Letter from our CEO

Dear Stakeholders,

125 years ago, Arendals Fossekompani was established to produce renewable energy. We are part of the solution to the UN Sustainable Development Goals. Also, as a member of UN Global Compact, we continue to support its ten principles for responsible business policies for human rights, labor, environment and anti-corruption.

AFK continues to be a producer of clean energy, but our contribution to the environment goes beyond the production of hydropower. All of our portfolio companies are in some way enabling a more sustainable tomorrow. Our companies ensure more sustainable utilization of their customers’ resources, and they provide technologies, systems and solutions that make energy from renewable sources increasingly accessible and usable.

By developing sustainable products and services, Arendals Fossekompani ensures long-term value creation for customers, shareholders, employees and society.

For Arendals Fossekompani, sustainability is not a megatrend. It is what we are, and what we do. We have a proud heritage based on the belief that natural resources also belong to future generations.

2020 was a special year for all of us. The Covid-19 pandemic changed the way we work and interact professionally and privately. I am proud of the way the situation has been handled by all our portfolio companies. Our primary concern was of course to keep people safe, but also to remain a trusted business partner. I believe we mastered both, and our results throughout this challenging year, makes me proud of the organization and the way we all contributed to developing and improving our companies.

The society is increasingly concerned with how companies work with what is referred to as ESG: Environment – Social – Governance. With a natural and positive relationship to these issues, it is both right and important that we become better at communicating, reporting, and taking concrete measures in this field.

In a 2020 strategic sustainability project, Arendals Fossekompani worked closely with all our portfolio companies to conduct customer and market reviews, value chain analyses and general stakeholder assessment to help identify and prioritize the most important ESG aspects within the companies. A materiality analysis will be presented in this report, together with our first climate risk analysis. In 2021, we will manage the risks and further explore the opportunities we have identified.

Arendals Fossekompani has a long-term plan to raise our awareness and efforts, and to improve our reporting, in the area of sustainability and corporate social responsibility. The rules for reporting are changing rapidly. We will make sure to comply with the requirements from the EU and other policymakers. In
2020, we took our first steps in order to be able to report both in accordance with GRI (Global Reporting Initiative) and TCFD (Task Force on Climate-related Financial Disclosures).

Our sustainability ambitions and targets for 2021 are found in this report. We will continue to have a close and open dialogue with customers, partners, shareholders, financial institutions, employees and other stakeholders, to ensure alignment with their key concerns regarding sustainability. In 2021 we will further develop our sustainability report, our targets and efforts, and we will assist our portfolio companies in doing the same.

Ørjan Svanevik