Environmental, Social and Governance
Since Atlantica’s incorporation Sustainability has been one of our five Core Values. We view sustainable development as a powerful source of competitive advantage to generate economic value that also adds value for the society by addressing environmental and social challenges and safeguarding the transition to a low-carbon economy.
We own, invest and manage renewable energy, water desalination, efficient natural gas and other sustainable infrastructure assets, focused on North America, South America and EMEA. We intend to expand our business, maintaining North America, South America and Europe as our core geographies.
The earth's climate is now changing faster than, according to the 2018 U.S Fourth National Climate Assessment Report (the U.S. Global Change Research Program). The report indicates that climate change impacts are intensifying, and the severity of future impacts will depend on the efforts to reduce carbon emissions and how fast adaptations are being implemented. On a global basis, the World Economic Forum’s 2019 Global Risk Report identified extreme weather and failure to mitigate climate change as the two largest risks facing the global economy. We expect to continue delivering accretive growth by investing in by in low-carbon footprint assets, which undoubtedly will help us to achieve our sustainability targets and achieve further CO2 reduction; in recent months we have announced approximately $330 million investments in similar assets. We believe that we can create more value over time by investing in assets that reduce greenhouse gas emissions and contribute to mitigate the impact of climate change, including energy efficiency and renewable energy assets.
Contributing to mitigate climate change is core in our strategy. We invest in, and manage, a portfolio of assets that reduce carbon emissions. In 2018 we helped to avoid up to 5 million tons of CO2 compared with a 100% fossil fuel-based generation plant.
Investing in sustainable technologies and assets is only one part of our strategy. Managing those assets in a sustainable way is key to create value long term. In that regard, we have launched a number of initiatives to ensure that we manage efficiently, effectively and sustainably all key areas of our Company:
- Atlantica has been rated by Sustainalytics in December 2018 on its Environment, Social and Governance factors as the top company within renewables, second within the broader utilities sector and in the top 3% in the global ratings universe. Read the summary report here.
- In June 2019, we obtained our first ESG-linked financial guarantee line with a limit of approximately $39 million. The cost is linked to our environmental, social and governance performance under a leading sustainable rating agency (Sustainalytics). The green guarantees will be exclusively used for renewable assets. This agreement underlines our leading position in ESG.
- As part of Altantica’s commitment to sustainability, in January 2018, Atlantica joined the United Nations Global Compact (the “UNGC”) the world’s largest corporate sustainability initiative. Atlantica reaffirms its support to the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption. In this report, which is publicly available to all our stakeholders, we describe our actions to integrate the Global Compact and its principles into our business strategy, culture and daily operations.
- Health and Safety is our first priority and we want our employees, partners and contractors to apply the strongest standards to ensure safe and sustainable operations. We are firmly committed to maintain a zero-accident culture and to develop new initiatives. In 2018 we improved in all the main metrics. Loss Time Incident Rate decreased by 44% and remains well below sector average in all our geographies. Two of our assets reached 1,500 days without loss time injury accidents in 2018. With this, seven of our assets have more than 1,500 days without loss time injury accidents and the average ratio for the entire portfolio is 849 days. As the only acceptable objective is no accidents of any kind, we will continue devoting all efforts necessary to continue improving.
- We maintain a strong Ethics and Corporate Governance culture. In 2018 we updated our compliance documents. Our Code of Conduct and Suppliers Code of Conduct guarantee respect of Human Rights, Labour Rights and Anti-corruption policies.
- Atlantica has been ranked among the Clean 200TM list which ranks the largest publicly listed companies that are leading the way with solutions for the transition to a clean energy future.
- We follow the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”).