Digitizing the power grid | Max power, max control

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UN - SDGs

Digitizing the grid contributes to several UN sustainability goals

Introduction

Heimdall - a guardian of the most critical infrastructure in society

A plan for a more sustainable world

As we issue this ESG report, the  world is experiencing broad disruption due to the coronavirus (COVID-19) epidemic. Yet, at this moment in time, we are all united by these circumstances that are affecting every part of our lives.

Both the pandemic and climate change belong to the category of urgent threats. Climate change is the greatest challenge of our generation, and the next 10 years will be crucial to addressing it.

Heimdall Power’s promise is to be our customers’ partner on their journeys towards sustainability. And we work hard every day to minimize our own footprint.

Digital and renewable disruptions can help us rethink the energy model and have an impact on the planet’s future. Heimdall Power has these technologies ready to go.

Throughout the value chain, Heimdall Power is an ESG model for customers in itself. Reducing risk, enabling sustainability, improving customer performance, and thereby making modern society better.

We support society and our investors on their sustainability journeys. Reporting on Environmental, Social and Governance issues is important and contributes to better performance and valuation.

Heimdall Power’s ambition is to change the electric grid into an intelligent network that will turn the grid into a sustainable and carbon neutral machine.

The largest green machine on the planet!

Do well, do good!


Signatur

 

 

Brage W. Johansen
CEO, Heimdall Power

Heimdall Power at a glance

Satisfying Environmental, Social, and Governance criteria at Heimdall Power

Even though Heimdall Power is a young company, our focus has been on providing great value to shareholders and rewarding careers to employees as well as creating value for stakeholders in general. We run our business with passion, integrity and a commitment to excellence. Heimdall is investing in programmes to integrate employees into the core of Heimdall, develop diversity, and keep its environmental impact to a minimum.

The impact company

Heimdall Power can solve one of this century’s biggest challenges – how to make the electric grid intelligent and serve global society.

The company has the technology to make an impact and make the distribution grid smart and dynamic.

This ESG report visualises how Heimdall Power is organised for compliance with Environmental, Social and Governance criteria. But what is most important about Heimdall Power is its impact on the electricity business. Pushing the development of smart technology forward. For the sake of nature, society and the economy.

The answer to the problem

Climate targets can be achieved only with sufficient investment in electricity grids. In Germany alone, restricted grid expansion has caused long-term additional costs of up to €4.2 billion per year. Lawmakers and regulators must now set the course for growth in the network’s capacity and flexibility. German investment in excess of €110 billion will be required by 2050. It is likely that investment on this scale will also be required in the rest of the EU in order to avoid increased operating risks in the near future.

-2bn

metric tonnes

Reducing global Co2 emissions by 2 billion metric tonnes per year by 2030. This is the same as taking half of the world’s passenger cars today off the road.

$3.3

trillion

Net economic value of digitalising electricity over the next 10 years.

(World Economic Forum)

2050

Goal for Europe´s climate neutral economy.

144

BN
NOKS

Norway investing in new grid. Digitalisation can reduce large parts of this investment, savings tens of billions of NOK.

Norway investing in new grid. Digitalisation can reduce large parts of this investment, savings tens of billions of NOK.

We follow the Euronext guidance on ESG reporting of January 2020

We follow the Euronext guidance on ESG reporting of January 2020

Stakeholder Engagement and Assessment of ESG Topics

We maintain relationships with stakeholders who may influence our business operations and approach to ESG. These stakeholders include shareholders, research and investment analysts, employees, customers, suppliers, proxy advisors, industry associations and communities.

Products

The Heimdall sensors are assembled in a robust sphere called the neuron. Data from the neurons are presented together with contextual data through Heimdall Cloud, our user-friendly cloud and software solution.

The hardware

A unique low-cost sensor package called Heimdall Neuron

THE
SOFTWARE

Secure cloud-based software called the Heimdall brain

THE
PROCESS

A digitised electric grid enables new work processes and value creation

environmental

Heimdall Power’s business model is based on a green global mission. The electric grid is the largest man-made machine. It spans the globe, providing structure, balance and life to the energy system of our planet. It’s essential infrastructure that enables a sustainable, green energy future.

Read more

Social

Our people power our business – their success is our success. Heimdall Power is committed to creating a performance culture of high employee engagement where every employee takes personal ownership and responsibility for their performance, career and professional growth. Our staff will develop to be Green Shift Competent.

Read more

Governance

We are committed to the long-term success of Heimdall Power as well as of those we serve through strong corporate governance and ethical business practices. Every day, we strive to operate as a disciplined, trustworthy and moral organisation.

Read more

Board of Directors

Dag Honningsvåg

Chairman

Jon T. Berg

Board member

Patrick Sandahl

Board member

Victoria Lervik

Board member

Ørjan Aukland

Board member

Roald Brekkhus

Board member

Jarle Kvamme

Board member

Christian F. Magnus

Board member

The power of knowing

Climate

Protecting the climate and environment

Heimdall Power’s approach to mitigating climate impact

We take our responsibility to the environment seriously and seek to adopt and implement environmentally sound policies in our operations.

The climate crisis requires an all-hands approach to mitigate the effects of a warming world. By decarbonising our operations and supply chain – as well as creating resource-sensitive products and services – we continue our steady climate-positive progress.

Transforming our activities to respect the planet’s limits

It is no longer enough for companies to reduce their environmental impact with objectives that are “self-set”. At Heimdall Power, our commitment is to ensure that our activities are respectful of so-called “planetary boundaries”, meaning what the planet can withstand, as defined by environmental science. 

The sustainability of our environment is a top priority. We have taken action through our day-to-day operations to implement initiatives that reduce our impact on the environment. We remain committed to continuing to develop, adopt and monitor climate and carbon-related strategies to even further reduce our environmental footprint.

CLEAN ENERGY/FUTURE

Clean energy is ready to power the future

Our century-old power grid needs an upgrade

There has never been a more pressing time to think about renewable energy. At the end of 2018, the Intergovernmental Panel on Climate Change (IPCC) issued the strongest warning yet on the risks of rising global temperatures. Despite all the efforts to date, global emissions are still rising, and the impact of a two-degree increase on our planet would be catastrophic.

A two-degree increase means devastated ecosystems, ice-free summers in the Arctic, widespread coral die-offs, decreasing crop yields, and consequential mass relocations, and freshwater will, as a paradox, become an increasingly scarce resource, according to IPCC research.

Avoiding these unimaginable changes requires trillions in investment, strong global leadership and long-term thinking.

Bloomberg New Energy Finance has estimated that $10 trillion will be invested in zero carbon generation capacity between 2018 and 2050, with $8.4 trillion of that going into wind and solar. To put this into perspective, the total investment into wind and solar equates to roughly twice the global market capitalisation of the oil and gas sector.

Heimdall Power’s technology and products fit into this development, enabling the distribution grid to receive renewables and increasing the capacity on the grid at the same time.

Impact

Make sense, make impact

We strive to operate with a minimal environmental footprint, and employees are provided with resources to help them work sustainably.

Heimdall Power’s overall impact and contribution to society lie in generated and distributed financial value (revenue, taxes, salaries, and payments to suppliers and providers of capital), providing employment and development opportunities, environmental care, innovation and new knowledge created for the market, an extra contribution to societal initiatives, and many more activities by our portfolio companies.

Around the globe, voices are increasingly clamouring for climate-aware investment and carbon controls. Demand for the ethical treatment of employees, customers and other stakeholders is also growing, as is the indignation over poorly managed companies.

Just as the transitions within digitalisation, electrification, and now the green shift have accelerated, there are now similar expectations for companies to make an impact and achieve ESG milestones.

Heimdall Power makes an impact on society through its business model and technology. The company is set to change and even disrupt the electricity industry. The impact will be profound, and it has already begun. Fundamental change is now an imperative for most businesses and people, and Heimdall Power is one of the players contributing to this change.

RESPONSIBILITY

At Heimdall Power, we believe in social responsibility and sustainable development throughout our entire business operation.

We want to make a positive impact on the businesses we operate in, and we are committed to integrating general sustainability principles with regard to

Human rights

Worker rights

Protection of the environment

Anti-corruption

We seek to create value for customers, employees and society around us in a sustainable way.

Every Heimdall Power employee is expected to contribute to the integration of responsibility and sustainability principles in their daily work – towards colleagues, customers, suppliers and other stakeholders.

Whistleblowing

At Heimdall Power, we encourage employees to raise concerns about critical conditions within the company (i.e. “to blow the whistle”). Critical conditions imply conditions of misconduct, that are contrary to law or other ethical standards, that imply danger to life and health, or other wrongdoing.

Whistleblowing is governed by  Norwegian legislation – for instance, §2-4 and §2-5 of the Norwegian Working Environment Act. Pursuant to these provisions, employees have the right to report critical conditions on the part of their employer as long as the notification is justified. Retaliation against those who report concerns is prohibited.

You can raise any concern to your manager or the HR Manager. If a matter is brought to the attention of the media or other external channels, you will be expected first to have reported the matter internally or, alternatively, to the relevant authorities.

EMPLOYEE DEVELOPMENT

Cultivating corporate culture

Cultivating a welcoming work environment and inclusive culture that allows everyone to feel a sense of belonging, be valued and have the confidence to do great things is of fundamental importance to Heimdall Power. We’re a unified team with diverse perspectives, driven by our desire to succeed together.

We recognise the power and tremendous value that unique perspectives bring to our business. Respecting our differences and celebrating those who see the world differently is what makes collaboration, innovation and our success possible. This philosophy is deeply ingrained into our culture and we are dedicated to creating a workplace where we can all can bring our true selves to work each day.

Promoting the well-being of our coworkers and providing them with the tools to succeed both professionally and personally ensures we all win together. We offer competitive compensation and regularly review our pay programmes from a pay equity perspective to ensure they accurately reflect our philosophy of paying everyone fairly. At Heimdall Power we want our employees to have ownership of our mission and our company, and we offer all employees programmes for stock options and the opportunity to purchase shares.

Employee Code of Conduct

At Heimdall Power, we believe that everything we do in connection with our work will be, and should be, measured against the highest possible standards of ethical business conduct. Our commitment to the highest standards helps us hire great people, develop great solutions and attract loyal business partners.

No tolerance for sexual harassment

Avoid conflicts of interest

Show
respect

Anti-Bribery,
Anti-Corruption

No tolerance for sexual harassment

SUPPLY CHAIN ETHICS

Engaging with our Vendor Partners and Suppliers

We expect our vendor partners to maintain the highest standards of business ethics, integrity and respect for human rights and to become familiar with and comply with our policies as outlined in our Partner Guide. We also expect vendor partners to operate their businesses in compliance with all applicable laws and to maintain lawful environmental, health and safety practices that meet or exceed all applicable laws and standards, as outlined in our Position on Human Trafficking and Slavery.

Heimdall Code of Conduct

The Supplier is to hold and maintain at all times the Heimdall Code of Conduct addressing human rights, worker rights, the environment and corruption.

The Supplier must acknowledge HP’s Code of Conduct in all new contractual arrangements. The Supplier must do this by signing the HP Compliance Letter (exhibit).

The Supplier is obligated to communicate the contents of Compliance Letter (Exhibit) to related entities and subcontractors who support the Supplier in supplying goods, works or services on behalf of HP. This will ensure that subcontractors conduct their business in accordance with the Code of Conduct.

If requested by HP, the Supplier must provide evidence and confirmation of its compliance with the Compliance Letter (Exhibit), including by providing documents and records in support of its compliance.

POLICIES

Heimdall Power considers good corporate governance to be a prerequisite for value creation and trustworthiness and for access to capital.

In order to secure strong and sustainable corporate governance, it is important that Heimdall Power ensure good and healthy business practices, reliable financial reporting and an environment of compliance with legislation and regulations.

The Heimdall Power Employee Code of Conduct sets out principles for how business should be conducted. References to more specific policies are included in the Code (which can be found in the Employee Handbook) with its corporate governance policy where relevant. The Heimdall Power governance regime is approved by the company’s board of directors.

At Heimdall Power, we believe that everything we do in connection with our work will be, and should be, measured against the highest possible standards of ethical business conduct. Our commitment to the highest standards helps us hire great people, develop great solutions and attract loyal business partners.

Human rights, labour rights, the external environment and anti-corruption are important, and our focus is on ensuring that projects have sound and good practices and that our suppliers are subject to ethical and environmental requirements.

Heimdall Power is incorporated and registered in Norway and is subject to Norwegian law.

RISK MANAGEMENT

At Heimdall Power, a comprehensive approach to risk management ensures that we have the structures in place across our business to address relevant risks.

Our focus on mitigating risk in all parts of our operations ensures that we have the capabilities and processes in place to identify, quantify, monitor and report risk. There will also be a Risk Management Framework in place in the near future to handle risk even more effectively in an ever-growing organisation.

Data protection, cybersecurity, people management and
responsible business practices can have an immediate operational impact and are therefore treated as operational risks. Long-term challenges such as pollution and lifestyle risk factors impact the health and well-being of people across our markets and are viewed as insurance risks given their potential impact.

Heimdall Power recognises that long-term ESG risks – such as climate change, pollution and lifestyle-related Noncommunicable Chronic Diseases – can have a far-reaching impact on our markets and require concerted efforts from business, government and the general public alike.

We are following Covid-19 developments by the hour, and company policy directs all employees to follow the advice of the authorities at any given time.

A key element in the effective management of risk, including ESG risk, is a strong and resilient culture, including how an organisation behaves when it encounters opportunity and manages risk. Strong risk awareness is a part of Heimdall’s desired broader culture.

Our Operating Philosophy and Code of Conduct further outline our expectations of professional conduct, identifying risk behaviours and channels for reporting potential risks. Frequent training and internal communications ensure that all employees are familiar with appropriate reporting issues.

RECOGNITION

Heimdall Power selected for Global Cleantech’s top 100 of 2019

The Global Cleantech 100 is an annual guide to the leading companies and themes in sustainable innovation. It features the private, independent, for-profit companies best positioned to solve tomorrow’s clean technology challenges.

 

Heimdall Power now joins the ranks of other market leaders, industry innovators and household names to make it into the Global Cleantech 100 over the last decade, including the likes of Tesla, Nest, Sonnen, Solar City, Chargepoint, Solar Edge, Landis & Gyr and Silversprings.

Top 100 Global Cleantech list

One of two Scandinavian companies selected from 13,000 prospects San Francisco, USA. January 2019

Top 3 in Cleantech Scandinavia

The only Norwegian company qualifying for the final Malmø, Sweden. May 2018