2022 analysis: five themes of most material impact
1. Carbon emissions from renewable energy supply chains
Impact on surroundings
There are carbon emissions tied to the manufacturing, installation, and operation of our renewable energy assets. These activities account for the majority of carbon emissions throughout the life cycle of our renewable energy assets. In order to maximise the climate benefits of our renewable energy and deliver science-aligned climate action, we must work to reduce our supply chain emissions.
Impact on our business
Our assets and operations are exposed to both direct and indirect effects from climate change. Direct impacts include physical damage from extreme weather events. Indirect impacts include disruptions to our supply chains and potentially supply shortages.
Our response
We’re taking leading action to decarbonise our supply chains through our programme ‘Decarbonisation of supply chain and natural gas wholesales’.
In addition, we build resilient assets that can withstand the climate they’re operating in during their expected lifetime.
2. Biodiversity and local ecosystems
Impact on surroundings
Constructing and operating renewable energy assets can impact local environments wherever they’re built. These impacts can be temporary, such as noise from construction, or more permanent, such as habitat loss resulting from the installation of offshore wind foundations. If not addressed correctly, there’s a risk of negatively impacting surrounding natural environments.
Impact on business
If we fail to address and manage the biodiversity impacts related to our business, we risk project delays or cancellations.
Our response
We continue to ramp up efforts to make sure our projects contribute positively to nature through our programme ‘Energy projects with net-positive biodiversity impact’.
3. Circular resource use
Impact on surroundings
Building green energy assets at the scale and speed required is dependent on the use of raw materials and water, which are already under pressure. If not handled responsibly, this can lead to adverse impacts on both the environment and people.
Impact on business
The materials needed for renewable energy are increasingly in demand, potentially leading to increased competition, higher costs, and supply chain bottlenecks. If we can’t access the materials we need, we face severe risks in terms of project delays, cost increases, and reduced stakeholder confidence. Creating a more circular value chain brings an opportunity to lower our dependency on raw materials and build a resilient supply chain.
Our response
We work to build a strategic circular approach through our programme ‘Circular resource use’.
4. Communities
Impact on surroundings
As the build-out continues, renewable energy structures will become part of more and more communities. Many of these have concerns, needs, and expectations that we must listen to and address. If built right, in balance with community expectations and ensuring respect for human rights, renewable energy projects have massive potential to revitalise communities.
Impact on business
Failing to understand and address the concerns and expectations from the communities in which we operate can cause permitting and construction delays, lead to the abandonment of planned projects, or damage our reputation as a trusted build-out partner able to drive a just transition.
Our response
We’re strengthening our strategic approach through our programme ‘Thriving communities’.
5. Human and labour rights
Impact on surroundings
Our business impacts the lives of people across our own operations, our supply chains, and communities. As we continue to grow, we need to make sure that we respect human rights in everything we do and that no one is adversely impacted, specifically in regions or industries where regulations are weaker.
Impact on business
If we do not ensure that labour and human rights are respected across our operations, supply chains and communities, we risk severe regulatory and reputational damage to our business, and potential supply chain disruptions causing project delays.
Our response
This theme forms the basis for our sustainability focus area on people. We work specifically to strengthen our human rights due diligence approach through our programme ‘Human rights management and integration’.
