Sonnedix Sustainability Report 2022

Sonnedix Power Holdings Limited

LETTER FROM THE CEO

AXEL THIEMANN

CHIEF EXECUTIVE OFFICER

“Our position as a global renewable energy producer puts us at the forefront of the energy transition, but this is not enough for us. We also want to ensure that the transition to renewables will be sustainable, inclusive and just.”

“2022 has proven to be yet another challenging year for businesses and populations across the globe. We faced unrelenting geopolitical and macroeconomic disruptions this year including the reemergence of large-scale armed conflict in Europe and a costof-living crisis compounded by highly volatile energy prices and supply chain disturbances. In parallel, we continue to bear witness to increasingly frequent extreme weather events across the globe as scientists continue to issue dire warnings on the ‘unequivocal’ warming of the planet as a result of human activity.

In such a challenging environment, it is important to note that the energy sector has a key role to play. From introducing market reforms to ensure the security and diversification of supply, to further decarbonisation of the sector through faster deployment of renewable energy technologies, the energy sector has huge potential to address some of the above adversities during this decade. As one of the largest renewable energy players in Europe, with a strong presence in other key global OECD markets, we have sought to embrace this potential by fast-tracking our growth and focusing on hybridisation.

In 2022, we transformed from a solar independent power producer (IPP) into a leading renewable energy producer, triggered by the acquisition of the 290MW solar and wind platform Arco Energy in Chile. Sonnedix had long been preparing for this evolution however, by expanding our geographical footprint and focusing on digital transformation and innovation.

Our global platform grew to surpass 8.5GW of total capacity in 2022. We entered two new markets: Poland, with a platform acquisition of almost 1GW of solar PV under development, and Portugal, with the acquisition of a 262MW late stage development solar portfolio. We expanded our presence in the UK market, through the acquisition of 300MW of solar PV under development, and also in the US market, with a new 160MW solar project in Colorado. We signalled our

commitment to digitalisation by partnering with Palantir Technologies, a leader in Artificial Intelligence, to support our digital transformation. Similarly, we increased our focus on innovation by exploring hybridisation via multi-technology generation, that will allow us to get closer to our customers, increase our flexibility and create more value for our shareholders.

Our position as a global renewable energy producer puts us at the forefront of the energy transition, but this is not enough for us. We also want to ensure that the transition to renewables will be sustainable, inclusive and just. This is why we seek to go beyond business as usual and ensure that, as we grow, we continue to tackle both our own and our value chain footprint, enhance local ecosystems, work with our peers to address human rights risks in renewables supply chains and foster diversity, equity, and inclusion. We thus implemented several initiatives over 2022 to contribute to such a just and equitable transition and as a result, met a number of key milestones from our Sustainability Strategy. As part of our commitment to net zero by 2040, we started the year by commencing a cross-functional collaboration on the development of the net zero roadmap outlining our pathway to reach this formidable and critical goal. Following the outbreak of the Ukraine war, we launched a ‘Give it Up for Ukraine’ campaign in March which raised over EUR50,000 of employee and Company donations for organisations in Poland helping Ukrainian refugees fleeing the war. We continued to endorse and support the work of solar power associations aimed at increasing transparency and responsibility in the solar supply chains.

We witnessed the launch of the Solar Stewardship Initiative in October of which we are a proud sponsor along with other key industry players. We significantly improved our health and safety culture, seeing a sharp decrease in LTIF from 3.5 in 2021 to 2.2 in 2022. In November, we hosted Sonnedix’s first Global Diversity, Equity and Inclusion (DEI) Summit, an event attended by more than 100 participants from over 20 different energy and infrastructure companies.

The Summit was an opportunity to share experiences in elevating DEI in workplaces and learn from each other. We finished the year on a high by reaching over 300,000 learners in 2022 against our annual target of 45,000 and we were also delighted that 2022 was the fifth consecutive year we have been awarded a maximum 5* rating by GRESB in recognition of our ESG performance.

Looking ahead, we recognise that regulators, investors, insurers and communities increasingly demand more transparency and standardisation in relation to companies’ sustainability-related risk and performance. This report is our tool for increasing transparency and accountability for our non-financial performance and is produced with reference to the Global Reporting Initiative. Whilst no reporting standards are perfect and Sonnedix is not yet where we want to be in terms of our non-financial reporting, we are continuously working to improve it in line with the best industry practice. As such we will continue to align with the latest EFRAG (European Financial Reporting Advisory Group) and TCFD (Task Force on Climate-related Financial Disclosures) guidelines in the coming years and work on better integrating non-financial and financial reporting whilst maintaining a high sustainability performance.”

ABOUT SONNEDIX 2

ABOUT SONNEDIX

Established in 2009, Sonnedix is an international Renewable Energy Producer with over a decade-long trajectory of sustainable growth. We develop, build, and operate renewable energy projects for the long term, with a focus on providing green, affordable electricity to our customers.

At Sonnedix, we work towards a shared purpose: to Power a Bright Future. We believe in renewable energy’s potential to transform daily life, and work on building long-term partnerships to deliver a continuous, reliable and efficient supply of clean electricity to our communities.

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 renewable energy 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, attesting to our company’s stability, value and long-term potential.

SONNEDIX IN NUMBERS

We have over 460 renewable energy projects in operation, under construction or in development in ten countries: Chile, France, Germany, Italy, Japan, Portugal, Poland, Spain, the UK and the USA.

At the end of 2022, our team consisted of 538 (2021: 404) people, including executive directors, employees, contractors and employees of our trusted Japanese development partner, Sonnedix Japan K.K.

ABOUT SONNEDIX 2

ABOUT SONNEDIX SUSTAINABILITY AT SONNEDIX 2022 AT A GLANCE

ENVIRONMENT

SOCIAL GOVERNANCE ABOUT THIS REPORT ANNEXES

OUR VALUE CHAIN

Sonnedix’s business model leverages a number of different input resources to develop, construct and operate renewable energy plants across the globe.

This, in turn, generates short, medium and long-term value for various stakeholders, including our planet, people, communities, customers and investors. We continuously work on embedding our commitments to sustainability throughout the value chain and review our approach to respond to the latest risk profile and align with the best industry practice.

TIER 1 SUPPLIERS

OUR PURPOSE, VALUES AND STRATEGIC OBJECTIVES

OUR PURPOSE AND VALUES

At Sonnedix, we work towards a shared purpose: to power a bright future. Renewable energy’s potential to transform daily life is what drives us to build long-term partnerships to deliver a continuous, reliable and efficient supply of clean electricity to our communities.

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.

THE UNIFIED FRAMEWORK MODEL

OWNER’S

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 problem solvers, 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 fifth consecutive year 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 2022 results, announced in November, we achieved an overall score of 94 out of 100, against a peer average score of 75.

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.

SONNEDIX’S SUSTAINABILITY STRATEGY

Our 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, and Governance, with underlying subtargets and action plans, committing Sonnedix to achieving net zero, gender balance, reaching learners through our education around solar energy, 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.

We are currently refreshing our Sustainability Strategy to respond to, and align with, the latest global sustainability trends from ever increasing global commitments to act on climate change and biodiversity, to social equity and human rights/value chain management.

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.

GOVERNANCE

100% transparency, accountability, diversity and safety.

ENVIRONMENT

Achieve net zero by 2040 and maximise efficient, sustainable resource use.

CORE ELEMENTS OF THE SONNEDIX SUSTAINABILITY STRATEGY

SOCIAL

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

SONNEDIX AND THE SUSTAINABLE DEVELOPMENT GOALS

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:

LIFE ON LAND

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

GOOD HEALTH AND WELL-BEING

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

CLIMATE ACTION

ENVIRONMENT CHAPTER

RESPONSIBLE CONSUMPTION & PRODUCTION

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

Through the production of renewable energy and our goal of becoming carbon neutral. 15 3 4 5 7 8 11 12 13 OUR CONTRIBUTION TO THE SDGs

SUSTAINABLE CITIES & COMMUNITIES

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

DECENT WORK & ECONOMIC GROWTH

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

QUALITY EDUCATION

Education is a core focus of our Sustainability Strategy, with our target of reaching 100,000 learners by 2023 exceeded through our Sustainability Academy.

GENDER EQUALITY

Setting out gender-related targets and initiatives; 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.

AFFORDABLE & GREEN ENERGY

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.

2022 AT A GLANCE

2022 AT A GLANCE

JANUARY

• Commencing our net zero roadmap, devising a pathway for emissions reduction to reach our formidable and critical goal of net zero by 2040

FEBRUARY

• Releasing our first comic book, the Eco-3 Team comic series, to teach children about climate change and renewable energy in a fun and engaging way.

MARCH

• Supporting Ukraine, through the ‘Give It Up for Ukraine’ campaign, by providing assistance to Ukrainian refugees impacted by the war.

• Participating at the World Education Summit 2022, aimed at inspiring teachers to teach about renewables.

APRIL

• Launching SolQuest as an exhibit at the Frost Science Museum in Miami.

• Running a company-wide DEI training ‘Supercharging our differences’ to actively invite difference to our teams.

AUGUST

• Launching SolQuest in multiple languages to further expand our impact worldwide.

• Welcoming over 50 students from the Collège Font de Fillol in Six-Fours-les-Plages to one of our plants in France.

JULY

• Participating in the NaturArte Festival in Italy, to engage families in sustainability and solar energy.

• Funding three grants for the Science in Schools programme run by the Royal Institution in London.

JUNE

• Inviting masters students from the University of Jaén to visit two of our plants in Spain.

• Celebrating World Rainforest Day by donating the funds to plant 5,000 trees in the Amazon Rainforest.

MAY

• Supporting the KID Museum’s challenge, ‘Invent the Future’, asking students to invent solutions to improve life on this planet.

• Conducting our first global Crisis Management Drill to test the capability of our crisis management programme

SEPTEMBER

• Inviting students from Pica high school to visit Sonnedix Atacama Solar, our largest solar plant to date, to learn about the workings of solar energy.

OCTOBER

• Achieving the maximum 5* rating by GRESB Infrastructure Assessment for the fifth year running.

• Launching of the industryled Solar Stewardship Initiative to further develop a transparent and sustainable supply chain

NOVEMBER

• Holding Sonnedix’s first global DEI Summit, to create the opportunity to share experiences, learn from each other and create a greater impact across the sector.

DECEMBER

• Inviting students from the International Indonesian School in Tokyo to our Sonnedix Sano plant, to teach about the power of the sun in creating green electricity.

2022 SUSTAINABILITY PERFORMANCE IN NUMBERS

5 STARS

Rating by GRESB for five consecutive years

12,000 Trees planted >35%

>300,000

Learners reached through our educational programme

Decrease in LTIF

48 Community initiatives

>13,000 hrs

Of learning & development for our employees

>1.5 mill€

Invested in local communities and charities

952,580 tCO2e avoided 93% Of waste diverted from landfill 43% Of new hires were women

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 renewable energy.

In the development, construction and operation of our renewable energy plants across the world, we continue to commit to preserving the local environment, fostering biodiversity and protecting natural resources, to leave a positive impact on the planet.

As such, our key ambition is achieving net zero by 2040 and maximising efficient sustainable resource use in our activities. 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 Intergovernmental Panel on Climate Change (IPCC) AR6 Synthesis report, released in March 2023, emphasises the “rapidly closing window of opportunity to secure a liveable and sustainable future for all”. The future of our planet rests in the actions we, as businesses, governments, investors and individuals, take during this decade.

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 fossil fuel-based power generation, resulting in significant amounts of CO2e avoided. In 2022, this equalled over 952,580** tonnes of CO2e avoided, based on the production of over 2.6GWh.

For Sonnedix, the ambition does not stop here. Our aspiration goes beyond the production of clean energy, to become a truly sustainable business. In 2021, Sonnedix was amongst the first 100 signatories of ‘The Climate Pledge’, committing to net zero by 2040; a decade ahead of the Paris Agreement. 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.

In line with enhanced climate science and continually progressing priorities, we have replaced our prior commitment of becoming carbon neutral with our new net zero ambitions, and have moved our focus towards emissions reduction, rather than offsetting, ahead of this 2040 target. Specific emissions reduction targets across all three scopes of emissions will be published as part of the Sustainability Strategy refresh that is expected in 2023. Our progress against these targets will be disclosed in our subsequent reporting.

SCOPE 1 SCOPE 2

2,385,437 2,602,450

945,815** 952,580**

SCOPE 1

SCOPE 2

SCOPE 1+2

SCOPE 3

The GHG emissions data is compiled in accordance with the GHG Protocol Corporate Accounting and Reporting Standard (GHG Protocol). The operational control approach as defined in the GHG Protocol is used for setting organisational boundary and consolidating scope 1 and 2 emissions. In 2021, this approach was limited to those plants/offices which were directly operated by Sonnedix. In 2022, following the structural change, and establishment of the in-house operations and maintenance team, the reporting boundary was expanded to include all Sonnedix’s operational plants in scope 1 and 2, regardless of their operation by Sonnedix personnel or third-party contractors. As such, our 2021 baseline has been recalculated and updated in this report.

ROADMAP TO NET ZERO

We are committed to reducing our direct and indirect greenhouse gas (GHG) emissions in line with achieving net zero emissions by 2040.

Throughout 2022, the focus has been on identifying reduction opportunities to be implemented in subsequent years, through the creation of our net zero roadmap. However, some measures have already been implemented in 2022, such as: switching to green energy tariffs for purchased electricity on a number of operational plants in Europe and some offices; replacing diesel generators with portable solar systems on some projects; and engaging with suppliers around this topic to understand their decarbonisation plans and better calculate our scope 3 emissions.

CLIMATE RISK ASSESSMENT

CLIMATE RISK

A standalone climate risk assessment was conducted in 2022 where key internal stakeholders from multiple business functions were asked to assess 21 different physical and transition climate risks.

Physical risk types included both acute and chronic hazards and stressors, and transition risk types included policy and legal, technology, market and reputation categories. Each individual risk was scored in terms of severity and likelihood and an overall risk rating ascertained in accordance with Sonnedix’s standard risk matrix.

In assessing the physical risk of climate change, all acute and chronic risks were prominent for Sonnedix. The increased severity of extreme weather events provides the potential for disruption to Sonnedix’s operations, with the damaging of equipment and infrastructure. Extreme heat can both reduce the efficiency of solar panels and affect employees who are working on this site and may prevent them from working. This extreme heat combined with a higher potential for drought presents an increasing wildfire risk, which can cause further damage to assets and pose a human health risk.

In assessing the transition risk of climate change, enhancing reporting and regulation, uncertainty in market signals, and increasing cost and scarcity of raw materials were found to be most prominent. Whilst increasing climate-related regulations can be an opportunity for renewable energy providers such as Sonnedix, they provide some risk from the fast changing regulation and increasing need for compliance and reporting functions. As climate ambitions increase and new renewable energy providers enter the market, there will inevitably be increased competition for equipment components, which may induce scarcity or increase costs. Whilst some level of risk is apparent, the transition to a lower-carbon economy largely presents an opportunity for us to further expand our business and deploy renewable energy to meet regional and country-level net zero targets. Our business model, based exclusively on green energy, is well-positioned to be able to capture these opportunities.

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 continues to be an important focus area and is an integral part of our risk management process.

Responsibility for the oversight and management of climate-related risks and impacts spans the entire business, from the Board of Directors, the Chairman and CEO, through to the ESG team and wider leadership and management personnel. Any climaterelated risks are presented and discussed through Sonnedix’s wider Enterprise Risk Management process, via the Audit and Risk Committee.

Throughout 2022, we worked to further increase our understanding and awareness of how climate-related issues can affect the many assets and offices we have across the globe. As such, a standalone climate risk assessment and impact survey was conducted and the results fed into the corporate risk register, as further detailed in the case study.

In order to obtain a more detailed understanding of our portfolio’s risk from climate change, we commenced work on a Climate Scenario Risk Analysis at the end of 2022, which will be completed in 2023. This exercise aims to identify climate-related physical risks and opportunities for Sonnedix and assess the impact of these risks against selected climate scenarios and across current and future time horizons, in alignment with TCFD. This will allow us to have more informed discussions around climate risk, and identify appropriate control and any mitigation actions.

RESOURCE EFFICIENCY

One of Sonnedix’s environmental core commitments is to maximise efficient resource use both on our projects and in our offices.

The Sonnedix Environmental Policy and Standards document provides the expectations we have of our employees, contractors and those working on our behalf to improve resource efficiency by implementing technically and financially feasible measures in consumption of all resources, including energy, water and waste.

ENERGY WASTE WATER

Water remains a scarce resource in many areas of the world. Such areas are becoming increasingly threatened as a result of climate change and continued inefficient use of this precious resource. For Sonnedix, the use of water is predominantly for purposes of dust suppression and civil works on construction projects, and panel cleaning on operational projects. We continually strive to reduce our consumption of water on our project sites and to implement measures to prevent adverse impacts of project-related water use on communities or the environment, particularly in areas of high water stress.

Sonnedix continues to reduce waste generation, and, in the case of unavoidable waste generation, applies the waste hierarchy and approach of ‘Reduce, Reuse, Recycle’, with disposal remaining as only a last resort.

As part of the Sonnedix Sustainability Strategy, we set the target of zero panels, inverters or batteries to landfill, and ensure diversion of this waste through approved recycling schemes, such as PV Cycle in Europe. As a result of implementation of our waste policies, 93% of waste generated on our construction and operational projects was diverted from landfill in 2022, exceeding our 60% target.

Sonnedix encourages the implementation of energy reduction measures on all of our projects, such as installation of energy efficient and motion sensing lighting, energy efficient heating and cooling devices, efficient use of fuel for generators, among other measures.

Operational energy purchased* (MWh)

Through the Sustainability Strategy, Sonnedix committed to a reduction in overall energy intensity of 10% by the end of 2022 against the 2020 baseline. This target has been exceeded as a result of the significant increase in electricity production since 2020 and an increase in fuel efficiency on project sites.

Our target for 30% reduction in water intensity by the end of 2022 has not been met, with a 10% overall reduction against our baseline. This is mainly as a result of an increased number and scale of projects in construction over 2022. In particular, two large and complex projects are under construction in Chile and Japan, which both required complex civil works and in the case of Chile, significant reliance on dust suppression measures to minimise the negative impact on local receptors. Despite this, we continue to incorporate specific water reduction requirements on operational projects, especially in relation to water used for panel cleaning, and achieved an over 20% decrease.

BIODIVERSITY

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.

Our ambition is to enhance our reporting on biodiversity-related metrics in the coming years, and to set further commitments in our Sustainability Strategy refresh.

HABITAT & ECOSYSTEM ENHANCEMENT

The construction and operation of solar plants have the potential to impact a wide 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 often required to have an Environmental and Social Impact Assessment (ESIA) which identifies and analyses risks. The assessment provides mitigation measures that are implemented in accordance with best practice advice. When an ESIA is not required for permitting, the ESG team reviews available studies, undertakes a streamlined ESIA analysis, or requests other additional studies if any risk is suspected. We conduct due diligence to make sure we are not endangering the biodiversity of an area.

Even directly on our plants, we promote biodiversity. On many sites, we have transferred the responsibility of grass maintenance from machines to grazing sheep. On numerous of our projects in France we have installed beehives, 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. In parallel, we also have environmental initiatives on selected sites, whereby we create insect and solitary bees’ habitats, and provide bird houses and ponds that encourage species nesting and breeding where appropriate.

PARTNERSHIP WITH ONE TREE PLANTED

FIGHTING DEFORESTATION

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 2022, a total of 12,000 trees were donated from Sonnedix to One Tree Planted. This included 5,000 trees in aid of International Forest Day, going towards restoration of forest and woodlands in the United Kingdom, and 5,000 trees in aid of World Rainforest Day, going towards the Amazon Rainforest. The additional 2,000 trees were donated to multiple locations across the globe, including Spain, the Philippines, Florida and the Andes.

Trees are vitally important to life on this plant. Not only do they help to clean the air we breathe, filter the water we drink and provide habitat to over 80% of the world’s terrestrial biodiversity, they perform vital functions around the world and are 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.

While our solar plants require open land, rather than contributing to the deforestation issue in our world, we are actually fighting against it. To preserve these important habitats, our policy is that deforestation should always be avoided. Whenever this is not possible, we replace trees in excess. We also have a dedicated partnership with One Tree Planted and an annual goal to plant 10,000 trees a year, which was exceeded in 2022.

ENVIRONMENT

INTRODUCTION TO SOCIAL

We understand the importance of valuing the ‘S’ in ESG and continuously strive to use our capabilities and influence to bring about positive social change.

Our Sustainability Strategy sets out our core Social objective: to increase educational initiatives related to renewable energy and climate change and to improve social and economic development in the communities in which we operate. This is achieved through several 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 lay out our corporate objectives, responsibilities and commitments relating to Sonnedix employees, stakeholders, local communities and health and safety.

+300,000 +€1.5mill 72% 13,000

OUR PEOPLE

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

The true power of Sonnedix comes from the over 530 individuals that make up our global One Team and drive the ongoing growth and success of our business. These are the ‘people powering a bright future’.

Whilst separated by geography and diverse in cultural background, our Sonnedix ‘One Team’ is united by our shared values and behaviours. By ‘Doing the Right Thing’ and using our ‘Owner’s Mentality’ and ‘Positive Energy’, we work together to achieve ‘Sustainable Growth’ for the company, our investors, our people, and the communities in which we operate.

We recognise the value of the diverse perspectives brought by our team members and thus strive to foster a culture that embraces differences without bias. As such, we have continued to focus on building the most equitable and inclusive workplace that we can and accelerating diverse representation across all levels of our business.

We believe everybody has a role to play, and we want to empower all our team members to realise and maximise their potential in our One Team. 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 and succeed along with the company.

194

New hires

530+

Total workforce

43% Women hires

Under 40 28% Managerial positions held by women 90% Permanent 99% Full-time CONTRACTS

>57%

TALENT ATTRACTION AND RETENTION

Our business continuously challenges itself to attract and retain a resilient, diverse, expert team which is equipped to achieve our present and future company goals.

Over the last year, we have worked to improve our processes so that we offer a seamless experience over time, from potential candidate to established team member. We place equality of opportunity and diversity at the centre of these processes, in terms of how we prepare job descriptions, promote vacancies, train our hiring managers, organise diverse interview panels and onboard successful candidates.

Our ambition is to build a reputation as an ‘employer of choice’ to attract the best possible talent to our organisation. We aim to achieve this whilst simultaneously motivating and engaging our current employees to develop their skills and capabilities and in doing so, foster a strong, resilient future leadership cohort. For example, in 2022, we added ‘reverse mentoring’ to our coaching and mentoring services, thus establishing an important networking opportunity for junior personnel who can connect with and be heard by more senior and experienced colleagues. The programme contributes to building a culture of trust and transparency within the business and supporting inclusivity within our multi-generational workplace. We further enhanced our hiring process by strengthening our use of psychometric assessments, 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 194 new employees joining the team during the year.

Beyond recruiting, we maintained a low regretted attrition rate below 5% despite a very competitive post-pandemic recruitment sector. Engagement has remained high, and has improved in some countries and functions as a ‘new normal’ rhythm was established in the business.We continued to run our annual engagement survey in 2022 whilst also conducting regular pulse surveys to check-in on all aspects of the team’s wellbeing. 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 formulated to address areas for improvement. As part of the cascading of survey results throughout the company, we engage all teams in helping design the action plan, through a series of focus groups, with an emphasis on areas where we have not scored in line with or above the upper quartile or areas which are linked to key engagement drivers. As such, we continue to work on improving communication between different areas of the business and streamlining processes and procedures as we evolve, to enable people to efficiently complete tasks and for all employees to understand their career opportunities and feel they have a relevant development plan in place.

EMPLOYEE ENGAGEMENT 2022 PERFORMANCE

ADVOCACY

JOB SATISFACTION

WORKING AT SONNEDIX

The world of work is evolving and Sonnedix is committed to keeping pace with its rapid transformation for the benefit of our employees. Thus we offer a wide range of benefits as well as learning and development opportunities to ensure our One Team grows and develops, both personally and professionally, in parallel with our business. For the list of benefits offered to our employees refer to Annex 2

One of our main priorities is helping our people find a meaningful and balanced way of working. As part of this, we’ve moved to and embraced a hybrid model of working for our office-based employees. Our global policy is that team members come to the office for at least two days per week and can choose where they work for the remainder, depending on where they feel the most productive, which could be remote or in the office.

We have adopted this approach to ensure 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.

EMPLOYEE ENGAGEMENT & DEVELOPMENT

Our employee engagement and development strategy aims to reinforce and strengthen our culture through learning, empower our team members to take control of their development, and build the capabilities required to enable us to deliver our strategic goals.

In 2022, we launched the ‘Sonnedix Academy’, a one-stop-shop for all development needs. Our comprehensive offering provides team members with a platform to accelerate their growth and recognise ‘one company, many careers’ within Sonnedix. As we head into 2023, our priority is to continue to facilitate learning across functions and geographies to reinforce our One Team culture.

Refer to Annex 2 for further information on our employee development initiatives.

OUR EMPLOYEES IN 2022

HOURS OF LEARNING AND DEVELOPMENT

13,000+ 100%

COMPLETED THEIR PERFORMANCE REVIEWS

LAUNCH OF TOP TALENT PROGRAMS

This year we launched two brand-new development programmes aimed at accelerating the development of our top talent.

We created the ‘Accelerator’ programme, targeting our earlyto-mid-level talent, and the ‘Future Shaper’ programme, targeting our senior-level leaders. Both programmes run across an 18-month period and blend in-person events, which bring together team members from across the world, with virtual learning sessions, and psychometrics. Each programme kicks off with an in-person event we call ‘Unplugged’.

It is the first opportunity to bring the group together, outside of the office environment, and is focused on building the foundations for the rest of the programme through a series of activities, challenges and workshops. The ‘Unplugged’ experience provides the opportunity for each team member to challenge themselves outside of their comfort zone and to demonstrate their leadership potential and capabilities, while reinforcing the importance of the team outcomes and showing resilience and agility in response to the external context.

This year, our Accelerators explored the Peak District, UK, and the activities included raft building, abseiling, rock climbing, hiking and caving, whilst our Future Shapers were based in the New Forest, UK, where they engaged in a series of leadership command tasks, high ropes challenges, raft building, plus a series of workshops on leadership and peer coaching. Feedback on the programmes so far has been extremely positive and they have been successful in reinforcing our ‘One Team’ culture.

DIVERSITY, EQUITY AND INCLUSION (DEI)

We are committed to increase the representation of women at Sonnedix by bringing in and cultivating new female talent and developing existing talent to take on leadership roles; increase diversity across the dimensions of age, disability and ethnicity; and continue to maintain an inclusive culture with an Inclusion Score above 70%.

Our Sonnedix One Team is made up of individuals from a range of diverse backgrounds united by our belief in the transformative potential of renewable energy to change lives and create solutions that are healthy and sustainable for our people and our planet.

Our people all 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, 2022 saw the evolution and execution of priorities in our four-year DEI Manifesto. The DEI Manifesto sets out Sonnedix’s commitment to Diversity, Equity and Inclusion, and the roadmap ahead across our culture, our team and our partners. 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 2022 we were over halfway through our four-year DEI Manifesto commitments which we launched in 2020 to run from 2020 – 2023. We achieved some significant milestones including increasing the number of women hires into the business (overachieving our goal of 40% even as we grow in headcount significantly), increasing our Inclusion Score to 77% and running our first Global DEI Summit for companies across the energy landscape.

GENDER DIVERSITY

In line with our aim of increasing gender diversity, we set ourselves an ambitious goal of 40% of our new recruits being women and in 2022, we exceeded this target, with 43% of our new joiners being women.

Sonnedix was ahead of the industry average of 27% women at the end of 2019, with women making up 30% of our team. Our efforts to increase gender diversity have led this figure to increase to 37% by the end of 2022 whilst the composition of our Board of Directors is 28% female, also above the sector average of 21%.

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, with women sometimes representing under 20% of the talent pool in certain jurisdictions. As such, this has involved a complete review of all aspects of the recruitment process from defining roles to onboarding.

43% of our new joiners were women in 2022.

To enhance intergenerational working, explore the aspirations of our colleagues who are new in their careers.

To invest in & develop our people, introduce leadership DEI objectives and undertake diverse, inclusive recruitment.

AGE

DIVERSITY

INCLUSIVE CULTURE

To promote the representation & advancement of women at Sonnedix by fostering, celebrating and advocating for women’s success and visibility, with a goal of ensuring equal opportunity, regardless of gender.

GENDER

DEI

PRIORITIES

DISABILITY & WELLBEING

RACE & ETHNICITY

To promote good mental health and provide an environment where everyone is aware of and can proactively manage their wellbeing and where our disabled employees can do their best work.

To improve racial diversity & inclusion by focusing on race, ethnicity, racial diversity & intercultural competence and listening to the experiences of colleagues from minority groups to inform Sonnedix’s DEI action plans.

SONNEDIX DEI SUMMIT SUPERCHARGING OUR DIFFERENCES

In November 2022, we held the first Global DEI Summit, an external event with over 100 participants from 28 different energy and infrastructure companies attending.

The DEI Summit was an opportunity to elevate conversations on how we and other organisations in the energy and infrastructure sector can foster a sense of belonging within a diverse, equitable and inclusive culture and learn from each other. Speakers from NHS England, the New York Police Department, PwC, Barclays, Solar Power Europe and others shared their experiences in elevating DEI in their workplaces.

The authentic sharing and practical insights were part of the key takeaways for participants who had very positive feedback:

• 100% said they gained useful DEI insights

• 95% said it was a valuable investment of their time

We know that to grow sustainably, we need to not only ‘tolerate’ or ‘accept’ difference but actively invite it in – to our teams and our decision making. In 2022, we ran company-wide DEI training called ‘Supercharging Our Differences’.

This was open to all employees across functions, teams and geographies. The focus of the training was to enable employees to actively invite difference by seeking it out. This experiential session was designed to support employees in understanding their privilege, and their difference and to ensure that different points of view were always incorporated before making a decision.

This session made me think a lot about differences and how to use them in a positive way. It is good to see different points of view and at the same time share yours. It was good to make a good introspection of yourself.

In 2023, we aim to create ambitious goals for Women in Leadership and create our long-term roadmap for DEI to 2030. Ultimately, Sonnedix aims to be a leader for DEI in the wider renewables industry by creating forums and spaces for leaders to learn from each other and jointly address challenges.

HUMAN AND LABOUR RIGHTS

We uphold individual human rights in all our operations and across our value chain to ensure all persons connected to our organisation are treated with dignity, respect and fairness. 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.

This involves, among many other things, 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, our employees are mandated to attend online ESG training that covers human and labour rights amongst other concerns.

Our contracts with suppliers, manufacturers and 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.

HEALTH AND SAFETY

Building a strong culture of health and safety (H&S) is one of our key business priorities.

As demonstrated in the Social and Governance Policies and Standards, we are continuously 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 accountable leadership, a 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.

Sonnedix’s H&S Management System is based on OHSAS 18001 and ISO 45001 standards. Along with our policies and standards, more specific health and safety plans, procedures and contractual requirements 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.

To ensure compliance with our policies and 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.

2022 PERFORMANCE**

We surpassed our LTIF target in 2022 ( >35% lower), despite the high number of active construction projects during the year, thanks to the deployment of several strategies.

For example, we ramped-up our H&S training and initiatives across the business to further promote and instil a positive culture of H&S. Some of the relevant initiatives included:

• Upgrading our EPC and O&M contracts to further promote safety awareness and reflect on best practices in H&S.

• Improving our contractors’ pre-qualification survey questionnaire to gain more insight into what really matters in terms of H&S expected performance.

• Launching a new and more agile system for the collection of safety observations.

• Increasing networking activities with other renewable energy companies, with the aim of continuous improvement through the sharing of best practices.

• Delivering 96 training courses on HSE topics including working at height, electrical safety, risks management, safety observations, firefighting, first aid, safety management, works management amongst others reaching a total number of 249 Sonnedix employees.

• Regular update of procedures.

• Development of Corrective Action Plans.

• Objective and KPI setting.

• Performance tracking.

• Incident monitoring.

• Audit management.

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

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

• Targeted specialised training for key Sonnedix personnel.

• Contractor ‘Tool Box’ talks and training.

• Inspections by Sonnedix project teams.

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

SAFETY OBSERVATIONS

There was a huge increase in the number of safety observations reported globally throughout 2022 with more than 800 reported, up from 126 in 2022.

This can be attributed firstly to the launch of our improved reporting system, initially in Japan and then throughout our other jurisdictions, and secondly to the various H&S initiatives deployed throughout 2022.

These initiatives have empowered our One Team to independently detect and report unsafe conditions and behaviours.

A significant part of the reduction in accidental incidents we have observed in 2022 can be attributed to these initiatives, and planning to strengthen them further in 2023 with the launch of a ‘Best Safety Observation Contest’.

FIRST AID & FIRE PREVENTION COURSES CRISIS MANAGEMENT DRILL

As part of the H&S initiatives deployed throughout 2022, First Aid and Fire Prevention courses were held for our teams in Madrid and Chile. These courses were designed to equip our One Team in these jurisdictions with the necessary skills to effectively and confidently prevent and prepare for these types of workplace incidents.

Participants in the Fire Prevention course had the opportunity to learn and practis different fire extinguishing techniques in varying scenarios.

The First Aid course meanwhile focused on teaching participants how to effectively administer Cardiopulmonary Resuscitation (CPR) and techniques for immobilising and transporting injured people.

A significant part of the reduction in accidental incidents we have observed in 2022 can be attributed to these initiatives, and we are planning to strengthen them further in 2023 with the launch of a ‘Best Safety Observation Contest’.

In May 2022 we had our first global Crisis Management Drill to test the capability of our Crisis Management Plan (CMP).

The scenario simulated was a Coronal Mass Ejection (CME), a significant release of plasma and accompanying disrupting magnetic field from the solar corona. This scenario was chosen as such an event would affect all jurisdictions in which Sonnedix has an operational presence.

Thus, the global corporate organisational structure as well as the local Crisis Management Teams in a number of jurisdictions participated in the exercise.

OUR COMMUNITIES

As members of the communities in which we operate, we work to contribute to their social and economic development (SED), with the aim to create value and improve the lives of our neighbours.

Hence 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 SED initiatives, we take a proactive approach to community relations, initiating dialogues and taking action to ensure a positive impact on the communities.

SOCIAL ECONOMIC DEVELOPMENT

A vital part of Sonnedix’s operations is the delivering of SED initiatives. 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 renewable energy and climate change, and to improve social and economic development in the communities in which we operate.

2022 PERFORMANCE

48 +300,000 +€1.5mill

SED ACTIVITIES

LEARNERS REACHED

CHARITABLE GIVING AND COMMUNITY INVESTMENT

TOMORROW’S PROBLEM-SOLVERS

Educating the problem-solvers of tomorrow is crucial to inspiring future generations to overcome the problems of climate change. Aware of this fact, Sonnedix has made education a key tenet of our Sustainability Strategy and facilitates educational initiatives through the Sonnedix Sustainability Academy

The Academy is open to anyone that wants to learn how together we can all power a bright future, and by improving access to skills, opportunities and employment, we have an ambitious goal of reaching 100,000 learners by 2023. This target was surpassed by reaching over 300,000 learners in 2022 alone thanks to the deployment of our digital immersive learning experience SolQuest.

THE GROWING IMPACT OF SOLQUEST

SolQuest, the Sonnedix solar immersive learning experience, was launched in 2021 in response to Covid-19 restrictions and was inspired by the increasing focus of Sonnedix on digitalisation.

An initiative of our Sustainability Academy, SolQuest transports learners to our vast 170MW Atacama site atop the Western Chilean Highlands where they are immersed in the inner workings of photovoltaic processes and can 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 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.

We were incredibly excited to see our unique immersive experience reach new learners in 2022 as we opened the exhibit in new locations, including the Phillip and Patricia Frost Museum of Science in Miami.

SolQuest is now exhibiting in five locations across the UK and USA, as well as being available in several languages through our website. These languages include English, Welsh, Spanish, Italian and French, with plans for further languages in the future. SolQuest impacted over 300,000 learners in 2022 alone and we are confident these important developments will allow us to further expand our impact and reach even more learners worldwide.

SCIENCE IN SCHOOLS

In 2022, Sonnedix funded three grants for the Science in Schools programme run by the Royal Institution, London.

Their Science in Schools programme brings one of their trained presenters to schools for the day, to deliver: two performances of a chosen science show to school groups, a continuous professional development session for the teachers and a twilight community show, where parents, carers and siblings can also attend out of school hours.

Sonnedix had the opportunity to provide three grants so that three schools, who ordinarily would be unable to afford the experience, can receive the science programme. Specifically, we funded an energy-specific programme called ‘We’ve got the power’, which explores the chemistry of fossil fuels, particularly the production of CO2; the history of our understanding of CO2’s effect on the climate; and the physics and chemistry of storing electricity.

Solar power also features as it focuses on what we could do instead to fulfil our energy needs in the future.

GIVE IT UP FOR UKRAINE

When the war in Ukraine broke out, Sonnedix came together to think about how we could best support Ukrainian people in their time of need. During this time, we supported three organisations in Poland who directly helped Ukrainian refugees: Fundacja Świętego Mikołaja, Ośrodek Rozwoju Edukacji and SOS Wioski Dziecięce.

Under Fundacja Świętego Mikołaja (The Saint Nicholas Foundation), two separate initiatives were supported. The first was an initiative to provide backpacks for child refugees, as part of the foundation’s focus on supporting children in their education and development. Sonnedix provided the funds for 1,500 backpacks filled with essentials and snacks, as well as books and other activities. The second initiative was supporting their care centres which provide educational breaks and relief for Ukrainian children. Our donation has funded 35 days of camps for children to receive psychological respite through therapeutic camps, travel excursions and even a two-week canoeing camp for aspiring canoeists. These camps will have a lasting impact on 62 Ukrainian children.

The second organisation we supported, Ośrodek Rozwoju Edukacji (the Centre for the Development of Education), received refugees from Ukraine and housed them at the training centre. Their most pressing need was the provision of food for the refugees. To meet this need, Sonnedix purchased an array of fresh groceries, weighing in at around 1,000kg, including: juice, fruits, vegetables, meats, sweets and dairy products, which were donated to the centre.

Finally, through the funds raised in the Sonnedix offices, support was provided to SOS Wioski Dziecięce (SOS Children’s Villages). This organisation works daily to support Ukrainian orphaned children and provides housing, foster care and psychological support to cope with the trauma of the war.

€51,000 Donated

1,500+ Children impacted

4 Initiatives supported 1,000kg Of food provided 35 Camp days funded

HELPING LOCAL COMMUNITIES

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.

STAKEHOLDER ENGAGEMENT

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.

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.

2022 PERFORMANCE

COMMUNITY MEETINGS GRIEVANCES

SUPPORTING THE FIREFIGHTERS OF POZO ALMONTE

In 2022, we continued the community engagement and investment strategy for Sonnedix’s largest solar plant, Sonnedix Atacama Solar, and updated it for the operational phase of the project.

Through this strategy, a new partnership was formed with the local fire brigade of Pozo Almonte, a desert commune in the immediate area of Atacama Solar, and capital of the province of Tamarugal.

As part of this collaboration, Sonnedix provided solar energy to power the fire brigade’s headquarters and the command centre, along with solar-powered lighting for a smaller fire station in the locality of La Tirana.

This will have a huge impact on the operations of the fire brigade, given the almost daily power cuts these localities were facing. Given the high risk of seismic activity that characterises the Chilean territory, these installations also provide energy security should an earthquake occur.

This donation forms just one of the many activities of Sonnedix Atacama’s community investment and engagement strategy, which has been ongoing throughout the project’s construction and, now, operation.

LOCAL JOB CREATION

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 and have incorporated these targets as contractual obligations in all new construction contracts.

MESETA DE LOS ANDES

In 2022, Sonnedix embraced the challenge of building the largest solar PV plant in the Valparaíso Region of Chile, the 160MWp Sonnedix Meseta de Los Andes project.

In line with our commitment to create positive impact in the local communities in which we operate and support local job creation, the Sonnedix Meseta de los Andes project had a notable impact on local employment during construction. An average of 52% of the workforce come from the local communities and 12% of the total workforce during peak construction were female.

In addition, we supported six local communities in Los Andes and Calle Larga during this period by installing solar-powered lighting to improve the safety and security of their public spaces including walking bridges, local roads, bus stops, communal sport centres and, office areas, among other communal places.

The local communities themselves were responsible for choosing and prioritising the projects they wanted to see developed. The Sonnedix Meseta de los Andes team then supported from a technical standpoint to ensure the pertinence and feasibility of the relevant designs, thus fostering collaboration between the project and local organisations.

INTRODUCTION TO GOVERNANCE

Strong corporate governance forms the foundation upon which the resilience and integrity of our business is built. It paves the way to long-term sustainable growth, whilst minimising risk, assuring compliance and instilling trust from all stakeholders. As a responsible renewable energy producer, we strive to ensure that our global operations are held to the highest ethics and governance standards.

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. To ensure the highest level of accountability, Sonnedix encourages all employees to report any violations of the Code or other standards and policies through our internal Whistleblowing and external Grievance management channels.

ANTI-BRIBERY AND CORRUPTION

All Sonnedix employees, suppliers and contractors are subject to the high compliance expectations held by our business. The Audit and Risk Committee has oversight responsibility to ensure these expectations are met, including ensuring compliance with our anti-corruption and bribery policies. Sonnedix has established 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.

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 any risk, misconduct, malpractice or wrongdoing concerns that individuals within Sonnedix may have, while also offering whistleblowers protection from victimisation, harassment or disciplinary proceedings. 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 tenets 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’ form 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.

2022 PERFORMANCE

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.

1 concern raised through our Whistleblowing Channel

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 below:

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 Chairman, Chief Executive Officer, 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.

• Consists of senior managers from multiple functions across the business.

Sonnedix ‘One Team’

• The Sonnedix One Team is 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

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

Axel Thiemann Director and Chief Executive Officer

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 2022 Board effectiveness survey, the members of the Board evaluated effectiveness against a number of topics, including risk management, strategy, performance and ESG initiatives.

Carlos Guinand Director and Executive Chairman

Karen J. Plessinger Independent

Non-Executive Director

Marko Josipovic Non-Executive Director

Susan E. Gonzalez Independent

Non-Executive Director

Petros Kitsos Independent

Non-Executive Director

Anders Dahl Independent Non-Executive Director

COMMITTEES

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

Audit and 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.

HR and 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.

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.

Key KPIs

All committees report regularly to the full Board with respect to their activities. 28% Women

4 Board

4/7 Directors independent

28 Committee Meetings in 2022

4.1yrs Median director tenure

CORPORATE GOVERNANCE

OUR SUSTAINABILITY GOVERNANCE

Strong sustainability governance structures and clear lines of accountability enable us to deliver on our Sustainability Strategy commitments and on our ESG Policies and Standards.

An overview of the ESG responsibilities within Sonnedix is displayed in the diagram. Performance evaluation for members of the Senior Leadership and Senior Membership teams is linked to achieving sustainability objectives ranging from health, safety and environment to diversity, equity, and inclusion.

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 an annual Sustainability Report. This report constitutes our third annual Sustainability Report and is signed off by the Chairman and the CEO and presented to the Board of Directors.

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 committee meetings.

Furthermore, to ensure that our Board and Senior Leadership Team remain vigilant around sustainability topics, in 2022, training was provided to the Leadership Team which covered ESG governance from the Board and Audit and Risk Committee, assurance process of ESG metrics and importance of overall ESG integration.

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.

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.

Ensures the implementation of the Sonnedix Sustainability Strategy. Confirms observance of the ESG Policies and Standards. Provides regular updates to the General Counsel and the Audit and Risk Committee.

ESG team is further supported by the ESG

Champions in each of our offices.

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.

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.

COMPLIANCE

All Sonnedix employees, suppliers and contractors are subject to the high compliance expectations held by our business.

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 below:

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

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.

Raising awareness of the compliance work carried out by the Legal and Compliance team throughout the business continued to be a priority in 2022, 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.

PERFORMANCE

192 new joiners completed the compliance onboarding training 2022

365 due diligence of third parties

105 parties analysed out of which 6 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. We also 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.

AUDITS OF OUR 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.

Over the course of 2022 we conducted 14 HSEC audits of our contractors which spanned across all Sonnedix’s jurisdictions and included projects at various stages of development. 17 major instances of non-compliance were identified out of which 15 were subsequently resolved through implementation of corrective actions. Two remain open and are currently being addressed.

RESPONSIBLE SUPPLY CHAIN AND PROCUREMENT

Our responsibility does not end with our direct operations but extends to our supply chain which 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.

In 2022 we continued to undertake screening of our suppliers and implement robust contractual requirements in the supply agreements, with a particular focus on human rights. Third-party quality assurance and ESG audits are further undertaken for all new factories where modules are being produced which include a site visit, document review and interviews with workers and/ or management as required. The full factory audits are performed once a year. Then, every time there is a new production of PV modules, a pre-preproduction factory audit is performed on site to check that corrective actions, if any, continue to be implemented.

MAJOR NONCONFORMITY FOUND AND ADDRESSED 1 10 *

SUPPLIERS QUALITY AND ESG AUDITS

GOVERNANCE 7

*Six organised directly by Sonnedix, four by our EPC contractors when they procured on our behalf

FORCED LABOUR IN RENEWABLES SUPPLY CHAINS

The renewables sector must grow exponentially to combat climate change and with that growth comes responsibility. The energy transition’s unprecedented demand for clean energy comes with an increased demand for raw material supply and elevated exposure for businesses in the renewables sector to the risk of encountering modern slavery in their supply chain.

The sector is facing increasing scrutiny in connection with human rights management within its complex value chain, most notably forced labour. As noted in our 2021 Sustainability Report, the solar sector in particular came into the spotlight as a consequence of allegations of forced labour in the solar supply chain, most notably in polysilicon production. At Sonnedix, we strive for the highest standard of human rights and stand firmly against the use of forced labour and any abuse of human rights, as clearly stated in our Social Policy and Standards.

Our approach to managing human rights in our supply chain is twofold:

OUTWARD LOOKING

Over the course of 2022 we continued to take an active part in solar power associations’ work around forced labour, to support the development of an industry-led solar supply chain transparency programme. This saw the launch of the Solar Stewardship Initiative in October 2022, of which we are one of the proud sponsors. Refer to the case study on the right for further information. Our ability to make change at 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.

INWARD LOOKING

Sonnedix has a publicly available Human Rights, Child and Forced Labour Policy and we disclose our approach to human rights in our annual Modern Slavery Statements. Furthermore, Sonnedix includes robust contractual provisions related to human rights in key equipment supply agreements and EPC contracts, and we vet our suppliers and contractors through our pre-qualification process (internally by the ESG team) and audit programmes (by independent third-party consultants). Over the course of 2022, 10 audits of our Tier 1 suppliers in Asian manufacturing hubs have been undertaken. One major instance of non-compliance related to a lack of human rights policies and systems by a supplier was highlighted by external audits and was subsequently closed prior to production taking place following the provision of required documentary evidence by the supplier. This included the provision of adequate supplier codes of conduct and confirmation of origin for polysilicon and other module components which confirmed sourcing for the audited batch of modules. The ESG team further assesses potential exposure to human rights risks for every new acquisition and advises the Investment Committee on the potential risk and mitigation. Additionally, the ESG team coordinates the internal cross-functional collaboration around this topic and reports quarterly to the relevant Board committees on the actions that Sonnedix is taking to mitigate human rights risks. A global email address (inform@sonnedix.com) is available to report on any grievances associated with our activity or the activities of our contractors, including human rights abuses.

SOLAR STEWARDSHIP INITIATIVE

Driving and achieving systematic change in complex supply chains and creating long-term positive social impact requires collaborative action with other key industry stakeholders. Since 2021, Sonnedix has sponsored Solar Power Europe and Solar Energy UK’s work in developing a solar-industry specific value chain assurance programme.

This collaboration between the solar associations and businesses saw the launch in 2022 of the Solar Stewardship Initiative (SSI). Designed to further enhance transparency and responsibility across the entire value chain, the SSI is endorsed by more than 50 solar organisations. With support from external consultants specialising in supply chains, the first step was to define and develop the set of standards that the industry should hold itself to, the SSI code of conduct and assurance protocol. These standards were piloted in Q4 2022 at several sites and will be open to public consultation in spring 2023 with the full roll-out of the assurance scheme expected by the end of 2023.

We think that these types of initiatives, alongside regulatory actions, are key to safeguarding the global solar supply chain from human rights abuses and thus Sonnedix is one of the proud sponsors of the SSI.

RISK MANAGEMENT AND RESILIENCE

RISK MANAGEMENT PROCESS

Enterprise Risk Management is an essential component of sustainable growth for the Sonnedix Group. Our focus on the identification, measurement, reporting and mitigation of risks through our risk management framework is increasingly important to Sonnedix as we grow and become more diversified and complex as a business.

We put risk assessment at the core of our leadership agenda and informed risk taking at the core of our decision making. The monitoring and management of enterprise risk remained prominently at the top of the agenda at the senior executive level throughout 2022. Our quarterly Risk Review Committee at the senior leadership level continued to further foster an enterprise-wide culture that supports appropriate risk awareness, 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.

The Risk Review Committee considers business critical risks within the following categories: tax and financial, insurance, compliance (ESG/HSE, ABC), legal, disputes, regulatory, supplier and cyber risks. The Committee also aims to anticipate key emerging risks and identify risks that are becoming more material and significant for our business. The outcomes of the review are then further presented and discussed at the Audit and Risk Committee, which assumes overall responsibility for risk oversight and management.

We recognise the connection between risk management and sustainability management. Our Enterprise Risk Management framework incorporates sustainability-related risks such as climate change, people and culture, regulatory and reputational, including community.

In 2022, we conducted our annual Enterprise 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 (defined as speed to identify and remediate the risk in question) and appetite. As a result, the risk dashboard has been updated for new risks and key performance indicators to be monitored going forward.

The Sonnedix Enterprise Risk Management framework continues to be effective in managing and reducing the exposure of our business and people to key risks. 2022 saw further focus and emphasis on climate-related risks which are further discussed in the Environment chapter.

Implementation of the proactive advocacy strategy

REGULATORY

Sonnedix established a dedicated regulatory engagement function in 2021. The aim was to ensure that the business is able to manage regulatory risks and the rapidly evolving regulatory landscape in the energy sector across all ten jurisdictions that Sonnedix operates in.

The department drives the definition of financial and commercial regulatory impacts in all Sonnedix jurisdictions that may materially impact current or future financial position, affect operations, cash flows, or the fundamental drivers of Sonnedix’s ability to deliver on the core commercial strategy in the long term – in either a positive or negative manner.

In addition to an internal Regulatory Change Management System, the Regulatory department oversees proactive strategic engagements externally at the institutional level, bringing forward Sonnedix’s values of commitment to the energy transition, and to sustainable and ethical practices with government departments and regulatory bodies, at national and supranational (EU) level.

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. 2022 was a year of unprecedented market and policy volatility, and the Regulatory department has contributed to manage the risk by setting up improved reporting and price assumption management.

In the course of 2022, the department has also led and delivered a series of Regulatory Roadshows, i.e. one of the key strategic initiatives to elevate regulatory engagement. These forums aim to establish high-profile institutional relationships, helping Sonnedix become a recognised and trusted advisor to policymakers to develop regulatory frameworks conducive to renewable energy investment and to maximise the local positive impact of our projects.

2023 is the year when regulatory engagement will be elevated further. Among other initiatives, a new workstream on institutional engagement at EU level has been established.

NEW TECHNOLOGY AND DIGITALISATION

At Sonnedix we recognise that digital transformation will be a key facilitator of the energy transition and the speed at which we embrace its transformative potential will determine our success.

The first step in our digital transformation journey was defining our IT and Digital strategy which was our focus throughout 2020 and 2021. In 2022 we turned our attention to strengthening our team and digitalising many of our processes which will further contribute to working more efficiently.

In November 2022, we announced a partnership with Palantir Technologies Inc., a leading developer of operating systems for the modern enterprise. The multi-million dollar partnership is for four years and clearly demonstrates our commitment to further capitalise on our vast renewables infrastructure and streamline operations for datadriven decision making. Another key element to create efficiencies and standardisation in our day-to-day operations is our new Asset Management platform which we also began implementing in 2022. We plan on continuing this implementation through 2023 by gradually adding more countries and functionalities.

In parallel to implementing new technologies, we have been working on creating a state-of-the-art IT infrastructure to ensure that our data and processes are adequately supported. Integral to this is the creation of a Sonnedix Cloud environment based on AWS services, adding another first-class partner to our IT portfolio.

The final piece has been evaluating the cybersecurity risk we are exposed to, both in our operating assets and in our offices, and to develop a mitigation plan to make our business more resilient to cyber-attacks, a problem that is becoming more and more important in the energy industry. As a result of increased focus on managing cybersecurity risk and employee awareness in 2022, 50 cybersecurity incidents were reported including device theft and loss and 62% of employees completed cybersecurity training.

LEVERAGING AI TO IMPROVE OUR ASSET PERFORMANCE

Monitoring and understanding plant performance can be an extremely difficult task, often requiring our on-the-ground teams to physically inspect equipment and validate assumptions made by remote operators analysing dashboards. This is often due to a lack of remote sensing capabilities with a connected view into performance data. Several of our assets rely on solar trackers to rotate our panels to match the direction of the sun and maximise production levels. Misaligned or vertically stuck trackers can lead to downtimes, underperformance or severe damage and revenue losses if left unattended for too long.

By using Palantir software to connect sensor and SCADA feeds together with satellite imagery processed by Computer Vision models, we have created an app that allows us to remotely identify tracker malfunction in real time and respond to solar trackers in need of maintenance.

With a digital representation of the assets, as well as various data streams (e.g. weather patterns, energy markets and existing maintenance), our team can also drill down into site-specific detection details and take action directly from the platform. Actions are then captured and written back in the app, thus fuelling continuous learning over time.

ABOUT THIS REPORT

Using the Global Reporting Initiative (GRI) Standards as a basis, this report provides an overview of our progress in 2022 against our ESG performance targets.

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 1: Foundation 2021 as summarised on the right.

CHANGES IN 2022

In 2022, following the establishment of an in-house operations and maintenance team, our reporting boundary for GHG emissions was expanded to include all of Sonnedix’s operational plants within scope 1 and 2, regardless of their operation by Sonnedix personnel or third-party contractors. In 2021, our operational control approach was limited to those plants which were directly operated by Sonnedix. Despite not having operational control, plants managed by our trusted Japanese development partner, Sonnedix Japan K.K., are included within scope 1 and 2 for completeness.

Similarly, as we consistently seek to improve the completeness of our scope 3 emissions data, we introduced several new scope 3 categories in 2022 related to transportation and distribution, fuel and energy related activities and purchased goods. Despite this, emissions related to PV module procurement remained our most material scope 3 emissions source. In case of further significant structural changes, such as acquisitions and divestments or changes in the value chain or definition of what constitutes the reporting of the value chain, these changes will be disclosed in subsequent reporting and their effect on the year-to-year comparability of the reported GHG emissions explained, as well as any adjustments needed in the baseline-year calculation.

We also intend to provide a supplement to the annual Sustainability Reports going forward, which will contain further information on definitions, boundaries and scope for some of the key performance indicators with a focus on any key performance indicators included in green or sustainable financing.

PRINCIPLES

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 have bi-directional, truthful and meaningful communications with them, through the channels described in this page:

Corporate website

Sonnedix Intranet and internal newsletters

Performance reviews –Employee satisfaction survey

People 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

Grievance mechanism

Compliance and ESG screening

Regular meetings and comms

Industry events and conferences

Sector associations

Press releases

Social media: LinkedIn, Twitter, YouTube

SHAREHOLDERS

Corporate website

Internal Whistleblowing Channel

Board of Directors –committee meetings

Regular updates though the Investment Asset Manager

Press releases

Social media: LinkedIn, Twitter, YouTube

GLOBAL PARTNERS

Corporate website

Sustainability Report

Regular meetings and comms

Sector associations

Press releases

Social media: LinkedIn, Twitter, YouTube

&

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

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

ABOUT SONNEDIX SUSTAINABILITY AT SONNEDIX 2022 AT

Corporate website

Sustainability Report

Compliance and ESG screening

Regular meetings and comms

Grievance mechanism

Industry events and conferences

Press releases

Social media: LinkedIn, Twitter, YouTube

Corporate website

Sustainability Report

Interviews and information requests

Marketing and comms department

General enquiries and grievance form (website

Press releases

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 2022 (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, 2021 is considered as our baseline year for the purposes of Sonnedix’s sustainability reporting. Where relevant, historic data has been 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 improved reliability of the data.

The information published in this document is supplemented by our ESG Policies and Standards available on our website: www.sonnedix.com

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, including the European Financial Reporting Advisory Group (EFRAG), we intend to refresh this assessment in 2023 and further delve into the notion of ‘double materiality’. This was initially planned for 2022, however, given that the EFRAG guidelines on standard setting are still at the draft stage, we postponed this assessment to next year to capture any further updates and allow for sufficient time to engage with relevant internal and external stakeholders on this topic.

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 Strategy

• 314 potential topics

MATERIALITY MATRIX: 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

CATEGORISATION

Creating clusters and identifying commonalities.

• 26 potentially 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

As a result of this process, we identified the following material topics, which were subsequently dealt with in this report:

MATERIALITY MATRIX

12 Responsible procurement/sustainable supply chain 14 Talent attraction and retention 15 Employee engagement and development 16 Diversity and inclusion 18 Transparency and public disclosure ESG topics 20 Corporate governance structure

New technologies, services and digitalisation

Legal and regulatory compliance

Corporate risk management

ANNEX 1 – GRI CONTENT WITH REFERENCE

GRI CONTENT INDEX

Statement of use Sonnedix has reported the information cited in this GRI content index for the period 1 January to 31 December 2022 with reference to the GRI Standards.

General Disclosures 2021

2-1 Organisational details

2-2 Entities included in the organisation’s sustainability reporting

2-3 Reporting period, frequency and contact point

2-4 Restatements of information

2-5 External assurance

2-6 Activities, value chain and other business relationships

2-7 Employees

2-8 Workers who are not employees

2-9 Governance structure and composition

2-10 Nomination and selection of the highest governance body

About Sonnedix

About Sonnedix

Unless otherwise stated, all the information in this report refers to the entities included within the consolidated financial statements.

2-3-a. Annual: 01/01/2022-31/12/2022

2-3-b. Aligned with financial reporting period

2-3-c. Publication date: 02/05/2023

2-3-d. Contact: esg@sonnedix.com

About this report Environment chapter

Data in this report has not been externally verified.

About Sonnedix

2-6-d. During the reporting period Sonnedix has expanded into wind and battery energy storage systems through the acquisition of new portfolios.

About Sonnedix Annex 2

2-7-e. Increase in number of employees is a result of the organic (new development projects and geographies) and inorganic (acquisitions) growth of the company.

External contractors: 19

No significant fluctuations in the number of workers who are not employees during the reporting period.

Corporate Governance Our Board

Corporate Governance Our Board

GRI STANDARD DISCLOSURE

General disclosures

GRI 2: General Disclosures 2021

2-11 Chair of the highest governance body

2-12 Role of the highest governance body in overseeing the management of impacts

2-13 Delegation of responsibility for managing impacts

2-14 Role of the highest governance body in sustainability reporting

2-15 Conflicts of interest

2-5 External assurance

2-16 Communication of critical concerns

2-17 Collective knowledge of the highest governance body

2-18 Evaluation of the performance of the highest governance body

2-19 Remuneration policies

2-20 Process to determine remuneration

2-21 Annual total compensation ratio

2-22 Statement on sustainable development strategy

LOCATION OR DIRECT RESPONSE

Corporate Governance Our Board

Our Sustainability Governance Compliance

Our Sustainability Governance

Our Sustainability Governance

Business Ethics Governance Policy and Standards

Data in this report has not been externally verified.

Business Ethics 1 critical concern related to discrimination (sexual harassment)

Our Sustainability Governance Board of Directors

The People Committee oversees the process for determining the remuneration for Executives. No Executive is involved in decisions regarding their own remuneration.

The People Committee consists of the Chairman, CEO, two non-executive directors (appointed by the Board). The Committee is advised by the Chief People Officer and receives independent advice from compensation consultants as required, from time to time. Further detail on remuneration policy is available upon request.

See 2-19 above.

For 2022 this ratio is 1:20. The analysis included all employees and full-time equivalent pay rates were used for part-time employees. The CEO was used as this is the highest paid position in the organisation. The ratio of the percentage increase in annual total compensation is 1:1. This ratio compares the increase in 2022 total compensation between the CEO and that of the median employee.

2-23 Policy commitments Letter from the CEO

Governance Policy and Standards

2-23-e. The commitments apply to all of the organisation’s activities and business relationships equally.

2-23-f. All new employees need to read and sign an acknowledgement with the ESG policies and standards and receive mandatory ESG training. The requirements are embedded in all contractor and supplier agreements.

ABOUT SONNEDIX SUSTAINABILITY AT SONNEDIX 2022 AT A GLANCE

ENVIRONMENT SOCIAL GOVERNANCE ABOUT THIS REPORT ANNEXES

GRI STANDARD

General disclosures

2-24 Embedding policy commitments

2-25 Processes to remediate negative impacts

2-26 Mechanisms for seeking advice and raising concerns

2-27 Compliance with laws and regulations

2-28 Membership associations

2-29 Approach to stakeholder engagement

2-30 Collective bargaining agreements

3-1 Process to determine material topics

3-2 List of material topics

3-3 Management of material topics

304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

304-2 Significant impacts of activities, products and services on biodiversity

LOCATION OR DIRECT RESPONSE

Human and Labour Rights

Responsible Supply Chain and Procurement

Human and Labour Rights

Stakeholder Engagement

Social Policy and Standards

Business Ethics

Stakeholder Engagement

Business Ethics

No significant instances of non-compliance with laws and regulations or associated fines during the current or previous reporting period.

SolarPower Europe UNEF (Unión Española Fotovoltaica)

Social Policy and Standards

47% of employees covered by collective bargaining agreements.

About this report

About this report

About this report

Environmental Policy and Standards Social Policy and Standards Governance Policy and Standards

Covered as part of the project related ESIA, this information is currently not centrally collected and managed.

Biodiversity

304-3 Habitats protected or restored

304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations

Covered as part of the project related ESIA, this information is currently not centrally collected and managed.

Covered as part of the project related ESIA, this information is currently not centrally collected and managed.

Resource

Resource

Resource

Resource

GRI STANDARD DISCLOSURE

403-5

403-7

401-1

401-3 Parental

401-3-a, b, d. 6 males, 8 females 401-3-c. 6 males, 9 females

100% males, 100% females

404-1

of

involving

of

peoples

the best of our knowledge, no confirmed incidents have been recorded through the channels the company has in place regarding violations of Indigenous people’s rights.

GRI STANDARD DISCLOSURE

OR DIRECT RESPONSE

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

Given the current size of the company, providing the data does not meet confidentiality, data validity and reliability criteria, as there are insufficient team members to split the data by employee category and country and maintain employee confidentiality. This information is to be disclosed as the company grows.

Once of the grievances that was received in 2022 alleged discriminatory behaviour by an employee of one of our construction contractors. Following the investigation, that employee was removed from the project and awareness raising training on discrimination was requested for contractor’s staff.

206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

3-3 Management of material topics

Annual sustainability reporting (this report).

ANNEX 2 – PEOPLE DATA

EMPLOYEE DATA

Employees

LEAVE DATA:

NEW EMPLOYEES IN 2022 BROKEN DOWN BY GENDER AND COUNTRY:

ANNEX 2 – PEOPLE DATA

COMPANY EMPLOYEE BENEFITS

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 access to 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:

o Private healthcare.

o Complementary pension.

o Income protection/life insurance.

o Extended paid parental leave.

ANNEX 3 – HSE DATA