Cloudberry Clean Energy Annual report 2020

21 Cloudberry Annual report 2020 Board of Directors report Planet Our operations have had a positive impact on the climate. In 2020, Cloudberry contributed to the reduction of greenhouse gas emissions by producing 21 GWh of renewable energy. The company started measuring its greenhouse gas emissions and established a climate reporting system to monitor its direct and indirect carbon emissions, following the guidelines in the Greenhouse Gas Protocol (The GHG Protocol). The total greenhouse gas emissions from Cloudberry in 2020, including scope 1, 2 and 3, were estimated to be 187 tonnes of CO 2 . The main emis- sion source was the concrete from the construction of the two hydropower plants Bjørgelva Kraft and Nessakraft. Cloudberry has compensated for its 2020 direct and indirect emissions by purchasing carbon credits. In 2020, the company assessed its climate related financial risks and opportunities in line with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). Our activities impact both land areas and river systems. For wind farms, our environmental impact is first and foremost through their visibility in the land- scape, their noise and shadows. Hydropower plants impact the water flow, fish and sediment load. The development of wind and hydropower plants utilize land particularly in the construction phase. The considerable work done with the materiality analysis, measurements of greenhouse gas emis- sions and the assessment of financial climate risks and opportunities, provide a solid basis for the company in the further development of our sustainable business strategy. We strive to reduce our environmental impact and will determine KPIs in order to monitor our development in this and related governance and management structures. People At the end of 2020, Cloudberry has ten full-time employees representing various backgrounds, of whom two are women. The company has a diverse and including work environment which promotes a supportive and open atmosphere and foster free exchange of ideas and collaboration. The Board considers the working environment to be healthy and productive. The company did not have any material health and safety incidents in 2020 and absence due to illness in 2020 was 1,4%. There was one incident amongst our contractors involving a bone fracture. No material damages were recorded during the year. Covid-19 The impact of the Covid-19 global pandemic is felt everywhere. Given the unprecedented nature of the situation and the resulting economic challenges, the Board and management continuously assess the risks for Cloudberry and actively manage the impact on our development projects and producing assets. Overall, the pandemic had limited impact on Cloudberry`s business in 2020. Some delay in construction work was experienced due to problems arising from the use of a skilled cross-border work- force. It has also been more challenging to maintain continuous contact and discussions with external stakeholders, as in-person meetings are restricted. The company focus on protecting the employees, partners and other stakeholders whilst ensuring that we operate the business in the best possible way. Governance In 2021, Cloudberry will implement its first Code of Conduct. It confirms our commitment to sustainabil- ity and specifies the ethical requirements for every- body who works for and on behalf of Cloudberry, including employees, board members and business partners. Amongst others, it sets out Cloudberry`s main principles for business ethics, legal compliance, insider trading, anti-corruption and bribery, human and labour rights, non-discrimination, environment, health and safety, and other relevant issues related to the company’s operations. No instances of corruption, or suspicion hereof, were raised in 2020. A whistle-blower channel will be implemented in 2021. Responsible supplier management was identified as a topic in the materiality assessment. The company`s responsible supply chain approach will be further developed, including an assessment of risks that Cloudberry may pose to labour and human rights. Prosperity Prosperity relates to Cloudberry`s role in contrib- uting to societal value creation. We contribute to economic growth by providing decent employment, creating local value, and providing renewable energy to society. Cloudberry recognises that it must con- tinuously improve its sustainability work and intends to comply with international frameworks and stand- ards. Sustainability is at the core of Cloudberry’s business, and it is imperative for the company to integrate environmental, social and governance aspects into its business strategy and development.