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EU Taxonomy

As a leading renewable energy provider, Scatec is dedicated to accelerating access to reliable and affordable clean energy in emerging markets. All our economic activities are Taxonomy eligible as they have the potential to contribute to the environmental objective of climate change mitigation. Scatec and our third parties carried out multiple assessments over the last few years to confirm alignment of our economic activities with the Taxonomy criteria and identify potential gaps.

The main actions taken to assess and ensure alignment of our economic activities, included:

Substantial contribution criteria

  • Scatec’s solar and wind projects were assessed against the substantial contribution criteria and found aligned. 
  • Following Scatec’s acquisition of SN Power, a major hydropower player in 2021, Taxonomy alignment was assessed for these economic activities. 
  • In 2021, an internal assessment was conducted followed by a detailed assessment per project by an independent third party. 
  • As hydropower has requirements for greenhouse gas (GHG) emissions under 100 gCO2e/kWh, independent GHG assessments were made for all Scatec’s hydropower investments. The results reflected that all hydropower projects were well below the 100 gCO2e/kWh threshold. 
  • Our business segment, Release, includes the same solar technology as in the solar photovoltaic (PV) technology reported above and are as such covered by the same substantial contribution criteria. Release projects are, however, portable energy equipment leased on site to customers. As such, the economic activity is part of an onsite installation, maintenance and repair of renewable energy technologies, which is an enabling activity in the Taxonomy.

Do no significant harm (DNSH) criteria

  • Our solar and wind projects were assessed against the Do no significant harm (DNSH) criteria and it was identified that detailed climate risk assessments were lacking per project.
  • Therefore, in 2022, an internal climate risk and risk mitigation assessment was performed for each solar and wind project site.
  • Assessments of the DNSH criteria found the existing hydropower project sites to be aligned based on available documentation, such as environmental and social impact assessments (ESIAs). Site specific climate risk assessments were initially lacking.
  • In 2022, we engaged an independent third-party to conduct detailed climate risk assessments for its hydropower investments, of which all work was completed by year end.
  • To ensure that our Release activities do not lead to lock in of assets that undermine the long-term environmental goals, Scatec has reviewed the intended use of Release assets in our customer portfolio. Our Release projects are not intended to be used to directly enable fossil fuel production or other activities directly harmful to environmental goals.

Minimum social safeguards

  • We assessed our solar, wind and hydropower activities according to the minimum social safeguards in the Taxonomy. 
  • Our human rights policy is aligned with the United Nations (UN) Guiding Principles on Business and Human Rights to prevent, address, and remedy human rights abuses committed in business operations. 
  • Our Code of Conduct prohibits corruption, and we implement internal controls to prevent, detect and remedy improper conduct through our Anti-Corruption Compliance Programme.

In 2022, we worked to integrate Taxonomy criteria for all new hydropower projects. We are working on further developing key performance indicators linked to the Taxonomy in 2023.

Scatec’s 2022 reporting is presented below, aligned to our best interpretation of the EU Taxonomy criteria and guidelines. Revenue, opex and capex are reported based on our International Financial Reporting Standards (IFRS) consolidated figures.

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Revenue Capex Opex
NOK mill Percentage NOK mill Percentage NOK mill Percentage
Eligible 3,002 100% 1,941 98% 483 100%
Aligned 3,002 100% 1,769 91% 417 86%
Expected to be aligned - - 172 9% 66 14%
Non eligible - - 44 2% - -
  • 100% of Scatec’s revenue is derived from eligible activities that are aligned to the Taxonomy. 
  • Capex is 98% associated with Taxonomy eligible activities. Non-eligible capex is related to office leases, purchase of office fixtures and equipment and capitalisation on internal projects. 
  • Of the eligible capex, 91% relates to aligned activities while 9% is associated with capital expenditure related to new technologies and projects, such as our green hydrogen facility (not yet assessed), that are expected to generate Taxonomy aligned revenue when reaching production. 
  • The operating expenses included per the definition of the Taxonomy is 100% related to activities that are Taxonomy aligned or associated with development of technologies and projects that are expected to generate Taxonomy aligned revenue.

Refer to our EU Taxonomy Report 2022 available on our corporate website.