Climate Change Data

Environmental Metrics

ESG Focus Areas

• Biodiversity
• Climate Change
• Renewable Energy

Environmental Achievements

• Implemented protection and compensation measures in projects, often in cooperation with ecological experts and nature organizations.
• Adopted a layout to minimize the impact on birdlife at the Åmot-Lingbo Tönsen wind farms.
• Exploring opportunities such as seabed oxygenation and the establishment of mussel and algae beds in offshore wind projects.

Social Achievements

• Engaging with landowners and other external stakeholders to increase understanding of the link between renewable energy and biodiversity.
• Creating forums to share knowledge and experience of biodiversity with authorities, landowners, suppliers, and customers.

Governance Achievements

• Developing a plan for both compensation and additional nature conservation measures in project areas acquired from other operators.
• Measuring, documenting, and communicating work on biodiversity at the project level and reporting at the company level in accordance with a recognized framework.

Climate Goals & Targets

Environmental Challenges

• Lack of standardized methods for measuring biodiversity or impacts, hindering transparency and credibility regarding nature positivity activities.
• Balancing renewable energy expansion with the need to avoid negative impacts on nature.

Mitigation Strategies

• Researching, identifying, and implementing biodiversity frameworks and models to communicate the impact of work clearly and transparently.
• Collaborating with scientists, universities, and environmental organizations to increase understanding of the link between renewable energy and biodiversity.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science Based Targets for Nature

UN Sustainable Development Goals

• SDG 13 (Climate Action)
• SDG 15 (Life on Land)
• SDG 17 (Partnerships for the Goals)

OX2's biodiversity strategy contributes to these SDGs by aiming for nature-positive wind and solar farms, mitigating climate change, and collaborating with various stakeholders.

Environmental Metrics

ESG Focus Areas

• Foundation for good governance
• Positive contributions to climate and nature
• Sustainable leadership
• Local engagement

Environmental Achievements

• GHG intensity from commissioned projects reduced to 9.6 gCO2e/kWh
• 78% of commissioned projects applied the mitigation hierarchy for biodiversity

Social Achievements

• Employee engagement index of 4.1 out of 5.0
• Developed a new Local Engagement Policy

Governance Achievements

• Adopted a new sustainability policy
• Implemented a risk policy clarifying risk management responsibilities

Climate Goals & Targets

Environmental Challenges

• Limited electricity grid access
• Low electricity prices
• Reduced supply of and increased prices of project rights
• Increased competition
• Lack of skills and ability to retain key employees
• Supply chain disruption and higher prices
• IT security and risks related to loss of data
• Delays and cost overruns in construction projects
• Geopolitical conditions, political decisions, changes in government support systems
• Breaches of anti-corruption laws

Mitigation Strategies

• Plans for grid connection in all projects, continuous work with public authorities and grid owners
• Monitoring electricity market developments, developed PPA function and models
• Continuous dialogue with project rights developers, strong market position, geographical expansion, investment in own development
• Continuous monitoring of developments, adapting product portfolio
• Corporate culture based on common values, talent management, employee and incentive plans
• Good relationships with key suppliers, competitive purchasing processes
• Information security framework based on ISO/IEC 27001:2017, increased security awareness
• Project organization to monitor work, reputable suppliers, fixed-price contracts, time margins
• Diversification of technology and geography, proactive engagement with politicians
• Business ethics risk management, background checks, anti-corruption training, whistleblowing channel

Supply Chain Management

Supplier Audits: On-site audits of two solar module suppliers in China

Responsible Procurement

• Code of Conduct
• Supplier Code of Conduct
• Due diligence framework
• Environmental, health, safety, and social requirements document

Climate-Related Risks & Opportunities

Physical Risks

• Supply chain disruptions
• Increased heat losses
• Direct damage from extreme weather

Transition Risks

• Unfavorable policies and legislation
• Increased costs for products and services
• Stigmatization of technology

Opportunities

• Favorable policies and legislation
• Technological advances to increase resilience
• Increased demand for renewable energy
• Warmer climate means less maintenance
• Changed wind conditions increasing electricity generation

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, TNFD, EU Taxonomy

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Deloitte AB

UN Sustainable Development Goals

• SDG 7

Increasing renewable energy generation contributes to SDG 7 (Affordable and clean energy)

Sustainable Products & Innovation

• Agrivoltaics projects
• SF6-free switchgear

Environmental Metrics

ESG Focus Areas

• good governance
• contribution to climate and nature
• sustainable leadership
• local commitment

Environmental Achievements

• One project, Bredhälla energy storage, was commissioned during the second quarter. Measures taken to mitigate environmental damage and promote biodiversity include creating fauna depots and stone piles, as well as active elevation adjustments to reduce gravel transportation.

Social Achievements

• An employee survey conducted in the second quarter indicated strong engagement among the employees. A program was launched during the quarter to further strengthen our health and safety culture. In May, an internal sustainability week was held to raise awareness and encourage involvement in sustainability matters.
• Accidents resulting in sick leave continue to decrease compared to the previous year.

Governance Achievements

• OX2’s 2023 annual and sustainability report was published in April. The sustainability report was reviewed for the first time, one of several steps the company has taken to prepare for reporting in alignment with the EU’s new Corporate Sustainability Reporting Directive (CSRD).

Climate Goals & Targets

Environmental Challenges

• The eNPS (Employee Net Promoter Score) dropped from 39 to 19, attributed to challenges of recent years, including higher interest rates and difficulties in securing capital for major projects, as well as OX2’s recruitment of many new employees in recent years.
• Higher interest rates have had an impact on the financing market.
• Many of our customers still have lengthy decision-making processes and we anticipate that most of this year’s earnings will occur in the fourth quarter.

Mitigation Strategies

• A program was launched during the quarter to further strengthen our health and safety culture.
• OX2 has made substantial investments in both the organization and project development in recent years, setting the stage for the company to reach its targets of at least a 25 percent Compound Annual Growth Rate (CAGR) in operating profit from 2023 to 2027.
• In 2024, the increase in personnel and project development costs is expected to be below 5 percent for the full year compared to 2023.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EU’s new Corporate Sustainability Reporting Directive (CSRD)