Cloudberry Annual report 2021 Sustainability report 52 TCFD Risk Like- lihood 1 Financial Impact 2 Time Horizon 3 Description Risk mitigation Opportunity 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, and in 2021 we experienced the opposite with all-time high power prices). Power prices may rise from increased CO2 prices or higher electricity demand, or they might fall from an expanded renewable supply. Positioning Cloudberry’s production portfolio so that the company is not dependent on one price area nor to one production technology, as a hedge towards locked-in whether depressed prices. Cloudberry has a welldeveloped overall risk management strategy were including price hedging of electricity, and a small portion of the portfolio with PPA to secure some 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. 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 Market
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