At Falck Renewables sustainability is not just producing and enabling the use of sustainable energy, it is also about creating shared value for all our stakeholders while safeguarding the environment where we operate.
Sustainability permeates all our decisions and business systems, guiding our strategy and activities and representing a core part of our identity.
We operate a distinctive business model which combines economic sustainability with the generation of social and environmental value, and we are constantly striving for innovative ways to deliver our services.
We see ourselves as key to enabling not only our own goals but also those of our stakeholders. With a business based on our solid and transparent industrial, ethical and social principles we make a tangible contribution to global and local sustainable development which is outlined in our Sustainability Report 2021.
Analysing our business approach from a sustainability point of view allows us to focus on and highlight the aspects that are part of the sustainable growth strategy. The materiality matrix is a snapshot of the sustainability issues that are most relevant to our ability to generate and share value and meet the expectations of our stakeholders.
These are areas of commitment that help strengthen our sustainability impact and reinforce our goal of being recognised as a leader on these issues and are all positioned in the highest relevance sector of the matrix. The annual updating of the matrix with input from our stakeholders also highlights priority areas where we need to develop our sustainability strategies and actions.
OUR 2021 RESULTS AND FUTURE TARGETS
We have identified four strategic sustainability goals, one for each of the 4 Capitals (economic & productive, social & relational, environmental & climate, human) our business works towards. The progress towards these goals is measured through a set of KPIs which evaluate our sustainability actions and performance in our Roadmap 2025.
ECONOMIC AND PRODUCTIVE
distributed added value¹
SOCIAL AND RELATIONAL
percentage of our plants with a significant community engagement programme²
ENVIRONMENTAL AND CLIMATE
CO₂ emissions avoided⁴
yearly individual hours of training
¹ To stakeholders such as employees, shareholders, loan capital providers, central and local governments and local communities.
² To be understood as the involvement of local communities through cooperative and ownership arrangements, benefit plans, crowdfunding initiatives or through the local enablement of sustainable energy consumption services (i.e. community energy PPA, access to net metering credit lines, etc.) for the benefit of communities or public utilities.
³ The rate calculated on the 2020 values is higher when compared to 2021 mainly due to the increase in the number of plants included in the reporting perimeter: the 2020 data did not include the Behus plants, which entered the perimeter at the end of November 2020.
⁴ References of the emission factors applied to this report: USA: "Emission Factors for Greenhouse Gas Inventories" (US EPA, 2021): 0.306 tCO₂/MWh for North Carolina and Virginia, 0.2215 tCO₂/MWh for Massachusetts, 0.4976 tCO₂/MWh for Iowa, 0.314 tCO₂/MWh for Maryland and 0.1052 tCO₂/MWh for New York; EU and UK: “Efficiency and decarbonization indicators for total energy consumption and power sector. Comparison among Italy and the biggest European countries” (ISPRA, 2021): 0.2686 tCO₂/MWh for Italy, 0.2089 tCO₂/MWh for Spain, 0.0533 tCO₂/MWh for France, 0.0212 tCO₂/MWh for Sweden and 0.231 tCO₂/MWh for UK; Norway: “Electricity disclosure 2018” (NVE-RME, update 2020): equal to 0.0189 tCO₂/MWh.
⁵ The emissions avoided in 2021 are lower than in 2020 due to the application of updated emission factors that have been affected by the progressive decarbonisation taking place in the countries where the Group operates. In the United States, the update also concerned the use of emission factors with reference to the single federal states in which the Group operates. With the coefficients applied in the 2020 edition of the Sustainability Report, the estimated avoided emissions would have amounted to approximately 0.6 MtCO₂eq.
⁶ Compared to 2020, the average hours increase provided per employee is equal to 56% and may be primarily ascribed to the fact that online courses are easier to access.
⁷ The 2022 target, lower if compared to 2021, is considered as consequence of the possibility of doing training in presence.
Economic and productive capital
Our business model is characterised by its guarantee of economic sustainability while generating social and environmental value. We look at development projects as a way of sharing opportunities with local communities. The distributed added value measures the wealth shared with our main stakeholders: shareholders, employees, central and peripheral public administrations, financial institutions, and the local communities in which we operate. For this reason, the added value distributed to all stakeholders is for us a performance indicator to measure annually the transformation of the economic and productive capital.
2021 result: € 174.8M
the added value distributed to all stakeholders
2025 Target: € 255M
Social and relational capital
The communities where we operate are the framework for our operations and make the development of our business possible. We redistribute and share the value generated with them by promoting a green transition that is first and foremost inclusive. We encourage the participation of local communities in our business through engagement models and initiatives aimed at enabling the sustainable development of the communities around our plants. We promote the use of the local workforce and a short supply chain. We support the creation of skills, competence and knowledge-sharing in relation to energy sustainability. The percentage of our plants with a significant community engagement programme of local communities in our business is the way in which we measure our capability to grow with the communities where we operate.
2021 result: 40%
the share of plants with a significant community engagement programme
2025 Target: 55%
Environmental and climate capital
The battle against climate change and the protection of the environment are the key goals of everything we do, and our aim is to work towards them by enabling and leading an inclusive and sustainable energy transition. The GHG emissions avoided thanks to wind and solar energy are the monitoring parameter of our commitment to the environment.
2021 Result: 0.54 MtCO₂eq
the GHG emissions avoided thanks to wind and solar energy
2025 Target: 1.22 MtCO₂eq
We believe in human talent and its diversity. This is why we try to create the conditions for development of our employees through continuing and individual learning in a healthy and safe working environment. The yearly average hours of training per employee, on average, allow us to keep track of this growth path.
The Sustainability Report and the non-financial statement are two essential documents in the sustainable performance reporting of a company. Federica Inzoli, Sustainability officer, in Next Solution’s podcast tells more about the goals and the structures of these two tools.