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The board of directors addresses climate-related topics when developing climate targets, the sustainability report, the annual strategy review and the annual risk management report, among other things.

The board of directors takes climate-related topics into account in the corporate strategy, among other things. The board of directors monitors progress in particular when it comes to the preparation of the sustainability report, which involves a delegation of two members of the board, and also when it comes to the annual strategy review.

The preparation of the sustainability report, the functional sustainability strategy and the annual risk management report has been delegated to management. Reports to the board of directors are made regularly and in preparation for the annual general meeting.

Repower identifies climate-related risks and opportunities for the 2030 (short term), 2050 (medium term) and 2080 (long term) time horizons. The Climate change section provides an overview of the material risks for the Repower Group. The climate-related opportunities for Repower lie in more efficient and cost-effective energy generation plants, the increasing attractiveness of renewables for private households owing to changing customer preferences, the increased profitability of renewables, and the higher pricing of greenhouse gas emissions.

The physical risks associated with climate change mainly affect energy generation and distribution (see climate change). There are opportunities stemming from the increased demand for renewables.

A decline in water and wind availability could lead to a loss of revenue in the future. Such situations may result in the external purchase of electricity at unfavourable conditions to cover liabilities incurred. In some circumstances, the higher valuation of liabilities may lead to lower margins, the impairment of generation assets and more restricted access to capital.

The Repower Group takes climate-related risks and opportunities into account in its decisionmaking processes to be able to respond proactively to the challenges and opportunities of climate change. This includes diversifying the energy generation portfolio to include a higher share of renewables. Repower is also looking into which existing plants can be decarbonised. Climate-related developments are also taken into account when deciding on investments in new and existing plants and adaptations of the technologies deployed.

Medium-term planning involves planning the next five years on a bottom-up basis. This covers the main risks and opportunities and their financial implications for Repower. The bottom-up approach is used to show which parts of the strategy are already being incorporated.

Repower is reducing the emission intensity of its energy generation activities by increasing its use of renewables. The expansion of renewable energies helps to minimise transition risks associated with regulatory changes such as rising CO2 prices. By diversifying its energy portfolio both geographically and technologically in favour of low-emission and renewable energy sources, Repower is able to remain resilient in the face of changing market conditions and increasing decarbonisation requirements. The geographic spread of its assets enables the company to mitigate the effects of physical risks. This broad diversification makes it possible to absorb local weather extremes and reduce risks. This way Repower not only reduces dependence on fossil fuels, but also actively exploits opportunities in the growing renewables market.

The Repower Group has a dynamic approach to strategic planning to enable it to respond flexibly to changing climate-related risks and opportunities. For example, increasing the flexibility of the grid infrastructure by means of digital control and automation will be an important part of efforts to adapt. Smart grid technologies are to be increasingly deployed to respond flexibly to changing conditions and ensure grid stability, even as renewables are increasingly fed into the grid.

The Repower Group identified and assessed its climate-related risks and opportunities in 2024. In identifying and assessing climate-related risks, the Repower Group considered transition risks and physical risks in accordance with the TCFD. In addition to this, it did benchmarking to analyse climate-related risks at nine Swiss and Italian energy companies. The subsequent risk and opportunity assessment was carried out by the core sustainability group, which consisted of representatives from Repower Switzerland and Repower Italy. The risks and opportunities were assessed in terms of their impact and probability. On this basis, Repower was able to identify the risks and opportunities that are actually relevant. These were precisely defined and supplemented by detailed descriptions showing how they influence Repower’s business activities.

In a further step, Repower worked with an external company, CLIMADA Technologies, to do an asset-specific assessment of the physical climate-related risks. The potential extent of the defined risks under the two Representative Concentration Pathways (RPC) scenarios of 4.5 and 8.5 was considered for the years 2030, 2050 and 2080.

The risks were verified internally with experts from the power generation, grid and trading divisions. The risk management function was involved in the process from the outset.

See point a

Climate change

Introduction

Climate change

Climate change

Annex

Climate change

Climate targets

Repower has set 2022 as the base year for its climate targets.

Target intensity for power generation (Scope 1): Repower has defined the following intensity target for power generation: net zero by 2050 and a 15 per cent reduction in emission intensity by 2035.

The intensity target for electricity generation indicates the amount of CO₂ emitted per kilowatt hour (kWh) of electricity generated. Repower uses the operational control approach. The interim target for 2035 is to be achieved by expanding renewables.

Absolute target for other Scope 1 and 2 emissions: The following absolute target has been defined for Repower’s remaining Scope 1 and Scope 2 emissions: net zero by 2050 and a 42 per cent reduction in absolute emissions by 2030.

The remaining Scope 1 emissions include emissions from stationary combustion sources, fuel consumption of vehicles and fugitive emissions. The remaining Scope 2 emissions comprise the company’s own electricity consumption on the basis of market figures. The interim target for 2030 is to be achieved in particular by using renewable electricity to meet the company’s own electricity requirements and converting the vehicle fleet to electric vehicles.