Bergen, October 23. 2023
Småkraft has once again been named industry leader in GRESB’s annual review of companies’ ESG reporting. With 5 out of 5 stars, and an outstanding 98 points out of a possible 100, Småkraft scores best among all comparable hydropower producers internationally and among the top ten percent of all infrastructure companies overall.
– Småkraft is about creating long-term value, in harmony with the climate, nature, and local communities. We set an early goal to become ‘best in class’ in sustainability and have systematically worked to include climate, environmental, and social considerations in everything we do. The bar is constantly being raised, and we face increasing demands and expectations. Therefore, it is particularly gratifying to see that we succeed in delivering at a top level year after year, says Terje Vedeler, CEO of Småkraft AS.
Småkraft creates value collaboratively and leads the way for the rest of the renewable energy industry
Småkraft now operates 225 small hydropower plants across Norway and Sweden, generating renewable energy in harmony with nature and local communities. In Norway, the company collaborates with over 900 local landowners who own the rivers. Småkraft’s collaboration model provided landowners with direct payments exceeding NOK 180 million in 2022. Total direct ripple effects in Norwegian municipalities amounted to NOK 754 million.
– Producing renewable energy is an important societal mission. We must achieve this in harmony with nature and local communities. We will continuously strive to find more sustainable solutions, but also to report as openly as possible on how we work and the results of our efforts. The most gratifying aspect of this year’s award is seeing that the standard across the entire industry has significantly improved. We will continue to lead the way, concludes Vedeler.
Hydropower is the form of energy production with the lowest greenhouse gas emissions over the entire lifespan of the power plant, compared to most other forms of power generation. In recent years, Småkraft has strengthened its efforts to reduce environmental impact and protect biodiversity, with measures for fish conservation and the restoration of nature after development.
Sustainability is becoming increasingly important for investors. More companies worldwide are setting net-zero emissions targets by 2050, but sustainability encompasses far more than greenhouse gas emissions. New requirements for sustainability reporting will make it easier for investors and stakeholders to compare and monitor companies’ work on climate, environmental, and social issues. Småkraft AS has participated in the GRESB assessment since 2017, and by 2018, it was already performing well above the industry average. Even with increased demands and a continuously higher standard among companies in general, Småkraft has topped the list of hydropower producers since 2020. This year’s score was 98 out of 100, with 60 out of 60 points in ‘sustainability performance’.
GRESB’s annual sustainability analysis ranks infrastructure companies worldwide
The Global Real Estate Sustainability Benchmark (GRESB) conducts a major annual analysis of various companies’ work on sustainability and corporate governance. The review is based on factors material to investors and builds on international standards for ESG measurement and reporting. Over 680 infrastructure companies worldwide have been evaluated and ranked, including 29 Norwegian companies.
The other Norwegian renewable energy producers in the GRESB survey are Midtfjellet Vindkraft, Nordic Power, and Tinfos. Additionally, energy companies Akershus Energi Varme, Hafslund Oslo Celsio, Nydalen Energi, Oslofjorden Varme, and SAREN Energi are included. Several Norwegian fund managers and real estate companies are also covered by other parts of the GRESB ranking.
You can read the full sustainability report for 2022 here
