Climate Change Data

Environmental Metrics

ESG Focus Areas

• Renewable energy
• Sustainability
• Circular economy

Environmental Achievements

• Sick leave was 0% (2018: 6.4%)
• No serious work incidents or accidents

Social Achievements

• Strive to ensure that there is no discrimination due to gender, ethnicity, national origin, descent, race, religion or functional disability
• One of three Board members at year end was a woman

Governance Achievements

• Implemented formal guidelines, procedures, standards and routines in relation to anti-bribery and corruption

Climate Goals & Targets

Environmental Challenges

• Lower license fees from the Dana Western Isles agreement
• No milestone payments from Shell Penguins license agreement in 2019
• Market risk, credit risk, currency risk and liquidity risk
• Uncertainty of financial markets
• Field development and reservoir risk
• Main income linked to two contracts
• Uncertainty of future rewards for green investments in wind development
• Risk that portfolio companies miss out on opportunities due to local risks

Mitigation Strategies

• Hedged a portion of the expected USD income through December 2019
• Comprehensive review of paid-in capital
• Cost efficient operating model
• Focus on value creating activities
• Focus on wind development projects
• Risk management program to minimize potential adverse effects on financial performance

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Wind development projects

Reporting Standards

Frameworks Used: Norwegian Code of Practice for Corporate Governance

Environmental Metrics

ESG Focus Areas

• Sustainability
• Health, Safety and Environment (HSE)

Environmental Achievements

• No serious work incidents or accidents resulting in personal injuries or damages to materials or equipment occurred in 2020. There were no Lost Time Incidents (LTI) during 2020.

Social Achievements

• The work environment is positive, and the Board and management continue to focus on equal opportunities for men and women. One of three Board members at year-end was female. The Company strives to ensure that there is no discrimination due to gender, ethnicity, national origin, descent, race, religion or functional disability.

Governance Achievements

• The Company aims at maintaining sound corporate governance routines that provide the basis for long-term value creation, to the benefit of shareholders, employees, other stakeholders and society at large. As a guiding basis for its conduct of corporate governance, the company uses the national Norwegian Code of Practice for Corporate Governance, of 17 October 2018.

Climate Goals & Targets

Environmental Challenges

• High returns require an industrialised approach and a large portfolio of projects.
• The project development process for wind and solar parks is also exposed to risks. The process for obtaining concession from relevant authorities can vary in different countries, but most countries require local acceptance, and in some countries the local municipality has veto rights.
• The recent Covid-19 virus could potentially affect revenues for a short period if the FPSO crew is dismissed due to infection risk or similar. Magnora could experience a period without revenues because of the Dana FPSO halting production due to the Covid-19 virus.
• The virus could also delay the construction and commissioning of the Shell Penguins vessel currently being built in China, which would then delay the milestone payments from Shell.

Mitigation Strategies

• Diversification coupled with a professional team allows us to quickly choose the best project opportunities.
• The Company’s overall risk management programme focuses on identified uncertainties and seeks to minimise potential adverse effects on its financial performance.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Renewable Energy

Social Achievements

• Strengthened its team adding new members bringing in valuable new and complementary competences.

Climate Goals & Targets

Environmental Challenges

• High operating costs due to increased business development activities, transactions and increased ownerships in two portfolio companies.
• Risks related to military installations and training areas in addition to wildlife risks.
• Market price of electricity can influence the profitability and value of Magnora’s investments.
• Unforeseen financial difficulties on the counterparty’s side may arise and cause material adverse effects on the financial condition, cash flows and/or prospects of Magnora.
• Competition is significant as companies in other industries are trying to benefit from the positive policy support from governments.
• The recent Covid-19 virus could potentially affect revenues.
• Regulatory risks can be changes in the regulatory environment that have a material adverse effect on Magnora’s operations and financial performance.
• Negative cash flow and lack of financial performance from associated companies affects the Group.
• Loss of key personnel is a risk to the Group.

Mitigation Strategies

• Diversification to mitigate the various inherent risks in each segment of the renewable energy production industry.
• Ongoing process of identifying outsourcing alternatives and potential recruitment to cover the resource needs of the Group.
• The original strategy of building a robust portfolio across several segments and geographical areas has proven effective, as it reduces political and country-specific risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Environmental Metrics

ESG Focus Areas

• Renewable Energy

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Higher operating costs due to increased one-off bonus payments, audit fees, option costs adjustments, and costs associated with the reorganization of the Vindr Group.
• Risks related to market, project, reservoir, credit, currency, renewable license, concession, interest rate, inflation, liquidity, climate, and regulatory risks.
• Potential financial difficulties of counterparties (Dana Petroleum and Shell).
• Competition from larger companies with better access to skilled personnel and funding.
• Potential impact of Covid-19 on revenues and project timelines.
• Access to capital for capital-intensive projects.
• Loss of key personnel.

Mitigation Strategies

• Diversification of portfolio projects and companies to mitigate risks.
• Close dialogues with financial institutions and a strict timeline for cash flow.
• Ongoing process of identifying outsourcing alternatives and potential recruitment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Changes in renewable energy policies, tax policies, or regulatory environment.

Opportunities

• Development of renewable energy projects and companies.

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Perovskite-based PV power booster technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Renewable Energy

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Market risk, project risk, reservoir risk, credit risk, currency risk, renewable license risk, concession risk, interest rate risk, inflation risk, liquidity risk, climate risks, and regulatory risks.
• Project development process risks (concession obtaining, local acceptance, public opinion, military installations, wildlife risks)
• Global transportation constraints, war in Ukraine impacting project costs and material access
• Market price of electricity influenced by government subsidies, supply and demand, alternative energy sources, development costs, and efficiency improvements
• Financial difficulties of counterparties (Dana Petroleum and Shell)
• Competition from larger companies with better access to resources
• Covid-19 potentially affecting revenues and project timelines
• Global climate change and extreme weather conditions
• Regulatory risks (changes in renewable energy policies, tax policies)
• Negative cash flow and lack of financial performance from associated companies
• Access to capital for capital-intensive projects
• Loss of key personnel

Mitigation Strategies

• Diversification of portfolio projects and companies to mitigate risks
• Close dialogues with financial institutions and strict timeline for cash flow matching investment payments with gains from farm-downs and exits
• Ongoing process of identifying outsourcing alternatives and potential recruitment
• Robust portfolio across several segments and geographical areas to reduce political and country-specific risks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Perovskite-based PV power booster technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Renewable Energy

Environmental Achievements

• Net share of asset sales in portfolio companies expected to be 150-250 MW for full year 2022

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Market risk, electricity price risk, indirect equipment price risk, customer risk, project risk, reservoir risk, credit risk, currency risk, renewable license risk, concession risk, interest rate risk, inflation risk, liquidity risk, climate risks, regulatory risks
• Political and public resistance to onshore wind projects in Norway and Sweden
• Global transportation constraints and the war in Ukraine impacting project costs and access to materials

Mitigation Strategies

• Diversification of portfolio projects and companies to mitigate risks
• Close dialogues with financial institutions and strict timeline for cash flow
• Replacing shorter-term overdraft facility with a NOK 100 million loan facility with longer term
• Identifying outsourcing alternatives and potential recruitment to cover resource needs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: IFRS

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

• Renewable Energy

Environmental Achievements

• One solar PV project in South Africa granted Environmental Authorization (260 MW capacity, estimated production of over 600 GWh/year).

Social Achievements

• Magnora Offshore Wind is working closely with the local community in Scotland to investigate how local supply chain can be developed.
• Established Neptun Tromsø AS to develop a large-scale production facility for green ammonia, serving maritime and chemical industries.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Market risk, electricity price risk, equipment price risk, customer risk, project risk, credit risk, currency risk, renewable license risk, concession risk, interest rate risk, inflation risk, liquidity risk, climate risks, regulatory risks.
• Public opinion and local municipality veto rights can affect licensing decisions and cause delays in project development.
• Global transportation constraints and the war in Ukraine can affect project costs and access to materials.
• Potential financial difficulties of counterparties (Dana Petroleum and Shell).
• Competition from companies with better access to personnel and funding.
• Covid-19 could affect revenues from FPSO operations and delay milestone payments from Shell.
• Changes in renewable energy policies, tax policies, or licensing regulations.
• Negative cash flow and lack of financial performance from subsidiaries and associated companies.
• Liquidity and access to capital for capital-intensive projects.
• Loss of key personnel.

Mitigation Strategies

• Diversification of portfolio projects and companies to mitigate risks.
• Close dialogues with financial institutions and a strict timeline for cash flow.
• Replacement of shorter-term overdraft facility with a NOK 100 million loan facility.
• Ongoing process of identifying outsourcing alternatives and potential recruitment.
• Hedging currency risk related to Shell Penguins contract.
• Normal governance processes to mitigate risks in subsidiaries and associated companies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Changes in renewable energy policies, regulatory environment

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: IFRS

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

• Renewable Energy
• Sustainable Development
• Green Transition

Environmental Achievements

• Achieved 231 MW net share of asset sales in portfolio companies for 2022.
• Added an 80MW/160MWh battery energy storage (BESS) project to its UK portfolio.

Social Achievements

• Magnora South Africa team grew to 8 full-time employees.
• Magnora Offshore Wind is working closely with the local community to investigate how local supply chain can be developed.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Grid connection constraints in South Africa.
• Public and political resistance to onshore wind projects in Norway and Sweden.
• Risks related to military installations, training areas, and wildlife.
• Global transportation constraints and the war in Ukraine impacting project costs and access to materials.
• Market price of electricity influencing profitability.
• Currency risk related to USD revenues.
• Reliance on two major customers (Dana Petroleum and Shell).
• Competition from larger companies with better access to personnel and funding.
• Potential for Covid-19 to affect revenues and project timelines.
• Regulatory risks and changes in the renewable energy policies.
• Liquidity and access to capital for capital-intensive projects.
• Risk of loss of key personnel.
• Risk of project sale cancellation due to lack of progress.

Mitigation Strategies

• Diversification of portfolio projects and companies to mitigate risks.
• Continuous management of grid constraints in South Africa.
• Closely following developments in Norway and Sweden regarding onshore wind.
• Emphasis on risk management in project development.
• Hedging currency risk related to Shell Penguins contract.
• Close dialogues with financial institutions and strict timeline for cash flow.
• Replacing shorter-term overdraft facility with a longer-term loan facility.
• Identifying outsourcing alternatives and potential recruitment.
• Prioritizing projects with shorter development cycles (solar PV).
• Continuous evaluation and investigation of investment opportunities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Changes in renewable energy policies

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

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

Investments in renewable energy projects and companies contribute to these goals.

Sustainable Products & Innovation

• Perovskite-based PV power booster technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Health, Safety and Environment (HSE)
• Human Rights
• Anti-Corruption
• Equality and Diversity

Environmental Achievements

• Facilitated renewable energy projects, providing clean energy to thousands of households.
• Avoided bottlenecks and found locations without serious environmental impact.

Social Achievements

• Maintained an inclusive culture and ensured equal opportunities for men and women.
• Zero Lost Time Incidents (LTI) during 2023.
• Implemented an equality and diversity policy and included this topic in the annual ethics and compliance training for all employees.

Governance Achievements

• Used the national Norwegian Code of Practice for Corporate Governance.
• Implemented a code of conduct, anti-corruption policy, and business ethics policy.
• Annual ethics and compliance training for all employees.

Climate Goals & Targets

Environmental Challenges

• High activity level compared to the number of employees, risking employee overload.
• Employees occasionally travel to high-risk locations.
• Potential future environmental risks related to regulatory changes and reputational risks.
• Competition from larger companies with better access to personnel and funding.
• Potential impact of pandemics on operations and revenues.
• Climate change impacts on project viability and energy prices.
• Regulatory risks related to renewable energy policies and licensing regulations.
• Liquidity and access to capital for capital-intensive projects.
• Risk of loss of key personnel.
• Risk of project sales prior to ready-to-build phase and final payments.
• Electricity price risk, equipment price risk, customer risk, project risk, reservoir risk, credit risk, currency risk, renewable license risk, concession risk, interest rate risk, inflation risk, liquidity risk, climate risks, regulatory risks, and other indirect risks.

Mitigation Strategies

• Close monitoring of employee workload, outsourcing alternatives, and recruitment.
• Managing transportation in high-risk locations with local offices or partners.
• Close monitoring of the situation, using outside support, and hiring more employees when sufficient work for an additional employee is reached.
• Diversification across renewable technologies and geographical areas.
• Risk assessments, standards, extensive due diligence work, and a strong commitment to local stakeholders.
• Close dialogues with financial institutions and a strict timeline for cash flow.
• Replacing a shorter-term overdraft facility with a NOK 100 million loan facility with longer term and having a total of NOK 150 million in loan facilities.
• Ongoing process of identifying outsourcing alternatives and potential recruitment.
• Sales of projects are typically closed when all permits, grid connections and/or equipment and long lead items are secured. Failure by the customer to pay results in the project returning to the Group.

Supply Chain Management

Responsible Procurement

• Selection, qualification, and follow-up of suppliers and partners.

Climate-Related Risks & Opportunities

Transition Risks

• Changes in renewable energy policies

Opportunities

• Increased demand for renewable energy

Reporting Standards

Frameworks Used: Norwegian Code of Practice for Corporate Governance

Third-party Assurance: Deloitte AS

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 13

Magnora's business is directly linked with the green transition. Every successful project provides clean, renewable energy to thousands of households. Building new infrastructure for generation of renewable energy will enable existing industry to become more sustainable by replacing fossil and nuclear energy sources with renewable energy. By investing in renewable energy solutions that support the drop in global emissions, Magnora makes a positive contribution to combat climate change.

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Market risk, electricity price risk, indirect equipment price risk, customer risk, project risk, land lease risk, reservoir risk, credit risk, currency risk, renewable license risk, concession risk, interest rate risk, inflation risk, liquidity risk, climate risks, regulatory risks
• Global transportation constraints, war in Ukraine impacting project costs and access to materials
• Competition from companies with better access to personnel and funding
• Loss of key personnel due to reliance on specialized professionals
• Liquidity and access to capital for capital-intensive projects

Mitigation Strategies

• Diversification of portfolio projects and companies to mitigate risks
• Close dialogues with financial institutions and strict timeline for cash flow matching investment payments with gains from farm-downs and exits
• Ongoing process of identifying outsourcing alternatives and potential recruitment

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions impacting habitat

Transition Risks

• Regulatory changes in renewable energy policies, tax policies

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Market risk, electricity price risk, indirect equipment price risk, customer risk, project and contractual risk, land lease risk, reservoir risk, credit risk, currency risk, renewable license risk, concession risk, interest rate risk, inflation risk, liquidity risk, climate risks, regulatory risks
• Global transportation constraints, war in Ukraine, changing global climate, extreme weather conditions
• Competition from other companies in renewable energy sector
• Regulatory risks (changes in renewable energy policies, tax policies)
• Negative cash flow and lack of financial performance from subsidiaries and associated companies
• Liquidity and access to capital for capital-intensive projects
• Loss of key personnel

Mitigation Strategies

• Diversification of portfolio projects and companies to mitigate risks
• Close dialogues with financial institutions and a strict timeline for cash flow that matches future investment payments with investment gains from farm-downs and exits
• Ongoing process of identifying outsourcing alternatives and potential recruitment to cover the resource needs of the Group
• Magnora is represented on all boards of its subsidiaries and associated companies and mitigates risks through normal governance processes
• Currency risk related to the remaining USD 8.6 million revenues from the Shell Penguins contract has been hedged by selling USD and buying NOK.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather conditions

Transition Risks

• regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

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

Climate Goals & Targets

Environmental Challenges

• Securing concessions from relevant authorities varies across countries, typically requiring local approval, with some countries granting veto rights to local municipalities. Public opinion and these veto rights can influence licensing decisions and have, in some cases, prompted changes in the political process governing regulatory frameworks for building and operating renewable energy plants.
• As the Company's asset portfolio matures, the necessity to engage in a larger number of increasingly complex commercial contracts grows. This heightened involvement exposes the Group to greater risks associated with commercial disputes stemming from disagreements and uncertainties over contract interpretations.
• The Group may fail to identify relevant issues related to investment and farm-down partners during its due diligence process and may as a result for some investments experience weaker than expected results.
• We might also experience that farm-down partners or companies who acquire our businesses change strategy and therefore stop funding and investing.
• The market price of electricity can influence the profitability and value of Magnora’s investments.
• Competition in the renewable energy sector is significant as companies in other industries are trying to benefit from the positive policy support from governments pushing for improvements in CO2 emissions.
• Several companies that Magnora competes with are parts of larger groups, giving them better access to key personnel and funding.
• The global climate appears to be changing, and the average temperature is predicted to rise globally, causing more extreme weather conditions, and impacting habitat.
• Regulatory risks can be changes in the regulatory environment that have a material adverse effect on Magnora’s operations and financial performance. Changes in renewable energy policies, tax policies, or the regulatory environment could affect industries the Group operates in. Changes in the licensing regulations can for instance cause delays in development and construction of projects.
• Through the demerger of its legacy business, the Group has limited its exposure to the related risks based on its remaining 30 percent ownership in Hermana Holding ASA.
• The remaining legacy licensing agreement is with a customer with a strong financial basis. However, as with suppliers and customers in general, there is a risk that unforeseen financial difficulties on the counterparty’s side may arise and cause material adverse effects on the financial condition, cash flows and/or prospects of Magnora.
• The Group is also subject to currency risk, field development and reservoir risk in situations where the license fee is tied to the field development and production such as the Shell Penguins’ license fee income paid in USD.
• The Group derives all its cash flow from financial investments, one legacy agreement and its subsidiaries and associated companies. Consequently, any negative cash flow or underperformance from those companies directly impacts the Group.
• The exposure is limited to the Group’s invested amount in those companies and is closely linked to the companies’ ability to execute its strategy and manage risk.
• Magnora is represented on all boards of its subsidiaries and associated companies and mitigates risks through normal governance processes.
• The Group faces liquidity and capital access risks due to its increased investment in capital-intensive projects.
• Loss of key personnel is a risk to the Group as it operates with a staff of highly specialised professionals that may take time to replace if needed.
• Sales of projects prior to the ready-to-build phase and final payments are typically closed when all permits, grid connections and/or equipment and long lead items are secured.
• The full payment of a project sale might be at risk depending on the exact contract terms.
• Lack of progress in a project can lead to a project sale being cancelled if the Group or a group company are unable to replace it with an alternative project.

Mitigation Strategies

• The Group’s overall risk management programme aims to mitigate potential adverse effects on its financial performance arising from these uncertainties in the financial markets.
• The Company strategically selects its portfolio projects and companies, focusing on diversification to mitigate the various inherent risks across various segments of the renewable energy production industry.
• To manage liquidity and capital access risks, it maintains close communication with financial institutions and implements a strict cash flow timeline that synchronizes investment payments with proceeds from farm-downs and exits.
• Mitigation of personnel loss risk is an ongoing process of identifying outsourcing alternatives and potential recruitment to cover the resource needs of the Group.
• The currency risk associated with the remaining USD 8.6 million in revenues from the Shell Penguin’s contract has been hedged by selling USD and buying NOK.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Securing concessions from authorities varies across countries and can be influenced by public opinion and local veto rights, leading to delays or denials.
• Increased complexity of commercial contracts as the asset portfolio matures, leading to greater risks of commercial disputes.
• Potential for weaker-than-expected results from investments due to failure to identify relevant issues during due diligence.
• Risk of farm-down partners changing strategy and ceasing funding.
• Market price of electricity influencing profitability and value.
• Competition in the renewable energy sector from companies with better access to personnel and funding.
• Global climate change causing extreme weather conditions and impacting habitat.
• Geopolitical tensions increasing uncertainty in energy markets, affecting supply chains and economic volatility.
• Negative cash flow or underperformance from subsidiaries and associated companies directly impacting the Group.
• Liquidity and capital access risks due to investment in capital-intensive projects.
• Risk of loss of key personnel.
• Risk of project sale cancellation due to lack of progress.
• Regulatory risks from changes in renewable energy policies, tax policies, or the regulatory environment.

Mitigation Strategies

• Strategic selection of portfolio projects and companies, focusing on diversification to mitigate risks.
• Close communication with financial institutions and implementation of a strict cash flow timeline.
• Identifying outsourcing alternatives and potential recruitment to cover resource needs.
• Sales of projects prior to the ready-to-build phase are typically closed when all permits, grid connections and/or equipment and long lead items are secured.
• Risk mitigation through normal governance processes (represented on all boards of subsidiaries and associated companies).

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products