Sustainable investments are the foundation of the growth of Modus Group’s business
Economist Umair Haque, when talking about the value created by a business, identifies two types of this value - thin and thick. The thin value is one that is created without regard to the needs of society, and sometimes even by sacrificing them. However, the development of the world and its future, according to the economist, depends on the thick value. By creating it, business not only generates profits, but also improves the living conditions of people, help solve ecological problems, and ensure sustainable growth of economy. Precisely this path was chosen many years ago by Modus Group, one of the largest international group of companies in Lithuania, which consistently increases the volume of green investments.
Future investments for sustainable growth of business
Investments of Modus Group in renewable energy, sustainable mobility and green innovations help address climate change and other environmental challenges, create high value-added jobs, ensure stable growth of economy and make people’s lives more comfortable, reflecting the thick value mentioned by Umair Haque.
“For this reason, an increasing share of our investment portfolio is allocated to two priority areas - renewable energy and sustainable mobility solutions. Last year, these areas accounted for as much as 99% of all our investments. That’s about 157 million euros. Investment in renewable energy projects last year, compared to 2018, increased as much as 2.7 times, and in mobility solutions - about twice. In the upcoming years, we will maintain the same directions of investments,” notes A. Martinkėnaitė-Martyniuk.
Green investment means more clean energy
Last year, Green Genius, a company managed by Modus Group, invested almost 136 million euros in green energy projects across Europe. The group estimates that last year alone, the amount of carbon dioxide released into the atmosphere was about 160,000 tonnes smaller due to energy projects implemented by Green Genius.
According to Ruslanas Sklepovič, a member of the group’s board responsible for the field of energy, biogas operations of Modus Group contribute to the tackling of climate change the most. These not only produce green energy, but also recycle biodegradable waste, which otherwise emits carbon dioxide and methane gas. These gases contribute to climate change and also emit an unpleasant odour.
Green Genius biogas power plants operate near livestock farms, which supply biogas power plants with biodegradable waste through underground pipelines. This waste is used in power plants to produce clean electricity and organic, odourless fertilizers. This process not only ensures the principles of the circular economy, but also solves the problem of unpleasant odours which is a big concern to local communities,” says R. Sklepovič.
Currently, Green Genius is the largest operator of biogas power plants in Lithuania, and the total capacity of biogas power plants operated by the company in different countries reaches more than 20MW. Over the past ten years, the company has also built a number of solar power plants with a total capacity of 150MW in Lithuania and other European countries. Next year, new solar energy projects are planned by Green Genius in Lithuania, Poland, Italy, and Spain, and new biogas power plant projects are planned for development in Poland, as well as capacity expansion in Lithuania.
Mobility solutions for more sustainable cities
Business investments of Modus Group promotes not only green energy but also the sharing economy. According to Giedrius Audickas, who is responsible for the area of mobility of Modus Group, by developing new public habits, transport sharing services also contribute to the reduction of the impact on the environment.
“Advanced mobility and sharing economy solutions that help to live more sustainably also have great potential today. This is perfectly illustrated by the example of our smart car, bicycle, and scooter rental business CityBee. In a relatively short period of time, these mobility solutions in European cities have become an integral part of the transport system, they help to reduce carbon dioxide emissions and congestion in urban streets, ”says G. Audickas.
In less than ten years, the fleet of CityBee in the Baltics has grown from a few dozen to more than two thousand cars, and mobility solutions offered by the company already have more than 700,000 registered users.
It is estimated that last year alone, due to the availability of CityBee cars and other vehicles, the number of cars driven on the streets of the Baltic cities was lower by 15,000 cars. This means that the amount of carbon dioxide emitted last year was about 5.5 thousand tonnes smaller due to this solution of sharing economy.
„In 2019 we have invested more than 21 million euros in the field of mobility solutions, i.e. twice as much as a year before. Next year we plan investments in the development of the fleet as well. In addition, we intend to start business expansion to Central European countries and take the first steps towards electrification of the car fleet,” says G. Audickas.
The car industry is getting greener
Another important branch of the operation of Modus Group is the car business. It is gradually becoming more environmentally friendly, with a greater focus on new, hybrid and electric vehicles.
“According to the requirements of the European Commission, car manufacturers must reduce the average emissions from vehicles to a maximum of 95 g of carbon dioxide per kilometer. Otherwise, manufacturers will face billions of euros in fines. During the first half of this year, sales of electric cars and hybrid cars in Europe reached unprecedented highs and accounted for 18% of all new cars sold,” notes Oleg Martyniuk, head of car business of Modus Group.
According to him, Modus Group is also upgrading its car dealerships, adapting to new electric models, upgrading its service equipment, and investing in charging stations.
The direction of green investment will continue next year as well
The quarantine introduced in many countries adjusted the group’s operational plans of 2020. Business activities were optimized in a timely manner, and some investment projects had to be postponed to the next year.
“Covid-19 has affected all branches of Modus Group operation differently. The development of energy projects was mainly affected by restrictions on business trips to other countries and disrupted activities of public institutions, therefore part of the investments was carried over to the next year. We proportionally optimized our car fleet of CityBee operations, due to the reduced need of population for movement. However, the decline in consumer mobility was most notable in Lithuania, where stricter quarantine restrictions were introduced, while the demand for CityBee services in Latvia and Estonia continued to grow. The most stable branch of the group this year has become the car business. Although the supply of cars was disrupted and consumption decreased slightly,” says A. Martinkėnaitė-Martyniuk.
According to the head of Modus Group, investments in renewable energy, mobility and other sustainable solutions are the basis for successful business growth, therefore green industries will remain the priority of group’s business strategy.
On the 16th of November, the second emission of Modus Group bonds was launched, it is estimated that it should raise up to 8 million euros. These funds will be used to refinance the emission with the value of 5 million that was issued 3 years ago, and will be invested in renewable energy projects as well as the expansion of the businesses of sustainable mobility. The bonds are distributed by financial brokers of Šiaulių bankas, whom investors can contact by phone 8 5 2 462 465, 8 5 2 032 266, or by e-mail .
About Modus Group:
Modus Group is an international group of companies mainly operating in the fields of renewable energy (Green Genius), mobility services (CityBee), smart parking solutions (Parkdema), and car sales. The group operates a network of car brand dealerships. These brands include Porsche, Fiat, Bentley, Maserati, and others.