ORMAT TECHNOLOGIES INC.
SUSTAINABILITY
REPORT 2020
Our Environmental, Social
and Governance Performance Highlights
Steamboat geothermal complex, NV,
U.S., 84 MW
TABLE OF CONTENTS
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I. A MESSAGE FOR OUR STAKEHOLDERS ………………………………………………………………………………………………………………….. |
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LETTER FROM THE CEO…………………………………………………………………………………………………………………………………………………………….. |
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II.EXECUTIVE SUMMARY …………………………………………………………………………………………………………………………………………….. |
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ORMAT AT A GLANCE………………………………………………………………………………………………………………………………………………………………….. |
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III.ORMAT IS A STATION TO A NET ZERO FUTURE …………………………………………………………………………………………………… |
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AN ORGANIZATION SHAPED BY VALUES…………………………………………………………………………………………………………………………. |
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KNOWING OUR IMPACTS – STAKEHOLDER ENGAGEMENT STRATEGY……………………………………………………………………….. |
28 |
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WHAT WE LEARNED FROM OUR STAKEHOLDER ENGAGEMENT…………………………………………………………………………………… |
28 |
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OUR APPROACH TO STAKEHOLDER ENGAGEMENT…………………………………………………………………………………………………………… |
28 |
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OUR STAKEHOLDERS’ KEY INTERESTS AND CONCERNS………………………………………………………………………………………………….. |
28 |
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STAKEHOLDER GROUPS ENGAGED BY THE ORGANIZATION………………………………………………………………………………………….. |
29 |
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OUR SUSTAINABILITY STRATEGY – DEFINING WHAT’S MATERIAL TO ORMAT…………………………………………………………… |
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RESULTS OF THE MATERIALITY SURVEYS……………………………………………………………………………………………………………………………… |
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OUR STRATEGIC COMMITMENTS AND SUSTAINABILITY PLAN…………………………………………………………………………………….. |
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EXTERNAL INITIATIVES & MEMBERSHIPS OF ASSOCIATION……………………………………………………………………………………………. |
34 |
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ENVIRONMENTAL…………………………………………………………………………………………………………………………………………………………………………… |
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LOCAL COMMUNITIES AND INDIGENOUS PEOPLES……………………………………………………………………………………………………………. |
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ORMAT’S MEMBERSHIPS OF ASSOCIATION…………………………………………………………………………………………………………………….. |
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ORMAT AND THE SUSTAINABLE DEVELOPMENT GOALS (SDGS)………………………………………………………………………………… |
35 |
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ORMAT: WHAT WE DO………………………………………………………………………………………………………………………………………………………… |
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OUR HISTORY AND KEY EXPERIENCE……………………………………………………………………………………………………………………………………… |
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ABOUT OUR BUSINESS…………………………………………………………………………………………………………………………………………………………………. |
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OUR BUSINESS STRATEGY…………………………………………………………………………………………………………………………………………………………… |
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RISK MANAGEMENT STRATEGY AND CLIMATE CHANGE-RELATED RISKS…………………………………………………………………. |
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OUR RISK MANAGEMENT APPROACH………………………………………………………………………………………………………………………………………. |
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RELEVANT RISKS……………………………………………………………………………………………………………………………………………………………………………… |
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IV.OUR BUSINESS, FINANCIAL PERFORMANCE AND ECONOMIC IMPACTS …………………………………………………………… |
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MANAGEMENT OF ECONOMICS AND FINANCE AT ORMAT…………………………………………………………………………………………… |
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LOANS AND FINANCIAL ASSISTANCE RECEIVED FROM GOVERNMENTS AND DEVELOPMENT BANKS……………. |
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ORMAT’S APPROACH TO TAX………………………………………………………………………………………………………………………………………………………. |
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DEVELOPING RENEWABLE . ENERGY AND CRITICAL INFRASTRUCTURE………………………………………………………………….. |
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ENVIRONMENTAL REGULATIONS SUPPORTING OUR BUSINESS……………………………………………………………………………………… |
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ORMAT’S SUPPLY CHAIN & PROCUREMENT PRACTICES……………………………………………………………………………………………….. |
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PROVIDING EXCELLENT AND RELIABLE CUSTOMER SERVICE……………………………………………………………………………………… |
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DATA PRIVACY AND CYBERSECURITY FOR OUR STAKEHOLDERS……………………………………………………………………………….. |
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V.GENERATING ENVIRONMENTAL VALUE AND MEASURING OUR IMPACTS………………………………………………………….. |
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MITIGATING CLIMATE CHANGE RISKS AND WORKING TO REALIZE NEW OPPORTUNITIES……………………………………. |
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EMISSIONS FROM OUR POWER PLANTS AND OPERATIONS…………………………………………………………………………………………… |
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ENERGY USE, EFFICIENCY AND FUEL RESOURCE MANAGEMENT AT ORMAT………………………………………………………….. |
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MANAGEMENT OF GEOTHERMAL BY-PRODUCTS AND WATER RESOURCES……………………………………………………………… |
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MANAGEMENT OF THE GEOTHERMAL RESOURCE AND ITS BY-PRODUCTS……………………………………………………………….. |
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IMPACTS OF OUR OPERATIONS ON THE LOCAL HYDROLOGY AND AQUIFERS………………………………………………………… |
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WASTE, MANAGEMENT OF MATERIALS AND BIODIVERSITY CONSERVATION………………………………………………………….. |
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WASTE, MATERIAL MANAGEMENT AND RECYCLING………………………………………………………………………………………………………….. |
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BIODIVERSITY…………………………………………………………………………………………………………………………………………………………………………………… |
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VI.OUR IMPACT AND ENGAGEMENT WITH OUR EMPLOYEES, SOCIETY & LOCAL COMMUNITIES………………………… |
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OUR PEOPLE: EMPLOYMENT AND SKILL DEVELOPMENT AT ORMAT………………………………………………………………………….. |
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OUR OUTLOOK ON EMPLOYMENT……………………………………………………………………………………………………………………………………………… |
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OUR EMPLOYMENT FRAMEWORK………………………………………………………………………………………………………………………………………………. |
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OUR PEOPLE: EMPLOYMENT AND SKILL DEVELOPMENT AT ORMAT………………………………………………………………………….. |
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SUBCONTRACTORS AND THIRD PARTIES………………………………………………………………………………………………………………………… |
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EMPLOYEE RETENTION………………………………………………………………………………………………………………………………………………………. |
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OUR HIRING & TERMINATION POLICIES…………………………………………………………………………………………………………………………………….. |
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DIVERSITY & EQUALITY IN EMPLOYMENT AT ORMAT…………………………………………………………………………………………………………… |
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EMPLOYEE ENGAGEMENT AND PROMOTING WELL-BEING IN THE WORKPLACE……………………………………………………… |
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ENSURING A SAFE & HEALTHY WORK ENVIRONMENT – OCCUPATIONAL HEALTH AND SAFETY AT ORMAT………. |
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OUR OCCUPATIONAL HEALTH AND SAFETY PROGRAM – STRIVING TO GO BEYOND COMPLIANCE…………………… |
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MEASURING OUR HEALTH AND SAFETY PERFORMANCE………………………………………………………………………………………………….. |
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SAFE DEALING WITH HAZARDOUS MATERIALS AND EMERGENCY RESPONSE PLANS…………………………………………… |
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SUPPORTING AND SHAPING SUSTAINABLE COMMUNITIES AND FUTURES……………………………………………………………….. |
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OUR GOALS AND GUIDEPOSTS…………………………………………………………………………………………………………………………………………………….. |
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UNDERSTANDING AND UNIQUENESS………………………………………………………………………………………………………………………………………… |
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SOCIAL ACTION PLANS…………………………………………………………………………………………………………………………………………………………………… |
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LISTENING MEANS LEARNING………………………………………………………………………………………………………………………………………………………. |
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VII.OUR HOLISTIC APPROACH TO CORPORATE GOVERNANCE ………………………………………………………………………….. |
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MAKING SOUND CORPORATE GOVERNANCE A PRIORITY ………………………………………………………………………………………… |
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ORMAT’S CORPORATE GOVERNANCE STRUCTURE………………………………………………………………………………………………………… |
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ENSURING A CORRUPTION-FREE WORK ENVIRONMENT ………………………………………………………………………………………….. |
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POLITICAL CONTRIBUTIONS AND LOBBYING ACTIVITIES……………………………………………………………………………………………….. |
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INSIDER TRADING POLICY…………………………………………………………………………………………………………………………………………………………… |
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MAJOR ONGOING LITIGATION…………………………………………………………………………………………………………………………………………………… |
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ETHICAL CONDUCT AT ORMAT………………………………………………………………………………………………………………………………………………….. |
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WHISTLEBLOWER POLICY…………………………………………………………………………………………………………………………………………………………… |
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VIII.ABOUT THIS REPORT………………………………………………………………………………………………………………………………………… |
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INFORMATION BOUNDARIES OF THIS REPORT …………………………………………………………………………………………………………….. |
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CONTACT POINT FOR QUESTIONS REGARDING THIS REPORT…………………………………………………………………………………….. |
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IX.GRI CONTENT INDEX……………………………………………………………………………………………………………………………………………. |
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GRI DATA TABLES……………………………………………………………………………………………………………………………………………………………………………. |
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SASB CONTENT INDEX…………………………………………………………………………………………………………………………………………………………………. |
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CHAPTER I.
- MESSAGE FOR OUR STAKEHOLDERS
Mcginness Hills Complex, NV, U.S., 160 MW
FROM THE CEO:
To our Stakeholders,
As I reflect on 2020, perhaps the biggest lesson brought into sharp focus by the COVID-19 pandemic is the interconnection of all countries, governments, businesses, institutions, communities, and people. It highlighted the priority of addressing poverty, social, and racial inequality. It reinforced the importance of efforts to provide clear, credible information and thoughtful, coordinated action. Critically, it firmly elevated the importance of sustainable thinking and practices.
Ormat’s people, in every part of our global operations, rose to and responded effectively to the difficult challenges posed by the pandemic. Our flexibility, adaptability, and application of strategic, creative thinking ensured that we made meaningful progress toward our long term operational and financial goals while at the same time continuing to protect both our people and our environment. Though 2020 was a year of unprecedented adversity, the lessons we learned during this challenging time have made us a stronger company and have strengthened even further our commitment to supporting a sustainable future.
ABOUT THIS REPORT
In this report, we provide a detailed overview of what sustainability looks like at Ormat, through a rigorous environmental, social and governance (ESG) performance prism. Our 2020 Sustainability Report is the third we are publishing in alignment with the GRI Sustainability Reporting Standards reporting standard CORE option and the first to include reporting standards from the Sustainability Accounting Standards Board (SASB). This commitment enables us to provide sector-specific coverage on our ESG impacts, across our entire value chain.
OUR CORE VALUES
Ormat’s five core values – stability, constant renewal, full commitment, courage, and creativity -continue to drive our business practices and decisions. In accordance with these values, we are focused on addressing the climate and societal challenges before us with full commitment and courage.
PROTECTING OUR PEOPLE AND LOCAL CUMMINITIES
In March 2020, when the World Health Organization (WHO) officially deemed the outbreak of the COVID-19 a pandemic, Ormat developed an extensive program of working practices to meet and exceed government requirements in each of the global jurisdictions in which we operate. As part of our commitment to protect and preserve the health and safety of our employees, we temporarily enabled employees to work remotely, adopted separate shifts in our power plants and manufacturing facilities to promote social distanc- ing, and created a robust COVID-19 safety program for managing risk on-site. We also took steps to protect our stakeholders. We held our first “virtual” Annual General Meeting and instituted online contact protocols
with clients, contractors, vendors, and other stakeholders, while ensuring that all offices and facilities offered stringent protective guidelines.
At a time when the fiscal fallout of the pandemic led to significant global layoffs, Ormat chose to retain all employees at their full salaries, avoiding lay-offs or furloughs caused by the COVID-19 crisis. Notwithstanding the financial impacts suffered to certain sectors of the Company due to pandemic impacts, I am very proud that our global workforce of approximately 1,400 employees retained their economic security during a time of extraordinary uncertainty and I am grateful for our employees’ hard work, extraordinary efforts, and ingenuity during these unprecedented times. I am also extremely proud of Ormat’s continuous commitment to and support of local communities. As one example, and to combat growing food insecurity caused by the pandemic, Ormat provided funds, food, and resources specifically for COVID-19 related response efforts to our local communities.
OUR RENEWABLE GROWTH PLANS
Ormat’s mission is to be the world’s leading renewable energy provider. Our company has a 56-year history of renewable energy innovation, and we currently own and operate 1,100 MW of Geothermal, Storage, Solar PV, and Recovered Energy Generation assets. These energy-generating and storage assets are helping create an alternate energy future, where greenhouse gas emissions are significantly reduced and the ability to store and access renewable power will enable electricity grids to become more responsive and stable.
We see a bright future and believe our singular focus in the renewable energy sector offers a unique value proposition to our investors, customers, and energy consumers. In the short term, our goal is to increase our geother-
mal, storage, solar PV, and Recovered Energy Generation total generating capacity to between 1.5 and 1.6 GW by 2023, with storage portfolio contributing between 0.27 and 0.37 GW.
CUNTINUED COMMITMENT TO A SUSTAINABLE FUTURE
As we work to expand our renewable portfolio, Ormat is committed to continuing our ESG efforts to enlarge and refine our sustainability reporting disclosure. In addition to this annual Sustainability Report, Ormat regularly participates in the global disclosure system CDP (formerly Carbon Disclosure Project) and reports the direct and indirect contributions of our business activities and community engagement towards the United Nations Sustainable Development Goals (SDGs). We invite you to review our performance and progress in the links provided.
We value and appreciate your interest in Ormat and our sustainability performance. We are proud that our efforts are lowering greenhouse gas emissions while bringing breakthrough technologies and solutions to the world’s electricity grids.
Sincerely,
Doron Blachar
Chief Executive Officer
CHAPTER II.
EXECUTIVE
SUMMARY
Neal Hot Springs geothermal power plant,
Oregon, U.S., 24 MW
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Disclaimer
Ormat Technologies Inc. published this content on 17 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 December 2021 10:08:13 UTC.
Publicnow 2021
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Technical analysis trends ORMAT TECHNOLOGIES, INC.
| Short Term | Mid-Term | Long Term | |
| Trends | Neutral | Bullish | Bearish |
Income Statement Evolution
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Sell  Buy |
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| Mean consensus | OUTPERFORM |
| Number of Analysts | 7 |
| Last Close Price | 78,40 $ |
| Average target price | 80,57 $ |
| Spread / Average Target | 2,77% |
