Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability

Environmental Achievements

• Avoided approximately 30,000 metric tonnes of greenhouse gas emissions per year in CO2 equivalents.
• Dublin headquarters 100% powered by renewable energy.
• Uses sustainable cleaning products and has a waste recycling system in place.
• Company cars are fully electric.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strive for responsible procurement (to be formalized)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Green Bond Principles (ICMA, 2018), GRI Standards (indirectly through BayWa)

Certifications: Null

Third-party Assurance: CICERO Shades of Green, Grant Thornton (limited assurance)

UN Sustainable Development Goals

• SDG 7: Affordable and Clean Energy

Solar PV parks contribute to clean energy production.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Impact
• Social Impact
• Responsible Procurement

Environmental Achievements

• Avoided ~128,499 metric tons of CO2-eq emissions in 2021, equivalent to the carbon sequestered by 2,124,756 trees grown for 10 years or removing 27,947 fossil fuel-based passenger vehicles from the road for one year.

Social Achievements

• Not disclosed

Governance Achievements

• Published a Green Bond Framework and committed to implementing a formal strategic Sustainability Policy Framework to ensure sustainable project development and responsible procurement.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Commitment to responsible procurement when selecting partners, contractors, and subcontractors.

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

• Sustainability
• Green Bond Framework

Environmental Achievements

• Avoided ~3,550 metric tons of CO2-eq emissions in Q1 2021

Social Achievements

• Not disclosed

Governance Achievements

• Published a Green Bond Framework outlining a formal strategic sustainability program

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Alternus will further strengthen its strive for responsible procurement when making decisions on partners, contractors and subcontractors used in project development.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Green Bond Framework

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

• Environmental
• Social
• Governance

Environmental Achievements

• 101,900 MWH of clean energy produced, equivalent to the carbon sequestered annually by 54,278,000 kilograms of carbon dioxide avoidance or 2 million trees

Social Achievements

• Established the Alternus Sustainable Arts Initiative in 2022 to support artists using recycled materials; partnered with NCAD.

Governance Achievements

• Majority of Independent Directors with diverse perspectives and expertise; Board committees comprised only by independent members; Only one class of shares. No special rights.

Climate Goals & Targets

Environmental Challenges

• Cost inflation
• Supply chain challenges
• Impact of reduction, modification or elimination of government subsidies and economic incentives
• Decreases in spot market prices for electricity
• Risks relating to developing and managing renewable solar projects
• Risks relating to PV plant quality and performance
• Risks relating to planning permissions for solar parks and government regulation
• Need for significant financial resources
• Risks relating to operating internationally, including currency risks and legal, compliance and execution risks of operating internationally
• COVID-19 pandemic
• Inflation and changes in interest rates
• Economic slowdown, recession or contraction of the global economy
• Financial or liquidity crisis
• Geopolitical factors (e.g., Russian invasion of Ukraine)
• Global supply chain concerns
• Status of debt and equity markets
• Counterparty risks under FiT and GC schemes
• Limited business insurance coverage internationally
• Non-compliance with laws and regulations
• Potential disputes with property owners or third parties

Mitigation Strategies

• Capital efficient financing strategy using self-amortizing project debt structures
• Long term hedging strategies to protect against rate fluctuations
• Continuous and strong demand for debt from market leading participants provides flexibility in structuring debt options
• Extensive verification before acquisition by leading advisor groups (legal, technical, financial)
• Robust project financial evaluation process to ensure profitability
• In-house O&M service to capture larger share of project revenue
• Proactively managing a volatile market environment & rising interest rates

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Green Bond Framework
• Responsible Procurement
• Mitigation of local social and environmental impacts

Environmental Achievements

• Avoided ~27,680 metric tons of CO2-eq emissions in the first half of 2021, equivalent to the carbon sequestered by 457,695 trees grown for 10 years or removing 6,020 fossil fuel-based passenger vehicles from the road for one year.

Social Achievements

• Not disclosed

Governance Achievements

• Published a Green Bond Framework and committed to implementing a formal strategic Sustainability Policy Framework within 12 months.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strengthening responsible procurement when selecting partners, contractors, and subcontractors.

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

• Climate Change
• Sustainability

Environmental Achievements

• Avoided 52,316 metric tons of CO2-eq emissions (equivalent to the carbon sequestered by 865,056 trees grown for 10 years or removing 11,378 fossil fuel-based passenger vehicles from the road for one year).

Social Achievements

• Not disclosed

Governance Achievements

• Published a Green Bond Framework and committed to implementing a formal strategic Sustainability Policy Framework to ensure sustainable project development and responsible procurement.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Alternus Energy will strive for responsible procurement when making decisions on partners, contractors and subcontractors used during project development.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Green Bond Framework

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

• Climate Change
• Sustainability

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Working capital deficiency and negative equity.
• Doubt about the company’s ability to continue as a going concern.
• Breach of three financial covenants under Solis’ Bond terms.
• Impacts of the Ukraine/Russia conflict (increased energy rates).
• Impacts of the 2023 Bank Failures and Banking Risk (liquidity concerns).

Mitigation Strategies

• Plans to raise additional funds to meet obligations and sustain operations.
• Negotiating waivers or forbearance with respect to defaults.
• Amending, replacing, refinancing, or restructuring debt agreements.
• Securing additional capital (equity and/or subordinated loan).
• Potential Norwegian equity offering.
• Option to divest assets to partially redeem bonds.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Technology and supplier agnostic; flexibility to choose from a broad range of manufacturers, O&M experts, and suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Weather disruptions

Transition Risks

• Regulatory changes, governmental incentive modifications

Opportunities

• Continued reduction in the cost of solar technologies.
• Grid parity in increasing number of markets.
• Replacement of aging conventional power generation facilities.
• Coupling renewable energy generation with other forms of power generation/storage.
• Government policies encouraging renewable power development.

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

• Sustainability
• Clean Energy

Environmental Achievements

• 101,900 MWh of clean energy produced, equivalent to the carbon sequestered by more than 2 million trees annually and powering 24,270 homes annually.

Social Achievements

• Launched the ‘Alternus Sustainable Arts Initiative’

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain constraints (panel/inverter equipment and interconnection equipment)
• Interest rates trending upwards

Mitigation Strategies

• Panel/Inverter contracts in place for 500MW
• Progressing negotiations with Tier 1 European banks to fund planned construction activities

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

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Rationalized Headcount and reduced core SGA costs by c. 50%

Governance Achievements

• Ensure Nasdaq Compliance

Climate Goals & Targets

Environmental Challenges

• Unprecedented Spike in Interest Rates
• Supply Chain Bottlenecks & Rampant Inflation in Construction Costs
• Volatile Energy Markets
• Grid Constraints + High Connection Costs
• Deterioration in Equity Value in Assets
• Little Equity Interest & Low Market Sentiment

Mitigation Strategies

• Divestment of Non-Economic Assets
• De-Lever Balance Sheet
• Focus on High Return Projects
• Increased US focus to optimize use of IRA
• Completed reverse stock split
• Plan to meet shareholder equity requirement during Q4 2024

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

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Short-term contract risk for supplies (PV modules, balance-of-system components); Project development risks (site selection, permits, execution); Regulatory risk (changes in government policies, subsidies); Competitive landscape (new market entrants).

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