51 Cloudberry Annual report 2021 Sustainability report TCFD Risk Like- lihood 1 Financial Impact 2 Time Horizon 3 Description Risk mitigation Opportunity Revised regulation of new water/ hydro permits Medium Low Medium Revision of existing hydropower regulation plans is considered a low risk as the concessions are perpetual. Revised regulation of new permits might be more restrictive regarding minimum water flows, reservoir level changes, etc., to better preserve natural habitats, fish spawning, etc. Cloudberry`s Chief Commercial Officer is responsible for communication and government relations. Cloudberry has established a government relations strategy and plan for staying ahead of laws and regulations in all projects as well as in regular operations by closely following political proposals and industry association’s recommendations on new or revised regulations. Stricter regulations help and force developers like Cloudberry to focus on protecting biodiversity and environmental impact under construction. Revised wind power permitting High Medium Short Cloudberry has upscaled its offshore unit as a result of increased activity from the offshore wind portfolio in Sweden. In Norway NVE is likely to be working from a revised and more conservative framework when considering permits for new wind power production projects. Cloudberry has established a government relations strategy and a plan for being proactive and with regard to public hearings and industry association’s recommendations on coming regulations. Focus on projects with low perceived conflict, seek industrial areas for developing wind projects, as opposed to hunting for the largest and most windy sites. Build industrial value chains with local stakeholders to address local opportunities with local renewable projects. Improved production technologies Medium Low Medium Technology related to hydro and wind generators experiences rapid improvements. Cloudberry has purchased 60% of the Captiva Group, a data-driven operator, manager, and developer of renewable energy, which delivers management services within operations and maintenance, e.g., technical and commercial digital services, and operational intelligence, visualization and reporting solutions to renewable energy projects in the Nordics. Cloudberry will maintain a portfolio of projects employing relevant and efficient technology. Moreover, the company will invest in power plants of expected good technical standards and prioritize technical solutions that are well-proven and delivered by reputable suppliers. Technical improvements and lower cost on e.g., turbines will improve the profitability of Cloudberry’s development backlog. In general, with wellproven technical solutions, management, technical services, and repairs can be made within reasonable time and cost, and attractive insurance terms are accessible. 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 Policy and legal Technology
RkJQdWJsaXNoZXIy NTYyMDE=