Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety and safeguarding of people
• Human rights
• Water management
• Biodiversity
• Climate change mitigation, adaptation and preparedness
• Business ethics and anti-corruption

Environmental Achievements

• In 2016, over 96% of Statkraft’s power generation was based on renewable energy sources, and more than 92%, or 61.2 TWh, came from hydropower.
• Collaboration project established with WWF Norway and DNV-GL developing an environmental risk mapping tool for biodiversity using a Geographic Information System (GIS) platform.
• Finalised first step of a R&D project targeting a holistic management tool using LIDAR-technology to map and improve water management and flood control in regulated water courses.

Social Achievements

• Completion of resettlement, compensation and livelihood development programs for the Devoll project in Albania.
• A mandatory business ethics and anti-corruption training program has been rolled out across the company to all staff in the Group, excluding Skagerak Energi and Fjordkraft.
• In June 2016, Statkraft entered into an agreement with the Northern Group of the Fosen reindeer grazing district in Norway regarding compensation and mitigation measures in relation to the construction of the Fosen wind farm.

Governance Achievements

• A strengthened Compliance unit was established in Corporate Legal and Compliance.
• Compliance risk assessments have been conducted for all high-risk locations in 2016.
• A new system has been introduced for integrity reviews of business partners, where all high-risk contracting processes are subject to a dedicated integrity review.

Climate Goals & Targets

Environmental Challenges

• One fatal accident among Statkraft’s contractor workforce in 2016.
• Five accidents that led to serious injuries in 2016.
• Concerns related to business ethics and anti-corruption.

Mitigation Strategies

• Investigation of accidents to identify root causes and prevent recurrence.
• Implementation of clear safety rules for specific high-risk activities.
• Strengthened Compliance unit and improved processes for handling reported concerns.

Supply Chain Management

Supplier Audits: 10 audits conducted in 2016 under a joint audit program coordinated by Sellihca.

Responsible Procurement

• Statkraft’s Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Changes in the availability of natural resources (precipitation, run-off and wind)

Transition Risks

• Changes in national and international climate policies

Opportunities

• Hydropower's flexibility to balance variable energy sources

Reporting Standards

Frameworks Used: GRI G4

Third-party Assurance: Deloitte AS (limited assurance)

UN Sustainable Development Goals

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

Statkraft’s business contributes to the implementation of the SDGs through its responsible business conduct and commitment to international standards for corporate responsibility management.

Environmental Metrics

ESG Focus Areas

• Health and safety
• Labour practices
• Gender equality
• Human rights
• Environmental disclosures
• Biodiversity and impact on nature
• Business ethics and anti-corruption

Environmental Achievements

• Reduced CO2-equivalent emissions per MWh power generation from 5 kg/MWh in 2015 to 14 kg/MWh in 2017 (though total emissions increased)

Social Achievements

• Improved employee safety with a reduction in lost-time injuries (LTI) rate from 3.5 in 2015 to 2.8 in 2017
• Maintained high employee engagement scores (72 out of 100 in 2017)
• 100% of employees received training on anti-corruption in the last three years

Governance Achievements

• 100% of senior management received training on human rights in 2017
• Statkraft's Board members received anti-corruption training

Climate Goals & Targets

Environmental Challenges

• Increased total greenhouse gas emissions despite improvements in emissions per MWh
• Number of serious injuries (4 in 2017)
• Number of incidents with potential for serious consequences (48 in 2017)

Mitigation Strategies

• 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

• Safety and safeguarding of people
• Human rights
• Water management
• Biodiversity
• Climate change mitigation, adaptation and preparedness
• Business ethics and anti-corruption

Environmental Achievements

• Increased installed power generation capacity based on renewables by 613 MW to a total of 16 055 MW.
• Reduced impacts of major flood events in Norway by more than half.
• No serious environmental incidents in 2019.

Social Achievements

• Increased percentage of women in management positions from 21% to 23%.
• Employee engagement survey showed high and stable motivation and satisfaction (84% total score).
• No fatal accidents in 2019; however, 7 contractor employees suffered serious injuries.

Governance Achievements

• Roll out of the compliance programme on track, including implementation of planned measures related to training, culture building and risk mitigation in critical business processes.
• New Business Ethics Toolkit launched for management engagement and culture building.
• New training on competition law completed.

Climate Goals & Targets

Environmental Challenges

• Achieving zero serious injuries.
• Maintaining local community acceptance for projects, particularly in relation to indigenous peoples.
• Managing risks related to biodiversity impacts from hydro and wind power generation.
• Balancing the profitability of the company with climate politics and changing weather patterns.
• Addressing risks related to corruption, fraud, money laundering, sanctions, and export control.

Mitigation Strategies

• Implementation of the ‘Powered by Care’ programme to improve health and safety.
• Ongoing consultations and engagement with local stakeholders, including indigenous peoples.
• Implementation of mitigation measures during construction and operation of wind and hydro projects.
• Closely following climate politics at national and international levels and conducting robust commercial decisions.
• Implementation of a comprehensive compliance programme, including training, culture building, and risk mitigation.

Supply Chain Management

Supplier Audits: 60-70 suppliers per year; 30 audits performed on Statkraft’s direct suppliers in 2019

Responsible Procurement

• Supplier Code of Conduct covering health and safety, environment and climate, human rights, labour rights, and business ethics.

Climate-Related Risks & Opportunities

Physical Risks

• More extreme weather impacting the physical integrity of infrastructure and annual generation of power plants.
• Changes in precipitation levels impacting plant output.

Transition Risks

• Changes in climate politics impacting profitability.

Opportunities

• Increased attractiveness of investing in renewable energy due to tighter European climate policy.

Reporting Standards

Frameworks Used: GRI-core option

Third-party Assurance: Deloitte AS (limited assurance)

UN Sustainable Development Goals

• SDG 7: Affordable and Clean Energy
• SDG 13: Climate Action

Statkraft aims to contribute to the SDGs in ways most relevant to its business activities. Its primary business is to provide energy.

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Human rights
• Biodiversity
• Responsible supply chain
• Business ethics and compliance
• Occupational health and safety
• Water management
• Gender equality

Environmental Achievements

• Increased installed power generation capacity based on renewables by 433 MW to a total of 16 488 MW.
• 92.2% of power generation from renewable energy sources in 2020.
• Average carbon intensity of power generation at 28 kg CO2/MWh (about 12% of EU power generation carbon intensity).
• No serious environmental incidents in 2020.
• Mapping and improvement of habitats for specific species of particular concern.
• Restoration of road embankments, quarries and landfills through natural revegetation at Fosen wind farm.

Social Achievements

• Increased percentage of female leaders in all management positions to 26% (up from 23% in 2019).
• Employee engagement score of 91% (up from 84% in 2019).
• Implemented several measures to improve diversity and inclusion, including unconscious bias training for senior management.
• Continued community development initiatives in various countries of operation.
• Provided support to local organizations and health services in the influence areas of projects during the Covid-19 pandemic.

Governance Achievements

• Comprehensive compliance program covering corruption, fraud, money laundering, sanctions, export control, personal data protection, and competition law.
• In-depth group-wide Business Ethics and Compliance risk assessment conducted across all locations.
• Rollout of a new round of mandatory e-learning on business ethics.
• Implementation of a digital compliance tool for personal data protection.
• No serious compliance incidents.

Climate Goals & Targets

Environmental Challenges

• Three fatal accidents in India related to projects and operations.
• Covid-19 pandemic impacting all Statkraft markets and increasing certain operational risks.
• Difficulties in reaching agreements with affected groups regarding measures and compensation for the operational phase of the Fosen wind project.
• Risks related to biodiversity and ecosystem in the supply chain.
• Risks related to business ethics (e.g., bribery and corruption).
• Increased risk of fraud due to the Covid-19 pandemic.
• Challenges in predicting future trends accurately due to unreliable historical data for water management.

Mitigation Strategies

• Initiated investigations and implemented mitigating actions to prevent recurrence of accidents.
• Implemented several activities to understand and mitigate risks related to Covid-19, including ensuring employee health and safety and following up with suppliers.
• Proactive engagement with local stakeholders in projects in Chile.
• Strengthened efforts related to supply chain, including a new unit for supply chain follow-up and increased understanding of risks and opportunities.
• Implemented a comprehensive compliance program and regular risk assessments.
• Launched a fraud awareness initiative.
• Invested in R&D projects to refine inflow forecasts and improve performance in water management.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct based on internationally recognised standards.

Climate-Related Risks & Opportunities

Physical Risks

• Changes in precipitation patterns impacting hydropower output.
• Increased probability of extreme weather events.
• Damage to local infrastructure (roads and power lines).

Transition Risks

• Changes in power markets impacting Statkraft’s revenues.
• Uncertainties related to future revenues due to EU ETS and subsidies.
• Impact of EU Taxonomy on power markets.

Opportunities

• Increased demand for renewable energy due to emission reduction targets.
• Investment possibilities created by subsidies.

Reporting Standards

Frameworks Used: GRI-core option

Third-party Assurance: Deloitte AS (limited assurance)

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)
• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 15 (Life on Land)
• SDG 16 (Peace, Justice and Strong Institutions)

Statkraft assessed its impact on all 17 SDGs and focused on seven goals based on its group risk matrix, materiality analysis, corporate strategy, and value chain.

Environmental Metrics

ESG Focus Areas

• Health and safety
• Climate
• Diversity
• Compliance
• Human rights
• Responsible business practice

Environmental Achievements

• Reduced CO2e emissions from activities with ownership >50% to 1,235,400 tonnes in 2021 from 1,603,700 tonnes in 2020.
• 100% of Statkraft's electricity consumption is certified renewable.

Social Achievements

• Employee engagement score of 91 out of 100.
• 20% of employees received training on human rights issues in 2021.
• 95% of employees received training on anti-corruption in the last two years.

Governance Achievements

• Zero serious compliance incidents reported.
• Statkraft's Board members received training on human rights and anti-corruption in the last two years.

Climate Goals & Targets

Environmental Challenges

• The Norwegian Supreme Court found that the licences awarded for the Roan and Storheia wind farms were in violation of international human rights.
• Administrative fines in Brazil and Peru for unauthorized tree cutting and incomplete monitoring.

Mitigation Strategies

• Actions were taken to resolve the Supreme Court ruling on the Roan and Storheia wind farms.
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: Null

Third-party Assurance: Deloitte AS (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Action
• Biodiversity
• Human Rights
• Circular Economy

Environmental Achievements

• GHG intensity (scope 1+2) from electricity generation is one of the lowest in the EU energy sector (11 g CO2e/kWh in 2022)
• 100% of electricity consumption compensated with Guarantees of Origin
• Offsetting 100% of non-ETS direct emissions

Social Achievements

• Guarantees a living wage for all employees and requires the same for site-based workers
• Complies with national working hour regulations and ILO recommended limits

Governance Achievements

• Aligned approach to human rights with international agenda and available guidance and frameworks
• Regular corporate-level human rights risk assessments in line with the UN Guiding Principles

Climate Goals & Targets

Environmental Challenges

• Reducing indirect GHG emissions (scope 3)
• Managing biodiversity impacts from land and sea use change associated with renewable energy projects
• Ensuring a just transition to a net-zero economy that considers the impact on people

Mitigation Strategies

• Collaborating with major strategic suppliers to reduce scope 3 emissions
• Applying the principles of the mitigation hierarchy to minimize biodiversity impacts
• Implementing human rights due diligence at country and project level

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable procurement of wood for biomass supplies

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, EU Directives, IFC Performance Standards, UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7
• SDG 11
• SDG 13
• SDG 5
• SDG 8
• SDG 12
• SDG 15
• SDG 16

Statkraft's activities contribute to these SDGs through renewable energy production, responsible operations, and commitment to a just transition.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate action
• Circularity
• Biodiversity
• Human rights

Environmental Achievements

• Consolidated installed renewables capacity was 17 GW, and investment decisions were made for another 1.3 GW in 2023.
• The Group’s carbon intensity is among the lowest in the global energy sector. In 2023, it was 12 g CO2e/kWh and 96.8 per cent of Statkraft’s power generation was based on renewable energy sources.
• In 2023, 89 per cent of the generated waste from solar projects was recycled or reclaimed, leading to a reduction of 768 tonnes of CO2 emissions.

Social Achievements

• In 2023, Statkraft added 1321 employees to the workforce and had 6199 employees at the end of the year.
• In 2023, Statkraft Brazil worked on 10 social projects in Bahia State, benefitting over 150 families in the local community surrounding the Morro do Cruzeiro Wind Farm.
• The share of women across the organisation increased during 2023. A number of Diversity and Inclusion initiatives were implemented.

Governance Achievements

• There were no serious confirmed compliance incidents in 2023.
• The implementation of our compliance programme is on schedule, and the level of compliance prevention activity continues to be high.
• Statkraft issued three new green bonds, one in June and two in December totalling NOK 16.7 billion.

Climate Goals & Targets

Environmental Challenges

• High fuel and waste prices, and particularly a sharply increasing Norwegian CO2 tax on waste incineration, have contributed to unsatisfactory results in our district heating business.
• The inherent risks related to the solar supply chain remain challenging.
• The Fosen and Los Lagos cases have continued to present challenges and dilemmas related to renewables and indigenous rights.

Mitigation Strategies

• Developing green hydrogen is a strategic priority for Statkraft.
• Statkraft strongly opposes the use of forced labour and has implemented measures to address the risks through traceability obligations and audit rights.
• On 18 December 2023, the mediation process between Sør-Fosen sijte and Fosen Vind resulted in the parties entering into an amicable agreement

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainability requirements in tender documents
• Sustainability assessments of key suppliers
• Integrity checks through Dow Jones Risk Center
• Use of EcoVadis sustainability rating tool

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• High wind speeds
• Wildfires
• Changes in precipitation
• Drought

Transition Risks

• Changes in climate policies
• Legal restrictions
• Technological changes
• Market volatility
• Reputational risks

Opportunities

• Increased power production from hydropower due to increased run-off from glaciers
• Growth in renewable energy capacity

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations, UN Global Compact, OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, IFC Performance Standards

Third-party Assurance: Deloitte AS (limited assurance, excluding EU Taxonomy section)

UN Sustainable Development Goals

• SDG 5
• SDG 7
• SDG 8
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 16

The report details how Statkraft's initiatives contribute to these goals.

Sustainable Products & Innovation

• Green hydrogen
• Biofuel
• EV charging infrastructure
• Grid stabilization services

Environmental Metrics

ESG Focus Areas

• Climate
• Biodiversity
• Circular Economy
• Just Transition

Environmental Achievements

• 97% renewable energy share in 2023
• Corporate GHG intensity (scope 1+2) of 12 g CO2e/kWh in 2023 (compared to EU average of 258 g CO2e/kWh in 2022)

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increasing exposure of assets to extreme weather events and changes in expected annual production
• Strengthening sustainability agenda with increasing regulatory requirements and expectations
• Biodiversity loss due to land and sea use change and climate change

Mitigation Strategies

• Strengthening asset robustness
• Establishing clear near- and long-term targets with detailed action plans and management systems
• Exploring net biodiversity gain for new energy developments
• Integrating possibilities for improvements into authority-driven processes revising water management plans and hydropower concession terms

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Purchasing low-carbon materials
• Using electric machinery

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Changes in expected annual production

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, IFC Performance Standards, UN Sustainable Development Goals (SDGs)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 11 (Sustainable cities and communities)
• SDG 13 (Climate Action)
• SDG 5 (Gender equality)
• SDG 8 (Decent work and economic growth)
• SDG 12 (Responsible consumption and production)
• SDG 15 (Life on land)
• SDG 16 (Peace, justice and strong institutions)

Statkraft's impact on these SDGs is assessed and addressed through its core business and operational practices.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed