Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social
• Governance

Environmental Achievements

• Avoided the emission of 480,262 tons of CO₂ in 2020
• 100% renewable green energy

Social Achievements

• Launched the first flat electricity rate on the market that adapts to customer needs
• Achieved almost parity of representation in all areas of the company
• First European power company to be B Corp certified

Governance Achievements

• Established a whistle-blower channel
• Developed a Code of Ethics and several policies (anti-corruption, employee, anti-harassment, 3rd party hiring, unpaid, intellectual property, equality plan, privacy, conflicts of interest, diversity, employee development, investor relations, account auditor’s selection and appointment)

Climate Goals & Targets

Environmental Challenges

• Energy consumption dropped around 20% due to Covid-19 crisis
• CNMC Sanction – January 2020 (isolated case in 2016 due to human error)

Mitigation Strategies

• Applied a series of measures and protocols to correct errors after the CNMC sanction
• Proactive and personalized review of all rates to promote savings for clients during Covid-19 crisis

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Developed a policy that regulates relationships with suppliers and partners, ensuring commitment to legal compliance and ethical and anti-corruption standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: B Corp

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 17

Holaluz's business model and initiatives contribute to these goals through various actions detailed in the report.

Sustainable Products & Innovation

• Solar home systems for self-consumption

Awards & Recognition

• B Corp
• Jaume I Entrepreneurship award
• Best Manager of the Year Award (SME category)
• Baby Friendly Company

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Customer Satisfaction
• Employee Well-being
• Governance
• Ethical Business Practices
• Social Impact

Environmental Achievements

• Avoided emission of more than 330,038 tons of CO2 in 2021 and more than 1.5M tons since 2010.
• 100% renewable energy supplied: 1,300,021 MWh
• 7,023 solar installations

Social Achievements

• More than 386,000 customers connected to 100% green energy.
• 354 employees
• First European electricity company with B Corp certification.
• Donated more than €75,000 to foundations and non-profit organizations in 2021.
• 0.0% accident rate in 2021.

Governance Achievements

• Restructured Board of Directors following IPO.
• Established a Code of Ethics and Compliance Program.
• No complaints received through the Alerts channel in 2021.
• Ranked among the top 3% of companies in the Sustainalytics’ global universe and in the top 1% of the Utilities category in 2021.

Climate Goals & Targets

Environmental Challenges

• Third-party dependency on DSO (Distribution System Operators).
• Current worldwide energy crisis derived from the price increase in the wholesale electricity market.

Mitigation Strategies

• Looking for PPAs (Power Purchase Agreement) contracts to provide a stable price to customers and guarantee the renewable origin of energy.
• Putting its own operations in place to have 100% control of customers’ experience.
• Focusing on Delivering Magic CX by focusing on Technology to scale.

Supply Chain Management

Responsible Procurement

• Focus on large, regulated companies, mainly in Spain; promoting local procurement.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: B Corp

UN Sustainable Development Goals

• SDG 7
• SDG 11
• SDG 13
• SDG 5
• SDG 9
• SDG 8
• SDG 3
• SDG 17
• SDG 12

Holaluz's business model contributes to these SDGs through renewable energy, distributed generation, customer focus, employee well-being, innovation, and community engagement.

Awards & Recognition

• B Corp Certification
• Sustainalytics ESG Top Rated Company

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Energy transition
• Talent development and team wellbeing
• Company culture
• Equal opportunities (diversity and inclusion)
• Sustainable supply chain
• Customer obsession
• Financial performance
• Strategy and long-term planning
• Innovation and digitization
• Ethics and integrity
• Risk management and crisis response
• Stakeholder relationship

Environmental Achievements

• Avoided emissions of 326,651 t CO2e
• Installed 46,619 solar panels
• Reduced emissions intensity by 37%
• 88% of waste is valorizable
• 100% recycling of electronic waste

Social Achievements

• Launched the world’s first school for female solar installers
• Increased training hours per employee to 24.6 (+303%)
• Achieved >70% first contact resolution in customer care
• 4% gender salary gap (-6 pp)
• 29 eNPS

Governance Achievements

• 43% female directors
• 100% attendance at Board of Directors meetings
• Sustainalytics rated Holaluz as the no.1 ESG Risk Rating energy producer company worldwide
• Adhered to the United Nations Global Compact

Climate Goals & Targets

Environmental Challenges

• Unprecedented electricity prices and the war in Ukraine
• Lack of solar talent
• Market volatility in energy prices

Mitigation Strategies

• Implemented a solid strategy of creating holistic home energy systems
• Launched the Holaluz Academy to upskill salesforce and installer team
• Implemented an optimal hedging strategy to guarantee gross margin and business profitability

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Purchasing Policy (in development)
• Contract Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS Integrated Reporting framework, GRI Universal Standards, EU Taxonomy

Certifications: B Corp, Baby-Friendly Company

Third-party Assurance: Ernst & Young, S.L.

UN Sustainable Development Goals

• SDG 7
• SDG 5
• SDG 13
• SDG 9
• SDG 11
• SDG 8
• SDG 12
• SDG 3
• SDG 17

Holaluz's business model is designed to make a major impact on the achievement of these SDGs.

Sustainable Products & Innovation

• Holaluz Wireless
• Cloud-based dispatching centre
• New customer app

Awards & Recognition

• Sustainalytics’ global ESG risk ranking in Independent Power Production and Trader subindustry (No.1)
• B Corp certification
• Baby-Friendly Company certificate

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Impact
• Governance

Environmental Achievements

• Reduced carbon footprint by 58% compared to 2022
• Avoided emissions of over 2.7 million tonnes of CO2e since inception
• 100% recycling of electronic waste and solar panels

Social Achievements

• Maintained a solar customer satisfaction rate of 8.3/10
• Donated €207,400 to foundations and non-profit organisations
• First Spanish electricity Baby-Friendly Company

Governance Achievements

• Sustainalytics ranked Holaluz #1 worldwide for ESG risk within independent energy production and traders
• Received EcoVadis gold medal for sustainability performance
• Implemented a Sustainable Procurement Policy

Climate Goals & Targets

Environmental Challenges

• Downturn in the residential solar energy market in Spain in 2023
• Increase in diesel consumption per number of own installations due to installations further from warehouses
• Increase in waste due to increase in solar facilities completed with own staff

Mitigation Strategies

• Reduced break-even point in Solar from 800-1,000 installations per month to 600 in 2023 and 350 at the end of Q1-2024 through increased average installation size, flexible asset penetration, COGs improvement, and reduced customer acquisition cost.
• Improved selection of GO contributed to a 14% reduction in carbon footprint
• The t/no. of own installation ratio for waste fell by 25%

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable procurement policy
• Direct communication with sustainability teams of main equipment manufacturers
• On-site visits to origin factories

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD, UN Global Compact, GHG Protocol, ISO 14064

Certifications: B Corp, ISO 9001, ISO 14001, EcoVadis Gold Medal

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Aligned with the UN Global Compact's Ten Principles and maximising contribution to the SDGs

Sustainable Products & Innovation

• Tarifa Justa subscription model

Awards & Recognition

• Sustainalytics #1 ESG ranking
• EcoVadis Gold Medal
• Algorithmic Transparency Certificate from Adigital
• First Spanish electricity Baby-Friendly Company
• Confianza Online Seal

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Waste Management
• Responsible Use of Natural Resources
• Biodiversity

Environmental Achievements

• Achieved ISO 14001 certification in offices and main warehouses.
• ISO 14064 and GHG Protocol accreditation for greenhouse gas (GHG) emissions calculation in three scopes.

Social Achievements

• Not disclosed

Governance Achievements

• Established an Impact Team to oversee ESG strategy implementation.
• Adheres to TCFD recommendations.

Climate Goals & Targets

Environmental Challenges

• Managing water consumption in high-risk water areas.
• Managing climate-related risks (transition and physical).

Mitigation Strategies

• Implementing technologies and practices to reduce energy consumption.
• Integrating climate risk assessment and management into general risk management.
• Following TCFD recommendations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Promoting purchases with environmental and sustainable criteria

Climate-Related Risks & Opportunities

Physical Risks

• Physical impacts of climate change

Transition Risks

• Risks related to the transition to a low-carbon economy

Opportunities

• Climate-related opportunities

Reporting Standards

Frameworks Used: UN Global Compact, Science Based Targets initiative (SBTi), GHG Protocol, TCFD, GRI

Certifications: ISO 14001, ISO 14064

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Aligns its operations and procedures with the Ten Principles of the UN Global Compact and the Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed