Cloudberry Clean Energy : TCFD Report 2022

The TCFD recommendations

Cloudberry Clean Energy ASA

2 Cloudberry Clean Energy ASA The TCFD Recommendations

Content

The TCFD Recommendations	3
TCFD Context Index	4
Governance	5
Strategy	6
Risk management	14
Metrics and targets	15
Appendix	17

Cloudberry Clean Energy ASA

3

The TCFD Recommendations

The TCFD Recommendations

There is a growing demand for standardized, climate-related risk disclosure in the financial sector, and creditors and investors are increasingly asking for reporting that is consistent, comparable, and clear. The Task Force on Climate-Related Financial Disclosure (TCFD) developed recommendations to enhance market transparency and stability and encourages standardized reporting of financially material climate-related risks and opportunities to provide investors, lenders, and insurers with comparability when assessing and pricing companies.

The TCFD recommendations are grouped into four areas of disclosure that represent core elements of how organizations operate: governance, strategy, risk management, and metrics and targets. Moreover, the framework separates recommended disclosures into three main categories: risks related to the transition to a lower-carbon economy, risks related to the physical impacts

of climate change, and climate-related opportunities. The TCFD has also incorporated potential financial impact as an integral part of its disclosure recommendations.

Core Elements of Recommended Climate-

Related Financial Disclosures

Governance

Governance

The organization's governance around climate- related risks and opportunities

Strategy

Strategy

The actual and potential impacts of climate-related risks and opportunities on the organization's business, strategy, and financial planning

Risk Management

The processes used by the organization to identify, assess, and manage climate-related

Metrics and Targets

The metrics and targets used to assess and manage relevant climate-related risks and opportunities

Risk

Management

Metrics and

targets

4 Cloudberry Clean Energy ASA TCFD Context Index

TCFD Context Index

Governance	Strategy
Disclose the	Disclose the actual and
organization's	potential impacts of
governance around	climate-related risks
climate-related risks and	and opportunities on the
opportunities.	organization's business,
	strategy, and financial
	planning where such
	information is material.
Recommended disclosures

Risk Management

Disclose how the organization identifies, assesses, and manages climate-related risks.

Metrics and Targets

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.

1. Describe the board's oversight of climate- related risks and opportunities
2. Describe the management's role in assessing and managing climate-related risks and opportunities

1. Describe the climate- related risks and opportunities the organization has identified over the short, medium and long term.
2. Describe the impact of climate-related risks and opportunities on the organization's business, strategy, and financial planning.

1. Describe the organization's process for identifying and assessing climate-related risks.
2. Describe the organization's processes for managing climate- related risks.

a) Disclose the metrics used

by the organization to

assess climate-related

risks and opportunities

in line with its strategy

and risk management

process.

b) Disclose Scope 1, Scope

2, and, if appropriate,

Scope 3 greenhouse gas

(GHG) emissions, and the

related risks.

1. Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario

1. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management.

c) Describe the targets used

by the organization to

manage climate-related

risks and opportunities

and performance against

targets.

In the changing world we are living in, with rising temperatures, climate-related policy changes, and emerging technologies, both risks and opportunities are becoming more prominent. Failure to limit global warming to 1.5 °C may cause severe changes in the world`s climate, with subsequent dramatic consequences for the planet. The effect of climate change also has consequences for our operating assets that we need to consider in our business planning.

Cloudberry Clean Energy ASA

5

The TCFD Recommendations

Governance

Disclose the company's governance around climate-related risks and opportunities.

Figure 1: Board-level oversight

General Meeting

Nomination

Committee

Board of Directors

ESG		Audit		Compensation
Committee		Committee		Committee

Climate-related issues are of high importance to Cloudberry and are to a certain extent integrated into Cloudberry`s overall business strategy. Prior to a project investment decision, relevant risks are assessed by the Management and later presented to the Board of Directors where the climate-related risks are discussed and evaluated. The overall responsibility thus sits within the Board of Directors. In addition, Cloudberry`s overall risk management

and all risks perceived by the company and its businesses are subject to a quarterly review by the Audit Committee and an annual thorough review by the Board. The climate-related risks will in addition be assessed by the ESG committe and discussed along with all other relevant risks. The Board of Directors and its work is also described in the company`s Corporate Governance Report.

Figure 2: Executive Management oversight

Chief Executive

Officer

Finance

ESG / Organization /

Compliance

Development		Production		Operations (Captiva)

The Executive Management team assesses and manages climate-related risks and opportunities, with the highest-level of responsibility lying with the Chief Executive Officer and the Chief Compliance and Organization Officer. The manager of the

individual business segment is responsible assessing relevant risks and for implementing risk mitigating actions. The Executive Management team follows up quartarly on key mitigation plans and reports in annually to the Board of Directors.