39 Cloudberry Annual report 2022 Sustainability report Material sustainability topics ESRS Topic Inside-out Outside-in E1 – Climate change Climate Impact Positive: Cloudberry’s development and production of renewable wind and hydro power contributes positively to society’s overall energy decarbonization, which helps to mitigate climate change. Negative: The manufacturing and transport of the components used in renewable energy production, along with production site construction, are significant sources of greenhouse gas emissions. Opportunities: There will likely be an increase in funding for renewable energy development as society tries to limit climate change and reduce emissions. As an established clean energy company with a clear focus on environmental and social sustainability, Cloudberry is well positioned to take advantage of this growth opportunity. Risks: Climate change will cause changes in precipitation patterns, which will make hydro power less reliable in the future. This risk can be minimized by establishing a resilient network of hydropower plants in different locations. Climate change will also cause an increase in extreme weather events, which could damage assets. E4 – Biodiversity and ecosystems Nature impact and biodiversity Positive: Cloudberry has an indirect positive impact on nature and biodiversity through the production of renewable energy, which contributes to the mitigation of climate change. This is positive because climate change constitutes a serious threat to the existence of many species, the world’s ecosystems, and therefore biodiversity as a whole. Negative: On the other hand, Cloudberry has direct and indirect negative impacts on nature and biodiversity. Indirectly, the extraction of raw materials that Cloudberry uses harm nature in the areas they come from. Cloudberry’s construction of projects have a direct negative nature impact, which we are working to minimize. Opportunities: Cloudberry has the opportunity to be an industry leader regarding nature impact and biodiversity and is currently working to develop relevant KPIs and planning how to reduce our impact. This would make us an attractive partner to work with for organizations and communities which are focusing on reducing nature impact risk and halting biodiversity loss. Risks: Regulators, local communities, environmental activists, and the general public are becoming more aware of the global biodiversity crisis and focusing more on the risks that renewable energy generation pose to nature and biodiversity. Public opinion turning against development of wind and hydro power plants is a risk to Cloudberry’s operations and we are working to minimize our impact and maintain an open, transparent dialogue with stakeholders in the areas in order to minimize this risk. E5 – resource use and circular economy Resource use and circularity Positive: Cloudberry works to use resources in a circular manner wherever possible, such as in our own offices, and by encouraging suppliers to be as resource efficient as possible. In the future, Cloudberry will work actively to improve circularity related to wind turbines and other critical use components for renewable energy. Negative: While hydropower plants have long lifecycles, which is good for circular resource use, the opposite is for wind energy at current stage. It is still a challenge the recycling of the wind turbine blades, and the same for the concrete used in the foundations this is some of the negative impact on overall circular material use. Opportunities: The renewable energy industry is not very mature when it comes to circular resource use, giving Cloudberry the opportunity to be a front runner. Increasing circular resource use is also a direct financial opportunity, as successful material or component reuse would reduce the company’s costs. Risks: There are some regulatory risks regarding circular resource use in the renewable energy industry. For example, governing bodies may impose fees or other costs for the end of life handling of resources. Additionally, there is a reputational risk for Cloudberry if wind turbine blades end up in the landfill.
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