Environmental Policy

At Atlantica, we are determined to be part of the solution to climate change as a key pillar of our long-term strategy:

✓ We are committed to investing in renewable energy assets, as well as in storage, transmission infrastructure and natural gas, as enablers of the energy transition.

✓ We are committed to gradually reducing the environmental impacts of all our activities.

Climate change mitigation is core to our strategy. We invest in and manage a sustainable portfolio of assets that reduce carbon emissions. We have therefore set targets to:

  1. Reduce our Scope 1 and 2 greenhouse gas (GHG) emissions per KWh of energy generated (gCO2/kWh) by 70% by 2035 from a 2020 base year1.
  2. Reduce our Scope 3 GHG emissions per KWh of energy generated (gCO2/kWh) by 70% by 2035 from a 2020 base year.
  3. Achieve Net Zero GHG emissions by 2040.
  4. Reduce our non-GHG emissions per KWh of energy generated (gCO2/kWh) by 50% by 2035 from a 2020 base year.
  5. Maintain over 85% of our adjusted EBITDA generated from low-carbon footprint assets, including renewable energy, storage, transmission infrastructure and water assets.

Through our Environmental Policy, we seek to:

  • Protect the environment and prevent pollution in the areas we operate in and integrate environmental protection in the decision-making processes.
  • Comply with environmental laws, regulations, permit requirements and internal policies in each of the markets we operate in.
  • Reduce our GHG emissions over time and disclose our GHG reduction initiatives, targets, deadlines, monitoring and periodic audits.
  • Reduce our hazardous and non-hazardous waste, non-GHG air emissions, water withdrawal and water consumption in relative terms (e.g., per kWh) over time.
  • Perform internal audits of our assets aimed at reviewing compliance with international and in-house best practices and promoting constant improvement. Disclose best practices when appropriate.
  • Maintain and periodically review our environmental management system.
  • Maintain the necessary indicators to obtain reliable and quantifiable information to measure and monitor the environmental performance and impacts of our activities and define and implement action plans to reduce this impact in relation with:
    • Emissions: calculating and monitoring our GHG (i.e., Scopes 1, 2 and 3) and non-GHG emissions.
    • Water: calculating and monitoring our water withdrawal and consumption by promoting rational and sustainable use.
    • Waste: calculating and monitoring our waste and implementing initiatives aimed at minimization and improvement of waste management.
  • Appropriately manage environmental risks and opportunities. We have developed a risk analysis methodology based on ISO 31000 and common market practices. We therefore seek to maintain a robust risk analysis process that contains:
    • Risk identification: identify the causes that may turn into a risk situation.
    • Risk assessment: evaluate the risk including an analysis of its frequency and impact.
    • Risk management plan: manage the risk to mitigate its potential effects.
  • Provide environmental-related training for our employees to understand Atlantica’s environmental activities and impacts.
  • Consult and collaborate with environmental, third-party oriented stakeholders when appropriate and foster discussions and partnerships on environmental issues with public and private entities.
  • Work with third parties who operate under principles that are similar to those set in this Environmental Policy and who promote compliance to it by their own suppliers and vendors. Work with our suppliers on improving their environmental performance.
  • Select suppliers taking into consideration the environmental impact of their product or service.
  • Report key environmental KPIs, issues and measures taken towards environmental conservation in the areas we operate in.
  • Foster using natural resources and energy more efficiently.
  • Continue to increase environmental awareness.

This Policy applies to the Company and each of its subsidiaries, including all directors, officers and employees, and in all geographic locations, regardless of the local practices. In those assets and joint ventures where Atlantica does not have operational control, the Company will do everything it reasonably can to encourage joint ventures and partners follow similar principles.

Atlantica’s senior management are responsible for ensuring and monitoring the implementation of this Policy.

The Board of Directors of Atlantica is responsible for the oversight of environmental risks and opportunities. Management reports to the Board, at least twice a year, on the main environmental indicators.

Non-compliance with this Policy, including concerns, may be reported anonymously or otherwise to the Company’s Compliance Committee at or through our Whistleblowing Channel available on our website (www.atlantica.com).

The Company guarantees confidentiality and no retaliation of any kind against anyone who reports an issue. These principles may be suspended if a person does not act in good faith or if it was otherwise required under the law.

This Policy was approved by the Board of Directors in May 2020 and was last amended in September 2023.

1The target boundary includes steam generation.