Cloudberry Annual report 2021 Sustainability report 50 TCFD Risk Like- lihood 1 Financial Impact 2 Time Horizon 3 Description Risk mitigation Opportunity Extreme Winds High Low Long Exacerbated wear-and-tear of wind turbines (i.e., increased service and maintenance/ repair costs). Higher risks/costs during construction (e.g., wind days and delayed construction). Temporary stop in production causes loss in production time, due to extreme winds. Cloudberry has emergency plans on-site on all our producing assets. A contingency plan including the climate risk topics is being established. The company uses certified and well-proven technology and aim for long service contracts with solid counterparts and makes sure that agreements with contractors have substantial buffers on weather-exposed operations. Finding solutions for how future wind turbines (or upgrades of older wind turbines) can maximize production based on increased wind strength. It also opens for the opportunity to build wind parks in less sensitive areas Extreme rainfall High Low Long Damage and production loss to hydropower stations (higher insurance premiums), as well as lost revenue from flow over the dams. The technical standard and capacity of our dams and pipelines are designed to withstand flooding. Cloudberry has emergency plans on-site on all its producing assets. A contingency plan including the climate risk topics is being established. More likely to get permits for adding regulation dams to our assets for flood prevention. An opportunity to increase the company’s production capacity and be able to take full advantage and be more efficient to produce more power. Overall, increased precipitation might increase revenue for the company. Warmer, wetter and windier High Low Long Wind farms will get more hours of production due to overall higher wind speeds, while the production of hydro plants will increase all over due to increased rainfall and fewer water-frozen days. Position the company and its power plants to maximize the benefits of the increased production potential. More power production (e.g., if snow is melting to a larger degree than normal, hydropower plants that previously have been water frozen during winters might be able to produce power during the winter as well). 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 Physical Risks and Opportunities Both acute and chronic
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