Sustainability

Social impact

Health, safety and security:
Fatalities: 0, LTIF: 1.9, TRIF: 3.0, High potential incidents: 1.2

Suppliers:
Four workshops with strategic suppliers on ESG related topics during 2021.
A-score (leadership) for supplier engagement on climate change (CDP)

Gender equality and diversity:
29% females globally and 51 different nationalities in 2021
Enrolled in the AFF Fifty-Fifty programme to promote females in mgt positions

Local value creation:
50+ ongoing local development programmes
Cumulatively close to 18,000 direct jobs from projects under construction to date

Top ESG ratings

The Governance Group: A+ rating, Number 1 out of the 100 largest companies on the Oslo Stock Exchange on ESG reporting

Carbon Disclosure Project (CDP): A list company, top score on climate reporting and transparency

Sustainalytics: Low risk #1 of 450 – Utilities and #1 of 48 – Renewable power producers

ISS ESG: A- (excellent) – status: prime

MSCI: AAA Top rating – highest scoring range relative to global peers

Ecovadis: Silver, Overall score within the 92nd percentile

Climate impact

Clean energy: 3,823 GWh
Delivered 3,823 GWh clean energy in 2021, up from 1,602 in 2020. Mainly driven by the acquisition of SN Power, but also new solar plants placed in operation.

GHG emissions avoided: 4.8 mill tCO2e
GHG emissions avoided for all projects in 2021 reached 4.8 million tCO2e, up from 1.6 million tCO2e in 2020. The increase mainly comes from the addition of six hydropower plants in Laos, the Philippines and Uganda. The figure includes all projects where Scatec has an ownership share.

Climate target: Net zero by 2040
Climate target set in line with the 1.5°C scenario.
Scope 1 and 2: Zero direct emissions and emissions from electricity by 2030.
Scope 3: >40% reduction/kWh by 2030 and >97% reduction/kWh by 2040.

Reporting on material ESG topics

We have identified ten material ESG topics through stakeholder engagement and internal assessments. We report on each topic in detail in our ESG Performance Report 2021 and more information can be found on the links below.

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EU Taxonomy assessment

In 2021 we undertook a full assessment of Scatec’s business against the criteria of the EU Taxonomy

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All Scatec’s revenues, operating expenses and investments are derived from Taxonomy eligible activities. In 2021, third-party assessments were carried out to evaluate the Company’s alignment with the EU Taxonomy. The solar PV projects were considered Taxonomy aligned through an external assessment early in 2021. The hydropower and wind assets were assessed during the third and fourth quarter against the criteria for lifecycle greenhouse gas (GHG) emissions and the Do No Significant Harm (DNSH) principle.

The assessment of the lifecycle greenhouse gas (GHG) emissions for the operating hydropower assets confirmed that emissions are significantly below the threshold set out in the EU Taxonomy (100gCO2/kWh). The assessment of the DNSH principle of the EU Taxonomy Annex 1 Technical screening criteria confirmed that the assets are aligned with the Taxonomy DNSH criteria, but lack a detailed site-specific climate risk assessment. Such assessments are currently being implemented in order for the assets to be Taxonomy aligned by year end 2022.

Third-party assessments and verification statements are available under “EU Taxonomy” on the corporate website.

Sustainability highlights 2021

Human and labour rights in Xinjiang, China

In 2021, we continued our strong efforts and collaborations to address the alleged forced labour issues in the solar production industry in Xinjiang, China. Key initiatives included traceability audits, collaboration with peers and specialist consultants, updates of governing documents and exploration of alternative sourcing of polysilicon. All new suppliers were screened on environmental and social criteria in 2021.

Stronger integration of biodiversity criteria

We developed and published an Environmental Policy in 2021. Biodiversity requirements include a commitment not to develop projects in areas where a threat to critically endangered species cannot be mitigated and an aim to achieve no net loss in all projects.

Scatec’s Environmental and Social Management System (ESMS) was reviewed to ensure the integration of biodiversity concerns for all technologies.

Standardised human rights training to security personnel

We rolled out standardised human rights training to all security personnel at our project locations globally. The training was conducted at 95% of all operational project sites as per the publication of this report. Remaining locations will be covered during the first quarter of 2022.

Effective grievance mechanism across all projects

In 2021, the total number of grievances received from projects in operation and under site construction amounted to 28, of which 79% were resolved as of the publication of this report. The unresolved grievances at year-end 2021 relate to a flooding incident at our Agua Fria site in Honduras that affected a nearby community. We are working to establish long-term solutions with all relevant stakeholders to prevent the flooding issue in future.

Strengthening our supplier management processes

To further strengthen our supplier management and monitoring, we enrolled in a three-year programme with EcoVadis, a global ESG supplier management platform. In 2022, all key suppliers will be assessed through the platform on four key areas including Environment, Labour and Human Rights, Ethics, and Sustainable Procurement.

The EcoVadis assessment and its corresponding scorecard will address our Company’s target to develop global supplier scorecards and corresponding KPIs.

Scatec ranked number one in ESG reporting

Scatec awarded with top rating (A+) among the 100 largest companies on the Oslo Stock Exchange, placing the company, along with Norsk Hydro, as a leader in ESG reporting in Norway.

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Scatec awarded top rating for climate transparency

Scatec was again recognised with a place on the Carbon Disclosure Project’s (CDPs) prestigious ‘A’ List for tackling climate change in 2021.

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