our sustainability strategy
the importance of tackling to climate change
Ormat’s core business operations are dedicated to addressing climate change and the need to reduce worldwide greenhouse gas emissions. We’re committed to reaching our ESG goals in a transparent and ethical manner. We also support the growth of our employees, partners, investors, and the communities where we operate.
Did you know?
In 2023, we began to implement a range of programs for employees across the Company, including the Company’s first ESG Week with global activities.
OUR ESG GOALS & COMMITMENTS:
-
5% annual intensity reduction for Scope 1 & 2 emissions, compared to 2019 baseline -
Maximize water recycling at all locations by 2025 -
Increase clean energy capacity -
Prioritize our employees and their development -
Promote innovation in all our activities -
Committing to a fair supply chain -
Continue synergy with the communities in which we operate -
Maintain strong values for solid governance
ORMAT’S OVERSIGHT OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE INCLUDES:
STEPS WE’VE TAKEN
IMPORTANT STEPS WE’VE TAKEN TO FURTHER DEVELOP OUR ESG PROGRAM AND STRATEGY, MITIGATE RISKS AND IDENTIFY OPPORTUNITIES:
- Executed a materiality analysis to update material ESG topics
- Conducted a climate risk analysis to identify material physical and transitional risks
- Conducted a Gap analysis to map compliance with the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations
- Analyzing climate scenarios and assessing climate risks to build a TCFD reporting framework, aligned with SEC and California’s Climate Rules
- Initiated a process to quantify the financial impacts of material climate risks and develop mitigation plans
- Set near- and long-term carbon reduction targets aligned with GHG Protocol and SBTi guidance.
- Completed a decarbonization model that highlighting key emission reduction areas and are evaluating associated costs and risks
MATERIALITY ANALYSIS
The graph shows the most material topics that were identified and approved by senior management as part of the materiality analysis that was concluded in 2023.
The process included:
- A sector benchmark and review of global standards and government and business initiatives
- Questionnaire to rank relevant topics based on perception of importance to Ormat
- Interviews with various customers, suppliers, senior leadership, directors, and others.
sustainable development goals
The United Nations has 17 Sustainable Development Goals (SDGs) to address some of the world’s most pressing social, economic, and environmental issues. As a leading global renewable energy provider, we believe Ormat has an important leadership role to play in supporting the SDGs. We’ve identified specific SDGs where our operations have the greatest impact, including energy, economy, infrastructure, consumption, and climate.
did you know?
We’ve secured a total of 192 patents and patent applications worldwide, including 58 patents issued in the U.S. and 39 pending U.S. patent applications.