Climate Change Data

Environmental Metrics

ESG Focus Areas

• Delivering competitive renewable energy
• Contributing to local value creation
• Being a trusted business partner

Environmental Achievements

• Increased total installed capacity of power-producing solar plants from 219 MW to 383 MW (close to 75% increase)
• Agua Fria (60 MW) plant in Honduras grid-connected
• Red Hills plant (104 MW) in Utah, USA grid-connected
• Construction started on three solar power plants in Jordan (43 MW total)
• Avoided 426,000 tons of carbon emissions in 2015

Social Achievements

• Nearly 2,000 jobs created during peak construction across various projects (mostly local)
• Certification of more than 300 new workers with documented skills
• First-ever initiative to include women in construction work in Honduras
• 974,000 hours of accident-free project work
• Only two minor lost time incidents across five solar power plants

Governance Achievements

• Established a publicly available grievance mechanism for all projects (English, Arabic, Spanish, and French)
• Developed a policy defining Scatec Solar’s fundamental principles of integrity and sustainability
• Implemented a standardized reporting format for all projects to ensure comparable and consistent HSSE data

Climate Goals & Targets

Environmental Challenges

• Maintaining work-life balance for employees
• Security risks in operating regions
• Potential for negative environmental impact through the supply chain

Mitigation Strategies

• Established 41 new permanent positions
• Partnership with an international security assessment company
• Formalized and standardized pre-qualification due diligence and tender processes
• Supplier audits and corrective actions for breaches of standards

Supply Chain Management

Supplier Audits: 13 supplier visits

Responsible Procurement

• Supplier Conduct Principles
• HSSE standards and labour rights in contracts
• Collaboration with suppliers to drive development of new solutions

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFC Performance Standards, Equator Principles

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Norwegian Industry’s Climate Prize of 2015

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Avoided an estimated 659,000 tons of greenhouse gas emissions in 2016.

Social Achievements

• Employed local labor and suppliers in various projects, resulting in 5,410 jobs with an average of 81% local employees during peak construction.
• Established the Al Qantara Language Centre in Jordan to improve English skills in the local community.
• Implemented several community development programs in various countries, including reforestation, educational initiatives, and support for small businesses.

Governance Achievements

• Operated in line with the Equator Principles and IFC Environmental & Social performance standards.
• Established a revised anti-corruption program in line with best practices.
• Conducted environmental and social impact assessments for backlog projects.

Climate Goals & Targets

Environmental Challenges

• Low sovereign ratings in target markets raising the cost of capital.
• Regulatory issues, grid constraints, and high cost of finance hindering the switch from fossil fuels to renewables.
• Shortfall in certification of skills for local workers in Jordan.

Mitigation Strategies

• Promoting and leveraging carbon and climate finance to accelerate project implementation.
• Collaborating with financial partners like Norfund, EBRD, and IFC.
• Implementing stricter HSSE clauses in contracts with contractors and more thorough monitoring routines to address increased environmental incidents in Jordan.
• Taking measures to identify the reason for the shortfall in worker skill certification in Jordan to bring about improvements in the future.

Supply Chain Management

Supplier Audits: 15 audits of current and potential major suppliers in 2016

Responsible Procurement

• Supplier Code of Conduct
• Integration of HSSE standards and labor rights into contracts
• Life-cycle approach to carbon footprint
• Revised packaging concept for modules to reduce waste and carbon footprint

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFC Performance Standards, Equator Principles

UN Sustainable Development Goals

• Goal 4: Quality Education
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 15: Life on Land
• Goal 17: Partnerships for the Goals

Scatec Solar's community development programs and initiatives are aligned with these SDGs.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental, Social, and Governance (ESG)
• Health, Safety, Security, and Environment (HSSE)
• Anti-corruption
• Responsible Procurement
• Labour conditions
• Local value creation
• UN Sustainable Development Goals

Environmental Achievements

• Avoided more than 700,000 tons of greenhouse gas emissions in 2017 from operating solar power plants.
• Estimated total greenhouse gas emissions for 2017 were 2,879 tons of CO2e (Scope 1, 2, and 3).

Social Achievements

• Increased percentage of women in the workforce from 28% in 2016 to 37% in 2017.
• Implemented several new local development initiatives including community internet cafes and training courses in South Africa, a pineapple plantation in Rwanda, a rooftop solar system for a youth club in Jordan, and a reforestation program and donations of school supplies in Honduras.
• No fatal accidents in 2017. Injury Rate (IR) was 3.4 per million working hours.

Governance Achievements

• 100% of new suppliers in 2017 were screened for social and environmental criteria.
• Reported one confirmed incident of corruption through the whistleblower channel, resulting in contract termination with an employee and a supplier.
• All operations and business partners were assessed for corruption risks.

Climate Goals & Targets

Environmental Challenges

• Economic displacement of more than 200 households due to the Mocuba project in Mozambique.
• Social unrest in Honduras during construction startup.
• Significant footprint related to air travel.

Mitigation Strategies

• Developed and implemented resettlement and livelihood restoration plans in Mozambique according to IFC Performance Standards.
• Worked with community members, authorities, and stakeholders to resolve the situation and establish trust-based dialogue in Honduras.
• Working to raise awareness and reduce air travel emissions by encouraging video conferencing.

Supply Chain Management

Supplier Audits: 2 audits in 2017

Responsible Procurement

• Supplier Code of Conduct
• Social and environmental screening of 100% of new suppliers
• Frame agreements with management involvement for larger supplies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, including drought and floods

Opportunities

• Technology development
• Cost reductions
• Transition to a low-carbon economy

Reporting Standards

Frameworks Used: GRI Standards (Core option)

UN Sustainable Development Goals

• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 9: Industry, innovation and infrastructure
• Goal 11: Sustainable cities and communities
• Goal 13: Climate action
• Goal 4: Quality education

Scatec Solar's operations and local development programs contribute to these goals through renewable energy production, job creation, community development initiatives, and education programs.

Environmental Metrics

ESG Focus Areas

• Clean and sustainable energy
• Managing social and environmental impacts
• Being a trusted business partner
• Contributing to local value creation

Environmental Achievements

• Avoided 650,000 tons of CO2 emissions from operating solar plants
• Achieved zero serious injuries with disabilities across 6.3 million working hours
• Implemented a livelihood restoration program for 220 households in Mozambique
• Started preparations to report to the Carbon Disclosure Project (CDP)

Social Achievements

• Created 6,000 jobs, mostly local and unskilled labor
• Successfully grid-connected the Los Prados plant in Honduras after social unrest
• Increased female representation at the Executive Management level to 14%
• Implemented a malaria vector control program in Mozambique

Governance Achievements

• Became a signatory to the UN Global Compact
• Implemented mandatory anti-corruption training for all employees
• Established a whistleblower function with a neutral third party
• Completed at least one site audit for each project under construction

Climate Goals & Targets

Environmental Challenges

• Social unrest and challenges with local community relations in Honduras
• Logistical complexities of executing several parallel projects globally
• Ensuring compliance with HSSE requirements in Egypt
• Managing risks related to corruption in various operating countries

Mitigation Strategies

• Strengthened social team in Honduras, improved dialogue with communities
• Implemented robust procurement and transportation safety management plans
• Thorough review of IFC’s Performance Standards with contractor management teams
• Implemented a three-stage supplier screening process, regular audits, and a supplier development program

Supply Chain Management

Supplier Audits: 17 audits of subcontractors in 2018

Responsible Procurement

• Supplier Code of Conduct
• Three-stage supplier screening process
• Supplier Development Programme

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, droughts, floods

Opportunities

• Rapid technology developments in solar energy

Reporting Standards

Frameworks Used: GRI Core Level, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: DNV GL

UN Sustainable Development Goals

• SDG 7: Affordable and clean energy
• SDG 8: Decent work and economic growth
• SDG 17: Partnerships for the goals
• SDG 4: Quality education

Scatec Solar's contribution to SDGs through its core business, risk management, and stakeholder feedback.

Awards & Recognition

• Scatec Solar’s legal team listed as one of the most influential and innovative in-house legal teams in the Nordic region by the Legal 500 GC Powerlist

Environmental Metrics

ESG Focus Areas

• Climate change
• Social impact
• Governance
• Health, Safety, Security and Environment (HSSE)
• Business ethics and anti-corruption
• Human rights

Environmental Achievements

• 870,637 tons of CO2 emissions avoided from solar plants in operation

Social Achievements

• 8,000 jobs created in projects under construction – of which a large part is local and unskilled labour
• 56 ongoing local development programmes across clean energy, health, education and infrastructure
• Zero serious injuries
• Delivered 11.7 million working hours with no serious injuries
• Employees represent 40 different nationalities globally

Governance Achievements

• DNV GL awarded ISO 9001, ISO 14001 and ISO 45001 certification to Scatec Solar
• In early 2020, the Company was rated an industry leader in ESG risk management. Sustainalytics ranked Scatec Solar as the Company with the lowest ESG risk, out of 450 companies in the global utilities industry.

Climate Goals & Targets

Environmental Challenges

• Continued dominance of fossil fuels in the global energy mix
• Increasing concerns about climate change
• Coronavirus disease outbreak (COVID-19) impacting construction, commissioning and testing of new solar plants

Mitigation Strategies

• Integrated business model generating income from building and operating solar plants
• Strong ESG performance and reporting
• Closely monitoring developments and taking precautionary measures to safeguard people and ensure continued stable operations
• Contingency plans in place to safeguard personnel and assets

Supply Chain Management

Responsible Procurement

• Transparent and fair tender processes
• Robust contracting
• Pre-production audits and monitoring during production
• Supplier development programme

Climate-Related Risks & Opportunities

Transition Risks

• Decline in costs of other sources of electricity
• Significant amount of new electricity generation capacity becoming available
• Broader regulatory changes to the electricity market

Opportunities

• Growth in solar energy globally

Reporting Standards

Frameworks Used: GRI Standards, IFC Performance Standards, Equator Principles, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001

Sustainable Products & Innovation

• Release - by Scatec Solar

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Occupational Health and Safety
• Diversity and Equal Opportunity
• Anti-corruption
• Local Communities
• Procurement Practices
• Water
• Biodiversity
• Employment

Environmental Achievements

• Reduced Scope 1 greenhouse gas emissions to 755 tCO2e
• Reduced Scope 2 greenhouse gas emissions (location-based) to 5,688 tCO2e
• Reduced Scope 3 greenhouse gas emissions to 916 tCO2e
• Purchased I-RECs for 6,862 MWh of renewable energy in Egypt

Social Achievements

• 100% of suppliers screened using environmental and social criteria
• 65% of security personnel received training on human rights principles
• Implemented Performance, Development and Appraisal (PDA) process for 100% of full-time employees
• No confirmed incidents of corruption registered in 2020
• Two reported incidents of alleged discrimination in 2020, but not confirmed.

Governance Achievements

• Established an ESG Committee in Q4 2020
• 100% of all operations assessed for risks related to corruption
• No political contributions in 2020

Climate Goals & Targets

Environmental Challenges

• Two cases of non-compliance with environmental laws and/or regulations in 2020.
• No significant fines or non-monetary sanctions for non-compliance with social and economic laws and/or regulations in 2020.

Mitigation Strategies

• Ongoing monitoring of subcontractors' compliance with Scatec's policies and principles
• Implementation of Supplier Code of Conduct, Scatec Partner Conduct Principles and Labour Policy for site personnel

Supply Chain Management

Supplier Audits: 100% of new suppliers screened

Responsible Procurement

• Supplier Code of Conduct
• Scatec Partner Conduct Principles
• Labour Policy for site personnel

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option, TCFD

Certifications: ISO 9001, 45001, 14001

Third-party Assurance: Ernst & Young (EY)

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

Governance Achievements

• Established an ESG Committee in Q4 2020 with instructions adopted in March 2021.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, Inclusion and Belonging (DEIB)
• Health, Safety and Security
• Human Rights
• Responsible Supply Chain
• Ethics and Compliance
• Local Value Creation
• Water Management
• Biodiversity
• Resource Use and Circularity

Environmental Achievements

• Reduced GHG emissions (avoided) by 2.0 million tonnes CO2e in 2022.

Social Achievements

• 1065 direct local jobs created during project construction.
• 70 local development programs ongoing.

Governance Achievements

• Zero confirmed incidents of corruption in 2022.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied by fluctuations in non-employee workers)
• Data limitations in various areas (e.g., sick leave of contractors, transition-assistance programs).

Mitigation Strategies

• Improved data quality and additional data sources for emissions and energy consumption calculations.
• Plans to report on missing information in 2023.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Environmental Metrics

ESG Focus Areas

• Climate change
• Resource use and circularity
• Biodiversity
• Health, safety and security
• Human rights
• Responsible supply chain
• Diversity, equity, inclusion and belonging (DEIB)
• Local value creation
• Business conduct

Environmental Achievements

• GHG emissions avoided from projects where Scatec had operational control reached 1.9 million tonnes. When including all projects where Scatec has an ownership stake, total emissions avoided were 4.0 million tonnes.
• Renewable electricity consumption (I-RECs) reached 73% of total energy use.
• Emissions intensity for produced energy decreased from 377 gCO2e/kWh in 2022 to 116 gCO2e/kWh in 2023.

Social Achievements

• Delivered nearly 9.2 million working hours with no fatalities or serious injuries.
• Percentage of female employees in management positions was 29% at the end of 2023.
• 86% of grievances were resolved.

Governance Achievements

• Zero confirmed corruption incidents.
• 100% of employees completed anti-corruption training.
• Code of Conduct e-learning completed by 100% of employees in scope.

Climate Goals & Targets

Environmental Challenges

• Reducing indirect emissions in the value chain takes time due to supplier dependence.
• Road traffic and transportation remain hazardous activities.
• Alleged forced labor issues in the solar PV production industry in Xinjiang, China.

Mitigation Strategies

• Increased engagement with strategic suppliers to share strategy, improve data quality, and encourage ambitious climate targets.
• Launched an extensive HSSE campaign focusing on transportation safety management.
• Collaboration with key stakeholders to address alleged forced labor issues, including chain of custody audits, exploration of alternative polysilicon sourcing, and engagement with peers and consultants.

Supply Chain Management

Supplier Audits: 45 suppliers assessed through EcoVadis; Chain of custody audits on module suppliers.

Responsible Procurement

• Supplier Qualification procedure including traceability mapping of all key suppliers based on the supplier’s bill of material.
• Engagement with strategic suppliers on climate and related environmental topics.

Climate-Related Risks & Opportunities

Physical Risks

• Climate impacts on countries where we operate

Transition Risks

• Increasing climate regulations
• Value chain and land use change emissions

Opportunities

• Increased renewable electricity demand and societal electrification
• Policies promoting renewable energy
• Industry collaboration and innovation

Reporting Standards

Frameworks Used: GRI Standards, UNGC (Communication on Progress), CDP, TCFD, CSRD (preparatory work initiated)

Certifications: ISO 9001, ISO 45001, ISO 14001

Third-party Assurance: PricewaterhouseCoopers (PwC)

UN Sustainable Development Goals

• SDG 7: Affordable and clean energy
• SDG 8: Decent work and economic growth
• SDG 17: Partnerships for the goals

Scatec contributes directly to SDG 7 through renewable energy generation. Safe and healthy working conditions and labor rights protection contribute to SDG 8. Partnership-based approach contributes to SDG 17.

Awards & Recognition

• CDP’s annual ‘A List’
• A+ rating, A List Gold Top rating among the 100 largest companies listed on the Oslo Stock Exchange
• Top score among the top 5% of companies rated
• ESG rating: Corporate ESG Performance: AA
• High ranking relative to industry peers of resilience to long-term ESG risks
• Carbon Disclosure Project B rating, Status: Prime