Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption through various efficiency projects (e.g., installing frequency inverters, replacing lights with LEDs) resulting in significant kWh savings.
• Planted 107,728 trees since 2005.
• Implemented a Solid Waste Management Plan to manage hazardous and non-hazardous waste.
• Installed a 10,000L water tank to harvest rainwater, reducing freshwater extraction.

Social Achievements

• Implemented the "Learning Today, Shining Tomorrow" program benefiting 51 teachers and 1,000 students.
• Launched the Educational Robotics Pilot project.
• Invested USD $1.2 million in a Community Project for the Rehabilitation of Water Systems.
• Supported various sports leagues and teams.
• Improved school infrastructure.
• Implemented an Agricultural Project supporting 50 producers.
• Donated medical supplies to prevent the spread of COVID-19.

Governance Achievements

• Combined HR and ESG committees to integrate ESG objectives into company culture.
• Integrated specific ESG accountabilities into executives' 2021 objectives.
• Implemented a global Anti-Bribery and Corruption Policy.
• Adopted a Workplace Harassment & Violence Policy.
• Established a Whistleblower Policy.
• Adopted a risk-based Integrity Due Diligence Protocol for third parties.
• Adopted a Gifts Policy.
• Improved contractor safety and procurement process.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and administrative processes.
• Potential impact of droughts on water withdrawal for hydroelectric facilities.
• Cybersecurity vulnerabilities due to increased remote work.

Mitigation Strategies

• Activated safety protocols and crisis response plans.
• Transitioned to work from home.
• Implemented COVID-19 prevention protocols.
• Supported communities with medical supplies and food baskets.
• Managing water resources efficiently and returning water to its source.
• Investing in cybersecurity programs and IT infrastructure.

Supply Chain Management

Responsible Procurement

• Contractors required to adhere to Code of Conduct and Anti-Bribery Policy.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001

Awards & Recognition

• Great Place to Work (Nicaragua subsidiary)

Environmental Metrics

ESG Focus Areas

• Clean, renewable energy
• Respect for Human Rights
• Community Relations
• Responsible use of resources
• Biodiversity
• Transparency and openness to all stakeholders
• Effective internal control processes

Environmental Achievements

• Successfully certified carbon credits which are being sold in the international market
• Reduced electricity required by San Jacinto base camp from the national grid by 70% through the installation of a PV solar system
• Achieved a saving of 10m3/month of water in two months by replacing the water distribution system at the base camp and plant
• Planted and donated 7,244 trees in 2021

Social Achievements

• Nicaragua subsidiary certified as a Great Place to Work® for the fifth year in a row
• Complete remodeling of a school near the Company location in Nicaragua
• Implemented the expansion of the robotics project at the main school in the nearby community in Nicaragua
• Provided technical assistance, supply of inputs and seeds for watermelon cultivation and funded the construction of five biogas systems in Nicaragua
• Supported small producers in the diversification of their crops towards Beekeeping (honey) and other vegetables in Peru

Governance Achievements

• Shareholders approved Polaris Infrastructure’s revised Long Term Incentive Plan (LTIP)
• Undertook an exhaustive review of its legacy LTIP Program
• Completed a second campaign in 2021 to further stiffen Cyber Security
• Launched the Ethics Line Channel aligned with the Code of Business Conduct and Ethics

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Need to strengthen preparedness for future global crises, including those posed by climate change

Mitigation Strategies

• Implemented measures to prevent and control the risk of COVID-19, including daily temperature checks for all workers and suppliers and providing medical care services
• Regular medical updates regarding COVID-19, chronic diseases, and promotion of healthy lifestyles for employees
• Exploring new jurisdictions and opportunities to affect positively the places where we operate

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

UN Sustainable Development Goals

• SDG 7
• SDG 12
• SDG 13
• SDG 15
• SDG 2
• SDG 4
• SDG 6
• SDG 17
• SDG 3

The report details how various initiatives contribute to these goals.

Awards & Recognition

• Great Place to Work® Certification

Environmental Metrics

ESG Focus Areas

• environmental, social and governance initiatives
• health and safety

Environmental Achievements

• Completion of Vista Hermosa Solar Park in Panama (connected to grid April 22, 2023)
• Installation of a 630KW Battery Energy Storage System at 8 de Agosto hydroelectric facilities in Peru

Social Achievements

• Maintaining an excellent health and safety record
• Paid $12.6 million in dividends for the year

Governance Achievements

• Repurchased and cancelled 22,200 common shares under a normal course issuer bid

Climate Goals & Targets

Environmental Challenges

• Incremental temporary instability in cycling wells in Nicaragua
• Lower production in Dominican Republic due to resource availability (longer rainy season)

Mitigation Strategies

• Additional energy generated by the new Binary Plant in Nicaragua offset temporary instability
• Not disclosed

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

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Finalized phase 1 optimization project in the Dominican Republic, replacing 50% of PV panels at Canoa 1 solar plant, boosting productivity by at least 15%
• Continued implementation and alignment of the Company's sustainability strategy in all jurisdictions
• Maintaining high standards in health and safety at all operating facilities

Social Achievements

• Training employees on Code of Business Conduct and Ethics, Harassment and Violence at the Workplace, Cybersecurity & Ransomware awareness, Environmental Education & Health and Safety education, diversity and inclusion
• Contributions to local educational organizations (robotics project sponsorship, laptop/server donations, internet payments for schools, school/sports supplies donations)
• Support for local water and sanitation committees (technical workshops, assistance, water meter donations)
• Awareness campaigns with employees and local communities (International Women's Day, Earth Day, World Day for Safety and Health at Work, World Environmental Day, tree donation/reforestation campaigns, waste management awareness, Environmental Fairs)
• Contribution to local community agricultural projects (coffee, beekeeping, watermelon production)
• Donations of infrastructure improvements and medical supplies to communities (school renovations)
• Engaging employees and local communities (reforestation/cleaning campaigns, sports tournaments)
• Continued development of the Company’s Integrated Management System, stakeholder engagement and community grievance mechanisms

Governance Achievements

• Board comprised of individuals with broad range of industry and business expertise and deep knowledge and extensive experience operating in Latin America
• Continued progress on corporate development, acquisition initiatives and related integration
• Balancing sustainable dividends with deploying excess cash flow into growth and diversification
• Continued back-office IT and cyber security related enhancements

Climate Goals & Targets

Environmental Challenges

• Lower hydrology in Peru compared to last year resulting in lower energy production
• Expected declines and lower Binary unit throughput in Nicaragua due to typical declines in steam production and colder fluids entering the production zone of two cycling wells
• Lower revenue from geothermal facility in Nicaragua
• Canchayllo hydroelectric facility inactive from March 10, 2024 to May 6, 2024 due to minor landslide

Mitigation Strategies

• Decision to lower the throughput of the Binary unit in Nicaragua to maintain declines from the steam field in our targeted range and avoid instability in two cycling wells
• Monitoring the enthalpy of the field in Nicaragua to assess whether to increase Binary unit production
• Canoa 1 optimization project in Dominican Republic to increase productivity

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters and severe weather (floods, drought)
• Changing weather patterns impacting water flow to hydroelectric facilities

Transition Risks

• Changes in government regulations and policies
• Fluctuations in the market price of energy
• Increase in industry competition