Sonnedix Power Holdings - Sustainability Report 2021

Building a Bright Future

Sonnedix Power Holdings Limited

Sustainability Report 2021

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LETTER FROM THE CEO

2020 emphasised the importance of ESG in building resilient businesses, something we’ve carefully looked at throughout 2021, as we restructured our organisation and revisited our strategy in order to create a more agile and robust company, while becoming ready to continue pushing the energy transition forward and creating long-term value for all our stakeholders.

We focused on refreshing our strategy to incorporate our ambition and vision of becoming a customer-focused and risk-balanced renewable energy solutions provider. This is the strategy leading Sonnedix to the future era, focusing on the customer and looking at scale, innovation, and hybridisation.

During 2021, we experienced an acceleration of growth, with a 25% increase in our operating capacity worldwide and a development pipeline of over 3GW. We expanded our presence in Europe, entering the German market – with further plans to expand to Poland in 2022 – and reinforced our position as leading solar IPP in Spain, reaching almost 1GW of total capacity. We continued strengthening our presence in Chile, where we were awarded 903GWh/year at the public tender, which will allow us to build over 400MW in solar PV projects with an approximate investment of $300 million.

All these milestones are proof of our strong commitment to expand the use of solar – and promote renewable energy as a whole – in order to accelerate the energy transition and fight climate change. This purpose drives our business: to harness the power of the sun to build a bright future.

Our continuous efforts in adhering to our Sustainability Strategy and ESG Policies and Standards led us to become, for the fourth consecutive year, GRESB Global Solar Power Generation Leader. This external recognition is testament to our strong commitment to maintaining the highest ESG standards in our operations.

Tackling climate change is one of the key ESG priorities for us. As such, in April, we became one of the first 100 signatories of The Climate Pledge, an initiative co-founded by Amazon and Global Optimism. Through this alliance, we committed to achieve net-zero by 2040, a decade ahead of the Paris Agreement’s goal. During the last quarter of the year, we participated in the COP26 summit in Glasgow, UK. This was an opportunity for us to be part of the conversation around ESG and the climate emergency and to reinforce our position as a leader in ESG.

Axel Thiemann – Chief Executive Officer

LETTER FROM THE CEO CONTINUED

2021 further saw Sonnedix receive the Solar Gender Champion award during the Solar Power Summit 2021: “Driving Sustainable Change”, organised by SolarPower Europe. We are proud that our One Team is constantly supporting all our equity, diversity and inclusion activities and having received such important recognition from SolarPower Europe is testament to the strength of our EDI strategy, and our commitment to making gender diversity and equity “business as usual”.

In 2021, we continued to develop and expand our Sonnedix Sustainability Academy, launched in 2020, through which we delivered our first-ever virtual reality (VR) project: SolQuest. This VR initiative allows learners across the world to understand how a solar PV plant works by doing a virtual quest around our 170MW Sonnedix Atacama Solar plant. This successful initiative took us much closer to reach our target of impacting 100,000 learners by 2023, thanks to partnerships established with museums and other educational institutions. In addition, we continued to expand our scholarship programme launching the initiative in Spain for the first time.

We continue challenging our way of measuring our impact and opportunities for us to do more, and to do better, with respect to sustainability. The global environment is characterised by continued disruption – adding the geopolitical instability caused by Russia’s invasion of Ukraine to the Pandemic and the resulting human toll and economic impacts and supply chain shortages. This, however, is not changing our conviction that climate change is one of the defining threats to the world that we are working to combat. Our geographically diversified set up with strong backing from our shareholders and the most talented team in the industry ensures that we are able to capture the opportunity ahead while weathering the short-term volatility.

In this report, we outline the progress that we have made in 2021 on our journey to realise our numerous, ambitious targets laid out in our sustainability strategy, our North Star in delivering our strategic purpose.

AXEL THIEMANN CHIEF EXECUTIVE OFFICER

One Team at the Sonnedix Atacama Solar Groundbreaking – Chile

About Sonnedix

ABOUT SONNEDIX

We are a global solar Independent Power Producer (“IPP”) with a proven track record of successfully designing, financing, building and monitoring high-performance, cost-competitive solar plants for the long term around the world.

Our track record and financial strength enable us to build trusted relationships with customers and partners, to smartly expand the adoption and impact of solar to create a sustainable and climate-safe future for all.

We are proud that the clean energy we generate helps us to power households and businesses around the world, to make a positive difference for the communities we partner with and, ultimately, to play a vital role in the energy revolution.

We constantly evaluate multiple regulatory regimes at different phases of integration in the rapidly expanding global solar market to uncover new opportunities to revolutionise the energy industry. By applying our global diversification approach to spread our portfolio’s risk across projects, countries and currencies, we are ensuring that we can continue to do so into the future.

The Group is majority owned by institutional investors advised by J.P. Morgan Investment Management Inc.

€5bn+ INVESTED GLOBALLY IN SOLAR PV ASSETS

€555m REVENUE

SONNEDIX IN NUMBERS

We have over 400 solar power projects in operation, under construction or in development in nine countries: Chile, France, Italy, Japan, South Africa, Spain, the UK, Germany and the USA.

At the end of 2021, our team consisted of 404 (2020: 332) people, including executive directors, employees, contractors and employees of our trusted Japanese development partner, Sonnedix Japan K.K.

405

SOLAR POWER PROJECTS

5,209MW TOTAL CAPACITY INCLUDING PIPELINE

1,696MW OF OPERATING CAPACITY

444MW OF CONSTRUCTION CAPACITY

3,069MW OF DEVELOPMENT CAPACITY

MapWHERE WE OPERATE

* Excludes 74MW in Puerto Rico – platform sold on 16 December 2021.

** Excludes 12 employees in Puerto Rico – platform sold on 16 December 2021.

*** In-country personnel in other jurisdictions.

OUR PURPOSE, VALUES AND STRATEGIC INITIATIVES

OUR PURPOSE AND VALUES

POSITIVE ENERGY

Proactively driving forward in a constructive and productive way.

THE UNIFIED FRAMEWORK MODEL

INVESTOR OUTCOMES

SUSTAINABLE GROWTH

Promoting an environment that enables us to scale and evolve in a healthy way.

DO THE RIGHT THING

Act ethically, transparently and honestly to have a positive impact on everything.

COMMUNITY AND STAKEHOLDER ENGAGEMENT

FINANCIAL ENGINEERING AND ASSET STRUCTURING

At Sonnedix, we harness the power of the sun to build a bright future –a cleaner, healthier future for people and our planet. Underpinning our purpose are the Sonnedix values which, together with our behaviours, promote an environment that enables Sonnedix to continue to grow and scale in a sustainable way.

OWNERS MENTALITY

Empowering people to think and work in the best interest of the whole organisation.

ONE TEAM

Working together as a diverse organisation across the world to achieve our purpose.

DE-RISK

Efficient and safe delivery of projects, risk management and mitigation. ORGANIC

Organic growth and operational excellence. Driving operational excellence and growth through development.

INORGANIC

Inorganic growth through acquisitions and market structure.

Growth through acquisition, new technologies and innovation.

COMMUNITY AND STAKEHOLDER ENGAGEMENT

Transparent, accountable and positive engagement with local communities.

FINANCIAL ENGINEERING AND ASSET STRUCTURING

Optimised financial structures and arrangements.

DE-RISK ORGANIC INORGANIC

INTRODUCTION TO SUSTAINABILITY AT SONNEDIX

Our Environmental, Social and Governance programme is fundamental to how we work, whether we are striving to protect the environment, empower tomorrow’s problemsolvers, support local communities or adhere to the highest standards of accountability, transparency and diversity.

Two of our company values – ‘Do the Right Thing’ and ‘Sustainable Growth’ – act as our compass as to how we operate and are at the heart of our business. We are proud that our sustainability efforts have been recognised externally by GRESB, a global sustainability benchmark that assesses and recognises companies, funds and assets that have demonstrated outstanding leadership in sustainability.

A fourth consecutive year as the GRESB ‘Global Solar Power Generation Sector Leader’ with the maximum 5* rating is a testament to our ESG effort and helps us build on our reputation as a strong business and a trusted partner. In the 2021 results, announced in November, we achieved an overall score of 95 out of 100, against a peer average score of 71.

This is a very important milestone for us as it reflects our strong commitment towards sustainable growth and is a great example of putting our One Team value into practice, which is essential to the preservation of our culture and the foundation of how and why we do business the way we do.

In 2021, Sonnedix was amongst the first 100 participants to sign up to The Climate Pledge, committing to achieve net-zero carbon by 2040, a decade ahead of the Paris Agreement’s goal of 2050. More information can be found on page 18 of this report.

Sonnedix at the ClimateForce Arctic Expedition

SONNEDIX SUSTAINABILITY STRATEGY

The Sustainability Strategy governs our approach to sustainability and outlines our contribution to the United Nations Sustainable Development Goals (UN SDGs).

The aspirational initiatives, goals and targets set out in our strategy are designed to help us aim high, hold ourselves accountable and be transparent in everything we do. These initiatives and targets are established for each element of Environment, Social, Governance, with underlying sub-targets and action plans, committing Sonnedix to achieving carbon neutrality, gender balance, reaching 100,000 learners through education around solar energy and climate change, to name a few.

Our numerous sustainability commitments and targets stemming from these three strategic lines are further discussed in the subsequent sections of this report, along with our progress in achieving them.

Feeding into the Sustainability Strategy are our ESG Policies and Standards which represent our compliance framework and set out the rules and guiding principles for our day-to-day operation.

The principles contained in our policies and standards allow us to behave sustainably, ethically and accountably as we develop, finance, build and operate solar plants around the world. We also ensure that we have a positive impact on our people and the environments and communities where we work.

SOCIAL

Increase educational initiatives related to solar/ renewable energy and climate change and improve social and economic development in the communities in which we operate.

ENVIRONMENT

Become carbon neutral and maximise efficient, sustainable resource use.

Sonnedix has developed a set of ESG Policies and Standards, which can be found on our website: https://www.sonnedix.com/about/esg

ENVIRONMENTAL POLICY AND STANDARDS

Click here to download SOCIAL POLICY AND STANDARDS

GOVERNANCE POLICY AND STANDARDS

Click here to download

CORE ELEMENTS OF THE SONNEDIX SUSTAINABILITY STRATEGY

GOVERNANCE

100% transparency, accountability, diversity and safety.

SONNEDIX AND UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (SDGS)

Both the Sustainability Strategy and our ESG Policies and Standards have allowed Sonnedix to contribute to many of the UN SDGs with the following goals being most notable:

Promoting health and safety of our employees and Global Partners through our Social Policy and Standards; Implementing wellbeing initiatives for our employees; Social Chapter

Education is a core focus of our Sustainability Strategy, with the aim of reaching 100,000 learners by 2023 through establishing Sonnedix Sustainability Academy, our online resource bank on climate change and renewable energy.

Setting out gender-related targets and initiatives (minimum 40% new joiner women hires); Assigning women’s champions on our construction projects; Establishing Sonnedix Women’s Alliance as part of our employee resource group coalition, the One Team Network.

In line with Sonnedix’s purpose as a responsible renewable energy producer; Displacing GHG emissions in line with Sonnedix’s business model as a responsible renewable energy producer.

Implementing our comprehensive Legal and Compliance programme including Human and Labour Rights Policies; Fostering job creation and local skill development in local communities.

Through our programme of social and economic development activities in the local communities and around our offices; Implementing volunteering activities by our offices.

Through our sustainable supply chain management and procurement practices; Implementing our supply chain audit programme.

Social Chapter

Governance Chapter

Environmental Chapter

Social Chapter

Social Chapter

Governance Chapter

Through the production of renewable energy and our goal of becoming carbon neutral.

Through our initiatives and targets for biodiversity; By partnering with tree planting organisations.

Environmental Chapter

Chapter

at a glance

2021 AT A GLANCE

JANUARY

Completion of the materiality assessment refresher, which involved participation of internal and external stakeholders and informed the content of our first Sustainability Report published later in the year.

FEBRUARY

Launch of Sonnedix internship programme, designed to support our EDI strategy, which saw 14 young career starters from under-represented groups joining Sonnedix from across the globe.

MARCH

Funds donated to plant 5,000 trees in the Amazon Rainforest in aid of International Day of the Forests.

2021 edition of the bursary programme launched in South Africa to facilitate access to universities for learners in the proximity of our plant.

APRIL

First Sustainability Report published in accordance with GRI standards, ‘Core option’.

This report marked a new milestone towards our goal of 100% transparency by publicly disclosing our sustainability commitments and reporting on the progress made so far.

We became one the first 100 signatories of The Climate Pledge committing to net-zero carbon emissions by 2040.

MAY

during the 2021 Solar Power Summit, organised by SolarPower Europe.

JUNE

Our Scholar programme expanded to Spain and saw the first participant begin their eight-week summer internship.

6,000 trees were planted in multiple locations in aid of Sonnedix’s walking month and International Rainforest Day.

JULY

Teacher focus groups were conducted to steer the creation of new resources and learning solutions for the Sonnedix Sustainability Academy.

AUGUST

Partnership with Foundation Menudos

Corazones, a Spanish children’s charity that helps families living with congenital heart disease, to provide solar power to their family residence thus reducing their annual energy costs.

SEPTEMBER

Our offices began to move to the so-called ‘Evolve Phase’, shifting away from working around COVID-19 to working with it through a new global flexible working policy.

Participation of our team members in France in the Renewable Energy World Race, a cycling championship open to all companies working in the renewable sector.

OCTOBER

STEM learning materials donated to various classrooms across the US, impacting over 4,000 learners.

IOSH-certified Managing Safely Training course, ‘Construction and Operations Safety Management at Sonnedix’ delivered to key project personnel.

NOVEMBER

For the fourth consecutive year, Sonnedix was named ‘Global Solar Power Generation Sector Leader’ and awarded the maximum 5* by GRESB.

At COP26 in Glasgow, we launched SolQuest; an immersive and interactive learning tool that virtually takes children and adults to our biggest solar plant to date.

DECEMBER

The pilot for the Reverse Mentoring programme was launched.

Implementation of the first edition of the Sonnedix Atacama Solar Community Investment Framework started.

Team members in Spain and France attended a firefighting and first aid course to learn about the tools and response in case of emergency.

Sonnedix was named ‘Solar Gender Champion’

2021 SUSTAINABILITY REPORT IN NUMBERS

5* RATING

AWARDED BY GRESB, RANKING 1ST IN THE SOLAR SECTOR FOR OUR SUSTAINABILITY PERFORMANCE FOR THE FOURTH CONSECUTIVE YEAR

35,000+ LEARNERS REACHED THROUGH OUR SOLAR ENERGY AND SUSTAINABILITY EDUCATIONAL PROGRAMME

13,310 TREES

ENVIRONMENT

INTRODUCTION TO ENVIRONMENT

In order to respond to the global threat of climate change, Sonnedix is devoted to supporting the global energy transition through the production of solar energy.

In the development, construction and operation of our solar plants across the world, we demonstrate our continuous commitment to mitigating and avoiding any negative impact on the surrounding environment.

Our Sustainability Strategy sets out our core environmental initiative of becoming carbon neutral and maximising efficient sustainable resource use. This will be achieved through a number of sub-initiatives implemented at the corporate, office and project level and through effective implementation of the Sonnedix Environmental Policy and Standards.

CLIMATE CHANGE

CARBON FOOTPRINT

The sixth Intergovernmental Panel on Climate Change (IPCC) assessment report, released in August 2021, stated that “It is unequivocal that human influence has warmed the atmosphere, ocean and land.” Global warming is happening at an unprecedented rate, and the urgency for action has never been greater.

Businesses, governments, investors and individuals must come together in the mitigation of climate change and the reduction of its impacts for the protection of the planet and to improve the quality of life of future generations.

Sonnedix, by producing clean energy, is already positively contributing to the global energy transition as the world strives to meet the targets of the Paris Agreement. Our projects across the world help in reducing GHG emissions that would have otherwise occurred due to the fossil fuel-based power generation, resulting in significant amounts of CO2 avoided. In 2021, this equalled over 945,000 tonnes of CO2e avoided, based on the production of 2,385GWh.

Sonnedix does not stop here. We go beyond the production of clean energy, striving to become a truly sustainable business.

In 2021, Sonnedix joined ‘The Climate Pledge’ committing to net-zero by 2040; a decade ahead of the Paris Agreement’s goal of 2050. ‘The Climate Pledge’ is a cross-sector community of companies and organisations who are working together to solve the challenge of decarbonising our economy. Sonnedix were one of the first 100 signatories of this commitment, co-founded by Amazon and Global Optimism in September 2019.

Signatories to ‘The Climate Pledge’ agree to measure and report greenhouse gas emissions on a regular basis, implement decarbonisation strategies in line with the Paris Agreement and neutralise any remaining emissions with additional, quantifiable, real, permanent, and socially beneficial offsets to achieve net-zero annual carbon emissions.

Make carbon emissions in our direct sphere of influence (Scope 1 and 2) neutral worldwide and offset all CO2 emissions from company travel and commuting (part of Scope 3) by the end of 2021

Participate in global sustainability initiatives/benchmarks for the private sector to promote best practice

Carbon neutrality* since 2020, by offsetting emissions that cannot be reduced (1,129 tCO2 offset in 2021; 1,513 tCO2 in 2020).

No direct partnerships that promote the use or consumption of fossil fuels

Commitment made to achieve net zero by 2040 by joining the Climate Pledge initiative.

Continued participation in GRESB.

Fossil fuel representation included in relevant transactional agreements and relevant counterparty checks performed.

the plants owned by Sonnedix, regardless of whether they are operated directly by Sonnedix or by a third party.

Our commitment: To become carbon neutral and maximise efficient sustainable resource use.

Sonnedix at the ClimateForce Arctic Expedition

CLIMATE CHANGE CONTINUED

CARBON FOOTPRINT CONTINUED

Measuring and reporting emissions is the key first step on our journey to net zero. Our 2021 GHG emissions are presented on the right. Next steps will include developing a Roadmap to Net Zero by 2040 and setting and defining a science-based interim emission reduction target.

We have taken an operational control approach in establishing our carbon footprint, meaning that we calculate our carbon footprint based on the emissions from the offices and plants that we operate directly. Refer to Annex 2 for more information on the assets and offices included in this approach. For those plants that we do not operate directly, emissions are captured as Sites’ emissions under Scope 3.

The focus of our emission reduction efforts over the past year has been those emissions that we can directly manage, control and reduce through our reduction and offsetting strategies. These include:

• Direct emissions from our projects and offices such as combustion of fossil fuels in vehicles, machinery, heating (Scope 1);

• Indirect emissions derived from electricity consumption (Scope 2);

• Indirect emissions from business travel and employee commute (part of Scope 3).

We are proud that Sonnedix took part in a panel discussion ‘Lighting the Way to Net Zero’ organised by Solar Energy UK in Glasgow during COP26. The event brought together global industry leaders and key stakeholders to discuss the solar industry’s contribution to net zero and the implications around building the skills and supply chains to support this transition.

Our General Counsel took part in this insightful panel with other leading solar developers setting out how we can meet the global industry’s target of 5TW capacity by 2030 and what is next for the solar industry. In addition to taking part in the panel, Sonnedix’s ESG team organised a number of internal and external events ahead of and post COP26, with the aim to raise awareness around the importance of this global climate summit. This included organising a webinar for Sonnedix’s global team and delivering a number of sessions for our partnering schools to bring COP to their classrooms.

189,128

SONNEDIX AT COP26

CLIMATE CHANGE CONTINUED

SUSTAINABLE PARTNERSHIPS AND INITIATIVES

To ensure that our capital is deployed in a sustainable manner and so that we provide our clients with clean, renewable energy at all times, one of the commitments in our Sustainability Strategy is to refrain from direct partnerships that promote the use or consumption of fossil fuels. To achieve this, a specific ESG representation on fossil fuels has been included in applicable transaction agreements that require the relevant contractual counterparts to comply and relevant counterparty checks are performed.

CLIMATE RISK

Whilst we continue to implement reduction strategies to lower business emissions and our impact on climate change, we recognise the continually increasing need to focus on adaptation, while simultaneously preparing for the significant emergent climate-related regulatory and economic changes on the horizon.

As such, climate risk has become an important focus within Sonnedix’s business strategy and is an integral part of our risk management processes. Throughout 2021, we have continued to investigate the impact of climate change on the resilience of our business through our annual corporate risk assessment process.

In addition, a qualitative climate risk assessment was undertaken by the Asset Manager (JP Morgan Asset Management) on behalf of our institutional investors which looked into the investment exposure to transition and physical risks.

Material climate-related risks, if any, are presented to the Audit and Risk Committee, as well as the Board of Directors, on a quarterly basis.

Transition Our business model, based exclusively on green energy, is naturally benefited by the transition to a lower-carbon global economy. In recognising the global focus on net zero, Sonnedix has committed to achieve net zero by 2040, further strengthening our position for the global economic transition. Whilst increasing policies, regulations and reporting requirements are expected, Sonnedix remains to be prepared for the global transition.

As extreme weather events as a direct result of climate change continue to increase in frequency and severity, Sonnedix continues to consider the impacts of changing weather patterns, climate variability and extreme weather events in the designs and technical specification of our projects. Pre-investment, projects are analysed for any potential physical climate risk, with appropriate mitigation suggested prior to development, construction or acquisition. Climate adaptation has also been included as a standalone environmental standard with the requirements applicable to all of Sonnedix’s projects.

An assessment was undertaken at both the Asset Manager and corporate levels. Policy, legal, technology and reputational transition risks are all perceived as opportunities; however market risk is one aspect that requires further monitoring to assess the risks surrounding increasing costs and scarcity of raw materials and supply chain disruptions.

An annual risk assessment was undertaken at the corporate level which covers key acute and chronic climate-related risks.

At the project level, we continued to undertake natural hazard risk assessments in concert with our insurance broker and maintain project risk registers to assess physical risk through physical site evaluation and modelling.

Such assessments have identified three material risk factors: flooding and water level rise, increased natural catastrophe frequency and hurricane risk.

CLIMATE RISK WEBINAR FOR SONNEDIX’S SENIOR LEADERSHIP TEAM

Further to our public commitment to net zero by 2040, the focus in 2021 was to raise awareness around transition and physical climate risk within the organisation and to ensure that Sonnedix's senior leadership team remained diligent around climate risk.

The webinar was delivered by an external speaker from Mike Barry Eco consultancy and was attended by Sonnedix's senior leadership team, General Counsel, ESG team and the Asset Manager ESG representative. The webinar explored the unique risks and opportunities posed by the climate emergency and outlined how Sonnedix can effectively mitigate risk and capture opportunities arising from climate change.

Interviews with different functions such as procurement, operations, project finance and insurance were held prior to the webinar to discuss practical examples and form questions to enable effective discussion, challenge and oversight of transition and physical risk by the senior leadership team.

Physical

RESOURCE EFFICIENCY

The unsustainable and inefficient use of resources by countries, businesses and individuals has resulted in widespread environmental degradation, scarcities, and climate change, negatively impacting the planet and its people.

One of Sonnedix’s environmental core focus areas is to maximise efficient resource use both on our projects and in our offices. The Sonnedix Environmental Policy and Standards document sets out our key commitments to resource efficiency and provides the expectations we have of our employees, contractors and those working on our behalf. Sonnedix and its contractors, on our projects and in our offices, are expected to implement technically and financially feasible measures for improving efficiency in consumption of all resources, including energy, water and waste.

Sonnedix Suwa – Japan

RESOURCE EFFICIENCY CONTINUED

WATER

On solar energy projects, water is identified as an especially high usage resource given that the plants are usually located in dry, high solar radiation areas and have a need for periodical panel cleaning. We strive to reduce our consumption of water on our project sites, and in our offices, and to implement measures to prevent adverse impacts of project-related water use on communities or the environment.

As such, we continue to incorporate specific water reduction requirements and targets in all new EPC and O&M contracts. Particular focus over 2021 has been placed on reduction in water intensity, especially in relation to water used for panel cleaning. To achieve this we focused on utilising soiling and meteorological data to inform when cleaning is necessary and deploying dry cleaning of panels as a priority over wet cleaning. These actions have contributed to a decrease in overall water intensity, however further effort is required to encourage collection, filtering and reuse of water when deploying wet cleaning. Only 4% of our water used for panel cleaning in 2021 came from reused/treated water sources. This is mainly due to the limited number of cleaning companies or water providers in the proximity of our plants that deploy sustainable practices. Because of this, the focus going forward will be on identifying opportunities for directly deploying technologies for water reuse/ treatment on-site and incorporating this into project designs.

Our commitment: Optimised resource use and zero pollution.

30% reduction in overall water consumption intensity by the end of 2022

At least 50% of the water used for PV panel cleaning must be reused/recycled/ treated/rainwater on all plants in operation by the end of 2024 • 7% (reused/ treated water deployed for panel cleaning) • 4% (reused/ treated water deployed for panel cleaning)

13,63812,088 Recycled/reused 1051,287

Other

13,53310,801

Sonnedix Novi Fossati – Italy

RESOURCE EFFICIENCY CONTINUED

Strategy, we set the target of zero panels, inverters or batteries disposed to landfill, and instead diverting this waste through approved recycling schemes, such as PV Cycle in Europe. As a result the implementation of our waste policies, over 90% of waste generated on our construction and operational projects was diverted from landfill in 2021, exceeding our 60% target.

panels, inverters and batteries to landfill

1,0041,183

ESG volunteering day – France

RESOURCE EFFICIENCY CONTINUED

ENERGY

Through our Sustainability Strategy, Sonnedix encourages the implementation of energy reduction measures, where feasible, on our construction and operational projects across the globe. We encourage the installation of energy efficient and motion sensing lighting, energy efficient heating and cooling devices, efficient use of fuel for generators, among other measures. With a primary focus on energy reduction, it is expected that any unavoidable use of energy is offset, as explained below.

Sonnedix Villanueva – Spain

Our commitment: Optimised resource use and zero pollution.

BIODIVERSITY

Biodiversity is fundamental to life on Earth and it is being destroyed at an unprecedented rate. More than one quarter of species assessed by the IUCN red list are currently threatened with extinction, and the world has lost 100 million hectares of forest in the past two decades (2000-2020).

With biodiversity playing a critical role in providing food, water, energy, and medicines, as well as being key to the regulation of our climate, water quality, pollution, pollination services, flood control and other factors, Sonnedix continues to promote measures to enhance biodiversity in our project locations.

A minimum of 10,000 trees to be planted annually from 2020 17,000 trees planted. 13,310 trees planted.

Promote reforestation and biodiversity friendly measures on new operational and construction projects from 2020

Biodiversity friendly initiatives include beehives, mechanical vegetation abatement or sheep grazing, and prohibition of the use of pesticides on our plants.

Biodiversity friendly initiatives have continued throughout 2021.

See the case study on page 26 for further information.

Sonnedix Talayuela – Spain

BIODIVERSITY CONTINUED

TREE PLANTING TO FIGHT DEFORESTATION

Trees help to clean the air we breathe, filter the water we drink, and provide habitat to over 80% of the world’s terrestrial biodiversity, performing vital functions around the world and being the most biologically diverse ecosystems on land. Trees are incredibly important in mitigating climate change, acting as carbon sinks, absorbing atmospheric carbon dioxide and releasing oxygen as part of the photosynthesis process. Chiefs of the UN-REDD programme declared that “forests are a major, requisite front of action in the global fight against catastrophic climate change – thanks to their unparalleled capacity to absorb and store carbon. Forests capture carbon dioxide at a rate equivalent to about one-third the amount released annually by burning fossil fuels. Stopping deforestation and restoring damaged forests, therefore, could provide up to 30% of the climate solution.”

Despite this, deforestation and forest degradation continue and are having profound consequences for human wellbeing and survival. That’s why Sonnedix focuses on the impact on trees across all of our operations. In the development and construction of new solar plants, there is the potential for adverse impacts on trees and forestry areas. To preserve these important habitats, our policy is that deforestation should always be avoided. Where this is not possible, measures to minimise deforestation and enhance and restore biodiversity net gain, for example by planting trees in other suitable areas, are considered following the ‘like for like or better’ principle.

In addition, through our ongoing partnership with One Tree Planted, we continue to fund tree planting projects across the globe, in areas where they are needed.

PARTNERSHIP WITH ONE TREE PLANTED

Sonnedix has a strategic partnership with One Tree Planted, a non-profit organisation focused on global reforestation which works with a network of reforestation partners to plant trees in areas of need. By pooling donations, they enable reforestation partners to cover the costs required to get trees in the ground, so that one tree is planted for each $1 donated.

In 2021, a total of 13,310 trees were donated from Sonnedix to One Tree Planted, over 7,500 of which were donated to the Amazon Rainforest, as part of ongoing programmes to help protect the Amazon’s biodiverse primary forests and restore degraded land. The remaining thousands of trees were planted in various locations across the globe, including the UK, the Philippines, South Africa, South America, and the US.

BIODIVERSITY CONTINUED

HABITATS AND PROTECTED SPECIES

In addition to the potential impact of our projects on forestry, the construction and operation of solar plants also has the potential to impact a wider range of habitats and protected species of flora and fauna. In all of our activities, we make all reasonable efforts to ensure that impacts on biodiversity and ecosystem services are considered, avoided and minimised throughout our projects’ life cycle.

New projects are likely to require an Environmental and Social Impact Assessment (ESIA) as part of the permitting requirements, to identify and analyse any risks, and provide the appropriate mitigation measures. The ESG team reviews these prior to development, or, if no such ESIA is available, undertakes a streamlined ESIA analysis internally. Prior to the acquisition of existing assets, analysis of the available environmental studies is included within the review performed by the ESG team. The mitigation and control measures identified in the ESIAs are implemented throughout the project life cycle in accordance with the best practice advice, including mechanisms to avoid the introduction or spread of invasive species if required.

On all our projects, we actively encourage promotion of biodiversity-friendly initiatives onsite. For instance, on numerous projects, grass maintenance is undertaken by grazing animals, such as sheep, instead of machinery. Pesticides are avoided and, if their use cannot be avoided, specific selection is made of those which have minimal impact on non-target species. See the case study for more information about biodiversity measures in France.

PROMOTING BIODIVERSITY-FRIENDLY INITIATIVES ON OUR PROJECTS IN FRANCE

In collaboration with the Ligue de Protection des Oiseaux (LPO) in France, we have undertaken biodiversity assessments of many of our plants in France, and implemented a range of recommendations which ensure our enrichment of the natural habitats in the surrounding areas. Reviews of these plants occur throughout each year in order to track the development of biodiversity on-site.

We have created biodiversity areas on our plants and followed guidance to encourage growth of the pre-existing local food web of insects, reptiles, flowers and shrubs, to restore the area’s natural wealth and support an influx on new flora and fauna. Specific measures such as birdhouses, stone areas, insect habitats, among others have been implemented to encourage nesting and breeding where appropriate.

On the four projects in France where this has been a focus, the LPO has confirmed that our plants house several protected species at high risk of extinction in the wild, threatened and near-threatened species including: 15 bird species, three butterfly species, and two reptile species.

There are around 20,000 species of bee in the world, and pollinators affect 35% of global agricultural land and nearly 90% of all wild flowering plants. A world without pollinators would equal a world without food diversity. Three out of four crops producing fruits or seeds for human consumption depend, at least in part, on pollinators. Not to mention other species and the wider ecosystems that rely on pollinators to reproduce and stay healthy.

The ‘Un Toit pour les Abeilles’ (A Roof for Bees) project, led by our team in France, has supported the installation of beehives on 11 PV plants in our France portfolio, supporting millions of bees at any one time. Sonnedix doesn’t only grant the provision of land for the beehives, we also financially support local beekeepers, so they can continue to monitor the bee population and assess the impacts the growth in pollinators has on the local environment. The support also provides upfront capital so that beekeepers can sell some great local honey and generate a reliable income of their own.

A ROOF FOR BEES/UN TOIT POUR LES ABEILLES

SOCIAL

INTRODUCTION TO SOCIAL

At Sonnedix, we understand the importance of valuing the ‘S’ in ESG and we continually strive to use our capabilities and influence to bring about positive change in the communities in which we operate and for the people that work with us.

Our Sustainability Strategy sets out our core social objective: to increase educational initiatives related to solar/renewable energy and climate change and to improve social and economic development in the communities in which we operate. This is achieved through a number of sub-initiatives implemented at the corporate, office and project level, and through effective implementation of the Sonnedix Social Policy and Standards.

The Social Policy and Standards layout our corporate objectives, responsibilities and commitments relating to Sonnedix employees, our stakeholders, local communities and health and safety.

35,512 LEARNERS

€397,028 COMMUNITY INVESTMENT

70% ENGAGEMENT

>10,000 TRAINING HOURS

>100

HIGH IMPACT TRAINING (HIT) SESSIONS DELIVERED

131 NEW JOINERS

Sonnedix Sustainability Academy class at a primary school – UK

OUR PEOPLE

SHARED VALUES AND BEHAVIOURS: THE STRENGTH OF OUR GLOBAL ONE TEAM

During the pandemic, the strength of our culture – our shared values and behaviours – has become even more important as our teams have worked in remote and hybrid settings while continuing to grow rapidly. As such, we have continued to focus on ensuring that we are building the most diverse team and creating the most inclusive workplace that we can. By ‘Doing the Right Thing’ and using our ‘Owner’s Mentality’ and ‘Positive Energy’, our Sonnedix ‘One Team’ works together across multiple jurisdictions to achieve ‘Sustainable Growth’ for the company, our investors, our people and the communities where we operate.

We have defined our ‘people algorithm’ – what makes our people successful – as capability, culture and difference. As a diverse organisation, we recognise that there is power in difference and that everyone plays a part in driving our success. We want everyone to play a full role and realise their potential in our One Team. That is why our business continually challenges itself to strengthen how we attract, support, develop and engage team members, driving a high-performance culture across the business.

We continue to review and improve the policies, resources and development opportunities offered to our people, to maximise their potential. As such, our people are supported by a complete suite of policies and processes, inclusive of the ESG Policies and Standards, the Global Company Handbook and the Managing Performance Policy, among others. Whilst our policies act as guidance and best practice for the management of the Sonnedix team, annual company targets are set, and personal objectives and development plans agreed to ensure that everyone understands their contribution and has the opportunity to grow as the company does.

TOTAL WORKFORCE*

88% PERMANENT CONTRACTS

97% FULL-TIME CONTRACTS

29% MANAGERIAL POSITIONS HELD BY WOMEN

131 NEW HIRES

39% WOMEN

OUR PEOPLE CONTINUED

TALENT ATTRACTION AND RETENTION

Our approach to our people is to attract, develop and retain a resilient, diverse, expert team which strives to achieve our present and future company goals.

Over the last year, we have worked to continuously improve this process so that we offer a connected experience over time, from candidate to pre-joiner, onboarding, new joiner and team member. Our ambition is to build a reputation as an ‘employer of choice’, attract the best possible talent, motivate and engage employees and develop people capabilities so that we have a strong, resilient future leadership cohort.

We continually strive to transparently and openly represent our employer brand in our communication channels, maximise the quality of the candidate experience, and welcome team members into our inclusive culture so that they feel they belong and are as productive as possible. For example, in 2021, we implemented a ‘buddy system’ for new joiners to provide an extra layer of support and connectivity.

We place equality of opportunity and diversity at the centre of our processes, in terms of how we prepare job descriptions, where we promote vacancies, training our hiring managers, organising diverse interview panels and onboarding successful candidates.

In 2021, we continuously improved our remote hiring process by adding psychometrics to the process, to add an additional lens of objectivity and fairness to candidate assessment. Hiring managers and candidates received continuous support through the hiring process that resulted in 131 new employees joining the team during the year. Furthermore, approximately 50% (194 employees) of our current workforce had joined since the pandemic started, and as such, we have focused closely on onboarding, with the buddy system and a culture-based training programme to help new joiners feel part of the team.

Beyond recruiting, and despite the continuing challenges of the pandemic’s impact, we maintained a low regretted attrition rate of just 2.15% while keeping engagement high, maintaining similar engagement scores as the previous year.

At Sonnedix, we recognise the link between engagement, retention and productivity. That is why, in 2021, we continued to monitor engagement trends in our team through an annual employee engagement survey. As in previous years, everyone is encouraged to respond openly and honestly as the survey is conducted by a third party to ensure anonymity and confidentiality of results.

Results are cascaded throughout the company and local action plans are formed to address areas for improvement. As part of the cascade of survey results throughout the company, we engage all teams in helping design the action plan, with a focus on areas where we have not scored in line with or above the upper quartile, or are linked to engagement key drivers. As such, we are continuing to work on improving communication between different areas of the business, ensuring processes and procedures enable people to efficiently complete tasks and that all employees understand their career opportunities and feel they have a relevant development plan in place.

75%

74% 60%

OUR PEOPLE CONTINUED

WORKING AT SONNEDIX

At Sonnedix, we offer a wide range of benefits and learning and development opportunities to ensure our One Team grows and develops, both personally and professionally, as the business does. Along with options to work across functions with global exposure, our employees can benefit from:

• Hybrid working practices.

• Coaching and mentoring programmes.

• A commitment to development, a comprehensive training offer and access to unlimited online learning.

• Comprehensive ESG agenda, volunteering days and charity events.

• Mental and physical wellbeing programmes, seminars and resources, including unlimited access to the FIT fitness app and confidential counselling.

• Off-site events, team socials and global celebrations that cross functions and geographies.

• Competitive salaries and performance-related bonus.

• An allowance for office equipment to make home-working environment as productive as possible, such as chairs, monitors, keyboards, lamps.

• Fantastic office environments and many more benefits specific to each country, which may include variations of the following depending on location:

• Private healthcare.

• Complimentary pension.

• Income protection/life insurance.

• Extended paid parental leave.

The need to adjust to an evolving ‘new normal’ continued through 2021, with teams in different countries experiencing a range of pandemic response measures and restrictions throughout the year. We therefore continued our focus on wellbeing of our employees and adapted existing work and recruiting practices to respond to the remote working challenges.

SHOCK

1

2

3

Rapid Disruption

“Safety, safety, safety” and immediate business continuity.

EMERGENCY MANAGEMENT

STABILITY

Adapting to new environment, slow changes, uncertainty.

Reading between the lines.

Focus on:

1. Team Wellbeing & Culture (physical, mental and financial).

2. Operations & Cash

3. Governance (ESG principles... the real test!)

We consulted the team extensively on what the ‘Evolve’ phase* would look like, when it became possible to return to an office environment. The outcome was a hybrid working model, whereby team members come to the office for two days per week, agreed on a team level, and choose where they work for the remainder of the week, wherever they feel safe and productive—which could be remote or in the office.

EVOLVE

Operating under a New Normal to bring Sustainability

Adapting to Complexity

Focus on:

return to scale and taking advantage of opportunities.

GROW & OPTIMISE

This approach is being piloted to ensure that colleagues have enough collaboration time and maintain a strong culture, while continuing to work effectively in remote settings. To ensure we maintain our inclusive working practices regardless of location, this process has been supported by additional ‘hybrid working’ training for managers.

* Internal term to refer to a post pandemic scenario in which Sonnedix’s working policies evolve to coexist with the COVID-19 virus.

OUR PEOPLE CONTINUED

EVOLVE DAYS

When the local pandemic restrictions permitted group gatherings, each country team held an ‘Evolve Day’; a day designed to celebrate the team being together, to introduce new team members and to reconnect and strengthen relationships. Each location had the freedom to design their own day in an outdoor setting to the extent possible.

For example, our Miami team spent the day on a boat with a beach barbecue; the London team held a scavenger hunt and a boat trip down the historic river Thames; the Chile team hiked in the mountains outside Santiago; the Japan team enjoyed bowling, and the France, Spain and Italy teams had a day of team-building.

The results were clear; both new and longer serving team members established new bonds, built trust and shared experiences through the pandemic as we paused to energise each other and celebrate being together, setting ourselves up as ‘One Team’ to deliver our 2022 company goals.

OUR PEOPLE CONTINUED

EMPLOYEE ENGAGEMENT AND DEVELOPMENT

Our learning and development strategy aims to maximise organisational capability and agility, protect the culture that underpins our success and develop people’s capabilities to the fullest.

To ensure that we have resilient, inclusive and agile leaders with a growth mindset, Sonnedix is rolling out management and leadership development programmes to build our leadership cohort and provide a shared, cohesive set of resources and support, plus an understanding of how to embrace meta trends such as digitalisation and hybridisation. We believe this will be important in driving continued business success as the rate of change continues to accelerate.

At Sonnedix, the ongoing, systematic development and engagement of employees is of utmost importance. As such, everyone is encouraged to develop their careers and grow, taking responsibility for their own development and striving to continuously improve and perform their roles to ever higher standards. This approach, together with our aim to promote from within where possible, resulted in 26 internal promotions in 2021.

Our approach to learning at Sonnedix consists of the following dimensions:

BUILD YOUR TEAM

Support for line managers

e.g. coaching, interviewing skills, performance management.

INCREASE YOUR EXPERTISE

Technical skills development.

Professional qualifications.

On the job learning.

IGROW FOR SUCCESS

Forward-looking personal development to prepare for future career opportunities e.g. emerging leaders, leadership skills, mentoring.

DEVELOP YOURSELF

Develop your competencies and behaviours – online and face to face courses and tools e.g. presentation skills, language training. Click the play button to learn more about Sonnedix learning & development journey

OUR PEOPLE CONTINUED

THE SONNEDIX MENTORING PROGRAMME

The Sonnedix Mentoring Programme is an exciting initiative that aims to build bonds, increase inclusion and share knowledge and skills across teams and countries within our organisation. It helps keep our culture strong and gives team members the opportunity to develop themselves and provide support for each other’s work, career and professional development. The primary goal of this programme is to pair mentors and mentees together for the purpose of building a relationship that supports the growth, confidence and development of the mentee. The mentor and mentee are intended to develop a relationship of mutual trust, respect, and openness, exhibit a shared commitment to the success of the relationship and be authentic with each other.

We launched the Sonnedix Mentoring Programme in May 2020, and by the end of 2021 there were over 40 mentoring relationships across the company.

In 2021, we also started a reverse mentoring pilot where early career stage team members mentor a senior manager in the business for a set period. Sonnedix tracks the balance of generational groups in the workplace on an ongoing basis. With Millennials being the largest group and with ‘Gen Z’ on the rise, it is important to ensure that potentially different perspectives, priorities or ideas are listened to and incorporated into our people policies and practices where appropriate, and that we are actively bridging any intergenerational gaps.

We seek to de-risk our operations by building competency levels in core skills, required now and in the future, and to develop a learning culture across the company to ensure we are agile and build exceptional leaders that encompass the Sonnedix values. A mixture of tools, resources, and development opportunities are provided to build these competencies and achieve individual development goals. We built a ‘Learning and Development Hub’ to enable easy access and to begin to highlight training choices for particular career journeys. These are facilitated learning sessions or courses, mentoring and coaching, on the job challenges and online learning. This offers training on-demand and at a time that suits each individual, complementing in-person and live training opportunities throughout the year.

In 2021, the Sonnedix One Team saw an increase in the number of hours of training and development per employee, reaching approximately 30h per full-time employee. This was achieved through the successful implementation of the following initiatives:

• ‘HITs’: We developed and launched these online, expert-facilitated ‘High Impact Training’ sessions to deliver accessible, relevant training and connection opportunities to everyone during the pandemic. Throughout the year 2021, over 100 HITs were delivered on 14 topics, with three specifically designed to support individuals and managers in working and leading teams remotely.

• Digital Sonnedix programme: this initiative included training on meetings and email conventions, and ‘Chairing Skills’ to prepare us to work effectively in remote and hybrid settings.

• Unconscious Bias and ‘My Part to Play’ training: This course was rolled out to all managers as a foundation for a continuing EDI development programme. The aim is to ensure people recognise and address their unconscious biases and everyone understands their shared responsibility in building our inclusive culture.

• Management and Leadership Development: We launched a Manager and Senior Manager modular development programme, run virtually over nine months, bringing together the manager cohorts across the business to learn new techniques, improve their capabilities and share experiences. Each programme was run twice, resulting in over 80 participants completing more than 30 sessions. We have redesigned our ‘Future Leaders’ programme, to target and support high potential top performers to develop their leadership capabilities at different career stages.

• Mentoring and coaching: Everyone in the company has the opportunity to request an internal mentor and coaching is used as a targeted intervention to support some individuals’ development needs.

• Online learning: All employees have unlimited access to LinkedIn Learning and the opportunity to improve their language skills through Rosetta Stone. The use of these resources is supported by ongoing initiatives to highlight relevant content, such as the ‘5 on Friday’ learning invitation which highlights ‘5 minute’ bitesize learning to encourage further exploration and a growth mindset.

We will continue to focus on our people as our most important asset as we continue to move into the ‘Evolve’ phase in 2022.

OUR PEOPLE CONTINUED

EQUITY, DIVERSITY AND INCLUSION (EDI)

At Sonnedix, we come from diverse backgrounds to work together as One Team. Our team is drawn from across functions and countries to build a bright future. We are driven by the potential of solar energy to transform lives, creating energy solutions that are healthy and sustainable for our people and our planet.

Our teams are made of people who have the qualities we believe in: the drive to do what’s right, the ability to be positive, inclusive and flexible, and the boldness to invent new ways of getting things done. When we find the right people, we empower them to make and implement decisions since we know that, given the tools and freedom to contribute, that’s when people shine their brightest.

In our drive to be a more diverse and inclusive company, 2021 saw the evolution and execution of priorities in our EDI Policy and Manifesto. The EDI Manifesto sets out Sonnedix’s commitment to EDI, and the roadmap ahead across our culture, our team and our partners. We promote EDI in the workplace through the development of an EDI framework encompassing our policies, training provision, communications, employee engagement, inclusive management practice and monitoring.

We continuously challenge ourselves to ensure diversity and inclusion is a natural part of how we think, what we do, and how we do it. In line with this, our primary aim in 2021 was to create a robust, data-driven approach to EDI looking at five dimensions of diversity: gender, generation, disability and wellbeing, race/ ethnicity, and inclusive culture.

TARGETS/AREA

40% of hires to be women from 2020

Create an EDI scorecard to set benchmarks for representation and inclusion (new for 2021)

2021 PERFORMANCE

Exceeded: 42% of new joiners recruited in 2021 were women (47% in 2020).

Achieved: created benchmarks for representation by country against local population and labour force participation by gender and other diversity dimensions. Created an inclusive scorecard for the company to enable data driven approach to inclusion.

Implement a process of diversity review and minimum thresholds as key criteria for selecting potential partners

Further encourage participation of women in our projects by designating a women’s champion on all medium and large-scale construction projects (applies to projects >20MW)

EDI criteria implemented in key supplier (module, inverter, tracker) and EPC contractor’s selection process, and in the Request for Proposals process for 2021-22 preferred panel of law firms.

Continued to incorporate requirements for women participation in all EPC contracts signed in 2021.

Our commitment: Achieve gender balance at all levels, including equal pay for equivalent work, effective policies and practices to ensure equitable career flows, and an inclusive culture by 2024; and increase representation of other under-represented groups (ethnicity, disability, etc).

OUR PEOPLE CONTINUED

Further to the overarching EDI strategy, the Sonnedix Sustainability Strategy reflects on our wider corporate EDI initiatives and includes a number of EDI-related targets.

40% OF NEW HIRES TO BE WOMEN IN 2021

We set ourselves an ambitious goal to increase gender diversity – with a goal of 40% of our new recruits to be women. In 2021, we exceeded this target, with 42% of our new recruits identifying as women.

At the end of 2019, Sonnedix was ahead of the industry average of 27% women, with women making up 30% of the team. Our efforts to increased gender diversity have led this figure to increase to 39% by the end of 2021. The composition of our Board of Directors is 28% female, above the sector average of 21%, and some teams, like our Asset Management Team in Spain, are over 50% female.

Our principle remains that we will always hire the best person for a role regardless of gender, ensuring equality of opportunity and access. The 40% goal was very challenging given women are a minority of the talent pool in nearly all functional areas and this representation also varies by geography – sometimes with women representing under 20% of the talent pool. As such, this has involved a complete review of all aspects of the recruitment process from defining roles to onboarding.

OUR PRIORITIES INCLUSIVE CULTURE

Invest in, develop and offer career progression to our people, ensuring fair access to opportunities.

GENDER

To promote the representation and advancement of women in Sonnedix.

RACE & ETHNICITY

To focus on race and ethnicity, racial diversity & intercultural competence.

DISABILITY & WELLBEING

To promote good mental health and provide an environment where everyone can manage their wellbeing, and where disabled employees can do their best work.

AGE DIVERSITY

To enhance intergenerational understanding and ways of working.

OUR PEOPLE CONTINUED

SOLAR GENDER CHAMPION

Our effort was recognised externally by SolarPower Europe in 2021. In May 2021, Sonnedix received the Solar Gender Champion award during the Solar Power Summit 2021: ‘Driving Sustainable Change’ organised by SolarPower Europe. We are aware of the need to further improve gender and diversity balance in our sector, and we aim to continue leading by example.

We are happy that our One Team is constantly supporting all our EDI activities and having received such important recognition from SolarPower Europe is testament to the advancements we are doing in our EDI strategy, and our strong commitment to making gender diversity and equity “business as usual”. Sonnedix has been invited to be a judge for the 2022 Solar Gender Champion Award.

In 2021, we launched the Sonnedix Internship Programme, which is designed to provide a meaningful work experience to people from under-represented groups who might not otherwise have the opportunity in the solar sector, further supporting our EDI strategy.

In total, 14 interns joined us for six to 12 months throughout the year, across all functions and locations. They have made a valuable contribution to their teams and several have subsequently joined us as permanent employees where opportunities to do so have arisen.

THE SONNEDIX INTERNSHIP PROGRAMME

OUR PEOPLE CONTINUED

REVIEWING INTERNAL PROCEDURES AND PROCESSES TO FURTHER ENCOURAGE EDI

There is a high degree of variation in the legal and cultural aspects of acceptable practice in relation to protected characteristics and minority/under-represented groups in the countries where we operate.

In order to ensure we were embedding and strengthening an inclusive culture and encouraging diversity in recruitment, retention and promotion, we undertook a strategic review of our approach to EDI. This resulted in our new EDI Steering Group, Champions, strategic themes, Policy and EDI Manifesto. One of our key focus areas for 2021 was the development of our ‘One Team Networks’ (employee resource groups) and ‘EDI Champions’ (country representatives who further the EDI agenda within their local offices).

Beyond this, we reviewed our recruitment practices and ensured all adverts are run through an inclusion decoder software and are advertised widely, and that our interview panels represent diversity from within our teams with interviewers trained on unconscious bias. We also developed a candidate pack, widened our online channels and leveraged our online presence to recognise and celebrate diversity in the workplace and our inclusive culture. This, along with a new flexible policy and extended maternity and paternity benefits, contributed to make Sonnedix a more accessible employer.

In 2022, we aim to increase representation, by country, based on benchmarks set in 2021 for population and workforce diversity, and create a four-year EDI roadmap against which we will measure success and growth. Ultimately, Sonnedix aims to be a leader for EDI in the wider renewables industry by creating forums and spaces for leaders to learn from each other and jointly address challenges.

ONE TEAM NETWORKS

2021 saw the growth in implementation of these networks, and their embedment into the wider business. Importantly, the groups initiated cross-collaboration where joint themes arose, particularly with a joint session from a body language and communications expert that addressed ‘Asserting yourself in the virtual workplace’.

The Career Kickstarters Network held a number of ‘Empower Hour’ sessions throughout 2021, focusing on self-awareness, communication, self-presentation, among other topics; and worked with HR to launch the reverse mentoring programme towards the end of the year.

The Sonnedix Women’s Alliance and Returning from Leave networks both hosted a variety of internal and external speaker events and topical roundtables encouraging participation and shared experiences. Specifically, the Women’s Alliance held two roundtables discussing ‘Feminism in the workplace, positive energy and mental strength’ and career progression topics related to ‘Building our own bright future’.

The Return from Leave group held focused sessions addressing numerous topics which included: focusing on mindfulness, juggling parenting including while working remotely and improving emotional resilience.

At the end of 2021 we had four active One Team Networks, including:

THE SONNEDIX WOMEN’S ALLIANCE CAREER KICKSTARTERS:

Promote the representation and thriving of women in Sonnedix by fostering, celebrating and advocating for women’s success and exposure, all with a goal of ensuring equal opportunity regardless of gender.

Promote development and empowerment for those at the start of their careers, developing both the skills specifically important for young and early-career leaders, and the confidence needed to take these initial first steps.

RETURNING FROM LEAVE LGBTQ+

Openly discuss practical ways to return from parental, career, or caretaker leave as you ease back into work and balance this going forward. The members will share tips and suggestions for leaving and returning to work and finding a balance that works.

Raise awareness and educate the business regarding the LGBTQ+ community and related issues, while connecting LGBTQ+ team members and empowering them to be as open as they wish.

OUR PEOPLE CONTINUED

As part of our commitment to our global community, we uphold individual human rights in all our operations. Our approach to human and labour rights is governed by the Sonnedix Human Rights, Forced and Child Labour standard, contained within our Social Policy and Standards document.

HUMAN AND LABOUR RIGHTS IN SONNEDIX

This involves, among many, providing reasonable working hours, fair wages, promoting a safe and healthy work environment and the fair treatment for those who work with us or on our behalf. Sonnedix has a zero-tolerance policy for the use of child or forced labour and to human trafficking practices. We explicitly state that, at Sonnedix, we do not prevent employees from associating freely and we adhere to collective bargaining agreements where they exist. Each year we publish a Modern Slavery Statement, which outlines the steps taken by Sonnedix to prevent and eradicate forced labour and human trafficking in our global operations and supply chains.

Importantly, we will not knowingly do business with Global Partners who violate these practices. We aspire to use our influence to bring about positive change, and require individuals and parties working for us or on our behalf to respect human and labour rights. As such, relevant employees are mandated to attend online ESG training that covers human and labour rights amongst other concerns.

Our contracts with suppliers, manufacturers and EPC and O&M contractors incorporate provisions on human and labour rights and are applicable to all Sonnedix’s projects and equipment supplies. We recognise that our supply chain is particularly vulnerable to human and labour rights abuses. A more in-depth overview of our approach to human rights in our supply chain can be found within the Governance chapter, including on our response to growing concerns over forced labour use in solar supply chains.

OUR PEOPLE CONTINUED

HEALTH AND SAFETY

Building a strong health and safety culture is one of our utmost business priorities. We are continually committed to both protecting and promoting the health, safety and welfare of all employees, contractors and any other individuals who may be affected by our operations, including members of local communities. This is achieved through our Health and Safety Policy Framework, accountable leadership, dedicated Health, Safety and Environment (HSE) team, and through encouraging our One Team members to take responsibility for health and safety as part of their roles and look out for each other.

The Social and Governance Policies and Standards address the importance of health and safety, and outline Sonnedix’s Health and Safety Management System, which is based on ISO 45001 standards. Along with these policies and standards, more specific health and safety plans and procedures are in place at both the corporate and project levels, to ensure an adequate level of management control. We expect all Sonnedix employees and those working on our behalf to comply with these policies, standards, plans and procedures.

continuousimprovement

SONNEDIX HEALTH AND SAFETY MANAGEMENT SYSTEM

Integratedreportingsystem

Auditsandinspections

SONNEDIX HEALTH AND SAFETY MANAGEMENT SYSTEM

RISK ASSESSMENTS

• All projects, offices and activities should be subject to a formal risk assessment addressing general and specific risks.

TRAINING

• Mandatory induction training for all Sonnedix employees (ESG policies).

• Targeted specialised training for key Sonnedix personnel.

• Contractor ‘Tool Box’ talks and training.

AUDITS AND INSPECTIONS

• Inspections by Sonnedix project teams.

• Ad hoc audits by Sonnedix HSE team or third-party auditors.

INTERGRATED REPORTING SYSTEM (FOCUS)

• Performance tracking.

• Incident monitoring.

• Audit management.

REVIEW AND CONTINUOUS IMPROVEMENT

• Regular update of procedures.

• Development of Corrective Action Plans.

• Objective and KPI setting.

PROJECT SPECIFIC PROCESSES AND PROCEDURES

Occupational Health and Safety Policies and Standards

• Construction, operations and maintenance.

• Fire and emergency planning.

• Site personal protective equipment.

• Occupational health.

• Project and office HSE risk assessment and management.

• Contractor Health, Safety, Environment and Community (HSEC) management.

• HSEC incident reporting and investigation management.

• Compliance with local regulations and contractual obligations.

OUR PEOPLE

HEALTH AND SAFETY CONTINUED

Our health and safety requirements are further included in all third-party construction, operation and maintenance contracts. To ensure compliance with the contractual provisions, the Sonnedix HSE team along with our local teams on the ground, and where required, third-party auditors perform HSE audits and inspections of our plants on a regular basis.

In 2021, we met our LTIF target, despite the challenges to operational oversight imposed during the ongoing COVID-19 pandemic.

2021 saw an increase in training and initiatives to promote a positive health and safety culture in Sonnedix. Firstly, a new 28-hr IOSH-certified Managing Safely Training course

‘Construction and Operations Safety Management at Sonnedix’ was delivered to some of our key project staff. In addition, we defined a training programme for Sonnedix employees based on job profiles, that will also be applied for new joiners moving forwards. This aims to equip our employees with the knowledge and skills needed to perform their work safely. The scope of this training programme covers topics such as electrical safety, works management, ergonomics, first aid, firefighting, work at height, lifting equipment and risk management, among others.

SAFETY OBSERVATION TRAINING

Over the year 2021, there was an increase in the reporting of safety observations following the launch of a safety observations initiative. The objective of reporting safety observations is to improve safety awareness among Sonnedix employees, as well as help on the identification of either unsafe conditions or unsafe behaviours, with the aim of preventing accidents and consequently damage to people, the environment or the facilities.

Training sessions were delivered to Asset and Project Managers in all jurisdictions and consequently a total of 126 safety observations were reported, up from 86 in 2020.

OUR PEOPLE CONTINUED

The table below summarises our health and safety-related key performance indicators for our employees and contractors in 2021:

For 2022, we have identified a number of initiatives to promote improvements in safety performance focusing on prevention measures, such as more specific definition of H&S requirements to be included in EPC contracts, streamlining of contractor’s pre-qualification process, workshops, implementation of leading KPIs and the rewarding of best practices.

OUR COMMUNITIES

As a company we ‘Think Globally and Act Locally’. With this in mind, our aim is twofold: for our solar plants to build a better future for our planet, and to improve the livelihoods of the communities in which we operate.

We are committed to identifying, evaluating, mitigating and, where possible, avoiding the potential negative impact of our projects on our communities and their cultures. Through meaningful stakeholder engagement and social and economic development activities (SED), we take a proactive approach to community relations, initiating dialogues and taking action to ensures a positive impact on communities.

SOCIAL ECONOMIC DEVELOPMENT

A vital part of Sonnedix’s operations is the delivering of social and economic development (SED) activities in the communities in which we operate. For some projects, SED is mandatory as part of the permitting requirements. However, on most of our projects, it is not a contractual obligation, but something that we choose to do to create meaningful relationships and to benefit the communities for the long term.

Our core social objective, set out in the Sonnedix Sustainability Strategy, is underpinned by the following sub-targets to further promote the social and economic development of our communities.

Our commitment: To increase educational initiatives related to solar/renewable energy and climate change, and to improve social and economic development in the communities in which we operate.

TARGETS/AREA

2021 PERFORMANCE

A minimum of 12 SED activities per year 55

Educating tomorrows problem solvers

• Increase educational impact – reach 100,000 learners over the next three years (20,000 in 2020, 35,000 in 2021, 55,000 in 2022).

• Develop the Sonnedix education portal of resources for students and teachers.

• Expand our Scholar programme worldwide and encourage girls to enter STEM careers.

• Visits to at least 10 local schools annually to raise awareness.

• Quarterly seminars of our Sustainability Academy to raise awareness of climate change and other ESG-related issues.

Helping local communities through solar

• Establish a charity or another suitable initiative/ framework for a structured and impactful community investment.

• Use solar panels to improve infrastructure in the local community and/or develop local labour skills in solar.

• 35,512 learners reached. (Cumulative from 2020: 55,762.)

• Educational portal further enhanced with the addition of SolQuest, our immersive learning experience, and a number of new online resources in different languages.

• Scholar programme expanded to Spain and successfully delivered in France.

• Three STEM career events.

• 15 lessons on climate change or solar energy delivered to schools and universities.

• The internal Sustainability Academy held four sessions.

• Community investment in 2021: € 397,028* (€327,485 in 2020.)

• The Sonnedix Atacama Solar community investment fund supported numerous projects close to our plant in the Atacama Desert, Chile.

• Solar panels installed for an NGO in Spain that hosts children with congenital heart disease and their families while waiting for medical care.

* €238,646 excluding legally required contributions to our communities in South Africa.

OUR COMMUNITIES CONTINUED

EDUCATING TOMORROW’S PROBLEM SOLVERS

Key to our Sustainability Strategy, Sonnedix invests in educating the problem solvers of tomorrow and facilitates educational initiatives through the Sonnedix Sustainability Academy. By improving access to skills, opportunities, and employment, the Sonnedix Sustainability Academy has an ambitious goal of reaching 100,000 learners by 2023.

Sonnedix set a target of 35,000 learners in 2021, through encouraging the teaching of issues such as climate change, sustainability, and renewable energy, and improving access to educational opportunities for children and young adults. Despite the challenges posed by the ongoing COVID-19 pandemic, we were able to reach our target through numerous educational initiatives. We embraced these challenges and used them as a springboard to innovate and pivot and to embrace new technologies and ways of learning, thus enhancing our educational impact.

SOLQUEST

Inspired by the wider digitalisation vision of Sonnedix and to overcome COVID-19 restrictions, we decided that if learners could not come to visit our sites in person, Sonnedix would bring the sites to them and so SolQuest—the Sonnedix solar immersive learning experience—was born. Transported to our vast Atacama Desert site, learners are immersed in the inner workings of photovoltaic processes and interact with the virtual environment through problemsolving and exploration.

The SolQuest experience is designed to meet three main learning objectives: showcasing the role of solar energy in the global energy transition; revealing how solar energy itself can be sustainable and improve its local environment and communities; and illustrating how solar panels work to turn to the sun’s rays into electricity. The platform also touches on other subjects including site safety, the history of solar and proactive and sustainable community engagement.

Through SolQuest, launched in November 2021 to coincide with COP26, we have utilised contemporary technologies and gamification to bring a new innovative learning experience to schools, museums and educational institutions.

We will continue to scale up through 2022 adding new languages and increasing our impact; aiming to exhibit in museums in all our operating regions.

If you’d like to learn more about SolQuest click here: www.sonnedix.com/solquest

OUR COMMUNITIES CONTINUED

HELPING LOCAL COMMUNITIES THROUGH SOLAR

While our plants generate clean energy and protect our planet from carbon emissions, we endeavour to also enhance the communities that make our projects possible. We recognise the potential of utilising solar technology to improve socio-economic development in the communities in which we operate. This occurs through projects to supply solar power to schools, hospitals, NGOs and through community initiatives that promote the use of clean energy sources.

MENUDOS CORAZONES

Over the course of 2021 Sonnedix has collaborated with the Madrid-based Foundation Menudos Corazones, who prevail to help children with congenital heart disease and other heart problems, and their families.

The initiative has built on our two core ESG pillars of helping the local community thorough solar and educating the problem solvers of tomorrow. Firstly, the donation and installation of solar panels onto the Foundation Menudos Corazones support centre has reduced the costs of annual bills and allowed the organisation to focus their funding where it really matters, on their beneficiaries.

Secondly, we produced a comic book, accessible on our website, which features the support centre in the narrative. Readers discover the challenges cities face with greenhouse gases and climate change and learn about the energy transition and renewable energies. Our comic strives to teach the children of Foundation Menudos Corazones how the very solar cells on their roof are healing our planet.

ATo access our Eco-3 Team comic please visit: https://www.sonnedix.com/eco-3team

OUR COMMUNITIES CONTINUED

STAKEHOLDER ENGAGEMENT

STAKEHOLDER ENGAGEMENT 2020 2021

Community meetings 6 71

Grievances 8 (6 closed) 10 (8 closed)

Meaningful stakeholder engagement is not an end within itself. It’s not just good PR or a way to manage crises when they come along. For Sonnedix, stakeholder engagement is the basis for building strong, constructive and responsive relationships that are essential for the successful management of risks and impacts on our projects. That is why Sonnedix has implemented a Community and Stakeholder Engagement Standard, which provides guidance for our projects to avoid or minimise adverse impacts on our stakeholders, in particular on local communities. A training session on Stakeholder Engagement was delivered in November 2021 for all relevant functions to raise awareness around engaging and maintaining good relationships with communities and other stakeholders.

Sonnedix has an active grievance mechanism to solicit, assess and address the concerns of our employees, people in the communities where we operate, and other stakeholders. Grievances can be submitted to our website or directly to our projects through project-specific grievance mechanisms. The central Grievance Register is maintained and updated by the Sonnedix ESG team.

In 2021, 10 grievances were recorded through this mechanism, eight of which were closed during the reporting period. The remaining two grievances are under investigation or implementation of the corrective actions is ongoing. Our HSE and sustainability management software, Focus, assists with the reporting and management of grievances and stakeholder engagement.

LIFE CYCLE STAKEHOLDER ENGAGEMENT

PRE-CONSTRUCTION/DEVELOPMENT

Environmental impact assessment including human capital (where applicable)

CONSTRUCTION/OPERATION

Implementation of the EIA measures

Appoint stakeholder relationship manager

Implementation of the SEP (If applicable)

Develop stakeholder engagement plan (SEP) (where applicable)

Information disclosure (communities and local authorities)

Reporting to stakeholders: regular meetings with communities and authorities

Stakeholder involvement in project monitoring

Addressing any concerns or objections to the project

Collaboration and partnerships

OUR COMMUNITIES CONTINUED

LOCAL JOB CREATION AND CAPACITY BUILDING

At Sonnedix, we aim to create diverse and accessible employment opportunities for the local communities throughout the lifespan of our projects across the globe.

Through our sustainability strategy, we aim to employ a minimum of 40% local labour on our construction projects through our contractors and subcontractors. We have incorporated these targets as contractual obligations in all new construction contracts, and tracking systems were developed throughout 2021 to allow us to report on our progress against this target going forward.

STAKEHOLDER ENGAGEMENT

IN SONNEDIX MESETA DE LOS ANDES

On our large project in construction in 2021, Sonnedix Meseta de Los Andes, Chile, a robust stakeholder engagement programme was implemented including the development of the Stakeholder Engagement Plan, holding 11 meetings with the communities and identifying opportunities to deliver SED initiatives during the construction and operational phases.

Governance

INTRODUCTION TO GOVERNANCE

Strong corporate governance is what makes our business more resilient and paves the way to long-term sustainable growth, whilst minimising risk, assuring compliance and instilling trust from all stakeholders. We implement sound governance procedures across our global operations to ensure that we have oversight and accountability mechanisms in place.

Our Sonnedix Sustainability Strategy has established the core governance initiative of 100% transparency, accountability, diversity and safety. This will be achieved through a number of sub-initiatives implemented at the corporate, office and project level and through effective implementation of the Sonnedix Governance Policy and Standards.

BUSINESS ETHICS

Our Code of Ethics and Business Conduct provides information, support and resources to help us act ethically and comply with the laws and regulations that affect our business. It is what allows us to maintain the trust we have built with our employees, investors, business partners, communities and other stakeholders.

Sonnedix encourages all employees to report any violations of the Code or other standards and policies, so that the highest level of accountability is ensured. This can be done through our internal Whistleblowing and external Grievance management channels.

ANTI-BRIBERY AND CORRUPTION

Our compliance expectations apply to all Sonnedix employees, suppliers and contractors and extend to the highest levels of the company. The Audit and Risk Committee has oversight responsibility for these matters, including compliance with our anti-corruption and bribery policies.

We have put in place a strict compliance programme with regard to the active avoidance of corrupt practices and observance of local laws which includes the following key fundamental elements.

Internal and third-party whistleblowing channels

An important aspect of our accountability and transparency is providing our employees with a mechanism to enable them to voice concerns if they discover information that they believe shows wrongdoing.

Our Whistleblowing Channel provides a method for properly addressing concerns about a risk, misconduct, malpractice or wrongdoing that individuals within Sonnedix may have, while also offering whistleblowers protection from victimisation, harassment or disciplinary proceedings.

In 2021, no critical concerns were raised through the internal Whistleblowing Channel.

Alongside the Internal Whistleblowing Channel, our Grievance mechanism, described in the Social chapter of this report, allows third parties to share any concerns over compliance breaches.

Conflicts of interest

One of the key tenants of our corporate governance is managing any conflicts of interest presented to the business. As with every year to date, our new joiners are asked to complete a ‘Conflict of Interest Disclosure’ within the first two weeks of employment and existing employees and directors are also requested to update their disclosure at the start of the year.

Business ethics

No confirmed incidents or legal actions have been recorded through the channels the company has in place regarding:

• Anti-corruption and bribery.

• Anti-competitive behaviour, anti-trust or monopoly practices. No political contribution has been made in compliance with our policies and standards.

No concerns were raised through our Whistleblowing Channel in 2021 (1 concern in 2020).

TARGETS/AREA

2021 PERFORMANCE

CORPORATE GOVERNANCE

Our Corporate Governance Framework is described in depth in the Sonnedix Corporate Governance Guidelines, which provide the Sonnedix Board of Directors, its various committees, individual directors and management with the framework for governance within the Sonnedix Group.

The guidelines define the way Sonnedix and its entities are governed, marking the structure of the business as outlined on the right:

• Board of Directors

• Senior Leadership Team

• Senior Management Team (an additional governance level introduced in 2022)

• Sonnedix One Team

BOARD OF DIRECTORS

Consists of the Chairman, CEO and five other directors.

Members are legally responsible individuals and representatives of Sonnedix.

All authority for decisions and actions rests with the Board of Directors, except where specifically delegated to Board Committees and/or the Senior Leadership Team. Choices to further delegate authority to any functional managers or any other specified person are made by the CEO.

SENIOR LEADERSHIP TEAM

Consists of the Chief Financial Officer, Chief Growth Officer, Chief Operations Officer and Chief People officer.

Drives implementation of our corporate strategy, performance and leads our people.

SENIOR MANAGEMENT TEAM

Responsibility over the day-to-day operation, control and functional decisions in running the company.

SENIOR MANAGEMENT TEAM

The Sonnedix One Team are ultimately responsible for executing the strategy of the company and ensuring all efforts are taken to achieve Sonnedix’s goals. Every team member should comply with Sonnedix’s policies and code of conduct.

BOARD OF DIRECTORS

SENIOR LEADERSHIP TEAM

SENIOR MANAGEMENT TEAM

BOARD OF DIRECTORS

Our Board of Directors consists of executives who provide strategic leadership, bring diverse perspectives and professional expertise in all aspects of renewable energy to drive long term value for the company.

They work together to ensure that Sonnedix continues to contribute to the global energy transition while growing sustainably, profitably and responsibly. Our Board is uniquely positioned to effectively guide our strategy and oversee our rapidly growing operations. To evaluate its performance, our Board undertakes effectiveness reviews at least every other year. As part of the 2021 Board effectiveness survey, the members of the Board evaluated effectiveness against a number of topics, including 13 ESG-related topics such as ESG oversight by the Board, culture and diversity.

CARLOS GUINAND

THIEMANN

SONNEDIX’S BOARD OF DIRECTORS: FUNCTIONS AND COMPOSITION

BOARD OF DIRECTORS CONTINUED

COMMITTEES

The Board has established six standing committees to effectively implement its oversight function and ensure focus on matters of strategic importance.

Audit & Risk Committee

Responsible for overseeing the Group Audit, managing internal audits and periodic internal investigations, identifying, evaluating and monitoring risks across the Group and formalising risk management programmes consistent with the Group’s risk tolerances.

Budget Committee

Responsible for reviewing and approving the Group’s annual budgets (to be dissolved into the Board of Directors from 2022).

HR & Compensation Committee

Responsible for assisting and supporting the Board with the design and implementation of a consistent and robust HR policy and reviewing certain compensation matters.

Investment Committee

Responsible for reviewing and assessing all proposed investments against the company’s strategy, risk appetite and growth objectives.

Performance Committee

Responsible for reviewing the operational and financial performance of the Group, driving enhanced performance through recommendations and oversight of the implementation process.

Development Committee

Responsible for deploying allocated capital within pre-agreed risk parameters and responsible for the implementation of Sonnedix’s development initiatives.

All committees report regularly to the full Board with respect to their activities.

Each committee operates under a written charter that sets forth the purpose and responsibilities of the committee. Each committee is chaired by a Director who, in accordance with the committee charter, determines the agenda, and the frequency and length of the meetings.

28% WOMEN 28

4/7 DIRECTORS INDEPENDENT

13 2021 BOARD EFFECTIVENESS SURVEY COMPLETED INCLUDING ASSESSMENT AGAINST MORE THAN 13 ESG TOPICS

SUSTAINABILITY GOVERNANCE

OUR SUSTAINABILITY GOVERNANCE

Strong sustainability governance structures and clear lines of accountability enable us to deliver on the Sustainability Strategy commitments and on our ESG Policies and Standards. An overview of the ESG responsibilities within Sonnedix is described in the diagram to the right

Accountability and transparency are amongst our core governance objectives. As such, we hold ourselves accountable for our sustainability goals, commitments and targets through metrics, measurement and annual reporting, including the publication of annual sustainability reports. This report constitutes our second annual Sustainability Report and is signed off by the Chairman and the CEO and presented to the Board of Directors.

The report is based on a materiality assessment undertaken in early 2021 to identify the most relevant ESG topics for the Group and our key stakeholders.

The Board of Directors, along with the members of our Senior Leadership Team and some key functional managers, contributed as key internal stakeholders, thus ensuring that their views on the impact of the material topics on the company were incorporated. In line with the latest developments in sustainability reporting standards, this assessment will be refreshed in 2022 and will further delve into the notion of ‘double materiality’ to enhance our transparency on topics that are key to our stakeholders.

We seek to keep our Board updated on relevant ESG-related initiatives, strategy updates and performance. As such, our General Counsel and the ESG team present up-to-date information on our ESG performance at each Audit and Risk Committee meeting. In addition to this ad-hoc updates on emergent ESG topics are regularly presented at the Board and/or relevant committees’ meetings.

Board of Directors

Highest

governance body responsible for ESG matters.

Establishes the strategic direction of the Sonnedix Group and guides and monitors overall sustainability performance and management.

Chairman/ CEO General Counsel

CHAIRMAN

Highest individual responsible for ESG matters.

CEO Reports to the Board against key sustainability strategy targets and performance. Drives ESG performance across the business.

Provides regular reports and updates to the CEO, Chairman and Board of Directors.

Provides regular updates to the Audit and Risk Committee where ESG is a permanent item on the agenda.

Senior ESG Manger ESG team

Ensures the implementation of the Sonnedix Sustainability Strategy.

Confirms observance of the ESG Policies and Standards.

Provides updates to the General Counsel and the Audit and Risk Committee on a regular basis.

Subject matter specialists that support the business on ESG issues, priorities and actions, and engage stakeholders to identify best practices, mitigate risk and effect change.

ESG team is further supported by the ESG Champions in each of our offices.

Our commitment: 100% transparency, accountability, diversity and safety.

TARGETS/AREA

Increase accountability through public annual sustainability report against targets and quarterly sustainability updates to the Board of Directors and at the country team briefs

2021 PERFORMANCE

Annual sustainability report published (this report).

ESG remains a standing agenda item at Audit and Risk committee meetings.

Updates on emergent topics are provided to relevant committees and the Board on an ad hoc basis.

ESG continues to be discussed in monthly team briefs in all jurisdictions.

COMPLIANCE

Our compliance expectations apply to all Sonnedix employees, our Global Partners and extend to the highest levels of the company. The Audit and Risk Committee of our Board of Directors has oversight responsibility for these matters. To ensure ongoing compliance, Sonnedix has developed a compliance review process summarised to the right.

Prior to entering into an agreement with any Global Partner, we undertake a documented due diligence audit of our partners.

As a first step, an initial risk assessment is carried out to establish the level of due diligence required. Once established, research is conducted by the Legal and Compliance team on the Global Partner’s background, reputation and qualifications. Having obtained assurance of compliance with our policies and standards, the Global Partner is approved upon completion of the due diligence. As a result of these mandatory compliance checks 104 third parties were analysed in 2021; no critical allegations were reported.

Training and raising awareness of our legal compliance work among the workforce has continued to be a priority in 2021, with refreshed training courses and communications implemented throughout the year.

Furthermore, we continued to improve and utilise our legal software solutions for integrated management and oversight of our contractual work. We also provided regular legal and regulatory updates for the business and have delivered a number of ‘Lunch and Learn’, ‘Trusted Advisor’ sessions and ‘Legal Clinics’ aimed at increasing awareness of and supporting our One Team in the effective use of our internal management systems.

SONNEDIX COMPLIANCE REVIEW PROCESS

GOVERNANCE POLICY AND STANDARDS

Code of Ethics and Business Conduct

Anti-bribery & Corruption Standard

Whistleblowing Policy

GLOBAL PARTNERS STANDARDS OF CONDUCT

Third Party Questionnaire

Third Party Certification

LAUNCH OF ABC/AML SOFTWARE APPLICATION

Sonnedix operates in one of the riskiest industries for anti-bribery and corruption issues – the Energy Sector due to its high degree of government interaction.

The introduction of a new, tailored Anti-bribery/ Anti-money laundering (ABC/AML) application to the business has been conducive to a new simplified process of undertaking pre-screening

TARGETS/AREA 2021 PERFORMANCE

Compliance: Maintaining the robust legal and regulatory compliance programme

Trading restrictions

compliance checks (in addition to our regular, full-scale checks) before the process of engaging with a new business partner has even started.

By streamlining pre-screening checks the business is enabled to perform a risk assessment in a more efficient way. Pending on the risk level of any given counterpart, we now have the ability to decide at the onset that we will not pursue a relationship further if high risks for anti-bribery and corruption are found at this stage.

104 due diligence of third parties were undertaken.

117 new joiners successfully completed the ABC onboarding training.

Compliance specific application launched, and all business functions trained in its use.

Quarterly compliance awareness raising communications.

114 parties analysed for material non-public information and risks for market abuse out of which six were placed under trading restrictions.

ESG COMPLIANCE

FOCUS ON ESG COMPLIANCE

Compliance with our ESG Policies and Standards and the Sustainability Strategy is an integral part of our Legal and Compliance programme. An overview of our ESG compliance approach is presented on the right.

Our robust ESG requirements are included in all contracts with Global Partners and enable us to use our influence and commitment to sustainable growth to bring about positive change. These requirements are updated whenever new reporting or compliance needs are identified. Besides, we regularly perform audits of our projects and suppliers to ensure effective implementation on the ground. Performance KPIs are also monitored on a regular basis through monitoring and reporting systems. Internally, we make sure that our One Team is fully aware of how we do things responsibly through mandatory ESG trainings and ESG tailored communication campaigns.

In addition, we request all our new joiners to read and sign their acknowledgement of our ESG Policies and Standards and to complete a mandatory online ESG training within the first two weeks of their employment.

TARGETS/AREA 2021 PERFORMANCE

Maintaining a robust legal and regulatory compliance programme

Continued to maintain a robust Regulatory Change Management System to monitor legislative and regulatory changes in all the jurisdictions where we operate, and for markets where we are looking to enter.

Changes that are relevant to Sonnedix are tracked and evaluated to understand the impact on the business and the need for control or action.

Embedding ESG

Standards in all EPC/O&M contracts, including reporting ESG data

Continued participation in industry benchmarking platforms such as GRESB and maintain GRESB

5* score

ESG contractual provisions have been further strengthened in particular in relation to human rights and GHG emissions reporting.

Maintained 5* GRESB rating. (95/100).

Named ESG Global Solar Power Generation Leader for the fourth consecutive year.

ESG COMPLIANCE CONTINUED

ESG/HSE AUDITS TO EPC AND O&M CONTRACTORS

Environmental, climate, labour, human rights, stakeholder engagement and health and safety risks are carefully managed and monitored on our projects to mitigate potential negative impacts on the natural environments, workers and communities in which we operate. Whilst we require Global Partners working on our behalf to implement their own assurance mechanisms, Sonnedix also undertakes audits of its projects and suppliers to ensure that our ESG Policies and Standards are being followed.

As such, the Sonnedix ESG and HSE teams annually produce a Health, Safety, Environment and Community (HSEC) audit plan for key EPC and O&M contractors. Any non-compliances identified during an audit are reported to the ESG and HSE teams and may be made the subject of an action plan provided to all parties involved.

Despite travel restrictions imposed by COVID-19, which remained in place throughout most of 2021, we continued to carry out our audit programmes, either directly by the HSE/ESG teams or through the third parties. For more information on the audits to our suppliers, please refer to the section to the right

TARGETS/AREA

Adoption, implementation and annual review of an HSEC audit programme

2021 PERFORMANCE

16 HSEC audits carried out (11audits in 2020). Major non-compliances identified in relation to three audits to contractors, which were subsequently resolved through implementation of corrective actions or contract termination.

RESPONSIBLE SUPPLY CHAIN AND PROCUREMENT

As a responsible power producer, our responsibility does not end with our direct operations but extends to our supply chain.

Our supply chain predominantly consists of module, inverter and racking suppliers. Given the large quantity of modules purchased annually their supply has been an important focal point in ensuring compliance with our ESG Policies and Standards.

Due to the global supply chain issues in 2021, a significant portion of module procurement for our key construction projects (over 350MW) has been delayed to 2022. As such associated audits of factories where these modules were to be produced, were also limited. The 2022 audit programme will reflect a more significant number of audits and inspections.

FORCED LABOUR IN SOLAR SUPPLY CHAINS

In 2021, the solar sector came into the spotlight as a consequence of recent allegations of forced labour in the solar supply chains*. At Sonnedix, we strive for the highest standard of human rights and treat these allegations with the utmost seriousness. We stand firmly against the use of forced labour and any abuse of human rights, as clearly stated in our Social Policy and Standards.

Following the allegations, we have taken a twofold approach:

OUTWARD LOOKING

Taking an active part in solar power associations’ work around this topic, to support the development of an industry-led solar Supply Chain Transparency Programme which aims to enhance end-to-end transparency and sustainability across the solar supply chains. Refer to the case study on the right for further information.

Our ability to make change at a scale is not possible without our suppliers who we engage with around this topic to ensure their commitment to eradicating any forced labour in solar supply chains through increased traceability.

suppliers and EPC contractors procuring on our behalf. These robust contractual requirements allow us to vet and routinely check our suppliers and contractors through our audit programmes, which were continued into 2021. In 2021, our audits of module manufacturers have not identified any evidence of forced labour.

Additionally, a cross-functional, internal Working Group was established to leverage different expertise and allow for a multifaceted approach to the issue. It includes representatives from Legal and Compliance, including ESG and Regulatory, Procurement, Quality Assurance, Commercial Contracts and Communications functions. The ESG team coordinates the Working Group and reports regularly (quarterly as a minimum) to the relevant Board Committees on the actions that Sonnedix are taking to mitigate human rights risks in our supply chain.

PARTNERSHIPS WITH SOLAR ASSOCIATIONS

Responsible supply chain

Increased scope of third-party ESG audits of the supply chain.

Updated ESG requirements in module supply agreements (MSAs) to reflect increased scrutiny around forced labour.

Updated ESG requirements in suppliers’ pre-qualification.

3 supply chain quality and ESG audits.

INWARD LOOKING

Ensuring alignment with industry best practice and reflecting on any new or heightened risks, further strengthening our existing ESG pre-qualification, contractual and audit requirements with module

An effective grievance mechanism is also key to keep track on any issues throughout our supply chain and, therefore, specific requirements are included in all the contracts in this regard. Furthermore, a global email address (inform@sonnedix.com) is available for reporting on any grievances associated with our activity or our contractors, including on human rights abuses.

We recognise that driving and achieving systematic change in complex supply chains and creating long-term positive social impact requires collaborative action with other key industry stakeholders. As such, we take active part in the work of solar power associations around this topic globally, but given that the vast majority of our plants are located in Europe, we have focused our efforts on SolarPower Europe. Since 2021, Sonnedix is sponsoring the development of the Supply Chain Transparency Programme that is currently being developed by SolarPower Europe and Solar Energy UK. With support from external consultants specialising in supply chains, this work aims at further developing transparency to safeguard the global solar supply chain from human rights abuses. The programme is supported by 30 leading buyers and suppliers of solar PV equipment.

We think that this type of initiatives, alongside dialogue and cooperation with regulators, are key in the prevention of forced labour in solar supply chains. * Murphy, L. and Elimä, N. (2021). “In Broad Daylight: Uyghur Forced Labour and Global Solar Supply Chains.” Sheffield, UK: Sheffield Hallam University Helena Kennedy Centre for International Justice.

RISK MANAGEMENT AND RESILIENCE

The management of corporate risk is an essential component of sustainable growth in Sonnedix, ensuring that, as we grow, potential risks to the business and employees are assessed, managed and mitigated.

RISK MANAGEMENT PROCESS

We put risk assessment at the core of our leadership agenda and informed risk taking at the core of our decision making. The Audit and Risk Committee assumes the overall responsibility for risk oversight and management and, by and through the General Counsel, conducts annual corporate risk management surveys to review the effectiveness of our risk management and internal control systems.

In addition, monitoring and management of corporate risk remained prominently at the top of the agenda at the senior executive level throughout 2021. As such, a Risk Review Committee at the senior leadership level was established and quarterly risk review meetings introduced to further foster an enterprise-wide culture that supports appropriate risk review and management. The objective of the risk review meetings is to monitor the Group Corporate Risk Programme and identify, evaluate and mitigate risks across the Group. Critical risks that are discussed include: tax and financial, insurance, compliance (ESG/HSE, ABC), legal, disputes, regulatory and cyber. Key risks are further presented and discussed at the Audit and Risk Committee. We recognise the connection between risk management and sustainability management. Our corporate risk management includes sustainability-related risks such as climate change, people and culture, regulatory and reputational, including community.

In 2021, we conducted our annual corporate risk management survey across the Board of Directors, the Senior Leadership Team and senior management, including ESG, to assess the likelihood and impact of key risks, along with the risk velocity and appetite. As a result, the risk dashboard has been updated for new risks and key performance indicators to be monitored going forward.

Our Risk Management Programme continues to be effective in managing and reducing the exposure of our business and people to the key risks. 2021 saw further focus and emphasis on climate-related risks and awareness raising amongst the Senior Leadership Team.

For more information on our approach to climate risk, refer to the Environment chapter, Climate Change section.

Audit and Risk Committee

General Counsel Risk Review Committee

RISK MANAGEMENT AND RESILIENCE CONTINUED

TRAINING ON THE RISK APPETITE STATEMENT

KEY TOPICS COVERED

As our markets have become increasingly competitive and regulatory environments are changing rapidly, understanding risk appetite and tolerance is a crucial business tool to stay agile.

In order to better provide a framework for defining the categories of risk within Sonnedix and determine the ideal level of risk to engage in within our functions and day-to-day activities, Sonnedix has formalised our Risk Appetite Statement (RAS) in 2020. Following the adoption of the RAS, we instituted a mandatory training in 2021 to embed and operationalise RAS by educating our various functions around this new approach and give them a toolkit to apply the concepts of the RAS.

The key topics covered by the training include:

• Risk Appetite Fundamentals – What is a RAS? How does it link to the organisation’s corporate strategy? Why was it important for Sonnedix to have one?

• Articulating our Risk Appetite – Who created our RAS? What steps were taken to decide our appetite? How is it uniquely suited to Sonnedix?

• Operationalising Risk Appetite – What are our responsibilities in operationalising our risk appetite and how will it affect the regular workflow within the business?

The training was delivered by our General Counsel who presented and worked through functional specific examples and case studies to support our One Team apply the RAS in real life scenarios and encourage appropriate risk awareness, behaviours and judgments about risks at Sonnedix.

Formal risk register provided to Board? Yes

Risk Appetite Statement adopted? Yes

attendance for risk training

RISK MANAGEMENT AND RESILIENCE CONTINUED

REGULATORY

In order to develop its objectives and adapt to the rapidly evolving regulatory landscape in the energy sector, Sonnedix established a dedicated regulatory engagement function in 2021. Embedded within Sonnedix’s Legal and Compliance team, a Senior Regulatory Engagement Manager was appointed to establish a new strategy for monitoring regulatory risks and opportunities, and oversee active engagements with regulators, government institutions and entities in all the jurisdictions that Sonnedix operates in.

Establishing proactive and positive advocacy practices formed the foundation of the new global strategy, ensuring that representations to authorities are done in a fair manner and demonstrate Sonnedix’s values of commitment to the energy transition, and to sustainable and ethical practices.

The Board is regularly updated on any material regulatory risks and opportunities that arise, along with the constructive engagements that are undertaken to deliver policy and business objectives. Recently, Sonnedix has actively participated and engaged with authorities in Spain, Chile and France regarding the development of regulations and policies that impacted Sonnedix’s operations.

In 2022, we will be organising dedicated stakeholder forums and roundtables to engage with local entities, groups and experts on matters in the energy markets. Additionally, Sonnedix will increase its contributions to consultations regarding the development of policies and regulations that will impact its operations and growth goals. Navigating the regulatory changes and challenges that arise from high electricity prices and sustainability commitments will be of particular importance and will require constructive dialogue directly with authorities on policy developments.

TARGETS/AREA 2021 PERFORMANCE

Regulatory engagement strategy

New proactive advocacy strategy put into effect.

Engaged with key stakeholders to understand and respond to material issues.

STRATEGY IN ACTION – ENVIRONMENTAL AND SOCIAL REGULATORY DEVELOPMENTS

Regulatory change management system

Delivered a robust monitoring and reporting system.

Improved communication channels across local teams and central functions, ensuring effective integration of views and decision-making on material changes.

The issues of minimising environmental impacts, ethical supply chains and socio-economic benefits are key topics in solar PV deployment and have been subject to regulatory interventions by governments in 2021. Under the new engagement strategy and regulatory change management system, Sonnedix has monitored and engaged on regulatory changes that have impacted new projects socio-economic and environmental obligations.

In Spain, regulations were introduced which affected the conditions of access and connection to the electrical grids for new plants, requiring projects to satisfy certain socioeconomic development and environmental impact criteria. In Italy, there have been regulatory developments with regards to defining guidelines on what projects are deemed to be Agri-PV. Sonnedix has made representations to industry associations and authorities on these areas and provided feedback to ensure material consequences that can impact project developments have been accounted for by authorities.

Sonnedix Coti – France

RISK MANAGEMENT AND RESILIENCE CONTINUED

INSURANCE

Our insurance function, embedded within the Legal and Compliance team, plays an essential role in the governance, compliance and overall risk transfer and management for Sonnedix operations. Insurance protects our balance sheet and provides the necessary assurance to lenders financing our solar projects.

In line with the best practice, we commissioned an independent audit of global insurance arrangements in the first half of 2021, with the aim to establish any ‘red flags’, such as missing or insufficient insurance coverage, and to confirm compliance with our insurance requirements from lenders.

Sonnedix maintains Property & Casualty Insurances for its operational assets, which include environmental liability covers. Insurance spend for 2021 in respect of Operational All Risks and Third-Party Liability Insurance globally was in excess of €4.5m. We have seen our claims loss ratios, the ratio of claims settled to premiums paid, improve significantly over the past year.

For example, our European umbrella programme, which now insures well over 300 solar assets, has a claims loss ratio of approximately 20%. This represents a considerable improvement relative to historic loss ratios.

The improved claims position reflects our increased focus on risk mitigation measures such as site security, theft prevention, flood and earthquake mitigation and revamping of existing operational plants to update solar technologies and infrastructure. These are all activities that positively impact claims and enhance our standing with insurance markets, brokers and lenders.

LAUNCHING A NEW INSURANCE STRATEGY

During 2021 we defined and launched a new strategy for global insurance at Sonnedix. This strategy proposes a new operating model and centralised structure for Sonnedix insurance to improve process efficiencies and governance and reduce insurance costs.

The new strategy will bring all existing asset insurances into a single European umbrella programme. This applies to both newly acquired solar operational assets and those under construction and target European jurisdictions for our business. We will also continue to operate a separate umbrella programme for solar assets in Chile.

CYBERSECURITY

Sonnedix continues to adopt increasingly more advanced technologies to support our rapid growth in a world where cybersecurity threats are exponentially increasing combined with the rapid shift to remote working by employees in response to COVID. To combat these threats we are frequently reviewing, adapting and enhancing our overall cybersecurity posture to ensure that we have robust defences in place across all our systems, infrastructure and information assets.

In response to these changes and heightened cyber risks, Sonnedix is investing in transformational new cybersecurity capabilities and continuous improvement to deliver a best-inclass security posture. These capabilities include AI-powered defences across our networks and infrastructure and ensuring we engage and train our employees on the current and emerging threat landscape and common techniques and tactics employed by threat groups. This includes maintaining staff training, cybersecurity certifications for relevant security staff and regular phishing simulations to test employees’ awareness of such emails with automatic enrolment into further training if the employee is unsuccessful.

Our regular day-to-day cybersecurity practices are also frequently reviewed and enhanced with respect to our system patching, vulnerability scanning and system configurations through to our Crisis Management and Incident Response Plans to ensure they remain aligned to our evolving technology estate and appropriate given the evolving external threat landscape.

TARGETS/AREA

Cybersecurity performance and training

2021 PERFORMANCE

Four phishing test campaigns were launched in 2021 with an average 85% rate. Those 15% of employees who failed were required to undertake further training.

NEW TECHNOLOGY AND DIGITALISATION

We are living at a time of radical transformation of business models, strategies and paradigms, as we witness the Fourth Industrial Revolution. The renewable energy sector is an early adopter of this transformation as digitalisation has become an integral part of the energy transition. It is undeniable that from smart metering to customer-oriented services, new technologies are shaping the future of the energy market. Additionally, in terms of sustainability, digitalising businesses contributes to three of the UN’s 17 SDGs: SDG 9 (Industry, innovation and infrastructure), SDG 11 (Sustainable cities and communities) and SDG 12 (Responsible production and consumption).

Although solar is already contributing to a sustainable energy system, the speed at which the solar industry adapts to the digital transformation is key to ensure its success. The challenge now, in this so-called ‘Industry 4.0’, is to know when and how to use the opportunities offered by digitalisation and new technologies. As such, in 2021 we focused on accelerating our digital transformation journey that started in 2020.

Since our strategy is and has always been based on people, Sonnedix One Team, our first step opened an internal company dialogue about what being a digital company means to Sonnedix. Through dedicated mandatory HIT training sessions, everyone in the company has been challenged to start thinking about smart technologies, digitalisation and how they can better our company and its performance.

In the second half of 2021, Sonnedix developed an IT strategy incorporating the feedback received in these sessions. This strategy is the foundation for our digital transformation projects, establishing an in-house IT department accountable for IT and digitalisation.

In parallel to this, as the pandemic progressed, we also evolved and adapted our work procedures, moving to a hybrid way of working with our workforce operating both from home and from our offices. Therefore, we have reviewed video conferencing tools, both software and hardware, to ensure they best suit the new working model.

As part of our newly launched IT strategy, we have kicked off new global platforms to create efficiencies and standardisation in our day-to-day operations, such as a new Asset Management platform which is currently being rolled out globally. Additionally, Sonnedix continues to implement innovative technologies, with AI data management and state of the art technology on Sonnedix’s plants. In the short term, we also plan to set up our own storage cloud so that we can have full control of our data, creating value and driving competitiveness. This will also allow us to increase our cyber security to protect our sites and workforce from cyberattacks and unauthorised access. Furthermore, new digital technologies such as virtual reality have been successfully utilised in the work of the Sonnedix Sustainability Academy with the launch of SolQuest, our immersive online learning experience.

ABOUT THIS REPORT

Using the Global Reporting Initiative (GRI) Standards as a basis, this report provides an overview of our progress in 2021 towards the implementation of our Sustainability Strategy and ESG Policies and Standards, including our performance against our ambitious ESG targets set out therein.

We intend to provide clear, balanced and concise information and accurate, reliable and comparable data to satisfy the information needs of each of our stakeholders in a timely manner. As such, this report complies with the principles for defining report content and quality set out in the GRI 101: Foundations Standards 2016 as summarised on the right.

CHANGES IN 2021

Any new plants acquired in 2021 are reflected in the reporting for the year. The divestment of Puerto Rico portfolio (74MW) closed in December 2021. As such key ESG performance data for the Puerto Rico portfolio is reflected in this report up until 16 December 2021.

OUR STAKEHOLDERS

Creating and maintaining a long-term and mutually beneficial relationship with our stakeholders is key to Sonnedix. As such, we have identified our key stakeholders and aim to keep bi-directional, truthful and meaningful communications with them, through the channels described in the following tables:

OUR PEOPLE OUR COMMUNITIES SUPPLIERS SHAREHOLDERS

• Corporate website

• Sonnedix Intranet and internal newsletters

• Performance reviews; Employee satisfaction survey

• HR department

• Informative emails from corporate mailboxes/departments

• Global state of the business update calls by the CEO

• Sustainability Report/Sustainability Academy/ESG + activities

• Global webinars and workshops organised by different departments

• Internal whistleblowing channel

• Press releases

• Social media: LinkedIn, Twitter, YouTube

• Corporate website

• Sustainability Report

• Community engagement activities

• SED activities

• Grievance mechanism

• Public consultation processes

• Meetings with project/asset managers and local teams

• ESG/Marketing and communication department

• Press releases

• Social media: LinkedIn, Twitter, YouTube

• Corporate website

• Sustainability Report

• Grievance mechanism

• Compliance and ESG screening

• Regular meetings and comms

• Industry events and conferences

• Sector associations

• Press releases

• Social media: LinkedIn, Twitter, YouTube

• Corporate website

• Sustainability Report

• Internal whistleblowing channel

• Board of Directors/Committees meetings

• Regular updates though the Investment Asset Manager

• Press releases

• Social media: LinkedIn, Twitter, YouTube

OUR STAKEHOLDERS CONTINUED

GLOBAL PARTNERS PUBLIC ADMINISTRATION

• Corporate website

• Sustainability Report

• Compliance and ESG screening

• Regular meetings and communications

• Industry events and conferences

• Press releases

• Grievance mechanism

• Social media: LinkedIn, Twitter, YouTube

• Corporate website

• Sustainability Report

• Regular meetings and communications

• Sector associations

• Press releases

• Official government communications channels

• Social media: LinkedIn, Twitter, YouTube

LEARNERS & ACADEMIC COMMUNITY MEDIA

• Corporate website

• Sustainability Report

• Sonnedix Sustainability Academy

• Focus Groups

• Webinars, lectures and site visits

• Participation in career events and conferences

• Press releases

• Social media: LinkedIn, Twitter, YouTube

• Corporate website

• Sustainability Report

• Press releases

• Interviews and information requests

• Marketing and communications department

• General enquiries and grievance form (website)

• Social media: LinkedIn, Twitter, YouTube

HOW WE DEFINED THE CONTENT OF THIS REPORT

SCOPE OF THE INFORMATION

Unless otherwise stated, the information and all performance indicators contained in this report refer to the activities carried out during 2021 (calendar year) by the assets, offices and companies under the control of Sonnedix Group. These activities have a social, environmental, economic and governance impact both inside and outside the organisation’s perimeter.

To ensure comparability and facilitate a better understanding of the evolution of the company’s performance, 2020 is considered as our baseline year for the purposes of Sonnedix’s sustainability reporting. In 2021 and subsequent reports, historic data will be included to enable year to year comparison. As we continue to grow and develop our sustainability reporting system, a series of further internal controls will be implemented to ensure the highest reliability of the data.

MATERIALITY AND RELEVANCE

To identify the most relevant sustainability topics for the Group and our stakeholders, Sonnedix undertook a materiality assessment in 2020. In line with the latest developments in sustainability reporting standards, this assessment will be refreshed in 2022 and will further delve into the notion of ‘double materiality’ to enhance our transparency on topics that are key to our stakeholders.

The 2020 materiality assessment process consisted of four stages and considered both internal and external factors which were jointly analysed to obtain the final result:

TOPIC IDENTIFICATION

Analysing different data sources to generate an initial list of topics:

• Reporting standards and frameworks: GRI Standards, Sustainability Accounting Standards Board (SASB)

• Sustainability benchmarks: GRESB, Corporate Sustainability Assessment (DJSI)

• Peers’ reports

• Megatrends

• Sonnedix Sustainability StrategyPublic Administration

CATEGORISATION

Creating clusters and identifying commonalities

• 26 potentially material topics

EXTERNAL RELEVANCE

Assessing how relevant each topic is for our stakeholders when making strategic decisions about Sonnedix and/ or when assessing Sonnedix’s performance, strategy and results

• Media Analysis

• Peers/Competitors

• Sector Associations

• Opinion leaders/Think tanks

• SASB materiality Matrix

• GRESB material topics for Sonnedix

• External survey to key Global Partners and stakeholders

• 314 potential topics MATERIALITY MATRIX: MATERIAL TOPICS

INTERNAL RELEVANCE

Gauging the strategic importance of the topics to the business by assessing how critical each topic is in terms of the impact on the company’s ability to create value for its stakeholders and execute its corporate and sustainability strategy

• Internal survey to key internal stakeholders including our Board of Directors, the Global Leadership Team and some key function heads

HOW WE DEFINED THE CONTENT OF THIS REPORT CONTINUED

ANNEX 1 GRI CONTENT INDEX

ANNEX 1 GRI CONTENT INDEX

ANNEX 1 GRI CONTENT INDEX CONTINUED

Countries in which a Collective Bargaining Agreement is applied: France, Spain, Italy, representing 51% of the total number of employees. Note: this is a not referring to bargaining agreements negotiated by Sonnedix, but industry/country-wide agreements which apply to all employees and employers of the same category.

Sonnedix applies the minimum legal notice period in each country, or above.

Unless otherwise stated, all the information in this report refers to the entities included within the

ANNEX 1 GRI CONTENT INDEX CONTINUED

ANNEX 1 GRI CONTENT INDEX

GRI

ANNEX 1 GRI CONTENT INDEX CONTINUED

ANNEX 1 GRI CONTENT INDEX CONTINUED

ANNEX 1 GRI CONTENT INDEX CONTINUED

Breakdowns by age and employee category are not provided in full. Not applicable/relevant given the size of the organisation.

ANNEX 1 GRI CONTENT INDEX CONTINUED

ANNEX 2 ASSETS AND OFFICES INCLUDED IN OUR CARBON FOOTPRINT OPERATIONAL CONTROL APPROACH

Asset

Location

Lavansol V (Calenzana) France

Meridian Solaire (Castelnau) France

Chateau solar II (Revest) France

Lavansol M1 – Chateauneuf France

Corsolar (Meria) France

Corsolar II (Coti) France

Soleol I (Cabasse) France

Soleol II (Ginasservis) France

Istres Sulauze France

Istres Saint Martin France

Elecsol (John Turner) France

Lavansol I / M1 France

Lavansol I/M23 France

Lavansol I/M6 France

Lavansol I/M8A France

Lavansol I/M8B France

Lavansol I/M9 France

Lavansol M13 France

Lavansol M14 France

Asset Location

Romilly Sur Seine France

Sunergos (Servas) France

Sunergos (Lanas) France

Toul 3 Sonnedix Rosieres/Toul 31 France

Toul 3 Sonnedix Rosieres/Toul 32 France

Solaire Uglas France

Aude France

Sonnedix Provence France

Lavansol M12 France

Lavansol M16 France

Chateau Solar VI France

Quincieux France

Oriana Puerto Rico

Offices

Location

London United Kingdom

La Ciotat France

Rennes France

Paris France

Madrid Spain

Milan Italy

Miami US

San Juan Puerto Rico

Santiago Chile

Tokyo Japan

ANNEX 3 – PEOPLE DATA

ANNEX 3 – PEOPLE DATA