Annual Report 2024
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Sustainability
Sustainability through generations
Arendals Fossekompani is the result of responsible choices through generations. Our focus on sustainability ensures long-term value creation for shareholders, employees and society.
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Explore Sustainability
Sustainability in Arendals Fossekompani
For more than 100 years, we have produced hydropower which has been used to build Norwegian industry and Norwegian communities. The know-how, capital and engineering skills related to the production of hydropower have shaped the foundation of Arendals Fossekompani. Today we are active owners and developers of future-oriented companies within energy and technology. Sustainability is an integral part of our investment strategy, and we work closely with our portfolio companies to enhance our collective performance on environmental, social and governance topics (ESG).
Our sustainability approach
Sustainability is an integral part of our investment strategy, and we work closely with our portfolio companies to enhance our collective ESG performance. Our approach to sustainability spans both phases of our activity as a company.
The investment phase:
Sustainable and transition financing is essential to reach the objectives of the Paris Agreement, as well as supporting agreements like the EU Green Deal. When Arendals Fossekompani screens and sources new companies for M&A, ESG is an essential consideration. Our primary investment universe focuses on B2B companies in sustainable energy and technology sectors, and new investments must contribute, or have a path to contribute, to at least one of the six environmental goals outlined in the EU Taxonomy.
The ownership phase:
ESG is part of the business value creation process, and at times a key value creation lever for our portfolio companies. We believe in active, long-term, and responsible ownership. We engage with our portfolio companies, including on issues relating to sustainability. As an investor and as an owner, we seek to minimise and mitigate any adverse impacts we may have on ESG matters, both in our own operations and across our value chain where possible. We also seek to promote sustainability by contributing to the green transition, to fair and diverse companies and societies, and to responsible and ethical business conduct
Our strategic material sustainability topics
1
Climate change
Climate change
Arendals Fossekompani Group contributes to climate change through our greenhouse gas emissions. We also work to combat it, both through our renewable power production and services. If we do not adapt, we are vulnerable to a changing climate.
2
Resource Use and Circular Economy
Resource Use and Circular Economy
We rely on the extraction of raw materials upstream, particularly for the productionheavy companies in the Group. We aim to establish a baseline for a future target on sustainable resource sourcing by the end of 2025, and a meaningful target in 2026.
3
Own Workforce
Own Workforce
With employees globally, Arendals Fossekompani as a group is reliant on our people as our most valuable asset. This dependency on employees’ wellbeing and safety presents a financial risk that requires continuous monitoring. We also see an opportunity to continue nurturing diversity and equality throughout the Group’s global workforce.
4
Business Conduct
Business Conduct
With own operations in 21 countries and sourcing from many more, the Arendals Fossekompani Group is exposed to corruption risks in business conduct and general risks of breaches to our corporate conduct that require ongoing focus. We are also a potential target for cyber-attacks, which demand sophisticated preventaion and strong internal controls.
Sustainability partnerships
Arendals Fossekompani has been rated by globally recognized rating frameworks.
Ask us about sustainability
The sustainability team is committed to improving the way Arendals Fossekompani addresses environmental, social and governance issues. If you have any inquiries, do not hesitate to contact us. For questions specifically regarding the Transparency Act, please contact Hanne Watts.
