First quarter 2025

The Group is exposed to various risks that are actively monitored and managed across all levels of the organisation. As of the end of first quarter 2025, there have been no material changes to the Group’s risk exposure or assessment compared to those outlined in the 2024 annual report.

• The Group is directly or indirectly exposed to electricity price volatility, inflation, interest rate movements, and currency fluctuations, all of which can influence investment returns and valuations. These risk exposures are managed through monitoring forecasts and adjusting strategy and internal economic and valuation models based on these data.
• The Group faces liquidity and capital access risks due to its increased investment in capital-intensive projects. This is managed through proactive financial planning, close coordination with financing partners, and a staged investment approach aligned with project progress and divestments.
• Changes in renewable energy policies, tax policies, or regulatory frameworks can potentially impact project timelines and profitability. The Group monitors changes and signals from governments about changes that may come, so it can make appropriate adjustments to its plans and forecasts. Changes in licensing requirements, local municipal veto rights, and concession approvals remain relevant and are mitigated through early stakeholder engagement and diversified geographic exposure.
• Increasing geopolitical tension with tariff wars and the wars in Ukraine and Gaza is increasing the level of uncertainty in several different markets, affecting supply chains and contributing to increased global economic volatility. Sudden geopolitical developments can negatively influence markets, impacting regulatory environments, trade agreements, and geopolitical stability in regions critical to the Group. The Group monitors changes and continuously updates its plans and forecasts to mitigate for this risk.
• Project-specific risks, such as delays in permitting, grid access, or securing land rights, continue to be closely monitored. Global supply chain constraints, including access to key components, may also impact timelines and costs. The Group mitigates these risks through rigorous due diligence and flexible development timelines, in addition to diversification through selecting projects across different geographic locations and segments of the renewable energy sector.
• Environmental concerns—including biodiversity impact and habitat protection—can influence permitting processes and project design. At the same time, climate change and the global energy transition support long-term demand for renewable energy, supporting the Group’s strategic positioning.
• The Group is exposed to fraud, corruption, and cyber related risks, and maintains strong internal control frameworks, including a code of conduct, anti-corruption policy, IT security, and supplier screening procedures. While exposure to fraud related risks is limited, the impacts can be detrimental, and the Group therefore remains focused on prevention through training, oversight, and reporting mechanisms.
• The Group’s performance relies on a highly specialised team. Loss of key personnel is an ongoing risk mitigated by succession planning and active recruitment efforts. Increased competition in the renewable sector is managed through high-quality project selection and execution, cost discipline, and strong market orientation.
• Cash flow from subsidiaries and associated companies depend on operational execution and project milestone achievement. Payment structures tied to project progress introduce timing risk. These are addressed through legal protections in customer agreements, active board participation, and diversified revenue streams.

Overall, the Group maintains a robust risk management framework and continues to focus on the most material uncertainties that could affect financial and operational performance. Risk exposures are reviewed regularly, and no new significant risks have been identified in first quarter 2025.