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 challenges 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.
Construction Phase Risks
Risks in connection with the construction of energy assets are mainly linked to a safe and healthy work environment and environmental damage, such as oil spills from machinery. Eolus has established minimum requirements for workplace health and safety that apply to all contractors who perform work on behalf of the company. These comprise a joint platform for safety measures. In addition to these, health and safety measures are aligned with the applicable laws in each country and local conditions.