SUSTAINABILITY JOURNEY
Sustainability Report 2023
E n c a v i s | F o u n d a t i o n | Economics | Environment | People | Governance |
Contents ENCAVIS
Foreword
About this report
Organisational structure
Business model
Value creation structure
Our shared values
FOUNDATION
A superb sustainability strategy
Active listening
Sustainability strategy
03 | ECONOMICS | 15 | PEOPLE | 27 | |
03 | Growing the Encavis AG portfolio | 16 | Attractive employer | 28 | |
04 | Portfolio management for institutional investors | 17 | Social commitment | 32 | |
05 | Operational Excellence | 18 | |||
06 | We make it possible! | 20 | |||
07 | |||||
08 |
09 | ENVIRONMENT | 22 | GOVERNANCE | 35 | |
10 | Carbon-neutral power production | 23 | Compliance management system | 36 | |
11 | A promising outlook for biodiversity | Corporate responsibility | |||
13 | and the environment | 24 | doesn't end at our doorstep | 38 | |
A last look back before we move on | 41 | ||||
GRI Index | 42 | ||||
Company details | 48 |
ENCAVIS Sustainability Report 2023 | 02 |
E n c a v i s | F o u n d a t i o n | Economics | Environment |
People | Governance |
FOREWORD
GRI 2-22
DEAR ALL,
During the course of 2023, our world once again suffered under the severe backlash of global warming. The now familiar cycle of heatwaves, record temperatures, prolonged periods of drought and catastrophic flooding came thicker and faster than ever before. As life gets harder, people call with increasing urgency for solutions that will help us achieve the climate goals so necessary to our survival.
Renewable energy sources are one of the most effective weapons available in the fight against global warming. Our portfolio of wind farms and solar parks already plays an important role in creating a low-emission energy system.
Our personal, primary environmental goal is to achieve carbon neutrality by 2040. In the reporting year, our carbon reduction goals were validated by the SBTi (Science Based Targets initiative), who confirmed that our actions align with the guidelines issued by the Paris Agreement. These aim to restrict global warming to 1.5°C.
Expanding our capacities sustainably, however, is all a matter of taking the right approach. Above all, we need to expand our portfolio in a way that will not negatively impact the quality of life of future generations. Ensuring we do business in a manner that is sustainable over the long term means focusing on far more than just economic success factors.
The sustainability journey is one we must all travel together - we, our suppliers, shareholders, investors, partners, employees and everyone else with whom we collaborate in one form or another. Join us on our journey, and read our sustainability report to find out more about our progress in 2023. As in previous years, we focus on key themes in the fields of eco- nomics, environment, people and governance. We define specific goals for each of these fields to ensure our progress is both transparent and verifiable.
All credit is due to our employees when it comes to our potential to change things for the better. We'd like to take this opportunity to say a big thank you to all of them for their dedication and willingness to embrace and implement change! We'd also like to say thank you to the external stakeholders who accompany us on our journey. We appreciate all feedback, and we look forward to remaining in dialogue with you this year.
And now... enjoy the read!
Dr Christoph Husmann, | Mario Schirru, |
Speaker of the Board | CIO/COO Encavis AG |
and CFO Encavis AG |
Dr Christoph Husmann
and Mario Schirru
ENCAVIS Sustainability Report 2023 | 03 |
E n c a v i s | F o u n d a t i o n | Economics | Environment | People | Governance |
ABOUT THIS REPORT
GRI 2-1,2-2,2-3
This sustainability report, approved by the Board of Encavis AG, relates to the Encavis Group. The reporting period of this report is 1 January 2023 to 31 December 2023. This corresponds to the reporting period of the annual financial statements of Encavis AG, which were published on 26 March 2024. The editorial deadline for this report was 26 March 2024.
To ensure transparency and completeness of our reporting, we adhere to the following frameworks and guidelines:
GLOBAL REPORTING INITIATIVE (GRI)
We use the GRI Standard as the basis for our ESG dataset.
Sustainability Report 2023
In this report, we focus on our sustainability strategy based on the material topics we have identified.
This report uses gender-neutral language wherever possi- ble. All texts are inclusive of all gender identities.
The sustainability report is available in German and Eng- lish. In the event of discrepancies, the German version shall prevail.
GREENHOUSE GAS PROTOCOL (GHG)
We are fully compliant with the GHG Protocol Corporate Accounting and Reporting Standard for Scopes 1, 2 and 3.
SUSTAINABLE DEVELOPMENT GOALS (SDGS)
Our sustainability approach is guided by the 17 Sustainable Development Goals (SDGs) of the United Nations.
ESG Report 2023
This report contains our ESG metrics.
Annual Report 2023
Our annual report provides a transparent picture of the strategic, operational and financial position, structure and development of Encavis.
Annual Report 2023
ENCAVIS Sustainability Report 2023 | 04 |
E n c a v i s | F o u n d a t i o n | Economics | Environment |
ORGANISATIONAL STRUCTURE
GRI 2-1
People | Governance |
Group
PV Parks
Based in Hamburg, Encavis is one of the largest independent electricity producers in the renewable energies sector in Europe and a service provider for green electricity. With a team of almost 400 employees, Encavis manages its business activities via five segments.
The PV Parks segment includes all of our own solar parks in Germany, Italy, France, the UK, the Netherlands, Spain, Denmark and Sweden, as well as any holding companies.
The Service segment consists of Encavis Technical Services GmbH and the Italian Stern Energy S.p.A., which has been fully consolidated since the 2022 financial year, in addition to their national subsidiaries for services in Germany, the UK, France and the Netherlands. This segment also includes other service companies and battery storage solutions as well as the Encavis AG business transactions allocated to this segment.
The Wind Farms segment comprises all of the company's proprietary wind farms in Germany, Italy, France, Denmark, Finland and Lithuania, as well as the associated holding companies.
The Asset Management segment includes the business activities of Encavis Asset Management AG and those activities of Encavis GmbH that relate to the Asset Management business area, as well as other companies assigned to this business area.
The Administration segment consists of the administration -related business transactions of the Group's parent company, Encavis AG, and the business transactions of Encavis GmbH assigned to this segment. This segment also includes Encavis Finance B.V. and other companies assigned to administration.
Service
Wind Farms
Asset Management
Administration
ENCAVIS Sustainability Report 2023 | 05 |
E n c a v i s | F o u n d a t i o n | Economics | Environment | People | Governance |
BUSINESS MODEL
GRI 2-1,2-6
Encavis drives the energy transition by creating tailored solutions for challenges in the energy sector. We work with partner companies to cover each and every link in the supply chain. Having gained many years of experience in the field, our primary focus is on onshore wind farms and solar parks.
We exploit the multi-faceted potential of generating electricity from renewable sources. As an independent company, we operate environmentally friendly, emission-free power plants and have been steadily expanding our portfolio here since 2009. Our core focus is on acquiring and operating solar parks and onshore wind farms. When we acquire new plants, we focus on keeping a healthy balance between projects that are still in the development phase, projects that are just starting up and projects that are already up and running reliably with guaranteed feed-in tariffs or long- term PPAs. Our development projects or finished plants are located in various European countries that are characterised by a stable economic and political environment and reliable investment and framework conditions.
Business is currently booming in the field of O&M (opera- tion and maintenance) for solar plants. This work is handled by our 80%-owned subsidiary Stern Energy S.p.A., which is based in Parma, Italy. In order to further reinforce the Group's O&M services and become market leader for third- party customers in Europe in this field, Stern Energy S.p.A has now opened branches in Germany, the Netherlands, the UK and France, and plans to expand next in Denmark and Spain.
Further, our subsidiary Encavis Asset Management AG offers institutional investors attractive opportunities for investing in renewable energy parks. This line of business allows Encavis to grow its power production portfolio more quickly and create synergies with investment partners. The Asset Management segment includes all services inherent to this area of business - from initiating funds and structuring investments for professionals who wish to invest in renewable energy to acquiring and operating the power plants in which the investors own a share.
Our portfolio currently comprises around 230 solar parks and 90 wind farms in Germany, Italy, France, the UK, Austria, Finland, Sweden, Denmark, the Netherlands, Spain, Ireland and Lithuania. In total, these generate some 3.6 GW of elec- tricity. Our Asset Management segment operates around 40 of these solar parks and nearly 50 of the wind farms on behalf of third parties.
ENCAVIS Sustainability Report 2023 | 06 |
E n c a v i s | F o u n d a t i o n | Economics | Environment | People | Governance |
VALUE CREATION STRUCTURE
GRI 2-6
Encavis business activities
Project planning | Mining & Processing | Construction | & | Financial | Purchase |
structuring | |||||
Operation
Portfolio energy
management
Sale / renaturation or repowering/ revamping
Sites are evaluated, feasibility
studies are conducted and regulatory approvals are obtained.
Scheduling and project
planning
Raw materials for the various components of the plants are mined and processed.
Raw material procurement
Refinement
Wind and solar parks
are built.
Construction of wind and solar
power plants
We negotiate PPAs (power purchase agreements), loans and viable power plant solutions.
Financial structuring
We acquire the plants
for our portfolio (Encavis AG) and for professional investors (Encavis Asset Management).
Acquisition of the wind and
solar power plants
We manage, maintain and
optimise the plants.
Operation and main-
tenance
We market the sustainably
produced electricity.
Management of the facilities
and energy business
The plants are sold. When
their lifecycles end, the plants are renaturated, revamped or repowered.
Sale / demolition and renatur-
ation / repowering
Building material
Module and system
production
Renaturation,
e.g. Afforestation
ENCAVIS Sustainability Report 2023 | 07 |
E n c a v i s | F o u n d a t i o n | Economics | Environment | People | Governance |
OUR SHARED VALUES
We are a successful growing company with a corporate culture that is actively shaped by the employees. Together we have developed the following values, which we live by every day.
SHARING | SEIZING | VALUING | STICKING | SHAPING | ASSUMING | FOCUSING ON OUR |
ENTHUSIASM | OPPORTUNITIES | TRUST | TOGETHER | THE FUTURE | RESPONSIBILITY | CUSTOMERS |
'We enjoy | 'We actively seize | 'We trust each | 'We stick together, | 'We actively shape | 'We take respon- | 'We value our | |
working towards | opportunities and | other and can | support one another | the future and act | sibility for our | customers and | |
mutual success.' | are committed | rely on one | and look out for each | responsibly.' | own actions.' | focus on them | |
Our passion for renew- | to achieving our | another.' | other.' | In everything we do, we | Dealing responsibly | through and | |
goals.' | though.' | ||||||
able energies and for | consider the future con- | with our environment | |||||
our work drives our daily | Trust connects us with | We are convinced that top | sequences of our actions. | is our main goal. We | |||
actions and forms the | We don't wait for oppor- | our colleagues and | performances are only possible | We act with foresight, | take responsibility for | We know our markets | |
basis for developing our | tunities to come to us, we | our business partners. | in a working environment that | approach issues with deter- | our own actions and | and value our cus- | |
company and achieving | take the initiative ourselves. | We consider reliability | encourages team spirit. Feeling | mination and confidently | always lead by example. | tomers. We deliver | |
our goals together. | We review opportunities | and transparency | great and sharing joyful expe- | apply our strength and | We approach others | quality and stand for | |
that arise for their long- | the basis for trust- | riences creates the space to | knowledge. Our actions | proactively and don't | competence. We ask | ||
term feasibility and imple- | based collaboration | achieve great things. We respect | are always reliable and | look the other way. | the right questions | ||
ment them professionally, | and good business | each other and consider our | sustainable - to benefit us, | and respond to our | |||
together. We also always | relationships. | diverse workforce an enrichment. | our partners, our society | customers' needs. | |||
look for opportunities to | We respect and support one | and our environment. | |||||
improve what we already | another and treat ourselves and | ||||||
have in place. | our business partnerships fairly. | ||||||
ENCAVIS Sustainability Report 2023 | 08 |
E n c a v i s | F o u n d a t i o n | Economics | Environment | People | Governance |
Foundation
A strong anchor
Our sustainability work builds on a strong foundation. We focus hereby on embedding it meaningfully in our organisational struc- tures. We also focus on our most important stakeholder groups and on our ten strategic priorities - and how we approach them.
E n c a v i s | F o u n d a t i o n | Economics | Environment | People | Governance |
A SUPERB SUSTAINABILITY STRATEGY | corporate goals and monitors progress. The committee met |
further development of the company, defines non-financial | |
GRI 2-9,2-12,2-13,2-14 | virtually several times in 2023. |
Sustainable action is integrated into the operational and strategic company processes at Encavis.
a | SUSTAINABILITY & COMMUNICATIONS | |||||
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THE SUPERVISORY BOARD'S ESG COMMITTEE
In 2023, the Supervisory Board of Encavis AG added
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The Sustainability & Communications department, which falls under the remit of the Board Spokesman, is responsible for Group-wide sustainability management. This department coordinates individual measures and defines corresponding key performance indicators. What's more, the employees in this department are responsi-
an ESG committee to the audit committee to reflect the growing importance of sustainability. During the reporting year, both the ESG committee and the audit committee took a closer look at the current status of internal audits as well as the 2023 Governance Report. The ESG committee and the audit committee convened twice during the reporting year.
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ble for preparing the sustainability reporting as well as organising and monitoring the communication with key stakeholders. In addition, this department oversees compliance with many ESG policies and commit- ments. Sustainability-related topics are operationally implemented decentrally in the various departments.
SUSTAINABILITY COUNCIL
The Sustainability Council, which was founded in April 2021, consisted of five members in the reporting year: two Management Board members of Encavis AG, two Management Board members of Encavis Asset Management AG, and the head of the Sustainability & Communications depart- ment. Based on the preparatory work of the Sustainability
- Communications department, the Sustainability Coun- cil makes central strategic decisions for the sustainable
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SUSTAINABILITY TASK FORCE
Since the beginning of 2020, an in-house Sustainability Task Force has been driving the implementation of internal sustainability measures. The task force is made up of representatives from several business areas of the Encavis Group. It meets regularly and shares information about progress made that has a lasting impact within the Group. In the reporting year, this team organised and conducted various activities, such as the Charity Runs in Hamburg and Munich, Giving Back Week and a Christmas gift campaign for children in need.
ENCAVIS Sustainability Report 2023 | 10 |
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Encavis AG published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 12:00:07 UTC.