Cloudberry Annual report 2021 Sustainability report 60 Our approach and activities Cloudberry always considers the environmental and social impacts prior to final investment decisions (FID), and this is integrated in Cloudberry`s ESG due diligence guideline for all our development and construction projects. Below we describe our value chain and examples on how we assess sustainability topics within each stage of the process. Production Construction Detail planning Development Backlog Identifying Pipeline The Identifying stage “Pipeline” In this stage, the opportunities for a windfarm or a hydropower plant in specific areas are explored and involves assessing the power grid capacity. Our policy is to seek locations where impact evaluations on nature have already been performed in order to limit the size of the area impacted. When identifying new areas for wind power, Cloudberry focuses on “low impact areas”, and we also prefer to find “high need areas”. In Björnetjärnsberget, both these aspects are fulfilled. The area is identified in the municipality’s plan as potentially suitable for wind power, which means that they have already conducted several pre-studies in the area and concluded that it is a low impact area regarding nature, culture, and social impact. For Cloudberry, this gives a solid base to continue the environmental assessment of the development work including bird, other animals, nature, and culture studies. Close to Björnetjärnsberget, there is a local sawmill which is an important employer in the area. The sawmill suffers from several power outages annually and needs a better grid connection. Together with Björnetjärnsberget, Cloudberry cooperates on the grid connection in order to find a solution that fits both. The area is therefore also identified as a high need area of power. Furthermore, we evaluate the landowner’s interest for having a power production plant on their grounds, as well as identifying the local political view towards such an establishment. In Sweden, municipal plans for wind power are already in place. Cloudberry seeks to minimize the visual impact and aims to build larger, but fewer turbines to reduce land use and noise level on the ground whilst seeking to balance the size of the shade area and potential ice throw during cold weather. Wind power plants and surrounding infrastructure may also impact the conditions of fauna and flora, animals and birdlife and may change their conditions of life. Further studies relating to the environment, nature and wildlife are carried out to identify potential negative consequences of the project. These studies need to conclude on an acceptable risk level prior to progressing to the next step, which is negotiating and entering into an agreement, the “procurement”, with landowners and possibly other parties. The Development stage “Backlog” In the development stage, the formal notification with a description of the project is submitted to the authorities. Public meetings are held to inform stakeholders. In Norway, The Norwegian Water Resources and Energy Directorate (NVE) handles both wind and hydro power applications, whilst in Sweden, the County Administrative Board handles onshore wind power, and the Land and Environmental Court handles offshore wind power. Necessary environmental impact assessments (EIA) are carried out and describe any negative environmental consequences e.g., on biodiversity, caused by the construction and operation of the power plant. The EIAs are performed by specialist consultants. The benefits of the project must exceed the perceived negative environmental impact. If the environmental impacts are acceptable and within regulatory requirements, the final application is prepared and submitted to the authorities and the development of the project can proceed.
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