Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced the need to build expensive new power lines by optimizing power flow on existing lines with minimal environmental or local impact
• Made it easier to connect more renewable energy sources to the grid

Social Achievements

• Installation and operation of SmartValve in a matter of hours without affecting local residents
• Successful partnership between Smart Wires and EirGrid

Governance Achievements

• Successful testing and validation of SmartValve technology on a live power system
• No changes were required to the existing system protection settings as a result of this project

Climate Goals & Targets

Environmental Challenges

• Rapid changes in the electricity sector, including increased renewable energy generation and high-tech customer demand
• Uncertain public acceptance of new electricity infrastructure
• Need for more efficient and flexible transmission infrastructure
• One SmartValve unit briefly lost communication due to a software error
• Slight corrosion observed on plain steel screws
• Low current on the test circuit reduced the opportunity for SmartValve units to deliver operational benefits
• Significant weight of SmartValve units due to step-down transformer

Mitigation Strategies

• Developed SmartValve technology to dynamically adjust the reactance of electricity lines, preventing system overload
• Resolved software error that caused communication loss
• Changed exterior fasteners to coated stainless steel to eliminate corrosion
• Updated SmartValve configuration to significantly reduce the minimum current threshold
• Developed a new SmartValve model without a transformer to reduce weight and improve mobility

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• SmartValve

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy

Environmental Achievements

• Delivered and commissioned over 80 SmartValvesTM at 9 customer sites in 2021, totaling 320 MVAr of product deployment. Helped unlock 1.5 GW of network capacity for National Grid Electricity Transmission (NGET) – enough to power one million additional homes with renewable energy.
• Successfully completed projects in Greece, Germany, and Australia that enabled increased electricity flows and unlocked additional capacity for renewable energy integration.

Social Achievements

• Expanded Smart Wires team by 81 during 2021.
• Relocated technology development center and offices from California to North Carolina.
• Received the 2021 Cleantech Impact Award for Economic Development in North Carolina.

Governance Achievements

• IPO on Nasdaq First North on May 18, 2021.
• Secured $50 million debt facility in December 2021.

Climate Goals & Targets

Environmental Challenges

• Global supply chain challenges impacting component availability, sub-assembly production, and logistics.

Mitigation Strategies

• Improved supply chain management and manufacturing output.
• Cut-over production from SmartValve v1.03 to SmartValve v1.04 in May 2022.
• Investing in core technology, industrializing operations, and diversifying product and solution offerings.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Increased demand for grid modernization and renewable energy integration.

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

Smart Wires' technology helps integrate renewable energy sources into electricity grids, contributing to both affordable and clean energy and climate action.

Sustainable Products & Innovation

• SmartValveTM

Awards & Recognition

• 2021 Cleantech Impact Award for Economic Development
• Collaborate to Innovate (C2I) 2021 Energy & Environment award

Environmental Metrics

ESG Focus Areas

• Climate change
• Renewable energy
• Grid modernization

Environmental Achievements

• Not disclosed

Social Achievements

• Strengthened global workforce by hiring 30 team members across commercial, engineering, supply chain, and quality teams.
• Opened new global headquarters in Research Triangle Park, North Carolina, with plans to add 250 personnel over five years.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain and global logistics challenges due to delays and slow recovery from COVID-19, impacting Q3 production and reducing revenues.

Mitigation Strategies

• Developed a 'plan-for-every-part' and 'clear-to-ship' process to map production through the remainder of the year, anticipating stronger production and shipments in Q4.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Smart Wires' technology helps accelerate the connection of renewable energy to grids and improve grid resilience.

Sustainable Products & Innovation

• SmartValve™ power flow control devices

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Opened new global headquarters in Durham, North Carolina with state-of-the-art R&D facilities and testing labs.
• Incorporated a new Colombian subsidiary in Medellin to serve as the operational hub for Latin America.
• Strengthened the organization with key appointments in General Manager for Europe, Chief Sales Officer, Chief Development Officer, and Chief Operating Officer roles.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions impacting production timing and deliveries.
• Cost pressure on logistics and broker-sourced components.
• High uncertainty regarding raw materials and components.

Mitigation Strategies

• Developed and deployed incremental pathways to source material.
• Bolstered supply chain diversity, strength, and depth.
• Improved payment terms with vendors and suppliers.
• Exploring strategic financing opportunities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed