Sustainability Governance

The board bears the ultimate responsibility for ensuring that OX2 is governed in a sustainable and responsible manner. OX2's CEO reports outcomes regarding selected sustainability goals on a quarterly basis to the board. The board and executive management annually approve the sustainability report, and the Leadership team approves the materiality analysis when updated. Throughout the year, the board has been updated on all sustainability issues. The board has received training in anti-corruption and other business ethical rules. In addition, sustainability is continuously discussed to ensure that everyone is updated on the subject. A more comprehensive discussion on sustainability is conducted annually in the board.

The Board of Directors oversees OX2’s sustainable management. Operational sustainability responsibility is delegated to the CEO, who has appointed the Chief Communication, Sustainability and People Officer (CCSPO) to lead the Sustainability team. The Leadership team is responsible for setting overall OX2 sustainability targets which are confirmed by the Board of Directors.

The Sustainability team consists of the Group Head of Sustainability, the Environment and Climate Change Manager, and the HSE Director. The Sustainability team is responsible for developing and updating OX2’s sustainability framework and enabling sustainability reporting within OX2’s systems landscape. The Sustainability team further supports the integration of sustainability across the organization and improved sustainability performance.

The Country and Function managers are responsible for setting and delivering on country- and function specific targets aligned with the overall sustainability framework. Targets are confirmed by the Leadership team and progress is reported on a quarterly basis. These targets represent both our sustainability performance in the projects as well as our corporate sustainability ambition.

Project-specific sustainability targets are integrated into the project steering model. The Sustainable project guideline supports the Project managers in implementing all relevant sustainability targets. Progress on sustainability targets is reported in the project management system.

Materiality analysis

The materiality analysis is a tool for understanding which sustainability topics are most relevant to us and our stakeholders.

Stakeholders

OX2 holds ongoing dialogs with the company’s stakeholders. Dialog takes place in a range of
situations and channels in order to gain a better understanding of which sustainability topics different stakeholder groups consider to be important in relation to OX2 and what
significant impact different sustainability topics have, or may have, on the outside world. The stakeholders identified as being most central to OX2’s operations are customers, shareholders, analysts, employees and suppliers.

How we define what topics are material

Identify stakeholders and relevant forums for engagement
Engage with stakeholders to gain a greater understanding about impacts on and of sustainability topics
Analyze the outcome of the engagement
Prioritize sustainability topics
Set targets for the most material sustainability topics
Update a sustainability approach
Work according to the sustainability approach
Report on our work, progress and performance

The latest materiality analysis was conducted in 2023 and followed the GRI 2021 Standards.

Material sustainability topics

The sustainability topics that we have identified as material are described below.

Climate

Impact on the sustainability topic
The energy sector - electricity, heating and transport - gives rise to approximately 75% of the world's greenhouse gas emissions. Transformation of the energy sector is thus the key to reducing greenhouse gas emissions.

The sustainability topic’s impact on our business
The drive to limit climate change in line with the Paris Agreement and the 1.5-degree ambition is increasing the demand for renewable energy throughout the energy sector, and our business.

What we do
We want to be part of the solution and therefore intend to deliver climate benefits through our projects, and to do so in a sustainable way. Our science-based targets are to decrease GHG emissions from our own operations (scope 1 and 2) by 42% by 2030.

Health & safety

Impact on the sustainability topic
As an employer, OX2 provides the working environment and culture for employees and people who work on behalf of OX2. The work environment and safety culture have implications on the health and safety of employees and other workers.

The sustainability topic’s impact on our business
For OX2, the employees are its most valuable assets. Safeguarding their health and safety is therefore key to delivering projects in accordance with strategy.

What we do
OX2 enhances physical and social well-being at the workplace and strives to achieve high attendance levels and low numbers of long-term sick leave.

Community involvement

Impact on the sustainability topic
OX2’s community involvement focuses on the project’s impact on the local community, such as land leases, job opportunities and impacts on the local community’s activities in the project’s area.

The sustainability topic’s impact on our business
The social acceptance of our projects is key for project realization.

What we do
We see that local knowledge of the area is the key to a successful project that does not come at the expense of nature, which is why we look for local collaborations when developing projects.

Business conduct

Impact on the sustainability topic
Business ethics is about taking moral and ethical considerations into account in decision-making and avoiding unethical actions that could harm the company's reputation or cause harm to society. It also includes complying with laws and regulations governing business operations as well as striving for long-term sustainability and profitability rather than short-term profit.

The sustainability topic’s impact on our business
Business ethics is important for creating trust and a positive image for companies and organizations.

What we do
OX2 has zero tolerance towards bribery and corruption. In order to implement the company's strategy, we must act in a business ethical manner to avoid unethical actions that could prevent compliance with the strategy.

Responsible supply chain

Impact on the sustainability topic
Our business depends on goods and services from a global supply chain. Activities throughout our supply chain can have impacts on human rights, labor rights, pollution, and job opportunities. A high level of risk awareness is required to ensure the transition to a green and climate-neutral economy that is fair, inclusive, creates decent work opportunities, respects people's sovereignty over natural resources and safeguards the human rights of affected communities and indigenous peoples.

The sustainability topic’s impact on our business
The occurrence of undesirable impacts can cause supply chain disruptions, fines and damage to our business relationships.

What we do
OX2 wants to avoid directly causing or contributing to negative consequences for the environment, human rights and ethical guidelines and strives to prevent or mitigate negative impacts linked to our supply chain.

Biodiversity

Impact on the sustainability topic
The development of our projects has an impact on biodiversity as it involves an intrusion into nature when land is claimed.

The sustainability topic’s impact on our business
How nature is affected by our projects and the work we do to manage this is something that affects our relationship with the local community and landowners as well as our permits.

What we do
We aim to contribute to halting and reversing biodiversity loss. OX2’s biodiversity strategy guides us in our work towards our set target to develop nature-positive solar and windfarms by 2030.

Attract and retain employees

Impact on the sustainability topic
The work environment and culture at OX2 influence how long our employees stay at OX2 and to what extent they would recommend OX2 to others.

The sustainability topic’s impact on our business
Having the best individuals in multi-faceted, inclusive and high-performing teams with clear mandates will always be key to our success. To remain successful, we must be and be perceived as an attractive employer.

What we do
OX2 aims to be an attractive employer that meets the expectations of current and future employees.

Diversity & inclusion

Impact on the sustainability topic
As an employer, OX2 provides the working environment and culture for employees and people who work on behalf of OX2. The diversity of the workforce and to what extent they feel included are reflections of the work environment and culture at OX2.

The sustainability topic’s impact on our business
A workplace that is characterized by diversity and that has an inclusive culture brings value to OX2 through the effects it has on its workforce, and its ability to attract and retain employees. Research shows that inclusion and diversity enhance creativity, well-being, motivation, productivity, innovation, effective problem solving and lower sickness absence.

What we do
OX2 target is to uphold a gender balanced workforce (40/60).

Circularity

Impact on the sustainability topic
Materials used in renewable energy projects can have upstream impacts for nature and local communities. By moving towards more circular resource flows, negative impacts from material extraction, processing, and manufacturing can be avoided.

The sustainability topic’s impact on our business
The cost of our projects is affected by the price of materials, which in turn is linked to how material and energy flows look. By applying the principles of the circular economy – reuse and recycle – the material supply required to develop our projects is secured in the short and long term.

What we do
We work together with industry towards zero waste, guided by the steps of the waste hierarchy.