Cloudberry Clean Energy Annual report 2020

35 Cloudberry Annual report 2020 Sustainability Our activities In 2020, Cloudberry conducted an assessment of the potential financial impact of climate-related risks and opportunities. This initiated the process to adapt the company’s reporting, in accordance with the recom- mendations of the Task Force on Climate-Related Financial Disclosures (TCFD). We have identified and assessed climate-related risks and opportunities. The analysis recognized and defined three physical risks and ten transition risks, including regulatory and legal risks, technological risks, market risks, and reputational risks. All 13 risks were evaluated by the management in order to assess their likelihood of occurrence, time horizon, and potential financial impact. The risk assessment will be further developed in 2021. Going forward, we will also establish a standardized process for annual identification and assessment of climate- related risks, and their integration into our overall risk management. Cloudberry has performed a preliminary internal assessment concerning the likelihood of occurrence. The financial impact is defined as low when less than NOK 10 million, medium when between NOK 10 and 100 million, and high when the financial impact is higher than NOK 100 million. Moreover, Cloudberry has defined a time horizon where short is within the next three years, medium spans from three to ten years, and long is more than ten years. The likelihood assessments, as well as the definition of financial impact and time horizon, are provisional and may be subject to change in the years to come due to fur- ther development and more accurate calculations based on scenario analysis. Financial Impact Low Medium High NOK million < 10 10-100 > 100 The matrix on the following pages provides an over- view of Cloudberry’s climate-related risks and oppor- tunities, their defined likelihood of occurrence, financial impact, time horizon, as well as the company’s plans for risk mitigation and opportunity realization: