One green step ahead – together

At Verdo, we are very driven by a strong common purpose. We have a clear aim of contributing to positive change in society. It is also our belief that we, as a cooperative society and a supplier of critical energy infrastructure, have a special duty to take a responsible and sustainable approach to everything we do. Put briefly: We have a great social responsibility and we take this very seriously.

We have a targeted focus on our social responsibility, as part of our efforts to grow our business sustainably. By ‘sustainable’, we mean that at Verdo we strive to use our resources in a way that will not burden future generations – environmentally, socially or economically.

There are many ways companies can meet their responsibilities to create a greener and more sustainable world. At Verdo, we have committed to doing so through what we call our social contract. We view our social contract as our birth certificate. It must serve to continually remind us to deliver the extra long-term dimension that helps make a difference to our customers, employees, local communities and partners.

The social contract therefore has a broad aim, covering efforts in relation to both climate and the environment, and social and economic sustainability. However, as a company that emerged from society’s need for energy, and which provides citizens with security and welfare through the supply of drinking water, power and heating, our primary focus is on sustainability within the green transition.

This is reflected in our ‘A green step ahead – together’ vision. We work hard every day to reduce our greenhouse gas (CO2 ) emissions, and make a sustainable imprint on the future. Our core business is the operation and development of sustainable critical infrastructure based on heating, water and electricity. We also develop green energy plants for industry and utilities, in Denmark and abroad, and we are one of Europe’s leading suppliers of sustainable, certified biomass for industry and district heating plants. We are also one of Denmark’s largest players handling the operation and maintenance of street lighting, and we supply charging stations for electric and plug-in hybrid vehicles. It is therefore our goal to be among the energy companies that are leading the way in the green area.

Verdo’s business model

Resources

• People

• Knowledge

• Raw materials

• Renewable energy

• Capital

Activities

Development and installation:

Energy plants

• Street lighting

• Traffic systems

• Electrical installation

Operation and maintenance:

• District heating

• Drinking water

Energy plants

• Street lighting

• Fibre-optic networks Service:

Energy plants

• Electrical installation

Verdo adjusted the structure of the Group’s parent company, Verdo S/I, from a self-governing institution to a cooperative society with limited liability (a.m.b.a) in 2021. This was driven by a desire to harmonise the corporate structure with the way the company is managed in practice. As a cooperative society, Verdo is owned by the consumers and is thus the common property of the local community. Our business model is based on us transforming resources into something of value. This involves a significant reciprocal impact between Verdo and the outside world. We are therefore striving to

Trade:

• Electricity sales

• Biomass

• District heating

• Technical carbon

Coal

Value creation

Future-proof heating, drinking water and electricity

• Green transition

Greater digitalisation

• Robust infrastructure

Contributing to a sustainable society – locally and nationally

• Danish and international workplaces with a focus on skills growth

• Tax payments in Denmark reduce our own CO2 emissions in energy production, but also to reduce emissions from both our commercial and private customers.

Verdo aims to help meet and promote the UN’s 2030 Sustainable Development Goals. We are in a position where we can positively influence the realisation of the global goals, and the goals therefore serve as a guide for Verdo’s sustainability goals. In our CSR work in relation to the climate and environment, we work specifically with global goal #6 – clean water and sanitation, #7 – affordable and clean energy, and #13 – climate action.

Based on our vision and mission, we also have a strategic focus on global goal #9 – industry, innovation and infrastructure, #11 – sustainable cities and communities, and #17 – partnerships for the goals.

This section reports on significant risks of adverse impacts on the climate, environment and social factors Verdo’s business activities are deemed to have, and how we manage these risks, pursuant to section 99 a(3) of the Danish Financial Statements Act.