Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Mitigated approximately 3.4 million tons of CO2 compared to coal in 2011.
• Achieved a 1 to 500 ratio of CO2 emitted to CO2 mitigated (approximately 0.002).

Social Achievements

• Conducted over 350 public and private tours in 2010 and 2011, 78 of which were for student groups.
• Supported various educational institutions through internships, graduate student funding, and research.
• Provided community support in Guatemala and Kenya, including building schools, providing medical care, and supporting local initiatives.

Governance Achievements

• Established and maintains adequate internal control over financial reporting and is in compliance with the Sarbanes-Oxley Act (SOX).
• Has a dividend policy that is expected to distribute at least 20% of annual profits.

Climate Goals & Targets

Environmental Challenges

• Long lead times in the permitting process for geothermal projects increase development risk and project costs and delay timelines.

Mitigation Strategies

• Ormat worked closely with the Nevada Bureau of Land Management office to encourage streamlining of the geothermal permitting process.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ormat prioritizes sourcing products and services from local vendors and suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Certifications: ISO 14001

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

• Environmental
• Social
• Governance

Environmental Achievements

• Generated approximately 4.3 million MWh of electricity in 2013 from geothermal and REG sources, offsetting millions of tons of CO2 emissions compared to fossil fuel-based electricity generation.
• Completed expansion of Olkaria III geothermal complex in Kenya, Don A. Campbell geothermal power plant in Nevada, and acquisition of Platanares project in Honduras.
• Pioneered the world's first fully dispatchable geothermal facility at Puna Geothermal Venture in Hawaii.
• Refurbished and updated the Mammoth Pacific geothermal power plant in California, increasing efficiency and lowering maintenance costs.
• Opened the largest single binary power plant in New Zealand (Ngatamariki).

Social Achievements

• Provided community investment in education, healthcare, and environmental protection in various countries of operation.
• Emphasized local hiring during construction of Olkaria III in Kenya.
• Established a relief fund for employees impacted by Typhoon Haiyan in the Philippines.

Governance Achievements

• Introduced a new Code of Business Conduct and Ethics in 2013.
• Complied with Sarbanes-Oxley Act (SOX) regulations.
• Maintained a dividend policy and employee bonus program.

Climate Goals & Targets

Environmental Challenges

• Increase in vehicle safety incidents in 2013.
• Potential environmental impacts from geothermal development (e.g., impact on Greater Sage Grouse at McGinness Hills).

Mitigation Strategies

• Implemented vehicle tracking system to improve driver behavior.
• Adopted proactive protective measures to mitigate impacts on Greater Sage Grouse at McGinness Hills (e.g., construction hour controls, fencing, underground piping).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Advocates purchasing goods and services from local suppliers whenever possible.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3 guidelines

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Ormat Energy Converter (OEC)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Generated more than 4.83 million MWh of electricity in 2015, mitigating CO2 emissions compared to fossil fuel-based sources.
• 100% reinjection and recirculation of geothermal fluids back into reservoirs.
• Minimized facility footprint through various construction practices at McGinness Hills.

Social Achievements

• Community investment in education, healthcare, and environmental protection.
• Community outreach programs in various locations (Hawaii, California, Honduras, Guatemala, Kenya).
• Hiring of local workers for facility positions in Honduras.

Governance Achievements

• Fully independent eight-member Board of Directors.
• Compliance certificate signed by all employees, including board members and senior management.
• Adoption of a Conflict Minerals Policy in 2014.

Climate Goals & Targets

Environmental Challenges

• Potential impacts of geothermal operations on water systems (addressed through monitoring and community engagement).
• Wildlife impacts near geothermal facilities (mitigated through monitoring programs and habitat management).

Mitigation Strategies

• Extensive monitoring of water systems and transparent sharing of data with stakeholders.
• Wildlife monitoring programs to understand and mitigate impacts on species like Greater Sage Grouse.

Supply Chain Management

Responsible Procurement

• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 guidelines

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Climate Change Mitigation
• Water Management
• Waste Management
• Biodiversity
• Energy Efficiency
• Greenhouse Gas Emissions
• Occupational Health and Safety
• Employee Well-being
• Corporate Governance
• Ethical Business Conduct
• Local Community Engagement
• Supply Chain Management
• Human Rights

Environmental Achievements

• Generated 6,238,272 MWh (net) of electricity in 2019, producing 7.1 million tons less greenhouse gases compared to non-renewable technologies.
• Reduced Scope 1 and 2 emissions intensity by 5% per revenue by the end of 2021 (target).

Social Achievements

• Maintained an 86% employee retention rate.
• Implemented various community development programs in Kenya, Guatemala, Honduras, and the U.S.
• Provided training and educational opportunities to employees, averaging 7 hours per employee.

Governance Achievements

• Established an Anti-Corruption and Anti-Bribery Policy.
• Implemented a new Environmental and Climate Change Policy, Human Rights and Labor Policy, and Stakeholder Engagement Policy.
• Improved diversity of management team.

Climate Goals & Targets

Environmental Challenges

• Prolonged elevated temperatures in the Western United States impacted generating capacity and revenues in Q4 2019.
• Potential adverse impacts of climate change on traditional weather patterns reducing certainty of generating capacity modeling.
• Recovered Energy units may be affected by higher-than-average winter temperatures.

Mitigation Strategies

• Developed strategies to account for projected impact of seasonal temperature fluctuations.
• Expanded data collection methods to improve GHG emissions measurement.
• Established a target for a 5% reduction per revenue in Scope 1 and 2 emissions by the end of 2021.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Business Conduct and Ethics
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land

Ormat's business activities and community engagement contribute to these SDGs through renewable energy generation, job creation, community development, and environmental protection.

Sustainable Products & Innovation

• Geothermal and recovered energy power plants
• Energy storage solutions

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change Mitigation
• Water Management
• Waste Management
• Biodiversity
• Energy Efficiency
• Local Employment & Development
• Employee Training & Development
• Workplace Diversity
• Corporate Governance
• Executive Compensation
• Anti-corruption

Environmental Achievements

• Reduced carbon footprint in Scope 1 and 2 by an absolute 29%
• Increased disclosure and transparency of Scope 3 emissions to include freight.
• Avoided 46,458 tons of GHG emissions in Scope 1 and 2 compared to 2019.

Social Achievements

• Continued full-capacity employment of 99% of our employees throughout the COVID-19 pandemic.
• Delivered thousands of food bags to local communities in Guatemala.
• 100% of management hired from local communities in our plants.
• Employees completed a total of 42,226 training hours.

Governance Achievements

• Updated Anti-Corruption policy.
• Developed a Political Contributions and Activities Policy.
• Began recording the amount of employees that have received anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Reduced generation in warm periods due to lower heat differential between geothermal fluid and ambient surroundings.
• Recovered Energy units may be affected when winter temperatures are higher than average, reducing gas flow.
• Power plants are susceptible to extreme weather events such as hurricanes and tornadoes.
• Potential impacts of climate change on traditional weather patterns reducing certainty of modeling efforts.

Mitigation Strategies

• Equipment designed to withstand extreme weather events.
• Account for projected impact of seasonal temperature fluctuations based on historical experience.
• Steam Turbine Decommissioning and conversion of artesian wells to pumped wells to eliminate non-condensed gases.
• Reduction of energy use due to COVID-19.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct published in 2021.
• Conflict Minerals Policy in compliance with SEC’s Dodd-Frank Act.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Drought
• Wildfires
• Landslides
• Floods

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)

Ormat's initiatives contribute to these goals through renewable energy generation, infrastructure development, and community engagement.

Sustainable Products & Innovation

• Binary geothermal systems
• Recovered energy power plants

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Economic

Environmental Achievements

• 22% absolute reduction in scope 1&2 emissions from 2019 to 2021
• 16.5% improvement in GHG emissions intensity by generation compared to 2020
• 8,590 GWh sustainable energy generated
• 9% increase in generation capacity compared to 2020
• 98% sustainable electricity use

Social Achievements

• 84% retention rate in 2021
• 32,000+ training hours completed by employees
• 1.1 total recordable injury rate (TRIR)
• Diversity & Inclusion training for all drilling department employees
• 100% of plant management employed from local communities

Governance Achievements

• Alignment of disclosures with TCFD recommendations
• Annual Board meeting devoted to long-term business strategy
• ESG and climate change considerations factored into business strategy
• Integration of TCFD recommendations into risk management process and disclosures

Climate Goals & Targets

Environmental Challenges

• Global pandemic
• Global supply chain constraints
• Seasonal temperature fluctuations impacting geothermal energy generation
• Extreme weather events potentially affecting power plants
• Increased Scope 1 emissions due to augmented geothermal wells drilling

Mitigation Strategies

• Expanded data collection methods for GHG emissions
• Technological improvements increasing energy production efficiency and reducing carbon footprint
• Implementation of FLIR cameras to locate and address emission leaks
• Plans to replace Beowawe plant with Ormat’s binary technology system
• Converting artesian wells to pumped wells with 100% reinjection

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (published in 2021)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Droughts
• Tsunamis
• Wildfires
• Landslides
• Floods

Transition Risks

• Not disclosed

Opportunities

• Growth of geothermal energy market

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 9001, ISO 45001

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 9 (Industry, innovation, and infrastructure)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)

Ormat's activities contribute to these SDGs through renewable energy generation, job creation, technological innovation, resource management, and climate change mitigation.

Sustainable Products & Innovation

• Ormat Energy Converter
• VARC (vapor absorption refrigeration system)

Awards & Recognition

• FUNDAHRSE Seal of Socially Responsible Company (GeoPlatanares)

Environmental Metrics

ESG Focus Areas

• Climate Change Mitigation
• Climate Risks and Opportunities
• GHG Emissions
• Diversity, Equity, Inclusion, and Belonging (DEIB)
• Community Engagement
• Occupational Health and Safety
• Human Capital Development and Retention
• Regulatory Compliance
• Ethical Business Practices and Human Rights
• Anti-Bribery and Anti-Corruption
• Corporate Governance

Environmental Achievements

• 19% absolute reduction in Scope 1 and 2 GHG emissions compared with 2019 baseline
• 25% reduction in GHG emissions intensity (tCO2e/MWh) compared with 2019 baseline
• 2,209,290 tCO2e avoided emissions compared to the local grid in 2022
• 39% year-over-year increase in recycling in 2022
• 750 tons of metal and construction waste from surroundings were collected in 2 major projects

Social Achievements

• 37% reduction in Total Recordable Injury Rate (TRIR) vs. the previous year
• Provided diversity, equity, inclusion, and belonging (DEIB) training across the company
• 30% of VP-level managers are women
• 100% of plant management employed from local communities
• More than 36,000 hours of training was provided to employees in 2022
• $1,206,107 donated to communities

Governance Achievements

• ESG Committee established at the Board level in 2023
• Performance-based compensation for executive officers, including annual cash bonuses based in part on ESG-related metrics
• 33% female representation in the Board of Directors
• Three out of five Board committees are led by women

Climate Goals & Targets

Environmental Challenges

• Extreme weather conditions (droughts, hurricanes, tsunamis, floods, wildfires, water or other natural resource shortages)
• Changes in weather patterns impacting consumer demand for electricity
• Reduced generation in warm periods due to lower temperature difference between geothermal fluid and ambient surroundings
• Potential physical effects of climate change disrupting operations
• Water supply risks impacting projected generation levels at plants

Mitigation Strategies

• Monitors water risk carefully and identifies/evaluates risk mitigation efforts
• Accounts for projected impact of seasonal fluctuations in temperature based on historical experience
• Formal climate risk analysis to detect material climate-related risks and create mitigation plans
• Gap analysis process to map compliance with TCFD recommendations
• Mitigation plans for material climate-related risks (short, medium, and long term)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ormat Supplier Code of Conduct (covering ethics, labor, human rights, environment, and safety)
• Due diligence process to review suppliers’ business activities, including ESG topics
• Conflict Minerals Policy
• Conflict Minerals clause in standard Terms and Conditions of Purchase

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water shortages
• Changes in temperature and precipitation patterns

Transition Risks

• Regulatory changes
• Changes in consumer demand

Opportunities

• Tax incentives from the Inflation Reduction Act of 2022 (IRA)

Reporting Standards

Frameworks Used: GRI Standards, SASB

Certifications: ISO 9001, ISO 14001, ISO 45001, ASME Boiler and Pressure Vessel Code – “U” Stamp and “S” Stamp, CE for European Pressure Equipment Directive (PED)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 9 (Industry, innovation, and infrastructure)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)

Ormat's operations contribute to these goals through renewable energy production, job creation, infrastructure development, resource management, and climate change mitigation.

Sustainable Products & Innovation

• Ormat Energy Converter (OEC)
• Geothermal and solar PV hybrid projects
• Recovered energy generation (REG) technology
• Battery energy storage systems (BESS)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, Inclusion, and Belonging (DEIB)
• Corporate Governance
• Community Engagement
• Occupational Health and Safety

Environmental Achievements

• 17% absolute reduction in Scope 1 and 2 GHG emissions compared with the 2019 baseline
• 2,212,508 tCO2e avoided emissions compared to local electricity grids
• 97% of electricity consumption in 2023 was from self-generated, sustainable energy
• 5% annual reduction in Scope 1 and 2 GHG emissions intensity (tCO2e/MWh) compared to 2019 baseline year

Social Achievements

• 82% employee retention rate
• 0.96 total recordable injury rate (TRIR)
• $1,305,205 donated to communities
• 41,199 hours of training globally in 2023 (24.6 hours per employee)

Governance Achievements

• Established an ESG Committee on the Board of Directors
• 97% of employees trained on Anti-corruption and Anti-bribery policy
• Executive compensation linked to ESG performance

Climate Goals & Targets

Environmental Challenges

• Climate-related risks: insurance coverage, physical damage due to extreme weather events, disruptive technology/competition, water permits, public/stakeholder sentiment, and regulatory reporting requirements.
• Managing Scope 3 emissions across a complex global value chain.

Mitigation Strategies

• Climate risk assessment aligned with the TCFD framework
• Developing mitigation plans for identified material risks
• Improving data collection processes and methodologies for Scope 3 emissions
• Implementing new digital systems to better quantify Scope 3 data

Supply Chain Management

Supplier Audits: New suppliers complete an ESG self-assessment.

Responsible Procurement

• Ormat Supplier Code of Conduct
• Conflict Minerals Policy
• 88% of procurement allocated to local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Physical damage due to extreme weather events
• Water permits

Transition Risks

• Disruptive technology/competition
• Regulatory reporting requirements

Opportunities

• Strong support for renewable energy in the U.S. (IRA benefits)
• Increased use of intermittent renewable energy sources creating opportunities for stable, flexible baseload renewable energy.

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD (preparing report)

Certifications: ISO 14001 (manufacturing facility), ISO 45001 (manufacturing and office facilities in Israel)

Third-party Assurance: Independent external assurance for financial information; considering external assurance for sustainability data.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Ormat's operations contribute to these goals through renewable energy generation, job creation, technological innovation, resource efficiency, and climate change mitigation.

Sustainable Products & Innovation

• Ormat Energy Converter (OEC)
• Plain Bearings Turbine (PBT)

Awards & Recognition

• Not disclosed