Cloudberry Clean Energy Annual report 2020

Cloudberry Annual report 2020 Sustainability 38 TCFD Risk Like- lihood 1) Financial Impact 2) Time Horizon 3) Description Risk mitigation Opportunity Improved production tech- nologies Medium Low Medium Solar PV will come to be competitive also in the Nordics. Technology related to wind generators is experiencing rapid improvements. Cloudberry seeks to maintain a portfolio with relevant and efficient technology. Moreover, the company aims to invest in power plants of expected good technical standards and prioritize technical solutions that are well-proven and delivered by reputable suppliers. Technical problems may still occur, which means possible halts in production and/or costly reinvestments that reduce profitability and/or financial position. Technical improvements and lower cost on turbines will improve the profitability of Cloudberry’s development backlog. With well-proven technical solutions, repairs can be made within reasonable time/ cost, and attractive insurance terms are accessible. Lower power prices Medium High Long Cloudberry cautiously follows the market fundamentals and power price forecasts in the short- and long-term. It is difficult to predict power prices in the short- term (e.g., 2020 weather conditions led to a production surplus that affected power prices). Power prices may rise from increased CO 2 prices or higher electricity demand, or they might fall from an expanded renewable supply. Positioning Cloudberry's production portfolio so that we are not dependent on one price area nor to one production technology, as a hedge towards locked-in whether depressed prices. PPA to secure fixed income in the short- and medium-term. 40% expected increase in Nordic power consumption by 2040, largely due to the electrification of power-intensive industries, as well as data expansion, etc. Ambitious climate goals will lead to a reduction in fossil fuel consumption. Interconnectors between Norway and Northern Europe. 50% of European power production is expected to come from solar PV and wind by 2040. Access to capital Medium Medium Short The financial capital market has a fast- growing focus on ESG investments, highlighting the importance of a sustainable business model. The ESG assessments have a major impact on access to capital and the valuation of companies’ equity and debt. Investors increasingly take this into account in their investment decisions. Be aware that it is not sufficient to align Cloudberry’s business model with financial market requirements without including all aspects of the ESG segment. In 2020 Cloudberry focused on strengthening its sustainability management. Continue to develop projects and producing power plants with high environmental quality requirements, which will attract investors and financial business partners and eventually green funding. 1) The likelihood is based on provisional internal assessments and will be further developed through scenario analyses in the years to come 2) Financial impact: Low < 10 mill, Medium 10-100 mill, High > 100 mill 3) Time horizon: Short: 0-3 years, Medium: 3-10 years, Long: more than 10 years Transitional Risks and Opportunities Technology Market