Sustainability risks
Eolus has conducted a double materiality assessment to identify the most material sustainability aspects as well as their associated risks and opportunities. Sustainability risks are also included in the annual risk analysis at the group level. The sustainability risks assessed to have the highest probability and the greatest impact are linked to our supply chain.
Supply Chain Risks
We are well aware of the social challenges linked to the manufacturing and construction of renewable energy assets. For example, industry-typical human rights risks exist in the extraction and processing of raw materials for the manufacture of wind turbines, solar panels and batteries.
The social risks identified mainly relates to:
- Unsafe working conditions
- Disrespect for indigenous peoples’ rights.
- Forced labor
- Child labor
The background to these risks is that the majority of the world’s extraction of metals required in the production of components and materials used in wind turbines, solar panels, and battery storage systems takes place, among other locations, in China and the Congo, where there is a known issue regarding these matters.
In addition to social risk in the value chain, Eolus has an impact on the climate and the environment in both its own operations and the value chain.
Impacts also occur in connection with the construction and operation of energy facilities and mainly relate to the right to a healthy and safe work environment.