Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented specific environmental measures beyond regulations.
• Used innovative, environmentally friendly technologies to minimize environmental impact.
• Protected biodiversity at various sites.
• Issued green bonds in 2015 (€40 million) and 2017 (€245 million).
• Achieved a Vigeo Eiris A1 rating, placing Neoen in the top 4% of rated companies.

Social Achievements

• Committed to high standards in business ethics and social matters.
• Paid particular attention to labor law, hygiene, and safety conditions.
• Implemented strict inspection and monitoring processes reviewed quarterly.
• Made special commitments to communities neighboring its plants.
• Promoted local companies and supported social economy projects.
• Supported college education in renewable energies through academic grants and a specialized technology institute.
• Supported local economic development projects (roads, water, electricity infrastructure).
• Contributed to the preservation of local cultures and communities in Australia.

Governance Achievements

• Board of directors with 42% independent members and 42% women.
• Governance compliant with AFEP-MEDEF recommendations.
• Successful IPO on Euronext Paris, raising €697 million.

Climate Goals & Targets

Environmental Challenges

• Uncertainties in project development (delays, additional costs, failure to secure PPAs).
• Risks in project construction (breaches of contract, deadlines, cost overruns).
• Risks related to third-party contractors (non-fulfillment of obligations, quality issues, financial difficulties).
• Hazardous activities inherent in electricity production (injuries, damage, interruptions).
• Dependence on financing arrangements (difficulties obtaining financing, unfavorable terms).
• High leverage and significant project debt (operational flexibility, financial impact in crisis scenarios).
• Dependence on securing power purchase agreements (failure to obtain PPAs on profitable terms).
• Risks related to the sale of electricity (market price fluctuations, counterparty risk).

Mitigation Strategies

• Rigorous project development process with early risk mitigation.
• Proactive engagement with stakeholders and local communities.
• Selection of high-quality, financially sound contractors.
• Strict HSE policies and supervision.
• Diversified financing sources (equity, project finance debt, green bonds).
• Non-recourse project financing.
• Long-term PPAs with robust counterparties.
• Hedging strategies for interest rate and exchange rate risks.
• Contingency budgets for unexpected costs.
• Insurance policies to cover potential losses.
• Active monitoring and management of assets.

Supply Chain Management

Responsible Procurement

• Selection of reputable suppliers with bankable guarantees.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Emissions Reduction
• Biodiversity
• Community Engagement
• Safety
• Diversity & Inclusion
• Ethical Conduct

Environmental Achievements

• Calculated global carbon footprint (including scopes 1, 2, and 3)
• 100% offset of company travel emissions in 2021
• Environmental impact assessments conducted on 100% of project sites during development
• HSE compliance audits on 100% of construction sites
• Offsetting unavoidable environmental impact and implementing 'above and beyond' biodiversity initiatives for each project
• Identifying recycling channels for all activities and integrating recycling commitments into new supply agreements

Social Achievements

• 100% of employees formally committed to Neoen's Code of Conduct and Anti-Corruption code
• Exceeded industry benchmark for women in workforce
• Annual increase in percentage of management positions held by women
• Community consultation and information-sharing on all projects
• Development of Community Engagement Plans for 100% of new projects over 50 MW
• Engagement with local business and employment networks, prioritizing local suppliers and jobseekers
• Development of benefit-sharing initiatives for each new project over 50 MW
• Local Participation Plans developed for projects over 100 MW

Governance Achievements

• 200 M€ syndicated loan linked to ESG criteria
• 170 M€ first ever European Green Convertible Bond

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Prioritizing local suppliers
• Integrating recycling commitments into new supply agreements

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Emissions Reduction
• Diversity & Inclusion
• Safety
• Biodiversity
• Recycling
• Community Engagement
• Economic Development
• Benefit-Sharing

Environmental Achievements

• Offset 100% of the company’s 2020 business travel emissions (707 tons of CO2) by financing "clean" cookstoves in Mozambique and Mexico.
• All assets commissioned in 2021 have undergone an Environmental Impact Assessment.
• 174 new MW were covered by a recycling clause in new supply agreements.

Social Achievements

• All employees have signed the Code of Conduct.
• 95.6% of employees have taken anti-corruption and compliance training.
• Rolled out several community initiatives in various countries (e.g., playschool construction, community greenhouse funding).

Governance Achievements

• All employees formally commit to Neoen’s Code of Conduct and Anti-Corruption code.

Climate Goals & Targets

Environmental Challenges

• Americas region is far from the target of 32% women in workforce.
• Some projects have yet to decide on their "above and beyond" biodiversity initiative.

Mitigation Strategies

• Increasing the percentage of management positions held by women is a top priority in 2022.
• Systematically offsetting environmental impacts beyond local legal requirements.

Supply Chain Management

Supplier Audits: 48% of our sites under construction have undergone an EH&S audit.

Responsible Procurement

• Integrating a recycling commitment clause into all new supply agreements.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ICMA Green Bond Principles 2018

Third-party Assurance: Moody's ESG Solutions (formerly Vigeo Eiris)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Engagement
• Health & Safety
• Responsible Procurement
• Biodiversity

Environmental Achievements

• Avoided emission of 2,587,092 tons of CO2 equivalent through power plant production.
• 975 MW covered by a recycling clause in 2022.
• 208 MW of low-carbon solar panels purchased in 2022.
• Two power plants with carbon-neutral concrete foundations put into production (Finland and Sweden).

Social Achievements

• 100% of employees signed the ethics charter.
• 100% of employees received at least one training course (average 16.5 hours).
• Increased gender diversity in workforce (30.7% women) and management (22.8% women).
• 100% of assets commissioned in 2022 were subject to consultation or information process.
• Various community investment initiatives across multiple countries (scholarships, fiber optic network, rainwater harvesting systems, etc.).

Governance Achievements

• Strengthened anti-corruption policy with a Compliance Officer and updated training.
• 100% of Tier-1 suppliers are ISO 9001 and ISO 14001 certified.
• ESG criteria integrated into a €200 million syndicated loan agreement.

Climate Goals & Targets

Environmental Challenges

• Corruption risk in emerging markets.
• Risks related to suppliers and contractors' practices contrary to human rights.
• Risks associated with retaining executives and key employees.
• Risks related to health and safety of employees and subcontractors.
• Risks associated with local opposition to project construction.

Mitigation Strategies

• Strengthened governance on corruption, updated risk mapping, systematized third-party evaluation, and continued anti-corruption training.
• Responsible procurement strategy with supplier audits, ESG assessments (Ecovadis), and ISO certifications.
• Strengthened HR department, formalized HR policies, pre-audit on local practices in new countries, and employee engagement initiatives.
• Strong HSE culture, HSE audits, and a three-year HSE strategy.
• Structured approach to stakeholder engagement, community consultation, and information sharing.

Supply Chain Management

Supplier Audits: 100% of Tier-1 suppliers audited; 62% of O&M contractors audited; audits mainly in Europe in 2022 due to Covid-19.

Responsible Procurement

• ESG clauses in contracts, including human rights, anti-forced labor, and anti-corruption provisions.
• Ecovadis assessments for suppliers.
• ISO 9001 and ISO 14001 certifications for major suppliers.

Climate-Related Risks & Opportunities

Opportunities

• Energy transition as a growth opportunity.

Reporting Standards

Frameworks Used: UN Global Compact

Third-party Assurance: RSM

UN Sustainable Development Goals

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

Neoen's renewable energy projects contribute to these goals.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Procurement
• Health & Safety
• Biodiversity
• Community Engagement
• Circular Economy
• Ethical Conduct

Environmental Achievements

• Avoided emission of more than 8,000,000 tons of CO2 through renewable energy production.
• 95% of power plants commissioned in 2023 had environmental impact assessments.
• 275 MW of low-carbon solar panels purchased in 2023.
• 100% of company business travel emissions offset in 2023.
• 100% renewable ancillary equipment consumption for Australian solar and wind farms in 2023.
• 595 new MW covered by a recycling clause in 2023.

Social Achievements

• Increased workforce by 21.6% to 439 employees.
• 33.7% of employees are women (up from 30.7% in 2022).
• 100% of employees received training in 2023 (average 14.8 hours).
• Attrition rate decreased to 13.9% (from 19.4% in 2022).
• Implemented a parenthood policy across European countries and updated Australian policy.
• Organized Neoen's Solidarity Day with 179 employees participating.

Governance Achievements

• 100% of employees committed to respecting Neoen’s Code of Conduct.
• 95.2% of employees received anti-corruption and compliance training.
• No cases of corruption detected since the company's creation in 2008.
• Implemented a new online alert system for harassment and discrimination.

Climate Goals & Targets

Environmental Challenges

• Retaining employees and building staff loyalty.
• Managing corruption risks in emerging markets.
• Ensuring responsible practices among suppliers and contractors.
• Protecting biodiversity in project locations.
• Managing local opposition to project construction.

Mitigation Strategies

• Implemented a new recruitment tool and redesigned the careers page.
• Developed partnerships with schools and universities.
• Strengthened the HR department.
• Implemented anti-corruption policies, training, and third-party evaluation.
• Developed a biodiversity policy and agrisolar approach.
• Implemented structured stakeholder engagement processes.

Supply Chain Management

Supplier Audits: 100% Tier-1 suppliers audited; 93% of major suppliers certified ISO 9001, 14001, and 45001.

Responsible Procurement

• Strategic Industrial Partner Code of Conduct
• Ecovadis ESG assessments
• ISO certifications

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Opportunities

• Growth in renewable energy sector

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: RSM

Sustainable Products & Innovation

• Low-carbon solar panels