Encavis : ESG Report 2023

ESG+ PERFORMANCE REPORT

ESG Report 2023

Introductory notes

Purpose

Environment

Social responsibility

Governance

Addendum

Contents	INTRODUCTORY NOTES	03
PURPOSE	05
	Foreword	03
	About this report	04
	Nominal power by segment	06
	Nominal power by region	07
	Power generation by segment	10
	Power generation by region	11
	ENVIRONMENT	14
	An overview of our corporate carbon footprint	15
	Carbon emissions along the Encavis value chain	15
	Scope 1 and Scope 2 emissions	16
	Scope 3 emissions	17
	Emissions intensity	18
	Carbon emission savings and no. of households supplied by segment	19
	Energy consumption	20
	SF6 Gas, water consumption and waste	21

SOCIAL RESPONSIBILITY	22
Employees and parental leave	23
Employee turnover	24
Diversity	25
Equal opportunities	26
Training courses	27
Occupational health and safety	28

GOVERNANCE	29
The Supervisory Board and the Management Board	30
Good corporate management	31
ADDENDUM	33
Memberships and sustainability ratings	34
GRI Index	35
Company details	41
ENCAVIS  ESG Report 2023	02

Introductory notes

Purpose

Environment

Social responsibility

Governance

Addendum

FOREWORD

GRI 2-22

DEAR FRIENDS OF ENCAVIS,

As in the first ESG report we published last year, this ESG report once again provides in-depth insights into our eco- nomic, social, environmental and governance performance. Designed to complement our sustainability report, which details the progress of our sustainability strategy and work, the focus of this ESG report is on the hard facts and figures behind Encavis' sustainability KPIs.

We describe our progress in four key areas:

• Purpose: Our core business lies in acquiring and oper- ating wind farms and solar parks to generate green electricity - this being one of the most effective means to combat the climate crisis. During the reporting year, we were able to increase our installed capacity to 3.5 GW (+3%) and increase the overall production of Encavis AG's wind farm and solar park segments by 7%.

• Environment: Ultimately, our underlying aim is to have a positive impact on the environment. Our port- folio of wind farms and solar parks prevent more than
  1.2 million­ tonnes of carbon emissions per annum and produce green electricity for the equivalent of 2 million households, thus actively supporting the energy tran- sition. Our goal of achieving carbon neutrality by 2040 underscores not only our level of commitment but also the driving force behind Encavis.
• Social responsibility: We have just under 400 employ- ees, all of whom lay the foundation for our success. We're committed to diversity and safety, and to helping our employees develop professionally and personally. To this end, we invest heavily in apprenticeships, upskill- ing and occupational health and safety programmes. Our aim is to create a work environment that is marked by appreciation and respect. Although our employee fluctuation rate rose slightly during the reporting year, it is still under 7%.
• Governance: As a German company that is listed on the stock exchange, we have a clear governance struc- ture which ensures a strict division between company management (the Management Board) and oversight (the Supervisory Board). We require our employees and members of our boards to regularly complete compli- ance and anti-corruption training programmes.

We're proud of all that we've achieved to date and are determined to continue pursuing our ambitious goals. We warmly invite you to accompany us on our journey. Please contact us if you have any questions, ideas or suggestions for improvements!

Yours sincerely,

Dr Christoph Husmann,	Mario Schirru,
Speaker of the Board	CIO/COO Encavis AG
and CFO Encavis AG

Dr Christoph Husmann and Mario Schirru

ENCAVIS  ESG Report 2023

03

Introductory notes

Purpose

Environment

Social responsibility

ABOUT THIS REPORT

GRI 2-1,2-2,2-3

Governance

Addendum

This 2023 ESG 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 also 26 March 2024.

This report contains an overview of our KPIs for economic, ecological, social and corporate governance. For further (financial) data and more detailed information, or for a description of our sustainability journey, please see:

• Encavis AG Annual Report 2023
• Encavis AG Sustainability Report 2023

We aim to develop our ESG database on an ongoing basis and publish reports regularly. By "develop", we mean improving our ESG database in terms of both quality and quantity. In order to complete this presentation of the reporting year, we sometimes resorted to professional estimations and projections. Actual values may deviate from these estima- tions; in such cases, we will adjust the figures accordingly in next year's report.

Our choice of ESG indicators was based on our materiality analysis, investor questions, ESG ratings and accepted standards for sustainability reporting. These are:

GLOBAL REPORTING INITIATIVE (GRI)

We use the GRI Standard as the basis for our ESG dataset.

GREENHOUSE GAS PROTOCOL (GHG)

We are fully compliant with the Greenhouse Gas (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.

Annual Report 2023

Sustainability Report 2023

In this report, we focus on our sustainability strategy based on the material topics we have identified.

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.

ENCAVIS  ESG Report 2023

04

Introductory notes

Purpose

Environment

Social responsibility

Governance

Addendum

Purpose

• Nominal power by segment
• Nominal power by region
• Power generation by segment
• Power generation by region

Introductory notes

Purpose

Environment

Social responsibility

Governance

Addendum

NOMINAL POWER BY SEGMENT

In MW		Operational status
PV Parks		Total
		In operation
		Under construction
		Ready-to-build
	Mid/late-stage development
Wind Farms	Total
		In operation
		Under construction
		Ready-to-build
Service		Total
		Management services within the
		Group
		Management services for
		external clients
Asset Management		Total
		In operation
		Under construction
		Ready-to-build
		Mid/late-stage development

2021

1,565

1,456

109

-

-

412

412

-

-

-

-

-

1,316

1,200

116

-

-

2022

3,236

1,589

31

315

1,300

494

494

-

-

-

-

-

1,715

1,356

85

4

270

2023

3,852

1,629

274

549

1,400

582

543

39

-

1,831

873

958

1,643

1,375

11

-

257

DEVELOPMENT OF NOMINAL POWER IN THE SEGMENTS

The PV Parks segment includes all solar parks that are owned by

Encavis AG or its holding companies.

Lemsterhoek solar park began operating during the course of the reporting year (31 MW). In addition, just under 10 MW were added through repowering. Further, construction work began on two more solar parks, and we more than doubled our capacities from plants with ready-to-build status. Working together with strategic partners, we were able to expand our nominal power by securing projects in the early stages of development.

The Wind Farms segment includes all wind farms that are owned by

Encavis AG or its holding companies.

In this segment, we sold two wind farms at the end of 2023 and acquired four additional wind farms. We also acquired four wind farms which are currently under construction.

The Service segment comprises the nominal power of Stern Energy S.p.A. and its ­subsidiaries as well as that of Encavis Technical Services GmbH.

The Asset Management segment comprises all the wind farms and solar parks that are operated by Encavis Asset Management AG, plus all companies that are allocated to this business division.

During the reporting year, this segment was able to achieve an outflow of more than 70 MW by means of optimising its portfolio. Virtually all the assets that were under construction or had ready-to-build status in 2022 were completed and began operating during the course of 2023. The nominal power of the Bartow solar park, which is currently in the project planning phase, was recently adjusted.

ENCAVIS  ESG Report 2023

06

Introductory notes

Purpose

Environment

Social responsibility

Governance

Addendum

NOMINAL POWER BY REGION (1/3)

In MW		Segment		2021		2022		2023
Germany		Total		1,080		1,107		1,269
		PV Parks		287		287		407
		Wind Farms		229		229		288
		Asset Management		563		591		575
France		Total		628		639		592
		PV Parks		194		194		197
		Wind Farms		36		36		36
		Asset Management		398		409		360
Spain		Total		556		611		778
		PV Parks		500		555		722
		Wind Farms		-		-		-
		Asset Management		56		56		56
Netherlands		Total		377		463		494
		PV Parks		180		228		229
		Wind Farms		-		-		-
		Asset Management		197		235		266

Nominal power from all wind farms and solar parks that are in operation, under construction or in the ready-to-build stage (excluding mid/late-stage development).

DEVELOPMENT OF NOMINAL POWER BY COUNTRY

Germany

In the PV Parks segment, construction work began on the Borrentin solar park.

We sold two wind farms at the end of the year (28 MW) and acquired seven wind farms.

In the Asset Management segment, we sold seven wind farms generating a total of 78 MW. In addition, we acquired two wind farms.

France

In the PV Parks segment, we were able to increase our nominal power by nearly 3 MW by means of revamping.

Five wind farms and one solar park were sold by the Asset Management segment during the reporting year.

Spain

We acquired three solar parks in our PV Parks segment and thus increased our nominal power by well over 165 MW.

Netherlands

In the PV Parks segment, our nominal power was adjusted during the reporting year. Our Asset Management segment acquired an additional agrivoltaic park.

ENCAVIS  ESG Report 2023

07

Introductory notes

Purpose

Environment

Social responsibility

Governance

Addendum

NOMINAL POWER BY REGION (2/3)

In MW		Segment		2021		2022		2023
Denmark		Total		238		390		522
		PV Parks		118		258		390
		Wind Farms		120		132		132
		Asset Management		-		-		-
Italy		Total		166		254		341
		PV Parks		154		241		334
		Wind Farms		6		6		6
		Asset Management		7		7		2
UK		Total		145		171		163
		PV Parks		127		153		155
		Wind Farms		-		-		-
		Asset Management		18		18		8
Finland		Total		71		71		101
		PV Parks		-		-		-
		Wind Farms		22		22		52
	Asset Management	49	49	49

Nominal power from all wind farms and solar parks that are in operation, under construction or in the ready-to-build stage (excluding mid/late-stage development).

DEVELOPMENT OF NOMINAL POWER BY COUNTRY

Denmark

In the PV Parks segment we acquired one park during the reporting year.

This is currently under construction.

Italy

During the reporting year, we acquired two new solar parks in our PV Parks segment, with a total nominal output of around 93 MW.

One solar park was sold by our Asset Management segment during the reporting year.

UK

In the PV Parks segment, technical adjustments led to an 2 MW increase in nominal power.

In the Asset Management segment, we sold one wind farm with nominal power totalling 10 MW.

Finland

In the Wind Farm segment, we acquired one wind farm in the reporting year with a nominal output of 30 MW.

ENCAVIS  ESG Report 2023

08

Introductory notes

Purpose

Environment

Social responsibility

Governance

Addendum

NOMINAL POWER BY REGION (3/3)

In MW		Segment		2021		2022		2023
Lithuania		Total		-		69		69
		PV Parks		-		-		-
		Wind Farms		-		69		69
		Asset Management		-		-		-
Ireland		Total		-		53		53
		PV Parks		-		-		-
		Wind Farms		-		-		-
		Asset Management		-		53		53
Sweden		Total		15		29		19
		PV Parks		5		19		19
		Wind Farms		-		-		-
		Asset Management		10		10		-
Austria		Total		17		17		17
		PV Parks		-		-		-
		Wind Farms		-		-		-
		Asset Management		17		17		17

Nominal power from all wind farms and solar parks that are in operation, under construction or in the ready-to-build stage (excluding mid/late-stage development).

DEVELOPMENT OF NOMINAL POWER BY COUNTRY

Lithuania

There were no changes here during the reporting year.

Ireland

There were no changes here during the reporting year.

Sweden

One wind farm with a nominal output of 10 MW was sold by the Asset Management segment during the reporting year.

Austria

There were no changes here during the reporting year.

ENCAVIS  ESG Report 2023

09

Introductory notes

Purpose

Environment

Social responsibility

Governance

Addendum

POWER GENERATION BY SEGMENT

In GWh

Total

PV Parks

Wind Farms

Asset Management

2021

4,497

1,815

940

1,742

2022

5,188

2,137

997

2,055

2023

5,568

2,106

1,248

2,214

Overall, Encavis AG increased its power production (in the PV Parks and Wind Farm segments) during the 2023 fiscal year by 7% to around 3,354 gigawatt hours (GWh).

In the PV Parks segment, which includes all the solar parks in our own inventory, more power is generated from April to September than in autumn and winter. The amount of electricity actually fed into the grid by this solar park decreased by 1.4% compared to the previous year.

Due to meteorological conditions, wind farms generate more power during the autumn and winter months than in summer. The actual amount of electricity that was fed into the grid in the wind segment was 25.2% higher than the previous year. This increase is largely due to the acquisition of two parks in Germany and one wind farm in Finland.

The Asset Management segment (which manages power production on behalf of institutional fund clients) increased its power production in the reporting year by 7%.

ENCAVIS  ESG Report 2023

10