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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Our sustainability approach
Sustainability is an integral part of our strategy, and we work closely with our portfolio companies to enhance our collective ESG performance. As an industrial investment company our approach to sustainability spans across both the investment and the ownership phase.
Investment
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.
Ownership
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
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.
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.
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.
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.
EU Taxonomy
EU Taxonomy eligibility and alignment for Arendals Fossekompani Group 2024
Turnover
- Aligned
- 8.3%
- Eligible, not aligned
- 51.5%
- Non-eligible
- 40.2%
CapEx2
- Aligned
- 0.9%
- Eligible, not aligned
- 80.3%
- Non-eligible
- 18.7%
OpEx3
- Aligned
- 11.5%
- Eligible, not aligned
- 69.1%
- Non-eligible
- 19.4%
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.
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