any shares (parts, shares of
stock) or rights assigned thereto held by the Company
to other persons;
● to establish or terminate activities of affiliates or
representative offices of the Company, approve their
regulations;
● to transfer, lease or encumber immovables or registered
movables of the balance value exceeding 1/20 (one-
twentieth) of the Company’s share capital (per each
type of transaction);
● to make investments exceeding approved budget for
the current financial year;
● to assume loans or debt obligations exceeding approved
budget for the current financial year;
● to offer surety or guarantee of obligations of third
parties for an amount in excess of 1/20 (one-twentieth)
of the share capital of the Company;
● to acquire long-term assets at a price exceeding 1/20
(one-twentieth) of the Company’s share capital;
● to engage the Company into new business activities or
to discontinue any specific activity currently performed;
● to approve participation and (or) conclusion of peaceful
settlement agreements in legal proceedings where the
amount of claims made to or by the Company exceeds
1/5 (one fifth) of the share capital of the Company;
● to issue debentures of the Company or other forms of
borrowing from any natural or legal persons (regardless
of the amount);
● to conclude transactions between the Company and
the management board members which are beyond the
scope of everyday economic activities of the Company
or exceed the market price;
● to determine which information will be considered
the Company’s commercial (industrial) secret and
confidential information;
● to approve operating strategy, annual report, interim
report, management structure of the Company, as
well as positions of employees, positions to which
employees are recruited by holding competitions;
● to approve merger, acquisition, reorganization,
separation, foundation of new legal entities or similar
corporate legal actions;
● to approve acquisition of all long-term assets (including
but not limited companies, real estate, cars, tools,
equipment, computers, software, telephones etc.);
● to determine the methods used by the Company to
calculate the depreciation of tangible assets and the
amortization of intangible assets.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
The Supervisory Board shall plan the activities of the Company, organize the Management of the Company and supervise
the activities of the Management Board. The Supervisory Board also has the right to decide on other issues which are not
assigned to the competence of the Management Board or the General Meeting of shareholders pursuant to law or the
Statutes. The Supervisory Board analyses and assesses the Company’s draft of its annual set of financial statements and
draft of profit/loss appropriation and along with annual report shall submit them to the General Meeting.
● the implementation of the operating strategy of
the Company;
● the organization of the activities of the Company;
● the financial status of the Company; of the
Management Board or the General Meeting of
shareholders pursuant to law or the Statutes.
The Supervisory Board analyses and assesses
the Company’s draft of its annual set of financial
statements and draft of profit/loss appropriation
and along with annual report shall submit them
to the General Meeting;
● the results of business activities, income and
expenditure estimated, stocktaking;
● data and other accounting data of changes in the
assets;
● quarterly investment plans.
The Supervisory Board shall analyze and evaluate
documents submitted by the Management Board of the
company on:
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
NAME AND SURNAME POSITION START OF TERM END OF TERM
Andrius Janukonis Chairman of the Supervisory Board June 21, 2023 June 21, 2027
Gintautas Jaugielavičius Member of the Supervisory Board June 21, 2023 June 21, 2027
As of 31 December 2025, the Supervisory Board of
the Company comprises of the following persons:
Andrius Janukonis is the Chairman of the Supervisory
Board of City Service SE. In 2004, he worked as a con-
sultant to UAB “ICOR” and has since served as Chair-
man of the Board of the company. From 2009 to 2015,
he was Chairman of the Board of AB “City Service”. Mr.
Janukonis holds a Master’s degree in Law.
Gintautas Jaugielavičius is a Member of the Super-
visory Board of City Service SE. In 2004, he worked as a
consultant to UAB “ICOR” and has since been a Member
of the Board of the company. From 2009 to 2015, he
served as a Member of the Board of AB “City Service”.
Mr. Jaugielavičius holds a Bachelor’s degree in Economics.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
The Management Board of the Company comprises of six (6) members who are representing and
directing the Company. The members of the Management Board are elected by Supervisory Board
for a term of four (4) years. Supervisory Board has right to elect and remove from the office the
members of the Management Board, set their remuneration, other terms of office (employment),
approve Management Board regulations. A member of the Management Board may resign from
office prior to the expiry of his term of office by giving a written notice.
Management Board members are authorized to represent the Company in all legal acts which do not fall within com-
petence are of other Management bodies. The individual members of the Management Board have competence, are
accountable and responsible within the following jurisdictions and areas of activity of the Company and its directly
controlled subsidiaries under Management Board regulations. Management Board member isn’t authorized to issue or
repurchase shares of the Company. Also there is no agreements between the Company and its Management Board
or employees.
As of 31 December 2025 the Management Board of the Company comprises of the following persons:
2.9.2. Company’s management board
NAME AND SURNAME
POSITION WITHIN
THE GROUP
START OF TERM END OF TERM
Artūras Gudelis Chairman of the Management Board June 26, 2021 June 26, 2029
Vytautas Turonis Member of the Management Board June 26, 2021 June 26, 2029
Mindaugas Genys Member of the Management Board December 03, 2025 December 03, 2029
Aistė Cikanaitė-Jankauskė Member of the Management Board December 03, 2025 December 03, 2029
Giedrius Jakubauskas Member of the Management Board December 03, 2025 December 03, 2029
Tomas Sujeta Member of the Management Board December 03, 2025 December 03, 2029
They do not own any shares of the Company.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
Artūras Gudelis
Artūras Gudelis has been working within the ICOR group of companies since
2006 and has served as Chairman of the Management Board of City Service SE
since 2017. From 2015 to 2017, he was a Member of the Supervisory Board
of the Company. Mr. Gudelis is responsible for performing the functions of the
Chairman of the Management Board, ensuring the efficient organization of the
Board’s activities, and overseeing the implementation of strategic decisions. He
ensures proper corporate governance of the Company, coordinates the activities
of the Management Board, and contributes to the development and execution
of the Company’s long-term strategy. His professional experience enables him to
ensure the Company’s sustainable development, transparency, and responsible
management in the interests of shareholders and investors. Mr. Gudelis holds a
Bachelor’s degree in Economics and a Master’s degree in Business Administration.
Vytautas Turonis
Vytautas Turonis has been working within the Group since 2004, initially as
Head of the Market Development Department, and subsequently held vari-
ous managerial positions. Since 2017, he has been a Member of the Board
of City Service SE and is currently responsible for the Baltic countries. Mr.
Turonis oversees the strategic and operational management of the Group’s
activities in Lithuania and Latvia. His responsibilities include operational plan-
ning and execution, supervision of financial performance, budget control, en-
hancement of operational efficiency, risk management, and ensuring compli-
ance and sustainability. Mr. Turonis holds a Bachelor’s degree in International
Business.
Mindaugas Genys
Mindaugas Genys has been working within the Group since 2007. He began
his career as a Project Manager, later served as Head of the Klaipėda Region,
and also led the Multi-Apartment Building Administration Department. Since
2023, he has been the CEO of the “Mano BŪSTAS” group of companies,
and since 2025 – a Member of the Board of City Service SE. Mr. Genys is re-
sponsible for the strategic and operational management of “Mano BŪSTAS.”
His responsibilities include operational planning and implementation, ensuring
service quality and efficiency, supervision of financial results, budget control,
improvement of organizational processes, coordination of team performance,
and creation of long-term business value. Mr. Genys has completed studies in
history, theology, and business.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
Aistė Cikanaitė-Jankauskė
Aistė Cikanaitė-Jankauskė has been working within the Group for 21 years and
currently serves as Chief Executive Officer of City Service SE. During this pe-
riod, she has gained significant experience in legal affairs, operational manage-
ment, and the building maintenance services sector. Since 2025, she has been a
Member of the Board of City Service SE. Ms. Cikanaitė-Jankauskė is responsible
for the legal, human resources, procurement, real estate, and fleet manage-
ment functions across the Group. Her responsibilities include strengthening
internal processes, increasing organizational maturity, and ensuring sustainable
growth of the Group. Ms. Cikanaitė-Jankauskė is an experienced executive
with competencies in data analytics, strategic planning, business development,
legal affairs, and sales management. She holds a Master’s degree in Law.
Giedrius Jakubauskas
Giedrius Jakubauskas joined the City Service SE group of companies in 2025
as Group Chief Financial Officer. He has extensive experience in financial
management and has worked in companies operating in the building main-
tenance sector, as well as in corporate groups such as AB “Achema Group,”
“KIKA Group,” and others. Since 2025, he has been a Member of the Board
of City Service SE. Mr. Jakubauskas is responsible for the overall financial
management of the Group. His responsibilities include financial planning and
control, budgeting and budget supervision, organization of accounting, and
ensuring the efficiency of financial processes across all jurisdictions in which
the Group operates. Mr. Jakubauskas holds a Master’s degree in Finance.
Tomas Sujeta
Tomas Sujeta has been working within the group of companies since 2006.
He started his career as a Manager and later became Director of City Service
Engineering. Since 2025, he has been a Member of the Management Board
of City Service SE. Within the Group, Mr. Sujeta is responsible for com-
mercial buildings segment. He oversees engineering operations management,
ensuring the quality of technical solutions, service efficiency, and technological
advancement across commercial real estate properties. His responsibilities
include operational planning and implementation, coordination of engineering
teams, process improvement, and the creation of long-term value for clients.
Mr. Sujeta holds a Bachelor’s degree in Law.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
2.10. DIVIDEND POLICY
The Company does not have an approved policy on dividend distributions and any restrictions
thereon. Decision on distribution of dividends to shareholders is adopted by the General Meeting.
2.11. PROCEDURE OF AMENDMENT OF THE
STATUTES OF THE COMPANY
The Statutes of the Company shall be amended in accordance with the procedure provided for by
the Law on Companies of the Republic of Estonia and the Statutes of the Company. The Statutes of
the Company may be amended only by the decision of the General Meeting, exceptions may occur
under the Law on Companies of the Republic of Estonia.
The resolution regarding amendment of the Statutes of the Company shall be taken in the General Meeting by at least
2/3 of all votes conferred by the shares of the shareholders present at the General Meeting. Following the decision
taken by the General Meeting to amend the Statutes of the Company, the full text of the amended Statutes shall be
drawn up and signed by the person authorized by the General Meeting. The amended Statutes shall become effec-
tive and may be used as the basis following registration of the amended Statutes with the Commercial register of the
Republic of Estonia.
In the period since the 1st of January 2025 by the 31st of December 2025 and the day of Annual Report is released
Company‘s Statutes are valid in wording registered in Estonian Commercial register on Register of Legal Entities. The
relevant Statutes of the Company is available on its website at www.cityservice.eu.
2.12. MATERIAL AGREEMENTS CONCLUDED BY THE
COMPANY WHICH MAY BE IMPORTANT AFTER
CHANGE OF CONTROL OF THE COMPANY
There were no material agreements concluded by the Company which came into effect, were amend-
ed or terminated following a change of control of the Company during the reporting period.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
2.13. AUDITING SYSTEM AND DESCRIPTION OF THE
MAIN FEATURES OF INTERNAL AUDIT AND RISK
MANAGEMENT SYSTEMS IN CONNECTION WITH
THE PROCESS OF THE PREPARATION OF THE
ANNUAL ACCOUNTS
The Company has the Audit Committee in place. The Regulations of the activity of the Audit
Committee were approved by the Supervisory Board. According to the Regulations of the activity
of the Audit Committee the main functions of this committee are as follows:
● to monitor and analyze processing of financial
information, including observing the process of the
preparation of financial reports of the Company;
● to provide the Supervisory Board with
recommendations regarding the selection and/or
removal of an external audit company;
● to provide the Supervisory Board with
recommendations regarding the selection and/or
removal of the internal auditor;
● to observe the efficiency of the internal control
systems, risk management and internal audit systems;
● to observe the process of carrying out an external
audit;
● to observe how the external auditor or audit company
follow the principles of independence and objectivity;
● to fulfil other functions specified in the legal acts of the
Republic of Estonia, including to:
● monitor and analyze efficiency of risk management
and internal control;
● monitor and analyze the process of auditing of annual
accounts and consolidated accounts;
● monitor and analyze independence of an audit firm
and a sworn auditor representing an audit firm on
the basis of law and compliance of the activities
thereof with other requirements of the Auditors
Activities Act of the Republic of Estonia (in Estonian:
audiitortegevuse seadus);
● make recommendations or proposals to the
Supervisory Board regarding prevention or elimination
of problems and inefficiencies in an organization
and compliance with laws and the good practice of
professional activities;
● to immediately inform the Supervisory Board about
the information presented to the Audit Committee by
the audit company regarding any issues arisen during
the audit especially in case of significant shortcomings
of internal control related to financial reports.
Members of the Audit Committee shall be appointed by
the Supervisory Board.
The Audit Committee consists of 3 members, one of
whom shall be independent and the other two members
shall be appointed out of the non-overhead staff of the
Administration of the Company or Subsidiaries of the
Company. The internal auditor, a member of the Man-
agement Board of the Company or a procurator or a
person performing an audit of the Company shall not be
a member of the Audit Committee.
At least two of the members of the Audit Committee
shall be experts in accounting, finance or law. The cri-
teria of independency and eligibility requirements to be
appointed a member of the Audit Committee are de-
termined in the Regulations of the activity of the Audit
Committee.
The term of office of the Audit Committee shall be 4
(four) years. An uninterrupted term of office of a mem-
ber of the Audit Committee shall be no longer than 12
years. A member of the Audit Committee shall have the
right to resign upon submitting before 10 days written
notice to the Supervisory Board. The Supervisory Board
shall have the right to recall one or all the members of
the Audit Committee should they fail to perform their
functions and/or should they no longer conform to the
requirements specified in the applicable legal acts or the
Regulations of the activity of the Audit Committee.
34
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
The principal objective of the Audit Committee is to
generate higher added value to the Company. Audit
Committee operates in accordance with the Regula-
tions approved by the General Meeting of Sharehold-
ers of the Company. The Audit Committee follows in
its activities the requirements of effective legal acts and
seeks overall implementation of the recommendations
of Corporate Governance Code, for the Companies
Listed on Warsaw Stock Exchange.
MRS. ILONA MATUSEVIČIENĖ – a chairman
of the Audit committee, independent member, does
not work at the Company.
MRS. AUŠRA ANIULYTĖ – independent
member, does not work at the Company.
The Audit Committee monitors the external audit firm
of the Company at the performance of Company’s An-
nual Report and the Annual set of the Financial State-
ments audit.
The conclusions of the Audit Committee are presented
to the Supervisory Board of the Company in accord-
ance with the requirements of the Regulations of the
Audit Committee.
The Group does not have internal audit department.
MR. ROBERTAS RATKEVIČIUS – independent
member, does not work at the Company.
Audit Committee members do not own shares of
the Company.
Members of the audit committee of the company:
35
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
2.14. INFORMATION ON COMPLIANCE WITH THE
CORPORATE GOVERNANCE CODE
The Company observes applicable legislation, the rules of the Warsaw Stock Exchange, and the
Best Practice for GPW Listed Companies 2025 (hereinafter also referred to as the “WSE Corporate
Governance Code”).
The Company intends to be as transparent as it is legally and practically possible using multilingual Company’s website.
However, due to, inter alia, differences between Polish and Estonian corporate law the Company does not comply with
the following rules of the WSE Corporate Governance Code:
1.5. Companies disclose at least on an annual basis the
amounts expensed by the company and its group in support
of culture, sports, charities, the media, social organizations,
trade unions, etc. If the company or its group have such ex-
penses in the reporting year, the disclosure presents a list of
such expenses. Company does not publish the information
about the amounts expensed in support of culture, sports,
charities, the media, social organisations, trade unions, etc.
2.1. Companies should have in place a diversity policy appli-
cable to the management board and the supervisory board,
approved by the supervisory board and the general meeting,
respectively. The diversity policy defines diversity goals
and criteria, among others including gender, education, ex-
pertise, age, professional experience, and specifies the target
dates and the monitoring systems for such goals. With regard
to gender diversity of corporate bodies, the participation of
the minority group in each body should be at least 30%. The
Company does not have a formal diversity policy, it does not
apply any limitations to the diversity of its bodies and makes
every effort to ensure diversity in bodies in all areas, also in
terms of gender. The selection criteria for performing func-
tions in the Company’s bodies are the competences, experi-
ence, education as well as time and organizational capacity of
the candidate for a given function.
2.2. Decisions to elect members of the management board
or the supervisory board of companies should ensure that
the composition of those bodies is diverse by appointing
persons ensuring diversity, among others in order to achieve
the target minimum participation of the minority group of
at least 30% according to the goals of the established diver-
sity policy referred to in principle 2.1. As at the date of this
report, the Company does not have a diversity policy with
regard to the Management Board and Supervisory Board of
the Company. The most important selection criteria are the
competences of the members of the Management Board and
the Supervisory Board. The Company is not able to appoint
candidates for positions in governing bodies and to influence
the decisions of the Shareholders and the Supervisory Board
of the Company.
2.3. At least two members of the supervisory board meet
the criteria of being independent referred to in the Act of 11
May 2017 on Auditors, Audit Firms and Public Supervision,
and have no actual and material relations with any sharehold-
er who holds at least 5% of the total vote in the company.
However, taking into consideration that following the Stat-
utes of the Company the Supervisory Board is comprised
of three to five members, depending on circumstances, the
Company does not rule out proposing to the General Meet-
ing to elect two independent members to the Supervisory
Board in the future.
2.11.5. Assessment of the rationality of expenses referred
to in principle 1.5.
2.11.6. Information regarding the degree of implementation
of the diversity policy applicable to the management board
and the supervisory board, including the achievement of goals
referred to in principle 2.1. The Company does not have a
formal diversity policy with respect to the Management
Board and Supervisory Board of the Company.
3.4. The remuneration of persons responsible for risk and
compliance management and of the head of internal audit
should depend on the performance of delegated tasks rather
than short-term results of the company. The Company does
not have separate units responsible for this scope of tasks
that would be remunerated on this account.
3.5. Persons responsible for risk and compliance manage-
ment report directly to the president or other member of
the management board. The Company has no separate units
responsible for the scope of tasks described in principle 3.5.
3.6. The head of internal audit reports organizationally to
the president of the management board and functionally to
the chair of the audit committee or the chair of the supervi-
sory board if the supervisory board performs the functions
of the audit committee. The Company has no separate units
responsible for the scope of tasks described in principle 3.6.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
3.7. Principles 3.4 to 3.6 apply also to members of the com-
pany’s group which are material to its activity if they appoint
persons to perform such tasks. Among the entities from the
Company’s group, no persons were appointed to perform
the tasks referred to in principles 3.4. - 3.6.
4.1. Companies should enable their shareholders to partici-
pate in a general meeting by means of electronic communica-
tion (e-meeting) if justified by the expectations of sharehold-
ers notified to the company, provided that the company is in
a position to provide the technical infrastructure necessary
for such general meeting to proceed. Company does not rule
out applying thereof in the future whenever the shareholders
submit such request, provided that it has sufficient technical
conditions, in particular ensuring technical and legal security.
4.3. Companies provide a public real-life broadcast of the
general meeting. The Company will consider the possibility of
broadcasting the general meeting, provided that it has suffi-
cient technical conditions, in particular ensuring technical and
legal security.
4.9.1. Candidates for members of the supervisory board
should be nominated with a notice necessary for sharehold-
ers present at the general meeting to make an informed de-
cision and in any case no later than three days before the
general meeting; the names of candidates and all related doc-
uments should be immediately published on the company’s
website; Candidates for members of the Supervisory Board
may be put forward by shareholders during a general meeting
containing an item on the agenda regarding the appointment
of supervisory board members.
4.9.2. Candidates for members of the supervisory board
make a declaration concerning fulfilment of the requirements
for members of the audit committee referred to in the Act of
11 May 2017 on Auditors, Audit Firms and Public Supervision
and having actual and material relations with any shareholder
who holds at least 5% of the total vote in the company. The
Company is established in Estonia and it follows Estonian law
when concerning fulfilment of the requirements for members
of the Supervisory Board.
4.11. Members of the management board and members of
the supervisory board participate in a general meeting, at the
location of the meeting or via means of bilateral real-time
electronic communication, as necessary to speak on mat-
ters discussed by the general meeting and answer questions
asked at the general meeting. The management board pre-
sents to participants of an annual general meeting the finan-
cial results of the company and other relevant information,
including non-financial information, contained in the financial
statements to be approved by the general meeting. The man-
agement board presents key events of the last financial year,
compares presented data with previous years, and presents
the degree of implementation of the plans for the last year.
Only members of the Management Board participate in the
general meeting.
2.14. INFORMATION ON COMPLIANCE WITH THE
CORPORATE GOVERNANCE CODE
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025 Management report
2.15. REMUNERATION REPORT
The management remuneration is set based on the long-term objectives of the Group, considering
the financial results of the Group and the legitimate interests of investors and creditors.
The remuneration of the management in respect of the financial year 2025 was granted without derogation. The
Group‘s management remuneration amounted to EUR 759 thousand in 2025 (EUR 218 thousand in 2024). Manage-
ment remuneration increased due to increased number of board members in 2025.
SUSTAINABILITY
STATEMENT
39
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
39
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
BP-1 – General basis for preparation of sustainability
statements
BP-2 – Disclosures in relation to specific circumstances
In this report the Group applies ESRS, ensuring that all indicators are presented in accordance with
ESRS requirements.
ABOUT THE REPORT
This section presents the Sustainability Statement
(hereafter - Sustainability Report and/or report) of the City
Service SE group of companies (hereinafter - City Service;
the Group), prepared in accordance with the Corporate
Sustainability Reporting Directive (CSRD) and the
European Sustainability Reporting Standards (ESRS). The
Sustainability Report covers the 2025 reporting period.
The scope of consolidation of sustainability information is
the same as that of financial statements.
Time horizons
City Service has not deviated from the short, medium
or long-term horizons defined by ESRS, which are: short
term - up to 1 year, medium term - 2-5 years, long term -
more than 5 years.
Value chain estimation
The measurement methodology used to calculate Scope
3 GHG emissions and the level of accuracy is provided
in section E1 Climate Change. Relevant assumptions,
measurement uncertainties, and judgements related
to quantitative metrics are disclosed where applicable
alongside Scope 3 disclosures E1-6. The Group plans to
explore opportunities to enhance the accuracy of metrics
based on indirect data sources in the future.
No other indicators include data from the upstream or
downstream value chain.
The Sustainability Report provides information of the
Group’s performance and aims in environmental, social and
governance areas covering the Group’s direct operations
and the upstream and downstream value chain. The
group used the option provided by the ESRS to withhold
confidential information related to the standard disclosure
requirements on the S1 topic - Adequate Wages.
Sources of estimation and outcome uncertainty
There are no quantitative metrics and monetary amounts
disclosed in the report that are subject to a high level of
measurement uncertainty. In cases where any level of
uncertainty exists, it is clearly explained alongside the
relevant metric, including the assumptions, approximations,
and judgments applied in the measurement process, to
ensure transparency and accuracy in reporting.
No metrics in this report have been confirmed by an
external body other than the sustainability report limited
assurance provider.
Changes in preparation or presentation of
sustainability information
As this is the second year in which the Group applies
the ESRS standards, the approach to the preparation and
presentation of the sustainability information remains
consistent with the prior reporting period. No significant
changes were made to the structure, methodology, or
presentation of the sustainability report compared to the
previous year.
40
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
40
Reporting errors in prior periods
There were no material reporting errors identified in the
prior reporting period.
Use of phase-in provisions in accordance with
Appendix C of ESRS 1
Annex C of ESRS 1 provides for transitional provisions
allowing certain disclosure requirements to be phased in
and omitted during the initial years of ESRS application.
In accordance with the Quick Fix Directive, undertakings
are permitted to continue applying these transitional
exemptions for an additional two-year period. Accordingly,
the Group continues to apply these exemptions and has
not disclosed information under SBM-1 points 40(b) and
40(c), SBM-3 point 48(e), E1-9, S1-7, S1-13, and S1-14
points 88(d) and 88(e).
In addition, the Group has applied the transitional
exemption from disclosures under the S2 Workers in the
Value Chain standard. However, the management principles
related to this topic are disclosed in accordance with the
requirements of ESRS 2 in the chapter S2 Workers in the
Value Chain.
Disclosures stemming from other legislation
or generally accepted sustainability reporting
pronouncements
This sustainability report includes the information
requirements set forth in Article 8 of Regulation
(EU) 2020/852 (Taxonomy Regulation). The report
also includes all other applicable sustainability-related
disclosure requirements in accordance with the national
legislation and regulatory frameworks of Lithuania, Latvia,
and Estonia.
Disclosures incorporated by reference Where they are disclosed in the report
BP-2 10 (b), (c), (d) E1-6
BP-2 11 (b.i), (b.ii) E1-6
E1 GOV-3 13 ESRS 2 GOV-3
E1 IRO-1, E2 IRO-1, E3 IRO-1, E4 IRO-1, E5 IRO-1, G1 IRO-1 ESRS 2 IRO-1
MDR-P - entity-specific sub-topic: Energy efficiency for society and
customers
E1-2
E1-2 MDR-P
Partly covered in Minimum disclosure requirements; Sustainability
Policy (MDR-P)
S1 SBM 2 ESRS 2 SBM-2
S1 SBM-3 14 (d) ESRS 2 SBM-3
S1-1 20 (b) S1-2
S1-4 38 (d), AR 42 S1-5
S1-5 46 ESRS 2 SBM-1
S2 SBM-2 ESRS 2 SBM-2
S4 SBM-2 ESRS 2 SBM-2
G1 GOV-1 ESRS 2 GOV-1
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Incorporation by reference
41
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
GOV-1 – The role of the administrative, management and
supervisory bodies (G1 GOV-1)
SUSTAINABILITY
GOVERNANCE
The Group’s administrative, management, and supervisory
bodies are as follows:
● Supervisory Board: 2 non-executive members.
● Management Board: 6 executive members. The
Management Board members do not hold any shares
in the Group.
● Chief Operating Officer (COO).
The aforementioned members have extensive expertise
in building management and administration, cleaning
services, and energy efficiency. Their in-depth knowledge
of the Group’s operations in the Baltic region (Lithuania
and Latvia) ensures a strong understanding of the local
regulatory and market dynamics.
Gender distribution:
● Supervisory Board: 100% male; gender diversity ratio
– 0:2.
● Management Board: 83% male, 17% female; gender
diversity ratio – 1:5.
● COO: 100% female.
There are no employee representatives among the
administrative, management, or supervisory bodies. There
are no independent members on the Supervisory Board.
More information on the administrative, management, and
supervisory bodies is provided in the Management Report
section: Company’s Supervisory Board and Management
Board.
Sustainability governance processes
During the reporting period, the Group formally defined
and embedded its sustainability governance processes
through the approval of the Sustainability Policy. The
roles, responsibilities, and management and oversight
arrangements related to sustainability are clearly established
and are described in the table below. These responsibilities
are directly reflected in the Sustainability Policy, which
serves as the primary document defining sustainability-
related mandates, roles and oversight arrangements across
the Group.
42
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
FUNCTION / ROLE RESPONSIBILITIES
Management Board Member
responsible for the Baltic State
● Defines and oversees the Group’s sustainability (ESG) strategy,
strategic priorities, and objectives.
● Approves sustainability-related policies and key strategic
decisions.
● Oversees the implementation of the sustainability strategy at
Group level.
● Ensures prioritisation of key sustainability impacts, risks,
and opportunities (IROs), including oversight of the double
materiality assessment process.
● Approves sustainability targets, budgets, and key initiatives.
● Reviews and approves the Group’s sustainability reports and
conducts annual reviews of progress against sustainability targets
and ESRS requirements.
● Participates in sustainability-related meetings and promotes the
development of a sustainability culture across the Group.
Chief Operating Officer (COO)
● Oversees day-to-day sustainability-related matters across the
Group.
● Coordinates the implementation of sustainability policies and
action plans.
● Ensures the integration of sustainability practices and targets
into operational and strategic decisions, including energy
efficiency initiatives and emission reduction targets.
● Together with the Sustainability Officer, oversees the
identification, assessment, and prioritisation of sustainability
impacts, risks, and opportunities (IROs).
● Participates in scheduled sustainability discussion meetings and
provides regular updates to the Management Board Member
responsible for sustainability oversight.
Sustainability Officer (Person Responsible
for the Sustainability Process)
● Organises sustainability meetings and prepares agendas as
required.
● Prepares sustainability KPI analyses, progress reviews, and data
reports.
● Coordinates the double materiality assessment process and
supports the monitoring of material IROs.
● Ensures the collection, consistency, and consolidation of data for
sustainability reporting.
● Coordinates the preparation of the annual sustainability report
in line with ESRS requirements.
Group Business Unit Heads
● Integrate sustainability principles into business operations,
services, and product development.
● Ensure implementation of sustainability objectives at operational
and client levels.
● Participate in sustainability-related investment and business
development decisions.
● Monitor sustainability performance indicators within their
business areas and initiate corrective actions where necessary.
● Participate in sustainability meetings and represent business unit
perspectives.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
FUNCTION / ROLE RESPONSIBILITIES
Chief Financial Officer (CFO)
● Ensures integration of sustainability objectives and indicators
into budgeting, financial planning, and resource allocation
processes.
● Incorporates sustainability KPIs into periodic financial and
management reporting to support informed decision-making.
Human Resources Manager
● Ensures employee well-being, diversity, and inclusion.
● Oversees occupational health and safety practices and
employee-related sustainability initiatives.
Business Support Manager (Procurement)
● Integrates sustainability criteria into supplier evaluation and
selection processes.
● Implements and oversees the sustainable procurement policy.
Person Responsible for Transport Management
● Manages transport-related emissions and supports the
achievement of emission reduction targets.
● Ensures the sustainability and efficiency of the vehicle fleet.
Person Responsible for Asset Management
● Oversees initiatives to improve energy efficiency and
environmental performance in managed buildings and
equipment.
Head of Legal Department
● Ensures compliance with sustainability-related regulatory and
legal requirements.
● Oversees data protection and compliance with applicable
privacy regulations.
Head / Responsible Person
for Occupational Health and Safety
● Coordinates the implementation of occupational health and
safety measures across the Group.
● Oversees occupational risk assessments and preventive action
plans.
● Contributes to the creation of a safe and sustainable working
environment.
Head of IT Department
● Supports the collection, management, and analysis of
sustainability-related data.
● Oversees the maintenance and development of sustainability
data management systems.
Responsibilities of the Management Board
In addition to the sustainability governance structure
described above, the Group applies formal internal control
and risk management mechanisms to support the effective
management and oversight of sustainability-related
impacts, risks, and opportunities (IROs).
Risk assessments across business areas are coordinated
centrally in line with the ISO 31000 risk management
standard to ensure a consistent approach at Group level.
Sustainability risks are integrated into the Group’s overall
risk management framework and are addressed through
established internal control standards, including ISO 14001
and ISO 45001.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Sustainability Expertise
City Service’s administrative, management, and supervisory
bodies comprise members with a diverse range of skills
and expertise directly related to the Group’s material
sustainability impacts, risks, and opportunities:
● One of the Management Board Members responsible
for the Baltic countries has extensive experience in
environmental management and energy efficiency,
gained over many years of managing Group companies.
● The Group Managing Director possesses expertise
in corporate governance and regulatory compliance,
ensuring alignment with ESG reporting frameworks.
● The Group’s business executives have specialised
knowledge in real estate management and engineering,
which are crucial for addressing sustainability risks and
opportunities in the building maintenance sector.
● The management bodies have hands-on experience
in implementing sustainability projects such as smart
building solutions.
● Governance-related competencies are primarily
concentrated within the Management Board and the
COO, while social sustainability expertise resides at
the business unit leadership level.
The administrative, management, and supervisory bodies
collectively leverage their expertise to formulate policies
and strategies, while also consulting with third-party
sustainability experts to remain informed about emerging
risks, opportunities, and best practices. Designated
employees attend annual workshops on sustainability
reporting, climate risk management, and regulatory
developments to enhance their knowledge.
Independent consultants specialising in sustainability
strategy and reporting assist Group’s management bodies
in:
● Ensuring compliance with regulatory requirements.
● Conducting materiality assessments and reporting in
accordance with ESRS frameworks.
● Providing guidance on the calculation and management
of Scope 1, 2, and 3 emissions.
Their expertise helps the Group align with evolving
sustainability standards and enhance transparency in ESG
reporting.
City Service ensures that the expertise of its governing
bodies remains directly relevant to the Group’s core
sustainability priorities, including:
● Managing energy efficiency initiatives in buildings.
● Reducing carbon emissions through operational
improvements.
● Addressing regulatory risks related to ESG
compliance.
45
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Sustainability-related IROs, such as climate change impacts,
regulatory compliance, and energy efficiency trends, are
integrated into the Group’s strategic planning process.
The Management Board and executive managers actively
incorporate sustainability considerations into decision-
making processes, including major transactions and risk
management. Key areas of focus include:
● Balancing trade-offs:
● Aligning economic performance with sustainability
commitments.
● Implementing energy-saving measures while
minimizing operational disruptions.
● Prioritizing long-term value creation, even when
requiring higher initial investments, such as
transitioning to renewable energy.
● Major transactions: When acquisitions occur, the same
sustainability objectives and requirements set for City
Service apply to the acquired companies, ensuring
consistency in ESG commitments.
● Corporate strategy alignment: The management team
ensures that the Group’s strategic initiatives reflect
long-term sustainability priorities and stakeholder
expectations.
Material impacts, risks, and opportunities
addressed during the reporting period
During the reporting period, the administrative,
management, and supervisory bodies of City Service
have specifically addressed the following key sustainability
matters (IROs) listed in the table below.
GOV-2 – Information provided to and sustainability
matters addressed by the undertaking’s administrative,
management and supervisory bodies
The COO holds quarterly meetings with the Management Board to discuss key sustainability issues
and risks. These updates cover identified impacts, risks, opportunities, and the effectiveness of
policies, actions, metrics, and targets.
SUSTAINABILITY MATTER ADDRESSED
ADMINISTRATIVE, MANAGEMENT,
AND SUPERVISORY BODIES
ESG discussion following the Sustainability Report audit Management Board Member responsible for the Baltic States; COO
Group business continuity plan; Group policies, procedures, and
strategies; readiness for the 2025 sustainability report audit
COO; Director of SKOLOS LT, UAB; Head of Legal Department;
Human Resources Manager (Lithuania); Sustainability Officer; Busi-
ness Support Manager (Procurement); Head / Responsible Person for
Occupational Health and Safety; Person Responsible for Transport
Management; Person Responsible for Asset Management
Sustainability action plan and actions review COO; Director of SKOLOS LT, UAB; Head of Legal Department;
Human Resources Manager (Lithuania); Sustainability Officer; Busi-
ness Support Manager (Procurement); Head / Responsible Person for
Occupational Health and Safety; Person Responsible for Transport
Management; Person Responsible for Asset Management
Sustainability risk assessment Business Support Manager (Procurement); Sustainability Officer
Approval of sustainability risks COO; Business Support Manager (Procurement); Sustainability Of-
ficer
Approval of the sustainability questionnaire for partners Business Support Manager (Procurement); Sustainability Officer
Sustainability status review Management Board Member responsible for the Baltic States; COO
Sustainability status and action plan reviews COO; Director of SKOLOS LT, UAB; Head of Legal Department;
Human Resources Manager (Lithuania); Sustainability Officer; Busi-
ness Support Manager (Procurement); Head / Responsible Person for
Occupational Health and Safety; Person Responsible for Transport
Management; Person Responsible for Asset Management
46
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
SUSTAINABILITY MATTER ADDRESSED
ADMINISTRATIVE, MANAGEMENT,
AND SUPERVISORY BODIES
NPS management sessions COO; CFO; Human Resources Manager (Lithuania); Regional Manag-
ers; Group Business Unit Heads
Transition plan preparation review COO; Director of UAB SKOLOS LT; Head of Legal Department;
Human Resources Manager (Lithuania); Sustainability Officer; Busi-
ness Support Manager (Procurement); Head / Responsible Person for
Occupational Health and Safety; Person Responsible for Transport
Management; Person Responsible for Asset Management
Transition plan preparation review (operational level) Sustainability Officer; Business Support Manager (Procurement);
Head / Responsible Person for Occupational Health and Safety; Per-
son Responsible for Transport Management; Person Responsible for
Asset Management
Data collection for the sustainability report COO; Project Manager (Latvia); Sustainability Officer; Head of Legal
Department (Latvia); Human Resources Manager (Latvia); CFO (Lat-
via); Customer Service Specialist
ESG status review Management Board Member responsible for the Baltic States; COO;
Business Management Director; Commercial Director
Taxonomy data review COO; CFO; Sustainability Officer; Financial Controller
ESG strategic aspects review Management Board Member responsible for the Baltic States; COO
GOV-3 – Integration of sustainability-related performance
in incentive schemes (E1 GOV-3)
The current remuneration policy for members of City Service’s administrative, management and supervisory bodies
does not contain specific provisions on sustainability issues. Currently, incentive schemes and performance-related
remuneration are focused on financial and performance indicators including revenue growth, cost efficiency and per-
formance targets.
Certain elements of sustainability due diligence are ap-
plied within the Group companies. The key due diligence
aspects and steps outlined in ESRS 1, Section 4 “Due
GOV-4 - Statement on due diligence
The Group is not subject to legal requirements regarding comprehensive sustainability due diligence
and has not implemented a dedicated due diligence system. However, the Group continuously
assesses potential negative impacts within its operations and value chain, takes measures to prevent
them, and is committed to cooperating in remedying adverse impacts if it causes or contributes to
them.
Diligence”, relate to several horizontal and thematic dis-
closure requirements under the ESRS framework (see a
table below).
47
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Key elements of due diligence (GOV-4)
CORE ELEMENTS OF DUE DILIGENCE
DISCLOSURES IN THE SUSTAINABILITY
STATEMENT
a) Embedding due diligence in governance,
strategy and business model
GOV-1
GOV-2
GOV-3
SBM-3, E1 SBM-3, S1 SBM-3, S2 SBM-3, S4 SBM-3, G1 SBM-3
b) Engaging with affected stakeholders in all
key steps of the due diligence
GOV-2
SBM-2
IRO-1
S1-2
S4-2
c) Identifying and assessing adverse impacts
SBM-3, E1 SBM-3, S1 SBM-3, S2 SBM-3, S4 SBM-3, G1 SBM-3
IRO-1
E1-2
S1-1
S2 Workers in the value chain
S4-1
G1-1
d) Taking actions to address those adverse impacts
E1-3
S1-4
S2 Workers in the value chain
S4-4
G1-1
e) Tracking the effectiveness of these efforts
and communicating
E1-4
S1-2
S1-5
S2 Workers in the value chain
S4-2
S4-5
G1-4
48
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
GOV-5 - Risk management and internal controls over
sustainability reporting
The Group has established a structured and formalised sustainability reporting process supported by
internal controls to ensure the accuracy, completeness, consistency, and traceability of sustainability
information.
Sustainability reporting risks (completeness, accuracy and timeliness) are managed as part of the Group’s overall governance
and internal control framework, described in the table below.
Role / Function Key responsibilities
Sustainability Committee / Management
● Sets strategic direction and sustainability objectives.
● Approves sustainability targets and allocates resources.
● Reviews and approves the final sustainability report.
Person responsible for the sustainability process
● Acts as the central coordinator of the sustainability reporting
process.
● Organises and oversees data collection across the Group.
● Performs quality checks and consistency reviews.
● Prepares draft versions of the sustainability report.
● Ensures effective communication among all involved functions.
Department heads / Data owners
● Collect sustainability-related data within their areas of
responsibility (e.g. HR, operations, finance, logistics).
● Ensure the accuracy, completeness, and reliability of the data
provided.
● Submit data and supporting information to the sustainability
coordinator.
Communications Department
● Supports the design, layout, and narrative development of the
sustainability report.
● Coordinates publication and external communication of the
report.
External auditor
● Acts as an independent third party providing limited assurance
over sustainability information and disclosures.
Roles and responsibilities in the sustainability reporting process
49
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Key stages in the sustainability reporting process
The sustainability reporting process is carried out through
the following key stages:
● Preparation and planning. The scope of reporting,
applicable standards, and responsibilities are defined
and aligned with the Group’s sustainability strategy
and regulatory requirements.
● Data collection. Sustainability-related quantitative
and qualitative data is gathered across business units
using consistent approaches and clearly assigned data
ownership.
● Data consolidation and quality control. Plausibility
checks, consistency reviews, and comparisons with
prior periods are performed to identify potential
gaps or inconsistencies. Identified issues are clarified
and corrected in cooperation with the relevant data
owners.
● Analysis and report drafting. Consolidated data is
analysed, key trends and progress are assessed, and
the sustainability narrative is prepared in line with
ESRS requirements.
● Internal review and approval. Factual validation by
responsible departments and strategic review by
management are completed to ensure accuracy,
completeness, and alignment with the Group’s
objectives.
● Independent limited assurance and publication.
Sustainability information is subject to limited
assurance and is subsequently approved and published.
To ensure data integrity and minimise discrepancies,
sustainability data from various departments, including
operations, procurement, and human resources, is
centrally consolidated in a dedicated SharePoint platform.
City Service is also exploring AI-driven solutions to further
streamline sustainability data collection in the coming years.
These innovations are aimed at simplifying the process and
reducing the risk of errors, ultimately enhancing the quality
and reliability of future sustainability reports.
50
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Main areas of activities include:
● Administration of apartment buildings.
● Management of commercial building facilities.
● Maintenance and cleaning of territories.
● Other activities (e.g. premises rental).
The Group’s business model is focused on providing high-
quality services to owners of residential, commercial
and public buildings in Lithuania and Latvia. The Group
continuously implements convenient digital tools for
clients in its operations, leveraging artificial intelligence
and expert knowledge, with particular attention paid to
energy resource savings in both commercial and residential
buildings.
In addition to its core operations, the Group is also
involved in building renovation, gas station maintenance,
and provides debt management services.
The main City Service customer groups are:
● Residents (inhabitants of multi-apartment buildings),
who receive building administration, maintenance,
renovation, and cleaning services.
● Business clients, such as owners or tenants of
office, commercial, and industrial properties, who
are provided with engineering system maintenance,
energy solutions, and cleaning services.
● Public sector entities - public institutions that are
offered engineering system maintenance, energy
solutions, and cleaning services.
At the end of the reporting period the Group had 1 324
employees in Lithuania and 157 in Latvia – a total of 1 481
employees by headcount.
For the 2025 reporting period, no significant changes
were recorded in relation to the services or product range
provided by the City Service Group. The Group continued
its core activities. More detailed information about the
Group’s activities is available in the Annual Report.
Key sustainability directions and goals
The table below outlines the main directions and goals
of the Group’s sustainable development, and performance
in 2025, aligned with its overall business strategy through
2025–2027.
The Group’s strategy will further define its sustainability
priorities and address key environmental and social
challenges in the years ahead. To enable effective
implementation, the Group plans to empower its teams
through several measures: allocating a dedicated budget
for sustainability initiatives, assigning new responsibilities
across relevant functions, enhancing internal competencies,
and expanding the sustainability team to strengthen
execution capacity.
The Group recognises that the adoption and
implementation of a climate Transition Plan will be a
key sustainability challenge in the coming years. This will
require setting science-based GHG reduction targets,
aligning investments and operations with those targets
and integrating transition-related considerations into core
business decisions.
SBM-1 – Strategy, business model and value chain
City Service operates in the Baltic region (Lithuania and Latvia). The Group is active in the building
management sector: the core activity of the Group of companies is focused on the comprehensive
maintenance of apartment buildings as well as commercial, public, and industrial properties.
STRATEGY, BUSINESS MODEL
AND VALUE CHAIN
51
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Sustainabil-
ity pillar
Directions
(policy
objectives)
Indicators Goals Results 2024 Results 2025
Environment
Climate impact and
GHG emissions re-
duction (in line with
Paris Agreement and
EU Green Deal)
GHG emis-
sions (Scope
1, 2 & 3)
Set GHG emissions reduction
targets and adopt a Transition
Plan until 2028.
Calculated Scope 1, 2 &
3 emissions.
Calculated Scope 1, 2 &
3 emissions.
Transition Plan is under
development.
Social area
Employee health &
safety
Recordable
work-related
incidents
Zero recordable incidents.
Fatal incidents – 0;
Severe incidents – 0;
Minor incidents – 17.
Fatal incidents – 1
1
;
Severe incidents – 0;
Minor incidents – 16.
Employee well-
being, fair remunera-
tion, and engage-
ment in company
activities
Employee
Engagement
Surveys
(incl. eNPS
- Employee
Experience
Survey
Employee net promoter score
– minimum values:
50.6 in 2025,
52.7 in 2026 and
55 in 2027.
48.7 51.1
Continuous
employee skills
development
No specific
indicator set
yet.
No specific target set. No specific target set. Not available yet
Client experience
and satisfaction
Net Pro-
moter Score
• Net Promoter Score –
minimum values 2025–
2027:
• 15 at “Mano Bustas”
• 50 in the CS engineering
business
• 25 in the CS cleaning
business
• 15 in the Latvian business
• -19.1 at “Mano
Bustas”
• 61 in the CS engi-
neering business
• Not yet measured
in the CS cleaning
business
• -44 in the Latvian
business2
• 20.4 at “Mano
Bustas”
• 71 in the CS engi-
neering business
• Not yet measured
in the CS cleaning
business
• -25 in the Latvian
business2
Personal data pro-
tection (in line with
GDPR)
Major data
protection
incidents
Monitoring of personal data
protection incidents with the
aim of maintaining zero major
incidents (ongoing target).
0 0
3
Governance
Ethical business,
anti-corruption, and
transparency
Confirmed
breaches
of business
ethics/cor-
ruption
0 confirmed breaches of busi-
ness ethics/corruption (ongo-
ing target).
0 0
1
The incident refers to a severe criminal act that occurred during the course of work-related activities.
2
The results vary significantly as different business units began measuring NPS at different times. Improvements are planned to enhance and standardise the measurement process going forward.
3
In 2025, five minor incidents were recorded, defined as isolated cases with very limited effect. No major incidents, such as large-scale data exposure (e.g., recipient lists exceeding 100 individuals or
disclosure of sensitive data), were registered during the year.
Sustainability is an integral part of the Group’s strategy,
reflected in its services, stakeholder relationships, and
long-term goals across key markets. In the commercial
services segment, the Group provides solutions focused
on improving energy efficiency, reducing electricity and
heating costs, and enhancing indoor air quality. For pri-
vate customers, the Group contributes to the renovation
of residential buildings, aiming to increase their energy
performance and overall property value.
In Lithuania, the Group seeks to supply green electric-
ity - specifically wind power - for the common areas of
apartment buildings, supporting the broader shift toward
renewable energy sources.
Since 2023, City Service Cleaning business has adopt-
ed a policy to actively use only environmentally friendly
cleaning products that are certified for their ecological
credentials (e.g., EcoLabel). The Group promotes the
use of biodegradable and eco-certified cleaning agents
wherever possible. Clients are offered sustainable prod-
uct options, with the flexibility to select what best suits
their specific needs. In exceptional cases, such as when
dealing with more persistent or complex cleaning chal-
lenges, non-ecological products may still be used to en-
sure effective results, although such use is minimised and
carefully considered.
52
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Description of the business model and value chain
Upstream value chain Group’s activities
Downstream
value chain
Activity
• Various goods and services
(from external suppliers)
• Hire of equipment/means
• Transport services
• Administration of apartment buildings
• Commercial building management
• Cleaning and maintenance of premises and grounds
• Artificial intelligence solutions for building management
• Maintenance and repair of engineering systems
• Energy management and renovation
• Technical and energy audits of buildings
• IT services
• Petrol station maintenance services
• Debt management services
• Premises rental
• Use of build-
ings/facilities/
areas
Location
Contractors (partners): Lithu-
ania, Latvia
Suppliers (Tier 1): EU
Suppliers (Tier 2 and beyond):
global
Lithuania, Latvia Lithuania, Latvia
Stakeholders
and key
business actors
• Investors (shareholders)
• Municipalities and other
public authorities, regula-
tory authorities
• Suppliers and partners (incl. contractors). Value chain employees
• Customers (residents, commercial and public building owners, incl. communities)
Sustainability standards are also embedded in supplier
relationships. The Group previously followed a Supplier
Code of Conduct, which has since been enhanced and
expanded. As of 2024, all new contracts with partners
include mandatory compliance with the updated Code of
Conduct, supported by contractual annexes. In addition,
during 2025 the Group conducted a partner survey to
assess suppliers’ and business partners’ approaches to sus
-
tainability, awareness of ESG principles, and alignment with
the Group’s expectations. The results of this engagement
support the further development of supplier sustainability
management practices and dialogue with partners.
Inputs
City Service operates in the building management sec-
tor, with a focus on residential, commercial, industrial,
and public properties. The Group’s business model is
built on reliable inputs such as skilled human resources
and advanced technological solutions (including AI). To
ensure long-term value creation, the Group collaborates
with suppliers who comply with EU standards, fostering
durable partnerships through long-term contracts. The
supply chain is diversified to reduce geopolitical and eco-
nomic risks, and continuous employee training ensures
high service quality and technological adaptability.
Outputs and outcomes
The Group’s outputs are integrated building management
services aimed at increasing energy efficiency, reducing
operational costs, and improving the living and work-
ing environment for clients. Services include engineering
system maintenance, energy audits, renovation projects,
cleaning, emergency services, and public space upkeep.
For customers, these services translate into cost savings,
increased comfort, and access to modern, energy-effi-
cient buildings.
For investors, long-term service contracts ensure steady
revenue streams and reduce operational risks.
For society, the Group’s work supports environmental
goals, particularly CO₂ reduction, and contributes to im-
proved urban quality of life.
53
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
The table below lists the Group’s key stakeholders, the
methods of their engagement, the most important topics,
and a brief explanation of how the Group incorporates
stakeholder opinions and interests into its business model
and strategy. These aspects are described in more detail
throughout the report in the relevant topic-specific
sections.
The main stakeholders are groups for whom the Group’s
activities are particularly relevant and/or have a significant
impact, as well as individuals and organisations that have
substantial influence on the Group itself. The content of
the Sustainability Report is prepared with consideration
of the views, needs, and expectations of all the key
stakeholders.
The administrative, management and supervisory bodies
are regularly informed about the views and interests of
stakeholders concerning the Group’s sustainability-related
impacts through regular meetings, strategy sessions, etc.
SBM-2 – Interests and views of stakeholders (S1 SBM-2, S2
SBM-2, S4 SBM-2)
City Service’s stakeholder engagement processes are designed to ensure that the needs, expectations
and concerns of all stakeholders are heard and appropriately reflected in the Group’s activities.
STAKEHOLDER
ENGAGEMENT
54
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Stakeholder engagement overview
Key
stakeholders
Category Methods of engagement
Key concerns /
expectations
How the Group takes
into account the con-
cerns and expectations
of stakeholders
Employees
Affected
stakeholders
• Employee opinion survey
(eNPS)
• Employee meeting (con-
ference)
• Internal communication
channels
• Employee well-being, fair re-
muneration, and engagement
in company activities
The Group takes active
ongoing measures to improve
employee well-being, engage-
ment, and improve remu-
neration system
Customers
(residents,
commercial and
public building
owners, incl.
communities)
Affected
stakeholders
• Ongoing communica-
tion during provision of
services
• Information sharing via
email and website
• 24/7 customer self-
service
• Complaint platform
• App for commercial
service clients
• Sustainable solutions and
services for clients
• Competent employees
• Employee health and safety
• Responsibility and sustainabil-
ity in the service supply chain
• Innovation
• Climate impact and GHG
emissions
• Service quality
The Group actively responds
to customer needs in its day-
to-day operations to ensure
good customer experience
and satisfaction, and an over-
all high-quality of service
Municipalities
and other public
authorities,
regulatory
authorities
Users of
sustainability
information
• Direct communication
through e-mails
• All required information
is provided
• Institutions set sustain-
ability requirements
• Customer experience and
satisfaction
• Employee well-being and fair
remuneration
• Energy efficiency for the
public and clients
• Innovation
• Public education on energy
consumption
The Group complies with
regulatory requirements by
providing all necessary infor-
mation, supporting sustaina-
bility policies, promoting and
contributing to public aware-
ness on energy efficiency
Suppliers and
partners (incl.
contractors)
Value chain
employees
Affected
stakeholders
• Daily communication,
ongoing contact
• Periodic review of con-
tracts and agreements
• Supplier audits as needed
•
Regular dialogue on service
improvements, changes,
and other matters
• Supplier ESG survey
(since 2025)
• Competent employees
• Sustainable solutions and
services for clients
• Employee well-being and fair
remuneration
The Group maintains close
cooperation with suppliers
and partners while promot-
ing fair practices and ensuring
regular dialogue on service
improvements, changes and
other issues
Investors
(shareholders)
Users of
sustainability
information
• Weekly meetings
• Board meetings
• Quarterly and annual
activity reports
• Innovation
• Efficiency in resource use
• Customer experience and
employee well-being
The Group ensures transpar-
ency and accountability to
the investors
Stakeholder engagement and feedback have not indicated a
need for major changes to the Group’s strategy or business
model. The interests and expectations of stakeholders are
well aligned with the Group’s current strategic direction,
particularly in the area of service delivery and sustainability
priorities. The Group’s services are already structured to
address stakeholder needs, and no conflicting interests
have been identified.
As a result, the Group has not made and does not anticipate
any major amendments to its strategy or business model
based on stakeholder input. Accordingly, no material
changes in stakeholder relationships or perceptions are
expected in the near term.
55
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
SBM-3 - Material impacts, risks and opportunities and their
interaction with strategy and business model
DOUBLE MATERIALITY
ASSESSMENT
Double materiality matrix
The matrix below summarises sustainability topics linked to the Group’s material impacts, risks and/or opportunities
(IRO’s). The vertical axis represents impact materiality, while the horizontal axis – financial materiality. Sustainability
topics are considered material when they are related to material IRO’s through either impact or financial materiality,
or both.
Impact
materiality
High
• E1 Climate Change:
Climate impact and GHG
emissions
• S1 Own Workforce: Em-
ployee health & safety
• S1 Own Workforce:
Employee well-being,
fair remuneration, and
engagement in company
activities
• G1 Business Ethics: Ethi-
cal business, anti-corrup-
tion, and transparency
• S1 Own Workforce:
Competent employees
now and in the future
• S4 Consumers and End-
Users: Client experience
and satisfaction
Medium • S2 Value Chain Workers
• E1 Climate Change: Energy
efficiency for the public and
clients
Low
Low Medium High
Financial materiality
The table below details the Group’s material (ESRS) sus-
tainability topics, sub-topics and their relationship to ma-
terial impacts, risks/opportunities, while indicating where
they are concentrated in the value chain. The topics have
been grouped to provide a comprehensive picture and to
reveal all information that may be relevant to stakeholders.
56
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
City Service entity-specific topic / sub-topic / sub-sub-topic
positive impact actual impact risks
negative impact potential impact opportunities
Material
topic
Material
sub-topic
Material
sub-sub-topic
Material IROs Description
Value chain Time horizon
Upstream
Own
Operations
Down-
stream
Short,
medium, or
long term
E1
Climate
change
Climate change
mitigation
GHG emissions
in direct activities and
throughout the value chain
contributing to climate
change.
The Group operates in a sector classified
as high climate impact (NACE code L),
and its activities generate greenhouse
gas (GHG) emissions both directly and
across the value chain. These emissions
contribute to climate change and have
environmental and social consequences.
✓ ✓ ✓
All
Adaptation to
climate change
Transition op-
portunities
Opportunity to rein-
force the Group's image
with science-based GHG
reduction targets and
actions.
Developing science-based GHG reduction
targets and taking supportive action is
both a necessity and an opportunity
for the Group. As expectations around
corporate climate action grow, this can
help build stakeholder trust and enhance
the Group’s public image.
✓ ✓ ✓
Medium and
long term
Opportunities to
expand climate change
adaptation services (e.g.
cooling systems).
The Group already provides energy
efficiency services for residential and
commercial buildings - an essential part
of its business model. With growing client
demand, this area presents clear potential
for growth.
✓ ✓
Medium and
long term
Energy
Opportunity of fleet
renewal with electric
vehicles and other ap-
plicable energy efficiency
measures (cost reduction,
reputational benefits).
Renewing the Group’s fleet with electric
vehicles and improving energy efficiency
of office premises could help reduce
operational costs and emissions over
time. These steps may also enhance
the Group’s reputation, as clients of all
business areas increasingly value visible
sustainability efforts.
✓ ✓
Medium and
long term
Energy efficiency
for society and
customers
The Group’s energy
efficiency services con-
tribute to the EU Green
Deal’s goals of climate
change mitigation (e.g.,
building renovation, EV
charging stations).
The Group delivers services that are EU
taxonomy-eligible and/or aligned with
the EU’s climate change mitigation goals
(in both administration of apartment and
commercial buildings businesses). The
taxonomy-eligible revenue disclosures for
this reporting period are limited to EV
charging stations due to data collection
constraints. The Group plans to expand
the list of disclosed taxonomy activities
in the upcoming reporting periods. This
period’s Taxonomy KPIs can be found in
chapter EU Taxonomy disclosure.
✓ ✓
All
Opportunities to
expand climate change
mitigation and adaptation
services (e.g. cooling
systems).
The Group already provides energy
efficiency services for residential and
commercial buildings - an essential part
of its business model. With growing client
demand, this area pres
✓ ✓
Medium and
long term
S1 Own
work-
force
Working condi-
tions
Health and Safety Accidents at work
worsen workers’ physical
and emotional health and
cause financial losses.
While the Group’s business model does
not lead to elevated health and safety
risks, minor workplace accidents do
occur across all business segments. The
overall negative impact is limited, but
remains material due to its connection
to employee health and well-being. The
Group has the necessary accident preven-
tion policies and systems in place for all
its hired employees.
✓
All
Additional health-
related benefits, such
as, vaccinations, and
partnerships contribute to
the health and wellbeing of
employees.
The Group supports employee well-being
through paid health checks, vaccinations,
free psychological support (only in
Lithuania), and health-related seminars
and other measures. These measures are
continuously provided and updated when
necessary.
✓
All
Reduced worker pro-
ductivity due to injuries.
The Group’s business model does not
lead to elevated health and safety risks.
Reduced worker productivity due to
injuries is a potential risk only in the
case of a serious accident, which could
lead to increased costs, higher insurance
premiums, reputational damage or legal
action. The Group considers this risk to
be well managed.
✓
All
57
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Material
topic
Material
sub-topic
Material
sub-sub-topic
Material IROs Description
Value chain Time horizon
Upstream
Own
Operations
Down-
stream
Short,
medium, or
long term
S1 Own
workforce
Equal treatment
and opportuni-
ties for all
Training and skills
development
An engaging work en-
vironment and educational
opportunities improve the
emotional background.
The Group already provides training and
educational opportunities in key focus
areas, contributing to a more engag-
ing work environment and enhanced
employee well-being. Creating an
engaging workplace and investing in talent
development is a strategic priority for the
Group, resulting in positive impacts on
employees.
✓
All
High employee turnover
due to lack of training and
competencies.
Lack of adequate onboarding and career
development opportunities can lead
to increased employee turnover. This
risk affects all employee groups and is
particularly relevant to the Group’s busi-
ness model, which includes a significant
number of lower-skilled roles. The Group
places strong emphasis on this area in its
strategy, manages the risk on an ongoing
basis, and expects it to decrease over the
long term.
✓
Short and
medium
term
Cybersecurity training
increases awareness,
improves data protection,
and benefits employees
personally.
The Group handles a large volume of cli-
ent data, which is why employees receive
thorough training on cybersecurity -
covering both work-related and personal
safety topics. This creates a positive im-
pact not only at the organisational level
but also for employees personally.
✓
All
Improved service quality
and customer satisfaction
thanks to the growing
competencies of our
employees.
Service quality and customer satisfaction
are central to the Group’s value proposi-
tion. The Group sees opportunities to
further strengthen this across all business
segments by investing in employee
competencies. Continued strategic focus
in this area is expected to generate a
growing positive financial impact.
✓ ✓
All
Integrating AI solutions
and training employees
on their usage improves
productivity and the range
of services.
AI solutions increase
employee efficiency and
reduce workload.
AI solutions are currently being integrated
to streamline and support employee
tasks, aiming to improve efficiency with-
out replacing staff. This creates opportu-
nities for the Group and a positive impact
on employees. The focus is on reducing
workload, particularly in the commercial
and residential building segments. Ongo-
ing AI projects and investments in digitali-
sation reflect the Group’s commitment to
smarter, more efficient operations.
✓ ✓
All
Working
conditions
Adequate wages
Lack of clarity in
the remuneration system
can reduce employee
motivation.
Due to internal policies and the confi-
dential nature of the information, further
details cannot be disclosed.
✓ ✓
Short and
medium
term
An attractive
reward system promotes
employee engagement and
productivity.
While not specific to the business
model or segments, improvements to
the incentive system reflects a strategic
focus of the Group, so a potential positive
impact on employees is foreseen over the
medium to long term.
✓
Medium to
long term
Engagement/
Satisfaction
A positive organisa-
tional culture has a positive
impact on psychological
employee well-being.
Market dynamics in Lithuania and Latvia
highlight the importance of employee
engagement and well-being. The Group
actively focuses on these areas, with a
steadily increasing eNPS reflecting an
ongoing positive impact on employees.
✓
All
Employee complaints
can cause reputational and
financial damage
Employee complaints pose a potential
risk in the event of a serious complaint
that could lead to reputational or financial
damage. There are currently no formal
complaints filed with the labour dispute
commission, and this risk is not directly
driven by the Group’s business model.
✓
Short and
medium
term
Increased focus on the
well-being of unskilled
workers through engage-
ment surveys.
The Group employs a large number of
technical and maintenance staff. Enhancing
engagement with this employee group
presents an opportunity to strengthen
inclusion and organisational alignment.
This is already a priority and is expected
to be further improved over time.
✓
All
More effective internal
communication strength-
ens organisational culture.
Internal communication is a constant
area of focus, with ongoing opportunities
for improvement. It is relevant across all
business segments and reflects a broader
good practice rather than being tied to
the Group’s business model.
✓
All
58
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Material
topic
Material
sub-topic
Material
sub-sub-topic
Material IROs Description
Value chain Time horizon
Upstream
Own
Operations
Down-
stream
Short,
medium, or
long term
S2 Value
chain
workers
Working condi-
tions
Health and safety
Work-related ac-
cidents among contractors
performing tasks on behalf
of the Group.
Partners (upstream value chain workers)
operate at the Group’s client sites, making
it essential for the Group to ensure
worker health and safety. This responsibil-
ity applies equally across all business
segments and is overseen on an on-going
basis. Occupational safety is prioritised
as the most important social factor and
is explicitly addressed in partnership
agreements. Expectations are clearly
defined in the Group’s Code of Conduct
for Partners and form part of the supplier
selection process.
✓
All
S4
Consumers
and end-
users
Customer
experience and
satisfaction
Providing poor-
quality services can lead to
reputational damage and
financial losses.
Poor quality services
can lead to customer dis-
satisfaction, financial loss,
and psychological damage.
Providing high-quality services is closely
linked to the Group’s reputation, which is
critical to the continuity of its operations.
As such, service quality is managed as a
key risk and business priority across all
segments. Poor service could harm both
the Group’s reputation and its clients,
although this risk is not unique to the
Group’s business model and applies
broadly across industries.
✓
All
Disputes between
clients can lead to lengthy
and costly legal proceed-
ings.
This potential impact is most relevant to
the Group’s residential building mainte-
nance segment, which operates under
strict legal regulation and is therefore
more exposed to misunderstandings or
human error. While disputes between
customers may arise on service delivery
related matters, they are rarely the direct
result of the Group’s actions.
✓ ✓
All
Digitalisation and
24/7 self-service improve
customer experience, ac-
cessibility, and speed.
This is already a strong area of focus and a
key opportunity for further improvement,
aimed at enhancing the Group’s efficiency
and competitiveness while delivering clear
benefits to clients. It is relevant across all
business segments and projects, and is
partly driven by shareholder expectations.
A positive financial impact is expected to
materialise over the long term.
✓ ✓
All
Digitalised processes
and self-service increase
customer convenience and
satisfaction.
✓ ✓
Long term
New technologies
increase operational ef-
ficiency and competitive-
ness, strengthens the
long-term growth of
Group’s businesses
New technologies - including AI, innova-
tion, and robotics - enhance operational
efficiency and strengthen the Group’s
competitiveness. As an integral part of
the business model across all segments,
this is already a priority and presents
ongoing opportunities for continuous
improvement and long-term growth.
✓ ✓
All
Information-
related impacts
for consumers
and/or end-
users
Privacy and data
protection
Personal data
breaches can lead to
discrimination, material
and non-material damage
for clients.
While no significant incidents have oc-
curred to date, a major data breach could
negatively impact clients. This risk is linked
to the Group’s business model, which in-
volves handling personal data of individu-
als in the residential buildings segment,
and managing contractual obligations and
commercially sensitive information in the
commercial segment. The risk is expected
to decrease over time as the Group
continues to invest in cybersecurity.
✓ ✓
Short and
medium
term
Inappropriate use of
personal data may violate
the GDPR and lead to
legal consequences.
This is a general business risk not specific
to the Group’s business model.
✓ ✓
All
Increasing costs of
data protection due to
stricter laws and breach
prevention.
A large client base and upcoming legal
changes require the Group to invest
in additional security measures. More
investments are foreseen in the medium
to long term.
✓ ✓
Medium and
long term
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Material
topic
Material
sub-topic
Material
sub-sub-topic
Material IROs Description
Value chain Time horizon
Upstream
Own
Operations
Down-
stream
Short,
medium, or
long term
G1
Business
ethics
Corporate
culture
Corruption and
bribery
Corruption and non-
compliance with the law
can damage the Group’s
reputation and cause
material and psychological
damage to stakeholders.
While not directly linked to the Group’s
business model or specific segments,
ongoing prevention of negative impacts
remains essential. The likelihood of
corruption is very low and effective
prevention measures are in place. How-
ever, if such an incident were to occur,
it could have a severe and widespread
impact on employees, clients, and other
stakeholders.
✓ ✓
All
Violations of the law
(e.g., competition law or
illegal subcontracting)
can lead to financial and
reputational damage for
the Group.
This risk is more relevant in the residential
buildings segment due to stricter regula-
tion and a higher likelihood of human
error. As reputation is critical to business
continuity, the risk is actively and continu-
ously managed aiming to prevent any
cases of non-compliance, and is expected
to diminish in the long term.
✓ ✓
Short and
medium
term
Implementing good
sustainability governance
practices can enhance
Group’s image and attract
customers and partners.
As sustainability-related services (energy
efficiency improvement) are central to the
Group’s commercial building maintenance
business, growing client demand presents
clear opportunities to further strengthen
the Group’s sustainability governance and
reputation.
✓ ✓
Medium and
long term
Corruption and
bribery
Prevention and
detection includ-
ing training
The availability of a
whistleblowing channel
increases the possibility
of reporting corruption
anonymously.
The availability of an anonymous whistle-
blowing channel increases the likelihood
of reporting potential corruption. This
is considered a market best practice and
serves as a preventive measure, though
it is not directly linked to the Group’s
business model.
✓ ✓
All
Protection of
whistleblowers
Supplier rela-
tionship man-
agement
Cases where contrac-
tors fail to meet their
contractual obligations
with Group companies
(mostly in the administra-
tion of apartment buildings
business) can result in
material and psychological
harm to stakeholders.
This is a potential negative impact linked
to the Group’s business model, which re-
lies on external partners to deliver certain
services. While no such incidents have
occurred recently, the risk of harm to
clients and related stakeholders remains
and is actively managed through contrac-
tual obligations and other measures. The
likelihood for such impacts is expected to
decrease in the long term.
✓ ✓ ✓
All
Financial impact of sustainability topics
During the reporting period, the Group identified and
assessed sustainability-related risks and opportunities
across the short, medium and long term as part of its
double materiality assessment. While certain risks were
identified as potentially material, the extent of their
potential financial effects on the Group’s financial position,
performance or cash flows has not yet been assessed.
The resilience of the Group’s operations to sustainability-
related risks was assessed to the extent covered by the
double materiality assessment. In addition, the resilience of
the Group’s strategy and business model to climate change
was specifically evaluated, with the results presented in the
section Climate Risk Assessment.
60
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
The results of the DMA were reviewed and reconfirmed
for the 2025 reporting period, with no material changes
identified. While the ESRS does not prescribe a specific
methodology for conducting a double materiality assess-
ment, the Group developed a process that adheres to the
principles and guidelines outlined in ESRS 1, considering
the nature and circumstances of its operations, as well as
the established sustainability practices already in place.
The Group relies on the general requirements of ESRS
and the European Financial Reporting Advisory Group’s
(EFRAG) practical application guidance. In the material-
ity assessment, the Group considered both impact and
financial materiality and their interrelationships.
The principle of double materiality:
● A sustainability issue is considered material from
an impact perspective when it relates to an entity’s
significant actual or potential positive or negative
impacts on society or the environment, both in the
short, medium and long term. This reflects an inside-
out perspective.
● A sustainability issue is financially material when the
sustainability issue arises to risks or opportunities that
have, or could have, a significant effect on the entity’s
changes in its business activities, financial position,
financial performance, cash flows, access to finance or
cost of capital in the short, medium and long term.
This reflects an outside-in perspective.
The materiality assessment was carried out in consultation
with the external and internal experts, taking into account
the best available information at the time of the assess-
ment. It is noted that it is the first time the Group has car-
ried out a double materiality assessment, and the Group
is continuously improving its processes to identify actual
and potential IROs, and therefore the list of sustainability
matters identified in this assessment is not exhaustive, but
may be reviewed and expanded in the future.
The process of identifying and assessing material IROs
involved the managers and specialists responsible for the
activities related to the Group’s material sustainability
topics, as identified in the previous materiality assess-
ment and/or identified in the list of sustainability issues
to be included in the materiality assessment under ESRS
1, AR 16.
The company has assessed the materiality of each sus-
tainability matter individually, in accordance with the
ESRS criteria, taking into account the specificities of its
operations, sector and circumstances. The assessment of
materiality was based, to the extent possible, on objec-
tive information, expert insights and generally accepted
scientific advice. IROs have been assessed in the short,
medium and long-term, which are consistent with the
definitions of the time periods set out in ESRS.
The main steps in the assessment of the
Group’s double materiality are:
● Understanding the operational context: value chain
and business model.
● Overview of stakeholder views.
● Identification of existing and potential IROs.
● Assessment of the materiality of IROs.
● Final review and validation of the materiality of IROs.
The DMA process in 2025 was based on a review of
the DMA conducted in 2024. No separate stakeholder
engagement was carried out as part of this process; in-
stead, the assessment relied on ongoing stakeholder en-
gagement practices.
Impact materiality assessment
The impact materiality assessment has been carried out
by considering the Group’s significant actual or potential,
positive or negative impacts on people and the environ-
ment in the short, medium and long term. The material-
ity of actual negative impacts was based on the severity
of the impact, and the materiality of potential negative
impacts was based on their severity and likelihood. The
severity of impacts was determined on the basis of scale,
scope and the nature of the irreversible impacts. In as-
sessing the potential adverse impact on human rights, the
severity of the impact was considered more important
than the likelihood. The significance of positive impacts
was based on scale and scope in the case of actual im-
pacts, scale, scope and likelihood in the case of potential
impacts.
IRO-1 - Description of the process to identify and assess
material impacts, risks and opportunities (E1 IRO-1, E2
IRO-1, E3 IRO-1, E4 IRO-1, E5 IRO-1, G1 IRO-1)
To identify and assess material impacts, risks and opportunities, the Group conducted a double
materiality assessment (DMA) in 2024 in alignment with the ESRS criteria.
61
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Based on the impact materiality assessment methodol-
ogy, actual and potential impacts have been classified into
three categories:
● High – Considered highly significant/material (final
assessment scores: 15–25).
● Medium – Deemed material unless justified otherwise
(final assessment scores: 4–14).
● Low – Assessed as non-material (final assessment
scores: 0–3).
The materiality assessment analysed the entire value
chain of the Group companies, taking into account the
operations of the Group companies, the business rela-
tionships, the geographical location of the value chain and
the affected stakeholders. The materiality of topics was
also assessed at the company level to ensure that signifi-
cant impacts are not excluded, even if they occur within
a single company rather than across the entire Group.
Based on various sources (see list below) and informa-
tion available to the Group, the factors that could lead
to a risk of negative impacts were taken into account.
The assessment was carried out by evaluating the views
of stakeholders as identified by the Group through its
ongoing dialogue with stakeholders in its operations (for
a more detailed disclosure, see SBM-2), publicly available
information provided by competent organisations and
the stakeholder survey carried out as part of a previous
materiality assessment.
To accurately assess climate change risks and opportuni-
ties, the Group conducted an evaluation of both tran-
sition and physical climate risks and opportunities. The
results of this assessment are presented in detail in the
section Climate Risk Assessment.
Biodiversity-related transition and physical risks were not
assessed separately, as the Group’s companies are not
located in or near protected biodiversity areas, and no
direct negative impact on biodiversity, nor related risks
or opportunities have been identified in the Group’s op-
erations.
Financial materiality assessment
The financial materiality assessment was carried out by
taking into account the magnitude of the financial im-
pact and the likelihood of risks and opportunities that
may arise in the immediate business or value chain in the
short, medium and long term.
Based on the financial materiality assessment formula,
the risks and opportunities have been categorised into
three categories:
● High – Considered highly significant/material (final
assessment scores: 15–25).
● Medium – Deemed material unless justified otherwise
(final assessment scores: 4–14).
● Low – Assessed as non-material (final assessment
scores: 0–3).
Risks and opportunities related to sustainability may
arise from the Group’s impacts on the environment and
stakeholders or resource dependencies. Therefore, the
assessment of financial materiality has been carried out in
conjunction with the assessment of impact materiality by
first assessing the impacts and then considering the link-
ages of impacts and dependencies to risks and opportu-
nities. Dependencies were analysed both during the value
chain assessment, such as reliance on key resource inputs
like skilled human capital, and throughout the process of
identifying and assessing IROs. The double materiality as-
sessment prioritised sustainability-related risks, i.e. risks
directly related to the sustainability matters previously
identified by the organisation and the sustainability topics
given by the ESRS standard.
The DMA was carried out by senior management and
specialists responsible for the relevant sustainability top-
ics. The results were reviewed and approved by the Man-
agement Board.
The DMA process is not integrated into the Group’s
overall risk management or overall management process-
es—however, it is intended to be integrated in the future,
in line with the improvement of sustainability governance
and adherence to established sustainability practices in
the market.
Sustainability-related risks are not currently prioritised
separately within the Group’s overall risk management
framework. Risk management is conducted in accord-
ance with the ISO 31000 standard. All risks, including
sustainability and other business risks, are assessed using
the same evaluation methodology, and their prioritisation
is based on the outcome of the risk assessment process.
At present, strategic risks include certain sustainability-
related risks, reflecting their relevance to the Group’s
long-term objectives.
62
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
The parameters of severity and likelihood of impact, and
magnitude and likelihood of financial impact have been
assessed on the basis of available information from vari-
ous sources:
● Policies developed and implemented by the Group,
reports and internal documents.
● Value chain analysis: nature of activities, geographical
locations.
● Stakeholder survey results, 2023, and other
information available to the Group on sustainability
issues relevant to stakeholders.
● Annual reports from other industry players and
identified material topics.
● Industry rankings and materiality maps such as SASB
and MSCI.
● City Service’s Annual Report.
● Auditor’s Report on the Organization’s Management
System Compliance with the requirements of ISO
9001:2015, ISO 14001:2015, and ISO 45001:2018
standards.
● City Service’s employee engagement survey results.
● Risk Management Procedure of UAB “Mano Būstas”.
● Risk Management Policy of UAB “Mano Būstas” Group
of Companies.
● City Service Risk List and Risk Management Measures
Plan.
The Group reviews the double materiality assessment
process annually and updates the information provided.
The results of the DMA were reviewed and reconfirmed
for the 2025 reporting period, with no material changes
identified.
A list of the disclosure requirements followed in prepar-
ing the sustainability report is provided in the section
“List of ESRS Disclosures Included in This Report”. The
Group’s DMA was followed by the identification of mate-
rial disclosures and data points to be reported, in align-
ment with EFRAG’s Implementation Guidance 3 (IG 3).
The Group’s material sustainability topics are addressed
through the corresponding topical ESRS standards, ensur-
ing a focused and standards-aligned reporting approach.
Data points selected from the ESRS directly reflect the
Group’s material topics and have been included in this
report to provide a transparent and complete picture of
sustainability performance. This process ensures that no
material information has been omitted.
IRO-2 – Disclosure Requirements in ESRS covered by the
undertaking’s sustainability statement
The Group’s Sustainability Report is prepared based on a double materiality assessment, with the
process and results described in detail in the IRO-1 disclosure section.
A table of all data points required under other EU legisla-
tion, as referenced in Annex B of the ESRS 2 standard,
is available in the section “List of datapoints in ESRS that
derive from other EU legislation.” Climate change is con-
sidered a material topic for the Group and is included in
this report.
Minimum disclosure requirements
The Group applies and discloses information in accord-
ance with the minimum disclosure requirements on poli-
cies (MDR-P), actions (MDR-A), metrics (MDR-M), and
targets (MDR-T), along with the relevant disclosure re-
quirements set out in the topic-specific ESRS further in
this report.
63
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Sustainability policy (MDR-P)
In 2025, as part of strengthening its sustainability frame-
work, the Group approved a comprehensive Sustain-
ability Policy covering all material sustainability matters
identified through the double materiality assessment.
The policy establishes a common approach to manag-
ing sustainability-related impacts, risks, and opportunities
across the Group and refers to the European Sustain-
ability Reporting Standards (ESRS) as the main reporting
and disclosure framework.
Key elements of the Sustainability Policy include:
● Sustainability principles and objectives across
environmental, social, and governance (ESG) areas.
● Integration of sustainability considerations into
the Group’s activities, decision-making, and risk
management processes.
● Commitments related to responsible resource use,
climate impact mitigation, employee well-being, ethical
and transparent business conduct, data protection,
customer satisfaction, and responsible use of digital
technologies, including artificial intelligence.
● Monitoring of sustainability performance through
defined indicators and regular reporting.
● Group’s commitment to its key stakeholder groups,
including employees, clients, partners, and society, as
defined in the policy.
The Sustainability Policy applies to all Group companies
and employees. Its provisions are further detailed in oth-
er internal documents, strategies, and action plans. The
policy covers the Group’s own operations and activities.
Sustainability expectations towards partners and suppli-
ers are addressed through separate procurement- and
partner-related arrangements.
Overall responsibility for the implementation of the
Sustainability Policy lies with the Group’s senior man-
agement, in line with the governance arrangements de-
scribed in the Sustainability Governance section of this
report.
The Sustainability Policy is communicated to all Group
employees through internal document management sys-
tems and written or electronic means and is publicly
available on the Group’s website.
Other policies addressing specific material sustainability
topics are described further in this report within the re-
spective topic-specific sections.
All policies are applicable to every employee, and all staff
members are required to familiarise themselves with
them.
All policies were developed with stakeholder interests in
mind. While no direct stakeholder engagement was con-
ducted specifically for their development, policies reflect
the Group’s understanding of key stakeholder expecta-
tions and are aligned with established good practice.
64
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
ENVIRONMENTAL AREA
E1 GOV-3 Integration of sustainability-related performance
in incentive schemes
E1 SBM-3 – Material impacts, risks and opportunities and
their interaction with strategy and business model and
E1 IRO-1 – Description of the processes to identify
and assess material climate-related impacts, risks
and opportunities
E1 CLIMATE CHANGE
This information is provided alongside the ESRS 2 GOV-3 disclosure in the chapter Sustainability
Governance of this report.
65
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
CLIMATE RISK ASSESSMENT
To prepare for the upcoming CSRD sustainability reporting requirements, the Group undertook
a climate risk and opportunity assessment in 2024, aligning with ESRS standards and the ‘Do
No Significant Harm’ criteria for climate change adaptation under the EU Taxonomy Regulation
(Annex A of Delegated Regulations No. 2021/2178 and No. 2023/2486). The methodology followed
guidance from the Task Force on Climate-related Financial Disclosures (TCFD) and scenario analysis
recommendations tailored to non-financial undertakings. The results of this assessment were
reviewed and remain applicable for the 2025 reporting period, with no material changes identified.
The assessment involved scenario-based analysis to iden-
tify and evaluate both physical climate risks and transi-
tion-related risks and opportunities. It was based on the
best currently available data and will be reviewed on an
annual basis and/or in the event of significant changes in
business context or updated forecasts of relevant physi-
cal or transition developments.
Assessment of physical climate risks
The assessment of physical climate risks was conducted
in proportion to the scale and expected duration of the
Group companies’ operations. Three time horizons were
defined: short-term (up to 2026), medium-term (2026–
2030), and long-term (2030–2050). The Group assessed
climate-related hazards across its entire operations and
supply chain.
During the climate risk assessment, the full list of physical
hazards provided in Annex A of Commission Delegated
Regulation (EU) 2021/2139 was examined. A compre-
hensive assessment concluded that there are no material
physical climate risks to the Group’s operations or as-
sets. As the Group operates in the service sector, with
activities distributed across urban areas in Lithuania and
Latvia, no potential risks were identified that could have
a material financial impact.
While isolated incidents may occur – such as heavy
rainfall affecting drainage systems in buildings under the
Group’s maintenance – these are unlikely to significantly
impact operational performance. Only in extreme cases
might there be minor effects, such as temporary custom-
er dissatisfaction, but these would not affect the Group’s
overall economic activity.
To carry out the assessment, the Group used climate
data from two key national sources: the report Prepa-
ration of Climate Change Projections until 2100, com-
missioned by Lithuania’s Ministry of Environment (with
projections based on a 12x12 km grid), and the Study on
climate change risks by the middle of the 21st century
by the Lithuanian Hydrometeorological Service (with
regional-level projections). Both sources were used to
analyse the IPCC’s RCP4.5 and RCP8.5 scenarios, which
show very little difference in projected outcomes up to
mid-century. Since reliable data was available for Lithu-
ania, and Latvia’s climate conditions are very similar, the
Group confidently used Lithuanian projections to assess
risks in both countries, given that operations in both
markets are similar and focused in urban areas. During
the assessment, the Group carefully evaluated whether
any physical hazards might result in materially different
outcomes for its operations in Latvia. No such risks were
identified.
Assessment of transition risks and
opportunities
The assessment of transition risks was carried out using
the following timeframes: short-term (up to 2026), medi
-
um-term (2026–2030), and long-term (2030–2050). The
Group analysed expected and potential developments un
-
der a net-zero emissions by 2050 scenario, which aligns
with the Paris Agreement and the overarching goal of the
European Green Deal to achieve climate neutrality by
2050. The evaluation followed the TCFD guidelines, us
-
ing the TCFD classification of climate-related transition
events.
At this stage, the climate risk assessment remains prelimi
-
nary, as the Group has not yet developed a formal Transi-
tion Plan and therefore the costs of transitioning to lower-
emission technologies remain uncertain. The assessment
will be refined once the Transition Plan is in place.
The main assumptions considered, along with the identi
-
fied transition risks and opportunities, are summarised in
the table below.
1
Preparation of climate change projections, national study on the vulnerability and sensitivity of Lithuanian municipalities to climate change, and adaptation plan for the most vulnerable municipality.
Stage I: Preparation of climate change projections until 2100. Introductory report (report prepared by order of the Ministry of Environment of the Republic of Lithuania, Riga, 2022). Available here.
2
Study on Climate Change Risks by Mid-21st Century (Lithuanian Hydrometeorological Service, Climate and Research Division; analysis conducted on behalf of the Lithuanian Banking Association,
Vilnius, 2023). Available here.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Overview of climate-related transition risks and opportunities
No risks/opportunities Medium – material
Low – not material High – highly significant/material
Transition events (TCFD) Risks Opportunities
Materiality
2026 2030 2050
Policy and
Legal
Increased pricing of
GHG emissions
No risks identified As fuel prices rise, demand increases
among clients for building energy effi-
ciency improvements (e.g. insulation and
related upgrades). This trend presents
an opportunity to expand service
offerings and strengthen the Group’s
position as a provider of sustainable,
energy-efficient building maintenance
solutions and is expected to materialise
medium- to long- term.
Increased reporting
obligations
No risks identified No opportunities identified
Mandates on and
regulation of existing
products and services
No risks identified Regulatory requirements for building
energy efficiency are becoming more
stringent.
This drives growing demand for related
services and opens opportunities to de-
velop and offer new, regulation-aligned
solutions. These services are already
embedded in the Group’s business
model and are expected to contribute
to even stronger financial performance
in the medium to long term.
Litigation risk No risks identified No opportunities identified
Technol-
ogy
Costs to transition
to lower emissions
technology
No risks identified No opportunities identified
Unsuccessful invest-
ment in new tech-
nologies
No risks identified No opportunities identified
Substitution of
existing products and
services with lower
emissio
No risks identified Replacing existing products and ser-
vices with lower-emission alternatives
presents an opportunity to strengthen
the Group’s competitive advantage by
aligning with client expectations for
sustainable solutions and positioning
the Group as a forward-looking market
leader. This is expected to increasingly
drive material performance improve-
ments in the medium to long term.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Transition events (TCFD) Risks Opportunities
Materiality
2026 2030 2050
Market
Changing consumer
behavior
No risks identified Clients are increasingly favouring sus-
tainable solutions, creating a favourable
environment for expanding the Group’s
offering of environmentally responsible
services.
Uncertainty in mar-
ket signals
No risks identified No opportunities identified
Increased cost of raw
material
More complex sales
processes due to
rising raw material
costs, which increase
the overall cost of
works (suppliers un-
able to guarantee raw
material availability).
This may limit sales
growth potential.
However, as the
Group’s services are
not easily substitut-
able, the overall
financial impact is ex-
pected to be limited.
No opportunities identified
Reputa-
tion
Shifts in consumer
preferences
No risks identified No opportunities identified
Increased stakeholder
concern or negative
stakeholder feedback
No risks identified Increased investor concern regarding
sustainability issues may lead to more
favourable financing conditions. How-
ever, as such benefits largely depend
on state-level policy decisions which
are unknown, the opportunity is not
considered material.
Stigmatization of
sector
No risks identified No opportunities identified
Climate related impact assessment
As part of its climate-related impact assessment, the
Group considered the nature of its operations and calcu-
lated its Scope 1, Scope 2, and Scope 3 greenhouse gas
(GHG) emissions. Based on this assessment, the Group
concluded that its impact on climate change is material.
At present, the Group does not foresee any significant
changes to its operations in the short, medium, or long
term that would affect this materiality evaluation.
E1-1 – Transition plan for climate change
mitigation
Currently City Service does not have a Transition Plan in
place. A Transition Plan is a roadmap that outlines how
an organisation will adapt its business model and op-
erations to contribute to a low-carbon, climate-resilient
economy. The Group plans to adopt a Transition Plan
aimed at implementing a long-term climate change miti-
gation strategy aligned with the EU Green Deal and the
Paris Agreement. The Transition Plan is expected to be
adopted within the next 2–3 years, taking into account
stakeholder expectations and updates to the operational
strategy.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
E1-2 – Policies related to climate change
mitigation and adaptation
The Group’s overarching policy covering all material sus-
tainability matters, including climate change, is described
in the Sustainability Policy (MDR-P) section. The Sustain-
ability Policy covers all material impacts, risks, and op-
portunities related to climate change identified through
the double materiality assessment, including climate
change mitigation; climate change adaptation and energy
efficiency.
In particular, the policy includes the following commit-
ments:
● Reducing energy consumption and greenhouse gas
emissions in the Group’s operations and supporting
clients in reducing their energy use and related
emissions.
● Improving energy efficiency and promoting building
modernisation, including the use of smart and digital
solutions in managed buildings.
● Increasing the use of renewable energy in the Group’s
operations and encouraging renewable energy
solutions in client-managed properties.
● Developing and offering sustainable, energy-saving
services, including the expansion of solutions based
on smart technologies and client-focused sustainability
support.
● Ensuring transparent and consistent measurement
and disclosure of greenhouse gas emissions.
In addition, the Group’s policy commitments are further
detailed through its Quality, Environmental Protection,
and Occupational Health and Safety Policy, which has
been developed in alignment with relevant ISO stand-
ards. This policy applies to all Group operations, in-
cluding those carried out by outsourced partners and
contractors executing projects on behalf of clients. The
COO holds the highest level of accountability for its im-
plementation.
The policy addresses climate change mitigation, climate
change adaptation and energy efficiency through the fol-
lowing commitments:
● Compliance and continuous improvement of the
environmental management system, in line with
applicable legal and regulatory requirements.
● Ongoing monitoring and evaluation of environmental
and energy performance.
● Oversight of external processes, ensuring that selected
partners meet legal and environmental protection
standards.
● Renovation of buildings and equipment to reduce
environmental impact.
● Enhancing client environments by maintaining
engineering systems in an environmentally responsible
manner.
● Reducing annual energy consumption, taking into
account climate and other influencing factors.
● Developing and implementing energy-saving services
to support broader sustainability goals.
● Continuously improving employee competencies in
environmental protection and energy management,
while fostering engagement, responsibility, and
professional development.
● Raising awareness among employees about their roles
in preserving the environment and promoting energy
efficiency.
● Ongoing improvement of the integrated management
system, including performance analysis and actions to
increase its overall effectiveness.
The policy has been developed with stakeholder inter-
ests taken into consideration, particularly those of cli-
ents, employees, and nature as a silent stakeholder, rec-
ognising expectations for the Group’s contribution to
environmental protection.
The policy is made available to all Group employees, who
are responsible for its implementation, via the Group’s
internal document-sharing platforms.
E1-3 – Actions and resources in relation to
climate change policies and
E1-4 – Targets related to climate change
mitigation and adaptation
The Group’s GHG emission reduction strategy (Transi-
tion Plan) is currently under development. As such, City
Service has not yet adopted specific actions, targets, or
a formal action plan related to climate transition without
a clear strategy in place. Consequently, there are no rel-
evant disclosures to report at this stage in relation to the
minimum disclosure requirements for MDR-A or MDR-T.
To track its performance to date, the Group has been
calculating its Scope 1 and Scope 2 greenhouse gas
(GHG) emissions since 2022. Since 2024, Scope 3 emis-
sions were included in the assessment. The results are
presented in the tables below.
69
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Energy efficiency for society and customers
(MDR-P, MDR-A, MDR-T)
The policy addressing this sub-topic is provided alongside
the E1-2 disclosure in this report.
Energy efficiency services form a core part of City Ser-
vice’s value proposition to both society and its custom-
ers. The Group provides these services as part of its
ongoing commercial and residential building maintenance
activities, contributing to reduced energy consumption
and lower utility costs for clients.
In the commercial building segment, Group companies
deliver tailored energy consumption reduction plans to
clients. While actual savings vary depending on the spe-
cific project, the objective is always to optimise building
performance and improve energy efficiency outcomes.
In the residential segment, energy efficiency is promoted
through renovation projects, the installation of smart me-
tering systems, and partial renovation initiatives. These
efforts are aimed at reducing household energy bills and
improving the overall energy performance of buildings.
Entity-specific metric – energy savings from
renovated residential buildings
As an entity-specific metric, the Group monitors energy
savings achieved through residential building renovation
projects. Based on available data for the 2024–2025 pe-
riod, a total of 28 apartment buildings were renovated.
The estimated annual energy savings achieved in these
buildings amount to approximately 9,746.49 MWh, cal-
culated based on average post-renovation performance.
As a result of these energy savings, an estimated 502.51
tonnes of CO₂ emissions are avoided annually.
Taxonomy eligible activities
Given that energy efficiency services are taxonomy-eli-
gible under the EU Taxonomy for sustainable activities -
specifically contributing to climate change mitigation - the
Group plans to enhance the granularity of its Taxonomy
disclosures in future reporting periods.
Currently, the disclosure of taxonomy-aligned revenue
from these services is limited only to installment of EV
charging stations. This is due to system limitations in the
Group’s accounting practices, which currently do not al-
low for the precise identification and calculation of reve-
nue specifically linked to other energy efficiency services.
The Group is committed to addressing this matter over
the next few years, with the goal of achieving more de-
tailed and accurate reporting on its contribution to the
EU’s climate goals.
E1-5 – Energy consumption and mix
The data on energy consumption is considered accurate,
with a high level of reliability. Calculations are based on
the Group’s fuel accounting records reflecting actual con-
sumption, as well as purchase invoices, meter readings,
and guarantees of origin provided by energy suppliers
for electricity procured from the grid and district heating
used in buildings under operational control.
70
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Energy consumption and mix
Energy consumption and mix 2022 2023 2024 2025
YoY
(change vs.
previous year
vs. Base
year
(1) Fuel consumption from coal and coal
products (MWh)
0 0 0 0 - -
(2) Fuel consumption from crude oil and
petroleum products (MWh)
9 407.04 10 645.37 10 443.68 10 054.05 -3.7% 6.9%
(3) Fuel consumption from natural gas
(MWh)
186.98 350.32 243.42 228.37 -6.2% 22.1%
(4) Fuel consumption from other fossil
sources (MWh)
0 0 0 0 - -
5) Consumption of purchased or
acquired electricity, heat, steam, and
cooling from fossil sources (MWh)
796.24 583.19 390.87 396.58 1.5% -50.2%
(6) Total fossil energy consumption
(MWh) (calculated as the sum of lines 1
to 5)
10 390.26 11 578.88 11 077.97 10 679.00 -3.6% 2.7%
Share of fossil sources in total energy
consumption (%)
99.9 100 98.3 98.5 - -
(7) Consumption from nuclear sources
(MWh)
Share of consumption from nuclear
sources in total energy consumption (%)
(8) Fuel consumption for renewable
sources, including biomass (also
comprising industrial and municipal waste
of biologic origin, biogas, renewable
hydrogen, etc.) (MWh)
11.39
(9) Consumption of purchased or
acquired electricity, heat, steam, and
cooling from renewable sources (MWh)
0 0 196.15 162.38 -17.2%
(10) The consumption of self-generated
non-fuel renewable energy (MWh)
0 0 0 0
(11) Total renewable energy
consumption (MWh) (calculated as the
sum of lines 8 to 10)
11.39 0 196.15 162.38 -17.2% -
Share of renewable sources in total
energy consumption (%)
0.1 0 1.7 1.5 - -
Total energy consumption (MWh)
(calculated as the sum of lines 6, and 11)
10 401.65 11 578.88 11 274.12 10 841.38 -3.8% 4.2%
Notes: The cells market in grey in the table are not applicable. The Group does not generate energy from renewable sources. Production from non-renewable sources amounted to 10 687.1 MWh
in 2024 and 10 278.0 MWh in 2025.
71
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Energy intensity
Energy intensity is calculated by dividing the total energy
consumption from activities in high climate impact sec-
tors by the Group’s total revenue. In the Group’s case,
E1-6 – Gross Scopes 1, 2, 3 and Total GHG
emissions
GHG emissions inventory methodology
The emission assessment was carried out in accordance
with the Greenhouse Gas Protocol (GHG Protocol)
guidelines and ESRS requirements. The calculation in-
cludes not only CO₂ but also all other greenhouse gases
generated by the Group’s operations (CO₂, N₂O, CH₄),
converted into CO₂ equivalent using standard conversion
factors from IPCC AR5, with the final total reported as
CO₂e.
The chosen consolidation approach for emissions is the
operational control method. The base year for Scope 1
and Scope 2 GHG emissions is 2022. For Scope 3 emis-
this means dividing total energy consumption (in MWh) -
as all activities fall under sectors classified as high climate
impact - by the revenue figure in euros reported in the
Group’s financial statements (see cross-reference in the
note below the following table).
sions, the base year is 2024, as it marks the first year in
which the Group assessed emissions resulting from its
value chain activities.
All emission-generating activities falling under the op-
erational control approach are included in the Group’s
greenhouse gas (GHG) assessment. Exceptions are made
only in cases where the reliability of available data is very
low and the estimated emissions are considered immate-
rial to the overall GHG inventory. To determine whether
emissions are material, the Group applies a quantitative
threshold: emission sources contributing more than 5%
to the total GHG inventory are classified as material and
prioritised for monitoring and management.
Sources of emission factors used are detailed in the ta-
bles below.
Energy consumption and mix 2022 2023 2024 2025
YoY
(change vs.
previous year
vs. Base
year
Total energy consumption from
activities in high climate impact sectors
per net revenue from activities in high
climate impact sectors (MWh/Eur)
0.0001236 0.0001114 0.0001026 0.00009381 -7.3% -23.0%
Notes:
1) According to the NACE codes, the Group’s activities are classified under the sector L68.3.2 - Management of real estate on a fee or contract basis, which is a high climate impact sector.
Therefore, all Group’s revenue is included in the calculation of energy intensity.
2) Cross-reference to the corresponding revenue amount in the financial statements: Consolidated statement of comprehensive, Revenue from contracts with customers.
72
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Calculation and reporting coverage of Scope 1 and Scope 2 GHG emissions
Scope 1 and Scope 2: Assessment boundaries, assumptions, and data accuracy
Assessment
category
Assumptions and
boundaries
Emission sources Emission factor sources
Data accuracy
/ reliability of
calculations
Scope 1 – Direct
emissions
The company does not
operate any commercial
refrigeration equipment
and therefore does not
incur any refrigerant
leakages.
Fuel for company-
controlled transport.
Natural gas for heating.
LT NIR 2024, Annex V, Natural gas,
Table 5-3. Country specific CO2
emission factors of natural gas, t/TJ;
EMEP/EEA air pollutant emission
inventory guidebook 2019.
The data is accurate,
and the reliability of
the calculation is high.
It is based on the
company’s fuel accounting
records reflecting actual
consumption.
Scope 2 –
Indirect emissions
(purchased
electricity and
district heating)
Procured electricity and
district heating
Electricity procured
from the grid and district
heating used in buildings
under operational control.
AIB 2023
Residual Mix (market-based) and
Production Mix (location-based).
Heating emission factors are based:
on official letter from the Ministry
of Environment of the Republic of
Lithuania regarding the approval
of the construction technical
regulation STR 2.01.02:2016
“Design and Certification of
Building Energy Performance.”
The data is accurate,
and the reliability is high.
It is based on purchase
invoices, meter readings,
and supplier-provided
guarantees of origin
documentation.
Note: Guarantees of Origin bundled with Energy purchases are used in some locations (100%). Please refer to the E1-5 part for Green/Brown electricity shares.
Calculation and reporting coverage of Scope 3
GHG emissions
100% of the Group’s Scope 3 GHG emissions were as-
sessed using data based on specific activities within its
upstream and downstream value chain. However, no pri-
mary data (0%) was obtained from suppliers or other
value chain entities.
The table below summarises Scope 3 assessment catego-
ries, calculation sources and methods, and the resulting
data accuracy. Categories no. 1-7 are significant Scope
3 categories based on the magnitude of their estimated
GHG emissions and other criteria provided by GHG Pro-
tocol.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Scope 3: Assessment boundaries, assumptions, and data accuracy
Assessment
category
Assumptions and boundaries Emission sources
Emission factor
sources
Data accuracy / reliability of
calculations
1. Purchased
goods and
services
All expenses for the purchase of goods
and services are assessed.
Goods (materials and goods
purchased for resale) and third-
party services acquired during the
reporting year.
BEIS 2019
(DEFRA), inflation
adjusted (EU27).
The data is accurate; however,
the reliability of the calculations
is considered medium, as
the assessment is based on
expenditure data.
2. Capital goods
All expenses related to capital goods are
assessed.
Long-term asset acquisitions
during the reporting year.
BEIS 2019
(DEFRA), inflation
adjusted (EU27).
The data is accurate; however,
the reliability of the calculations
is considered medium, as
the assessment is based on
expenditure data.
3. Fuel and
energy-related
activities (not
included in Scope
1 or 2)
Based on actual energy and fuel
consumption
Well-to-tank emissions related
to fuel and energy, and energy
transmission losses.
IEA 2022;
DEFRA 2023;
Glec v3, based on
Ecoinvent v3.9.1
The assessment is based on
accurate data.
4. Upstream
transportation
and distribution
All transportation expenses (third-party
services) are assessed.
Transportation expenses (third-
party services)
BEIS 2019
(DEFRA), inflation
adjusted (EU27).
The data is accurate; however,
the reliability of the calculations
is considered medium, as
the assessment is based on
expenditure data.
5. Waste
generated in
operations
Waste generated based on GPAIS report.
Additionally small amounts of municipal
waste is generated in offices - it is
assessed together with office maintenance
costs and not included in Waste category
due to limited data access.
Expenses for waste management
services.
DEFRA 2023.
The data is accurate and based
on GPAIS reports.
6. Business
traveling
Includes expenses for flights, bus and train
tickets, taxis, and accommodation.
Expenses for flights, bus and train
tickets, and taxi services, as well
as accommodation costs.
BEIS 2019
(DEFRA), inflation
adjusted (EU27).
The data is accurate; however,
the reliability of the calculations
is considered medium due to the
expenditure-based assessment.
7. Employee
commuting
Employee commute using private vehicles
(results extrapolated from survey
responses).
Employee commuting by private
transport.
DEFRA 2023.
The data is accurate but
extrapolated from a subset of
employees who participated in
the survey.
8. Upstream
leased assets
Not applicable. All related emissions are
included in Scope 1 and 2 assessments.
Some refrigerant leakage
9. Downstream
transportation
Not applicable.
10. Processing of
sold products
Not applicable.
11. Use of sold
products
Not applicable.
12. End-of-life
treatment of sold
products
Not calculated due to low materiality and
lack of reliable data. Assessment planned
in future years.
13. Downstream
leased assets
Not applicable.
14. Franchises Not applicable.
15. Investments Not applicable.
74
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
GHG emissions
Emission type
Retrospective
Base year
2022
2023 2024 2024
YoY
(change vs.
previous year)
Vs. Base year
Scope 1 GHG
emissions
Gross Scope 1 GHG
emissions (tCO2eq)
2 563.24 2 927.93 2 852.25 2 742.35 -3.9% 7.0%
Percentage of Scope 1
GHG emissions from
regulated emission
trading schemes (%)
0 0 0 0
Scope 2 GHG
emissions*
Gross market-based
Scope 2 GHG emissions
(tCO2eq)
238,34 216,04 86,82 85.81 -1.17% -64.0%
Gross location-based
Scope 2 GHG emissions
(tCO2eq)
138.63 80.228 70,70 60.86 -14.0% -56.1%
Significant Scope 3
GHG emissions
Total Gross indirect
(Scope 3) GHG
emissions (tCO2eq)
10 668,18 10 851.1 1.7%
1. Purchased goods and
services
8 029.08 8168.99 1.7%
2. Capital goods 295.51 369.79 25.1%
3. Fuel and energy-
related activities (not
included in Scope 1
or 2).
1 000.14 945.2 -5.5%
4. Upstream
transportation and
distribution
645.16 756.26 17.2%
5. Waste generated in
operations
0.19 0.36 86.9%
6. Business traveling 6.56 37.91 477.6%
7. Employee commuting 691.54 573.03 -17.1%
8. Upstream leased
assets
0 0
9. Downstream
transportation
0 0
10. Processing of sold
products
0 0
11. Use of sold products 0 0
12. End-of-life treatment
of sold products
0 0
13. Downstream leased
assets
0 0
14. Franchises 0 0
15. Investments 0 0
Total GHG
emissions (tCO2eq)
Total GHG emissions
(market-based) (tCO₂e)
2 751.27** 3 110.30** 13 607,26 13 679.69 0.5%
Total GHG emissions
(location-based) (tCO₂e)
2 651.56** 2 974.54** 13 627,07 13 684.51 0.4%
* In 2025 small amount of biogenic emissions were emitted due to district heating usage, however they are not estimated due to lack of detail in emission factors data.
** Scope 1&2 only
Notes: The cells market in grey in the table are not applicable. City Service group does not own any other companies that are not integrated within the Group boundary and therefore does not allocate
additional GHG emissions. There were slight changes in organisational structure, however the impact in GHG inventory was negligible, so there is no impact on GHG comparability over the years.
75
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
GHG intensity
Greenhouse gas (GHG) intensity is calculated by dividing
the total GHG emissions by the Group’s total revenue.
In the Group’s case, this means dividing total GHG emis-
sions (in tonnes of CO₂ equivalent) by the revenue figure
E1-7 – GHG removals and GHG mitigation projects financed through carbon credits and
E1-8 – Internal carbon pricing
The Group does not currently have such practices in place and therefore has no relevant information to disclose.
reported in the Group’s financial statements, expressed
in euros (Eur) (see cross-reference in the note below the
following table).The indicator is presented using both the
location-based and market-based approaches.
GHG intensity per net revenue 2024 2025 YoY
Total GHG emissions (location-based) per net revenue (tCO2eq/Eur)* 0.00012382 0.00011837 -4.4%
Total GHG emissions (market-based) per net revenue (tCO2eq/Eur)* 0.00012400 0.00011841 -4.5%
Notes: *Cross-reference to the corresponding revenue amount in the financial statements: Consolidated statement of comprehensive, Revenue from contracts with customers.
76
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
EU TAXONOMY DISCLOSURE
The European Union (EU) Taxonomy (Regulation 2020/852 and associated delegated acts) serves
as a classification system for economic activities, aiming to channel private investment into
environmentally sustainable initiatives that align with the EU Green Deal’s environmental goals.
The Taxonomy outlines six key environmental objectives:
● CCM – Climate Change Mitigation.
● CCA – Climate Change Adaptation.
● WTR – Sustainable Use and Protection of Water
and Marine Resources.
● CE – Transition to a Circular Economy.
● PPC – Pollution Prevention and Control.
● BIO – Protection and Restoration of Biodiversity
and Ecosystems.
It sets out science-based technical screening criteria to
assess the environmental sustainability of various eco-
nomic activities. Activities that fall within the scope of
the Taxonomy and meet these criteria may be consid-
ered environmentally sustainable and eligible for green
investment.
A taxonomy-eligible activity is one that is included in
the delegated acts of the Taxonomy Regulation. Com-
panies whose revenues (Turnover), capital expenditures
(CapEx), and/or operating expenses (OpEx) are linked
to such activities are required to analyse and report the
Taxonomy Key Performance Indicators (KPIs) and the
extent to which their operations meet the relevant Tax-
onomy criteria. A taxonomy-aligned activity is one that
not only qualifies as eligible but also fulfills the technical
screening criteria by:
● Substantially contributing to at least one of the six
environmental objectives.
● Doing no significant harm (DNSH) to the other five
objectives.
● Complying with the minimum safeguards requirements.
This section, prepared in accordance with the Taxonomy
Regulation and its delegated acts, presents the key per-
formance indicators of the Group (City Service and its
subsidiaries), along with details on how its activities align
with the Taxonomy framework.
In this report, the Group applies the updated EU Tax-
onomy disclosure requirements established by the “Om-
nibus” Delegated Act, applicable from 1 January 2026.
Identification of eligible activities
The Group is engaged in activities and/or makes invest-
ments that qualify as taxonomy-eligible and contribute to
climate change mitigation. The Group does not currently
perform activities that support the other five environ-
mental objectives under the EU Taxonomy.
The scope of taxonomy-eligible activities disclosed by the
Group is determined based on the availability and reliabil-
ity of financial data required to calculate and substantiate
the Taxonomy KPIs in line with regulatory requirements.
Where relevant financial information is not available or
cannot be robustly evidenced, such activities are not in-
cluded in the disclosed taxonomy scope, as this would
not provide meaningful or decision-useful information.
At the same time, the Group is committed to gradually
expanding the scope and quality of its Taxonomy disclo-
sures as data availability and internal processes further
develop. In this context, the 2025 disclosures have been
expanded to include information related to CCM 6.6
Freight transport services by road, covering the acquisi-
tion of freight vehicles for the 2024 and 2025 reporting
periods.
Evaluation of alignment with Taxonomy criteria
In 2024, the Group conducted a comprehensive climate
risk assessment to evaluate whether the identified activi-
ties do not cause significant harm to climate change ad-
aptation. The assessment found no material physical risks
to the Group’s operations or assets, therefore meeting
the DNSH criterion for this objective. The results of the
assessment remain applicable for the 2025 reporting pe-
riod, with no material changes identified.
The Group also complies with the minimum safeguards
requirement. It adheres to socially responsible and ethical
business practices, following the OECD Guidelines for
Multinational Enterprises and the UN Guiding Principles
on Business and Human Rights. Compliance was verified
based on the European Commission’s Platform on Sus-
tainable Finance’s “Final Report on Minimum Safeguards”
(2022).
The Group’s activity CCM 7.4 Installation, maintenance
and repair of charging stations for electric vehicles in
buildings (and parking spaces attached to buildings) is
77
CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
considered taxonomy-aligned. The Group generates rev-
enue from the installation of EV charging stations, an ac-
tivity recognised as making a substantial contribution to
climate change mitigation. As no physical climate-related
risks were identified during the assessment, this activity
meets the DNSH criteria for climate change adaptation
and is fully aligned with the Taxonomy criteria. Compared
to 2024, the revenue disclosed for this activity in 2025 is
approximately four times lower, reflecting fluctuations in
demand, as the Group implemented fewer related pro-
jects during the reporting period.
In 2025, the Group’s list of taxonomy-aligned activities
was expanded to include an additional activity. City Ser-
vice leased a new building in Kaunas that meets the crite-
ria of Taxonomy activity CCM 7.7. The building was con-
structed in 2025 and was assessed against the substantial
contribution criteria applicable at the time of acquisition,
in line with the requirements of CCM 7.1. The building’s
primary energy demand, used to determine its post-con-
struction energy performance, is at least 10% lower than
the threshold for nearly zero-energy buildings. Specifi-
cally, the building’s primary energy consumption amounts
to 58.95 kWh/m² per year, which is approximately 65%
lower than the applicable normative level. No additional
substantial contribution criteria are applicable to this
building. No physical climate-related risks were identified
during the assessment, and therefore the activity meets
the applicable DNSH criteria for climate change adapta-
tion. This contributed to a significant increase in taxon-
omy-aligned CapEx and OpEx percentages compared to
2024.
Other activities are not considered aligned, either be-
cause they do not meet one or more of the necessary
criteria, or due to the absence of sufficient information
to support a conclusive assessment.
Calculation of Taxonomy KPIs
The following information presents the calculated Tax-
onomy indicators. All disclosed indicators related to Tax-
onomy-eligible activities avoid double counting, as each
specific amount of revenue/expenditure is attributed to
only one Taxonomy activity.
During the reporting period, the Group made additional
efforts to more accurately identify and allocate expenses
and revenues to Taxonomy-eligible and Taxonomy-aligned
activities. As a result, the 2024 figures have been recalcu
-
lated to ensure consistency and improved comparability
with the current year. The updated 2024 data are reflected
in the following indicators: Taxonomy-aligned activities in
previous financial year 2024 and Proportion of Taxonomy-
aligned activities in previous financial year 2024.
Revenue (turnover)
A portion of the revenue received by the Group in
2024–2025 corresponds to the following activity defined
in the Taxonomy:
● Installation of EV charging stations – CCM 7.4
Installation, maintenance and repair of charging
stations for electric vehicles in buildings (and parking
spaces attached to buildings).
● Leasing of premises to third parties – CCM 7.7
Acquisition and ownership of buildings.
● Leasing of vehicles to third parties – CCM 6.6 Freight
transport services by road and CCM 6.5 Transport
by motorcycles, passenger cars and light commercial
vehicles.
The share of revenue from this taxonomy-aligned activity
was determined by dividing the revenue from services di
-
rectly related to this activity by the Group’s total revenue.
Turnover corresponds to “Revenue from contracts with
customers” as reported in the financial statements (i.e.
operating revenue recognised under applicable account
-
ing standards). Cross-reference to the corresponding rev-
enue amount in the financial statements: Consolidated
statement of comprehensive, Revenue from contracts
with customers
.
Capital Expenditures (CapEx)
A portion of the Group’s long-term asset investments in
2024 corresponds to the following activities defined in
the Taxonomy:
● Acquisition of assets under IFRS 16 – CCM 7.7
Acquisition and ownership of buildings.
● Acquisition of EV charging stations for own use – CCM
7.4 Installation, maintenance and repair of charging
stations for electric vehicles in buildings (and parking
spaces attached to buildings).
● Acquisition of cars/commercial vehicles – CCM 6.5
Transport by motorbikes, passenger cars and light
commercial vehicles.
The share of capital expenditures (CapEx) relating to
taxonomy-eligible activities was calculated by dividing the
investments associated with eligible activities, as defined
in the Taxonomy, by the Group’s total capital expendi-
tures in accordance with the Taxonomy definition.
The note in the consolidated financial statement that
best corresponds to the CapEx indicator under the Tax-
onomy is note 17 Leases.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Operational Expenditures (OpEx)
A portion of the Group’s operating expenses in 2024–
2025 corresponds to the following activities defined in
the Taxonomy:
● Maintenance, repair and/or cleaning costs related to
buildings for own use – CCM 7.7 Acquisition and
ownership of buildings.
● Maintenance and/or lease-related costs of EV charging
stations – CCM 7.4 Installation, maintenance and
repair of charging stations for electric vehicles in
buildings (and parking spaces attached to buildings).
● Maintenance and/or repair of Group’s vehicles – CCM
6.5 Transport by motorbikes, passenger cars and
light commercial vehicles; CCM 6.6 Freight transport
services by road.
The definition of operating expenses (OpEx) under the
EU Taxonomy differs from the commonly accepted defi-
nition in financial accounting, covering only a narrow sub-
set of expenses.
Based on the Group’s current expense classification struc-
ture, only a limited portion of OpEx can be separately
identified and directly attributed to Taxonomy-eligible
activities. Specifically, costs related to technical main-
tenance and repairs are partially identifiable and were
included in the calculation. Consequently, the disclosed
OpEx is based solely on clearly identifiable amounts and
represents the best available estimate given the current
level of cost granularity.
The OpEx indicator was calculated by dividing the operat-
ing expenses related to taxonomy-eligible activities by the
total operating expenses as defined under the Taxonomy.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
KPI
Total
Proportion of Taxonomy-
eligible activities
Taxonomy-aligned activities
Proportion of Taxonomy-
aligned activities
Breakdown by environmental objectives of Taxonomy-
aligned activities
Proportion of enabling
activities
Proportion of transitional
activities
Not assessed activities
considered non-material
Taxonomy-aligned activities
in previous financial year
2024
Proportion of Taxonomy-
aligned activities in previous
financial year 2024
Climate Change
Mitigation
Climate Change
Adaptation
Water
Circular
Economy
Pollution
Biodiversity
Te x t %
Thousand
Eur
% % % % % % %
(E where
applicable)
(T where
applicable)
%
Thousand
Eur
%
Turnover 115566 0% 43.82 0.04% 0.04% - - - - - 0.04% 0 0% 166.15 0.2%
CapEx 3713 32% 1000.02 26.93% 26.93% - - - - - 0.03% 0 0% 0.71 0.02%
OpEx 768 48% 13.96 2% 2% 0.64% 0 0% 0 0.00%
1
The 2024 data has been restated for turnover and CapEx. In the 2024 sustainability report, taxonomy-aligned activities were disclosed as EUR 166.28 thousand in turnover and EUR 0 in CapEx,
representing 0.2% of turnover and 0% of CapEx. The restatement reflects updated revenue figures based on the latest financial data, as well as the identification in 2025 of a previously unreported amount
of CapEx related to the acquisition of electric vehicle charging stations for own use.
SUMMARY KPIs
Proportion of turnover, CapEx, OpEx from products or services associated with Taxonomy-eligible or Taxonomy-
aligned economic activities – disclosure covering year 2025 (summary KPIs)
Note: In the 2024 sustainability report, the following figures were reported: taxonomy-aligned revenue from CCM 7.4 amounted to EUR 166.28 thousand (0.2%). No taxonomy-eligible but non-aligned
revenue from CCM 7.7 and CCM 6.5 was reported.
Turnover (revenue) / Financial year 2025
Economic
activities
Code(s)
Taxonomy-eligible KPI
(Proportion of Taxonomy-eligible
Turnover)
Taxonomy-aligned KPI (monetary
value of Turnover)
Taxonomy-aligned KPI
(Proportion of Taxonomy-aligned
Turnover)
Environmental objective of Taxonomy-aligned activities
Enabling activity
Transitional activity
Proportion of Taxonomy-aligned
in Taxonomy-eligible
Climate Change
Mitigation
Climate Change
Adaptation
Water
Circular Economy
Pollution
Biodiversity
Te x t %
Thousand
Eur
% % % % % % %
(E where
applicable)
(T where
applicable)
%
Acquisition and
ownership of
buildings
CCM 7.7 0.10% 0 0.00% 0.00% - - - - - - - 0%
Installation,
maintenance and
repair of electric
vehicle charging
stations in buildings
(and in parking spaces
attached to buildings)
CCM 7.4 0.04% 43.82 0.04% 0.04% - - - - - - - 100%
Freight transport
services by road
CCM 6.6 0.002% 0 0.00% 0.00% - - - - - E - 0%
Transport by
motorcycles,
passenger cars and
light commercial
vehicles
CCM 6.5 0.03% 0 0.00% 0.00% - - - - - - - 0%
Sum of alignment per objective 0.04% 0.00% 0.00% 0.00% 0.00% 0.00%
Total KPI (Turnover) 0.16% 43.82 0.04% 0.04% 0.00% 23%
TURNOVER KPI
Proportion of turnover from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic
activities – disclosure covering year 2025 (activity breakdown)
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
CapEx / Financial year 2025
Economic
activities
Code(s)
Taxonomy-eligible KPI
(Proportion of Taxonomy-eligible
Turnover)
Taxonomy-aligned KPI (monetary
value of Turnover)
Taxonomy-aligned KPI
(Proportion of Taxonomy-aligned
Turnover)
Environmental objective of Taxonomy-aligned activities
Enabling activity
Transitional activity
Proportion of Taxonomy-aligned
in Taxonomy-eligible
Climate Change
Mitigation
Climate Change
Adaptation
Water
Circular Economy
Pollution
Biodiversity
Te x t %
Thousand
Eur
% % % % % % %
(E where
applicable)
(T where
applicable)
%
Acquisition and
ownership of
buildings
CCM 7.7 27.35% 999.05 26.91% 26.91% - - - - - - - 98%
Installation,
maintenance and
repair of electric
vehicle charging
stations in buildings
(and in parking spaces
attached to buildings)
CCM 7.4 0.03% 0.97 0.03% 0.03% - - - - - E - 100%
Freight transport
services by road
CCM 6.6 0.00% 0 0.00% 0.00% - - - - - - - 0%
Transport by
motorcycles,
passenger cars and
light commercial
vehicles
CCM 6.5 4.52% 0 0.00% 0.00% - - - - - - - 0%
Sum of alignment per objective 26.93% 0.00% 0.00% 0.00% 0.00% 0.00%
Total KPI (CapEx) 32% 1000.02 27% 0.03% 0.00% 84%
CAPEX KPI
Proportion CapEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic
activities – disclosure covering year 2025 (activity breakdown)
Note: In the 2024 sustainability report, no taxonomy-aligned CapEx was reported. Taxonomy-eligible but non-aligned CapEx from CCM 7.7 amounted to EUR 52.31 thousand (2%), and CapEx from
CCM 6.5 amounted to EUR 67.36 thousand (2%).
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
Note: In the 2024 sustainability report, taxonomy-eligible but non-aligned OpEx from CCM 6.5 amounted to EUR 186.15 thousand (34%). The activities CCM 7.7 and CCM 6.6 were not reported.
CapEx / Financial year 2025
Economic
activities
Code(s)
Taxonomy-eligible KPI
(Proportion of Taxonomy-eligible
Turnover)
Taxonomy-aligned KPI (monetary
value of Turnover)
Taxonomy-aligned KPI
(Proportion of Taxonomy-aligned
Turnover)
Environmental objective of Taxonomy-aligned activities
Enabling activity
Transitional activity
Proportion of Taxonomy-aligned
in Taxonomy-eligible
Climate Change
Mitigation
Climate Change
Adaptation
Water
Circular Economy
Pollution
Biodiversity
Te x t %
Thousand
Eur
% % % % % % %
(E where
applicable)
(T where
applicable)
%
Acquisition and
ownership of
buildings
CCM 7.7 1.52% 9.04 1.18% 1.18% - - - - - - - 77%
Installation,
maintenance and
repair of electric
vehicle charging
stations in buildings
(and in parking spaces
attached to buildings)
CCM 7.4 0.64% 4.92 0.64% 0.64% - - - - - E - 100%
Freight transport
services by road
CCM 6.6 29.81% 0 0.00% 0.00% - - - - - - - 0%
Transport by
motorcycles,
passenger cars and
light commercial
vehicles
CCM 6.5 16.20% 0 0.00% 0.00% - - - - - - - 0%
Sum of alignment per objective 1.82% 0.00% 0.00% 0.00% 0.00% 0.00%
Total KPI (CapEx) 48.17% 13.96 1.82% 0.64% 0.00% 4%
OPEX KPI
Proportion OpEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic
activities – disclosure covering year 2025 (activity breakdown)
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
S1 SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS
This information is provided alongside the ESRS 2 SBM-2 disclosure in the chapter Stakeholder
Engagement of this report.
S1 SBM-3 – MATERIAL IMPACTS, RISKS AND OPPOR-
TUNITIES AND THEIR INTERACTION WITH STRATEGY
AND BUSINESS MODEL
As a service and technology-driven company, City Service’s business model is dependent on engaged
and skilled employees. The risks and opportunities arising from this dependency are detailed in the
ESRS 2 SBM-3 disclosure table “Material Impacts, Risks, and Opportunities”, under the sub-topics
“Training and Skills Development” and “Engagement/Satisfaction.”
S1 OWN WORKFORCE
Employee well-being, fair remuneration, engagement,
and continuous skills development are strategic priorities
that directly influence the Group’s success and customer
satisfaction, while driving positive impacts on employees.
The Group continuously manages and updates its strat-
egy in these topics.
Given the nature of the work - often performed on-site
and outdoors - the Group places strong emphasis on
employee health and safety. In addition, it ensures the
protection of employee’s personal data.
The workforce subject to material impacts by City Ser-
vice’s operations are the Group’s hired employees. There
are no widespread or systematic negative impacts caused
by the Group’s operations or related to individual inci-
dents, as defined in ESRS. Of course, the risk of occu-
pational safety accidents is ever-present. However, The
Group effectively mitigates these risks through proactive
measures. A continuous monitoring of the supply chain
and the activity of contractors is also carried out in order
to prevent negative impacts.
Currently there are no material impacts foreseen on the
Group’s own employees that arise from the Transition
Plan, as such a plan is not approved yet.
There are no operations that would be at a significant
risk of incidents of forced labour, compulsory labour or
child labour.
The Group strives to ensure that all employees, regard-
less of the type of employment contract, are subject to
the same standards of working conditions and social pro-
tection.
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CITY SERVICE SE CONSOLIDATED MANAGEMENT REPORT 2025
Sustainability Statement
S1-1 – POLICIES RELATED TO OWN WORKFORCE (MDR-P)
In 2025, the Group strengthened its sustainability governance by adopting a comprehensive
Workforce Management Policy covering all material workforce-related topics.
The policy sets out the Group’s approach and commit-
ments to responsible workforce management, including
respect for human rights, equal opportunities and inclu-
sion, occupational health and safety, fair remuneration
and social protection, skills development and career op-
portunities, work–life balance, employee engagement,
and social dialogue. It addresses the management of ma-
terial workforce-related impacts, risks, and opportunities
and supports their integration into the Group’s overall
strategy and business model.
The policy applies to the entire workforce of City Service
SE Group, including employees working under employ-
ment contracts and, where relevant based on the na-
ture of activities, self-employed persons and third-party
workers (such as contractors and suppliers’ employees)
performing work for or on behalf of the Group at its
managed sites. The policy covers direct operations of all
Group companies and geographies and extends, where
applicable, to the upstream value chain.
The policy establishes mechanisms for monitoring and
accountability, including regular risk assessments, perfor-
mance indicators (such as employee turnover, accident
frequency, training hours, pay gap indicators, and em-
ployee engagement metrics), and ongoing social dialogue
with employees and their representatives. Progress and
outcomes are reviewed annually and disclosed in the
Group’s sustainability reporting.
The member of the Board of City Service SE respon-
sible for the Baltic countries holds the highest level of
accountability for oversight of the policy, while its imple-
mentation is ensured by Group company management
and the human resources function. The policy applicable
to every employee, and all staff members are required to
familiarise themselves with it.
Health and safety
The Group’s commitments to employee health and safety
are also outlined in its Quality, Environmental Pro-
tection, and Occupational Health and Safety
Policy, developed in line with ISO standards. The policy
applies to all Group employees and the scope of the pol-
icy is the same as that of the Group. The COO holds the
highest level of accountability within the organisation for
the implementation of the policy.
Human rights, non-discrimination and remedy
The Group’s human rights commitments are defined in its
Workforce Management Policy. Through this policy, City
Service SE Group commits to respecting and protecting
human rights across its workforce by ensuring equal op-
portunities and non-discrimination, safeguarding freedom
of association and the right to collective bargaining, pro-
viding safe and healthy working conditions, ensuring fair
remuneration and access to statutory social protections,
and fostering an inclusive, respectful, and dignified work-
ing environment. The Group does not tolerate forced
labour, child labour or any form of human trafficking.
Although the policy does not explicitly reference interna-
tional human rights instruments, its provisions are aligned
with internationally recognised human rights frameworks,
including the United Nations Global Compact, the UN
Guiding Principles on Business and Human Rights, the
ILO Declaration on Fundamental Principles and Rights at
Work, and the OECD Guidelines for Multinational En-
terprises.
In 2025, the Group formalised its approach to grievance
handling and remedy by adopting a dedicated Report-
ing of Violations and Whistleblower Protection
Policy, which complements the Group’s Workforce
Management Policy and forms an integral part of its sus-
tainability governance framework. The policy establishes
confidential and secure reporting channels, investigation
procedures, defined timelines, and protection against re-
taliation for individuals who raise concerns in good faith.
No human rights complaints or confirmed violations have
been recorded within City Service to date. The Group’s
general approaches to employee engagement, including
those related to human rights, are disclosed alongside the
information provided under ESRS S1-2.
City Service has also adopted a Harassment, Sexual
Harassment, and Prevention of Violence policy.
This policy outlines behavioural expectations for all em-
ployees, emphasizing respect for others, including col-
leagues, customers, suppliers, and other stakeholders.
It promotes sensitivity to privacy, beliefs, views, and the
physical and mental integrity of individuals, while prohib-
iting any verbal, written, or physical conduct that could
cause discomfort or disturbance in the workplace.
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Sustainability Statement
The Group’s Workforce Management Policy explicitly
prohibits discrimination on a range of grounds, includ-
ing gender, age, race, nationality, religion, disability, sexual
orientation, beliefs, and other personal characteristics,
and the Group adheres to all applicable national and EU
regulations prohibiting discriminatory practices.
At present, the Group does not have specific policy com-
mitments related to the inclusion of or positive action
for individuals from groups at particular risk of vulner-
ability as no such groups have been identified within the
Group’s current workforce. The Group is committed to
ensuring a safe, respectful, and non-discriminatory work
environment for all employees.
These commitments are implemented through inter-
nal procedures, including management accountability,
employee training, confidential reporting and grievance
mechanisms, and investigation processes defined in the
Group’s internal policies.
Policies applied to business partners
Information on policy applicable to value chain employees
(business partners) is provided in the section S2 Workers
in the Value Chain of this report.
S1-2 – PROCESSES FOR ENGAGING WITH OWN
WORKFORCE AND WORKERS’ REPRESENTATIVES
ABOUT IMPACTS
The Group maintains active, ongoing engagement with its employees as part of daily operations. A
combination of direct and indirect communication channels is used to ensure employee voices are
heard and considered in decision-making.
A key channel of engagement is collaboration with the
Labour Union, which facilitates regular dialogue with em-
ployee representatives. In addition, the Group engages
directly with employees through various tools such as
Employee Engagement Surveys (incl. eNPS - Employee
Experience Survey), employee meetings and conferences,
and internal communication platform and direct commu-
nication with line managers.
Employee perspectives are recognised as essential to the
Group’s success. Communication takes place as needed
to ensure that feedback is continuously gathered and
used to inform relevant business decisions. The HR Man-
ager is responsible for overseeing these engagement pro-
cesses and ensuring that input from employees and their
representatives is integrated into the Group’s operations
and planning.
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Sustainability Statement
S1-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS
AND CHANNELS FOR OWN WORKFORCE TO RAISE
CONCERNS
Following the adoption of the Reporting of Violations and Whistleblower Protection Policy in 2025,
the Group has established formal processes to receive, assess, investigate, and address reported
workforce-related concerns, including potential human rights impacts.
To date, no systemic material negative impacts on em-
ployees requiring remediation have been identified. An
isolated work-related incident involving an external crimi-
nal act occurred during the reporting period, and the
Group is addressing its consequences in line with applica-
ble legal requirements and internal procedures.
Health and safety incidents are managed through estab-
lished procedures aligned with ISO 45001 standards.
City Service provides multiple channels for employees
to raise concerns, express needs, or provide feedback,
including both informal engagement mechanisms and for-
mal reporting procedures:
● Direct communication with line managers through
meetings, phone calls, email, or performance appraisals;
● Employee representation through the Labour Union;
● Anonymous employee feedback collected through the
annual Engagement and eNPS survey; and
● A dedicated, confidential reporting channel established
under the Reporting of Violations and Whistleblower
Protection Policy, allowing employees to report
suspected violations, including human rights or labour-
related concerns, with protection against retaliation.
The whistleblowing channel constitutes the Group’s for-
mal grievance and complaints handling mechanism for
employee-related matters. Employees are informed about
available channels through internal communication tools,
onboarding processes, regular briefings, e-learning plat-
form eCITY, ensuring accessibility across the workforce.
Issues raised through different channels are reviewed and
handled by the responsible functions. While the Group
does not operate a single centralised tracking system,
relevant matters are documented at functional level, es-
calated where necessary, and discussed through internal
management processes. The effectiveness of channels is
reviewed periodically, including through employee feed-
back collected via the annual survey and direct engage-
ment with employee representatives.
Employee awareness of and trust in these channels is pri-
marily assessed through the annual eNPS survey, which
includes questions on communication, the ability to raise
concerns, and management responsiveness. The Group
follows applicable laws and its internal whistleblower
protection policy to ensure that individuals raising con-
cerns, including workers’ representatives, are protected
against retaliation.
More information on whistleblowing channels and pro-
tections is provided in section G1-1 of this report.