Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Social
• Governance

Environmental Achievements

• Avoided over 5 million tons of CO2 emissions
• Reduced Scope 1 GHG emissions by 12% through a GHG emissions offset mechanism
• Maintained very low levels of GHG emission rate per unit of energy generated (188 gCO2e/kWh)
• Reduced hazardous waste by 75% vs. 2019
• Increased reused or recycled hazardous waste by 16% vs. 2019
• Withdrew 50% or less of water available under existing permits for the 3rd consecutive year

Social Achievements

• Improved key health and safety indicators for a sixth consecutive year
• Donated PPE and basic supplies to local communities affected by COVID-19
• Launched an employee climate survey with 77% participation and high engagement scores
• Increased the number of women in the workforce by 7% and at the management level by 3% compared to 2019

Governance Achievements

• Board reviewed and approved all ESG policies
• All Board Committees comprised only independent members
• Two of four Board Committees chaired by women
• 25% ethnic minorities represented at Board level
• Closed over $1 billion in new Green Financing

Climate Goals & Targets

Environmental Challenges

• Acute physical risks from extreme weather events (winds, rains, hail, hurricanes, droughts, fire, flooding)
• Chronic physical risks from rising temperatures (reduced efficiency, increased operating costs)
• Chronic physical risks from reduced precipitation (water availability, quality)
• Current and emerging regulations (compliance, potential fines, changes in incentives)
• Reputational risks and decreased access to capital
• Downstream risks from climate-related impacts on clients

Mitigation Strategies

• Real-time weather monitoring and protection measures
• Insurance policy covering physical damage and business interruption
• Crisis management procedures and automatic alert systems
• Efficiency improvements to offset rising temperature impacts
• Regular audits to review operational and environmental indicators
• Advanced analytics team to improve technology performance
• Maintaining water withdrawals below regulatory limits
• Regular review of risks and compliance with regulations
• Aggressive GHG emission reduction target (70% by 2035)
• Maintaining over 80% of adjusted EBITDA from low-carbon footprint assets
• Conservative assumptions on natural gas asset useful life and carbon pricing
• Leveraging ESG positioning to access green financing

Supply Chain Management

Supplier Audits: >51% of annual operating expenses externally pre-screened, 20% of total purchases annually evaluated

Responsible Procurement

• Supplier Code of Conduct
• Ecovadis certification for key suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising temperatures
• Reduced precipitation
• Wildfires

Transition Risks

• Changes in regulation
• Decreased access to capital
• Impacts on clients

Opportunities

• Development and acquisition of renewable energy assets
• Public-sector incentives
• Access to new markets
• Access to capital markets

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Standards for Electric Utilities and Solar Energy, TCFD recommendations

Certifications: ISO 14001, ISO 9001, ISO 45001

Third-party Assurance: DNV GL, ANCE, AENOR

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 5 (Gender Equality)
• Goal 15 (Life on Land)
• Goal 9 (Industry, Innovation and Infrastructure)

Atlantica's investments in renewable energy, water desalination, and sustainable infrastructure contribute to these goals

Awards & Recognition

• Pump Industry Excellence Award for Innovation and Technology
• Two Copper recognitions from ADEQ (Solana plant)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Occupational Health and Safety
• Human Rights, Ethics and Integrity
• Environmental Impacts (waste, water, and biodiversity)
• Asset Management
• Data Security
• Human Capital
• Diversity and Equal Opportunities
• Supply Chain Management
• Community Development

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions per kWh of energy generated and Scope 3 GHG emissions per kWh of energy generated for the fourth consecutive year.
• Offset 380 thousand tons of Scope 1 GHG emissions.
• Invested 97% of CapEx in activities aligned with EU Taxonomy.
• Reduced water consumption by 5% compared to 2022.
• Reduced total hazardous waste by 27% compared to the previous year.

Social Achievements

• Improved all key health and safety indicators, remaining below the sector average in all geographies.
• Invested $1.5 million in local communities.
• Reduced employee turnover (7.6% compared to 12.8% in 2022).

Governance Achievements

• Board approved Water Policy and updated Stakeholder, Biodiversity, Environmental, and Health & Safety Policies.
• Developed a Green Finance Framework with a Second Party Opinion from Sustainalytics.
• Completed two green project refinancings.

Climate Goals & Targets

Environmental Challenges

• Delays and extra costs in projects under construction.
• Potential increase in long-term interest rates.
• Delays in collections from Pemex.
• Unscheduled outage and prolonged maintenance stop at Kaxu.
• Lower electricity prices in Spain and Chile.
• Project debts of Chile PV 1 and 2 under an event of default.
• High competition for qualified personnel.
• Severe winter weather affecting Coso.
• High volatility in capital and credit markets.
• Cybersecurity risks.

Mitigation Strategies

• Health and Safety program, regular audits, best practices implementation, reinforced safety procedures during construction.
• Proactive approach with Pemex, increased meetings, plan to reduce amount due.
• Insurance coverage for Kaxu damage and business interruption.
• Conversations with banks regarding potential waiver for Chile PV 1 and 2.
• Attractive remuneration packages, identification of key personnel, internalization of O&M services.
• Long-term interest rate swaps and interest rate options, hedging strategies.
• Currency options hedging net euro-denominated exposure.
• Diversified sources of growth, disciplined approach to capital allocation, rigorous analysis of investment opportunities.
• Prevention, monitoring, and threat-detection measures, ISO 27001 compliance, cybersecurity insurance.

Supply Chain Management

Supplier Audits: ~100% of suppliers adhered to Supplier Code of Conduct in 2023 and 2022; 100% of new Tier 1 suppliers assessed through supplier qualification process in 2023, 2022, and 2021; all suppliers reassessed every three years.

Responsible Procurement

• Supplier Code of Conduct, Purchasing and General and Administrative Expenses Policy, five-step Supplier Qualification Process, use of Achilles platform and ESG rating agencies for ESG assessment.

Climate-Related Risks & Opportunities

Physical Risks

• Changing wind patterns
• Increase in mean temperatures
• Droughts/water scarcity
• Landslides caused by heavy precipitation
• Severe winds/wind gusts
• Wildfires
• Severe winter weather and hail

Transition Risks

• Current regulation
• Emerging regulation
• Reputation
• Downstream

Opportunities

• Changes in demand for low-carbon products and services
• Changes in government supporting schemes

Reporting Standards

Frameworks Used: GRI Standards, SASB Electric Utilities & Power Generators, SASB Solar Technology & Project Developers, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: DNV (reasonable assurance for Scope 1, 2, and 3 GHG emissions; limited assurance for air quality, waste, and water indicators); ANCE (Mexico); AENOR (Spain)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 5 (Gender Equality)
• Goal 15 (Life on Land)
• Goal 9 (Industry, Innovation, and Infrastructure)

Investments in renewable energy, water desalination, community development, and employee well-being initiatives.

Awards & Recognition

• CDP A List on climate change and water security
• S&P Global Sustainability Yearbook
• #1 globally GRESB disclosure