Clean and sustainable energy
Sustainability is at the heart of everything we do – not a requirement, but a part of our identity and strategy. We combine climate benefits with social and economic value.
How we work with sustainability
Scatec develops, builds, owns, operates, and maintains power plants that generate clean electricity. Electricity is essential for the economic growth of nations and human welfare. The goal is to increase access to clean, affordable, and renewable electricity generation in emerging markets. Sustainability is a strategic priority for Scatec.
Governance and risk management approach
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Sustainability is a fundamental aspect of the organisation and is incorporated into all business units. Each country’s sustainability team consists of corporate support teams and specialists who report to the global headquarters and ultimately to the Executive Vice President (EVP) People, Sustainability & Digitalisation, who is part of the Executive Management team (Management) reporting directly to the Board of Directors (Board).
The Audit and Sustainability Committee conducts quarterly reviews of Scatec’s sustainability reporting, while the Board regularly reviews material topics. This includes reviewing and advising on the Company’s sustainability strategy, evaluating and monitoring annual sustainability targets and results, and discussing strategic direction and other key decisions.
Sustainability topics, including health, safety and security, anti-corruption, responsible procurement, environmental and social impacts, and stakeholder engagement, are reviewed by the Management and the Board biweekly and monthly. For all projects, environmental and social risks are identified, reported, and actively managed with clear decision gates and requirements throughout all project phases. A detailed corporate ESG risk matrix is developed to ensure that relevant risks and their respective status are raised to the Management and the Board.
Scatec’s sustainability team collaborates closely with regional teams and business units to review and address relevant sustainability issues quarterly. The sustainability policy commitments are integrated into the organisational strategies, operational policies, and procedures through continuous collaboration with all business units on shared projects and initiatives.
Compliance
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Scatec adheres to the Equator Principles and IFC’s Environmental and Social Performance Standards for consistent project practices. We follow OECD Guidelines for Multinational Enterprises and collaborate with partners like IFC, Norfund, KLP, and major development banks, all of which maintain high standards for projects and their impacts.
Reporting and assurance
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Scatec reports in accordance with the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). We regard our report to be our Communication on Progress (COP) to the United Nations Global Compact (UNGC). Furthermore, this report builds upon our submissions to the Carbon Disclosure Project (CDP) and aligns with the principles of the Task Force on Climate-related Financial Disclosures (TCFD).
Scatec’s ESG data and sustainability reporting align with our annual financial audits. PwC, our financial auditor, reviewed our ESRS disclosure requirements in accordance with ISAE 3000. They conducted a full verification of all material sustainability matters with limited assurance.
2024: Key ESG performance
Our sustainability commitment is integral to our strategy as a leader. We promote renewable energy and reduce CO2 emissions through green footprint, responsible supply chain, and local value creation.
Leadership in sustainability
Our sustainability commitment goes beyond compliance; it is integral to our strategy to be recognised as a leader in sustainability. We aim to promote renewable energy growth and reduce global CO2 emissions. To achieve this, we focus on three areas: green footprint, responsible supply chain, and local value creation.
Green footprint
Scatec is responsible for addressing climate, circularity, and biodiversity. The goal is to reach net-zero emissions by 2040 with a detailed roadmap. For circularity, an end-of-life strategy for plants will be developed by 2027. The commitment to biodiversity includes aligning the nature agenda with the Task Force on Nature-Related Financial Disclosures (TNFD) by 2025, ensuring adherence to evolving regulations and stakeholder expectations. These three areas are expected to be key components of future EU regulations and stakeholder expectations.
Responsible supply chain
We focus on traceability, supplier engagement, and human rights. Our goal is to lead in solar PV supply chain traceability. Annually, we discuss key issues with all suppliers and conduct due diligence to ensure human rights compliance. We train employees to identify and address concerns, particularly regarding alleged forced labour in the polysilicon industry in Xinjiang, China.
Local value creation
We aim for 70% of construction workers to be locals and make long-term community investments. This is crucial for authorities and communities in our markets and aligns with Scatec’s strategy of ‘Improving our Future’.
Sustainability impacts, risks and opportunities
Renewables must respect nature, include social considerations, and involve society. Minimising impacts on biodiversity and local communities is crucial, and local value creation including economic development aid in the support for renewable energy deployment.
Scatec’s strategy focuses on transitioning from fossil fuels to reduce greenhouse gas emissions. Moving towards a decarbonised society is a key opportunity, as global electricity consumption is expected to rise between 2020 and 2050. Our renewable energy projects help lower emissions from fossil fuel-based electricity. Embracing climate-related opportunities driven by regulatory changes and growing renewable energy demand is central to our strategy. However, we acknowledge potential physical risks from extreme weather and transitional risks from increased regulation and market shifts. Intensifying climate ambitions may also lead to increased competition impacting prices. To address these challenges, our Net Zero Roadmap outlines five initiatives aimed at achieving net-zero emissions by 2040.
Utility-scale renewable energy projects can impact the environment by degrading habitats, reducing resources, and transforming ecosystems, which affects biodiversity. Scatec aims to implement measures to minimise these impacts and restore biodiversity, ensuring sustainable management and conservation for future generations.
Renewable energy projects necessitate significant resource investments for their construction. Given that power purchase agreements (PPAs) can extend up to 30 years, these projects must be meticulously designed and managed to ensure sustained performance and proper decommissioning. Additionally, it is imperative to responsibly decommission these projects at the end of their lifecycle to mitigate or minimise waste and its environmental impact.
Scatec thrives on a skilled, driven, and diverse team. Our mission is to provide affordable, clean energy globally through an ambitious vision of a better future. We value creativity, innovation, and global collaboration. Scatec’s HSSE vision is built on teamwork to achieve zero harm.
We aim to maintain a responsible supply chain and focus on our value chain as part of our sustainability efforts. We monitor and report on key ESG risks and performance, and select suppliers with strong sustainability practices. We respect and protect all internationally recognised human rights, strive for zero harm to contractors’ personnel, materials, and the environment, and prepare for emergencies to minimise impacts.
Throughout our operations, we place significant emphasis on the human rights that may be affected and on protecting vulnerable groups. We maintain continuous communication with local communities regarding our projects and their potential impacts. Additionally, we implement long-term development programmes and contribute to local job creation and skills transfer.
The renewables industry is driven by those who envision a better future. However, many countries we work in face corruption challenges. We rigorously prevent unethical practices, maintain zero tolerance for bribery and corruption, and uphold high business ethics standards.
