Sustainability
In the Board of Directors’ report, above, there is a description of Magnora’s purpose and business model, the Company’s contribution to UN’s sustainable development goals, and how the company works with sustainability. In the following we provide more information regarding important stakeholders, material matters, goals, and activities.
| Stakeholder group | Main sustainability topics | Methods of engagement |
|---|---|---|
| Investors – current and potential | Sustainable business model Climate opportunities and risk ESG reporting incl. metrics Compliance and ethics | Annual General Meeting Quarterly reports and presentations Conferences, investor meetings |
| Employees | Purpose and business model Conduct and compliance Health and safety Diversity, equity and inclusion Working environment | Formal and informal internal dialogue Policies, routines and guiding documents Recruitment and retention Work organisation and execution |
| Business partners – incl. grid owners, suppliers, co-owners, power producers, customers | Ethics and business conduct Value chain and circularity Biodiversity/pollution Sustainable business model Security, integrity, resilience | Meetings and other contact in projects Regular dialogue with long-term partners |
| Land-owners | Biodiversity Impact on agricultural activities Pollution (waste, visual, sound) Local community impact | Dialogue related to projects Public meetings and consultations |
| Local communities | Local community impact incl. job creation Access to renewable energy Pollution (waste, visual, sound) Ethics and business conduct | Meetings and correspondence with municipalities, local representatives and community groups |
| The civil society – incl. citizens, NGOs, politicians and public opinion | Climate change, opportunities and risk Security of supply and affordability of energy Business conduct, transparency Nature preservation | Ad hoc contact per project and topic Public meeting attendance and contributions Company website updates |
| Authorities, regulators | Biodiversity Climate change mitigation efforts Sustainable business conduct Compliance Security and infrastructure | Public consultations Environmental impact assessments and data sharing Tenders and concessions Formal reporting |
In addition to the regular methods of engagement, Magnora annually reaches out to stakeholders in different groups to discuss which sustainability matters should be considered most material and how to follow up these matters.
Double materiality assessment
Magnora’s materiality assessment includes both Magnora’s impact on society and the environment, and which matters influence Magnora’s development and results. Several matters have been evaluated with regard to these two dimensions. Many of these have been regarded as less material due to Magnora not being a power producer but a developer of projects until ready-to-build. The data center operations also have a limited footprint as of today. The Group is not directly responsible for large purchases of equipment or the construction of installations for wind or solar power, battery energy storage or data centers. However, we are conscious about how choices in early stages may influence the project execution and impacts in later stages where the project is owned and governed by others than Magnora.
The Group’s materiality assessment from 2024 has in 2025 been reviewed by the Board, the senior management and employees in various countries, discussed with stakeholders. The assessment has been updated, but without significant changes. There is a common understanding of the mapping being subjective and approximate, of the dynamic and evolutionary nature the analysis, and of that conditions are changing continuously. The need for an update of the assessment will be evaluated yearly, or more frequently if necessary.
Magnora has the following double materiality matrix.
Compared to many other companies in the data center and renewable energy industries, Magnora is more of a project developer and less of an asset owner. Thus, Magnora is less involved in the construction and operations of assets. This is the reason for many of the topics on the left-hand side of the matrix not being more in the center or on the right-hand side.
Based on this mapping the following matters, further described below, are considered the most material: Climate change; Business conduct; Customers, end-users; Affected communities; Own workforce.
Most material matters: impacts, opportunities, risks, goals, activities
Climate change
Why material, impacts: Successful Magnora projects reduce CO2 emissions and equivalents compared to fossil sources of energy – thus having a high positive impact in fighting climate change. The matter is also of high importance to Magnora, as the attention on climate change fuels the support and demand for Magnora’s projects. Experienced climate change and natural disasters increase this attention, support and demand.
Opportunities and risks: More countries may want to speed up the energy transition and become more attractive markets for Magnora to develop wind, solar and battery projects. Climate risk for Magnora is considered to be low; the business is overall not significantly exposed to physical nor transitional climate risk, both rather bringing opportunities for Magnora to contribute and to grow. The risk is however that the urgency and attention on the cause may lead to overcrowding, fierce competition and low profit margins.
Goal: Consistently develop high-volumes quality projects with good progress into the ready-to-build phase, of which a large share continues into construction and power production/storage.
Activities: Continue to perform and improve Magnora’s business of project development.
Business ethics and conduct
Why material, impacts: Companies that fail to operate at a high ethical standard run the risk of both harming society and the environment, and jeopardising their business relations, contracts, permits, concessions, employee loyalty, reputation, trust and future market access, as well as risking a legal process. Although the probability of a breach is considered low, due to limited exposure and internal procedures and attention, the consequence could be very large – and so this matter is the one most far right in the materiality matrix.
Opportunities and risks: Magnora can continue being a positive force and build trust and long-term relationships based on its values integrity, velocity, and innovation. Magnora does not sign large construction contracts and therefore has limited exposure to corruption risks but has identified the following two risks: (a) Risk of kickbacks when selecting suppliers. (b) Risk of facilitation payments to obtain a license, permit, or concession.
Goal: To have a high standard of ethical business conduct, trusted relationships with all stakeholders and a solid reputation. To have no unlawful incidents.
Activities: Magnora has zero tolerance for corruption, bribery, money laundering and other behaviour in breach of laws and regulations. The Group has implemented a code of conduct, anti-corruption policy, and business ethics policy to manage the risk of corruption in Magnora and its subsidiaries. The kickback risk is managed through a rigid supplier qualification process, where a minimum of two people is involved in the selection process and the Group CFO is consulted in the selection process. The facilitation payment risk is managed through including more than one person in the process and through managing the process without outside service providers interacting with government personnel involved in the decision-making process. There is high attention on logging information in data rooms, documentation of due diligence of potential markets, projects and partners, and internal transparency. Further, relevant risks are included and discussed in the Group’s annual risk assessment involving all employees, and in the annual ethics and compliance training for all employees. Also, the supplier selection process screens new suppliers to identify red flags before suppliers are engaged by the Group. Magnora has a whistleblowing channel on its website.
Customers, end-users
Why material, impacts: Magnora contributes to more data center capacity and more clean, affordable energy to the benefit of customers such as enterprises and households. The demand for data centers and energy influences Magnora by generating sales opportunities and revenue.
Opportunities and risks: Customers’ needs mainly represent opportunities for Magnora, especially if enterprises and end-users emphasise low-emissions data centers and energy production. An opportunity for Magnora is to use its market insights and experience to select and develop projects well adapted to the market in different countries and regions. The main risk in this context is a possibly insufficient understanding of the market dynamics.
Goal: Magnora has a deep understanding of the market and its relevant geographical and technological segments, being applied to deliver high-demand projects and operations.
Activities: High level of attention and external contact regarding market development and outlook. Always thorough research of demand, customers, end-user needs, and other market characteristics when evaluating and developing markets and projects.
Affected communities
Why material, impacts: The projects Magnora develops are normally dependent on concessions and regulations, of which some are decided based on how local communities are affected by the project. In this way Magnora is also affected. The impact of the projects on local communities comes mainly in later phases than the one Magnora is involved in and can be: temporary or permanent physical consequences of construction work; local employment and sourcing; revenues to the municipality; more available power locally; change in physical environment or sound from power plant. Data centers also make sound, though on a moderate level.
Opportunities and risks: Although limited in the early phase the Group operates, there are opportunities to make considerate choices regarding the location of planned infrastructure and power production or storage. This can be achieved through dialogue with groups or representatives in relevant local communities. For Magnora the main risk is that a project is considered net negative for a community and that the necessary permissions are not granted by the municipality.
Goal: In all projects affecting local communities to have adequate due diligence, dialogue with main local stakeholders, and project and risk management.
Activities: High attention to choices early in the projects that have effects on local communities in later stages. Before and during projects, ensure adequate due diligence of impacts and dependencies on local communities, including dialogue with main local stakeholders.
Own workforce
Why material, impacts: Magnora is a people business, and the employees have a high impact on the Group’s results. The conduct of our employees shapes our activities and affects our stakeholders. Sound health, safety and security contribute to the employees’ well-being, loyalty and results.
Opportunities and risks: The main opportunity is to maintain and develop a working environment where employees are healthy, safe and motivated, attracting and retaining a skilled workforce, which is Magnora’s main competitive edge. One of the risks is that employees occasionally travel to locations with higher safety risk than they are familiar with, and all such travels are therefore managed by the local Magnora office or with assistance from local partners. Another risk is lack of inclusion, diversity and equal opportunities within the organisation. This risk is limited due to the Group’s limited size and high degree of internal transparency. The risk of injuries is relatively low as work is mainly in an office environment. This is nevertheless an important risk to pay attention to due to the potential consequences.
Goal: To attract, retain and develop a skilled workforce. A healthy and engaging working environment with equal opportunities and no discrimination. No injuries, and sick leave at less than 2 percent. To employ at least 33 percent of each gender.
Activities: The work environment, equal opportunity and non-discrimination are managed through maintaining a flat structure and an inclusive culture, as well as the annual performance process and salary review where the Board also is involved. The Board and management continue to focus on equal opportunities for both genders. One of three Board members at year-end was female. The Group strives to ensure that there is no discrimination due to gender, ethnicity, national origin, descent, race, religion or functional disability. The Group has implemented an equality and diversity policy and includes this topic in the annual ethics and compliance training for all employees to meet the objective of the Discrimination Act and of the Anti-discrimination and Accessibility Act. More importantly, the Group’s intention to increase diversity is reflected in the hiring of new personnel. Health, safety, security and environment are regulated through the HSSE policy and HSSE procedure, implemented by each managing director introducing the documents to his or her team, and through annual compliance training, as well as being part of the daily interaction in the Group including the portfolio companies. Serious work incidents or accidents resulting in personal injuries or damage to materials or equipment shall be reported internally. Further, there is an annual risk assessment involving all employees, where all relevant risks are discussed, and the governance framework subsequently updated and communicated internally and externally. Significant risk areas are also included in the annual ethics and compliance training for all employees. The Group does not have regular employee engagement surveys as the daily contact across the organisation is comprehensive and frequent and gives an impression of engagement and challenges, but such surveys will be considered going ahead.
Other sustainability information according to regulatory requirements
Certain risk areas related to sustainability are not described above, as they were not among the ones considered among the most material matters, but for which regulatory requirements for corporate responsibility calls for a description of how risk is managed. For these risk areas, Magnora manages risk as follows:
Human rights and working conditions for people outside the Group
This risk is discussed in the Board’s annual risk assessments and managed with processes and controls in the policy framework of the Group. The risk for breach of human rights and lack of decent working conditions is considered relatively low.
Magnora has limited use of sub-suppliers, which is more substantial in the construction phase of projects, normally occurring after the Group has sold the project. However, Magnora can be involved in choices influencing such matters at a later stage or supporting services in the construction phase. That could create exposure to the risk of suppliers potentially forcing its employees or contractors to perform work under forced situations and for unfairly low wages. As set out in the Group’s Modern Slavery Statement, processes are in place for managing human rights and labour conditions in the supply chain. This includes site visits in case suppliers are identified with potential exposure. The approach is the same across the Group and targets the selection, qualification, and follow-up of suppliers and partners invited to invest or work with the Group. Risks regarding human rights and working conditions are also a part of annual risk assessment involving all employees and of annual ethics and compliance training for all employees. The group has a Human Rights policy published on www.magnoraasa.com.
Case example: The Magnora-developed Red Sands BESS project in South Africa - including environmental assessments, energy security, societal effects, and reduced emissions
The Red Sands BESS (Battery Energy Storage System) project is developed by Magnora’s fully owned subsidiary in South Africa, African Green Ventures, and will deliver 153 MW / 612 MWh of storage capacity when in operation. The project was sold to the power producer Globeleq in 2023 and reached financial close in July 2025, becoming the largest standalone BESS project in Africa to do so. Construction commenced in 2025.
The project is developed based on an award as preferred bidder under a South African programme aimed at increasing generation capacity and supporting grid stability, including the procurement of BESS projects.
South Africa is undertaking a transition toward a more diversified energy mix to address ongoing challenges related to energy availability and system reliability. In response, the government has implemented public-private partnership programmes. These initiatives are designed to enhance grid performance, improve reliability, and strengthen long-term power security.
The project has included a comprehensive environmental assessment and permitting process, which is a prerequisite for all subsequent approvals in South Africa. Originally a solar PV project, it was amended to permit BESS instead in order to participate in the Battery Energy Storage Independent Power Producers Procurement Programme. The environmental authorisation for the BESS was granted in May 2023. An environmental assessment for the associated BESS gridline commenced in July 2024 and concluded in November 2024 upon issuance of the Environmental Authorisation. The water use authorisation for the associated gridline was obtained in October 2024.
The BESS and gridline were subject to a protected tree quantification study to support the permitting requirements for the management, pruning, and translocation of protected species. The protected tree permit was issued in February 2025. Conditional approval from the South African Civil Aviation Authority was received in June 2025. All other permits, including the rezoning permit under the Spatial Planning and Land Use Management Act were received prior to the project reaching Financial Close in July 2025.
Early-stage environmental planning in the project has been in line with South African environmental legislation. An Environmental Management Programme has been prepared to guide impact mitigation, monitoring, and compliance during construction and operational phases, supporting ongoing regulatory adherence. The appropriate placement of infrastructure within lower-sensitivity areas, and the avoidance of identified sensitive features where feasible, the impact significance after mitigation is acceptable.
Beyond its contribution to grid stability, the project is expected to deliver measurable socio-economic benefits. Approximately 250 employment opportunities will be created during the construction phase and 80 during operations. The project will also support skills development and local economic participation.
The Red Sands project enables renewable integration, contributing to the cumulative effect of existing solar PV, concentrated solar power, and power transmission infrastructure around the project area. The project reduces emissions that contribute to climate change, supports national and international climate goals, and reduces fossil fuel reliance. The project includes significant upgrades to national grid infrastructure and will help ease transmission and distribution congestion in the region.
Further work on sustainability and reporting
Relevant future development may include more detailed explanations of how efforts related to each material issue correspond to the Groups overall strategy, and more specific measures and quantitative targets. The scope of this work is adapted to Magnora’s business, impacts, organisational capacity and stakeholder expectations.