ah-2022-12-31-en

Introduction

This annual report for Aker Horizons ASA (referred to herein as “Aker Horizons” or “the Company”, and

together with its consolidated subsidiaries as the “Group”) is an integrated report presenting the financial,

environmental, social, and governance (ESG) performance of Aker Horizons and its portfolio companies in

2022. The Company’s’ external auditor has submitted an independent auditor’s report on the financial

statements.

This section provides a brief overview of how to navigate the report. The first sections of the report contain an

introduction to Aker Horizons, Shareholder Information, the Board of Directors’ Report and a presentation of

Aker Horizons’ Board of Directors.

The Sustainability Strategy section introduces Aker Horizons’ work on sustainability from a strategic, forward-

looking perspective. Specifically, the section presents Aker Horizons’ policy, ambitions and strategy, external

commitments that reflect our sustainability ambitions, and the materiality assessment that guides and informs

Aker Horizons’ strategy and goals.

The section Sustainability Progress Report takes a deep-dive into the work and the progress made on

sustainability in Aker Horizons and its portfolio in 2022. This section presents four overarching topics, based

on the World Economic Forum's (WEF) Stakeholder Capitalism Metrics: Planet-positive impact, Respect for

people, Prosperity for all and Good governance, while also reflecting on Aker Horizons’ material topics. In

addition to presenting progress across these four main topics, this section also contains individual

sustainability summaries for the Aker Horizons Group companies, a one-page summary of the portfolio-wide

status of the Principal Adverse Impact Indicators, and an EU Taxonomy assessment of Aker Horizons’

investments.

The section Financials and Notes presents Aker Horizons’ consolidated financial statements, which have

been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS),

and associated interpretations, as well as Aker Horizons ASA parent company accounts (NGAAP). The

section is followed by the independent Auditor’s Report, which confirms that Aker Horizons’ financial

statements comply with applicable statutory requirements and give a true and fair view of the Company and

the Group’s financial positions. The Alternative Performance Measures section gives the definition of the

measures Aker Horizons’ refers to in the report, which come in addition to those required by the IFRS.

The Corporate Governance Report presents Aker Horizons’ corporate governance principles and practices in

accordance with the requirements in the Norwegian Accounting Act and the Norwegian Code of Practice for

Corporate Governance.

The Remuneration Report has been prepared in accordance with section 6-16b of the Norwegian Public

Limited Liability Companies Act and describes the principles for and the actual remuneration paid to the

executives in Aker Horizons in 2022.

The final section, Transparent Reporting, gives further details on key aspects of this integrated report,

including frameworks utilized, accounting principles, definitions, and guidance to reading the company

sustainability summaries.

Aker Horizons’ Annual and sustainability report for 2022 is available on Aker Horizons’ website.

> Aker Horizons in Brief

> Shareholder Information

> Board of Directors’ Report

> Board of Directors

> Sustainability Strategy

> Sustainability Progress Report

> Financials and Notes

> Auditor’s Report

> Alternative Performance Measures

> Corporate Governance Report

> Remuneration Report

> Transparent Reporting

> Appendix


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Aker Horizons in Brief

Aker Horizons is dedicated to developing green energy and green industry to accelerate the transition to net zero emissions. The Company’s

aim is to reduce greenhouse gas emissions and promote sustainable living, while providing substantial value creation over time through active

ownership. Aker Horizons is indirectly majority-owned by Aker ASA, a Norwegian industrial holding company listed on the Oslo Stock

Exchange, through its subsidiary Aker Capital AS (Aker ASA or Aker).


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Accelerating Net Zero

We know there is no silver bullet

solution for reaching net zero

emissions by 2050. It will require

pulling every emissions reduction

lever the world has at its

disposal. The composition of

Aker Horizons’ portfolio reflects

the solutions needed to

decarbonize the world at scale.

Our core areas consist of

renewable energy, carbon

capture and hydrogen. We

develop industrial-scale

decarbonization projects, taking

an integrated value chain

approach centered around clean

hydrogen and its derivatives.

Aker’s heritage

As part of the Aker group and its

over 180-year industrial heritage,

Aker Horizons combines in-depth

industrial and capital markets

expertise with a planet-positive

purpose, which uniquely

positions us to generate

attractive returns from green

investments. Aker’s industrial and

technological expertise enables

us to be a driving force in the

race to net zero emissions, and

accelerate decarbonization and

innovation.

Sustainability

Sustainability underpins all our

actions. Based on key

international frameworks, our

Sustainability Policy guides our

environmental, social and

governance (ESG) performance,

shapes strategy, business

development, investments and

ambitions. It sets out specific

commitments and requirements in

relation to our planet-positive

impact, respect for planet and

people, good governance and

prosperity for all. It also defines

how Aker Horizons exerts active

ownership and sets expectations

for its portfolio companies, their

supply chains and other relevant

stakeholders. Our Sustainable

Policy drives our long-term value-

creation and ensures our planet-

positive impact.

Active ownership

As an active owner, Aker

Horizons develops and

strengthens its portfolio

companies by driving strategy

developments, financing,

restructuring and transactions, to

ensure long-term sustainable

value creation for all

stakeholders. All our actions,

across the Company and our

portfolio, are underpinned by

ESG considerations and strong

commitments to sustainable

development. With the UN

Sustainable Development Goals

(SDG) and other international

standards and frameworks at the

core of our business, Aker

Horizons is scaling future-fit

solutions and technologies,

contributing to sustainable

development and driving a green

transition.

Total Net Asset Value

NOK million, 31 December 2022


Holding	Shares outstanding (million)	Market capitalization or book value	Aker Horizons’ ownership	Value to Aker Horizons
Aker Carbon Capture	604	6,985	43.3%	3,022

Listed assets				3,022

Mainstream Renewable Power			58.4%	12,169
Aker Horizons Asset Development			100.0%	1,722
Other				182
Unlisted assets				14,073

Cash and receivables				4,116
GAV				21,211
Liabilities				(6,133)
NAV				15,079

Gross Asset Value Distribution

NOK billion, 31 December 2022


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Aker Horizons Annual and Sustainability Report 2022 4

GAV NOK

21.2

World Emissions by Sector

Units: Gt CO₂ | Source: IEA; 2022 figures

Reaching Net Zero by 2050

A tremendous global effort is required to reach net zero emissions by 2050. This will

only happen if the world succeeds in halting emissions from the sources that contribute

the most. The energy system must transition from fossil to renewable sources. Industry,

especially the production of high-emitting industrial commodities such as steel, cement,

fertilizers, chemicals and aluminum, must develop low carbon and preferably emission-

free alternatives, using renewable energy sources or carbon capture and utilization or

storage technologies. The same goes for the transportation and building sectors.

Business as usual is not possible in a net zero world. Also important to emissions

reductions are natural climate solutions (NCS), which capture or reduce greenhouse

gas (GHG) emissions by preserving, protecting and restoring ecosystems. Land-use

change and deforestation are key drivers of global climate and environmental change,

contributing to global warming, erosion, floods and droughts; loss of biodiversity; air,

soil and water degradation; and ecosystem losses.

Global CO₂ emissions from energy combustion and industrial processes, 1900-2022


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How Aker Horizons Contributes to Reaching Net Zero by 2050

The composition of Aker Horizons’ portfolio reflects solutions needed to decarbonize the world at scale. Our companies span the renewable

energy sector, including solar and wind power (onshore, bottom-fixed and floating offshore), green and blue hydrogen, and carbon capture,

utilization and storage (CCUS).


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Aker Horizons Annual and Sustainability Report 2022 6

Our Portfolio Companies

Aker Horizons invests in and develops companies within

green energy and green industry that make material

contributions to reducing emissions or promoting

sustainable living. We are active in renewable energy,

carbon capture and hydrogen, and develop industrial-scale

decarbonization projects.

Aker Horizons leverages the significant industrial,

financial and technological capabilities of the Aker

group to identify and develop opportunities, and to

expand our portfolio of companies and projects.

Each Aker Horizons portfolio company works to

maximize value individually, with separate

management teams and boards, but with strong,

continuous support from Aker Horizons to ensure

activities are optimized across the entire value chain

and to capitalize on internal expertise in the broader

Aker group.

All figures presented are as of year-end 2022.

Where the report refers to the “Group” or “Group

Companies,” this includes Aker Horizons’ financially-

consolidated investees Aker Carbon Capture, Aker

Horizons Asset Development and Mainstream

Renewable Power (Mainstream Renewable Power

or Mainstream). “Portfolio companies” also includes

Supernode. For further details, see the section

Transparent Reporting.


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Aker Carbon Capture is a pure-play carbon capture company

serving a range of industries with carbon emissions, including the

cement, bio and waste-to-energy, gas-to-power and blue hydrogen

segments. Aker Carbon Capture’s proprietary and field-proven

carbon capture technology offers a unique solution for reducing

and removing CO₂ emissions.

2022 highlights

•Installing key equipment on site at the Brevik project in Norway – the

world’s first large-scale CCS plant at a cement facility

•Starting the construction of the carbon capture and utilization (CCU)

project at Twence’s waste-to-energy plant in the Netherlands

•Delivering FEEDs for the carbon capture and storage projects at Keadby

3 and Net Zero Teesside gas-to-power plants in the UK, both with an

annual CO₂ capture capacity of up to 2 million tonnes

•Securing Runcorn CCS pre-FEED for the UK waste management

company Viridor, with an annual CO2 capture capacity of 1 million

tonnes

Ownership agenda

•Support development and cost optimization of the entire CCUS value

chain

•Drive growth in new markets and industry segments


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7.0

Market cap

NOK billion

43.3%

Aker Horizons’

ownership

3.0

Investment value

NOK billion

131

Employees and

contractors1

1) Year-end count of all employees and contractors, FTE

Mainstream Renewable Power is a leading independent renewable

energy player, with a global footprint and a proven track record in

onshore and offshore wind and solar power across Europe, South

America, Asia and Africa.

2022 highlights

•Combining with Aker Offshore Wind to create a global front-runner in

offshore wind power, with strong floating wind capabilities

•Bringing Mitsui & Co., Ltd. in as a strategic shareholder through a EUR

575 million capital injection to accelerate the global growth of

Mainstream's portfolio

•Selling Aela Energía, Chile's largest independent renewable energy

producer, to Canadian developer Innergex Renewable Energy in a

transaction that generated net proceeds of about USD 114 million

•Entering an agreement to sell Lekela Power, Africa's largest

independent pure-play renewable energy producer, to Infinity Group and

Africa Finance Corporation, which will generate proceeds of about USD

90 million

•Securing area with the potential for a 1.8 GW offshore wind farm off the

Shetland Islands in Scotland, in partnership with Ocean Winds

Ownership agenda

•Accelerate growth through maturing development pipeline

•Extend business capabilities and footprint to become a renewable

energy major

•Develop best in class ESG practices and performance


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Aker Horizons Annual and Sustainability Report 2022 9

58.4%

Aker Horizons’

ownership

12.2

Investment value

NOK billion

837

Employees and

contractors1

1) Year-end count of all employees and contractors, FTE

SuperNode is a global technology development company that

designs and delivers superconducting systems to connect

renewable generation and increase grid interconnection in

mature markets.

2022 highlights

•Moving into a new state-of-the-art, purpose-built technology hub – ‘The

European Cryogenic Centre for Superconductors’ (ECCS), in Ireland

•Securing EUR 14 million in additional funding from owners Aker

Horizons and Volnay for further development of innovative

superconducting transmission technology

•Expanding the organization to over 50 people, and making key

appointments for the organization

•Securing EU Horizon Europe funding for Superconductor cable

technology and beginning market engagement work, as part of

SCARLET Consortium

•Filing three new patents and testing novel designs for superconducting

cable systems

Ownership agenda

•Support continued technology development towards full commercial

application

•Develop a viable business model for superconducting cable technology

in the future transmission system

•Establish strategic funding plan for commercialization


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Aker Horizons Annual and Sustainability Report 2022 10

50.0%

Aker Horizons’

ownership

118

Investment value

NOK million

Employees and

contractors1

1) Year-end count of all employees and contractors, FTE

Aker Horizons Asset Development

Aker Horizons’ wholly-owned asset development arm was

established following the merger between Aker Horizons and

Aker Clean Hydrogen in June 2022. The business unit is set up to

originate, develop, own and operate industrial-scale hydrogen

projects to meet growing demand for decarbonizing energy-

intensive, hard-to-abate industries such as shipping, steel and

fertilizers. Initial focus areas include green ammonia, green

methanol and green iron.

2022 highlights

•Reaching a milestone at the Rjukan green hydrogen project with the

signing of a land lease and power purchase agreement

•Establishing partnerships with global industry players Kuehne+Nagel,

Grieg Edge, Aker BP and others for green fuel offtake in the maritime

sector

•Establishing a joint venture company between Aker Horizons and

Nordkraft to develop sites for green industries in Northern Norway,

including the Kvandal site where civil and electrical engineering works

were initiated

•Passing decision gate zero (pre-feasibility), demonstrating technical and

commercial viability, including competitive levelized cost of hydrogen, at

the large-scale blue hydrogen project Aukra, together with our partners

Shell and Cape Omega

•Joining Gassco in conducting a joint feasibility study on hydrogen

infrastructure, including a dedicated pipeline to enable efficient hydrogen

transport from Norway to Germany

•Entering a partnership with Statkraft to explore opportunities for green

hydrogen and ammonia production in India and Brazil


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Shareholder Information

Aker Horizons is committed to maintaining an open dialogue

with its shareholders, investors, analysts and the capital

markets.

Our goal is for the share price to reflect the underlying value

of the Company by making all price-relevant information

available to the market. Aker Horizons works to create

shareholder value over time.

Share capital

Aker Horizons has one class of shares. Each share carries

one vote at the Company’s general meeting. The shares are

freely transferable pursuant to the Company’s articles of

association.

Aker Horizons’ registered share capital at 31 December 2022

was NOK 690.3 million, divided between 690,348,751 shares

with a nominal value of NOK 1.00 each.

The shares are registered in the Norwegian Central Securities

Depository (VPS) with DNB ASA as the account operator and

issuer. The securities identification number for the share is

ISIN NO0010921232.

Stock market listing

Aker Horizons is listed on the Oslo Stock Exchange under the

ticker AKH. Aker Horizons ASA’s shares are registered with

the VPS with the registration number ISIN NO0010921232.

The share price has varied between NOK 11.6 and NOK 34.3.

At the end of 2022, the Company’s market capitalization was

NOK 8.9 billion. A total of 297.3 million shares were traded in

2022, corresponding to a turnover rate of 43.1 percent.

The Aker Horizons share was traded on all of Oslo Stock

Exchange’s trading days in 2022. The share is included in

Oslo Stock Exchange’s OSEBX index.

Shareholder structure

At the end of 2022, Aker Horizons had 40,853 shareholders.

According to the shareholder register maintained by the

Norwegian Central Securities Depository (VPS), non-

Norwegian shareholders held 18.92 percent of the Company’s

shares as at 31 December 2022.

At the reporting date, Aker ASA (through its subsidiary Aker

Capital) was the largest shareholder, holding 67.25 percent of

Aker Horizons’ shares, followed by Folketrygdfondet (the

Government Pension Fund Norway) with 2.96 percent and

Baillie Gifford & Co with 2.61 percent.

The 20 largest shareholders held a total of 80.81 percent of

the Company’s shares at the end of the year.

Option schemes

As at 31 December 2022, Aker Horizons had no share option

schemes.

Investor relations

Aker Horizons seeks to maintain an open and direct dialogue

with shareholders, debt holders, financial analysts and the

stock markets in general.

The Company strives to ensure that all participants in the

financial markets have equal and simultaneous access to

accurate, clear, relevant and complete information about Aker

Horizons’ performance and market position, in order to give

the financial markets a precise picture of the Company’s

financial position and other factors that may influence value

creation in Aker Horizons.


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The Company arranges regular presentations for, and

meetings with, shareholders, analysts, and investors.

All Aker Horizons’ press releases, stock exchange notices and

investor relations (IR) information are available on the

Company’s website, https://www.akerhorizons.com/investors

This online resource also offers access to the Company’s

quarterly and annual reports, prospectuses, corporate

presentations, articles of association, financial calendar,

investor policy and corporate governance information.

Quarterly and annual reports

Aker Horizons' quarterly and annual reports are published

electronically on the Company’s website at the same time as

they are released via the Oslo Stock Exchange distribution

service, www.newsweb.no (Ticker: AKH).

The Company’s financial reporting shall comply with the

framework set out in the Oslo Stock Exchange Rule Book

Part I and II. In addition, Aker Horizons shall comply with

relevant recommendations and market practices for financial

and other investor information.

Aker Horizons strives to follow the Norwegian Code of

Practice for Corporate Governance, including the Code's

principles of transparency and disclosure of relevant

information. This implies that information should be available

on Aker Horizons’ website and other relevant places.

All information distributed to individual Aker Horizons

shareholders is also made available on the Company website

as well as under Aker Horizons’ ticker-symbol (“AKH”) on

www.newsweb.com. To the extent Aker Horizons chooses to

hold a presentation in connection with its quarterly financial

reports, such presentations are open to investors, analysts

and other stakeholders.

Aker Horizons seeks at all times to comply with the latest

version of the "Oslo Stock Exchange Code of Practice for IR".

Compliance with the recommendation is based on the

"comply or explain" principle, which means that Aker

Horizons’ website explains any deviations from the

recommendation.

All written financial information is as a rule published in

English. Aker Horizons is granted an exemption from the

provisions of section 5-13 of the Norwegian Securities Trading

Act, related to the requirement of disclosing information in

Norwegian.

Nomination Committee

The Company’s Nomination Committee has two members,

Svein Oskar Stoknes (chair) and Ingebret Hisdal.

Shareholders who wish to contact the Nomination Committee

may do so using the following email address:

svein.stoknes@akerasa.com.

Audit Committee

The Company’s Audit Committee has two members, Lone

Fønss Schrøder (chair) and Lise Kingo.

Annual General Meeting

In accordance with Norwegian law, the Annual General

Meeting of the Company's shareholders is required to be held

each year on or prior to June 30. Aker Horizons’ annual

general meeting is scheduled this year to be held on 21 April

2023. Written notification will be sent to all shareholders and

shareholder nominees.

Meeting notices and attendance registration forms are sent to

shareholders by the deadlines laid down in the Norwegian

Public Limited Liability Companies Act, and made available on

the Company’s website and through the Oslo Stock Exchange

distribution service. The annual report and other enclosures to

the meeting notice are made available solely via the

Company’s website and the Oslo Stock Exchange distribution

service.

Shareholders who wish to receive the enclosures by post

must contact the Company. Shareholders who are unable to

attend the general meeting may vote on individual agenda

items electronically via Aker Horizons’ website during the pre-

meeting registration period. Shareholders may change their

votes or opt to attend the meeting in person throughout the

registration period.

Shareholders may also vote by proxy. The Company has

designed its proxy forms to allow shareholders to vote on

(issue voting instructions for) individual agenda items.

Procedures for electronic voting and the appointment of

proxies with voting instructions are described in the meeting

notice and on Aker Horizons’ website.

The Company does not appoint an independent proxy to vote

on behalf of shareholders. Aker Horizons considers that

shareholders' interests are adequately safeguarded by

permitting the participation of an appointed proxy or

authorization of the meeting chair/Board Chair/other

appointed representative to vote according to specific

instructions.


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Board of Directors’

Report

Aker Horizons’ second full year of operation was marked by a

series of significant transactions and partnerships that

expanded the Company’s geographical and industrial

footprint. New customers, studies and project opportunities

were secured, increasing the global renewable energy project

pipeline by 5 GW year-on-year. Key projects were matured

and milestones reached on major projects, for example in

Chile. Aker Horizons’ net asset value stood at NOK 15.1

billion at the end of 2022, compared to NOK 16.9 billion at

year-end 2021. While the Company’s market segments faced

headwinds in 2022, Aker Horizons goes into 2023 benefiting

from a favorable regulatory environment and strong political

support in Europe and the US for the green energy transition,

expanding opportunities in core markets and a solid financial

position.


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Introduction

Aker Horizons is dedicated to developing green energy and

green industry to accelerate the transition to net zero

emissions. The Company’s aim is to reduce greenhouse gas

emissions and promote sustainable living, while providing

substantial value creation over time through active ownership.

Aker Horizons was established in November 2020, and is

headquartered at Fornebu, Norway. Aker Horizons is 67.25

percent indirectly owned by Aker ASA, a Norwegian industrial

investment company with a more than 180-year industrial

history and ownership interests concentrated in energy and

green technologies, industrial software, seafood and marine

biotechnology, through its subsidiary Aker Capital AS. Aker

Horizons is part of Aker’s ecosystem, which provides an

industrial edge through alliances across a range of

disciplines, access to expertise within digitalization,

operational and technical capabilities, and commercial

synergies. Through its portfolio companies, Aker Horizons is

present in 18 countries and five continents.

Aker Horizons’ portfolio comprises both private and public

companies. The Company has been listed on the Oslo Stock

Exchange since May 2021.

Business model and strategy

Aker Horizons’ overarching business model is to incubate and

invest in companies within green energy and green industry,

and subsequently grow and develop them to create value for

Aker Horizons’ shareholders.

Within its wholly-owned asset development business unit,

Aker Horizons originates and develops industrial-scale

hydrogen projects to meet growing demand for decarbonizing

energy-intensive, hard-to-abate industries. Initial focus areas

include green ammonia, green methanol and green iron.

Each portfolio company works to maximize value individually,

with separate management teams and boards, but with strong

support from Aker Horizons to ensure activities are optimized

across the entire value chain and to capitalize on internal

expertise in the broader Aker group.

Aker Horizons’ current portfolio secures established positions

in verticals such as carbon capture, renewable energy and

hydrogen.

Grounded in eight selected Sustainable Development Goals

(SDGs) and the ambition to accelerate the transition to net

zero, Aker Horizons has established a framework for

identifying opportunities that incorporates a broad set of

defined investment criteria. The criteria include a strong

growth outlook and profitability potential, a clear path to

earnings and a unique capability set to address global

sustainability challenges, in line with the SDGs. In addition,

the companies and projects must play to the Aker group’s

strengths. Aker Horizons has access to dedicated in-house

resources comprising a team of professionals that are key to

realizing the company’s strategy by offering a combination of

financial, industrial and operational experience. The team

works in close collaboration with the portfolio companies’

executive managements.


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Key developments in 2022

2022 was characterized by market volatility, macroeconomic

headwinds and geopolitical uncertainty. The war in Ukraine

compounded the supply chain disruptions caused by the

Covid pandemic, sending energy prices higher.

Aker Horizons’ market segment was impacted by inflation,

supply chain bottlenecks and delays in permitting processes,

which led to increased levelized costs of energy. As a result, a

number of renewable energy auctions registered lower-than-

expected levels of participation, and final investment

decisions declined.

Despite the setbacks, 2022 still saw a remarkable

acceleration in the energy transition, in part due to the energy

crisis, with record renewable energy installations worldwide.

Global investments in low-carbon energy technology climbed

to a record high of USD 1.1 trillion, according to

BloombergNEF. Renewable energy, which includes wind,

solar, biofuels and other renewables, remained the largest

sector in investment terms, with USD 495 billion committed in

2022, up 17 percent from the year before.

Policy support for the energy transition, crucial to realize

many early-stage solutions for decarbonization, also picked

up pace. The US Inflation Reduction Act, which was passed

into law in August 2022, is widely expected to direct massive

investments into clean energy technologies in the coming

years, and help drive the up-scaling of green technologies like

hydrogen and carbon capture. The European Union (EU)

reached agreement on the Fit for 55, RePowerEU and carbon

border adjustment mechanism, setting the scene for faster

decarbonization across the bloc.

Aker Horizons’ portfolio underwent a series of major

transactions in 2022. At the beginning of the year, the portfolio

comprised equity stakes in Aker Carbon Capture, Aker Clean

Hydrogen, Aker Offshore Wind and Mainstream Renewable

Power, as well as investments in Rainpower, REC Silicon,

SuperNode and strategic sites for green industrial

development in Narvik.

Over the course of 2022, Aker Clean Hydrogen was merged

into Aker Horizons, establishing an in-house hybrid asset

origination and development entity, in the form of Aker

Horizons Asset Development.

Mitsui invested EUR 575 million in Mainstream Renewable

Power, joining Aker Horizons as a long-term strategic partner

in the company. Following the repositioning of Aker Offshore

Wind as a private company, AOW and Mainstream

Renewable Power combined, leveraging complementary

footprints and capabilities, increased scale and improved

access to financing.

Aker Horizons sold all its shares in REC Silicon to Hanwha for

total proceeds of NOK 1.8 billion. It also sold all its shares in

Rainpower to Aker Solutions, for about NOK 100 million.

At the close of 2022, Aker Horizons’ portfolio was composed

of holdings in Aker Carbon Capture, Mainstream Renewable

Power and SuperNode, as well as the wholly-owned business

unit Aker Horizons Asset Development.

Aker Horizons had a Net Asset Value (NAV) of NOK 15.1

billion as of 31 December 2022, compared to NOK 16.9 billion

as of 31 December 2021. At year-end 2022, Aker Horizons

had available corporate liquidity (cash and undrawn facilities)

of NOK 9.4 billion, while its net debt position stood at NOK 1.9

billion. Aker Horizons’ share price ended the year at NOK

12.9, down from NOK 33.1 at year-end 2021.

Company portfolio

Aker Carbon Capture

Aker Carbon Capture is a pure-play carbon capture company,

serving a range of industries with carbon emissions, including

the cement, bio and waste-to-energy, gas-to-power and blue

hydrogen segments. Aker Carbon Capture’s proprietary and

field-proven carbon capture technology, which has been

developed over the past two decades, offers a unique, HSE-

friendly solution for reducing and removing CO₂ emissions.

Carbon capture, utilization and storage (CCUS) will be critical

if the world is to reach net zero emissions by 2050. For many

industrial CO₂ emitters, CCUS is the only viable solution to

significantly reduce and remove emissions. The commercial

market continued to develop favorably during 2022, with key

projects moving into the construction phase and new projects

maturing.

Political support for CCUS also grew in 2022 as a growing

number of countries, driven by Europe and North America,

introduced or strengthened support mechanisms to realize

carbon capture on an industrial scale.

Aker Carbon Capture made progress on its main projects. In

Norway, the company installed key equipment on site at the

Brevik CCS project - the world’s first large-scale carbon

capture project at a cement facility. This is a flagship project

for Aker Carbon Capture and a milestone for the CCS

industry.

In the Netherlands, construction started at a project to deliver

a Just Catch™ modular carbon capture plant to a waste-to-

energy facility operated by Twence, the local waste-to-energy

company. In this pioneering project, the captured CO₂ will be

transported to nearby greenhouses and utilized to increase

plant yields, thus creating a commercial market for the CO₂.

The plant is scheduled to commence operations at the end of

2023.

Aker Carbon Capture strengthened its position in the UK, a

frontrunner in the development of CCUS value chains, with

two FEED contract awards.

A consortium of Aker Solutions, Siemens Energy and Altrad

Babcock was awarded a Front-End and Engineering Design

(FEED) contract for bp’s Net Zero Teesside Power project.

Aker Carbon Capture is the carbon capture provider to the

consortium.

SSE Thermal awarded the same consortium a FEED for

Keadby 3, a 910 MW gas-to-power plant equipped with

carbon capture technology, to be built in the Humber region.

Once operational, the plant will have the ability to capture up

to 2 million tonnes of carbon annually.

Both projects could become one of the world’s first

commercial scale gas-fired power stations with carbon

capture and storage.


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Aker Horizons Annual and Sustainability Report 2022 16

At the end of the year, Aker Carbon Capture commenced a

pre-FEED for Runcorn CCS for Viridor, a significant waste

management company in UK.

During the year, Aker Carbon Capture entered into several

Memorandums of Understanding (MoUs) that will pave the

way for future project developments and collaborations.

The Aker Carbon Capture share fell 59 percent during the

year, closing at NOK 11.56, down from NOK 28.40 a year

earlier.

Mainstream Renewable Power

Mainstream Renewable Power is a global pure-play

renewable energy company specializing in the development

of gigawatt-scale platforms across onshore wind, offshore

wind, and solar power. With a mission to lead the global

transition to renewable energy, it had a project portfolio of

over 21 GW across Europe, Americas, Africa and Asia Pacific,

with 1.5 GW in operation and under construction at the end of

2022.

In the first half of 2022, Aker Horizons merged with Aker

Offshore Wind. The merger between the two companies was

carried out as a triangular merger whereby Aker Offshore

Wind merged with a wholly-owned subsidiary of Aker

Horizons, which remained as the surviving entity, and

shareholders in Aker Offshore Wind received 0.1304 shares

in Aker Horizons in consideration for each share owned in

Aker Offshore Wind. The merger paved the way for combining

Aker Offshore Wind and Mainstream Renewable Power, in a

transaction that closed in August, to create a global

renewable energy company. The new company brings

together Aker Offshore Wind’s strong technical and

engineering capabilities and early mover position in floating

offshore wind, and Mainstream’s proven project development

methodology, execution track record and global presence.

A new, integrated organization was launched on 1 November,

with Mary Quaney as CEO and Tove Røskaft as head of the

offshore wind business.

Mitsui & Co., Ltd. became a strategic shareholder of

Mainstream via a EUR 575 million capital injection in April

2022. Mitsui is one of the leading Japanese general trading

and investment firms, with approximately 45,000 employees

in 63 countries and business activities across mineral and

metal resources, iron and steel, infrastructure, chemicals and

energy. At the end of 2022, the Japanese company owned

24.9 percent of the company, while Aker Horizons owned 58.4

percent.

Mainstream delivered on its strategic plan to divest its stakes

in two large portfolios in Chile and South Africa. The company

sold its 40 percent stake in Aela Energía, Chile's largest

independent renewable energy producer, to Canadian

developer Innergex Renewable Energy in a transaction that

generated net proceeds of about USD 114 million. Separately,

the company entered an agreement to exit Lekela Power,

Africa's largest independent pure-play renewable energy

producer, to Infinity Group and Africa Finance Corporation.

The transaction closed in March of 2023 and will generate

proceeds to Mainstream of about USD 90 million, subject to

certain closing adjustments


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Aker Horizons Annual and Sustainability Report 2022 17

In Chile, Mainstream made further progress on its Andes

Renovables Platform, completing eight out of 10 projects and

setting the company on track to connect a combined capacity

of more than 1 GW to the grid. This milestone was reached in

early 2023.

Challenging market conditions impacted companies in Chile’s

power sector in 2022, including Mainstream, with grid

capacity limitations leading to increased costs. Mainstream’s

diversified portfolio, with both wind and solar power

production in the north and south of the country, together with

the finalizing of new projects, helped mitigate the impact.

Mainstream recognized an impairment of USD 350 million net

of tax on the goodwill and intangible assets allocated to the

Andes portfolio, reflecting a rising interest rate environment

and adverse market conditions.

In South Africa, Mainstream and its Ikamva Consortium

signed project agreements for six solar plants, with a

combined capacity of 450 MW, awarded under Round 5 of

South Africa’s Renewable Energy Independent Power

Producer Procurement Programme (REIPPPP). This is a

significant milestone in advancing the projects towards

financial close.

The company also signed a lease agreement with Eskom,

South Africa’s national electricity company, for a 1,650-

hectare site. The lease agreement, which will run for 25-30

years, was part of a new initiative by Eskom to make land

available around existing power stations with sufficient,

available grid capacity.

In the Philippines, Mainstream entered a joint venture with

Aboitiz Power Corporation, one of the country’s leading

providers of renewable energy, to deliver a 90 MW onshore

wind power project located in the Camarines Sur Province.

This project supports the government’s ambition to generate

35 percent of all its electricity from renewables by 2030, and

50 percent by 2040.

The company’s offshore wind power portfolio grew as it

secured an area with the potential for a 1.8 GW offshore wind

farm off the Shetland Islands in Scotland, together with its

partner Ocean Winds. The site is located east of the Shetland

Islands in approximately 100 meters of water and is well

suited for floating offshore wind power production. The project

partners, which hold a 50-50 stake, are committed to

developing floating offshore wind power generation on an

industrial scale in Scotland. The site’s output is expected to

power for the equivalent of over 2 million homes.

In South Korea, Korea Floating Wind (KF Wind), the joint

venture between Ocean Winds and Mainstream, obtained

electricity business licenses from Korean authorities for a total

capacity of 1.3 GW. This represents a key step towards

realizing one of the world’s first large-scale commercial

floating wind farms. KF Wind is working to secure the

remaining required permits during 2023/2024. A joint

development agreement was also signed with East-West

Power (EWP), a state-owned power generation company in

Korea.

Cost increases that started in 2021 continued to constrain

supply chains and impact projects across geographies and

renewable energy segments. In some instances, inflationary

pressure delayed investment decisions and orders, as well as

lengthening delivery schedules. Mainstream managed the

added pressures through a continued focus on cost discipline

and a diversified sourcing approach.

Aker Horizons Asset Development

In 2022, Aker Horizons and Aker Clean Hydrogen combined

in an all-stock merger that repositioned the hydrogen

company as a privately held subsidiary of Aker Horizons.

Shareholders in Aker Clean Hydrogen (other than Aker

Horizons) received 0.2381 shares in Aker Horizons in

consideration for each share owned in Aker Clean Hydrogen.

The merger with Aker Clean Hydrogen was designed to

strengthen the organization’s capacity to develop large, hybrid

decarbonization projects in which hydrogen production is

combined with downstream applications such as ammonia

production. The business’ main activities were continued as

part of Aker Horizons’ Asset Development unit, which was set

up when the merger was completed.

Rjukan

The green hydrogen project in Rjukan, Eastern Norway, made

good progress in 2022, when Aker Horizons secured both a

power purchase agreement with the local energy group and a

land lease agreement with the local municipality. The 40 MW

hydrogen project (20 MW in the first phase) aims to serve

industry and transport in the south-east of Norway with clean

hydrogen. The facility will utilize existing infrastructure and

industrial land, which will enable an early start up due to

available power at the site. The first phase of the project has

a planned Commercial Operation Date in 2025. Discussions

with potential offtakers matured during 2022, and the

company is targeting a final investment decision in 2023.

The Rjukan project is an important frontrunner in Aker

Horizons Asset Development’s portfolio, serving as a blueprint

to de-risk Aker Horizons’ larger projects, such as Narvik,

technically, financially and commercially.

Narvik

Aker Horizons continued to mature opportunities in the Narvik

region, Northern Norway, where the Company has secured

land with an ambition to establish green value chains for

power-intensive industries. Together with the local community,

Aker Horizons aims to leverage access to renewable power to

create green jobs and sustainable export industries.

The Narvik region offers several benefits as a hub, with

access to competitively priced renewable energy, excellent

transport connections for exports, including road, rail and port

facilities, as well as local authorities committed to the energy

transition.

In 2022, the Company initiated several feasibility studies

together with leading EPC and technology providers to further

mature industrial concepts for green hydrogen and green

ammonia.

A joint venture with local energy company Nordkraft was

established to develop sites for power-intensive industries. On

one of the sites, Kvandal, civil and electrical engineering

works were initiated to prepare for industrial development.


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Aker Horizons Annual and Sustainability Report 2022 18

Berlevåg

In Berlevåg, Northern Norway, Aker Horizons and Varanger

Kraft plan to build a green hydrogen and ammonia plant that

could help decarbonize arctic shipping and off-grid power

plants. Strong demand for new grid capacity in the region has

impacted permitting processes and the availability of grid

connections. Against this backdrop, the Asset Development

team and its local partners in 2022 started assessing

opportunities to utilize currently available power in the region,

ahead of a planned 420Kv grid expansion, with the aim of

establishing an updated industrial development plan that

optimizes both the short and long-term potential in the area.

Aukra

In Aukra, North-West Norway, Aker Horizons, CapeOmega

and Shell are working to develop a large-scale production

facility for clean hydrogen, using natural gas from the local

gas processing plant at Nyhamna. The project is a so-called

blue hydrogen development, powered by natural gas with

carbon capture and storage to remove emissions of

greenhouse gases.

The Aukra facility could potentially produce large amounts of

clean hydrogen for export to Europe. In 2022, Aker Horizons

was invited by Gassco, the Norwegian state enterprise for gas

transport, to conduct a joint feasibility study on infrastructure,

including a dedicated pipeline to enable efficient hydrogen

transport from Norway to Germany. The study will be

completed in 2023.

In other developments, Aker Horizons partnered with Statkraft

to explore opportunities for green hydrogen and ammonia

production in India and Brazil, targeting regional steel and

fertilizer markets as well as ammonia exports.

Early in 2002, Aker Clean Hydrogen and Statkraft exited the

Hegra project, which aims to electrify an ammonia facility at

Herøya, Norway. The project continued with site owner Yara

as the sole proprietor.

Chile

In Chile, Aker Horizons and Mainstream are collaborating on

developing a large-scale ammonia production facility with up

to 1,500-3,000 MW of electrolyzer capacity based on

renewable power. Several feasibility studies were conducted

in 2022.

SuperNode

SuperNode is a global technology development company that

designs and delivers superconducting systems to connect

renewable generation and increase grid interconnection in

mature markets. Aker Horizons owns 50.0 percent of

SuperNode.

Last year, the company moved into a new state-of-the-art,

purpose-built technology center – ‘The European Cryogenic

Centre for Superconductors’ (ECCS) – in Dublin, Ireland. It

continued to test its novel designs for superconducting cable

systems, filing three patents. It also published several studies,

including reports showing how a fully-connected Pan-

European Energy transmission system could reduce costs by

32 percent.

SuperNode secured EUR 14 million of additional funding from

owners Aker Horizons and Volnay for further technology

development. The company also attracted EU Horizon

funding for superconductor cable technology and began

market engagement work as part of the SCARLET

Consortium.

The organization grew to more than 50 people during the

course of 2022, as the company made key appointments.


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Aker Horizons Annual and Sustainability Report 2022 19

REC Silicon

Aker Horizons sold all of Aker Horizons’ shares in REC

Silicon, a producer of advanced silicon materials, to South

Korea’s Hanwha Solutions Corporation and Hanwha

Corporation. In two transactions, Aker Horizons sold a total of

91,995,551 shares in REC Silicon at a price of NOK 20 per

share, resulting in total proceeds to Aker Horizons of

approximately NOK 1,840 million. Following completion of the

transaction, Aker Horizons no longer owns any shares in REC

Silicon.

Rainpower

Aker Horizons agreed to sell 100 percent of the shares in its

portfolio company Rainpower, a technology provider to the

hydropower industry, to Aker Solutions Holding AS, a

subsidiary of Aker Horizons’ sister company Aker Solutions

ASA. The transaction was completed during the second

quarter of 2022 at a price of about NOK 100 million.

Subsequent events

In January 2023, Aker Carbon Capture signed a Letter of

Intent with an undisclosed European customer for the delivery

of two Just Catch units. Both units will be part of a project with

a capture capacity of 200,000 tonnes CO₂ per year. The final

investment decision is expected in the second quarter of

2023.

In February 2023, Aker Carbon Capture was awarded a

feasibility study for the development of two carbon capture

plants for Röhm, a leading chemicals manufacturer, to

capture nearly 500,000 tonnes CO₂ per year.

In February 2023, Aker Horizons Asset Development signed a

Memorandum of Understanding with a leading industrial gas

company to jointly mature the Rjukan hydrogen project. The

intention is to sign a Joint Development Agreement and co-

develop the project towards a final investment decision.

In March 2023, Mainstream and Actis completed the sale of

Lekela Power. The transaction will generate net proceeds to

Mainstream of approximately USD 90 million, subject to

certain closing adjustments, with the transaction valued at an

enterprise value of approximately USD 1.5 billion.

Subsequent to the year-end, certain technical Events of

Default in the Andes Renovables portfolio occurred relating to

operational matters in the loan facilities customary for project

finance facilities of this nature. Mainstream is in active

dialogue with the banks relating to obtaining the necessary

waivers and approvals required to resolve the defaults.

Please refer to Note 35 Subsequent events for more

information.

Financial performance

Presentation of annual accounts

Aker Horizons’ annual accounts consist of the consolidated

financial statements and the separate financial statements of

the parent company. Pursuant to section 3-3a of the

Norwegian Accounting Act, it is confirmed that the accounts

have been prepared on the assumption that Aker Horizons is

a going concern and the Board confirms that this assumption

continues to apply.

Group accounts

The main companies included in Aker Horizons’ consolidated

accounts are Mainstream Renewable Power, Aker Carbon

Capture and Asset Development. SuperNode is accounted for

as equity-accounted investees.

During 2022, Aker Horizons sold its shareholding in

Rainpower. Rainpower has thus been presented as a

discontinued operation.

Income statement

The Group had operating revenues of NOK 2.4 billion in 2022,

compared to NOK 1.0 billion the previous year. The increase

reflects more projects coming into operation in Chile, as well

as increased activity at Aker Carbon Capture’s Brevik CCS

and Twence CCU projects. The Group also reported NOK 1.9

billion in other income, which mainly reflects a gain of NOK

1.6 billion generated from the sale of its 24.7 percent

shareholding in REC Silicon and a gain of NOK 143 million

from the sale of its 40 percent shareholding in Aela Energía.

Total operating expenses came in at NOK 5.1 billion in 2022,

compared to NOK 2.4 billion in 2021. The increase reflects

higher activity across the portfolio, as well as losses incurred

by Mainstream due to challenging conditions in Chile’s energy

market in 2022. EBITDA ended at negative NOK 795 million

compared to a negative EBITDA of NOK 1,247 million in

2021.

In 2022, depreciation and amortization amounted to NOK 494

million, an increase of NOK 411 million from 2021. This is

mainly due to more projects coming into operation in Chile

during 2022. In addition, an impairment of NOK 4.4 billion

(NOK 3.6 billion net of tax) was recognized in the year, mainly

for goodwill and intangible assets allocated to the Andes

portfolio in Chile, reflecting a rising interest rate environment

and adverse market conditions.

Net financial expenses totaled NOK 804 million in 2022,

compared to NOK 745 million in 2021. The increase is mainly

explained by higher interest expenses.


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Aker Horizons Annual and Sustainability Report 2022 20

Profit (loss) from equity-accounted investees ended with a

loss of NOK 152 million, compared to a loss of NOK 215

million in 2021.

Discontinued operations relate to Rainpower, which was sold

in the period.

Income tax for the period was positive in the amount of NOK

1.4 billion. NOK 620 million of this derives mainly from

previously unrecognized tax losses offsetting taxable gains on

interest rate swaps. The remaining tax income relates to the

reversal of the deferred tax liability on the intangible assets in

Chile that were impaired in 2022.

The Group made a pre-tax loss of NOK 6.7 billion in 2022,

compared with a loss of NOK 2.3 billion in 2021.

Earnings per share ended at negative NOK 4.03, compared to

negative NOK 3.54 in 2021.

Balance sheet

The Group's total assets amounted to NOK 37.3 billion as of

31 December 2022, compared to NOK 32.6 billion at year-end

2021. Total non-current assets ended at NOK 23.8 billion, up

from NOK 21.1 million in 2021. The Group's total intangible

assets totaled NOK 3.5 billion at the end of the year, down

from NOK 6.8 billion in 2021, as a result of the impairment of

goodwill and intangible assets recognized in Chile. Property,

plant and equipment increased by NOK 3.6 billion, reflecting

high construction activity at the Andes Renovables platform in

Chile.

Current assets totaled NOK 13.6 billion as of 31 December

2021, up from NOK 11.4 billion a year earlier. The change is

mainly due to an increased cash position as a result of the

investment in Mainstream made by Mitsui in April 2022. The

cash position ended the year at NOK 10.8 billion, of which

NOK 2.1 billion is restricted and relates to construction activity

in Chile.

Current liabilities amounted to NOK 3.0 billion, while non-

current liabilities totaled NOK 20.7 billion at year-end 2022.

The corresponding figures for 2021 were NOK 3.5 billion and

NOK 19.1 billion, respectively. The Group's interest-bearing

debt amounted to NOK 20.0 billion as of 31 December 2022,

of which NOK 871 million is current, compared to total

borrowings of NOK 17.6 billion at the end of 2021. The

increase in borrowings is mainly related to increased project

financing related to construction activity in Chile.

The Group's equity ratio was 36.5 percent at the end of 2022,

compared with 30.7 percent at the end of 2021.

Cash flow statement

The Group's cash balance stood at NOK 8.7 billion as of 31

December 2022, net of restricted cash. This is up by NOK 3.3

billion from year-end 2021. The Group’s net cash flow from

operations amounted to negative NOK 3.7 billion in 2022,

compared to negative NOK 1.8 million in 2021. The change

reflects operating losses from power production in Chile, as

well as increased development activities across the portfolio.

Net cash flow from investment activities totaled negative NOK

148 million in 2022, against negative NOK 9.3 billion in 2021.

Capital expenditure ended NOK 329 million lower than in

2021, with proceeds from the sale of REC Silicon and Aela

Energía contributing NOK 3.0 billion in 2022. NOK 460 million

was invested in joint ventures during 2022.

Net cash flow from financing activities amounted to NOK 6.2

billion in 2022, compared to NOK 15.8 billion in 2021. Cash

flow for the year from financing activities is primarily

attributable to proceeds from new borrowings in Mainstream

and from share issues in Mainstream by Mitsui.

Aker Horizons’ accounts

The parent company, Aker Horizons, made a loss for the year

of NOK 420 million, compared to a loss of NOK 177 million in

2021. The operating loss of NOK 22 million mainly reflects

costs related to share issues, listing, audit fees and fees to

the Board of Directors. Net finance costs of NOK 397 million

relate mainly to interest expenses on borrowings and

increased from NOK 145 million in 2021. This is primarily due

to interest costs and lower net dividends from the subsidiary

Aker Horizons Holding AS, which were NOK 10 million in

2022, compared to NOK 400 million in 2021.

Assets totaled NOK 22.2 billion and equity amounted to NOK

15.4 billion at the end of 2022. This represents a 70 percent

equity ratio at the end of 2022 and is in line with 2021.

The parent company had no research and development

activities in 2022. The Group’s R&D activities are presented in

the annual reports of the respective operational portfolio

companies.

Allocation of loss and dividend in Aker Horizons ASA

The Board of Directors has not proposed a dividend payment

for 2022. The net loss for the year of NOK 420 million is

allocated to retained earnings

Management model, corporate

governance, control and compliance

Good corporate governance provides the foundation for long-

term value creation, for the benefit of shareholders,

employees and other stakeholders.

Aker Horizons is a public limited liability company organized

under Norwegian law and with a governance structure based

on Norwegian corporate law, other regulatory requirements

and the guidelines of the Norwegian Corporate Governance

Board (the Norwegian Code of Practice for Corporate

Governance). Aker Horizons is subject to annual corporate

governance reporting requirements under section 3-3b of the

Norwegian Accounting Act and the Norwegian Code of

Practice for Corporate Governance, see section 4.4 of the

Oslo Stock Exchange Rule Book II, rules for issuers listed on

the Oslo Stock Exchange.

Aker Horizons’ Board of Directors consists of five members,

two of whom represent Aker ASA. The majority of the

shareholder-elected board members are independent of

executive personnel and material business associates. The

Chair of the Board is elected by the General Meeting. The

Company’s Audit Committee comprises two independent

board members.

The directors and officers of Aker Horizons ASA are covered

under the Aker group’s Director & Officer’s Liability Insurance

(D&O). This covers personal legal liabilities including defense


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Aker Horizons Annual and Sustainability Report 2022 21

and legal costs. The officers and directors of the parent

company and all subsidiaries globally are covered by the

D&O insurance. The coverage also includes employees in

managerial positions or employees who become named in a

claim or investigation.

The Aker Horizons Board establishes the overall principles for

governance and control in Aker Horizons through the adoption

of governing documents. For issues of importance and with

portfolio-wide relevance, Aker Horizons ensures that relevant

governing documents are implemented in the portfolio

companies, within the framework of Aker Horizons’ own

governing documents. For example, Aker Horizons’ Code of

Conduct also expresses Aker Horizons’ expectations with

respect to the portfolio companies' codes of conduct. The

same is true for areas such as anti-corruption and

sustainability.

Aker Horizons’ corporate governance principles are based on

the Norwegian Code of Practice for Corporate Governance.

The Company's practice is largely in accordance with these

recommendations. The annual statement on corporate

governance for 2022 has been approved by the Board of

Directors and can be found in the Corporate Governance

Report in this annual report.

A summary of Aker Horizons’ human rights due diligence and

related efforts pursuant to the Transparency Act is included in

the Sustainability Report. A full account of due diligence

pursuant to the Transparency Act will, as required by the Act,

be published on Aker Horizons’ website by 30 June 2023.

Board of Directors’ activities

The Board prepares an annual plan for its work, which

includes recurring key topics, such as strategy review,

investment planning, risk and compliance oversight, financial

reporting and budget review. The Board annually evaluates its

own performance and collective expertise. Aker Horizons’

Board of Directors held 10 meetings in 2022, and its Audit

Committee met seven times. Board meeting attendance

averaged 90 percent.

Further information on the mandate and work of the Board of

Directors and Audit Committee can be found in the Corporate

Governance Report. Board members’ shareholdings and

remunerations are presented in the Remuneration Report.

Business and society

Aker Horizons’ business and its impact on people, society and

the environment is presented throughout this report. Aker

Horizons is a planet-positive investment company that aims to

create value for customers, shareholders, employees,

partners and society at large by developing and scaling

companies that solve fundamental challenges to sustainable

existence. As such, sustainability is at the core of Aker

Horizons’ mission and business operations.

Sustainability comprises Environmental, Social and

Governance (ESG) factors and relates to how Aker Horizons

creates long-term value by implementing strategies that

incorporate ESG dimensions. These include environmental

topics, such as biodiversity and circularity; social topics, such

as human rights and local community impacts; and

governance matters, such as responsible business conduct.

Aker Horizons has identified its most material topics through a

materiality assessment, a key building block in Aker Horizons’

sustainability work.

Aker Horizons’ Board of Directors has adopted the

Sustainability Policy that guides the Company’s business

strategy, investment decisions and exercise of its ownership

interests. As an owner, Aker Horizons is committed to

ensuring that its portfolio companies have processes,

solutions and products that are planet-positive and contribute

to sustainable development, thereby providing long-term

value creation for all stakeholders.

Aker Horizons aims to be an attractive employer and a

preferred partner for business associates, as well as a

respected member of society and corporate citizen. Aker

Horizons’ most important contribution to society is to solve

fundamental problems relating to sustainable existence and

create value by developing future-oriented companies that are

run in a responsible manner. Sustainability and profitability

are prerequisites for achieving these goals.

The operating portfolio companies each publish separate

accounts of how they work in the areas of sustainability and

ESG, and how they impact the external environment. Aker

Horizons’ annual report also describes in detail Aker Horizons

and its portfolio’s strategy, progress and performance with

respect to sustainability. For further information, see the

sections Sustainability Strategy and Sustainability Progress

Report.

People

Aker Horizons relies on a specialized and highly-skilled

organization. Attracting and retaining talented employees is

therefore key to realizing the Company’s goals and strategy.

By year-end 2022, a total of 977 employees worked for

companies in which Aker Horizons was the main shareholder,

compared to 1,174 employees at year-end 2021.The

decrease reflects the sale of REC Silicon and Rainpower. The

proportion of women employees increased from 27 percent to

35 percent across the portfolio of companies. The total

workforce stood at 1,135 full-time equivalents (FTE), including

all employees and contract staff, at year-end 2022.

Aker Horizons, including Aker Horizons Asset Development,

consisted of 94 employees and 22 FTE contract staff at year-

end 2022. In addition, Aker Horizons had five employees on


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Aker Horizons Annual and Sustainability Report 2022 22

long-term secondments across its portfolio companies (two

men and three women). These employees are included in the

headcount of the companies for which they work.

Aker Horizons employed 22 different nationalities in 2022. 32

percent of its workforce, excluding contract staff, were

women. Compared to 2021, there has been a decrease in the

percentage of women from 40 percent in 2021 to 32 percent

in 2022. The Company will continue to focus on equality and

diversity in 2023, and increase efforts to secure female

candidates in all recruitment processes.

Aker Horizons embraces diversity and equal opportunities for

all, and is strongly committed to building an inclusive

environment for employees. Aker Horizons’ Sustainability

Policy commits the Company to ensuring equality, diversity

and inclusion throughout its business. Aker Horizons does not

tolerate any form of discrimination on the basis of, for

example, gender expression, sexuality, disability, race or

religious beliefs.

Throughout 2022, Aker Horizons launched several initiatives

to ensure a diverse, equal, and inclusive work environment.

Throughout the month of June, the Company held several

diversity training sessions for its employees, in which several

of the portfolio companies also participated. The sessions

focused on, among other things, raising awareness and

knowledge around unconscious bias and how to build a

workplace that embraces and encourages diversity.

All Aker Horizons’ new hires are onboarded and integrated

into the Company’s way of working. The Company provides

mandatory training on sustainability and compliance. In

addition, continuous industry insights sessions are offered to

all employees on regular basis.

In September 2022, Aker Horizons’ employees were invited to

participate in the Company’s employee engagement survey.

Among a variety of topics, the survey addressed the work

environment, discrimination, equality, and career

opportunities. More than 90 percent of the Company’s

employees took the opportunity to give their feedback.

At Aker Horizons, employees are offered competitive

compensation and reward, as well as varied career

opportunities. There is a substantial amount of on-the-job

training, contributing to knowledge-building and professional

growth. There are also career opportunities across the wider

Aker group of companies.

The Company offers its employees a flexible working model,

with the opportunity to work from home and limited core

hours. By providing flexibility, the Company aims to facilitate a

favorable work-life balance.

Aker Horizons promotes ongoing dialogue between

management and employee representatives in Aker and its

portfolio companies. Aker Horizons and portfolio companies

have participated in meetings with the Global Works Council

(GWC), which includes labor union representatives from

several Aker companies across the world.

Aker Horizons has a procedure for the protection of

whistleblowers’ rights, which sets out the required steps for

reporting and handling whistleblower cases. It ensures all

allegations are investigated and feedback provided to those

whistleblowers whose identity is known. At the end of 2022,

no cases related to discrimination or other violations of the

Code of Conduct had been reported at Aker Horizons.

The health of Aker Horizons’ staff is important, and the

Company offers healthcare and insurance plans, a wellness

program and access to an on-site fitness center. In addition,

employees have access to an on-site health and wellness

center, with access to a physician, health counseling, and

medical treatment. In 2022, the total rate of absence due to

illness at Aker Horizons, including Aker Horizons Asset

Development, came to 1.29 percent.

Health, Safety, Security and

Environment (HSSE)

Aker Horizons’ Sustainability Policy lays out the foundations

for the Company’s approach to health and safety. This

document describes Aker Horizons’ commitment to ensuring a

secure working environment that provides a basis for a

healthy and meaningful working situation, and that affords

complete safety from harmful physical and mental influences.

Furthermore, Aker Horizons strives for zero harm and

continuous improvement throughout the value chain.

All Aker Horizons’s portfolio companies and business units

manage their own health and safety. As an active owner, Aker

Horizons sets clear expectations for high HSSE standards,

including adequate work-related hazard identification, risk

assessment, incident investigation, control and reporting

routines. All of Aker Horizons’ portfolio companies report to

Aker Horizons on health and safety issues on a quarterly and

annual basis. Aker Horizons expects its portfolio companies to

extend the Company’s high HSSE standards not only to their

own employees and contractors, but to their business

partners as well.

Aker Horizons’ wholly-owned asset development arm, Aker

Horizons Asset Development, has a separate HSSE policy,

which describes its commitment and behaviors across

operations. Furthermore, in 2022 Aker Horizons Asset

Development built a management system according to ISO

45001 and 14001 to support its project development and

future operations.

Aker Horizons’ portfolio companies are industrial developers

of green energy and infrastructure. They have established

sound management systems and obtained certifications to

mitigate risk, avoid serious incidents, control and close


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Aker Horizons Annual and Sustainability Report 2022 23

nonconformances, and report in pursuit of continuous

improvement. A detailed description of management

processes at the level of Aker Horizons’ portfolio can be found

in the section Management systems under Responsible

business conduct in the Sustainability Progress Report.

No work-related fatalities were registered across Aker

Horizons’ portfolio companies in 2022. There were four work-

related injuries (TRIs) reported among the Aker Horizons

Group’s employees, of which three were lost-time injuries

(LTIs). Among contractors, there were nine work-related

injuries, six of which were lost-time injuries (LTIs). Not

included in the TRIs are First Aid Cases, which are tracked by

Mainstream as per the industry standard, and amounted to

five among employees and 12 among contractors and hired-

ins.

The Company has established an emergency preparedness

and response capability. Aker Horizons is connected to the

Aker Global Security Operations Center. This core team of

security professionals operates a 24/7 center, servicing all

Aker group companies. Aker Horizons has adopted a crisis

management plan and implemented RAYVN, a cloud-based

system for managing critical events. The roll-out of the system

includes introductory training sessions and desktop drills for

key staff and management.

For further information, see the section on Health, safety and

well-being in the Sustainability Progress Report.

Risks and risk management

Aker Horizons is exposed to financial risk, in addition to

strategic, market and regulatory risk, legal and compliance

risks, climate risk, and project and operational risks in the

portfolio companies. If one or more of these risks materialize,

it will impact the operations of the Company and may delay or

even prevent the Company from reaching its goals and

ambitions.

The Company has established a process to assess and

monitor these risks, both at a group level and in relation to the

portfolio companies’ operations. In 2022, it adopted an

enterprise risk management procedure. Risks and how they

are managed are reported to Aker Horizons’ Board on a

regular basis. Mitigating actions are devised for key risks and

their implementation is verified and monitored.

Aker Horizons considers risk assessment to be a natural part

of all business operations and works continuously to identify

and address risks. Management of project and operational

risk lies primarily with the portfolio companies, but Aker

Horizons monitors and follows up risk through regular

dialogue with portfolio companies’ managements and through

participation on their boards.

Aker Horizons depends on functioning debt and equity

markets to fund the growth of its portfolio and realize projects.

Aker Horizons and its portfolio companies seek to reduce risk

by maintaining a solid liquidity reserve, by proactively

planning refinancing activities, and by diversifying sources of

funding.

Developments in the global economy, particularly in energy

and carbon prices, inflation and interest rates, affect the

group’s ability to secure and realize attractive projects, and

influence the underlying value of Aker Horizons' assets.

Immature technologies and supply chains pose a risk to

securing bankable offtake agreements and project financing.

Mainstream, which operates in growth markets with a high

degree of market and regulatory uncertainty, is dependent on

a favorable regulatory framework, in addition to its

technologies and solutions being cost competitive to gain

widespread market acceptance. Public policy engagement is

a key element of risk management in this respect and

involves contributing to public discussions on the best policies

and measures needed to tackle climate change and energy

market volatility.

Undertaking large and complex projects, including in

emerging economies, Aker Horizons’ portfolio companies are

also exposed to project execution risk, dependency on key

suppliers and sub-suppliers, as well as market-specific risks

related to market design, grid infrastructure and permitting.

During 2022, Aker Horizons intensified its work related to the

assessment of climate-related risks and their implications. As

the Group’s purpose is to develop green energy and green

industry to accelerate the transition to net zero emissions,

Aker Horizons’ main transition risks are associated with the

global ambition/implementation gap, and with the transition

being implemented too slowly or incompletely. While there

was a surge in new climate policy announcements in 2022,

market risk increased, which may limit or delay the impact of

policies, coupled with a rise in novel challenges relating to the

speed of implementation. Succeeding with the energy

transition requires a massive growth in energy generation

assets, but also large investments in transmission and

storage systems. Inadequate policy design and a non-

synchronized development may delay the overall speed of the

transition. Regional variations in ambition and implementation

speed also pose the risk of capital and resources being

allocated incorrectly.

For further information, as well as details on how Aker

Horizons identifies and manages climate-related risks, see

the TCFD assessment. For further information on Aker

Horizons' work with risk management and internal control, see

the report on Corporate Governance.


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Outlook

2022 was a dramatic year for the energy sector. The Russian

invasion of Ukraine triggered major disruptions to global

energy and technology supply chains. On the back of the

energy crisis came a stream of new policy announcements

designed not only to address energy security and climate

issues, but also to boost industrial competitiveness.

The Inflation Reduction Act (IRA) in the United States is a

clear articulation of this. This comprehensive and ambitious

package of legislation is expected to generate record growth

in investments in renewables, clean tech and energy supply

infrastructure in the next decade. Other countries, including

Japan, India, China and Canada, have also introduced strong

policy packages aimed at accelerating investments in clean

energy in the years to come.

In response to the IRA, the EU unveiled the Green Deal

Industrial Plan in February 2023. The plan aims to speed up

the expansion of renewable energy and green technologies.

and introduces a new production support scheme for green

hydrogen, designed to have a similar impact as that of the

IRA.

The industry did face headwinds in 2022, with supply chain

constraints, inflation and interest rates slowing the

development of renewables globally. Going into 2023, Aker

Horizons expects a normalization of commodity prices,

shipping rates and supply chains. Combined with increasing

PPA prices, this normalization should lead to an improvement

of the return profile of projects, which will in turn accelerate

investments in renewables projects.

The favorable policy developments support a positive outlook

for the energy transition towards 2030. According to the IEA,

the world is set to add as much renewable power in the next

five years as it did in the past 20. The increase is 30 percent

higher than the IEA forecasted just a year earlier. According to

these numbers, renewables are set to account for over 90

percent of global electricity expansion over the next five

years. BloombergNEF (BNEF) expects clean power capacity

additions to increase by at least 18 percent in 2023, reaching

another all-time high of more than 450 GW.

Hydrogen is also benefiting from new policy schemes. The

EU’s target of 20 million tonnes of renewable hydrogen supply

by 2030 is about twice the level of today’s almost entirely

natural gas-based hydrogen production, which poses both an

energy security risk and is a source of significant CO₂

emissions. Reaching this target will also provide hard-to-

abate sectors such as steel with clean and secure energy

supply.

The outlook for the CCS industry has been strengthened by

the strong incentives introduced in the US, which will notably

create more opportunities for blue hydrogen. In the EU, the

CCS industry has been bolstered by higher carbon spot

prices, more bullish price forecasts and better protection

against “carbon leakage”— the relocation of EU-based

production (and associated emissions) to countries with less

stringent climate policies — through the carbon border

adjustment mechanism (CBAM). The new carbon border tax¸

which enters into force in 2026, requires that EU importers

purchase CBAM certificates for each tonne of carbon emitted

during production. Initially, it will cover imports of high-emitting

carbon goods, such as aluminum, iron, steel, electricity

generation, cement and fertilizers. Plans to extend it further

are underway. The price of carbon will be aligned with the EU

Emissions Trading System (ETS).

Amid the rapidly changing market environment, Aker Horizons

will continue to focus on its core segments — renewables,

carbon capture and hydrogen hubs — and keep progressing

on prioritized projects, while maintaining financial discipline in

investment decisions to preserve its solid liquidity position.

Fornebu, 17 March 2023

Board of Directors and CEO of Aker Horizons ASA



Øyvind Eriksen	Kjell Inge Røkke	Lone Fønss Schrøder	Lise Kingo	Auke Lont	Kristian Røkke
Chair (non-independent)	Director (non-independent)	Director (independent)	Director (independent)	Director (independent)	CEO


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Aker Horizons Annual and Sustainability Report 2022 25

Board of Directors

Øyvind Eriksen

Chair (non-independent)

Øyvind Eriksen (born 1964) is President and CEO of Aker ASA and holds a law degree from the

University of Oslo.

Mr. Eriksen has held several board positions in different industries, including shipping, finance, asset

management, offshore drilling, fisheries, media, trade and industry.

Mr. Eriksen currently chairs several of the boards of the Aker group’s industrial and financial

businesses. In addition, Mr. Eriksen serves on the boards of a number of non-profit organizations,

including the Norwegian Cancer Society, Accenture Global Energy Board and the World Economic

Forum C4IR Global Network Advisory Board.

As of 31 December 2022, Mr. Eriksen holds 285,714 shares in Aker Horizons (excluding indirect

ownership through his indirect holding of 219,072 shares in Aker ASA, the parent of Aker Capital, and

100,000 B-shares in TRG Holding AS), and has no stock options. Mr. Eriksen is a Norwegian citizen.

He has been elected for the period 2021-2023.

Lise Kingo

Director (independent)

Lise Kingo (born 1961) is a professional board director, chair and public speaker. Ms. Kingo is an

experienced senior executive with more than 30 years of experience from executive management,

sustainability, climate, and responsible business conduct. She is former CEO of the United Nations

Global Compact, and former Executive Vice President of Novo Nordisk A/S. She currently also holds

board positions at Sanofi SA (France), Danone SA (France) and Covestro AG (Germany). Ms. Kingo is

also chair of the Leonardo Centre for Business in Society, Imperial College London, and a member of

the Advisory Board for Humanitarian and Development Aid at the Novo Nordisk Foundation.

Ms. Kingo holds a bachelor’s degree in Religions and Ancient Greek Art from the University of Aarhus

in Denmark, a bachelor’s degree in Marketing and Economics from the Copenhagen Business School

and a master’s degree in Responsibility and Business Practice from the University of Bath in the UK.

She is also certified as a director by INSEAD.

As of 31 December 2022, Ms. Kingo holds no shares in Aker Horizons, and has no stock options. Ms.

Kingo is a Danish citizen. She has been elected for the period 2021-2023.


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Board of Directors

Auke Lont

Director (independent)

Auke Lont (1958) is a professional board director, chair and

former business leader. Mr. Lont’s professional interest lies in

electrification, directly and through green ammonia and hydrogen,

to accelerate the decarbonization of industry. With 30 years of

international experience, he has held board positions in Bane

NOR, Spekter, Nova Naturgas and Gasunie. He has also chaired

the Institute for Energy Technology (Halden) and served as a

member of the Energy Transitions Commission. He is currently a

director of the carbon offset company Carbon Limits Invest, .

Mr. Lont has extensive experience as a senior executive. He is a

former CEO of Naturkraft AS, SVP Statoil (Equinor) Nordic

Energy and CEO of Econ, an energy consulting company. From

2009 to 2021, he was CEO of Statnett SF when it embarked on a

historic expansion of the Norwegian national grid.

Mr. Lont holds a bachelor’s degree in Mathematics and a Master

of Science in Econometrics from the Vrije Universiteit in

Amsterdam. He was also awarded a scholarship from the

Norwegian Ministry of Foreign Affairs and worked as a research

assistant at the Norwegian School of Economics and Business

Administration in Bergen.

As of 31 December 2022, Mr. Lont holds no shares in Aker

Horizons, and has no stock options. Mr. Lont is a Dutch citizen.

He has been elected for the period 2021-2023.

Kjell Inge Røkke

Director (non-independent)

Kjell Inge Røkke (born 1958) is Aker ASA’s main owner. He has

been a driving force in the development of Aker since the 1990s.

Mr. Røkke launched his business career with the purchase of a

69-foot trawler in the United States in 1982, and gradually built a

leading worldwide fisheries business. In 1996, the Røkke-

controlled company, RGI, purchased enough Aker shares to

become Aker’s largest shareholder, and later merged RGI with

Aker.

Mr. Røkke is currently chair of The Resource Group TRG AS,

TRG Holding AS, and Aker ASA, as well as director of several

companies, including Aker BP ASA, Aker Solutions ASA, Aker

Horizons ASA, Aker BioMarine ASA, Cognite AS, SalMar Aker

Ocean AS and Aker Mainstream Renewables AS.

As of 31 December 2022, Mr. Røkke holds no shares in Aker

Horizons, and has no stock options. Mr. Røkke is the ultimate

beneficial owner of Aker ASA (through its subsidiary Aker Capital),

the Company’s majority shareholder, and thereby holds a

controlling indirect ownership interest in the Company. Mr.

Røkke’s son, Normann Eidsvig Røkke, owns 2,500 shares in Aker

Horizons. Mr. Røkke is a Norwegian citizen. He has been elected

for the period 2021-2023.

Lone Fønss Schrøder

Director (independent)

Lone Fønss Schrøder (1960) is an entrepreneur, business leader

and advisor, and senior executive. She is also an experienced

board director and chair. Her areas of expertise are digital

transformation, new business models, corporate strategy, bank

and capital markets, sustainability and blockchain technology. Ms.

Fønss Schrøder is currently vice-chair of Volvo Cars AB and chair

of its audit committee, and a director of Geely Sweden Holdings

AB and Ingka Holding B.V. (Ikea Group). Ms. Fønss Schrøder has

more than 30 years of international senior executive experience in

the A.P. Møller-Maersk group and Wallenius Lines AB. She is an

experienced director with current or former board positions in

companies like Akastor ASA, Aker Solutions ASA, Queen’s

Gambit Growth Capital (SPAC), Geely Sweden Holdings AB and

CSL Group, Inc. Ms. Fønss Schrøder holds two master’s

degrees: a Master of Law (LL.M.) from the University of

Copenhagen, and a Master of Science in Economics and

Business Administration from Copenhagen Business School. She

has also studied aviation and insurance law at the Polytechnic of

Central London (now University of Westminster), blockchain at

MIT Sloan School of Management, and management at IMD

Business School.

As of 31 December 2022, Ms. Fønss Schrøder holds no shares in

Aker Horizons, and has no stock options. She is a Danish citizen.

She has been elected for the period 2021-2023.


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Aker Horizons Annual and Sustainability Report 2022 27

Aker Horizons’

Approach to Sustainability

This section introduces Aker Horizons’ work on sustainability

from a strategic, forward-looking perspective. The section

touches upon the policy, ambitions and strategy, and external

commitments, that underpin Aker Horizons’ sustainability

ambitions, as well as the materiality assessment that guides

and informs our work.


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Aker Horizons Annual and Sustainability Report 2022 28

Aker Horizons’ Sustainability Policy

Aker Horizons is dedicated to developing green energy and green industry to accelerate the transition to net zero emissions. The Company’s aim is to reduce greenhouse

gas emissions and promote sustainable living, while providing substantial value creation over time through active ownership. This is reflected in the company’s policies,

ambitions and strategy, which are embedded at the highest levels of governance in the organization.

Aker Horizons’ Sustainability Policy is approved by the Board of Directors, and governs

environmental, social and governance (ESG) aspects of Aker Horizons’ own performance and

investment decisions, as well as its role as an owner of companies. The policy has been

developed to meet all relevant regulations and expectations, including the Norwegian

Transparency Act, which came into force in 2022.

The following frameworks are core to Aker Horizons’ Sustainability Policy and guide how Aker

Horizons defines planet-positive impact and integrates sustainability in its work:

•The UN Sustainable Developments Goals and the UN Global Compact SDG implementation

framework

•The nine planetary boundaries as defined by the Stockholm Resilience Center

•EU’s Sustainable Finance Package, including the EU Taxonomy Regulation, the Sustainable

Finance Disclosure Regulation and the Corporate Sustainability Reporting Directive

•The OECD Guidelines for Multinational Enterprises and the UN Global Compact1

•The Task Force on Climate-Related Financial Disclosure

The Sustainability Policy lays the foundations for Aker Horizons’ incorporation of sustainability

considerations into its activities, to ensure sustainable and responsible business practices. The

policy is structured around four key topics: Planet-positive impact, Respect for people, Prosperity

for all and Good governance. The Sustainability progress report follows the same structure.

For Aker Horizons, it is important that the Company’s employees are well acquainted with the

Sustainability Policy and its contents. Aker Horizons’ employees are offered sustainability

onboarding that covers a walk-through of the policy. This is currently in the process of being

expanded to the employees of Aker Horizons Asset Development, following the merger between

Aker Clean Hydrogen and Aker Horizons in 2022.

For further details on the policy’s content and commitments, please see the Aker Horizons’

Sustainability Policy, which is available on Aker Horizons’ website.

In addition to the Sustainability Policy, Aker Horizons has an anti-corruption policy and a Code of

Conduct that relate specifically to ethical business practices and compliance with laws and

regulations. Furthermore, in 2022, Aker Horizons developed and adopted a Business Partner

Code of Conduct, which set out minimum standards for business practices, as well as joint

ambitions on central environmental, social and governance (ESG) topics. The Business Partner

Code of Conduct has been developed as a foundation for engagement with various groups of

business partners, including but not limited to, suppliers, customers, service providers, joint

venture partners or other persons engaging in business with members of the Aker Horizons

group.

Both the Code of Conduct and the Business Partner Code of Conduct are available on Aker

Horizons’ website.


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1 Since 2021, Aker Horizons has been committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labor rights, the environment, and anti-corruption.

Aker Horizons’ Strategy for Achieving

Sustainability Impact

Aker Horizons takes a multidimensional approach to sustainability impact, which is reflected in all

aspects of the company’s sustainability work. The company’s strategy focuses on maximizing

positive impacts by expanding activities and prioritizing sustainability impact when assessing

projects and making investment decisions. At the same time, the company strives to minimize

the footprint of such expansion and requires that account be taken of potential and actual

negative impacts across an array of sustainability topics. Aker Horizons’ main focus is to find

solutions that drive decarbonization globally, while simultaneously taking concrete steps to

mitigate adverse impacts by safeguarding nature, ensuring social safeguards, and exploring low-

carbon and circular solutions in its own value chain.

Sustainability impact and the Sustainable Development Goals

As a company that develops green energy and green industry to accelerate the transition to net

zero emissions and promote sustainable living, Aker Horizons assumes a role and responsibility

in delivering on the UN Sustainable Development Goals (SDGs). Companies that integrate these

common goals into their business operations, strategy and targets not only provide sustainable

value for all stakeholders, but are also more resilient and better positioned in the market and for

future opportunities.

Aker Horizons recognizes the importance of all 17 Sustainable Development Goals and aspires

to contribute to all of them. However, Aker Horizons prioritizes eight SDGs in which its

investment philosophy is anchored.

Levers for sustainable impact

Aker Horizons realizes its sustainability ambitions at multiple levels of its work. The

company is an owner of industry-leading companies driving decarbonization and

sustainable development, a developer of projects converting renewable energy into

clean hydrogen and its derivatives, and an investor looking to identify new opportunities

that contribute to Aker Horizons’ mission of being planet-positive. As a result, Aker

Horizons’ sustainability impact can be realized via two main levers:

Business development and investments

Responsible value creation and sustainability are at the core of Aker Horizons’

investment strategy. The Company’s main guiding document in this respect is its

Sustainability Policy. A key task when assessing any investment opportunity is to

establish how the opportunity contributes to Aker Horizons’ planet-positive mission and

subsequently to identify any adverse impacts it may have. This approach improves the

resilience of Aker Horizons’ portfolio investments and ensures the ultimate positive

impact on people and the planet. The investment approach is designed to ensure that

Aker Horizons invests in companies with a planet-positive core business, which

operate in a responsible manner and whose business development model incorporates

a strategy for sustainable growth.

Active ownership

The Sustainability Policy guides Aker Horizons’ behavior as a company and employer,

and as an owner of companies. Aker Horizons seeks to engage with its portfolio

companies to ensure long-term value creation. As an active owner, Aker Horizons

strives to incorporate sustainability aspects into ownership practices and monitors the

performance and progress of portfolio companies through formal reporting (quarterly

and annually), as well as through continuous dialogue. Aker Horizons strives to ensure

that the companies it develops and owns:

•Have a mission to solve fundamental challenges to sustainable existence

•Have clear, forward-looking ambitions and a strategy that ensures real planet-

positive impact

•Have sustainability-related guidelines, processes and controls in place

•Perform sustainability and climate scenario risk analyses, and monitor their

own performance

•Transparently report on ESG issues and engage with all relevant

stakeholders


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Aker Horizons and its portfolio has originated NOK

24.7 billion in green investments

This amounts to 25 percent of Aker Horizons’ 2025

green investment ambition

Progress is primarily driven by Mainstream

Renewable Power (88 percent)

Ambitions for Planet-positive Impact

Aker Horizons has set ambitious and time-bound strategic goals for its positive impact through the expansion of planet-positive activities. Below are the ambitions the Company has set for 2025 and the

progress made towards achieving them in 2022. For details on the calculation method for these ambitions, please see the section Transparent Reporting.

1.Measuring total capital investments, projects in operation and construction and annual emissions reduction from projects in operation and construction respectively (as defined by Aker Horizons’ accounting policy), originated by Aker Horizons Group

companies, before sell-downs. For other projects, Aker Horizons Group companies’ pro rata share of projects has been applied.

2.The 25 Mt CO2e ambition consists of two main elements: 10 Mt CO2e of emissions reductions enabled through CCUS and ~15 Mt CO2e from avoiding emissions in electricity generation. Both elements include Aker Horizons’ projects in operation and in

construction (as defined by Aker Horizons’ accounting policy) – taking into account an expected/estimated/observed capacity factor. The approach is based on the current draft of the GHG Protocol and may be updated in the future.


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100+

bn NOK in green

investments1

Aker Horizons’ portfolio has 1.58 GW of renewable

power capacity (both in construction and operation)

This amounts to 16 percent of Aker Horizons’ 2025

renewable power capacity ambition

Progress is solely driven by Mainstream Renewable

Power

10GW

in renewable

energy capacity

Aker Horizons’ portfolio of secured projects

contributes to annual emissions reductions of 2.62

million tonnes of CO2e

This amounts to 10 percent of Aker Horizons’ 2025

emissions reduction ambition

Progress is driven by the development in Mainstream

Renewable Power’s (81 percent) renewables portfolio,

and Aker Carbon Capture’s (19 percent) CCS contract

awards

-25 Mt

CO2e p.a.

emissions

reduction2

Ambitions for Minimizing Footprint

As part of the commitment to reaching Net Zero, Aker Horizons has also set ambitious goals for minimizing its carbon footprint before 2025. Below, the ambitions and the progress towards achieving

them are presented. Since 2021, Aker Horizons has revised its carbon accounting methodology to account for the main portfolio companies’ emissions as Aker Horizons’ own, in accordance with the

Financial Control approach of the Greenhouse Gas Protocol. This method for carbon accounting is in line with the financial accounts. For further details on the calculation method, please see the section

Transparent Reporting. The ambitions have not yet been updated according to the new accounting approach, as setting relevant science-based targets is on the Company’s agenda for 2023. For this

reason, progress towards the ambitions is not measured.

1. Under the financial control approach, only investments that are not financially controlled (and consolidated in the financial accounts) may be included in Scope 3. Under the equity share approach, investments where the reporting company has neither financial

control nor significant influence over the emitting entity (and typically has less than 20 percent ownership) are included in Scope 3.


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Scope 1 emissions are direct emissions from owned

or controlled sources, and Aker Horizons’ original

ambition is absolute zero emissions from 2020

While Aker Horizons’ own operational Scope 1

emissions are zero, the accounting adaptation has

led to the financially consolidated Scope 1 to be

771.90 tonnes CO2e

Scope 2 emissions are indirect emissions from the

generation of purchased energy

Aker Horizons’ original ambition is to reach 100

percent renewable energy purchased

While Aker Horizons’ own operational energy use

was 99 percent renewable (location-based) , the

accounting adaptation requires a change. The

financially consolidated Scope 2 emissions were

5,576 tonnes (location-based) or 5,690 tonnes

(market-based). Overall energy consumption was 17

percent renewable, but this figure includes both

Scope 1 and Scope 2.

Scope 3 emissions are all indirect emissions that

occur in the value chain of the reporting company,

including investments¹

Aker Horizons’ original ambition is for 100 percent of

portfolio commitment to have a commitment to Net

Zero and/or the Science-Based Targets initiative.

All of Aker Horizons’ financially-consolidated portfolio

companies have a Net Zero commitments, but none

have approved Science-Based Targets in place yet.

Aker Horizons’ financially consolidated Scope 3

emissions were 21,462 tonnes (location-based) or

21,476 tonnes (market-based).

Scope 1

Absolute

Zero

Scope 2

100%

renewable energy

Scope 3

100%

Portfolio commitment to

both Net Zero

and SBTi1

Ambitions for Profitable Growth

Aiming to deliver attractive

returns to shareholders

Aker Horizons aims to deliver a total

shareholder return2 in excess of 15

percent over the business cycle.

Project returns exceeding the cost of

capital and capital recycling for its

portfolio companies are set to deliver

part of the shareholder return target,

while incubation of new platforms,

business development and M&A are

set to make up the remaining part of

Aker Horizons’ return target.

Impactful investments in

decarbonization projects

Ambition to invest NOK 100 billion in

green investments by 2025.3

Moderate net debt to

net asset value

Targeting a net loan to value (LTV)

within investment grade levels4

through the cycle.

Dividend ambition

Aker Horizons has a clear long-term

ambition to become a dividend-

yielding company. To reach its global

decarbonization ambitions and build

scale at the operational level, Aker

Horizons will, in the short term,

prioritize growth over dividends.

Building scale will enable self-

sustained growth alongside dividend

capacity, and is consequently seen as

critical to maximizing shareholder

value ahead of the initiation of

dividends from portfolio companies.


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2 Shareholder return calculated as increase in NAV plus dividends

3 Total capital investments originated by Aker Horizons Group companies, before sell-downs. For other projects, Aker Horizons Group companies' pro rata share of projects

4 Net LTV below 35%

External Commitments and Initiatives

Aker Horizons has committed to several sustainability initiatives. External commitments and initiatives help to anchor sustainability ambitions

within the organization, guide sustainability governance and implementation, and send a strong external signal of commitment. Aker Horizons

continuously considers commitments and initiatives that are best adapted to the reality and needs of the company, to reflect its sustainability

ambitions as well as its strategy and sustainability impact levers.

UN Global Compact

Aker Horizons is committed to the UN Global Compact

corporate responsibility initiative and its principles in the areas

of human rights, labor rights, the environment and anti-

corruption.

Sustainable Ocean Principles

In 2022, Aker Horizons became a signatory of the Sustainable

Ocean Principles of the UN Global Compact Ocean

Stewardship. The principles build upon and supplement the

Ten Principles of the United Nations Global Compact, and

highlight the company’s commitment to healthy and

productive oceans.

The Carbon Disclosure Project (CDP)

2022 disclosing company

In 2022, Aker Horizons reported to the CDP initiative for the

first time, and received a rating of A-. CDP is a not-for-profit

charity that runs the global disclosure system for investors,

companies, cities, states and regions, which helps them to

manage their environmental impacts. It is one of the most

important global initiatives for disclosures on climate-related

impact, strategy, risks and opportunities.

Race to Zero

Business Ambition for 1.5°C

Aker Horizons has been committed to the Science Based

Targets initiative (SBTi) since the beginning of 2022. Due to

the changes to Aker Horizons’ carbon accounting

methodology in 2022, the process of developing and

submitting targets for approval has been put on hold and is

planned to be reinitiated in 2023.

By committing to the Science Based Targets initiative and

establishing the ambition to set long-term science-based

targets to reach net zero and align its business with a 1.5°C

future, Aker Horizons is also recognized as part of the

Business Ambition for 1.5°C and the Race to Zero campaigns.


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“I hereby express Aker

Horizons’ continued

commitment to the UN Global

Compact corporate

responsibility initiative and its

principles in the areas of human

rights, labor, the environment

and anti-corruption.”

Kristian M. Røkke,

CEO of Aker Horizons

Materiality Assessment

Materiality assessment as a building block

The materiality assessment is a key building block in Aker

Horizons’ planet-positive work. It enables the Company to

stay up to date on sustainability, corporate strategy and

risk management issues by providing insight into current

business trends, stakeholders interests, and potential risks

and opportunities to Aker Horizon’s business. By focusing

its sustainability work on material issues, Aker Horizons

gains a comprehensive insight into the Company’s impact,

both actual and potential, and maximizes its positive

impact on the environment and society.

While stakeholder engagement and materiality assessment are

continuous processes at Aker Horizons, material topics are reviewed

annually to ensure that they accurately reflect Aker Horizons’ current

business situation.

At the end of 2022, Aker Horizons conducted an independent

sustainability materiality assessment, which included the activities of its

portfolio companies. The materiality assessment has been conducted as

described in the new EU requirements under the upcoming Corporate

Sustainability Reporting Directive (CSRD).


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Preparing for emerging regulation

The EU’s upcoming Corporate Sustainability Reporting Directive (CSRD)

introduces mandatory reporting according to the European Sustainability

Reporting Standards (ESRS). Aker Horizons will be obliged to report in

accordance with the ESRS in 2025 for the reporting year 2024. In the process of

preparing for the reporting requirements under the EU’s CSRD, Aker Horizons

decided to conduct its materiality assessment in accordance with the upcoming

regulations. The adopted approach follows the concept of double materiality.

Double materiality - two interrelated dimensions of materiality

Currently, the CSRD has refined the concept of sustainability materiality by

introducing “double materiality”. Double materiality acknowledges that businesses

should assess both the risks and opportunities linked to ESG topics that can

influence enterprise value creation (“outside-in”) and the ESG impacts that a

company can have on the planet and society (“inside-out”). Impact materiality and

financial materiality assessments are interrelated and Aker Horizons has

considered the interdependencies between these two dimensions of its impacts in

the process of materiality assessment.

Materiality process and approach

The materiality assessment process was based on a four-step approach:

Identifying impacts, risks and opportunities, prioritizing topics, validating and

approving material topics and implementation. The process was conducted by an

independent party with a series of internal workshops and interviews, and was

informed by internal and external sources, such as portfolio companies,

stakeholder engagement, and external benchmarking. While gathering feedback

and insight from stakeholder engagement, Aker Horizons considered two groups

of stakeholders: affected stakeholders and users of sustainability statements. For

detailed information on Aker Horizons’ stakeholder engagement in 2022, please

see the table in the Appendix.

The process incorporated input from a wide variety of internal functions, including

Sustainability, Communications and External Relations, Risk, Finance, Investor

Relations, People and Organization, Investments, and Insights and Market

Analysis. The outcome of the analysis was validated internally by the Risk and

Sustainability functions and approved by the CFO and CEO as well as submitted

to the Audit Committee.

The following list of material topics emerged from the materiality assessment’s

application of the double materiality concept (both impact and financial). The

Sustainability Progress Report presents material topics from the perspective of

their impact. Financial materiality, highlighting ESG risks and opportunities that

could potentially impact Aker Horizons’ corporate value, is reflected in the Board of

Directors' Report.


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Aker Horizons’ Material Topics


	Material topic	Impact materiality	Financial materiality	How Aker Horizons understands the topic
Planet	Climate change			Mitigating and adapting to climate change through climate risk management and carbon capture technologies.
	Energy			Using energy responsibly and investing in renewable energy production and technologies.
	Biodiversity			Minimizing adverse impacts on biodiversity in supply chains and own operations.
	Circular economy			Sound resource utilization in our supply chains and realization of the circular economy.
People	Human and labor rights			Respecting human and labor rights, and protecting vulnerable individuals and groups of people affected by our business.
	Health, safety and well-being			Working systematically for health, safety and well-being while striving for zero harm and continuous improvement throughout the value chain.
	Diversity, equality and inclusion			Building a diverse and inclusive workforce focusing on equal opportunities.
	Talent attraction			We rely on a highly specialized workforce, and recruiting and retaining skills and talent is of particular importance to us.
Prosperity	Local communities			Building trust among the local communities in which we operate. We support local, cultural and welfare initiatives.
Governance	Responsible business conduct			Acting responsibly in all areas of business. Protecting whistleblowers, avoiding corruption and bribery, and promoting a responsible corporate culture.
Governance	Public policy engagement			Engaging with regulators to share knowledge, showcase available technology solutions to reduce emissions, and communicate the need for efficient support schemes for solutions that are initially dependent on government support.

Low Medium High


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Sustainability Progress Report

Aker Horizons has high ambitions for its business and

portfolio companies within the area of sustainability. This

section takes a deep-dive into the 2022 status and progress

of sustainability in Aker Horizons and its portfolio.

This section presents four overarching topics, based on the

World Economic Forum's (WEF) Stakeholder Capitalism

Metrics: Planet-positive impact, Respect for people,

Prosperity for all and Good governance. It also reflects on

Aker Horizons’ material topics. In addition to presenting

progress across these four main topics, this section also

contains individual sustainability summaries for the Aker

Horizons Group companies, a one-page summary of the

portfolio-wide status of the Principal Adverse Impact

Indicators, and an EU Taxonomy assessment of Aker

Horizons’ investments.

For more information about the scope of the sustainability

data collected and presented, and the methodologies used,

see the section Transparent Reporting.


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Planet-Positive Impact

Aker Horizons is dedicated to developing green energy and

green industry to accelerate the transition to net zero

emissions. Understanding the impact of Aker Horizons and its

portfolio companies on the climate and environment is viewed

as key not only to understanding and minimizing adverse

impacts, but as a guide to our efforts to contribute positively

to sustainable development.

In this chapter, four material topics have been identified for

Aker Horizons:

•Climate change

•Energy

•Biodiversity

•Circular economy


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Climate change

Aker Horizons’ overall business and strategy is founded on a commitment to create a planet-positive impact by developing green energy and green industry.

This is anchored in a motivation for climate action and a drive to accelerate the achievement of Net Zero.

Aker Horizons’ approach and performance

2022 marked another year of stark climate warnings. The UN

Secretary General went as far as stating that we are “on a

highway to hell” if further action on climate change mitigation

is not immediately implemented.5 Aker Horizons is committed

to addressing its climate impact and climate-related risk, both

through strategic ambitions for the expansion of planet-

positive activities and goals for reducing emissions from our

activities.

Aker Horizons’ strategy for value creation is centered around

developing and accelerating solutions that lead to the

decarbonization of society. The company has a specific focus

on hard-to-abate industries, by focusing on renewable energy

and electrification, carbon capture and hydrogen.

Governance

Aker Horizons’ commitment to climate action is embedded in

the company’s governing structure and is reflected in its

Board-approved Sustainability Policy. In this governing

document, the commitment to scaling and commercializing

climate solutions is set out. In accordance with its

Sustainability Policy, Aker Horizons is committed to

organizing its business activities such that its associated

emissions are in line with the UN Framework Convention on

Climate Change (Paris Agreement) and the 1.5-degree

trajectory.

Aker Horizons has active Board oversight of climate-related

matters, and the Company’s Audit Committee is mandated to

oversee the management of sustainability and climate risks

and opportunities, key performance indicators, and their

relevance to corporate performance. Once a year,

management presents the Audit Committee with the latest

climate-related financial analysis, sustainability and climate

risk materiality assessment, stakeholder analysis and

mitigating actions being undertaken by the Company.


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5 Stated at the annual UN Climate Change Conference, COP27

Decarbonizing cement through

carbon capture

To reach the targets of the Paris Agreement, carbon

capture and storage must be part of the solution,

according to the Intergovernmental Panel on Climate

Change (IPCC). Aker Carbon Capture’s ambition is to

secure contracts to capture 10 million tonnes of CO2

by 2025. To achieve this, the company currently has

four prioritized market segments: cement production,

bio- or waste-to-energy generation, gas-to-power and

blue hydrogen. The cement industry alone accounts

for 6-7 percent of global CO2 emissions, from more

than 2,000 plants in about 150 countries around the

world.

Aker Carbon Capture is supplying the world’s first

large-scale CCS plant applied to cement production

at Norcem Heidelberg Materials’ facility in Brevik,

Norway. This plant will be completed in 2024 and

capture 400,000 tonnes CO2 per year. This is the first

of Aker Carbon Capture’s Big Catch™ plants, which

are custom-made, large-scale solutions that are

integrated into the customers’ production facilities.

Aker Carbon Capture was selected for the Brevik

project by Heidelberg following the Norwegian

government’s funding support and launch of the

Longship CCS project in 2020, which Brevik CCS is

part of. The Longship project is the largest ever

climate project undertaken by Norwegian industry,

and involves developing a full CCS value chain,

including transportation and storage, through the

Northern Lights project.

Rjukan as a frontrunner project

within green hydrogen

Within its wholly-owned Asset Development

business unit, Aker Horizons originates and

develops industrial-scale hydrogen projects to

meet growing demand for the decarbonizing of

energy-intensive, hard-to-abate industries. Initial

focus areas include green ammonia, green

methanol and green iron.

The green hydrogen project in Rjukan in Norway

is an important frontrunner in Aker Horizons

Asset Development’s portfolio, serving as a

blueprint to de-risk Aker Horizons’ larger projects,

such as Narvik, technically, financially and

commercially.

The 40 MW hydrogen project (20 MW in the first

phase) aims to serve industry and transport in the

south-east of Norway with clean hydrogen. The

facility will utilize existing infrastructure and

industrial land, which will enable an early start up

due to available power at the site. The first phase

of the project has a planned Commercial

Operation Date in 2025. Discussions Discussions

with potential offtakers matured during 2022, and

the company is targeting a final investment

decision in 2023.

Greenhouse gas emissions

Through the activities of the Aker Horizons Group, solutions

are provided to a wide range of sectors, including hard-to-

abate sectors like steel or cement, to reduce their emissions

and reach their net zero ambitions. Scaling those solutions is

critical in the global Race to Zero. Aker Horizons Group

companies have currently secured projects set to reduce

global annual emissions by 2.62 million tonnes of CO2e,

through a mix of expanding renewable energy and carbon

capture. For further information, see the section Ambitions for

planet-positive impact.

Simultaneously, Aker Horizons and its portfolio companies

must track and report their own emissions. As an active

owner, Aker Horizons engages with all its portfolio companies

to ensure that the greenhouse gas (GHG) emissions for

Scope 1, 2, and partly 3 are calculated and reported, and that

the companies have set GHG emission-reduction ambitions.

To monitor and track portfolio progress, Aker Horizons has

been working in 2022 to improve consistency in GHG

emission reporting across the portfolio, and will continue to do

so in 2023. The table below summarizes Aker Horizons’ 2022

emissions. For further information about methodology and

assumptions, see the section Transparent reporting.

Greenhouse gas emissions of the Aker Horizons Group


	Aker Horizons Group (tonnes CO2e)
Scope 1	772
Scope 2: Location-based	5,576
Scope 2: Market-based	5,690
Scope 3: Location-based	21,462
Scope 3: Market-based	21,476
Total: Location-based	27,810
Total: Market-based	27,938

The method used to calculate GHG emissions in 2022 was an

improvement on that used in 2021. As a result, financially-

controlled investees are now included in Aker Horizons’ own

emissions (Scopes 1-3 line by line). Equity accounted

investees are included in Aker Horizons’ Scope 3 Category 15

- Investments. The vast majority of Aker Horizons’ Scope 1

and 2 emissions take place in Mainstream Renewable

Power’s operations (98-100 percent for each line item). The

emissions include consumption of diesel and petrol as well as

some leakage of SF-6 gas. In Scope 3, there is some

divergence in the categories reported by each company. For

instance, in 2022 only Aker Carbon Capture reported on

Scope 3 Category 1 - Purchased goods and services. For

further details about the calculation approach and the

categories of Scope 3 included, see the section Transparent

Reporting. Aker Horizons has chosen not to have its 2022

carbon accounts audited, due to the remaining

methodological gaps. Instead, it has focused its efforts on

ensuring data completeness and internal controls for audit in

2023.

For the purpose of comparison with previously reported

figures, the operational emissions of Aker Horizons Holding

and Aker Horizons Asset Development for 2022 in isolation

(i.e. notwithstanding other financially-controlled entities or

investments) are as follows:

Greenhouse gas emissions of Aker Horizons Holding and

Aker Horizons Asset Development


	Aker Horizons Holding (tonnes CO2e)	Asset Development (tonnes CO2e)	Total (tonnes CO2e)
Scope 1	0	0	0
Scope 2: Location-based	3	2	5
Scope 2: Market-based	75	46	121
Scope 3: Location-based	201	185	386
Scope 3: Market-based	201	185	386
Total: Location-based	204	186	390
Total: Market-based	276	230	506

Setting goals for emissions reductions

As a developer of green projects, Aker Horizons and its

portfolio companies must also reduce the footprint of their

own operations, and cut emissions in line with the Paris

Agreement.

Aker Horizons has been committed to the Science Based

Targets initiative (SBTi) since the start of 2022. Due to the

changes in the Aker Horizons Group’s carbon accounting

methodology for 2022 mentioned above, the process of

developing and submitting targets for approval has been put

on hold. The ambition is for this to be reinitiated in 2023. By

committing to the Science Based Targets initiative and

establishing the ambition to set long-term science-based

targets to reach net zero and align its business with a 1.5°C

future, Aker Horizons is also recognized as part of the

Business Ambition for 1.5°C and the Race to Zero campaigns.

Engagement with business partners and suppliers

For Aker Horizons and its portfolio companies, most of

emissions associated with operations will occur in the

extraction and production of the materials used. While this

work is still at an early stage, the Aker Horizons Group is

taking concrete steps to explore measures for supplier

engagement and emissions reduction.

In 2022, Aker Horizons developed and implemented the

Business Partner Code of Conduct, and all other companies

in the Group have, or are in the process of, adopting

equivalent standards. These standards describe what Aker

Horizons expects its business partners to do to establish

climate and emission reduction targets, to establish

methodologically-sound carbon accounting procedures and

report openly on progress, to use renewable power and

improve energy efficiency, and to find lower-carbon

alternatives for products and services. For further information,

the document can be accessed on Aker Horizons’ website.

Aker Horizons has set an ambition for 100 percent of its

portfolio to commit to at least one sectoral commitment of the

First Movers Coalition by 2025. The First Movers Coalition is

a buyers’ club set to fast-track the development of emerging

green technologies, initiated by the World Economic Forum

and US Special Presidential Envoy for Climate John Kerry.

Aker ASA, the majority-owner of Aker Horizons, is a founding

member and will work together with some of the world’s

largest companies to create predictability around demand for

sustainable and low-carbon materials and products. Over the

coming years, Aker Horizons will actively engage and

collaborate both with the companies in the Aker group and

with external parties to unlock green supply chains and scale

emission solutions that will enable industries, especially hard-

to-abate ones, to reach their net zero ambitions.


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Research and development

Aker Horizons and its portfolio have a strong focus on

research and development. Addressing the crises the world

faces today requires new thinking and new technologies. The

total spent on research and development in 2022 across the

portfolio was NOK 553 million. This figure includes all non-

capitalized project costs relating to research and

development, since this spend is crucial for de-risking and

commercializing novel technologies for the green transition6.

Transparent reporting

Aker Horizons strongly supports taking a transparent and

data-driven approach to climate change mitigation (as well as

other sustainability topics). In 2022, Aker Horizons reported to

the Carbon Disclosure Project (CDP) initiative for the first

time, and received a rating of A-. CDP is a not-for-profit

charity that runs the global disclosure system for investors,

companies, cities, states and regions, to help them manage

their environmental impacts. It is one of the most important

global initiatives for disclosures on climate-related impacts,

strategy, risks and opportunities. For further information about

Aker Horizons’ climate-related risks and opportunities, see the

TCFD assessment.

Participation at COP27

In November 2022, Aker Horizons joined world leaders in

Sharm El Sheikh for COP27, the annual UN Climate Change

Conference. Aker Horizons was a main partner of the pavilion

in the Blue Zone7 hosted by Bellona, together with the

Norwegian Ministry of Foreign Affairs and the Sahara Forest

Project. For Aker Horizons, COP represents an important

arena for engaging with and learning from key stakeholders,

as well as showcasing the solutions of the Aker Horizons

Group to a relevant audience. The conference is a unique

setting where a multitude of stakeholders that are engaged in

climate action are gathered – including, but not limited to,

government representatives, businesses, organizations and

indigenous people.

Aker Horizons focused on three key themes at COP27: the

energy transition, decarbonizing hard-to-abate industries and

hydrogen solutions. These themes guided the panels that

Aker Horizons organized at the Bellona Pavilion and the

choice of external panels and events the Company’s

representatives participated in. Beyond these main topics,

representatives participated in and learned from sessions on

topics ranging from indigenous-led clean energy, diversity in

the green transition, sustainable financing and the just

transition.

Since its inception, COP has evolved from a more narrow

focus on negotiations between governments and national goal

settings, to greater private-sector engagement, broader policy

coordination and a focus on tracking and implementation.

Implementation was also the headline for this year’s COP.

Engagement from business, finance and sub-national

governments was high, with significant initiatives launched on

the sidelines of the formal negotiations.

Aker Horizons provides solutions to some of the central

challenges that the climate negotiations must address, and

the Company’s approach to developing green industrial hubs

centered around cheap renewable power and clean hydrogen

attracted the interest of stakeholders. CCUS featured

prominently on the agenda at COP27, providing Aker Carbon

Capture with numerous opportunities to showcase its

technology solutions and projects, especially in relation to

hard-to-abate industries and the scaling up of hydrogen

production.

During COP27, the First Movers Coalition (FMC) announced

that its 65 member companies have made purchase

commitments for green technologies to decarbonize the

cement and concrete industry and other hard-to-abate sectors

worth USD 12 billion in 2030. Aker Horizons and Aker Carbon

Capture took part in FMC’s announcement. Furthermore,

Mainstream supported the launch of industry initiatives during

COP27, such as the Global Offshore Wind Alliance and Asia

Clean Energy Coalition.

For further information on Aker Horizons’ public policy

engagement, see the section dedicated to this topic.


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6 Capitalized cost related to research and development is not included here, but may also be considered in the total R&D spend.

7 The Blue Zone is the UN-managed space that hosts the negotiations, access to which is restricted to attendees accredited by the UNFCCC Secretariat

Research and development for

improving the performance and

competitiveness of carbon

capture

The carbon capture, utilization and storage

(CCUS) market has developed significantly over

the last couple of years. This has, in part, been

driven by a rapid increase in the EU carbon price

which has has generated increased demand for

the technical performance of carbon capture

plants. Paired with energy efficiency and cost,

these are the most important elements in the

competitiveness of carbon capture solutions. In

2022, Aker Carbon Capture had an increased

focus on developing concepts and solutions to

increase the energy efficiency of their process,

including advanced heat integration in the

process with waste heat recovery at the host

facility.

Aker Carbon Capture has, in collaboration with

SINTEF, successfully tested its solvent portfolio

on flue gases with CO2 concentrations ranging

from 4-13 percent and at capture rates of 90

percent and 95 percent. The results show that

Aker Carbon Capture’s technology can

comfortably achieve high capture rates without

being penalized by a significant increase in

energy consumption. Even at low CO2

concentrations, the energy increase was less

than 5 percent when going from a capture rate of

90 percent to 95 percent.

Aker Carbon Capture has also developed a

standardized, modular product, Just Catch™,

with the capacity to capture 100,000 tonnes per

year. The principles behind this solution are now

being applied to the development of future-proof

modular Big Catch™ designs, which will allow for

up to a CapEx reduction of 50 percent.

Performance commentary

Aker Horizons is pleased to see that its solutions are

benefiting from increasing demand, and have great potential

to contribute to the decarbonization of industry. The Company

further observed progress in the pipeline of projects under

development, as well as those under construction, in areas

such as renewable energy, the maturing of carbon capture

projects that break new ground in pursuit of decarbonization,

and the development of concepts for hydrogen value chains.

For further information on the progress of the Aker Horizons

Group towards its strategic objectives and the performance of

the individual companies, see the Board of Directors’ Report.

Simultaneously, Aker Horizons progressed its efforts to track

and report its carbon emissions, and has taken the first steps

towards engaging with its supply chain to address the broader

footprint of its activities. Moreover, Aker Horizons continued to

strengthen its engagement with relevant stakeholders, notably

through its participation at COP27 in Egypt.

Going forward

Aker Horizons will continue to progress impact and climate

mitigation projects, and take steps to remain at the forefront of

solutions for the decarbonization of industry.

Furthermore, Aker Horizons will focus on both mapping and

taking steps to reduce emissions in its own operations and

value chains. All the companies in the Aker Horizons Group

have a stated ambition of reducing the climate footprint of

their own activities. Aker Carbon Capture aims to reduce the

carbon intensity of its own solutions by 50 percent and

achieve a carbon net negative position through carbon

removal solutions by 2030. Mainstream aims to develop a

roadmap to net zero emissions, and take concrete steps to

avoid any incidents with negative climate impacts from all

greenhouse gas sources, including SF6-gas.


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Energy

Investing in renewable energy production and technologies, as well as using energy responsibly, is at the very center of Aker Horizons’ business strategy.

Energy is closely related to climate change. However, providing access to clean and affordable energy is not only about climate change, it is also about raising

the quality of life and reducing inequality globally, in parallel with cutting emissions.

Aker Horizons’ approach and performance

Green energy is the cornerstone of decarbonization and the

green transition. By developing companies dedicated to

renewable power generation capacity in many countries

around the world, Aker Horizons is helping to increase the

share of renewable energy produced locally in the countries

where its portfolio companies operate, while also influencing

the global energy mix.

As with carbon emissions, it is necessary for Aker Horizons

and its portfolio companies to consider not only the positive

impact of their activities, but also their energy footprint.

During 2022, the energy consumption of Aker Horizons in

isolation (i.e. excluding financially-controlled entities or

investments, but including Asset Development) totaled 595

MWh – of which 49 percent was electricity from the power

grid, 33 percent was district heating and 17 percent was

district cooling. The energy consumed was 98.5 percent

renewable (location-based).


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Aker Horizons Annual and Sustainability Report 2022 44

Leading the expansion of

renewable energy globally

Mainstream Renewable Power is a leading pure-play

renewable energy company, with wind and solar

power assets across the globe, including in Latin

America, Africa, and Asia Pacific. The company is a

developer of gigawatt-scale platforms for onshore

wind, offshore wind and solar power generation. In

2022, Mainstream had a project portfolio of over 21

GW in Europe, the Americas, Africa and Asia Pacific,

with 1.5 GW in operation and under construction at

year-end. During the year, Mainstream constructed

0.66 GW of renewable energy, and developed its

project pipeline significantly.

In Chile, Mainstream is progressing on its Andes

Renovables Platform, completing eight out of 10

projects and setting the company on track to connect

a combined capacity of more than 1 GW to the grid.

This milestone was reached in early 2023.

Furthermore, in 2022, Mainstream also signed power

purchase agreements (PPAs) for six solar plants,

with a combined capacity of 450 MW, awarded under

Round 5 of South Africa’s Renewable Energy

Independent Power Producer Procurement

Programme (REIPPPP). Mainstream also signed a

seabed lease agreement with Crown Estate

Scotland for the development of a 1.8 GW floating

offshore wind farm off the Shetland Islands in

Scotland. The project, named Arven Offshore Wind

Farms, is a 50-50 partnership with Ocean Winds.

Energy transmission as a

piece of the puzzle in

expanding access to

renewable energy

SuperNode is a global technology

development company that designs

superconducting cable systems to connect

renewable power generation and increase

grid interconnection. Conventional cables

are limited in terms of their power

transferring capabilities. They also require

vast amounts of copper, which is associated

with a substantial carbon footprint. Cables

using superconducting technology can carry

huge amounts of power efficiently over long

distances, and require significantly less

infrastructure, materials and space.

In 2022, SuperNode moved into a new

state-of-the-art, purpose-built technology

center, and continued to test its novel

designs for superconducting cable systems.

The company filed three patents and

published several studies, including reports

showing how a fully-connected Pan-

European Energy transmission system could

reduce costs by nearly one-third.

SuperNode’s superconducting transmission

products will be a key enabling technology

for the anticipated growth in renewable

energy over the next 30 years.

Energy consumption of Aker Horizons Holding and Aker Horizons Asset Development


	Aker Horizons Holding (MWh)	Aker Horizons Asset Development (MWh)	Total	Share renewable (location-based electricity)
Grid electricity	182.61	111.345	293.955	97%
District heating	122.805	74.88	197.685	100%
District cooling	64.42	39.28	103.7	100%
Total	369.835	225.505	595.34	98.52%

The total amount of energy consumed by Aker Horizons,

including portfolio companies, came to 7,646 MWh, 17

percent of which was renewable. Adjusted for Aker Horizons’

proportionate ownership shares, the energy consumed

amounted to 4,596 MWh, 19 percent of which was renewable.

The low percentage of renewable energy is due to the use of

fossil fuels at sites and in construction, as well as the grid mix

in countries other than Norway containing a smaller

proportion of renewables. This highlights the need to explore

ways in which to switch to renewable energy sources

wherever possible.

On the production side, a total of 3,503,204 MWh of

renewable energy was produced over the course of the year

(2,046,922 MWh if ownership-adjusted). No non-renewable

energy was produced. In other words, the total amount of

energy consumed was equivalent to only 0.22 percent of the

total energy produced.

For energy-intensive projects planned for the future, ways to

improve energy efficiency are currently underway. For

instance, Aker Horizons aims to utilize the surplus heat from

hydrogen production in connection with the Rjukan project. In

this case, electrolysis of water will generate surplus heat that

is captured in the system cooling circuit. Through a heat

exchanger, this can be extracted and used for industrial

processes and district heating.

Performance commentary

Aker Horizons notes the consistent progress in the

construction of renewable energy projects and the expansion

of a global project pipeline by Mainstream. Supernode

progressed on its journey to unlocking new opportunities for

energy transmission. For further information on the progress

of the Aker Horizons Group towards its strategic objectives

and the performance of the individual companies, see the

Board of Directors’ Report.

While renewable energy production by the Aker Horizons

Group significantly exceeds its energy consumption, Aker

Horizons notes that energy consumption was less than 20

percent renewable. This leaves room for improvement.

Going forward

Aker Horizons will continue to support the expansion of

renewable energy globally. Simultaneously, steps will be

taken to increase the share of renewable energy consumed

across the Group.

Furthermore, as other parts of the Aker Horizons Group

become more operational and, in most cases, significant

consumers of energy (which is the case for both hydrogen

and carbon capture), steps will be taken to improve the

solutions’ energy efficiency. This includes decreasing the

energy needed, as well as exploring options for recycling

energy, particularly heat, to meet the needs of surrounding

industry and society and support further CO2 abatement. In a

world focusing more on energy security and volatile energy

prices, this is of paramount importance to the expansion of

energy-intensive industry.


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Aker Horizons Annual and Sustainability Report 2022 45

Biodiversity

The world currently faces multiple crises, and an unprecedented loss of biodiversity and nature is a looming threat to existence. Climate change is projected to

become the strongest driver of biodiversity loss over the next decade. Action to mitigate climate change therefore also represents action to protect

biodiversity. Simultaneously, Aker Horizons and its portfolio companies operate in industries that are often land intensive, and therefore represent a risk of

adversely impacting biodiversity if not adequately managed. Moreover, developing green industry is reliant on access to metals and minerals, which must be

mined and processed – activities that often damage local biodiversity.

Aker Horizons’ approach and performance

The Kunming-Montreal Global Biodiversity Framework (GBF),

adopted at the COP 15 UN Biodiversity Conference in

Montreal in December 2022, underscored that more terrestrial

and marine ecosystems must be protected, countries must

develop national biodiversity strategies, and companies will

be expected and required to assess, disclose and minimize

the biodiversity impact of their operations and supply chains.

Aker Horizons’ Sustainability Policy describes our

commitment to minimizing our impact on ecosystems,

particularly in relation to operations in or near biodiversity

sensitive areas and operations that may affect endangered

species. Furthermore, biodiversity impact is explicitly

addressed in Aker Horizons’ Business Partner Code of

Conduct, which was developed and implemented in 2022 (for

further information about this document, see the section on

Human and labor rights). Aker Horizons’ responsibility for

biodiversity extends to life in the ocean. In 2022, Aker

Horizons and the offshore wind division of Mainstream,

formerly Aker Offshore Wind, became signatories of the

Sustainable Ocean Principles of the UN Global Compact

Ocean Stewardship. The principles build upon and

supplement the Ten Principles of the United Nations Global

Compact, and commit signatories to work for healthy and

productive oceans.

As an active owner, Aker Horizons sets clear expectations for

its portfolio companies, and while the operations vary in their

maturity, this is high on the agenda across the Group.

Currently, data is being collected on land use and biodiversity

impact, while continuing efforts to build a solid understanding

of current and future impacts are a priority also for 2023. All

companies in the Group are asked to report on whether they

own, lease or manage sites adjacent to protected areas and/

or biodiversity-sensitive areas as defined by the Sustainable

Finance Disclosure Regulation8; whether they have sites or

operations that affect threatened species (as defined by the

IUCN Red List); and whether they take part in conservation or

reforestation efforts. In 2022, none of the companies in Aker

Horizon’s portfolio report having sites or operations with the

impacts described above. However, the assessment being

undertaken to gain a full understanding of our impact has not

fully concluded. Currently, no companies engage in

conservation or reforestation efforts.

All projects developed by the Aker Horizons Group are

required to undergo Environmental Impact Assessments

(EIAs), and Aker Horizons incorporates high-level

considerations around biodiversity impact in early-stage

investment considerations.

Aker Horizons’ own operations through the Asset

Development business unit are at an early stage. The current

impact of Aker Horizons in isolation is therefore limited. Aker

Horizons, including Aker Horizons Asset Development,

occupies a total of 1,167 hectares of land. Across Aker

Horizons and its portfolio, total land occupation is 638,719

hectares. This is primarily driven by Mainstream Renewable

Power, which has renewables assets equivalent to 1.5 GW in

operation and under construction at the end of 2022.

Mainstream’s practice and mitigation measures relating to

biodiversity during construction, operations, maintenance and

decommissioning are included in the company’s Global

Development Standard. This standard will be revised in 2023

in light of the new Kunming-Montreal GBF.

Aker Horizons also contributed to public hearings on offshore

wind power generation in Norway. One of the opinions we

have voiced is support for the inclusion of qualitative criteria in

auctions, which would constitute a concrete step to reward

measures for safeguarding surrounding biodiversity. For

further information on Aker Horizons’ public policy

engagement, see the section dedicated to this topic.


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Aker Horizons Annual and Sustainability Report 2022 46

8 The definition provided by SFDR is: ‘Biodiversity-sensitive areas’ means Natura 2000 network of protected areas, UNESCO World Heritage sites and Key Biodiversity Areas (‘KBAs’), as well as other protected areas, as referred to in Appendix D of Annex II to

Commission Delegated Regulation (EU) 2021/2139

Mainstream’s decision to discontinue a

project due to environmental concerns

In 2022, Mainstream decided not to move forward with a

planned solar power plant in South Africa, due to potential

adverse biodiversity impacts on associated wetlands.

The project was a solar development situated in Free

State. During the Environment Impact Assessment (EIA)

phase of the projects, the wetland specialist delineated the

wetlands and found indicators of underground soil wetness

commensurate with classification as wetlands. Following a

recommended second opinion to confirm the findings, the

outcomes were discussed and it was concluded that offsets

would most likely be required and that the project would

have severe environmental impacts.

Based on the above, it was decided not to proceed with the

development of the solar projects.

Aker Carbon Capture currently has limited direct impact on

biodiversity – the deployment of carbon capture plants has a

relatively small land footprint. While the plants are mainly

placed in areas already targeted for industrial production, their

local impact needs to be assessed on a case-by-case basis.

However, indirect impacts may occur, through supply chains

and natural resource needs. In 2023, Aker Carbon Capture

plans to expand its lifecycle assessment tool to gain a greater

understanding of the solutions’ indirect impact on biodiversity.

Furthermore, biodiversity and land-use perspectives become

more relevant whenever carbon removal credits are based on

biomass in combination with carbon capture and storage.

Maturing the framework for the voluntary market for carbon

removal credits is important and part of Aker Carbon

Capture’s work to scale the deployment of engineered carbon

removal solutions.

Performance commentary

Biodiversity continues to be high on the agenda, and Aker

Horizons is pleased to observe the good work being done by

Mainstream Renewable Power in its development and

operation of renewables projects. Particularly the choice to

not move forward with certain projects due to environmental

concerns lends credibility to the assessments. For the other

activities in the Aker Horizons Group, biodiversity impact is

currently limited due to the early stage of the activities, but an

early focus on mapping potential impacts is deemed a good

starting point.

Going forward

For 2023, a priority for Aker Horizons is to move forward on

the planning of assets under Aker Horizons Asset

Development, and ensure that environmental safeguarding is

taken into account at all stages. There will also be a focus on

building further capacity to understand and track biodiversity

impacts.

Mainstream will continue working on sound environmental

impact assessments for its assets, and exploring new

methods to safeguard the environment – both for onshore and

offshore assets.

A cross-cutting theme for all sustainability impacts in the Aker

Horizons Group, including biodiversity, is the deepening of our

work with supply chains, building an understanding of impacts

beyond our own operations and identifying potential

improvement measures.

Aker Horizons will continue exploring opportunities for

collaboration with academia to support research to find the

best ways of mitigating adverse impacts on biodiversity. In the

longer term, it is the ambition of Aker Horizons and the

portfolio to venture into assessing nature-based risk, which

incorporates the “outside-in” perspective on the materiality of

biodiversity.


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Aker Horizons Annual and Sustainability Report 2022 47

Novel techniques for minimizing

environmental impact in Chile

The Antofagasta Region of northern Chile has

exceptional conditions for the development of wind

energy projects. However, it is also home to a number

of protected bird species. As part of its commitment to

minimizing negative environmental impacts from its

projects, Mainstream has explored new methodologies

and partnerships to study ecosystems in the area.

In 2022, Mainstream constructed three projects in the

region, namely, Llanos del Viento, Pampa Tigre and

Cerro Tigre. Two other projects were at the

development stage, undergoing design and

environmental studies. One key focus was to minimize

any negative impact on the protected bird species:

Gaviota Garuma (Grey Gull) and Golondrina de Mar

(Wilson’s Storm Petrel).

Working with ecology specialists from the University of

Concepción in Bio Bio, Mainstream carried out a series

of environmental studies on coastal birdlife in the north

of Chile. When planning the development sites,

specially trained dogs were deployed to detect nesting

grounds, and these areas were avoided when siting

turbines and access roads. A pilot project was also

initiated to explore the use of computer vision and

sensor technology to monitor bird activity in the area.

As well as supporting environment-friendly project

planning and execution, the data from these

investigations will be used to further academic

research on these protected bird species. Moreover, to

support research and local skills development,

Mainstream has signed an agreement with the

University of Antofagasta to educate workers on

environmental management, fauna rescue and

rehabilitation.

Circular economy

Circularity is a solution for realizing a sustainable and viable way of living, by providing the tools to tackling the crises we face simultaneously. Circular

economy solutions provide a roadmap for growing prosperity and resilience, while cutting greenhouse gas emissions, waste and pollution. With a business

strategy anchored in creating planet-positive impact and tackling climate change, circularity must necessarily be taken into consideration for Aker Horizons’

solutions.

Aker Horizons’ approach and performance

The concepts of the circular economy and circularity are

viewed as key to sustainable development by Aker Horizons

and its portfolio companies. Aker Horizons’ Sustainability

Policy sets out the ambition of zero waste, sound resource

utilization and the realization of the circular economy.

Furthermore, it describes Aker Horizons’ commitment to

ending pollution of the environment both on land and in the

ocean. While it is widely recognized that circular economy

solutions must be explored, the Aker Horizons Group

companies are still at the early stages of developing an

approach to circularity.

If the concept of circularity is extended to energy and CO2,

the solutions provided by Aker Horizons and its portfolio are

enablers of the circular economy. For instance, carbon

capture and utilization, particularly if the carbon is of biogenic

origin, is a central piece in the puzzle of a circular carbon

economy. This forms a backdrop to the exploration of new

business opportunities.

Circularity represents the sound utilization of resources, and

the abandonment of a linear approach to designing and using

materials. In terms of physical resource utilization, Aker

Horizons’ efforts are currently focused on identifying and

tackling waste streams as a concrete first step - although

circularity is more than waste management.

Aker Horizons’ own waste data is expressed as a pro rata

share of the volume recorded at the Fornebuporten complex,

where its offices are located. In 2022, 40 percent of the waste

(residual mixed waste and hazardous waste) produced at

these premises was not recycled, down 15 percent from the

46 percent not recycled in 2021. Aker Horizons’ own

operations, through Aker Horizons Asset Development, are at

an early stage, so the current impact of Aker Horizons in

isolation is limited. In 2022, the total amount of waste

attributed to Aker Horizons, including Asset Development,

was 11.19 tonnes, while non-recycled waste totaled 4.49

tonnes (40 percent) and recycled waste totaled 6.69 tonnes

(60 percent). The total amount of hazardous waste attributed

to Aker Horizons, including Asset Development, was 0.048

tonnes.

Aker Horizons and its portfolio companies generated a

combined total of 5,909 tonnes of waste, with Mainstream

Renewable Power responsible for the bulk of this amount.

Mainstream was also the company with the lowest share of

non-recycled waste (14 percent). As a result, the overall

recycling rate for Aker Horizons, including portfolio

companies, stood at 86 percent at year end. Together, Aker

Horizons and its portfolio generated a total of 54 tonnes of

hazardous waste. Building the capability to collect sound,

portfolio-wide data takes time, and it is a priority going forward

to establish further confidence and controls with respect to

waste data.


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Aker Horizons Annual and Sustainability Report 2022 48

Carbon Capture and Utilization:

From waste to sprouts

In 2022, one of Aker Carbon Capture’s flagship

projects, and unique example of a stepping stone

towards a circular carbon economy, entered the

construction phase.

Twence, a Dutch operator of waste-to-energy

plants, made the decision to deploy carbon

capture at its waste-to-energy facility in Hengelo

at the end of 2021. When the carbon capture

plant becomes operational towards the end of

2023, it will be the world’s first modular carbon

capture plant at a waste-to-energy facility.

The plant will have a rated capture capacity of

100,000 tonnes of CO2 per year and is on

schedule to commence operations by the end of

2023. The captured CO2 at Twence will be

utilized in local horticulture to increase plant

yields from greenhouses, thus displacing the

need for natural gas. While a proportion of the

carbon captured and utilized from this waste-to-

energy facility will still be of fossil origin, the

project represents a concrete step towards

realizing circularity in practice.

Performance commentary

Since circular economy is still a nascent focus area in the

Group, Aker Horizons acknowledges that there is a significant

potential for improvement across the portfolio. At the same

time, Aker Horizons is pleased to see that there are efforts

pulling in the right direction. Among the highlights in 2022

were Aker Carbon Capture’s enabling of circular carbon

management through the company’s facility under

construction in the Netherlands, and Mainstream’s early

efforts to enable the recycling of wind turbine blades.

Going forward

The circular economy and waste reduction are on the Aker

Horizons Group’s agenda going forward.

Aker Carbon Capture aims to expand its lifecycle assessment

tool to cover a broader dataset, in order to quantify recycled

material volumes - pending our suppliers’ data availability and

accuracy. Furthermore, it will continue to develop and mature

circularity metrics to track progress, and conduct a circularity

assessment to identify further opportunities, including how

information on material content can facilitate increased

circularity in connection with plant decommissioning.

Following the cradle-to-cradle process, Mainstream

Renewable Power aims for zero waste to landfill. This

process will be embedded into Mainstream’s Global

Development Standards in 2023.

Going forward, Aker Horizons will continue to encourage and

support cradle-to-cradle design across its portfolio companies’

activities, and aims to support an overall learning curve with

respect to the circular economy and circular design within the

Group.


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Aker Horizons Annual and Sustainability Report 2022 49

Managing difficult-to-recycle

waste streams: turbine

recycling

In its Annual and Sustainability Report 2021,

Aker Horizons described the establishment of

a partnership between Aker Offshore Wind,

now part of Mainstream Renewable Power,

and the University of Strathclyde in Scotland to

find potential solutions to end-of-life treatment

of wind turbine blades. Currently, the most

common practice for the disposal of

decommissioned turbine blades is landfilling.

However, the trade association Wind Europe is

calling for a Europe-wide ban on this practice.

Mainstream and researchers at the University

of Strathclyde, together with other consortium

members, are leading a GBP 2 million wind

turbine blade recycling pilot in the UK. The

three-year pilot kicked off in 2022 and aims to

develop a commercially viable method to

separate and recover fiber glass from wind

turbines, which can then be reprocessed and

reused in new moulded products.

Respect for People

Aker Horizons is committed to safeguarding and supporting

the people associated with its activities. People are crucial for

every organization, be they employees, contractors,

customers, suppliers or external stakeholders. Contributing to

improving people’s well-being, prosperity and knowledge is

an integral part of Aker Horizons’ approach to being planet-

positive.

In this chapter, four material topics have been identified for

Aker Horizons:

•Human and labor rights

•Health, safety and well-being

•Diversity, equality and inclusion

•Talent attraction


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Aker Horizons Annual and Sustainability Report 2022 50

At a Glance: Our People

Aker Horizons, including Asset Development



Employees	Contractors	Total workforce
94 FTE	22 FTE	116 FTE
94 HC

Board of Directors

Executive Management*

Management excl. EMT**

All employees

Aker Horizons and portfolio companies



Employees	Contractors	Total workforce
970 FTE	165 FTE	1135 FTE
977 HC

Board of Directors

Executive Management*

Management excl. EMT**

All employees


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Aker Horizons Annual and Sustainability Report 2022 51

* Executive management team (EMT) defined as in remuneration report, if applicable

** Management defined as all employees who have employees reporting directly to

them and/or are responsible for managing a discipline

Deep-dive: Aker Horizons (Including Asset Development)

Gender pay gap

* Executive management team (EMT) in Aker Horizons is only the CEO and CFO

Profiles of new hires and leavers


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Aker Horizons Annual and Sustainability Report 2022 52

Average age

Training and

development

Hours (offered)

Nationalities

58.3%

34.2%

27.4%

31.6%

23 7

8 6

Executive

management

Management

ex. EMT

Company ex. all

management

All employees

Human and labor rights

Aker Horizons and its portfolio companies operate in industries and geographies that involve potential adverse human rights impacts. As a responsible

investor, owner and project developer, understanding, managing and protecting human and labor rights is at the core of Aker Horizons’ sustainability

commitments.

Aker Horizons’ approach and performance

Human rights and labor rights commitments

Aker Horizons is committed to respecting internationally

proclaimed human rights, including the rights set out in the

International Bill of Rights and the UN Guiding Principles of

Business and Human Rights (UNGPs), the principles and

rights described in the eight fundamental conventions

identified in the Declaration of the International Labor

Organization on Fundamental Principles and Rights at Work,

as well as the United Nations Declaration on the Rights of

Indigenous Peoples and the OECD Guidelines for

Multinational Enterprises. Since 2021, Aker Horizons has

been committed to the UN Global Compact corporate

responsibility initiative and its principles in such areas as

human and labor rights. Aker Horizons respects all human

and labor rights and is committed to actively preventing child

labor, forced labor and modern slavery in its own operations

and supply chain. Aker Horizons recognizes the rights to

freedom of expression, privacy, association and collective

bargaining.

Furthermore, Aker Horizons respects and promotes freedom

of association, encourages work councils, and promotes the

consultation and participation rights of workers through social

dialogue. Aker has a long tradition of cooperation on

employment matters between its main shareholder, board,

management and employee representatives, as well as an

open dialogue with authorities and other partners. This is

referred to as the “Aker model”. Aker Horizons’ ambition is to

carry this forward through the expansion of investments and

the building of new industrial businesses and workplaces for a

low-carbon future - and to embody the concepts of a just

transition and decent green jobs.

Aker Horizons has zero tolerance for discrimination in any

form. Aker Horizons aims to ensure equality, diversity and

inclusion throughout its business by providing equal

opportunities and striving for a balance between the genders,

and increased diversity and inclusion at all levels and in all

parts of the business. Aker Horizons’ commitment to and work

on equality, diversity and inclusion is described more in detail

in the section dedicated to the topic.

Finally, Aker Horizons recognizes and strives to obtain the

free, prior and informed consent of indigenous communities

that may be impacted by the company’s operations, and is

committed to interacting with indigenous communities in a

way that respects their history, culture and customs. Climate

solutions, like renewable energy, must be developed with

respect and care for traditional knowledge and practices.

That, in turn, will play a critical role in protecting the planet’s

biodiversity and in maintaining the overall health of

ecosystems.

Governance

Aker Horizons’ commitment to human and labor rights is

embedded in the company’s governing structure and reflected

in both our Code of Conduct and Sustainability Policy. Aker

Horizons respects human rights, including labor and

children’s rights, and protects vulnerable individuals and

groups affected by our business. From the Code of Conduct,

it follows that Aker Horizons shall ensure that its business

operations do not cause or contribute to any infringements to

human and labor rights and that Aker Horizons is committed

to implementing and enforcing effective systems to minimize

risks of human and labor rights infringements in Aker

Horizons’ own operations and in the supply chain. The

Sustainability Policy mandates that Aker Horizons shall

ensure ESG emergency preparedness, including responsible

remedy liability analysis, monitoring, and equal access to

remedy.


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Aker Horizons Annual and Sustainability Report 2022 53

As a part of the Aker group, Aker Horizons is covered by the

Global Framework Agreement between Aker and the

Norwegian United Federation of Trade Unions

(Fellesforbundet), IndustriALL Global Union, the Norwegian

Society of Engineers and Technologists (NITO) and the

Norwegian Society of Graduate Technical and Scientific

Professionals (Tekna). This agreement commits Aker and its

portfolio companies to respect and support fundamental

human and labor rights in societies where the companies

operate. Specifically, it sets out fundamental workers’ rights,

such as the right to unionize and engage in collective

bargaining, and refers to internationally recognized standards

governing health, safety and the environment (HSE), pay,

working hours and employment conditions. During 2022,

executives from Aker Horizons and its portfolio companies

participated in meetings of Aker’s Global Works Council

(GWC), which includes labor union representatives from

several Aker companies globally. The council continually

works to ensure alignment on corporate responsibility efforts

in Norway and internationally. While Aker Horizons and its

companies are relatively newly established and currently have

not yet formalized statute-based cooperation, the GWC model

as a framework for engagement is also important for Aker

Horizons. Dialogue on working life, and informal interaction

between managers and employees, based on mutual trust,

openness and respect, are core values for Aker Horizons.

The Chair of Aker Horizons, in his capacity as CEO of Aker

ASA, takes part in the annual employee representative

conferences organized by the Norwegian trade unions and

employee associations, and also has frequent informal

conversations with employee representatives. This gives Aker

ASA and Aker Horizons valuable insights and facilitates the

implementation of active employment representation. Aker

ASA has also extended employee representation to its Board

of Directors. Three members of Aker ASA’s Board of Directors

are elected by and from among employees - including the

portfolio companies’ employees.

Aker Horizons’ strong support for and efforts to prevent and

mitigate any adverse impacts on human rights extends

beyond own operations and covers business partners

including suppliers, customers, service providers, joint

venture partners or other persons engaging in business with

members of the Aker Horizons Group. In 2022, Aker Horizons

developed and implemented the Business Partner Code of

Conduct. For parts of the Group, this document replaces

existing Supplier Declarations.The document sets out what

Aker Horizons requires of its business partners, including an

expectation that they respect fundamental human rights,

provide decent working conditions and carry out human rights

due diligence to understand and mitigate potential and actual

adverse impacts and ensure that their company, through its

operations, does not cause or contribute to adverse impacts

on human rights and working conditions. The Code of

Conduct for Business Partners includes specific contractual

clauses authorizing Aker Horizons to terminate a contract in

case of material breach of human rights by a business

partner. Contractual clauses also allow audits of business

partners to verify their compliance with the Code.

Responsibility for managing human rights in Aker Horizons is

shared between the Sustainability and Compliance functions,

and is overseen by both the Audit Committee and the Board

of Directors. Updates on human rights-related activities and

matters are given to the Audit Committee and the Board on a

quarterly basis. All Aker Horizons employees are individually

responsible for respecting human rights and safeguarding

decent working conditions.

In addition to developing assets through the Asset

Development business unit, Aker Horizons’ core business is

to invest in, own and operate companies and, when

appropriate, to divest. Aker Horizons has therefore developed

processes to evaluate, monitor and follow up on actual or

potential adverse impacts on human rights and decent

working conditions in relation to potential new investments,

current holdings and potential divestments.

Aker Horizons exercises active ownership by contributing to

the development of its portfolio companies, using its influence

as shareholder, mainly through board positions (including by

having Aker Horizons representatives on audit and

sustainability committees). As an active owner, Aker Horizons

also regularly engages with other functions in portfolio

companies, including Legal, Compliance and Sustainability, to

follow up and provide support across a range of areas. This

includes assisting the companies with their efforts to identify

and assess any actual and potential adverse human rights

impacts.

Aker Horizons requires its portfolio companies to implement

their own Code of Conduct and other relevant policies and

procedures, in line with Aker Horizons’ values. Aker Horizons

also expects its portfolio companies to have in place

governing documents and processes to ensure respect for

and adherence to fundamental principles of human rights and

labor rights, and to assess and monitor any actual or potential

adverse impacts on human rights and decent working

conditions. This includes having in place processes to take

steps to cease, prevent and mitigate (as appropriate) any

such adverse impacts.

At the end of 2022, 100 percent of Aker Horizons’ portfolio

companies have either Codes of Conduct outlining their

commitments to human and labor rights or Codes of Conduct

dedicated specifically to business partners.

The Norwegian Transparency Act

The Norwegian Transparency Act, which came into force in

2022, introduces requirements to carry out due diligence of

companies’ own operations and supply chains, with a focus

on assessing actual and potential adverse impacts on human

rights and decent working conditions. It further requires

companies to publish an annual report on the due diligence

conducted (process and findings) and to provide information

upon request. Aker Horizons welcomes these enhanced

requirements, which are very much in line with the company’s

commitment to human rights and transparent reporting. Aker

Horizons will publish a full Transparency Act due diligence

report by 30 June 2023, in line with the requirements of the

Act. Below is a status update on the company’s compliance

with the Act and the broader work on human and labor rights.

The due diligence report will be published on the sustainability

pages of Aker Horizons’ website.

In the context of the Transparency Act, a parent company’s

own operations include the operations of its subsidiaries,

irrespective of where those subsidiaries are registered or

operate. It follows that Aker Horizons’ human rights due

diligence of its own operations must also take account of risks

in the operations of its subsidiaries. This means that Aker

Horizons’ assessments and statements will cover all of Aker

Horizons Asset Development (and Aker Narvik), Aker Carbon

Capture (43.3 percent ownership, but consolidated accounts)

and Mainstream Renewable Power (58.4 percent ownership


		Aker Horizons in Brief Board of Directors’ report Sustainability Financials and Notes Corporate Governance Report

Aker Horizons Annual and Sustainability Report 2022 54

and consolidated accounts). As a listed Norwegian company,

Aker Carbon Capture is required to report in its own right, and

its account of due diligence pursuant to the Transparency Act

can be found here. During 2022, neither Aker Horizons nor

any other company in the Aker Horizons Group received any

information requests under the Transparency Act.

Due diligence

During 2022, Aker Horizons implemented a number of

measures to enhance its efforts to safeguard human rights

and decent working conditions, and to enable the Company to

detect, prevent and respond to adverse human rights impacts

in its operations and supply chain. These measures are

described in more detail below but, in brief, have included the

implementation of new procedures and processes to conduct

human rights impact assessments and integrate human rights

due diligence into the Company’s operations, as well as

training and awareness-raising to upskill employees in this

area.

A key measure in identifying, detecting and preventing

adverse human right impacts is Aker Horizons’ Integrity Due

Diligence (IDD) procedure, which specifies steps that must be

taken to assess and monitor integrity risks relating to new and

existing business partners. The IDD Procedure is risk based.

As a result, business partners with direct involvement in the

construction, infrastructure or extractives and mining

industries, and/or business partners located in medium or

high-risk countries, will be subject to additional due diligence.

Additional due diligence may include self-assessment

questionnaires, the hiring of external intelligence providers

and direct engagement with relevant stakeholders.

Integrity due diligence in Aker Horizons is an ongoing, risk-

based process. At minimum, this involves continuous

monitoring of Aker Horizons’ current and prospective business

relationships using an external screening system and

compliance database (Compliance Catalyst) for human rights

risks and other potential risks, such as sanctions, corruption,

environmental offenses and economic crimes. Higher risk

suppliers will also be subject to more in-depth follow-up,

including audits if necessary.

Aker Horizons is committed to conducting audits in projects

where we have identified risks, and responding to adverse

impacts commensurate with our level of influence and control.

In 2022, the scope of the IDD procedure was updated to

cover human rights and labor rights to an even larger extent.

If there are concerns, weaknesses or red flags associated

with a business partner, Aker Horizons will engage them in

dialogue and identify measures to enable them to work

towards attaining the integrity standards stipulated by Aker

Horizons’ Code of Conduct for Business Partners.

Aker Horizons has also adopted measures to ensure that all

written agreements with business partners incorporate Aker

Horizons’ Code of Conduct for Business Partners, in addition

to specific contractual clauses under which Aker Horizons’

business partners undertake on their own account to identify

and prevent actual or potential adverse impacts on human

rights and decent working conditions.

As an active owner, Aker Horizons expects all its portfolio

companies to develop appropriate due diligence processes to

identify, mitigate and prevent (as appropriate) any actual or

potential adverse impacts on human rights and decent

working conditions in their operations and supply chains, and

to have mechanisms in place that allow for any grievances to

be raised and adequately addressed.

Internal capacity building

Aker Horizons aims to continuously strengthen internal

competence on human rights, and in 2022 introduced a

dedicated online human rights training program for all

employees of Aker Horizons, Aker Horizons Asset

Development and Mainstream Renewable Power. Aker

Carbon Capture provided specialized online training to its

employees based on risk exposure.

Aker Horizons encourages all companies in the Group to

introduce obligatory training for employees on human and

labor rights. In 2022, 62 percent of the employees of Aker

Horizons, 61 percent of Aker Carbon Capture9 and 90 percent

of Mainstream Renewable Power had completed the online

human rights training course. The Code of Conduct training in

all companies covers aspects of human rights. In 2022, it was

completed by 88 percent of Aker Horizons, 100 percent of

Aker Carbon Capture and 100 percent of Mainstream

Renewable Power’s employees.

Whistleblowing channel and grievance mechanism

Aker Horizons has an anonymous, third party whistleblowing

channel that is open both to internal and external parties.

Through awareness-raising initiatives and internal training,

Aker Horizons enables such parties to raise concerns and

report suspected violations, including violations of human and

labor rights. Additionally, there is a procedure in place which

encourages reporting of unethical and illegal behavior, and

sets out regulations for the protection of whistleblowers. The

procedure prescribes the mandatory steps the company must

take to investigate and manage whistleblower reports.

For external stakeholders, information about the

whistleblowing channel, including contact information, has

been available on the Company’s website in 2022. All Aker

Horizons Group companies have their own whistleblowing

channels and reports concerning their companies can be

made through their own channels.

In 2022, no grievances were received by Aker Horizons.

Across the portfolio, there is still a way to go with regard to

establishing reporting systems and data certainty concerning

grievances, and steps were taken towards this end in 2022.

Indigenous rights and cultural heritage

Aker Horizons is determined to implement measures to

respect indigenous rights and cultural heritage. Currently, this

is one of the key priorities for Mainstream Renewable Power’s

operations. Mainstream applies internationally recognized

practices for the protection, field-based study, and

documentation of cultural heritage, and these are

implemented in all its projects.


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Aker Horizons Annual and Sustainability Report 2022 55

9 Aker Carbon Capture took a risk-based approach to selecting a target group for more extensive human rights training, including both employees and contractors. 100 percent of the target group completed the training.

Aker Horizons’ human and labor rights risk

Aker Horizons is committed to conducting periodical human

rights impact assessments which examine the scope, nature

and impact of existing activities and business relationships.

During 2022 and early 2023, Aker Horizons carried out a

human rights impact assessment, using a combination of

quantitative and qualitative methods to map and assess the

Company’s potential adverse impact on human and labor

rights in its own operations and supply chain, and in other

business partner relationships. So far, this has been done for

both Aker Carbon Capture and Aker Horizons, including Asset

Development. Building on ongoing work on human rights in

own operations and the supply chain, Mainstream Renewable

Power aims to complete such an assessment in the first half

of 2023.

In the renewable energy industry generally, there is an

inherent risk of adverse impacts on local communities

affected by renewable energy development projects. This is

particularly true if the communities affected include

indigenous people or other vulnerable groups.

Furthermore, there is an inherent risk of adverse impacts

associated with the renewable energy sector’s supply chains ,

particularly any exposure to China in general and the Xinjiang

province in particular, as well as other high-risk markets such

as Brazil, Chile and South Africa. The mining and processing

of metals and minerals – an important aspect of most

renewable energy projects – is associated with a high

inherent risk of adverse impacts due to the nature and

location of such operations. In the construction of

infrastructure for green energy and green industry projects,

there is also an inherent risk of adverse impacts due to labor-

intensive work, often executed with a contracted workforce.

In 2022, there were no cases reported of violations of human

and labor rights across Aker Horizons and its portfolio, nor

involving the rights of indigenous peoples. As mentioned

above, efforts are currently underway to better understand the

risk and impacts of the activities across the Group.

Aker Horizons’ own operations

In its human rights impact assessment, Aker Horizons has not

identified any actual adverse impacts on fundamental human

rights or decent working conditions in its own operations. The

most significant risk of adverse impacts on fundamental

human rights and decent working conditions in Aker Horizons’

own operations relates to the construction work being

undertaken in Narvik. This is because Aker Horizons currently

only has offices and operations in Norway. Further, although

the Company has a number of projects under development at

varying stages, none of these projects are yet operational,

and only the project in Narvik has reached the construction

phase (early-stage EPC activities).

As such, the risk that Aker Horizons, through its own

operations, could have an adverse impact on human rights

and decent working conditions is presently considered low.

The risk is considered to be slightly higher for the construction

project in Narvik, solely as a result of the inherently high risks

of adverse working conditions in the construction industry.

These risks are, however, mitigated by the project’s location

in Norway – with its high standards for labor rights – the fact

that the workers involved are primarily local (as opposed to

migrant) workers, and finally that Aker Horizons, through its

JV partner Nordkraft, exercises close oversight, including

frequent on-site visits as the project develops.

Aker Horizons is also mindful of the potential future risks that

may crystallize once the Company’s other pipeline projects

enter construction and operational phases, and will ensure

these risks are closely monitored and addressed as and when

the relevant projects go into operation.


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Aker Horizons Annual and Sustainability Report 2022 56

Taking steps to learn about

local indigenous culture

Among the measures introduced to learn about

indigenous culture in 2022, Mainstream

participated in an Indigenous Cosmovision

Workshop, at the invitation of the Futa Trawün

community of Paillaco, which neighbours

Mainstream’s Caman Wind Farm Project in

Chile.

Mainstream employees from a range of

business functions took part in the workshop,

during which they learnt about the culture of the

Mapuche people of the Los Ríos Region.

Mainstream’s representatives also had the

opportunity to promote the importance of

ostering good community relations in the local

transition to renewables.

Mainstream’s approach to

respecting indigenous rights

and cultural heritage

In alignment with the International Finance

Corporation Performance Standard 8, cultural

heritage refers to tangible forms of cultural

heritage, including sites and artifacts of

archaeological and paleontological value, as

well as historically unique natural features or

tangible objects that embody cultural values;

and certain instances of intangible forms of

culture that are proposed to be used for

commercial purposes (e.g., cultural knowledge,

innovations and traditional practices).

During an Environment Impact Assessment

(EIA), a cultural heritage survey should be

performed by qualified professionals, and if the

survey indicates potential adverse impacts,

further analysis will be necessary to ascertain

the nature and scale of these impacts and

engage with the community to understand how

such impacts can best be mitigated. The

archaeological survey is performed as part of

the EIA baseline.

Aker Horizons’ supply chain and business partner

relationships

In its human rights impact assessment, Aker Horizons did not

identify any actual adverse impacts on fundamental human

rights or decent working conditions in the Company’s supply

chain or in relationships with other business partners.

In 2022, Aker Horizons – including Asset Development and

the Narvik project – had a total of 361 uniquely registered

suppliers. The top three suppliers represent over 90 percent

of total spend – and were related to EPC contracting, land

acquisition and construction of a new transformer station, all

in Narvik.

Although, as noted above, no actual adverse impacts were

identified in 2022, the following supplier categories and

related potentially salient human rights risk were identified in

relation to Aker Horizons’ operations and its supply chain or

business partner relationships.

•Construction (including site development)

•Electronics and computer equipment;

•Software and IT services;

•Hospitality (including office rental; other office costs

and meetings/training/events);

•Office supplies; and

•Recruitment services

The potentially salient human rights risks associated with

these sectors will serve as a basis for Aker Horizons’ targeted

mitigation work, and include:

•Health and safety, including workplace conditions

and excessive working hours

•Forced labor

•Child labor

•Collective bargaining and freedom of association

•Indigenous peoples’ rights and affected communities

•Equality, diversity and inclusion

The vast majority of Aker Horizons’ direct suppliers are from

countries considered to be of low risk from a human and labor

rights perspective, which to some extent serves to mitigate

the risk of Aker Horizons causing or contributing to adverse

human rights impacts through its supply chain. This is also

the case for the construction project in Narvik, which

predominantly makes use of local direct suppliers. The risk

remains, however, that the Company could be directly linked

to adverse impacts through its indirect suppliers, particularly

in the categories electronics and computer equipment,

sectors with typically higher supply chains risks. The

Company is in the process of following up with its direct

suppliers to better understand any such potential adverse

impacts that may arise through these supply chains.

Aker Horizons’ limited number of direct suppliers from higher

risk countries (specifically, Brazil, Greece and the US) are for

the most part providers of consultancy services, a category

that has been considered low risk.

Aker Carbon Capture

Aker Carbon Capture’s human rights impact assessment did

not identify any actual adverse impacts linked to, contributed

to or caused by the company’s own operations, suppliers or

customers. Considering Aker Carbon Capture’s operating

model, the geographic location of its suppliers, combined with

the limited use of migrant workers, labor-intensive work and

low-wage labor, Aker Carbon Capture’s assessment is that

the risk of adverse human rights impacts materializing in its

own operations or supply chain is limited. Furthermore, the

items procured by the company are highly technical in nature

and require skilled competence, which reduces the risk of

child labor specifically.

Nevertheless, the company recognizes that the potential for

adverse impacts on human rights cannot be categorically

ruled out based on the above risk-reducing factors alone, and

therefore considers due diligence, regular risk assessments

and continuous monitoring to be of utmost importance to

prevent, detect and respond to potential adverse impacts on

human rights.

Mainstream Renewable Power

An overview of Mainstream’s human and labor rights risks will

be included in the full Transparency Act Due Diligence Report,

following a human rights impact assessment in in the first half

of 2023.


		Aker Horizons in Brief Board of Directors’ report Sustainability Financials and Notes Corporate Governance Report

Aker Horizons Annual and Sustainability Report 2022 57

Performance commentary

During 2022, Aker Horizons has made significant progress to

further improve its management approach and processes with

regard to human rights. Through the performance of an initial

human rights impact assessment on parts of the Aker

Horizons Group, a solid base for further work for the

protection and promotion of human rights has been

established. Furthermore, updates to internal procedures and

processes set the stage for continuing to deepen the

integration of human rights considerations in all activities.

This is a complex area of work, and there is inevitably room

for improvement. Some risks of adverse human rights impacts

can be significantly reduced through the development and

implementation of internal procedures and processes. Others

are more profoundly challenging, particularly where such risks

are inherent in the nature of current global value chains in the

green transition - such as the need for metals and minerals,

and the current concentration of the production of input

factors in challenging geographies.

Going forward

Going forward, Aker Horizons will focus on its risk-based

approach to human rights and human rights due diligence,

including following up on newly introduced processes to

ensure all new suppliers are screened using social criteria.

The Company will also work continuously to further embed

human rights assessments across the portfolio. For Aker

Horizons’ own operations, this includes following up specific

suppliers identified as representing a higher risk, to

understand how they implement human rights due diligence in

their own operations and supply chains.

A priority for 2023 is to complete a full human rights impact

assessment for the whole of the Aker Horizons Group, in

order to enable reporting pursuant to the Norwegian

Transparency Act by the close of the first half of 2023. Aker

Horizons will support its portfolio companies in identifying

risks to and taking steps to safeguard human and labor rights

throughout their own operations and value chains. The aim is

to ensure that every company works systematically to monitor

and mitigate risk and act responsibly in delivering on its

human rights pledges.

In order to more effectively contribute to the identification of

human rights violations, Aker Horizons will also train key

personnel on the procedures for conducting human rights

audits. This will be in addition to continuing general human

rights training and awareness-raising, including coverage in

Compliance and Sustainability training courses.


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Aker Horizons Annual and Sustainability Report 2022 58

Health, safety and well-being

Maintaining a positive, safe and healthy work environment for all employees in our portfolio and in our value chain is Aker Horizons’ key priority. Health and

safety management is of particular importance in projects in the Group that have reached construction and operation phases and therefore entail a higher risk.

Aker Horizons is strongly committed to ensuring the health, safety and well-being of people as a way of creating long-term societal and economic value.

Aker Horizons’ approach and performance

Aker Horizons’ Sustainability Policy lays out the foundation for

the Company’s approach to health and safety. Accordingly,

Aker Horizons is committed to ensuring a secure working

environment that provides the basis for a healthy and

meaningful working situation, and that affords full safety from

harmful physical and mental influences. Furthermore, Aker

Horizons strives for zero harm and continuous improvement

throughout its value chain.

Health and safety

All Aker Horizons’ portfolio companies and business units

manage their own health and safety. As an active owner, Aker

Horizons sets clear expectations for high HSSE standards,

including adequate work-related hazard identification, risk

assessment, incident investigation, control and reporting

routines. All our portfolio companies report to Aker Horizons

on health and safety issues on a quarterly and annual basis.

Aker Horizons expects its portfolio companies to ensure that

the high HSE standards cover not only their own employees

and contractors, but also extend to their business partners.

Due to this approach, Aker Horizons does not have a

separate health and safety policy.

Aker Horizons’ fully owned asset development arm, Aker

Horizons Asset Development, has a separate HSSE policy,

which describes Aker Horizons Asset Development’s

commitment and behaviors across its operations. In 2022,

Aker Horizons Asset Development established a management

system in accordance with ISO 45001 and 14001 to support

its project development and future operations. Aker Horizons’

own asset development is at an early stage of EPC activities

in one of the asset locations (Narvik), while Aker Horizons

Asset Development currently does not yet have any assets in

operation.

Thus, the current health and safety risk is mainly located in

Aker Horizons’ portfolio, in particular those of Mainstream

Renewable Power’s projects where large-scale construction

of renewables infrastructure progressed during 2022.

Performance

Through 2022, health and safety remained a priority for Aker

Horizons and its portfolio. Below is a performance overview

for 2022. Incident rates for individual companies can be found

in the Full ESG Performance metrics.

Incidents in Aker Horizons and its portfolio


	Own employees	Contractors
Fatalities	0	0
Lost-time injuries (LTI)	3	6
Medical treatment cases (MTC)	1	3
Total recordable injuries (TRI)10	4	9

In 2022, Mainstream, the only company in Aker Horizons’

portfolio with projects at all stages of development and

operation, continued its strong track record in health and

safety. For the company, 2022 was a year in which more than

3.7 million employee and contractor hours were recorded in

the build-out and operation of multiple wind and solar power

assets. There were no fatal incidents, and the number of

environmental, health and safety events deemed to have

posed a high risk of serious injury or death, known as a

Significant Incidents with Potential (SIPs), was well below

Mainstream’s own target limit of 4.0 per million hours worked,

and achieved a rate of 1.75 across all Mainstream’s activities.

There were more than 2,200 field observations and safety

walks, focusing on turbine and solar power commissioning,

substation activities, lifting, development site visits and

logistics.

There were no SIPs among Mainstream’s own employees.

Following two SIP LTIs involving contractors in Chile, a

lessons learned process was completed. This resulted in the

introduction of a safety culture campaign to reinforce safety in

construction and support safety-related activities.


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Aker Horizons Annual and Sustainability Report 2022 59

10 Mainstream Renewable Power also includes First Aid Cases in TRI figures, but they have not been included in the table for comparability. In 2022, Mainstream recorded 5 First Aid Cases for own employees and 12 for contractors.

A year of zero accidents at

multiple wind farms

Mainstream’s commitment to safety is

paramount. A safe and productive workplace

during construction and operation of large

renewable assets often depends on excellent

teamwork, communications and compliance,

not just between Mainstream employees, but

also among the contractors they work with.

In 2022, such cooperation was exemplified at

a number of Mainstream’s wind farms in

Chile. The company’s Llanos del Viento Wind

Farm had zero accidents over 365 days,

involving 516,236 accumulated hours worked

and 40,340 cumulative training hours. The

Caman Wind Farm also recorded 365 days

with zero accidents, during which 8,000 m2 of

concrete, 920 tonnes of iron and 270,000 m3

of earth were moved.Safety statistics such as

these are reflected in Mainstream’s

operations globally, due to its ‘safety-first’

approach to everything it does. Safety is

Mainstream’s number one value and is

applied at all levels of the business.

To further embed safe practices into the company’s corporate

culture and to comply with regulations across different

markets, Mainstream’s Safety, Health, Environment and

Quality team delivered more than 56,000 hours of training in a

variety of subjects, averaging 1.7 hours for every employee

and contractor. In 2022, Mainstream intensified its ISO

systems maintenance and risk mitigation efforts at its main

hubs by delivering thousands of hours of training based on

country-specific mandatory requirements.

Aker Carbon Capture operates with a zero harm mindset and

the belief that all incidents can be prevented. As construction

activities commenced at the Brevik CCS and the Twence

CCU projects in 2022, several operational safety-related

procedures and measures were implemented. Aker Carbon

Capture obtained the ISO 45001 certification for Occupational

Health and Safety in 2022, conducted mandatory HSSE

training sessions and went a full year with zero incidents.

The same was the case for Aker Horizons’ EPC work in

Narvik, where no injuries were recorded beyond two low-

impact first-aid cases. One noteworthy discovery was made

on the first day of site works - an undetonated bomb from

World War II, which was immediately secured and dealt with

by the Norwegian Armed Forces before work could continue.

The day-to-day follow-up of this project is managed by

Nordkraft, Aker Horizons’ JV partner in Narvik. Follow-up

measures in 2022 included participating in walkthroughs of

HSE requirements for contractors, conducting weekly

announced and unannounced site visits and participating in

HSE inspections, and following up any identified deviations

and improvements. At the start of 2023, the Norwegian Labor

Inspection Authority made an unannounced visit to the site

and the preliminary report has concluded that there were no

deviations and that health and safety was considered well

maintained.

Further details on management processes at the level of Aker

Horizons’ portfolio companies can be found in the chapter on

Responsible Business Conduct, under “Management

systems”.

Well-being

Aker Horizons’ ambition is to foster well-being in the

workplace by providing a good and inclusive working

environment, enabling low levels of absence due to illness

and retaining a highly skilled and motivated workforce. Aker

Horizons strives to offer offer flexible working hours and

safeguard employees' preferred work-life balance. These

ambitions are also expected from portfolio companies.

In the Aker Horizons employee engagement survey

conducted in 2022 (response rate 92 percent), the majority of

employees stated that the Company cares for its employees

and that they are very satisfied to work here.The satisfaction

level was 74 percent based on “agree” and “strongly agree"

replies to the question “Most of the time, I am very satisfied to

work here". The survey also revealed that employee

satisfaction could be improved even further by the staging of

more social activities. This was a key piece of feedback for a

relatively newly established company. A social plan for the

year was devised and implemented, containing off-site

gatherings and other initiatives for people to come together

and get to know each other.

The well-being of their people is also high on the agenda for

the other companies in the Aker Horizons Group. Aker Carbon

Capture has implemented a bi-annual well-being survey, and

established processes for addressing the results. Mainstream

received strong results on their employee satisfaction survey,

and the company was rewarded with a reconfirmation of

Mainstream as a Great Place to Work in 2022.

Aker Horizons has established limited core hours and a

flexible working model with opportunities to work from home.

By offering flexibility, the Company aims to support a healthy

work-life balance. Results from the employee engagement

survey showed that the majority of the employees believe that

their workload is reasonable. Ensuring a healthy work-life

balance will continue to be a focus going forward.

Alongside competitive compensation, Aker Horizons offers

comprehensive benefit packages to all its own employees,

regardless of their type of employment contract. This includes

an on-site health and wellness center. Aker Horizons also

offers an insurance package, which covers occupational

injuries, personal accidents, sickness, disability and travel, as

well as group life insurance.

92%

Employee engagement survey

response rate

74%

Satisfaction level


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Aker Horizons Annual and Sustainability Report 2022 60

Health promotion

In addition to healthcare and insurance plans, Aker Horizons

offers a comprehensive wellness program for all employees.

This includes access to an on-site private health center,

where Aker Horizons employees have access to a physician,

health counseling and medical treatment.

Aker Horizons also focuses on addressing non-occupational

aspects of life, such as healthy diets and physical activity, by

providing access to healthy food options at our headquarters

office’ canteen and membership of the on-site Lifestyle fitness

center. All Aker Horizons employees are also offered

membership of the training and lifestyle portal Aker Active. To

provide adequate flexibility, all services for physical activity

can be used by our employees during paid working hours as

well as after work.

In 2022, excluding several internal career moves across the

Aker Group, staff turnover at Aker Horizons was 11.6 percent.

The turnover rate for the Aker Horizons’ portfolio totaled 11.5

percent.

Performance commentary

Aker Horizons notes the extensive efforts being made across

the Group to safeguard employee health, safety and well-

being. The Group also notes the low numbers of LTIs (3 for

own employees, 6 for contractors) and TRIs (4 for own

employees, 9 for contractors). Aker Horizons was also

pleased to see an increase in HSE training across the Group,

and supports the continuation on this endeavor.

Aker Horizons also observed that investing in its people

brought results in terms of both the very high response rate

for the employee satisfaction survey as well as the relatively

good results. Nonetheless, there remains room for

improvement, and the well-being of our people will continue to

be a priority.

Going forward

As Aker Horizons develops and expands its operations in

projects, the Company will focus its efforts on ensuring that

the health, safety and well-being of its people are always a

priority. Aker Horizons will continue to set high health and

safety expectations for its business units and portfolio

companies, requiring them to manage risks and create a

strong and proactive HSE culture. Aker Horizons will also

continue to closely monitor health and safety performance

across the Group.

In Narvik, the ambition is to continue the focus on on-site

follow-up, and additionally focus on working hours, updates to

site-specific HSE plans and monitoring the overall risk picture.


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Diversity, equality and inclusion

A diverse and inclusive workforce is the foundation for building an agile and future-fit business, and driving progress. As a socially-conscious company, Aker

Horizons plays a role in promoting equal opportunities. Our people are our greatest asset and their diversity also provides a strong business advantage.

Aker Horizons’ approach

Through Aker Horizons’ Sustainability Policy, the Board of

Directors has established the commitment that the company

will strive to ensure equality, diversity and inclusion

throughout its business. Aker Horizons shall ensure equal

opportunities and strive for a balance between the genders,

increased diversity and inclusion at all levels and in all parts

of the businesses. Aker Horizons does not tolerate any form

of discrimination on the basis of, for example, gender

expression, sexuality, disabilities, race or religious beliefs.

Through the recruitment process, the Company works actively

to provide equal opportunities and ensure a more diverse

workforce by addressing typical barriers and implementing

adequate measures.

In 2022, Aker Horizons implemented ‘Guidelines for equality,

diversity and inclusion for governing bodies and executive

management’, a new requirement under the Norwegian

Accounting Act. These are available on Aker Horizons’

website. According to the guidelines, Aker Horizons’ Board of

Directors should consider a variety of perspectives in its

decision-making process, which may be achieved through

diversity in gender, background, education, experience,

expertise and other factors, and the inclusion of independent

directors. Other Aker Horizons’ governing bodies, and

governing bodies in the portfolio companies, are also

encouraged to ensure a gender balance, as well as diversity

in age, background, experience and skills.

Diversity is also important in executive management. Aker

Horizons’ executive management comprises the CEO and

CFO, and it is therefore important to look at the broader

organization when considering gender balance. The

Company works systematically to ensure equality, diversity

and inclusion throughout its business, with a long-term

ambition of gender balance at all levels, diversity in

background, education and competence, the inclusion of

people with disabilities and other factors. This ambition

extends to the portfolio companies, through active ownership

and via board positions.

All of the companies within the Aker Horizons Group are

focusing on strengthening diversity and inclusion in their

organizations. Mainstream Renewable Power has a dedicated

Diversity and Inclusion committee and is working on a

structured program devoted to those issues. Aker Carbon

Capture has implemented concrete measures to prevent

unconscious biases in the recruitment process, has specific

inclusion ambitions and has introduced a new Equality

Procedure.

Aker Horizons aims to ensure equal pay for work of equal

level, scope and responsibility. Variations may occur due to

differences in the level of skills and experience employees

bring to the role. The Company conducts a yearly analyses to

understand and address any gender pay gaps.

All companies in Aker Horizons’ portfolio have implemented

measures to ensure fairness in their recruitment processes,

and they all have a Code of Conduct that specifically

addresses equal treatment and non-discrimination in the

workplace.

As a way of promoting a diverse workforce in portfolio

companies, Aker Horizons collects data related to diversity

and inclusion from all its companies across the portfolio.

Performance on diversity is reported to Aker Horizons on an

annual basis, in accordance with the Norwegian Diversity

Report. During 2022, the Company introduced four gender

options in its systems and reporting; male, female, other*

(*gender specified by the employees themselves) and not

disclosed. No other genders than male and female were

reported, and are therefore not included in the graphics.

Performance

The percentage of women at Aker Horizons has been

relatively stable throughout 2022, and at year-end women

constituted 32 percent of the workforce. This is still below our

ambition, and Aker Horizons will continue to implement

measures to increase diversity, with a special focus on

gender. There is great diversity in the nationalities

represented in Aker Horizons’ workforce, with a total of 22

different nationalities reported at year-end. This is an

important contributor in building a strong, diverse and capable

workforce. The average age of our employees is 44.

In the employee engagement survey conducted in 2022, the

vast majority of employees responded positively to the

statement “people of all kinds/cultures and backgrounds are

valued here” (agree, strongly agree), which indicates a sense

of inclusion in the organization. Yet, the ambition is to improve

this score.

As the owner of portfolio companies, Aker Horizons aims to

have diversity in capabilities, and highly qualified board

members and managers who serve as role models in their

companies. Aker Horizons, including all portfolio companies,

currently have 50 percent female CEOs, and their

management teams consist of 38 percent women, which is an

increase since year-end 2021. This demonstrates that the

focus and initiatives implemented to increase gender diversity

are proving effectful. Gender diversity at the CEO level is

above the national average in Norway11. The same goes for

executive diversity, where Aker Horizons, including all

portfolio companies, score 13 percent above the national

average in Norway.

The number of employees working for Aker Horizons and its

portfolio companies decreased during 2022, largely due to the

sale of REC Silicon and Rainpower. The percentage of


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11 CORE Norwegian Gender Balance Scorecard 2020: https://www.samfunnsforskning.no/core/english/publications/Infographics/core-norwegian-gender-balance-scorecard/core-norwegian-gender-balance-scorecard-200---2020.pdf

women employed increased from 27 percent to 35 percent

across the full portfolio of companies.

People from 49 different nationalities are employed by Aker

Horizons, including all portfolio companies, which is an

increase from 2021. Aker Horizons aims to foster diversity in

national origin and background in its organization going

forward.

All those employed by a Norwegian Aker Horizons entity, are

entitled to parental leave. To better support its employees,

Aker Horizons offers full wages for primary caregivers in

connection with childbirth or adoption. Aker Horizons also

pays full wages when employees’ family members are ill,

provided that the Norwegian National Insurance Scheme’s

criteria for payment of care benefits or attendance allowance

are met. In 2022, seven employees took parental leave, two

women and five men. The women took an average of 15

weeks’ parental leave during 2022, while the men took on

average seven weeks. This number is not adjusted for

parental leave being distributed across different years, which

was the case for most of the employees in question.

In 2022, no cases related to discrimination, harassment or

other unacceptable behavior was reported in Aker Horizons.

For further information on procedures to enhance ethical

behavior, see the section Responsible business conduct.

Performance Commentary

During 2022, Aker Horizons made significant progress to

further strengthen its focus on diversity and equality. The

Company implemented ‘Guidelines for equality, diversity and

inclusion for governing bodies and executive management’

and launched several diversity and inclusion initiatives to

raise awareness and understanding, and foster a more

inclusive environment. Furthermore, Aker Horizons changed

its systems and reporting formats to include more gender

options.

The increase in nationalities represented has strengthened

the diversity of the workforce both in Aker Horizons and

across the portfolio. Yet, the Company still has a way to go to

reach its ambition of gender diversity at all levels and in all

parts of the business.

Going forward

Going forward, Aker Horizons will continue working

purposefully to create a workplace that not only promotes

diversity, but creates a sense of inclusion and allows our

people to be themselves and feel appreciated.

In 2023, our main focus area will be to work on gender

diversity. We will also continue developing and rolling out

diversity and inclusion initiatives through combined efforts

between the relevant functions in the Company.

Photo: Aker Carbon Capture


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Pride Month at Aker Horizons

In June 2022, Aker Horizons organized a

diversity and inclusion program to mark Pride

Month. It was a joint initiative across the Aker

Horizons portfolio companies and aimed at

raising awareness and strengthening employee

knowledge of specific topics related to diversity

and inclusion, such as LGBTQ+, disabilities,

gender, ethnicity and age. The program included

deep-dive sessions exploring relevant aspects of

gender and sexual diversity from a workplace

perspective, giving Aker Horizons an introduction

to some key concepts and terms, as well as an

understanding of the relevance of diversity in

management.

As a part of the program, conversation cards

were distributed around the office to spark

reflection and increase awareness and

knowledge about LGBTQ+ rights. Furthermore,

Aker Horizons sponsored Amnesty International

Pride bracelets for all its employees. The money

raised went to support Amnesty’s work for

LGBTQ+ rights internationally.

In response to the attack on the LGBTQ+

community in Oslo in June, Aker Horizons chose

to dedicate the proceeds from the sale of excess

shares from the merger with Aker Clean

Hydrogen and Aker Offshore Wind to three

organizations working to promote diversity and

inclusion.

Talent attraction and development

Aker Horizons and its portfolio rely on highly skilled people, and in a competitive market, talent attraction and development is central to realizing Aker

Horizons’ ambitious climate goals and delivering on our strategy. Attracting, developing and retaining the right talent is a priority for Aker Horizons, and this is

becoming increasingly important as the Company’s activities and ambitions extend to locations ever further afield.

Aker Horizons’ approach and performance

Aker Horizons’ approach to talent attraction involves

participating in career days at universities and schools. In

2022, Aker Horizons and several of its portfolio companies

held presentations at open days at institutions such as the

Norwegian University of Science and Technology (NTNU) and

the Arctic University of Norway (UiT) in Narvik. Representing

companies across the Aker family, the Aker group staged its

own career day at NTNU. This was an opportunity to

showcase the breadth of competence areas and opportunities

available in the Aker group. Some of the portfolio companies

run internship programs, which has resulted in permanent

appointments.

Aker Horizons’ employees are offered competitive

compensation and rewards, and varied work opportunities. All

Aker Horizons’ new hires are onboarded and integrated into

the Company’s way of working. The Company provides

mandatory training on sustainability and compliance, and

offers continuous industry insights. Aker Horizons and

portfolio companies actively promote skills development by

providing employees with various training opportunities. An

overview of specific data on average hours of training per

employee across the portfolio can be found in the full ESG

performance metrics.

Competence development is also stimulated by ongoing

professional growth, largely through on-the-job training and

working on different projects. Furthermore, Aker Horizons

increasingly offers function-specific or specialist training to

staff, to encourage continuous learning and development.

To ensure and stimulate professional development, all

employees in Aker Horizons and across the portfolio

participate in a performance review twice a year.

There are also cross-Aker initiatives, such as the CXO

program, Aker Talent Student Challenge and Aker

Scholarship. Furthermore, talent attraction and development

to fill career opportunities across the Aker Horizons Group

and wider Aker group of companies is actively managed.

The combination of initiatives described above is expected to

help make Aker best-in-class when it comes to attracting

talent, reducing staff turnover, building skills within the

organization, and enabling personal and professional growth

for its employees.

Performance commentary

In 2022, Aker Horizons and the portfolio companies

successfully attracted and hired talent at all levels of the

organization. Being present and establishing a strong link to

schools and universities internationally is part of our strategy

to build a strong pipeline of talent from an early age. Likewise,

through targeted search, campaigns and recruitment

internationally, the companies were able to secure both

functional and technical specialists at mid- and senior level to

drive our business forward.

Going forward

Building the Company’s employer proposition and securing

the required competence will continue to be a focus in 2023.

Along with other Aker group talent initiatives, the CXO

program will continue in 2023. The program’s new cohort of

executive talent includes participants from Aker Horizons and

its portfolio companies.

The focus on regular development dialogues, skills training

and other leadership development programs across Aker

Horizons and its portfolio companies will continue in 2023.


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Aker-wide initiatives for talent attraction and development

CXO program

In 2022, the Aker group initiated a new, year-long

leadership program, named CXO, to develop its future

executives. The pilot launched in March and included 10

men and 10 women from different Aker companies,

including Aker Horizons’ portfolio companies. The CXO

program focuses on expanding business acumen as well

as personal leadership development, including building

greater self-awareness, goal setting and stakeholder

management. Overall, it is designed to develop an

understanding and shared perspective of what it takes to

be an executive in the Aker group and how to make a

positive difference. In February 2023, another 12 men

and 12 women from 12 Aker companies began a similar

journey. Through a series of five modules, the group will

deepen its insight into each Aker company, learn about

different segments within renewable energy, work on

personal leadership, and build a personal executive

leadership toolbox. A mentoring process is also part of

the program, to help apply what they have learned to

their daily practice.

Aker Talent Student Challenge

For the fifth time, 12 Aker companies, including Aker

Horizons, invited 40 students to the Aker Talent Student

Challenge at Fornebu, Norway, in 2022. The students

were given 30 hours to find solutions to make the

companies fit for the future. The case challenges

covered a range of topics related to the theme “Power

the Energy Transition”. Aker Horizons had a student

group working on a case related to developing future

green industries in the Narvik region, and provided two

experts to guide them in their work. Our portfolio of

companies contributed cases related to both low-carbon

fuel and urban mining, connected to the increased need

to develop green industry within sustainable social and

environmental boundaries. A number of participants were

subsequently offered internships or graduate positions in

various Aker companies.

Aker Scholarship

The Aker Scholarship supports Norwegian top talent

from all fields of study to take Master and Ph.D. degrees

at nine world-leading universities. Seeking to develop

future leaders for business, academia and society at

large, the students are secured full funding of their

studies as well as substantial guidance and practical

support during their studies and early careers. Since

2015, 169 students have benefited from an Aker

scholarship. In 2022, 25 new students were offered

scholarships. The grant is awarded by Anne Grete

Eidsvig and Kjell Inge Røkke’s Charitable Foundation for

Education, which is privately funded by Kjell Inge Røkke.

Aker is responsible for operating the foundation, with

Aker President and CEO Øyvind Eriksen chairing the

foundation’s board. At the end of 2022, four former Aker

Scholars were employed in Aker Horizons and Aker

Horizons’ portfolio companies.


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Loc

Prosperity for All

Aker Horizons and its portfolio companies contribute to

prosperity for all through the development of green industries

and the creation of long-term value for the communities we

operate in. To realize this ambition, Aker Horizons and its

portfolio companies create jobs, develop skills for the future,

innovate, and invest in research and development. Aker

Horizons’ purpose to solve fundamental challenges to

sustainable existence is, at its core, about protecting,

preserving and restoring prosperity for all.

In this chapter, one material topic has been

identified for Aker Horizons:

•Local communities


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245

new jobs

created

Local communities

Being a planet-positive company entails being respectful of the rights of the communities in which Aker Horizons and its portfolio companies operate, and

creating long-term value for them. Engaging in dialogue with, and understanding the needs and expectations of, local communities is critical to building

mutual trust. It is also a prerequisite for obtaining a social license to operate.

Aker Horizons’ approach and performance

Aker Horizons is committed to using its presence in local

communities as an opportunity to have a positive impact. As

Aker Horizons and its portfolio companies expand operations

globally and mature projects, they will continue striving to

create long-term value creation for the local communities in

which they operate.

Across Aker Horizons and its portfolio companies, there is a

strong focus on building intellectual capital as knowledge-

based businesses, with a focus on research and

development. Investing in, and sustaining, innovation is

viewed as a success factor. Aker Horizons can contribute to

the prosperity of local communities through economic

development and job creation, or by supporting cornerstone

industry development, thereby also contributing to thriving

communities in small or remote locations.

At the same time, Aker Horizons and its portfolio work through

all stages of project development to prevent, detect and

address any potentially adverse environmental and social

impacts.

Further information on how Aker Horizons and its portfolio

companies are investing in innovation and research and

development can be found in the chapter on Planet-positive

impact.

Building trust

Aker Horizons and its portfolio companies are committed to

engaging fully with local communities. To obtain a license to

operate and receive valuable input, they work continuously to

build trust with local communities through direct dialogue as

well as through media communication and participation at

relevant conferences.

Mainstream Renewable Power has for years been actively

building relationships with local communities. The company

practices early and regular engagement, starting at the outset

of the project to understand any concerns local communities

may have, in order to take these into account during the

project design phase. Mainstream has dedicated community

liaison officers for all its project locations to ensure that

communities’ needs and concerns are well understood. The

company has established a Global Development Standard

and a Community Charter that guide its engagement with

local communities. Its Global Development Standard outlines

a stakeholder engagement approach that is aligned with

international performance standards, such as the International

Finance Corporation’s Sustainability Framework and the

Equator Principles.

While Mainstream, the company with the longest operational

track record in Aker Horizons’ portfolio, has long-standing

underlying procedures for engagement with local

communities, the rest of the portfolio is focusing on building

strong and productive engagements with the communities in

which their projects are under development.

Creating jobs and building skills for the future

As Aker Horizons and its portfolio companies expand their

outreach, they also create new jobs and provide training

opportunities that will boost the communities in which the

projects are located. While the total number of employees

working for Aker Horizons and all the portfolio companies

decreased in 2022 due to the sale of REC Silicon and

Rainpower, 245 new jobs were created during the period. By

the end of 2022, Aker Horizons and its portfolio companies

together employed the equivalent of 970 full-time employees

(FTE).

Throughout its portfolio, Aker Horizons promotes investments

in development, training and future skills in the local

communities in which it operates.

Collaboration with academia

Both Aker Horizons and its portfolio companies have

established collaborations with various universities to support

research and build future skills that may contribute to

sustainable industrial development.

In Narvik, Aker Horizons has established a collaboration with

the Arctic University of Norway (UiT) Faculty of Engineering

Science and Technology to develop the skills and

competencies required for the green industrial jobs of the

future. The collaboration is part of Aker Horizons’

development of a green industrial hub in Narvik, Northern

Norway, where UiT offers several engineering programs.

Since Aker Horizons’ project in Narvik will require a vast array

of technical skills, partnering with the UiT is a way to support

the university with its educational and research programs in

the field of engineering and technology, while simultaneously

building the required skills among the local workforce. For

further information on Aker Horizons’ work on talent attraction

and development, see the dedicated section.


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Mainstream Renewable Power is also actively engaged in

collaborations with various local universities. To support

research and local skills development, Mainstream has

signed an agreement with the University of Antofagasta in

Chile to educate workers on environmental management,

fauna rescue and rehabilitation. The company has also

collaborated with academic institutions on environmental

studies on costal birdlife in Chile, as well as on a pilot project

for wind turbine blade recycling in the UK. For further

information, see the section on Planet-positive impact.

Aker Carbon Capture views collaboration with universities and

scientific institutions as an important tool for innovation, and is

a member of the Norwegian CCS Center (NCCS), hosted by

the Norwegian organization SINTEF, one of Europe's largest

independent research organizations, and the Norwegian

University of Science and Technology (NTNU).

Investing in communities

Aker Horizons invests in community projects to support local

culture and society. In 2022, Aker Horizons sponsored

Vinterfestuka (the Winter Festival) in Narvik. The festival

celebrates the construction of the famous Ofoten iron-ore

railway, which was built around 1900 to unite the port of

Narvik with the Swedish iron-ore mines. Today, it still unites

the town with the Sweden border. The Winter Festival

celebrates the town's historical and cultural heritage through

concerts, dance, theater performances, art and exhibitions.

Aker Horizons is committed to making Narvik a great place to

live and study by supporting the festival with discounted

tickets for students at the UiT in Narvik.

Mainstream has been supporting local value creation for

years through its contribution to community development and

economic prosperity where it operates. In 2022, the company

supported a range of small local business, training programs

and other initiatives to boost local economic activity. Over the

course of 2022, Mainstream and its partners invested approx.

EUR 4.6 million in community initiatives to promote business

development and the creation of new skills and jobs at its

locations in Latin America, Africa, and Asia Pacific.

Performance commentary

In 2022, Aker Horizons and its portfolio companies built and

sustained robust relationships with local communities. Aker

Horizons established a good relationship with the community

in Narvik where the Company is developing one of its flagship

projects. Aker Horizons opened a local office in Narvik in 2022

and expects the engagement in Narvik to allow for a

productive collaboration and valuable input from the local

community.

Among Aker Horizons’ portfolio companies, Mainstream in

particular has a solid track-record of building good community

relations, through local investment and capacity building - and

2022 was no exception.

Partnerships with academic institutions form an important part

of Aker Horizons’ engagement with local communities. The

Company’s aim is to support research that will further develop

green technologies and climate solutions.

Going forward

Aker Horizons’ main objective going forward is to maintain

close cooperation with local communities, in order to build

mutual trust, gain valuable input and obtain a social license to

operate. Aker Horizons will engage and encourage its

portfolio companies to develop long-term collaborations to

ensure that our industrial projects will create shared value that

benefits local communities.


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Primary Care Clinic launched

in Witzenberg, South Africa

As part of its socioeconomic development

program prioritizing local healthcare,

Mainstream’s Perdekraal East Wind Farm -

part of the Lekela Power platform - worked in

partnership with the Ceres Provincial

Hospital to launch a new mobile clinic,

providing free healthcare services within the

local community. The clinic was launched in

August 2022 at the Bella Vista Community

Hall, with several community members and

local healthcare service providers in

attendance to mark the new service. The

mobile clinic provides a range of health care

services, including family planning, referrals

for safe TOP & STOP Breast examination;

cervical smear screening, immunization,

COVID-19 testing and vaccination; TB

screening and testing; and HIV screening

and testing.

Funding training and providing

job opportunities

One critical benefit of the global transition to

renewable energy is the significant number of

skilled jobs the sector will create worldwide.

Mainstream is committed to both funding

training and providing job opportunities within

the local communities in which it operates. In

2022, Mainstream’s South African operation

worked with local partners to provide people

with training and employment opportunities at

wind farms such as Perdekraal East, Noupoort,

Loreisfontein, and Khobab. Skills taught ranged

from technical training to safety training,

including wind turbine service training and

business administration, meaning participants

had access to a variety of career opportunities

within the sector.

Good Governance

Aker Horizons is committed to creating long-term value and

views governance as interconnected with economic,

environmental and social impact. Good governance is

necessary to safeguard the interests of all stakeholders,

including shareholders. Furthermore, good governance

provides the necessary tools for Aker Horizons to navigate

risks and embrace opportunities.

In this chapter, two material topics have been identified for

Aker Horizons:

•Responsible business conduct

•Public policy engagement


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Responsible business conduct

Responsible business conduct and good corporate governance provide the foundation for Aker Horizons’ realization of its sustainability objectives. Aker

Horizons’ ambition is to develop companies that solve current global challenges while promoting ethical and transparent business conduct. Being an investor

and project developer with a portfolio in sectors and geographies that might be exposed to high compliance risks, responsible business conduct is a key

priority and underpins our license to operate.

Aker Horizons’ approach and performance

Aker Horizons is committed to conducting its business in a

socially and environmentally ethical way. Our corporate

culture is based on the principles of integrity, transparency

and respect for people and the planet. These principles

underpin Aker Horizons’ approach to investment, ownership

and project development, as well as secure value creation for

Aker Horizons’ shareholders and other stakeholders. Aker

Horizons’ investors and other stakeholders also expect us to

exemplify responsible business conduct, and we are

continuously working to live up to their expectations.

Tone from the top

Responsible business conduct is a key concern for Aker

Horizons’ Board of Directors. The Board sets the Company’s

ambitions and commitments, targets, strategies and risk

profile. This is in line with the general mandate of the boards

of directors across the Aker group as ultimately responsible

for implementing policies adapted to each company’s specific

business. Such policies should be suitable to govern the

business, meet stakeholder expectations and specific

challenges relevant to the company. Aker Horizons’ Board

also receives and reviews updates on key risks, sustainability,

compliance and the Company’s corporate governance at least

once a year.

The Compliance function is responsible for the

implementation and day-to-day follow-up of compliance in

Aker Horizons, including risk-based monitoring and controls.

The Chief Compliance Officer reports directly to both the

General Counsel and Aker Horizons’ Audit Committee, with

the latter receiving compliance updates at least quarterly.

Aker Horizons' commitment to good governance extends to its

role as an active owner. Aker Horizons has clear expectations

with respect to its portfolio companies’ adherence to

responsible business conduct, and ensuing adoption of

relevant governing documents, which must meet Aker

Horizons’ requirements and expectations. In addition, Aker

Horizons actively encourages cooperation and transparent

dialogue between Aker Horizons’ representatives and

stakeholders. In practice, day-to-day informal exchanges and

interactions built on mutual trust, openness and respect, play

an even greater role in our approach to active ownership and

form the foundation for cooperation on development,

productivity and improvement.

Compliance program

Aker Horizons’ compliance program is anchored in the

Company’s Code of Conduct, Sustainability Policy and

Management of Integrity Procedure. Together these

documents set out the minimum requirements for integrity

standards and integrity compliance programs in the Aker

Horizons Group. These documents are further supplemented

by other governing documents that set out requirements and

provide guidance on important aspects of business ethics and

integrity.

Aker Horizons’ compliance program is comprehensive and

risk-based, and includes regular integrity risk assessments

and internal monitoring processes to detect integrity risks.

The compliance program aims to prevent, identify and

address unlawful conduct, as well as other integrity risks,

ethical misconduct and adverse impacts on human rights in

Aker Horizons’ operations and supply chain. The program

comprises multiple, interlinked factors, including, but not

limited to, specific procedures, integrity due diligence

processes, training and awareness-raising and reporting

mechanisms.

During 2022, the compliance program was strengthened with

new and updated procedures, targeted training and

awareness-raising activities across the Company, the

introduction of new third party screening tools and formalized

systems for registering conflicts of interest as well as gifts and

hospitality (the latter to go live in the first half of 2023).

In Q4 2022, the Compliance function conducted an integrity

risk assessment, covering Aker Horizons and the portfolio

companies. The assessment, which was based on internal

surveys, targeted interviews and a holistic examination of

compliance risks, forms the basis for Aker Horizons’

compliance priorities for 2023. The results of this risk


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assessment, together with the 2023 compliance priorities,

were approved by the Audit Committee.

Aker Horizons sets the same high expectations for its portfolio

companies’ compliance programs. As a result, Aker Horizons’

Code of Conduct expresses expectations that its portfolio

companies will implement their own codes of conduct that

adequately address the same principles for ethical behavior.

Aker Horizons follows up to ensure that its portfolio

companies implement and meet its expectations.

Compliance-related performance indicators are reported

annually to Aker Horizons, and the reports submitted to Aker

Horizons’ Audit Committee on a quarterly basis include key

data from across the Group.

In 2022, there were no compliance incidents (i.e. instances of

non-compliance with applicable laws and regulations or the

Company’s Code of Conduct) reported in relation to Aker

Horizons’ own operations or its supply chains.

In the Aker Horizons Group, Chilean authorities conducted 17

inspections of the 10 projects under construction or in

operation by Mainstream Renewable Power. Across

Mainstream’s sites, one contractor received a penalty related

to a health and safety incident, and inspections of two

construction sites resulted in imported wood being fumigated

or destroyed. Mainstream continues to actively engage with

communities in the vicinities of all projects, and over the

course of 2022, conducted 586 meetings with local

communities, indigenous peoples, and regulatory authorities.

Legal compliance

Aker Horizons, in all material respects, complies with all

applicable laws and regulations, and conducts its business

with integrity, respecting cultures and the dignity and rights of

individuals everywhere it operates. In the event of

discrepancy between laws and regulations and the standards

set out in Aker Horizons’ Code of Conduct, the highest

standards consistent with applicable local laws shall be

applied.

In 2022, Aker Horizons and the Group Companies were not

subject to any legal proceedings associated with corruption,

fraud, insider trading, anti-competitive behavior, market

manipulation, other economic crime, malpractice or violations

of other related industry laws or regulations that ended with a

penalty.

More information on Aker Horizons’ compliance program can

be found in the remainder of this section and in the Corporate

Governance Report.

Anti-corruption

Aker Horizons has zero tolerance for all forms of corruption,

bribery, money laundering, insider dealing and any other

financial crimes. Aker Horizons is subject to the anti-

corruption provisions of the Norwegian Penal Code, as well

as similar provisions in other countries where Aker Horizons

operates. Compliance with relevant anti-corruption laws and

requirements is a priority for the Company. In practice, this

priority is manifested through the compliance program, which

has established rigorous controls to identify and prevent both

internal and external corruption risks. These controls include

a comprehensive compliance risk assessment of Aker

Horizons’ operations, diligent third party monitoring, and

training of employees. Employees in roles considered more

exposed to corruption risks receive additional in-depth training

tailored to their specific areas.

Training and awareness

All Aker Horizons employees are expected to be familiar with

the Code of Conduct, the Anti-corruption Policy and the

Sustainability Policy, and are required to complete a

mandatory onboarding training program consisting of three

modules - integrity, work environment and sustainability -

which also includes information on the whistleblowing

channel. The training is mandatory for all employees as well

as contract staff hired for an extended time period.

Participation is logged and included in quarterly reports to

management and the Audit Committee. All employees also

receive annual classroom training on a selection of topics

from Aker Horizons’ Code of Conduct. Employees in higher-

risk roles from an integrity risk perspective, notably the

investment and procurement teams, receive additional in-

depth training on relevant issues. Aker Horizons’ portfolio

companies have in place similar integrity risk training

programs.

In 2022, anti-corruption training was completed by 88 percent

of Aker Horizons’ employees, 100 percent of Aker Carbon

Capture employees, 100 percent of Mainstream Renewable

Power employees and 0 percent of Supernode

employees12.The remaining 12 percent of Aker Horizons

employees who were unable to attend the anti-corruption

training in Q4 2022 will be given an opportunity to attend

training in Q1 2023.

Conflicts of interest

Aker Horizons has appropriate norms and requirements for

avoiding and managing conflicts of interests, as defined in the

Code of Conduct.

The Code of Conduct regulates actual and potential conflicts

of interest where a person’s personal relationships,

participation in external activities or interest in another venture

could influence or be perceived to influence a person’s

decision-making when acting on behalf of Aker Horizons. All

business transactions must be entered into solely in the best

interests of Aker Horizons. Any conflicts of interest that cannot

reasonably be avoided shall be made transparent and

reported in accordance with the Code of Conduct and its

Related Party Principles. Aker Horizons’ managers, together

with the Chief Compliance Officer, are responsible for

evaluating such disclosures, taking mitigating actions and

ensuring that these are implemented.

All types of professional engagements carried out by Aker

Horizons’ employees in other enterprises which have, or may

be expected to have, commercial relations with Aker

Horizons, must be approved in writing by Aker Horizons.

Details about Aker Horizons’ existing processes for managing

and registering actual, perceived and potential conflicts of

interest will be formalized in a new Conflicts of Interest

Procedure during the first half of 2023.


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Aker Horizons Annual and Sustainability Report 2022 71

12 Training for all employees by Supernode scheduled for Q1 2023

Reporting concerns

Aker Horizons has a procedure in place which encourages

the reporting of unethical and illegal behavior and sets out

regulations for the protection of whistleblowers. It also

prescribes the mandatory steps the Company must take to

investigate and manage whistleblower reports. Aker Horizons

has an open and independent third-party integrity channel

where suspicions of unethical or illegal activities can be

anonymously reported. Reportable concerns include

breaches of HSSE rules, discrimination, harassment, insider

trading, corruption, money laundering and fraud, or any other

violations of ethical norms or guidelines. Matters reported

either to managers and board members or through the

integrity channel will be managed according to the same

procedure.

Whistleblower reports on matters in portfolio companies are

addressed via their respective legal and compliance teams.

All of Aker Horizons’ portfolio companies utilize an

independent whistleblowing channel that may be used to

raise concerns, both by internal and external parties. In

addition, they have dedicated internal reporting channels,

which may also be used to report concerns. Aker Horizons’

Audit Committee receives reports on how matters are handled

and may become involved in cases concerning breaches of

high-risk compliance matters or where Aker Horizons

personnel are prevented from handling the case due to

potential conflicts of interest.

In 2022, eight whistleblowing reports were received across

the Aker Horizons Group. Aker Horizons provides ad hoc

support to the Group’s companies on the follow-up of

whistleblowing reports, albeit always on a strictly need-to-

know basis.

During the year, Aker Horizons conducted campaigns to

increase awareness of the third-party whistleblowing channel

and boost awareness and training around whistleblowing

generally.

Responsible supply chain management

While Aker Horizons has limited procurement activities, as

described in the section on Human and labor rights,

responsible supply chain management is important for Aker

Horizons as a developer of projects and an owner of

companies. Aker Horizons encourages its portfolio companies

to ensure responsible procurement and to unlock green

supply chains by setting expectations, monitoring and

mitigating risks, combating corruption and working actively to

prevent and mitigate adverse environmental and social

impacts in their supply chains.

Across the Aker Horizons Group, due diligence is conducted

on all third parties prior to entering into the business

relationship, with enhanced due diligence conducted on third

parties operating in high-risk countries or sectors (or

otherwise considered to be high risk). Aker Horizons’ due

diligence process screens for risks related to aspects such as

the environment, corruption, human and labor rights, financial

crime, and sanctions. All third parties are subject to ongoing

monitoring for the duration of the business relationship.

For more information about Aker Horizons’ human rights due

diligence efforts, see the chapter on Human and labor rights.

In 2022, Aker Horizons implemented a Business Partner

Code of Conduct, and requested that its portfolio companies

implement a document espousing similar values and

requirements. By the end of 2022, all of Aker Horizons’

portfolio companies had either adopted their own codes of

conduct for business partners or had implemented a practice

of requiring business partners to sign up to the principles and

values of the portfolio companies’ codes of conduct. The

Business Partner Code of Conduct can be accessed on Aker

Horizons’ website.

Aker Horizons’ ambition is to set unified standards for best

practice in supply chain management across the portfolio. To

assess potential risks and opportunities, Aker Horizons

includes supply chain risk management in its enterprise risk

management process. The aim is to identify and tackle any

potential risks and gaps related to supply chain management.

Within this framework, Aker Horizons considers environmental

and social risks, including human and labor rights risks. The

result of the enterprise risk analysis, comprising material risks


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Aker Horizons Annual and Sustainability Report 2022 72

and mitigating actions, is reviewed by the Board on a

quarterly basis.

As an active owner, Aker Horizons expects portfolio

companies to develop appropriate due diligence processes to

identify, mitigate and prevent any potential adverse

environmental or social impacts in their supply chains and to

have mechanisms in place that allow for any grievances to be

raised and adequately addressed. This includes having good

processes in place when awarding contracts and conducting

tenders, and developing collaborations with suppliers which

will support and drive responsible business practice and

sustainable development. These expectations and ambitions

have been encapsulated in Aker Horizons’ Integrity Due

Diligence Procedure which, during the course of 2022, was

adopted and implemented across the Aker Horizons Group.

The Norwegian Transparency Act, which entered into force on

1 July 2022, has highlighted the importance of assessing

actual and potential adverse impacts on human rights and

decent working conditions in the supply chain. Throughout

2022, Aker Horizons, as an active owner, has been building

awareness and competence around these important, but

challenging, requirements. The objective has been to ensure

that appropriate steps are taken - both in Aker Horizons’ own

operations and supply chain and those of its Group

companies (their operations and supply chain) - to implement

and comply with the Act. A description of the human rights

impact assessment conducted across Aker Horizons’ own

operations and supply chains is set out in the chapter on

Human and labor rights.

In 2022, Aker Horizons collaborated across the Group to

support efforts in developing a strategic and unified

management of the supply chain. Aker Horizons also has a

forum dedicated to sharing information on risk monitoring, and

reporting across its Group companies.

Data privacy

During 2022, Aker Horizons worked closely with external

counsel to implement a data privacy program which

addresses the collection, use, sharing and retention of user

data, including data transferred to third parties, in compliance

with the EU’s GDPR and the Norwegian Act on Personal Data

(in Norwegian: Personopplysningsloven). The data privacy

program is based on a comprehensive risk assessment

covering both Aker Horizons’ own operations and its third

party relationships.

The roll-out of the new data privacy program will include

implementation, during the first half of 2023, of a number of

new data privacy procedures, along with a governance

structure for data privacy management. The new procedures

cover areas such as safeguarding data privacy and the

handling of personal data breaches and data subject to

access requests. In parallel, Aker Horizons is in the process

of strengthening existing processes to ensure data privacy

issues are adequately addressed in agreements with third

parties.

During 2023, training on data protection will be incorporated

into the regular compliance training provided to all employees.

In addition, relevant employees will receive in-depth training

on specific data privacy issues.

Information security

Information security in Aker Horizons is centrally managed by

Aker IT Services (AITS) on behalf of a number of Aker

companies. In Aker Horizons, good security risk management

involves recognizing the value of assets and information,

identifying threats and making informed decisions based on a

holistic view of relevant risks (including across the areas of

cyber security, physical security and personnel security).

Aker Horizons and AITS are committed to continuously

improving information security in the Aker group.

Underpinning this commitment is a robust governance

structure for security management, with clear roles and

responsibilities. Risk, threat and incident monitoring is in

place, supported by plans for mitigating actions and

operational response measures if incidents do occur.

All Aker Horizons employees receive regular training on

information security. In addition, AITS conducts regular

vulnerability assessments and testing, as well as emergency

preparedness training for relevant personnel.

Risk and opportunity oversight

Managing financial risk, strategic, market and regulatory risks,

legal and compliance risks, climate risk, and project and

operational risks is an integral part of a comprehensive

system for risk management and internal control. Aker

Horizons’ objective for risk management and internal control

is to be aware of and understand risks and to mitigate risks in

the best possible way. Risk management helps to safeguard

assets and the Company’s ability to create value and

attractive shareholder returns.

Aker Horizons’ enterprise risk framework covers all material

risks. This includes financial and ethical risk associated with

corruption and bribery, tax transparency, compensation and

remuneration. Environmental, climate, social and human

rights risks are also considered within this framework,

including within the supply chain. The result of the enterprise

risk analysis, comprising material risks and mitigating actions,

is reviewed by the Board on a quarterly basis.

Aker Horizons assesses its own and its portfolio companies’

exposure to climate-related risks and opportunities. Aker

Horizons assesses portfolio and enterprise-level risk and

opportunity exposure qualitatively across various topics on a

quarterly basis through the ERM system described above. It

assesses climate risk in-depth qualitatively and at a high

level quantitatively on an annual basis, and has plans to

introduce more detailed quantitative assessments for climate

risk specifically. For further information on Aker Horizons’

climate risk governance, management and identified risk

profile, see the TCFD assessment.

Tax governance

Aker Horizons’ view is that transparent tax reporting builds

trust with societies and governments in the areas where we

operate. Aker Horizons’ overall tax principles are set out in the

Sustainability Policy approved by the Board. Tax risks are

identified, assessed and managed in the portfolio companies

in collaboration with Aker Horizons’ Head of Tax, and

monitored through quarterly tax risk reviews, which include

the CFO and General Counsel. Material tax risks are reported

to the Audit Committee as part of Aker Horizons’ risk

management process. Aker Horizons’ tax principles are

reviewed annually, taking changes in international tax

regulations into consideration.


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Aker Horizons Annual and Sustainability Report 2022 73

Management systems

The companies in the Aker Horizons Group are industrial

enterprises engaged in the development, construction and

operation of infrastructure and other industrial development

projects. Establishing sound management systems and

certifications is therefore important to mitigate risk, avoid

serious incidents, exercise control and enable reporting on

continuous improvement.

Aker Horizons Asset Development

Aker Horizon’s wholly-owned asset development arm was

established following the merger between Aker Horizons and

Aker Clean Hydrogen in June 2022. The business unit is set

up to originate, develop and operate industrial-scale hydrogen

projects to meet growing demand for solutions to decarbonize

energy-intensive, hard-to-abate industries such as shipping,

steel and fertilizers. Initial focus areas include green

ammonia, green methanol and green iron. Currently, Aker

Horizons Asset Development does not have any operating

assets. In 2022, the company built a management system in

accordance with ISO 45001 and 14001 to support both

projects and future operations. Going forward, Aker Horizons

Asset Development will establish HSSEQ policies and set

relevant targets for the business unit.

Aker Carbon Capture

Since the company’s establishment, Aker Carbon Capture

has maintained a certified operating model. In 2022, Aker

Carbon Capture was recertified according to the Occupational

Health and Safety Management System standard ISO

45001:2018, the Environmental Management System

standard 14001:2015 and Quality Management standard

9001:2015. Additionally, offices in the UK and Denmark were

added to the certification scope.

Mainstream Renewable Power

Safety is Mainstream Renewable Power’s number one value

and the company is committed to applying the highest

standards of health, safety and environmental management.

The overarching quality management system and the

environmental management system, which is certified to ISO

9001 & 14001 respectively, in Ireland, Chile, South Africa and

Vietnam are important to both guide and improve

environmental performance where the company is

developing, constructing and operating renewable energy

assets. Occupational health, safety and wellbeing is

paramount to Mainstream when they construct and operate

energy projects. Their safety management systems which are

ISO 45001 certified in Ireland, Chile, South Africa and

Vietnam signals the company’s commitment to worker health

and safety.

In 2022, their IS Management Systems (ISO 27001 and ISO

20000) were renewed for the Mainstream Ireland office.

Mainstream’s IS Management Systems have been certified

since 2012 and 2013 respectively and these renewals are

valid until 2024. In 2022, central parts of Mainstream’s

management systems were updated with new sustainability

criteria and assessments, including its enterprise risk

management system, policies, training material for human

rights and anti-corruption, and key environmental

certifications. In 2022, Mainstream Ireland received its third

‘Great Place to Work’ certification.

Performance commentary

Aker Horizons has, over the course of the year, strengthened

its compliance program and made good progress to secure a

unified and ambitious approach to promote responsible

business conduct across the Group. With several new policies

and procedures in place, training implemented and reporting

mechanisms strengthened, there is a solid foundation in place

for continued work in this area.

As a result of Aker Horizons’ portfolio-wide endeavors to

deliver training on integrity and ethics to employees (including

temporary staff), the bulk of the workforce has increased its

competence in this area. The Company considers that this

has reduced the risk of compliance violations, while

recognizing that continued efforts remain necessary.

Going forward

Priorities for Aker Horizons going forward include closely

monitoring the evolving regulatory landscape with its

increasing requirements regarding responsible business

conduct. These developments are welcomed by Aker

Horizons, as they are aligned with the Company’s own

sustainability and compliance ambitions.

For instance, there is increasing focus on responsible supply

chain management. The Norwegian Transparency Act is one

example of this, another is the upcoming EU Corporate

Sustainability Due Diligence Directive, which is expected to

be approved by the European Parliament and Council in

2023.

This EU directive will go even further, requiring companies to

identify and, where necessary, prevent, end or mitigate

adverse impacts on human rights and the environment

resulting from their activities. In 2023, Aker Horizons will focus

on deepening its engagement with suppliers on sustainability

topics. As part of the efforts to accelerate the green transition,

the Company will continue to focus on preventing unethical

behavior in its operations and projects.

There are also multiple initiatives planned for 2023, across all

the topics introduced in this section. The new data privacy

program will be rolled out with a clear governance structure

for data privacy management as well as a number of new

data privacy procedures. During 2023, training on data

protection will be incorporated into the regular compliance

training provided to all employees. In addition, relevant

employees will receive in-depth training on specific data

privacy issues.

Training will also be implemented to boost awareness of the

whistleblowing channel, and Aker Horizons will continue its

work in this area throughout 2023.

Finally, Aker Horizons plans to implement additional

procedures for areas relevant to the Company in 2023,

including a new third-party representative procedure, which

contains strict criteria governing the engagement of third-party

representatives to act on behalf of Aker Horizons. Further

initiatives will include a formalized Conflicts of Interest

Procedure, as well as a Public Policy Engagement Procedure

- for further information about the latter, see the next section.


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Aker Horizons Annual and Sustainability Report 2022 74

Public policy engagement

A world dominated by climate crisis, geopolitical tensions, energy security concerns and market volatility calls for strong public policy responses. Aker

Horizons’ public policy engagement aims to help accelerate the formulation and implementation of effective responses, in line with our climate ambitions.

Aker Horizons’ approach and performance

Public policy engagement is a topic of high strategic and

financial importance to Aker Horizons, since the markets for

many of the solutions that the Company and its portfolio are

developing are dependent on some form of government

support during an introductory phase in order to drive down

costs and for the solutions to become commercially viable.

This may take the form of subsidies, carbon prices, contracts

of difference, regulations or other active industrial policies.

Engaging in the development and formulation of public policy

is thus a tool for managing climate-related transition risk,

which is described more in detail in the section TCFD

assessment.

Aker Horizons’ public policy engagement is aligned with the

company’s strategic ambitions to maximize positive impact by

driving the green transition, prioritize sustainable projects and

make socially and environmentally-sound investment

decisions that create long-term value for people and the

planet. Public policy engagement activities by and on behalf

of Aker Horizons are aligned with the objectives of the Paris

Agreement and consistent with our climate-related goals.

In 2022, working with government relations became

increasingly material for Aker Horizons due the step-up of

policy responses to address the energy security situation

following Russia’s invasion of Ukraine. This came on top of

the continued ramp-up of climate change targets, policies and

measures in the lead-up to 2030. Aker Horizons’ main

markets are all affected by these megatrends. Providing

energy security and fighting climate change through the

energy transition are considered to be of public benefit. This,

in turn, justifies active government policies and measures,

which affect Aker Horizons both as a producer and a

consumer of energy.

Aker Horizons considers it to be of high importance that we

share our knowledge and understanding, and join in the

public discussions on how best to develop policies and

measures to face the joint challenges of climate change and

energy security. Aker Horizons has a dedicated research and

analysis team that continuously monitors climate-related

policies, regulations and technology, as well as commercial

and market developments that feed into the company's

strategy, investment decisions and project development

activities. This mandate involves identifying relevant issues

and developing positions on emerging and existing policies.

Aker Horizons engages with governmental and non-

governmental actors and industry groups, and is active in

relevant arenas to share knowledge and showcase

technological solutions that can enable the energy transition.

We focus on providing advice and views in a transparent

manner, recognizing the potential adverse impact of political

lobbying. For this reason, our engagement complies with the

principles of transparency and good business conduct, with

the Code of Conduct and Sustainability Policy as a guiding

document. Aker Horizons does not provide any kind of

political contributions. In all respects, Aker Horizons’

engagement is closely aligned with the Company’s

sustainable strategic ambitions and is driven by the ambition

to achieve responsible value creation.

Aker Horizons’ public policy engagement can be divided into

five categories:

a.External appearances. This includes direct

engagement and knowledge sharing, for instance by

participating in conferences and seminars. As

described in the section on Climate change, Aker

Horizons was a main partner of the Bellona pavilion,

together with the Norwegian Ministry of Foreign

Affairs, at COP27 in Egypt and hosted sessions and

panels with both national and international political

actors. Other public events in which Aker Horizons

took an active role include Arendalsuka, Norway's

annual week-long festival dedicated to civic and

political engagement and debate, and the Offshore

Northern Seas (ONS) conference. Furthermore,

Aker Horizons contributes to the public discourse

through the publication of opinion pieces. For

example, the CEO of Aker Horizons wrote an op-ed

together with World Economic Forum President

Børge Brende on turning the energy crisis into an

opportunity to accelerate the decarbonization of

industry.

b.Direct dialogue with key stakeholders. Aker

Horizons has been involved in ongoing dialogue

focused on providing knowledge of markets and our

projects, as well as suggesting policy responses that

take into account the interests of society, both

nationally (parliament, government) and locally (e.g.

Narvik municipality). In Rjukan, there has been

close dialogue with Tinn municipality as well as with

the municipality’s wholly-owned industry accelerator.

In Narvik, this dialogue has taken place at several

levels, including with the mayor’s office, the

municipality director and the municipality director’s

industry group. There has also been close dialogue

on zoning and permitting processes with the

administrative planning and building authorities

within the municipalities. Finally, Aker Horizons has

met with foreign government representatives

through official meetings facilitated by the

Norwegian Ministry of Foreign Affairs.

c.Industry associations. Participation in industry

organizations, such as the broadly focused

Confederation of Norwegian Enterprises (NHO) and

the Federation of Norwegian Industries (Norsk

Industri), as well as more narrowly focused

organizations within Aker Horizons’ specific areas of

investment, such as the Global Wind Energy

Council. These organizations constitute platforms

for coordinating policy input with other industry

actors, through initiatives, groups and discussion

forums on relevant topics. Moreover, they constitute

channels for more broadly and indirectly engaging


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Aker Horizons Annual and Sustainability Report 2022 75

with policy makers. In 2022, this included presenting

the Aukra hydrogen project at the NHO Møre og

Romsdal annual conference.

d.Public hearings. In connection with public hearings

on policy proposals, Aker Horizons provides detailed

technical and regulatory input on policies that are

relevant to the sectors and geographies we invest

and operate in. In 2022, this entailed consultation

input regarding offshore wind power auctions in

Norway.

e.NGO support. The final category of political

engagement can be described as supporting

organizations that work politically to further the

same objectives as Aker Horizons. In 2022, this

involved collaborating with the Bellona Foundation

on, among other things, the COP27 pavilion. The

Bellona Foundation is an independent non-profit

organization that aims to tackle the climate

challenge by identifying and implementing

sustainable environmental solutions. To this end, the

organization engages in frequent dialogue with

politicians and bureaucrats.

Performance commentary

In 2022, Aker Horizons has taken steps towards developing a

more structured and strategic approach to public policy

engagement, a development viewed as positive in light of the

importance of public policy to realizing Aker Horizons’

strategic ambitions and climate action at large.

Highlights from the work in 2022 include the prioritization of

rapid and thorough analyses of proposed and implemented

policies as they are announced, to address their possible

impact on markets and projects. This serves both to increase

Aker Horizons’ own understanding as well as to provide

advice to policy makers. An important example is the internal

analysis of the US Inflation Reduction Act as soon as it was

announced in August 2022. This positioned Aker Horizons to

communicate at an early stage the Act’s potential impact to

Norwegian policy makers.

Aker Horizons has also significantly increased efforts to follow

and analyze policy developments in Europe, both through

internal analyses and through contact with European experts

and policy makers. This work has been an important basis for

the development of our position on how policy responses in

Norway may be formulated to align with the EU’s policy

developments.

The work to communicate the analytical basis and key

messages in connection with the public hearings relating to

offshore wind power should also be highlighted.

Furthermore, Aker Horizons has engaged with local

authorities on the development of our projects in Narvik and

Rjukan, which both take an active facilitator role for local

green industry development.

Going forward

As public policy engagement is becoming increasingly

material for Aker Horizons, we will increase our efforts in this

area in 2023. This will be done in a manner which is

transparent and consistent, and with integrity. This includes

transparently reporting on the nature and arenas of Aker

Horizons’ public policy engagement, and how it relates to the

Company’s position and strategic ambitions. To guide these

efforts, Aker Horizons is aiming to implement a Public Policy

Engagement Procedure in the first half of 2023.

In 2023 Aker Horizons will continue to prioritize analytical

activities related to the development of public policies and

regulations. This includes working with international

organizations such as the IEA and WEF. Efforts will be

stepped up to increase the communication of the results and

implications of this work to policy makers and, when relevant,

to the general public.

Stronger engagement with respect to public policy

development in the EU will be important, as the EU is taking

increasingly ambitious steps to address climate and energy

security as well as industrial competitiveness. Discussions

with Norwegian policy makers on what developments in the

EU may signify for Norway will also be a priority. Other

important areas for Norwegian public policy engagement will

include comments to the report by the Energy Commission, a

framework for developing hydrogen projects in Norway, and

supporting the development of offshore wind power

generation on the Norwegian continental shelf.


		Aker Horizons in Brief Board of Directors’ report Sustainability Financials and Notes Corporate Governance Report

Aker Horizons Annual and Sustainability Report 2022 76

Aker Horizons and the

Portfolio’s Sustainability

Summary

This section contains one-pagers summarizing the

sustainability work performed by each of the Aker

Horizons Group companies, and presenting the

scorecard for selected sustainability KPIs.

For a detailed guide on how to read and understand

these one-pagers, see the guide under the section

Transparent Reporting.


		Aker Horizons in Brief Board of Directors’ report Sustainability Financials and Notes Corporate Governance Report

Aker Horizons Annual and Sustainability Report 2022 77

Chair: Øyvind Eriksen

CEO: Kristian M. Røkke

Aker Horizons is dedicated to developing green energy and green industry to accelerate the

transition to net zero emissions.

Corporate purpose: The Company’s aim is to develop companies and projects that reduce

greenhouse gas emissions and promote sustainable living, while providing substantial value

creation over time through active ownership.

Sustainability governance: The Board of Directors and Audit Committee have the overall

responsibility and oversight over sustainability work. The Company's Sustainability Director is

responsible for overseeing sustainability performance on a day-to-day basis.

2022 highlights: Extended the work on sustainability to encompass the Asset Development

business unit. Conducted the first round of reporting and also reported to CDP, receiving a score

of A-. Internal procedures and policies were established on - and initiatives kicked off relating to –

aspects such as human and labor rights, diversity and inclusion, and climate risk. Aker Horizons

had an extensive presence at COP27, and made overall progress towards realizing planet-

positive ambitions across its strategic business areas.


Board of Directors
3	Sustainability policy
3	Independence
3	ESG competence

ESG implementation
3	Targets
3	Strategy
3	Reporting

ESG management
3	Materiality assessment
3	ESG risk management
3	Supply chain monitoring

Greenhouse gas emissions (tonnes CO₂e): Aker Horizons Group


SCOPE 1	SCOPE 2		SCOPE 3		TOTAL
772	5,576	5,690	21,462	21,476	27,810	27,938
Location based	Location based	Market based	Location based	Market based	Location based	Market based

P = Policy T = Target S = Strategy R = Reporting Aker Horizons Holding and Asset Development only


	SDGs	P	T	S	R	Indicator	2022
Planet
Climate change		a	a	a	a	Scope 1 and 2 GHG emissions (location-based, tonnes CO2e)	5
Nature loss		a			a	# sites in/adjacent to protected or biodiversity- sensitive areas (# sites)	0
Water scarcity		a			a	Water withdrawn in water stressed areas (ML)	0
Waste and circularity		a			a	Non-recycled waste (tonnes)	3
People
Dignity and equality		a	a	a	a	Pay equality (gap, expressed as percentage of men's salary)	31.3
Health & well-being		a		a	a	Rate of work-related recordable injuries (employees)	0
Skills for the future		a		a	a	Average hours of training per employee	72
Human rights		a	a	a	a	% of staff completing human rights training	61
Prosperity
Employment and wealth generation		a		a	a	Total wages and benefits paid (NOK million)	236
Innovation in better products, services		a		a	a	Total R&D expenditure (NOK million)	226
Community and social vitality		a		a	a	Total tax paid (NOK million)	160
Governance
Ethics and integrity		a	a	a	a	% of staff completed training on ethics, integrity and anti-corruption	88
Legal compliance		a	a	a	a	# legal proceedings relating to non-compliance with laws and regulations	0


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External commitments

Selected SDGs

Chair: Kristian M. Røkke

CEO: Valborg Lundegaard

Aker Carbon Capture is a pure-play carbon capture company. The company has a proprietary

and field-proven solution to enable carbon emission reduction and removal from hard-to-abate

industries and energy solutions.

Corporate purpose: The Company’s aim is to mitigate climate change by enabling carbon

reduction and removal from industries and energy solutions.

Sustainability governance: The Board of Directors is the highest authority that oversees the

sustainability work in Aker Carbon Capture. The sustainability policy, material aspects,

sustainability targets and key priorities, as defined in the corporate strategy, are approved by the

Board of Directors. Status on progress and developments are reported to the Board’s Audit

Committee on a quarterly basis. Climate risks and other sustainability related risks are discussed

with the board as part of the company’s Enterprise Risk Process.

2022 highlights: Aker Carbon Capture took several important steps to further develop the

company. Particularly, efforts have been made to increase the competences regarding a broad

set of sustainability aspects. Examples include human rights training, strengthening lifecycle

assessment skills and establishing a leadership program for the new leaders in the organization.


Board of Directors
3	Sustainability policy
3	Formalized responsibility
3	ESG competence

ESG implementation
3	Targets
3	Strategy
3	Reporting

ESG management
3	Materiality assessment
3	ESG risk management
3	Supply chain monitoring

Greenhouse gas emissions (tonnes CO₂e)


SCOPE 1	SCOPE 2		SCOPE 3		TOTAL
1	82	15	18,219	18,223	18,302	18,238
Location based	Location based	Market based	Location based	Market based	Location based	Market based

P = Policy T = Target S = Strategy R = Reporting


	SDGs	P	T	S	R	Indicator	2022
Planet
Climate change		a	a	a	a	Scope 1 and 2 GHG emissions (location-based, tonnes CO2e)	82
Nature loss		a			a	# sites in/adjacent to protected or biodiversity- sensitive areas (# sites)	0
Water scarcity		a			a	Water withdrawn in water stressed areas (ML)	0
Waste and circularity		a			a	Non-recycled waste (tonnes)	7
People
Dignity and equality		a	a	a	a	Pay equality (gap, expressed as percentage of men's salary)	7.4
Health & well-being		a	a	a	a	Rate of work-related recordable injuries (employees)	0
Skills for the future		a	a	a	a	Average hours of training per employee	34
Human rights		a	a	a	a	% of staff completing human rights training13	62
Prosperity
Employment and wealth generation		a	a	a	a	Total wages and benefits paid (NOK million)	152
Innovation in better products, services		a	a	a	a	Total R&D expenditure (NOK million)	56
Community and social vitality		a			a	Total tax paid (NOK million)	47
Governance
Ethics and integrity		a	a	a	a	% of staff completed training on ethics, integrity and anti-corruption	100
Legal compliance		a	a	a	a	# legal proceedings relating to non-compliance with laws and regulations	0


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13 Risk-based approach to selecting target groups for broader training. Includes both employees and contract staff. 100% of target group completed training.

External commitments

Selected SDGs

Chair: Kristian M. Røkke

CEO: Mary Quaney

Mainstream Renewable Power is a pure-play renewable energy company with a mission to lead

the global transition to renewable energy. The company is dedicated to creating positive long-

term value for stakeholders, planet and society through socially and environmentally sustainable

project development.

Corporate purpose: Mainstream’s purpose is to build, own and operate renewable energy

around the globe and in doing so, to electrify the world with renewable energy.

Sustainability governance: Mainstream's board has a sustainability sub-committee comprising

directors and senior executives from Mainstream, Aker Horizons and Mitsui. This committee

meets quarterly to review sustainability performance.

2022 highlights: In Chile, Mainstream reached 1.1 GW connected to the grid with eight out of

ten projects energized and producing energy to replace the equivalent of 2.7 million tons CO2. In

South Africa, Mainstream signed 450 MW power purchase agreements for six solar plants.

ScotWind secured a 1.8 GW floating offshore wind farm site with their 50-50 JV with Ocean

Winds.


Board of Directors
2	Sustainability policy
1	Formalized responsibility
2	ESG competence

ESG implementation
2	Targets
2	Strategy
3	Reporting

ESG management
3	Materiality assessment
3	ESG risk management
2	Supply chain monitoring

Greenhouse gas emissions (tonnes CO₂e)


SCOPE 1	SCOPE 2		SCOPE 3		TOTAL
771	5,490	5,555	2,851	2,851	9,112	9,177
Location based	Location based	Market based	Location based	Market based	Location based	Market based

P = Policy T = Target S = Strategy R = Reporting


	SDGs	P	T	S	R	Indicator	2022
Planet
Climate change		a	a	a	a	Scope 1 and 2 GHG emissions (location-based, tonnes CO2e)	6261
Nature loss		a	a	a	a	# sites in/adjacent to protected or biodiversity- sensitive areas (# sites)	N.A.
Water scarcity		a	a	a	a	Water withdrawn in water stressed areas (ML)14	N.A.
Waste and circularity		a	a	a	a	Non-recycled waste (tonnes)	826
People
Dignity and equality		a	a	a	a	Pay equality (gap, expressed as percentage of men's salary)	N.A.
Health & well-being					a	Rate of work-related recordable injuries (employees)15	2.54
Skills for the future			a			Average hours of training per employee	56
Human rights		a		a	a	% of staff completing human rights training	90
Prosperity
Employment and wealth generation		a	a	a	a	Total wages and benefits paid (NOK million)	655
Innovation in better products, services		a	a	a	a	Total R&D expenditure (NOK million)	272
Community and social vitality		a	a	a	a	Total tax paid (NOK million)16	99
Governance
Ethics and integrity		a	a	a	a	% of staff completed training on ethics, integrity and anti-corruption	100
Legal compliance		a	a	a	a	# legal proceedings relating to non-compliance with laws and regulations	0


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14 This information has been collected for all individual sites, but not yet consolidated to a single figure.

15 Mainstream Renewable Power also includes First Aid Cases in TRIF figures, but they have not been included in the table for comparability. When included, this figure is 5.09.

16 Mainstream Renewable Power is committed to working with its communities throughout the lifetime of the asset. For details on community investment, see the section on Local communities.

External commitments

Selected SDGs

Principal Adverse Impact Indicators

The Sustainable Finance Disclosure Regulation and its Principal Adverse Impact (PAI) indicators aim to provide information about potential adverse impacts associated with Aker Horizons’ business and

investments. The table below indicates the proportion of the total portfolio for which data is available. For further details on the calculation methods, see the section on sustainability accounting principles

and methodology under the section Transparent Reporting.


	Aker Horizons Holding	Portfolio	Data coverage
GHG emissions: Scope 1 (tonnes CO2e)	0	451	100%
GHG emissions: Scope 2 (tonnes CO2e)	3	3,248	100%
GHG emissions: Scope 3 (tonnes CO2e)	201	9,734	100%
GHG emissions: Total (tonnes CO2e)	204	13,432	100%
Carbon footprint (tonnes CO2e)	N.A.	14	100%
GHG intensity of investee companies (tonnes CO2e)	N.A.	119	100%
Share of investments in companies active in the fossil fuel sector (percent)	0%	0%	100%
Share of non-renewable energy consumption and production (percent)	1%	0%	100%
Energy consumption intensity per high impact climate sector (GWh per million EUR invested)	N.A	0	100%


	Aker Horizons Holding	Portfolio	Data coverage
Activities negatively affecting biodiversity- sensitive areas (percent)	0	0	30%
Emissions to water (tonnes per million EUR invested)	0	0	30%
Hazardous waste (tonnes per million EUR invested)	0	31	100%
Violations of UNGC principles and OECD Guidelines for Multinational Enterprises (share of investments)17	0	0	30%
Lack of processes and compliance mechanisms to monitor compliance with UNGC principles and OECD Guidelines for Multi- national Enterprises (share of investments)	0%	0%	100%
Unadjusted gender pay gap (expressed as a percentage of men's salary)	31%	16%	30%
Board gender diversity (ratio)	40%	74%	87%
Exposure to controversial weapons (share of investments, percent)	0%	0%	100%


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17 For parts of Aker Horizons’ portfolio, an assessment of performance against minimum social safeguards is currently under development, and has therefore been excluded from this overview.

Taxonomy Status

The figures presented account for 100 percent of Aker Horizons’ portfolio, including Supernode.

100 percent of activities are eligible and 0 percent are non-eligible.

Taxonomy accounting guidelines

The key performance indicators (KPIs) presented in this report include Turnover, CapEx and

OpEx for the reporting period 2022. The KPIs have been calculated according to Annex 1 of the

Art 8 Delegated Act, and include Aker Horizons’ consolidated share of taxonomy-eligible

turnover, CapEx and OpEx in relation to total turnover, CapEx and OpEx, as presented in the

consolidated financial statements.

Approach to classifying activities

Eligibility. A taxonomy-eligible activity means an economic activity that is described in the

delegated acts supplementing the Taxonomy Regulation, regardless of whether that activity

meets the technical screening criteria laid down in the respective acts. Similar, non-eligible

activities are defined as activities not described in the delegated acts.

Alignment. A taxonomy-aligned activity means an eligible economic activity that also complies

with all of the technical screening criteria:

a.Substantial contribution: The economic activity contributes substantially to one or more

of the environmental objectives

b.Do no significant harm: No significantly harm on any of the environmental objectives

c.Minimum safeguards: Compliance with the minimum safeguards

d.The activity complies with technical screening criteria in the delegated acts

supplementing the Taxonomy Regulation

Aker Horizons and its portfolio companies have begun assessing activities on the basis of the

current draft of the Taxonomy Regulation. In 2021, Aker Horizons chose to report on activities

that are currently aligned, and activities that are “expected aligned.” For 2022, expected aligned

projects that are supported by a CapEx plan identifying all planned measures that are necessary

to ensure compliance with the technical screening criteria within a period of five years, have also

been reported as aligned.

Early stage projects that are too premature to claim alignment within the next five years or

present a concrete roadmap to alignment, have been reported as not aligned. This does not

mean that the projects themselves will not be aligned once developed, but simply that such an

assessment will be carried out once they are more mature and it is possible to come to a

conclusion. For further details, refer to the sustainability accounting principles and methodology

in the section Transparent Reporting.


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Turnover

CapEx

OpEx

Financials and Notes

Aker Horizons Consolidated Accounts

> Income Statement

> Other Comprehensive Income

> Balance Sheet

> Cash Flow Statement

> Statement of Changes in Equity

> Notes to the Financial Statements


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Contents


General	Liabilities and equity
1 General information	19 Share capital and capital reserves
2 Basis of preparation	20 Borrowings
	21 Leasing
Performance	22 Provisions and non-current liabilities
3 Operating segments	23 Trade and other payables
4 Revenue and other income
5 Employee benefits	Financial and capital management
6 Other operating expenses	24 Capital management
7 Financial income and expenses	25 Financial risk and exposure
8 Tax	26 Climate risk
9 Earnings per share	27 Financial instruments
	28 Derivative financial instruments
Assets
10 Property, plant and equipment	Group composition
11 Intangible assets and goodwill	29 Changes in group structure
12 Impairment	30 Discontinued operations
13 Investments in associates and joint ventures	31 Subsidiaries
14 Inventories	32 Non-controlling interests
15 Trade and other receivables
16 Marketable securities	Other
17 Cash	33 Capital commitments, guarantees and contingencies
18 Assets held for sale	34 Related party transactions
	35 Subsequent events


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Income Statement

Consolidated statement for the year ended 31 December


Amounts in NOK million	Note	2022	2021 Restated1

Revenues	3, 4	2,371	981
Other income	4	1,918	174
Revenues and other income		4,289	1,155

Materials, goods and services		(2,898)	(949)
Salaries, wages and social security costs	5	(1,000)	(706)
Other operating expenses	6	(1,186)	(747)
Operating expenses		(5,084)	(2,402)
Operating profit (loss) before depreciation, amortization and impairment		(795)	(1,247)
Depreciations and amortizations	10, 11, 21	(494)	(83)
Impairments	11, 12	(4,405)	—
Operating profit (loss)		(5,694)	(1,331)

Financial income		197	15
Financial expenses		(1,001)	(761)
Net financial expenses	7	(804)	(745)

Profit (loss) from equity-accounted investees	13	(152)	(215)
Profit (loss) before tax		(6,650)	(2,291)

Income tax benefit (expense)	8	1,402	(35)
Profit (loss) continuing operations		(5,248)	(2,325)

Profit (loss) discontinued operations	30	30	(103)
Profit (loss) in the period		(5,218)	(2,428)

Profit (loss) for the period attributable to:
Non-controlling interests (NCI)	32	(2,585)	(477)
Equity holders of the parent company		(2,633)	(1,951)
Profit (loss) for the period		(5,218)	(2,428)

Basic and diluted earnings (loss) per share (NOK) continuing operations attributable to ordinary equity holders of the company	9	(4.08)	(3.35)
Basic and diluted earnings (loss) per share (NOK) attributable to ordinary equity holders of the company	9	(4.03)	(3.54)

1) Restated for discontinued operations, see note 30 Discontinued operations


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Other Comprehensive Income (OCI)

Consolidated statement for the year ended 31 December


Amounts in NOK million	Note	2022	2021

Profit (loss) for the period		(5,218)	(2,428)

Other comprehensive income
Cash flow hedges, effective portion of changes in fair values	28	1,772	(97)
Cash flow hedges, reclassification to income statement		59	—
Tax of cash flow hedges		(517)	—
Currency translation differences - foreign operations		1,830	284
Equity-accounted investees - share of OCI		180	(33)
Total items that may be reclassified subsequently to profit or loss, net of tax		3,325	154

Total comprehensive income (loss) for the period, net of tax		(1,893)	(2,274)

Total comprehensive income (loss) for the period, attributable to:
Equity holders of the parent		(603)	(1,846)
Non-controlling interests		(1,290)	(427)
Total comprehensive income (loss) for the period, net of tax		(1,893)	(2,274)


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Balance Sheet

Consolidated statement for the year


Amounts in NOK million	Note	31 Dec 2022	31 Dec 2021

Assets
Non-current assets
Goodwill	11	1,417	2,587
Intangible assets	11	2,040	4,182
Right-of-use assets	21	734	700
Property, plant and equipment	10	15,912	12,324
Deferred tax assets	8	132	1
Equity-accounted investees	13	1,163	1,072
Non-current interest-bearing receivables	34	447	26
Derivative financial instruments	28	1,938	243
Total non-current assets		23,783	21,136

Current assets
Inventories	14	952	716
Trade and other receivables	15	1,577	1,319
Other investments	16	—	702
Restricted cash	17	2,076	2,071
Cash and cash equivalents	17	8,683	5,412
Assets held for sale	18	268	1,202
Total current assets		13,555	11,422
Total assets		37,339	32,557


Amounts in NOK million	Note	31 Dec 2022	31 Dec 2021

Equity and liabilities
Equity
Paid-in capital		15,670	14,365
Reserves		2,137	86
Retained earnings and other equity		(10,711)	(8,726)
Total equity attributable to the parent	19	7,096	5,725
Hybrid capital		—	16
Non-controlling interests	32	6,519	4,245
Total equity		13,615	9,985

Non-current liabilities
Non-current borrowings	20	19,102	17,118
Non-current lease liabilities	21	626	605
Other non-current liabilities	5	84	8
Provisions	22	317	93
Derivative financial instruments	28	—	153
Deferred tax liabilities	8	554	1,112
Total non-current liabilities		20,683	19,089

Current liabilities
Current borrowings	20	871	446
Current lease liabilities	21	61	63
Trade and other payables	23	2,110	2,974
Total current liabilities		3,041	3,483
Total liabilities		23,724	22,572
Total equity and liabilities		37,339	32,557

Fornebu, 17 March 2023

Board of Directors and CEO of Aker Horizons ASA



Øyvind Eriksen	Kjell Inge Røkke	Lone Fønss Schrøder	Lise Kingo	Auke Lont	Kristian Røkke
Chair (non-independent)	Director (non-independent)	Director (independent)	Director (independent)	Director (independent)	CEO


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Cash Flow Statement

Consolidated statement for the year ended 31 December


Amounts in NOK million	Note	2022	2021

Cash flow from operating activities
Profit (loss) for the period continuing operations		(5,248)	(2,325)
Profit (loss) for the period discontinued operations		30	(103)

Adjustments for:
Income tax expense (benefit)	8	(1,402)	36
Net interest cost and unrealized currency loss (income)		802	748
Depreciation, amortization and impairment	10, 11, 21	4,907	100
Share of (profit) loss from equity-accounted investees	13	152	215
Other non cash effects and gains in investments		(1,918)	(168)
Profit (loss) for the period, adjusted		(2,678)	(1,497)

Changes in operating assets		(725)	(142)
Cash generated from operating activities		(3,403)	(1,640)

Interest paid		(381)	(214)
Interest received		123	30
Income tax paid		4	(1)
Net cash from operating activities		(3,658)	(1,826)


Amounts in NOK million	Note	2022	2021

Cash flow from investing activities
Acquisition of property, plant and equipment	10	(3,006)	(3,335)
Payments for capitalized development	11	(65)	(13)
Payments for shares in subsidiaries, net of cash acquired		(61)	(4,852)
Sale of shares in subsidiaries	30	(13)	—
Payments for equity-accounted investees	13	(211)	(239)
Proceeds equity-accounted investees	13	2,951	—
Proceeds sale of property, plant and equipment		—	6
Payments for other investments	16	700	(700)
Proceeds related to interest-bearing receivables	34	28	22
Payments related to interest-bearing receivables	34	(277)	—
Change in restricted cash	17	102	(145)
Net cash from investing activities		148	(9,257)

Cash flow from financing activities
Proceeds from borrowings	20	1,360	7,300
Transaction costs related to loans and borrowings		—	(177)
Repayment of borrowings	20	(604)	(1,022)
Proceeds from issue of share capital		—	5,573
Transaction costs related to issue of share capital		(27)	(159)
Payment of lease liabilities	21	(49)	(58)
Repurchase of treasury shares		—	4
Proceeds from sale of treasury shares		—	(6)
Proceeds from capital increase from non-controlling interest	29	5,569	3,300
Proceeds sale of non-controlling interest		—	1,010
Net cash from financing activities		6,249	15,766

Effect of exchange rate changes on cash and bank deposits		532	(214)
Net increase (decrease) in cash and bank deposits		3,271	4,469

Cash and cash equivalents at the beginning of the period		5,412	943
Cash and cash equivalents at the end of the period		8,683	5,412


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Changes in Equity


Amounts in NOK million	Note	Share capital	Other paid- in capital	Retained earnings	Other equity	Cash flow hedge reserve1	Share option reserve	Currency translation reserve	Equity attributable to parent company	Hybrid capital	Non- controlling interests	Total equity

Equity as of 31 December 2020		—	—	(131)	(154)	—	—	(23)	(308)	—	628	320

Profit (loss) for the period				(1,951)	—	—	—	—	(1,951)	—	(477)	(2,428)
Other comprehensive income				—	—	(73)	—	177	104	—	50	154
Total comprehensive income		—	—	(1,951)	—	(73)	—	178	(1,846)	—	(427)	(2,274)

Transaction with owners of the company
Share issues	19	610	13,924	—	(8,963)	—	—	—	5,571	—	—	5,571
Transaction costs, share issues		—	(169)	—	—	—	—	—	(169)	—	—	(169)
Continuity difference		—	—	—	(803)	—	—	—	(803)	—	—	(803)
Equity portion convertible bond		—	—	—	349	—	—	—	349	—	—	349
Share options		—	—	—	—	—	4	—	4	1	—	5
Treasury shares		—	—	—	(1)	—	—	—	(1)	—	(1)	(2)
Total contributions and distributions		610	13,755	—	(9,419)	—	4	—	4,950	1	(1)	4,950

Changes in ownership interests
Issuance of shares in subsidiaries				—	—	—	—	—	—	—	3,404	3,404
Transaction costs, issuance of shares in subsidiaries				—	—	—	—	—	—	—	(92)	(92)
Acquisition of subsidiary with NCI				—	—	—	—	—	—	16	2,580	2,596
Sale to non-controlling interests				—	2,929	—	—	—	2,929	—	(1,848)	1,081
Total change in ownership interests		—	—	—	2,928	—	—	—	2,928	16	4,044	6,988
Equity as of 31 December 2021		610	13,755	(2,082)	(6,644)	(73)	4	155	5,724	17	4,244	9,985

1) Amount does not include portion allocated to non-controlling interests.


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Amounts in NOK million	Note	Share capital	Other paid- in capital	Retained earnings	Other equity	Cash flow hedge reserve2	Share option reserve	Currency translation reserve	Equity attributable to parent company	Hybrid capital	Non- controlling interests	Total equity

Opening balance 1 January 2022		610	13,755	(2,082)	(6,644)	(73)	4	155	5,724	17	4,244	9,985

Profit (loss) for the period				(2,633)	—	—	—	—	(2,633)	—	(2,585)	(5,218)
Other comprehensive income				—	—	832	—	1,198	2,030	—	1,295	3,325
Total comprehensive income		—	—	(2,633)	—	832	—	1,198	(603)	—	(1,290)	(1,893)

Transaction with owners of the company
Share issues	19	81	1,242	(547)	—	—	—	—	776	—	(775)	1
Transaction costs, share issues		—	(17)	—	—	—	—	—	(16)	—	—	(16)
Share options		—	—	—	—	—	20		20	—	14	34
Total contributions and distributions		81	1,225	(547)	—	—	21	1	780	—	(761)	18

Changes in ownership interests
Issuance of shares in subsidiaries1	29			—	1,295	—	—	—	1,295	—	4,328	5,623
Acquistion of a minority without change in control	30			—	(100)	—	—	—	(100)	(17)	—	(117)
Total change in ownership interests		—	—	—	1,195	—	—	—	1,195	(17)	4,328	5,505
Equity as of 31 December 2022		690	14,980	(5,262)	(5,449)	759	25	1,353	7,096	—	6,519	13,615

1) Amount does not include portion allocated to non-controlling interests.

2) NOK 50 million of share issues in subsidiaries with minorities was implemented as a conversion of debt, and remaining as cash contribution.


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Notes to the Financial Statements

1 General information

Aker Horizons is a limited liability public company

incorporated and domiciled in Norway, whose shares are

traded on the Oslo Stock Exchange. Aker Horizons was

incorporated on 1 November 2020 and became the parent of

the consolidated group through an internal reorganization in

the Aker ASA group in January 2021. The registered office is

located at Oksenøyveien 8, Bærum, Norway.

Aker Horizons is indirectly majority-owned by Aker ASA, a

Norwegian industrial holding company listed on the Oslo

Stock Exchange, through its subsidiary Aker Capital AS. The

ultimate parent company is The Resource Group TRG AS.

Aker Horizons is an investment company dedicated to

developing companies that solve fundamental challenges to

sustainable existence - or planet-positive investing. Its

portfolio includes a carbon capture specialist delivering

proprietary CCS technology and plant, an independent

renewable energy player with a global portfolio of assets

across solar, onshore and offshore wind power. Aker Horizons

also develops green industrial hubs that combine low-cost

renewable energy with hydrogen production and downstream

applications.

At the beginning of the year, the portfolio comprised equity

stakes in Aker Carbon Capture, Aker Clean Hydrogen, Aker

Offshore Wind and Mainstream Renewable Power, as well as

investments in Rainpower, REC Silicon, SuperNode and

strategic sites for green industrial development in Narvik.

Aker Horizons’ portfolio underwent a series of transformative

transactions in 2022, see note 29 Changes in group structure

for more information:

•Aker Horizons merged with Aker Clean Hydrogen,

establishing an in-house hybrid asset origination

and development muscle, in the form of Aker

Horizons Asset Development.

•Investments in Narvik region

•Aker Offshore Wind and Mainstream Renewable

Power combined, and Mitsui invested EUR 575

million in Mainstream

•Shares in REC Silicon sold to Hanwha and shares

in Rainpower to Aker Solutions.

At the close of 2022, Aker Horizons portfolio was composed

of Aker Carbon Capture, Mainstream Renewable Power and

SuperNode and the business unit Aker Horizons Asset

Development.

The consolidated statements include all entities controlled by

Aker Horizons ASA, see information on the Group’s principal

subsidiaries in Note 31 Subsidiaries. The consolidated

financial statements of Aker Horizons ASA and its subsidiaries

are collectively referred as Aker Horizons or the Group, and

separately as group companies. Investments where the

Group has significant influence or joint control are accounted

for according to equity method, see Note 13 Investments in

associates and joint ventures.

These consolidated financial statements were issued by the

board and CEO of Aker Horizons on 17 March 2023, to be

approved by the Annual General Meeting on 21 April 2023.


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2 Basis of preparation

The basis for preparation and most important accounting

policies used in the preparation of the consolidated financial

statements are described below or in the respective notes.

The basis and policies are applied consistently in all of the

periods presented, unless the description states otherwise.

Statement of compliance

Aker Horizons’ consolidated financial statements have been

prepared in accordance with International Financial Reporting

Standards as adopted by the EU (IFRS) and disclosure

requirements pursuant to the Norwegian Accounting Act as of

31 December 2022.

Basis of measurement

The Group's financial statements have been prepared on the

basis of historical cost with the exception of derivative

financial instruments which are measured at fair value on

each reporting date.

The consolidated financial statements are presented in

Norwegian Kroner (NOK). Amounts are rounded to the

nearest million, unless otherwise stated. As a result of

rounding adjustments, amounts and percentages may not add

up to the total.

Foreign currency translation and

presentation currency

Transactions in foreign currencies are translated into the

respective functional currencies of group companies at the

exchange rates on the dates of the transactions.

Monetary assets and liabilities denominated in foreign

currencies are translated into the functional currency at the

exchange rate on the reporting date. Non-monetary items that

are measured on the basis of historical cost in a foreign

currency are translated at the exchange rate on the date of

the transaction.

The assets and liabilities of foreign operations, including

goodwill and fair value adjustments arising on acquisition, are

translated into the presentation currency of the Group at the

exchange rates on the reporting date. The income and

expenses of foreign operations are translated into the

presentation currency of the Group at the exchange rates on

the dates of transactions.

Foreign currency translation differences are recognized in

OCI and accumulated in the currency translation reserve in

equity, except to the extent that the translation difference is

allocated to NCI.

Going concern

The consolidated financial statements have been prepared on

the assumption that the Group is a going concern.

Changes to accounting policies and

disclosures

Revisions to standards and interpretations that did not come

into force for the Group for the year that ended 31 December

2022 are evaluated not to have any significant effect for the

Group.

Use of estimates and assumptions

The preparation of annual financial statements in conformity

with IFRS requires management to make judgments,

estimates and assumptions that affect the reported amounts

of assets and liabilities, income and expenses. Actual results

may differ from amounts arrived at based on these

assumptions. Estimates and underlying assumptions are

reviewed and assessed on an on-going basis, and are based

on historical experience, consultations with experts, trends

and other methods which management considers reasonable

under the circumstances.

Changes to accounting estimates are recognized in the period

in which the estimates are revised and in future periods if

affected. The Group’s operational companies operate in

different markets and are thus affected differently by the

uncertainties that characterize the different markets. Areas in

which, in applying the Group’s accounting principles, there

tends to be uncertainties as to material estimations and

critical assumptions and assessments, are described in the

following notes:

•Note 8 Tax

•Note 11 Intangible assets and goodwill

•Note 12 Impairment


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3 Operating segments

Operating segments

Operating segments are identified on the basis of the Group’s

internal management and reporting structure. The Group’s

chief operating decision maker, who is responsible for the

allocation of resources and assessment of performance in the

different operating segments, is defined as the CEO.

Recognition and measurement applied to segment reporting

is consistent with the accounting principles applied when

preparing the financial statements, except for Aker Horizons

and holdings, see more information below. Transactions

between segments are conducted in accordance with the

Group's transfer pricing policy. Operational revenues and

segment assets are based on the geographical location of

companies.

Aker Horizons’ portfolio underwent a series of transformative

transactions in 2022, see note 29 Changes in group structure

for more information. Reportable segments have been

restated.

Overview of reportable segments

Aker Carbon Capture (ACC)

Aker Carbon Capture is a global provider of products,

technology and solutions within the field of carbon capture,

utilization and storage (CCUS). It is one of the few companies

globally that are involved in the entire CCUS value chain.

Asset Development (AAD)

Aker Horizons Asset Development originates and develops a

portfolio of hydrogen-derivative projects spanning from

Norway to Chile, and includes the investments in the Narvik

region.

Mainstream Renewable Power (Mainstream)

The renewable energy generation segment consists of Aker

Horizons’ global portfolio of offshore- and onshore wind, and

solar power generation projects. Mainstream reflects the

combined Mainstream Renewable Power and Aker Offshore

Wind.

Aker Horizons and holdings

The combined financial statements of Aker Horizons ASA and

holding companies are prepared in order to present Aker

Horizons’ financial position as a parent holding company. The

traditional financial statement of the parent company has

been extended to include all subordinate administrative

service and holding companies that are wholly-owned by Aker

Horizons ASA and have balance sheets containing only

investments, bank deposits and debt. Investments are

reported at the lower of market value and cost price.

Other

“Other” consists of Aker Horizons’ 50 percent investments in

SuperNode, a company that designs superconducting

systems to integrate renewable energy and properly connect

markets.


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Amounts in NOK million	Note	Aker Carbon Capture	Asset Development	Mainstream	Aker Horizons and holdings	Total reportable segments	Other and eliminations	Total

2022
Income statement

External segment revenue & other income	4	773	9	1,856	8	2,647	1,642	4,289
Inter-segment revenue		8	—	4	164	176	(176)	—
Total segment revenue		781	9	1,860	172	2,823	1,466	4,289
Operating profit (loss) before depreciation, amortization and impairment (EBITDA)		(212)	(335)	(1,759)	(136)	(2,441)	1,646	(795)
Depreciations, amortizations and impairment	9, 10, 20	(11)	(4)	(4,879)	—	(4,894)	(6)	(4,900)
Operating profit (loss) (EBIT)		(223)	(338)	(6,638)	(136)	(7,335)	1,641	(5,694)
Share of profit (loss) equity accounted investees	13	—	(19)	(94)	—	(113)	(39)	(152)
Interest income		18	—	—	77	97	(2)	94
Interest expense		(1)	(2)	(2)	(423)	(428)	2	(425)
Other financial items		2	(4)	(476)	(2,878)	(3,356)	2,883	(473)
Profit (loss) before tax		(203)	(362)	(7,210)	(3,360)	(11,135)	4,484	(6,650)
Tax expense	8	—	—	1,402	—	1,402	—	1,402
Profit (loss) for the year to equity holders of the parent		(203)	(362)	(5,808)	(3,360)	(9,732)	4,484	(5,248)


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Amounts in NOK million	Note	Aker Carbon Capture	Asset Development	Mainstream	Aker Horizons and holdings	Total reportable segments	Other & eliminations	Total

2022
Balance sheet

Equity-accounted investments	13	—	74	999	118	1,191	(28)	1,163
Other non-current assets		128	487	21,964	14,818	37,397	(14,777)	22,620
Current operating assets		76	49	2,396	37	2,557	(28)	2,529
Cash and marketable securities	17	1,093	167	5,383	4,116	10,759	—	10,759
Assets held for sale	18	—	—	268	—	268	—	268
Segment assets		1,297	776	31,010	19,089	52,171	(14,833)	37,339

Borrowings	20	—	66	13,857	6,050	19,973	—	19,973
Non-current operating liabilities		3	77	1,501	—	1,581	—	1,581
Current operating liabilities		415	171	1,513	82	2,181	(11)	2,170
Segment liabilities		418	314	16,871	6,133	23,735	(11)	23,724

Equity		879	462	14,139	12,956	28,436	(14,822)	13,615
Non-controlling interest & hybrid capital		—	—	—	—	—	6,519	6,519
Total equity attributable to equity holders of the parent		879	462	14,139	12,956	28,436	(21,341)	7,096

Net current operating assets (liabilities)		(333)	(120)	917	(45)	419	—	419
Net cash (debt)		1,093	101	(8,473)	(1,934)	(9,214)	—	(9,214)
- of which restricted cash		5	3	2,076	5	2,089	—	2,089

Aker Horizons ASA and holding companies key figures:
Gross assets value (GAV)1		3,022	1,722	12,169	—	16,913	4,298	21,211

1) Gross asset value is the sum of all assets determined by applying the market value of listed shares, most recent transaction value for non-listed assets subject to material transaction with third parties, and book value of other assets.


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Amounts in NOK million	Note	Aker Carbon Capture	Asset Development	Mainstream 1,2	Aker Horizons and holdings	Total reportable segments	Other & eliminations1	Total

2021 (restated)
Income statement

External segment revenue	4	363	14	775	2	1,155	—	1,155
Inter-segment revenue		—	—		132	132	(132)	—
Total segment revenue		363	14	775	133	1,286	(132)	1,155
Operating profit (loss) before depreciation, amortization and impairment (EBITDA)		(190)	(159)	(586)	(192)	(1,127)	(120)	(1,247)
Depreciations and amortizations	9, 10, 20	(5)	(3)	(72)	—	(80)	(3)	(83)
Operating profit (loss) (EBIT)		(195)	(162)	(658)	(193)	(1,208)	(123)	(1,331)
Share of profit (loss) equity accounted investees	13	—	(9)	(132)	—	(142)	(73)	(215)
Interest income		3	—	8	14	25	—	25
Interest expense		—	—	(93)	(380)	(473)	—	(473)
Other financial items		—	(1)	(119)	686	566	(863)	(297)
Profit (loss) before tax		(192)	(172)	(995)	128	(1,231)	(1,059)	(2,291)
Tax expense	8	—	—	(35)	—	(35)	—	(35)
Profit (loss) for the year to equity holders of the parent		(192)	(172)	(1,029)	128	(1,266)	(1,059)	(2,325)

1) Mainstream includes NOK 92 million (stamp-duty) and “Other and eliminations" includes NOK 110 million in transaction costs related to the acquisition of Mainstream and NOK 8 million in transaction costs related to the acquisition of Rainpower.

2) Reflects income statement from date of acquisition, see Note 29 Changes in group structure.


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Amounts in NOK million	Note	Aker Carbon Capture	Asset Development	Mainstream	Aker Horizons and holdings	Total reportable segments	Other & eliminations	Rainpower	Total

2021
Balance sheet

Equity-accounted investments	13	—	80	803	1,577	2,460	(1,387)	—	1,072
Other non-current assets		33	164	19,557	18,597	38,352	(18,551)	261	20,063
Current operating assets		255	36	1,605	891	2,787	(186)	136	2,737
Cash and marketable securities	17	1,321	171	3,618	2,365	7,475	—	8	7,483
Assets held for sale	18	—	—	1,148	—	1,148	54	—	1,202
Segment assets		1,610	452	26,731	23,430	52,222	(20,070)	405	32,557

Borrowings	20	—	87	11,589	5,803	17,480	—	84	17,564
Non-current operating liabilities		9	5	1,872	—	1,886	16	69	1,971
Current operating liabilities		525	202	2,208	94	3,029	(179)	187	3,037
Segment liabilities		534	294	15,670	5,897	22,395	(163)	340	22,572

Equity		1,076	158	11,060	17,533	29,827	(19,907)	65	9,985
Non-controlling interest & hybrid capital		—	—	—	—	—	4,261	—	4,261
Total equity attributable to equity holders of the parent		1,076	158	11,060	17,533	29,827	(24,167)	65	5,725

Net current operating assets (liabilities)		(260)	(163)	(573)	95	(901)	—	(39)	(939)
Net cash (debt)		1,321	84	(7,972)	(2,736)	(9,303)	—	(76)	(9,379)
- of which restricted cash		—	—	2,071	—	2,071	—	—	2,071

Aker Horizons ASA and holding companies key figures:									—
Gross assets value (GAV)1		7,062	3,039	10,175	—	20,276	2,384	159	22,819


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Geographical information

Geographical revenue is presented on the basis of geographical location of the Group

companies selling to the customers. Non-current segment assets and capital expenditures are

based on the geographical location of the assets.


	Revenues		Non-current assets excluding deferred tax assets and financial instruments
Amounts in NOK million	2022	2021 Restated	2022	2021

Norway	810	387	635	1,057
US	3	6	—	11
Korea	—	1	—	—
Ireland	7	5	51	1,400
Chile	1,512	563	19,398	17,848
South Africa	27	16	12	503
UK	8	2	—	1
Vietnam	2	—	1	45
Other	—	2	—	1
Total	2,371	981	20,102	20,866

Major customers

The Group has contracts in place for carbon capture and storage services with two major

customers. The operating revenue in Aker Carbon Capture, in both 2022 and 2021, was mainly

related to these contracts.

In Chile, the Andes Renovables platform is split in three portfolios (Condor, Huemul and

Copihue). These have been awarded in total seven different 20-year Power Purchase

Agreements with distribution companies in Chile. In addition, the portfolios have entered into

bilateral agreements. Six of the Power Purchase Agreements commenced in 2021 and one in

2022. Revenues from two of the customers exceeded 10 percent of the Group’s revenue; NOK

501 million and NOK 389 million (2021: NOK 270 million and NOK 200 million).

See note 4 Revenue and other income for disaggregation of revenues from contracts with

customers.

4 Revenue and other income

The revenue in Aker Horizons ranges from complex construction contracts, man-hour based sale

of engineering or maintenance services, and the sale of electricity generated from power

generation assets in solar and wind parks.

Accounting principles

The main principle under IFRS 15 is to recognize revenue at an amount that reflects the

consideration to which an entity expects to be entitled in exchange for transferring goods or

services to a customer. To achieve this, IFRS 15 establishes a five-step model to account for

revenues arising from contracts with customers.

Construction and service contracts

Aker Carbon Capture deliver specialized products built to a customer's specification under

construction contracts. Only approved customer contracts with a firm commitment are used for

revenue recognition. Deliveries in the contracts are reviewed to identify distinct performance

obligations. This assessment may involve significant discretionary judgment. For the vast

majority of the identified performance obligations in construction contracts, control has been

assessed to be transferred to the customer over time as the performance obligation is satisfied.

Revenue is generally recognized over time using a cost based progress method which best

reflects the pattern of transfer of control of goods and services to the customer.

Variable considerations, such as incentive payments, are included in revenue when they are

highly probable. Expected liquidated damages (LD) are recognized as a reduction of revenue

unless it is highly probable LDs will not be incurred. The transaction price of performance

obligations is adjusted for significant financing components to reflect the time value of money.

Financing components may exist when the expected time period between the transfer of the

promised goods and services and the payment is more than twelve months. This assessment is

performed at the contract’s inception. Profit is not recognized until the outcome of the

performance obligations can be measured reliably. Contract costs are expensed as incurred. The

full loss is recognized immediately when loss-making contracts are identified. The loss is

determined based on revenue less direct cost (i.e. labor, subcontractor and material cost) and an

allocation of overhead that relates directly to the contract or activities required to fulfill the

contract. Revenues in Aker Horizons Asset Development relates to delivery of services related to

development projects. Revenue for such services are recognized over time using a cost

progress method or according to delivered time and materials.


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Power generation contracts

Mainstream owns and operates power generations assets, such as solar PV and wind farms.

Mainstream recognizes revenue from the generation and subsequent sale of electricity from

generation assets. Revenues from power generation bear the characteristic of delivering power

at a certain injection node and price. The performance obligation is to deliver a series of distinct

goods (power) and the transaction price is the consideration Mainstream expects to receive, at

either spot price, regulated price or contract price. The performance obligation is satisfied over

time, which means that revenue should be recognized for each unit delivered at the relevant

injection node. Mainstream applies a practical expedient under IFRS 15 whereby the revenue

from power contracts is recognized at the amount which the entity has a right to invoice. The

right to invoice power arises when power is produced and delivered and the right to invoice the

consideration will normally correspond directly with the value to the customer.

In arrangements where Mainstream sells power on an exchange (e.g. National Electricity

Coordinator in Chile), the exchange is determined to be the customer. This relates to the

enforceable contracts Mainstream has with the exchanges.

Judgments and estimates

In many contracts it can be challenging to estimate the expected revenue and cost in the Group’s

various customer contracts, in particular if there are operational challenges related to the

delivery. The most significant judgments and estimates in the customer contracts are described

below:

Performance obligations

Significant management judgment is sometimes required in order to identify distinct performance

obligations in construction contracts. This includes an analysis of the customer contract to

determine if the goods or services are distinct deliveries or input to an overall promise to deliver

a combined system of products and services. As most of the construction contracts represent a

single, combined output for the customers, the construction contracts will normally contain one

performance obligation.

Total contract cost

The forecasted total contract cost are estimates and sensitive to changes. The cost estimates

can significantly impact revenue recognition in construction contracts using cost progress,

particularly in lump sum construction contracts. The forecasting of total project cost depends on

the ability to properly execute the engineering and design phase, availability of skilled resources,

manufacturing capacity, productivity and quality factors, performance of subcontractors and

sometimes also weather conditions. Experience, systematic use of the project execution model

and focus on core competencies reduce, but do not eliminate, the risk that cost estimates may

change significantly.

Disaggregation of revenue from contracts with customers


Amounts in NOK million	ACC	AAD	Mainstream	Other and eliminations	Total

2022

Construction contracts	736	—	5	—	741
Services	45	7	17	(4)	66
Power generation	—	—	1,564	—	1,564
Total	781	7	1,587	(4)	2,371

2021

Construction contracts	338	—	—	—	338
Services	25	14	—	2	41
Power generation	—	—	602	—	602
Total	363	14	602	2	981

Timing of revenue

For Aker Carbon Capture, the performance obligations in customer contracts vary from a few

months to as long as five years. The order backlog as of 31 December 2022 was NOK 1.3 billion,

mainly consisting of the Brevik CCS EPC project, Twence Just Catch EPC project, and Net Zero

Teesside FEED. The revenue is expected to be recognized over the years 2023-2024.

Mainstream has entered into several Power Purchase Agreements for the Andes Renovables

platform, all starting in 2021 and 2022 and lasting for 20 years. These agreements are not

included in the Group’s order backlog as the performance obligations are decided by the right to

invoice at any time, which correspond to the power produced and delivered.

Contract balances

Customer contract assets relate to consideration for work completed, but not yet invoiced at the

reporting date. The contract assets are transferred to trade receivables when the right to

payment becomes unconditional, which usually occurs when invoices are issued to the

customers. Customer contract liabilities relate to advances from customers for work not yet

performed.

The change in contract assets and liabilities relates to natural progression of the project portfolio,

as well as the current project mix.


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Overview of contract assets and contract liabilities from contracts

with customers


Amounts in NOK million	Note	2022	2021

Trade receivables	15	517	534
Customer contract assets	15	13	85
Customer contract liabilities	23	91	405

Other income


Amounts in NOK million	Note	2022	2021

Reversal of contingent consideration	29	77	176
Gain on sale of associate (REC Silicon)	13	1,642	—
Gain on sale of joint venture (Aela)	13	142	—
Gain on acquisition of joint venture (Redwood)	29	54	—
Other		3	(2)
Total		1,918	174

5 Employee benefits

Accounting principles

Personnel expenses include wages, salaries, social security contributions, sick leave, parental

leave and other employee benefits. Wages, salaries, bonuses, pension and social security

contributions, paid annual leave and sick leave are expensed in the period in which the

associated services are rendered by employees of the Group’s subsidiaries.


Amounts in NOK million	Note	2022	2021 Restated

Salaries and wages, including holiday allowances		803	617
Share-based payments		34	5
Social security contribution		80	73
Pension cost		41	52
Other employee benefits		85	5
Total salaries, wages and social security costs		1,043	752
Of which capitalized	14	43	46
Net		1,000	706

Shared based payments

Mainstream operates a share option program which allows employees in Mainstream to acquire

shares in the parent company Aker Mainstream Renewables AS. The fair value of options

granted is recognized as a charge to the income statement with a corresponding increase in

equity. The fair value is measured at grant date and spread over the term during which the

employees became unconditionally entitled to the options. The fair value of the options granted is

measured using a binomial lattice model, taking into account the terms upon which the options

were granted as well as market-based conditions. The fair value determined at the grant date of

the equity-settled share based payments is expensed over the vesting period, based on the

Group’s estimate of shares that will eventually vest.

Pension plans

A defined contribution plan is a type of retirement plan where the employer makes contributions

on a regular basis to the employees individual pension account. The benefits received by the

employee are based on the employer contributions and gains or losses from investing the

capital. Contributions to defined contribution pension plans are recognized as an expense in the

income statement as incurred.

The Group's pension plans

Defined contribution plans

All employees are offered participation in a defined contribution plan. The annual contributions

expensed for the Norwegian plans in 2022 totaled NOK 29 million (2021: NOK 17 million).

Compensation plan

Employees in Norwegian entities who were employed by Aker Solutions in 2008, when the

company changed to defined contribution plans, are part of a compensation plan. The

compensation amount is adjusted annually in accordance with the adjustment of the employees'

pensionable income, and accrued interest at the market rate. The compensation plan is an

unfunded plan and is calculated using an earned balance method. Total liability as of 31

December 2022 amounts to NOK 9 million (2021: NOK 8 million).


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6 Other operating expenses


Amounts in NOK million	Note	2022	2021 Restated

Write downs of inventory and other		140	—
External services and hired-ins		678	499
External funding	11	—	(43)
IT and office supplies		170	63
Other operating expenses		198	136
Stamp duty	28	—	92
Total		1,186	747

Audit fees

The Group has changed auditor to PricewaterhouseCoopers (PWC) applicable for financial year

2022 onwards. In 2021, EY was the elected auditor for Mainstream and KPMG was the elected

auditor for the remaining companies in the Group. The table below summarizes audit fees split

per audit company, as well as fees for audit-related services, tax services and other services

incurred by the Group. The amounts are net of VAT.


Amounts in NOK thousand	2022	2021	2022	2021	2022	2021

	Aker Horizons ASA		Subsidiaries		Total
Audit	315	—	8,316	—	8,631	—
Other assurance services	71	—	383	—	454	—
Other non-audit services	—	—	—	—	—	—
Total PWC - auditor from 2022	386	—	8,699	—	9,085	—

Audit	1,128	1,840	1,841	7,921	2,969	9,761
Other assurance services	656	3,056	331	1,977	987	5,033
Tax services	—	—	—	5,104	—	5,104
Other non-audit services	—	—	32	3,856	32	3,856
Total KPMG/EY - auditor in 2021	1,784	4,896	2,204	18,858	3,988	23,754

Total	2,170	4,896	10,903	18,858	13,073	23,754

7 Financial income and expenses

Accounting principles

Interest income and expenses include effects from using the effective interest rate method,

where fees, interest paid, transaction costs and other premiums are deferred and amortized over

the life of the instrument. Interest expenses from lease liabilities are also included.

Foreign exchange gains and losses arise upon settlement of monetary assets and liabilities that

are not hedged. Translation of monetary assets and liabilities denominated in foreign currencies

related to operating activities, such as trade receivables and payables, are presented as

operating gains and losses. Translation of assets and liabilities related to general financing of the

entity are included as financial result. Foreign exchange gains and losses also includes the effect

of translating monetary assets and liabilities denominated in foreign currencies at the balance

sheet date. The profit or loss on foreign exchange forward contracts includes effects from

derivatives that do not qualify for hedge accounting, embedded derivatives and the ineffective

portion of qualifying hedges.


Amount in NOK million	Note	2022	2021 Restated

Interest income on cash and cash equivalents and investments at amortized cost		126	15
Foreign exchange gain		68	—
Other financial income		3	—
Total financial income		197	15

Interest expense on financial liabilities measured at amortized cost		(806)	(474)
Foreign exchange loss		—	(235)
Lease interest expense	21	(26)	(16)
Other financial expenses1		(169)	(36)
Total financial expenses		(1,001)	(761)
Net financial expenses		(804)	(746)

1) Includes NOK 97 million in financial guarantee cost in Mainstream


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8 Tax

Accounting principle

Income tax expense comprises current tax and change in net deferred tax. Income tax is

recognized as expense or income in the income statement, except where they relate to items

recognized in other comprehensive income or posted directly to equity, in which case the tax is

also recognized as other comprehensive income or posted directly to equity.

Current income tax is the expected tax payable on the taxable income for the year and any

adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities are

recognized for the future tax consequences attributable to differences between the carrying

amounts of existing assets and liabilities in the financial statements and their respective tax

bases. The amount of net deferred tax provided is based on the expected manner of realization

or settlement of the carrying amount of assets and liabilities, using tax rates enacted or

substantially enacted on the date of the consolidated statement of financial position. Deferred tax

assets and liabilities are offset if a legally enforceable right exists to set off current tax assets

against current income tax liabilities and the deferred taxes relate to the same taxable entity and

the same taxation authority.

Judgments and estimates

Management judgment is required when assessing valuation of unused losses, tax credits and

other deferred tax assets. The recoverability is assessed by estimating taxable profits in future

years taking into consideration also expected changes in temporary differences. Profits are

compared to the book value of the tax assets. The estimate of future taxable profits is sensitive

to future market development for the Group’s projects. Forecasts are based on firm orders in the

backlog and identified prospects. Changes in assumptions related to the expected prospects and

services can have a significant impact on the forecast cash flows. Economic conditions may

change and lead to a different conclusion regarding recoverability, and such changes may effect

future reporting periods.

Tax expense in income statement


Amounts in NOK million	2022	2021 Restated

Current income tax	—	—
Origination and reversal of temporary differences	1,402	(35)
Income tax benefit (expense)	1,402	(35)

Effective tax rate

The table below reconciles the reported income tax expense to the expected income tax

expense according to the Norwegian corporate income tax rate of 22 percent. It also discloses

the main elements of the tax expense.


Amounts in NOK million	2022		2021

Profit before tax	(6,650)		(2,291)
Income tax benefit (expense) at Company's domestic tax rate	1,463	22.0%	504	22.0%
Effect of tax rates in foreign jurisdictions	296	4.5%	(92)	(4.0)%
Changes in tax rate	—	—%	(15)	(0.6)%

Tax effect of:
Share of profit in equity-accounted investees	(24)	(0.4)%	(47)	(2.1)%
Non-deductible expenses	(396)	(6.0)%	35	1.5%
Tax-exempted income	391	5.9%	14	0.6%
Tax effect on items booked in equity	—	—%	43	1.9%
Tax losses for which no deferred income tax asset was recognized	(343)	(5.2)%	(486)	(21.2)%
Other	15	0.2%	11	0.5%
Income tax and effective tax rate	1,402	21.1%	(35)	(1.5)%


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Change in net recognized deferred tax assets and liabilities


Amounts in NOK million	Property, plant and equipment	Intangible assets	Projects under construction	Tax loss carry- forwards	Provisions	Derivative financial instruments	Other	Net

2021
Balance as of 1 January	(1)	(6)	—	5	—	—	2	—
Acquisition of subsidiary	1	(1,102)	(21)	25	62	—	(46)	(1,081)
Reclassification	—	—	—	274	—	—	(274)	—
Recognized in profit and loss	1	(8)	4	13	(46)	—	1	(34)
Currency translation differences	—	4	—	—	—	—	—	3
Balance as of 31 December	2	(1,112)	(16)	316	16	—	(317)	(1,111)

Deferred tax asset								1
Deferred tax liability								1112


Amounts in NOK million	Property, plant and equipment	Intangible assets	Projects under construction	Tax loss carry- forwards	Provisions	Derivative financial instruments	Other	Net

2022
Balance as of 1 January	2	(1,112)	(16)	316	16	—	(317)	(1,111)
Disposal of subsidiary	(3)	43	13	(37)	(7)	—	1	10
Recognized in profit and loss	(432)	789	(45)	264	(3)	517	312	1,402
Recognized in OCI	—	—	—	—	—	(517)	—	(517)
Currency translation differences	—	(206)	—	—	1	—	(1)	(207)
Balance as of 31 December	(433)	(486)	(49)	543	7	—	(5)	(422)

Deferred tax asset								132
Deferred tax liability								554


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Tax loss carry-forwards and unrecognized deferred tax assets

(gross)

As of 31 December 2022, the Group had NOK 8,327 million in tax loss carry-forwards. Deferred

tax assets from these tax losses were unrecognized by NOK 1,543 million. In addition, the Group

had NOK 378 million in other unrecognized deferred tax assets. See below for information of tax

loss carry-forwards by jurisdictions and expiry dates.


Amounts in NOK million	2022

Norway	3,256	No expiry date
Denmark	15	No expiry date
Ireland	1,348	No expiry date
Chile	2,465	No expiry date
UK	284	Expiring 2027 or after
Luxembourg	11	No expiry date
South Africa	393	No expiry date
USA	197	Expiring 2027 or after
Germany	106	No expiry date
Canada	101	Expiring 2027 or after
Other	151
Total	8,327

9 Earnings per share

Accounting principle

The calculation of ordinary earnings per share is based on the profit attributable to ordinary

shares using the weighted average number of shares outstanding during the reporting period.

The calculation of diluted earnings per share is consistent with the calculation of ordinary

earnings per share, and gives effect to all ordinary shares with dilutive potential that were

outstanding during the period. Diluted earnings per share will only be disclosed when the dilutive

effect decreases the earnings, or increases the loss, per share.

Dilutive instruments as of 31 December 2022 include convertible bonds, see Note 20 Borrowings

for more information.


Amounts in NOK	2022	2021

Basic and diluted earnings per share
From continuing operations	(4.08)	(3.35)
From discontinued operations	0.05	(0.19)
Total basic earnings per share	(4.03)	(3.54)

Calculation of weighted average number of shares
Issued shares as of 1 January	609,736,165	3,000
Effect of shares issued	43,508,711	551,495,503
Weighted average number of shares outstanding for the purpose of basic and diluted earnings per share	653,244,876	551,498,503

Reconciliation of earnings used in calculating EPS (basic and diluted)

Amounts in NOK million	2022	2021

Profit/(loss) from continuing operations as presented in the income statement	(5,248)	(2,325)
Less: profit/(loss) attributable to non-controlling interests	2,585	477
Profit (loss) from continuing operations	(2,663)	(1,848)
Profit (loss) from discounted operations	30	(103)
Profit (loss) used in calculating basic earnings per share	(2,633)	(1,951)

Convertible bond

Convertible bond, issued in 2021, are considered to be potential ordinary shares and have been

included in the determination of diluted earnings per share from their date of issue. Due to loss in

both periods presented, basic and diluted earnings per share are identical. See note 20

Borrowings for more information about the convertible bond.


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10 Property, plant and equipment

The majority of Aker Horizons’ property, plant and equipment relates to power generation assets,

and power generation assets under construction in Mainstream's portfolios Condor, Huemul and

Copihue (collectively “the Andes Renovables platform”) in Chile. In 2022, a total of four projects

in the Andes platform reached commercial operation date (COD). Assets under construction

consist of four projects, whereof two projects are expected to reach COD in 2023 and the final

two projects in 2024.

There are security rights of the lenders over the assets in the Andes platform, see note 20

Borrowings.

Accounting principles

Property, plant and equipment is stated at cost, less accumulated depreciation and accumulated

impairment losses. The initial cost of an asset comprises its purchase price or construction cost,

any costs directly attributable to bringing the asset into operation, the initial estimate of a

decommissioning obligation, if any, and, for qualifying assets, borrowing costs incurred in the

construction period. Capitalization of borrowing costs commences when the activities to prepare

the asset for its intended use are undertaken and continue to be capitalized until the date in

which development of the relevant asset is complete. All other borrowing costs are recognized in

profit or loss in the period in which they incur. Assets are normally depreciated on a straight-line

basis over their expected economic lives as follows:

•Power generation assets: 25-30 years

•Machinery and equipment: 2-10 years

Depreciation of a power generation plant commences when the plant reaches its Commercial

Operation Date, normally the date of grid connection and commissioning. The residual value of

the plant is taken into consideration when calculating the annual depreciation.

An item of property, plant and equipment is derecognized upon disposal or when no future

economic benefits are expected to arise from the continued use of the asset. Any gain or loss

arising on derecognition of the asset (calculated as the difference between the net disposal

proceeds and the carrying amount of the item) is included in profit or loss in the period the item is

derecognized.

Impairment triggers are assessed quarterly and impairment testing is performed when triggers

have been identified.

Asset retirement obligations

An asset retirement obligation exists where the Group has a legal or constructive obligation to

remove an asset and/or restore the site where the asset is located. Where the Group is required

to settle an asset retirement obligation, the Group has estimated and capitalized the net present

value of the obligations and increased the carrying value of the related asset. The cash flows are

discounted at a pre-tax risk-free rate as risks are reflected in the cash flows. After initial

recognition, an interest expense is recognized as a finance cost relating to the asset retirement

obligation, and the capitalized cost is expensed as ordinary depreciation with the related asset.

The effects on the net present value of any subsequent changes to the gross removal costs or

discount rates adjust the carrying value of assets and liabilities and are expensed over the

remaining estimated useful life of the related assets. Refer to note 22 Provisions and non-current

liabilities for more information.

Judgments and estimates

Estimated useful life - power generation assets

The estimated useful lives of property, plant and equipment are reviewed on an annual basis and

changes in useful lives are accounted for prospectively. When determining the useful life of a

plant, the following factors are considered:

•Expected usage of the plant, which is assessed by reference to the asset’s expected

capacity and physical output, as well as market regulations and maturity

•Expected physical wear and tear, which depends on operational factors and the repair and

maintenance program

•Technical or commercial obsolescence

•Legal or similar limits on the use of the plants, such as the expiry dates of related leases

Impairment

Impairment is assessed for individual assets and for cash generating units. Impairment testing

involves assumptions about future market development, cash flows, determination of weighted

average cost of capital (WACC), growth rate and other assumptions that may change over time.

Asset retirement obligation

Aker Horizons' future asset retirement obligation depends on several uncertain factors such as

the possible existence of a power market for the plants after the end of the PPA, future recycling

arrangements for assets used in power generation, and/or their second-hand value, future value

of steel and copper as well as future development of interest and currency exchange rates. As a

result, the initial recognition of the liability and the capitalized cost associated with the removal

obligations, and the subsequent adjustments, involve the application of significant judgment. The

asset retirement obligation is calculated on a plant by plant basis, taking into consideration

relevant project specifics.


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Reconciliation of carrying amounts


Amounts in NOK million	Note	Generation assets	Land	Machinery	Under construction	Total

2021
Balance as of 1 January		—	—	3	—	3
Acquisition of subsidiaries	29	—	142	27	8,030	8,200
Additions1		—	—	16	3,574	3,590
Reclassifications to assets held for sale and other disposals	18	—	—	(8)	(163)	(171)
Depreciations		(7)	—	(5)	—	(12)
Reclassifications		2,688	—	—	(2,688)	—
Currency translation differences and other changes		(6)	—	(2)	721	714
Balance as of 31 December		2,675	142	32	9,475	12,324

As of 31 December 2021
Cost		2,682	142	124	9,476	12,423
Accumulated depreciation		(7)	—	(92)	—	(99)
Carrying value		2,675	142	32	9,475	12,324

2022
Balance as of 1 January		2,675	142	32	9,475	12,324
Additions1,2		—	169	20	2,207	2,396
Disposals	30	—	—	(4)	—	(4)
Depreciations		(288)	—	(8)	—	(296)
Reclassifications		6,085	—	(6)	(6,079)	—
Currency translation differences and other changes		482	—	2	1,006	1,491
Balance as of 31 December		8,955	311	35	6,610	15,911

As of 31 December 2022
Cost		9,258	311	86	6,610	16,265
Accumulated depreciation		(303)	—	(50)	—	(353)
Carrying value		8,955	311	35	6,610	15,912

1) Difference between additions and payments for capital expenditures in cash flow statement is explained by adjustments for

accruals.

2) Refer to note 29 Changes in group structure for more information on acquisition of land.

During 2022 the Group capitalized borrowing costs amounting to NOK 552 million (2021: NOK

302 million).

11 Intangible assets and goodwill

Intangible assets consist of goodwill and contractual assets acquired through business

combinations, and other intangible assets such as IT systems and technology development.

Accounting principles

Intangible assets

Intangible assets are carried at cost less accumulated amortization and accumulated impairment

losses. Research and development costs are expensed as incurred until a project reaches the

development phase. Development cost is only capitalized if the product or process is technically

and commercially feasible and the business case shows a positive net present value. Capitalized

development mainly includes internal labor costs in addition to materials for the development

program. Capitalized development is normally amortized over five years on a straight-line basis.

Contractual assets

Contractual assets relates to the Andes Renovables platform in Chile, which consist of three

project portfolios (Condor, Huemul and Copihue), all of which had reached the final investment

date (FID) at the time of Aker Horizons acquisition of Mainstream. The contractual assets were

identified as the portfolios of contracts necessary to operate the projects in the Andes

Renovables platform.

The contractual assets are amortized over 30 years, representing estimated useful life of the

plants.

Goodwill

All business combinations in the Group are recognized using the acquisition method. Goodwill

represents the consideration paid in excess of identified assets and liabilities in the business

combination. A substantial part of the goodwill identified in the acquisition of Mainstream in 2021

was related to the requirement to recognize deferred tax for the difference between assigned fair

values and the related tax base. Although not an IFRS term, Aker Horizons have used the term

“technical goodwill” to describe goodwill that arises as an offsetting account to the deferred tax

liabilities recognized in business combinations. Technical goodwill resulting from the acquisition of

Mainstream was allocated separately to the three project portfolios in the Andes Renovables

platform. The residual goodwill was allocated to the portfolio of development projects in Mainstream.

When performing the impairment test for technical goodwill, deferred tax liabilities recognized in

relation to the acquired licenses reduce the net carrying value prior to any impairment charges.

This methodology avoids an immediate impairment of all technical goodwill. When deferred tax

liabilities from the initial recognition decreases, additional technical goodwill is ‘exposed’ to

impairment. Subsequent to the initial purchase price allocation, depreciation of book values will

result in decreasing deferred tax liabilities.

Goodwill is not amortized on a regular basis, but is instead tested for impairment annually, or

more frequently if indicators that the value might be impaired exists. Refer to note 12 Impairment

for more information.


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Judgments and estimates

The decision to capitalize a development program involves management judgment. Management

makes assessments of future market opportunities, ability to successfully achieve the desired

technological solution and the time and cost it takes to develop it. These factors may change

over time.

Reconciliation of carrying amounts


Amounts in NOK million	Note	Capitalized development	Contractual assets	Other	Goodwill	Total

2021
Balance as of 1 January		4	—	—	—	4
Acquisition of subsidiaries	29	79	4,147	17	2,598	6,841
Additions		13	—	—	—	13
Depreciations		(7)	(53)	—	—	(61)
Currency translation differences and other changes		—	(18)	—	(11)	(28)
Balance as of 31 December		89	4,076	16	2,587	6,769

As of 31 December 2021
Cost		96	4,129	17	2,587	6,830
Accumulated depreciation		(7)	(53)	—	—	(61)
Carrying value		89	4,076	16	2,587	6,769

2022
Balance as of 1 January		89	4,076	16	2,587	6,769
Additions		65	—	155	114	334
Disposals	30	(74)	—	(1)	(114)	(189)
Depreciations		(3)	(157)	—	—	(160)
Impairments	12	—	(2,939)	—	(1,467)	(4,405)
Currency translation differences and other changes		—	811	1	296	1,108
Balance as of 31 December		77	1,791	171	1,417	3,456

As of 31 December 2022
Cost		79	4,895	170	2,884	8,028
Accumulated depreciation		(1)	(3,104)	1	(1,467)	(4,571)
Carrying value		77	1,791	171	1,417	3,456

Research and development expenses

NOK 64 million relating to development activities was capitalized in 2022 (2021: NOK 13 million).

In addition, research and development costs were expensed during the year because the criteria

for capitalization were not met. Further, the Group has received external funding of research and

development costs that has been recognized as a reduction of costs in the income statement.


Amounts in NOK million	2022	2021

Capitalized research and development costs	64	13
Expensed research and development costs	132	74
External funding of research and development costs	(8)	(25)


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12 Impairment

The year was characterized by a volatile and uncertain macro environment, with rising market

rates, as well as delays and rising prices as consequence of global supply chain issues. In

addition, challenging market conditions in the local Chilean power market impacted the Group

negatively, with grid capacity limitations leading to increased costs. Mainstream’s diversified

portfolio, with both wind and solar power production in the north and south of the country,

together with the finalizing of new projects, helped to mitigate the impact.

As a consequence of the difficulties experienced in the local Chilean power market, as well as

rising interest rates, the impairment testing of assets resulted in impairment losses of NOK 4,239

million (NOK 3,450 million net of tax) applied to goodwill and intangible assets allocated to Andes

Renovables in connection with the acquisition of Mainstream in 2021. An additional impairment

of NOK 167 million was recognized on goodwill allocated to other acquisitions.

Accounting principles

Individual assets

Each stand-alone item of property, plant, equipment and right-of-use asset is assessed for

impairment triggers every reporting period to identify assets that are damaged, no longer in use

or will be disposed of. Capitalized development is assessed for impairment triggers every

reporting period to identify development programs where the technological development or

commercial outlook for that specific technology no longer justifies the book value. Capitalized

development programs that have not been completed are subject to annual impairment testing.

Assets are written down to their recoverable amount, if this is lower than book value.

Cash Generating Units (CGU)

Impairment indicators are assessed for each cash generating unit (CGU) every reporting period.

A CGU represents the lowest level of independent revenue generated by the assets. This is

usually the lowest level where a separate external market exists for the output from the CGU.

Impairment indicators are reviewed for all assets through an assessment of market conditions,

technological development, changes in discount rates and other elements that may impact the

value of the assets in the CGU. Impairment losses are recognized for assets in CGUs where the

recoverable amount is lower than book value.

The recoverable amount is the higher of the asset’s fair value less cost of disposal and value in

use. When estimating value in use and fair value less cost of disposal, expected future cash

flows are discounted to the net present value by applying a discount rate after tax that reflects

the current market valuation of the time value of money and the specific risk related to the asset.

The discount rate is derived from the Weighted Average Cost of Capital (WACC). Various

sensitivity analyses for changes in future cash flows, growth rates and WACC are performed for

CGUs with limited headroom in the impairment testing.

Goodwill

Goodwill is tested for impairment annually, or more frequently if events or changes in

circumstances indicate that the value may be impaired. Impairment is recognized if the

recoverable amount of the CGU (or group of CGUs) to which the goodwill relates is less than the

book value, including associated goodwill and deferred tax as described in note 11. Losses

relating to impairment of goodwill cannot be reversed in future periods.

Judgments and estimates

The impairment testing of assets is by its very nature highly judgmental as it includes estimates

such as future market development, cash flows, determination of CGUs and WACC, and other

assumptions that may change over time. In particular, future cash flows are uncertain, as they

are impacted by developments beyond Aker Horizons’ control. Weather conditions and

regulatory developments are two examples that may impact both power generation and power

prices. Below is an overview of the key assumptions and judgments applied for impairment

testing as of 31 December 2022.

Power prices

The cash flows for the electricity sold through the projects in the Andes Renovables platform are

based on long-term power purchase agreements (PPA) ending in 2041/2042. Power generation

in excess of committed PPA volume, and after expiration of the PPAs, are based on spot sales

throughout the useful life of the assets. No terminal value is assumed for the power plants.

The power prices assumed in the calculation of recoverable amount are based on available

market data from external third-party market analytics and Aker Horizons’ long-term market

outlook.

Effects of limitations on grid capacity

The Chilean electricity grids’s current transmission capacity is limited, resulting in periods where

it may not be possible to realize the full market value of the production capacity. Due to these

grid limitations, the CGUs in Andes Renovables may incur additional costs when delivering the

agreed volumes to their customers under the PPAs.

The potential cost increase is impacted by fossil fuel prices, build-out of renewables,

transmission line capacity, system costs and demand growth. Cash flow assumptions in the

calculations are based on available market data from external third-party market analytics and

Aker Horizons’ long-term market outlook.

Production volume

The production volume used in the discounted cash flow analyses is the long-term expected

production volume for any given site, taking into account all expected technical and

meteorological scenarios. The production volume estimate is a combination of information from

suppliers, third-party consultants and Aker Horizons’ internal estimates


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Discount rate

The recoverable amount in the impairment test has been calculated by applying a discount rate

of approximately 6 percent. The discount rate is derived from the company's weighted average

cost of capital (WACC). The capital-structure considered in the WACC calculation is derived from

the capital structures of an identified peer group and market participants with consideration given

to optimal structures. The cost of equity is derived from the expected return on investment to the

company's investors. The cost of debt is based on the risk-free rate and an observed credit-

spread on comparable transactions.

Impairment testing of goodwill

For the purposes of impairment testing, goodwill has been allocated to the following CGUs:


Amounts in NOK million	Note	2022	2021

Mainstream		1,417	1,389
Condor (Mainstream)		504	419
Huemul (Mainstream)		496	413
Copihue (Mainstream)		301	250
Other		167	114
Total	11	2,884	2,587

Impairment testing of assets in CGUs

Parts of the goodwill recognized in previous business combinations is allocated to the three

CGUs in the Andes Renovables platform. These CGUs consist of PPE (onshore wind and solar

parks), contractual assets and working capital items. The recoverable amount has been

determined based on fair value less cost of disposal. The carrying value of the three CGUs is

calculated as the sum of allocated goodwill, contractual assets, PPE and working capital items,

reduced by deferred tax on the items included in the CGU. The table below summarizes the

impairments recognized and the recoverable amount per CGU:


	Andes Renovables
Amounts in NOK million	Condor	Huemul	Copihue	Other	Total

Net carrying value	8,469	9,095	2,098	167	19,829
Recoverable amount	7,581	7,281	1,349	—	16,212
Impairment	(887)	(1,814)	(749)	(167)	(3,617)

Allocated as follows:
Goodwill	—	—	—	(167)	(167)
Technical goodwill	(504)	(496)	(301)	—	(1,300)
Contractual assets	(524)	(1,801)	(613)	—	(2,939)
Total impairment	(1,028)	(2,297)	(914)	(167)	(4,405)
Deferred tax on impairment	141	483	164	—	788
Net	(887)	(1,814)	(749)	(167)	(3,617)

Andes Renovables

The contractual assets are related to the power purchase agreements entered into with Chilean

distribution companies, recognized in the purchase price allocation when Mainstream was

acquired in 2021. The expected limitations to the grid and transmission line capacity affect the

recoverable amount of the assets negatively, therefore, the impairment exceeding the recognized

goodwill in the CGUs is allocated to the contractual assets in full, as the generation assets are

considered to have a fair value less cost of disposal that at least equals their carrying value.

Sensitivity analysis

The recoverable amount used in the impairment test is affected by several factors, including

power prices, production volume and discount rates. When determining the recoverable amount

of the CGUs tested for impairment, a wide range of sensitivity tests have been run on the key

assumptions in the fair value calculation, to ensure that the test is addressing the uncertainty in

the Chilean power market. This includes adjusting the discount rate and the power prices.

The table below illustrates how the impairment would be affected by changes in various

assumptions, given that the remaining assumptions are kept constant. The table illustrates the

effect on a total level, including all three CGUs (Condor, Huemul and Copihue).


		Change in impairment after
Amounts in NOK million	Change	Increase in assumption	Decrease in assumption

Assumption
Discount rate	+/- 0.5%	(1,210)	1,326
Withdrawal cost	+/- 5.0%	(847)	840


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Discount rate

For the sake of sensitivity testing, we have adjusted the discount rate in all three fair value

calculations up and down by 0.5 percentage points. Although illustrative impairment in the table

above assumes no changes to other input factors, an increase in the discount rate as illustrated

above, as an effect of continued high inflation, would lead to an increase in the CPI adjustments

of the PPAs, which would reduce the actual impairment amount, compared to what is presented

in the table above.

Withdrawal cost

The cost incurred when delivering power (withdrawal cost) under the PPAs is adjusted up or

down by 5 percent. No other prices have been adjusted for this sensitivity scenario. The effect of

changing the withdrawal cost is only applicable to the period in which the PPAs are in operation.

Other

In addition to the impairments recognized on the CGUs in the Andes Renovables platform, we

have recognized a total impairment of NOK 167 million relating to goodwill recognized in the

acquisition of Dak Nong in 2021 and Redwood in 2022.

Impairment testing of residual goodwill

Residual goodwill identified in the Mainstream acquisition in 2021 amounts to NOK 1.4 billion.

The goodwill relates to Mainstream’s development pipeline, combined with its global

organization, and is allocated to the Mainstream segment for impairment testing.

Residual goodwill has been tested for impairment. Recoverable amount in the goodwill

impairment test is calculated using an average amount of three different fair value calculations,

all three using the income approach pursuant to IFRS 13.

The three calculations are based on an internal valuation model, where cash flows from

developing new projects over the next 10 years have been estimated. In one of the calculations,

the cash flows from projects have been discounted throughout the 10 years. In the two other

calculations, only the first five years of project cash flows have been included. After the first five

years, one of the calculations estimates the value based on a multiple per MW brought to

financial close, whereas the last calculation is based on estimated value creation per MW

brought to financial close. The terminal value in all three calculations is based on estimated value

created by a fixed number of projects brought to financial close every year in an additional 11

years.

The recoverable amount exceeds the carrying amount by a comfortable margin.

13 Investments in associates and joint ventures

Accounting principle

A joint venture (JV) is a type of joint arrangement whereby the parties that have joint control of

the arrangement have rights to the net assets of the joint venture. Joint control is the

contractually agreed sharing of control of an arrangement, which exists only when decisions

about the relevant activities require the unanimous consent of the parties sharing control.

An associate is an entity over which the Group has significant influence. Significant influence is

the power to participate in the financial and operating policy decisions of the investee but is not

control or joint control over those policies. Significant influence normally occurs when the

company holds a 20-50 percent ownership interest. If ownership is below 20 percent, Aker

Horizons will account for the investment according to the equity method if significant influence

can be clearly demonstrated.

The considerations made in determining significant influence or joint control are similar to those

necessary to determine control over subsidiaries.

See Note 34 Related party transactions for more information about transactions and balances

between Aker Horizons and equity-accounted investees.

Equity method

The Group’s investments in its associates and joint ventures are accounted for using the equity

method. Under the equity method, the investment in an associate or a joint venture is initially

recognized at cost, including transaction cost. The carrying value is subsequently adjusted for

further investments and the Group’s share of the net income of the associate or joint venture.

The carrying amount of the investment is adjusted to recognize changes in the Group’s share of

net assets of the associate or joint venture since the acquisition date. Goodwill relating to the

associate or joint venture is included in the carrying amount of the investment and is not tested

for impairment separately.

When the Group’s share of a loss exceeds the Group’s investment in an associate or joint

venture, the amount carried in the Group’s statement of financial position is reduced to zero and

further losses are not recognized, unless the Group has an obligation to cover such losses.

Changes in OCI in equity accounted investees are presented as part of the Group's OCI.

Changes recognized directly in equity of the joint venture or the associate are recognized

proportionately in the statement of changes in equity for the Group. Unrealized gains and losses

resulting from transactions between the Group and the associate or joint venture are eliminated

to the extent of the interest in the associate or joint venture. At each reporting date, the Group

determines whether there is objective evidence that the value of the investment in the associate

or joint venture may be impaired. If there is such evidence, the Group calculates the amount of

impairment as the difference between the recoverable amount of the associate or joint venture

and its carrying value, and then recognizes the loss as “Net income/(loss) from JV and


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associates” in the statement of profit or loss. The requirements to test for impairment are applied

to the carrying value of the net investment in the associate or joint venture. The carrying value of

the net investment includes share capital and loans.

Equity-accounted investments

The tables below show JVs and associates recognized in the Group’s consolidated financial

statements, the carrying amount of the investments as well as the share of profit or loss, and the

stand-alone financial information for material equity-accounted investments.


		2022			2021
Amounts in NOK million	Office	Ownership	Book value	Share of net profit (loss)	Ownership	Book value	Share of net profit (loss)

MRP Africa Holdings Limited (MRP)	Dublin, Ireland	33.8%	592	(28)	33.8%	496	(20)
Korea Floating Wind Power Co., Ltd (MRP))	Ulsan, South-Korea	33.3%	102	(4)	33.3%	15	(23)
Principle Power Inc (MRP)	California, US	36.2%	292	(24)	36.2%	281	(33)
Greenstat ASA (AAD)	Bergen, Norway	19.4%	69	(12)	20.8%	79	—
Meråker Hydrogen AS (AAD)	Meråker, Norway	20.0%	1	(1)	20.0%	1	—
REC Silicon ASA (AH)	Bærum, Norway	—	—	(14)	24.7%	149	(66)
Total associates			1,056	(83)		1,021	(142)

SuperNode Ltd (AH)	Dublin, Ireland	50.0%	91	(25)	50.0%	41	(7)
Redwood Coast Offshore Wind LLC (MRP)	California, US	50.0%	—	(7)	50.0%	11	(5)
Freja Offshore AB (MRP)	Stockholm, Sweden	50.0%	6	(25)	50.0%	—	(6)
Green Ammonia Berlevåg AS (AAD)	Berlevåg, Norway	50.0%	4	(6)	50.0%	—	(9)
Aela Energía (MRP)	Santiago, Chile	40.0%	—	—	40.0%	—	(46)
Other	Other		7	(5)		—	—
Total joint ventures			107	(69)		51	(73)

Total equity-accounted investees			1,163	(152)		1,072	(215)

See below for further information about material investments as well as summarized financial information (100 percent figures) for the same JVs and associates.


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MRP Africa Holdings Limited (MRPAH)

Mainstream Renewable Power Africa Holdings Limited is a holding company for Mainstream’s

investment in Lekela Power B.V., a renewable power generation company. MRPAH is recognized

as an associate, of which Mainstream holds a 33.8 percent shareholding. MRPAH owns 40

percent of Lekela Power B.V., resulting in an indirect shareholding of 14 percent in Lekela Power

B.V.

In July 2022, Mainstream and Actis signed an agreement to sell Lekela to Infinity Group and

Africa Finance Corporation, and the transaction closed in March 2023, see also note 35

Subsequent events. The transaction is expected to generate net proceeds to Mainstream of

approximately USD 90 million, subject to certain closing adjustments, with the transaction valued

at an enterprise value of approximately USD 1.5 billion.

Korea Floating Wind Power Co., Ltd. (KFWind)

KFWind is one of eight consortia with an MoU in place with Ulsan City for the development of

offshore wind power in the region. Mainstream owns 33.3 percent of KFWind and the remaining

shareholding is held by Ocean Winds.

The project is showing good progress, and completed the geophysical survey in Q4 2022. In

addition, Mainstream and its partner, Ocean Winds, contributed a total of NOK 270 million in

funding to KFWind in December 2022, of which Mainstream contributed according to its

ownership share.

Principle Power Inc (PPI)

Principal Power Inc (PPI) is an innovative technology and service provider for the offshore

deepwater wind energy market. PPI’s proven technology, the Windfloat – a floating wind turbine

foundation – enables a change in paradigm for the industry in terms of reduced costs and risks

for the installation and operation of offshore wind turbines. A 10.9 percent holding in PPI is

categorized as Held for Sale, following a declaration of an option by fellow shareholders EDP

Renováveis, see note 18 Assets held for sale. Recognition of the share of profit (loss) of this

shareholding ceased when the option was declared. Expected closing of the agreement is first

half of 2023.

REC Silicon ASA (REC)

During the first half of 2022, Aker Horizons sold all of its shares in REC Silicon ASA to the South

Korean entities Hanwha Solutions Corporation and Hanwha Corporation (together referred to as

“Hanwha”). The transaction also included the shares classified as assets held for sale as of 31

December 2021, resulting in total of 92 million shares sold for a total consideration of NOK 1.8

billion. A gain of NOK 1.6 billion was recognized in Other income in the consolidated accounts.

Aela Energia

In February 2022, the investment in Aela was agreed to be sold to a Canadian-listed developer

Innergex Renewable Energy, and the sale was completed in June 2022. Net proceeds from the

disposal amounted to NOK 1.1 billion and net gain is recognized in Other income by NOK 142

million.

The investment in Aela Energia was reported as held-for-sale as of 31 December 2021 based on

the assumption that it was Mainstream Renewable Power’s direct 40 percent shareholding in the

joint venture that would be sold. However, the disposal was structured in a way where

Mainstream Renewable Power did not sell their direct shareholding. Instead, proceeds from the

sale was upstreamed to Mainstream Renewable Power as dividends from Aela Energia, and

subsequent liquidation of the entity is planned to be completed in 2023. The investment was

accordingly transferred back to Investments in associates and joint ventures until disposal took

place.

Financial information on principal equity-accounted investees

The following table shows financial information for principal equity accounted-investees as

presented in their own financial statements, adjusted for fair value adjustments at acquisition and

differences in accounting policies. The table also reconciles the summarized financial information

to the carrying amount of the Group’s interest in the investments.


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	PPI		KFWind		MRPAH
Amounts in NOK million	2022	2021	2022	2021	2022	2021

Revenue	140	97	—	—	—	—
Depreciations and amortizations	(11)	(8)	—	(5)	—	—
Interest income	—	—	2	—	66	35
Interest expense	9	(8)	(1)	(1)	—	(1)
Income tax expense	—	—	—	—	(15)	(9)
Net profit (loss)	(67)	(81)	(16)	(37)	(82)	(58)
Total comprehensive income (100%)	(67)	(81)	(16)	(37)	91	(55)
Group's share of total comprehensive income	(24)	(33)	(5)	(4)	31	(20)

Current assets	126	155	216	31	8	707
- of which cash and cash equivalents	68	123	202	25	—	23
Non-current assets	208	173	198	25	842	—
Current liabilities	(58)	(37)	(125)	(99)	(38)	(19)
- of which current financial liabilities (excluding trade and other payables and provisions)	—	(2)	—	(91)	—	—
Non-current liabilities	(72)	(54)	(1)	(3)	—	—
- of which non-current financial liabilities (excluding trade and other payables and provisions)	(58)	(54)	—	—	—	—
Net assets (100%)	204	237	288	(45)	813	688
Share of net assets, net of NCI	74	86	96	(13)	275	232

Goodwill	218	195	8	2
Premium to book value	—				325	271
Unrealized gain	—				(7)	(7)
Share of loss not recognized	—	—	(2)	11
Carrying amount of the investment	292	281	102	—	592	496


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14 Inventories

Inventories relate primarily to renewable generation assets under development in Mainstream,

which the Group intends to dispose of prior to their Commercial Operation Date. Accordingly,

these project assets are held as inventories. Given the development cycle of the projects it is

expected that the work in progress will not be realized within one year.

Construction assets which the Group intends to dispose of on or shortly after their Commercial

Operation Date, are transferred to Property, Plant and Equipment upon reaching their

Commercial Operation Date.

Accounting principles

Inventories are stated at the lower of cost and net realizable value. Net realizable value is the

expected selling price in the ordinary course of business less estimated costs to completion and

costs to sell. The cost of work in progress covers development costs, construction costs, direct

labor costs and other directly attributable costs, including borrowing costs. The Group begins to

capitalize costs relating to a project when it secures the initial land required. Overheads of local

offices are capitalized to projects where those offices solely support development activities in

that region. Head office costs are also capitalized where they are directly attributable to projects.

These are capitalized on a time-based allocation of staff working directly on projects and

incidental costs they incur.

Judgements and estimates

The Group reviews all projects in development on a periodic basis. Occasionally, these reviews

result in a reduction in the carrying value of inventory balances. Judgment has been applied

when determining whether costs capitalized are recoverable and in determining the net

realizable value where it is deemed the full cost is no longer recoverable. Management uses

available market data to determine recoverability on an individual project basis.


Amounts in NOK million	2022	2021

Work in progress	944	714
Finished goods	8	2
Total	952	716

Write-down in the period	(107)	(7)
Capitalized in the period1	361	284

1) See note 5 for amounts related to capitalized people costs.

No capitalized development projects were disposed in the period.

15 Trade and other receivables

Trade and other receivables are to a large extent related to revenues in Aker Carbon Capture

and Mainstream, in addition to VAT refunds resulting from the on-going construction activities of

the Andes Renovables platform in Chile (Mainstream).

Accounting principles

Trade and other receivables are recognized at the original invoiced amount, less impairment

losses. The invoiced amount is considered to be approximately equal to the value derived if the

amortized cost method would have been used. Impairment losses are estimated based on the

expected credit loss method (ECL) for trade receivables, contract assets (with or without a

significant financing component) and other receivables.

Trade and other receivables


Amounts in NOK million	Note	2022	2021

Trade receivables		517	534
Provision for bad debt		—	—
Net trade receivables		517	534
Customer contract assets	3	13	85
Public duty and tax refund		1,004	492
Prepaid expenses		39	44
Other receivables		4	164
Total		1,577	1,319

Ageing trade receivables


Amounts in NOK million	2022	2021

Not past due	470	400
Past due 0-30 days	30	116
Past due 31-90 days	9	4
Past due 90-365 days	8	8
More than one year	—	6
Total	517	534

As of 31 December 2022, there were no materially overdue receivables. As a result, no

impairment was deemed to be required. The Group has no history of significant credit losses.


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16 Marketable securities

Marketable securities for 2021 include the Group’s investment in money market funds. The

underlying investments in the funds were all made in investment grade bonds. The majority of

the investments were related to bonds issued by Norwegian financial institutions or

municipalities.

Accounting principles

Marketable securities are classified as a financial assets measured at amortized cost.


Amounts in NOK million	2022	2021

Marketable securities	—	702
Total	—	702

17 Cash

Accounting principles

Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an

original maturity of three months or less and subject to an insignificant risk of changes in fair

value. Restricted cash comprises cash that is held for a specific purpose and therefore not

available for immediate or general business use.


Amounts in NOK million	2022	2021

Cash in cash pool	368	422
Interest-bearing deposits	8,315	4,990
Cash and cash equivalents	8,683	5,412
Restricted cash	2,076	2,071
Total	10,759	7,483

Restricted cash

As of 31 December 2022, NOK 2.1 billion of the Group’s cash was restricted in respect of

Mainstream. Of this amount around NOK 526 million relates to cash backing of certain

guarantees provided on behalf of Mainstream. Around NOK 1.5 billion relates to the portfolios,

where cash disbursed under the project finance facilities is restricted for use within the specific

portfolio. Restricted cash also includes NOK 18 million is restricted cash related to employee tax

withholdings.


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18 Assets held for sale


Amounts in NOK million	Note	2022	2021

Transmission line, Chile		182	161
Shareholding in Aela Energía	13	—	901
Shareholding in Principle Power Inc		86	86
Shareholding in REC Silicon	13	—	54
Total		268	1,202

Accounting principle

Non-current assets are classified as held for sale if it is highly probable that they will be

recovered primarily through sale rather than through continuing use. This condition is regarded

as met only when the sale is highly probable, and the asset or disposal group is available for

immediate sale or distribution in its present condition.

Non-current assets held for sale are measured at the lower of their carrying amount and fair

value less costs to sell. Impairment losses on initial classification as held-for-sale and

subsequent gains and losses on remeasurement are recognized in profit or loss.

Non-current asset classified as held for sale are presented separately from other assets in the

statement of financial position. The balance sheet for prior periods is not reclassified to reflect

the classification in the balance sheet for the latest period presented.

Judgments and estimates

Judgment have been made when assessing whether assets or a group of assets shall be

classified as held for sale. As of 31 December 2022, the Group has agreed to sell Lekela Power,

Africa's largest pure-play renewable energy independent power producer, to Infinity Group and

Africa Finance Corporation, generating proceeds of about USD 90 million. The transaction is

expected to be closed in during first half of 2023. Aker Horizons’ ownership in Lekela Power is

through the associated company Mainstream Renewable Power Africa Holdings Limited

(MRPAH), whereby Aker Horizons holds 33.8 percent. As it is not this shareholding that will be

disposed but instead shareholdings further down in the Lekela entity structure, the investment in

MRPAH has not been classified as held for sale in the balance sheet of 31 December 2022.

Shareholding in Principle Power Inc (PPI)

Following declaration of an option by the JV partner EDPR/Ocean Winds, Aker Offshore Wind

will sell a shareholding of 10.9 percent in PPI. The book value of these shares, NOK 86 million,

has been presented as assets held for sale in the balance sheet as of 31 December 2022

(unchanged from 2021). Recognition of the share of profit (loss) from this shareholding ceased

when the option was declared. The share disposal is expected to be completed during first half of

2023.

19 Share capital and capital reserves

The Company holds no treasury shares. The share capital of Aker Horizons ASA is divided into

690,351,751 ordinary shares, with a nominal value of NOK 1. All issued shares are fully paid.


Issues of ordinary shares during the year	2022	2021

Shares at the beginning of the period	609,739,165	3,000
Issue of ordinary shares January	—	568,893,516
Issue of ordinary shares February	—	11,857,142
Issue of ordinary shares June	80,612,586	—
Issue of ordinary shares November	—	28,985,507
Ordinary shares at the end of the period	690,351,751	609,739,165

Share capital and other paid-in capital

Aker Horizons ASA has one class of shares, ordinary shares, with equal rights for all shares. The

holders of ordinary shares are entitled to receive dividends and are entitled to one vote per share

at General Meetings.

Foreign currency translation reserve

The foreign currency translation reserve comprises the aggregate effect since incorporation or

acquisition of translating the equity of subsidiaries that have a functional currency different to the

currency of the parent company, including the Group’s share of joint venture and associate

foreign exchange variations.

Other equity

Other equity comprises continuity differences from common control transactions and the equity

component of compound instruments.

Cash flow hedge reserve

The cash flow hedge reserve comprises the aggregate movement in the value of interest rate

swaps that has been designated for hedge accounting, including the Group’s share of joint

venture and associate cash flow hedge reserves.


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20 Borrowings

Accounting principles

Interest-bearing borrowings are recognized initially at fair value less transaction costs.

Subsequent to initial recognition, interest-bearing borrowings are stated at amortized cost with

any difference between cost and redemption value being recognized in the income statement

over the period of the borrowings on an effective interest basis.

Overview of loans and borrowings


Amounts in million	Currency	Nominal currency value	Maturity	Carrying amount (NOK)

2022
Revolving Credit Facility - Aker Horizons ASA	NOK	—	2024	(17)
Green bond - Aker Horizons ASA	NOK	2,500	2025	2,501
Convertible loan - Aker Horizons ASA	NOK	1,500	2026	1,307
Shareholder loan - Aker Horizons ASA	NOK	2,000	2026	2,260
Total corporate borrowings				6,051
Project financing - Mainstream	USD	1,129	2038-2041	10,653
Mezzanine loan - Mainstream	USD	304	2025	2,899
VAT loans - Mainstream	CLP	31,415	2023/2024	294
Other loans - Mainstream				10
Other loans	NOK	—		66
Total other borrowings				13,922
Total borrowings				19,973

Current borrowings				871
Non-current borrowings				19,102


Amounts in million	Currency	Nominal currency value	Maturity	Carrying amount (NOK)

2021
Revolving Credit Facility - Aker Horizons ASA	NOK	—	2024	(41)
Green bond - Aker Horizons ASA	NOK	2,500	2025	2,487
Convertible loan - Aker Horizons ASA	NOK	1,500	2026	1,241
Shareholder loan - Aker Horizons ASA	NOK	2,000	2026	2,116
Total corporate borrowings				5,803
Facilities - Rainpower	NOK	84	2026	84
Project financing - Mainstream	USD	1040	2038-2041	8,712
Mezzanine loan - Mainstream	USD	301	2025	2,563
VAT loans - Mainstream	CLP	19,744	2023/2024	189
Other loans - Mainstream				125
Other loans	NOK	87		87
Total other borrowings				11,761
Total borrowings				17,564

Current borrowings				446
Non-current borrowings				17,118

Revolving Credit Facility (RCF)

The Company has a multi-currency revolving credit facility for EUR 500 million that can be drawn

for general corporate purposes of the Group, including for the purpose of funding CapEx,

acquisition costs and expenses. The loan carries an interest rate of 3M NIBOR + 2.5 percent

margin p.a. The RCF includes customary financial covenants such as a maintenance-based loan

to value (LTV) covenant of 50 percent. Loan in the LTV covenant includes senior loans in Aker

Horizons ASA (not subordinated debt). The covenant also includes a minimum liquidity covenant,

in the form of cash or undrawn facility, of NOK 200 million. As of 31 December 2022, the facility

was undrawn.

Green bond

In February 2021, the Company signed an unsecured green bond issue in an amount of NOK

2,500 million, with a tenor of 4 years, a bullet amortization and carry an interest rate of 3M

NIBOR + 3.25 percent margin p.a. The terms of the green bond issue include customary

financial covenants such as an incurrence-based loan to value covenant and a minimum liquidity

covenant of NOK 200 million, in line with the RCF described above.


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Convertible bond

In February 2021, the Company issued an unsecured convertible bond in the amount of NOK

1,500 million with a tenor of 5 years, bullet amortization and 1.5 percent p.a. payment in kind

(PIK) interest. The bondholders may elect to convert the bonds to shares in the Company at any

time during the term of the bond issue at a conversion price which is 25 percent above the offer

price of NOK 35 per share in the private placement that took place in January 2021 in Aker

Horizons ASA. The bonds issued under the convertible bond issue rank pari passu with other

subordinated debt of Aker Horizons but are subordinated to senior debt of the borrower in the

event of a default under any of Aker Horizons’ financial arrangements.

On initial recognition, the fair value of the the debt component of the convertible bond was

estimated to NOK 1,152 million and the residual of NOK 348 million was recognized as equity.

Shareholder loan

In January 2021, the Company entered into a subordinated loan agreement of NOK 2,000 million

with Aker Capital AS (see Note 34 Related party transactions for more information).

Project financing - Mainstream

Condor: In 2019, Mainstream entered into a project financing loan agreement for USD 552

million, which was fully drawn as of 31 December 2022. This loan has provided construction

funding to finance the majority of Mainstream’s commitment in the Condor projects, and

installments are payable quarterly until 2038. 8 percent of the loan accrues interest at 4.17

percent p.a. and the remainder initially at LIBOR + 2.35 percent p.a. The margin increases by 25

bps every fourth year commencing 1 September 2025 until reaching LIBOR + 3.35 percent.

Huemul: In 2020, Mainstream entered into a project financing loan agreement for USD 542

million, of which USD 518 million was drawn down as of 31 December 2022. This loan is

providing construction funding to finance the majority of Mainstream’s commitment in the Huemul

projects, and installments are payable quarterly until 2038 (commercial tranche) and 2039 (Inter-

American Investment Corporation (IDB Invest) tranche) . The loan initially accrues interest at

LIBOR + 2.45 percent p.a. The margin increases by 25 bps every fourth year commencing 1

June 2026 until reaching LIBOR + 3.45 percent. Furthermore, upon the maturity of the

commercial tranche in 2038, the IDB Invest tranche will attract a margin of LIBOR + 3.575

percent until it matures.

Copihue: In 2021, Mainstream entered into a project financing loan agreement for USD 162

million, of which USD 85 million was drawn down at 31 December 2022. This loan will provide

construction funding to finance the majority of Mainstream’s commitment in the Copihue project,

and installments are payable quarterly until 2041. The loan initially accrues interest at LIBOR +

2.25 percent p.a. The margin increases by 25 bps every fourth year commencing 1 September

2027 until reaching LIBOR + 3.25 percent.

Interest rate swaps are in place for the project financing described above and are disclosed in

note 28 Derivative financial instruments. Project financing and associated interest rate swaps are

linked to USD LIBOR rates which will stop being published in June 2023. Alternate rates are

currently being considered by the Group, with the expectation that the margin of the transactions

will remain the same following transition. The transition is expected to occur in the first quarter of

2023.

Covenants: The construction financing loans referred to above have customary covenants that

relate to the use of funds and 12-month historic and projected Debt Service Coverage Ratios

(“DSCR”) at each debt service payment date. The DSCR means, as at any date of

determination, as determined on a cash basis, the ratio of (a) (i) Project Revenues for the

relevant calculation period less (ii) Operation and Maintenance Expenses with respect to all

Projects for such period, to (b) Debt Service for such period. The historical DSCR should be

higher than 1.00x otherwise would be considered as an event of default. The historical DSCR is

also a condition that allow Restricted Payments (mainly dividends and repayment of shareholder

loans), in this case should be higher than 1.20x.

Project finance loans such as Andes Renovables contain numerous customary measures

relating to the construction and the running of the project companies in order to ensure the

lenders the expected level of comfort with the project execution and management and the

expected involvement in the decision-making processes. The legal documents governing the

loans set out these measures including requirements for lenders’ approval on matters such as

updates to material contract documents, a wide range of financial matters, schedules of dates of

various milestones and a list of specified documents and materials that are to be finalized and

submitted to the lenders within a set timeline. Throughout the construction of 10 projects within

the Andes Renovables platform, Mainstream has been in regular contact with its lenders and has

received the lenders’ support on all key aspects of the build to date. At 31 December 2022 all of

the Andes Renovables’ loans were fully compliant with no defaults outstanding.

Please refer to note 35 Subsequent events for information about certain technical defaults that

occurred subsequent to year end. Mainstream, is in an active dialogue with the banks relating to

document waivers and approvals required to resolve the defaults.

Security rights: As part of the project financing loan agreements and also the VAT loan

described below , there are security rights of the lenders, over the underlying assets in the

Condor, Huemul and Copihue projects. These security rights include pledges over project related

property, plant and equipment, both in construction and in operations, cash, trade receivables

and all other assets.

Mezzanine Financing Loan: In 2020, Mainstream entered into a mezzanine financing loan

agreement for USD 296 million, of which USD 286 million was drawn as of 31 December 2022.

The loan balance also reflects Payment-in-kind interest of USD 17 million The loan provides

funding to finance a portion of Mainstream’s commitments in the Condor, Huemul and Copihue

projects. The loans accrue interest at 8.25 percent p.a. in the construction phase and 7.5 percent

p.a. during operations. Until such point as all projects in the Andes Renovables portfolio have

achieved project completion, Mainstream is able to pay in kind (PIK) up to 50 percent of interest.

The loan has a term of five years at which date the principal is due for repayment.


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Other loans - Mainstream

Mainstream Renewable Power has entered into Project Financing VAT loan agreements for USD

109 million, of which USD 30 million was drawn down as of 31 December 2022. This loan

provides VAT funding to support Mainstream’s commitment in the projects that form part of the

Andes Renovables platform. The loan related to Condor amounts to USD 17 million has

termination date in October 2023 at which date the principal is due for payment. Remaining

loans, which relate to Huemul and Copihue, are payable in third quarter 2024.

Reconciliation of movements of liabilities to cash flows arising from

financing activities


Amounts in NOK million	Corporate loans	Other loans	Leases	Total

2021
Balance as of 1 January 2021	1,184		41	1,225
Proceeds from borrowings	4,569	2,731	—	7,300
Repayments from borrowings	(560)	(462)	—	(1,022)
Transaction costs borrowings	(115)	(62)	—	(177)
Lease payments	—	—	(58)	(58)
Total changes from financing cash flows	3,894	2,207	(58)	6,043

Other changes
Remeasurement	—	—	75	75
Reclassifications equity component convertible loan	455	—	—	455
Foreign exchange movements		619		620
Accrued interest	244	7	18	269
Acquisition of business	—	8,921	591	9,512
Capitalized borrowing costs	26	7	—	33
Total other changes	725	9,554	685	10,964

Balance as of 31 December 2021	5,803	11,761	668	18,232


Amounts in NOK million	Corporate loans	Other loans	Leases	Total

2022
Balance as of 1 January 2022	5,803	11,761	668	18,232
Proceeds from borrowings	—	1,360	—	1,360
Repayments from borrowings	—	(604)	—	(604)
Lease payments	—	—	(76)	(76)
Total changes from financing cash flows	—	756	(76)	680

Other changes
Reclassifications / remeasurement	—	(119)	84	(35)
Foreign exchange movements	—	1,268	48	1,316
Accrued interest	213	385	29	627
Disposal of business	—	(100)	(65)	(165)
Capitalized borrowing costs	35	(29)	—	6
Total other changes	248	1,405	95	1,748

Balance as of 31 December 2022	6,051	13,922	687	20,660


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21 Leasing

The Group's leases mainly consist of land and office buildings, in addition to some machines and

office equipment. Contracts that contain a lease are recognized in the balance sheet as a right-

of-use asset and lease liability unless the lease is short-term (less than 12 months duration) or

low-value (less than NOK 50,000).

Accounting principles

IFRS 16 requires a lessee to account for lease contracts by recognizing a lease liability and an

asset representing the right to use the underlying asset for the lease term. The lease liability

represents the net present value of the lease payments to be made over the remaining lease

period. The right-of-use asset is depreciated over the lease term and interest expense on the

lease liability are recognized in the income statement.

The Group recognizes a lease liability and corresponding right-of-use asset for all lease

agreements, except for short-term leases or low-value assets. For leases defined as short-term

or low-value, the lease payments are recognized as other expense in the income statement.

Measuring the lease liability

The lease liability is initially measured at the present value of future lease payments. Lease

payments are discounted using a rate that is calculated for each lease. The non-cancellable

lease period, together with periods covered by an option to extend the lease, is basis for the

lease term, if the Group is reasonably certain to exercise the option.

Measuring the right-of-use asset

The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date

the underlying asset is available for use). Right-of-use assets are measured at cost, less

accumulated depreciation and impairments, and adjusted for any remeasurement of lease

liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial

direct costs incurred, and lease payments made at or before the commencement date. Right-of-

use assets are subject to impairment testing.

Judgments and estimates

Judgment has been applied when determining the discount rate used in the calculation of lease

liabilities. The Group applies the intercompany borrowing rate, which is based on the Group’s

external medium-term borrowing rates with premium adjustments for any subsidiary specific risk

factors.

The lease term assessment requires management’s judgment and is made at the

commencement of the lease. The lease term is reassessed if an option is exercised or the Group

becomes reasonably certain to exercise it. The assessment of reasonable certainty is only

revised if a significant event or a significant change in circumstances occurs, which affects this

assessment, and that is within the Group’s control.


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Right-of-use assets


Amount in NOK million	Note	Land and buildings	Machinery and equipment	Total right-of-use assets

2021
Balance as of 1 January		38	—	38
Acquisition of subsidiaries	29	571	3	574
Additions		87	—	86
Depreciations		(26)	(1)	(27)
Currency translation differences and other changes		29	—	29
Balance as of 31 December		698	2	700

At 31 December 2021
Cost		729	3	732
Accumulated depreciation		(31)	(1)	(31)
Carrying value		698	2	700

2022
Balance as of 1 January		698	2	700
Additions		81	3	84
Disposals	30	(65)	2	(63)
Depreciations		(41)	(5)	(46)
Currency translation differences and other changes		59	—	59
Balance as of 31 December		731	2	734

At 31 December 2022
Cost		784	4	789
Accumulated depreciation		(53)	(2)	(55)
Carrying value		731	2	734

The majority of the right-of-use assets from Mainstream relate to seven land leases in Chile for

the Condor and Huemul portfolios, expiring over a period of 22 to 33 years.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term

and the estimated useful lives of the assets, as follows:

•Land and buildings: 2-33 years

•Machinery and equipment: 1-5 years

Lease liabilities


Amount in NOK million	Note	2022	2021

Balance as of 1 January		668	41
Acquisition of subsidiaries	28	—	591
Additions		84	75
Lease payments	7	(76)	(58)
Accrued interest		29	18
Disposals		(65)	—
Currency translation differences and other changes		48	1
Balance as of 31 December		687	668

Current		61	63
Non-current		626	605

Short-term and low-value assets expensed in income statement amounts to NOK 2 million

(2021: NOK 1 million). For maturity of undiscounted lease payments as of 31 December, see

note 25 Financial risk and exposure.


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22 Provisions and non-current liabilities

Accounting principles

A provision is a liability with an uncertain timing and amount. Provisions are recognized when the

Group has a present obligation (legal or constructive) as a result of a past event, it is probable

that a cash outflow will be required to settle the obligation and a reliable estimate can be made of

the amount of the obligation.

A contingent liability is a possible obligation that arises from past events that typically depends

on a future event outside of the company's control, for example a court decision. A provision is

made when it is considered as probable that cash outflow will take place, and the obligation can

be measured reliably.

Contingent liabilities arising from past events and for which it is not probable that an outflow of

resources will be required to settle the obligation, if any, are not recognized but disclosed with an

indication of uncertainties relating to the amounts and timing involved. Disclosures are not given

if the possibility of an outflow in settlement is remote.

If the effect of the time value of money is material, provisions are determined by discounting the

expected future cash flows at a pre-tax rate that reflects current market assessments and, where

appropriate, the risks specific to the liability. Where discounting is used, the increase in the

provision due to the passage of time is recognized as finance expenses in the consolidated

income statement.

Judgments and estimates

The provisions are estimated on the basis of a number of assumptions and are highly judgmental

in nature.

Provisions


Amounts in NOK million	Asset retirement obligations	Other	Total

Balance as of 1 January 2022	89	46	136
Disposal of subsidiaries	—	(16)	(16)
Provisions made during the year	216	—	216
Provisions used during the year	—	(33)	(33)
Currency translation differences	12	3	14
Balance as of 31 December 2022	317	—	317

Asset retirement obligations

The Group recognizes a decommissioning provision in the cost of generation assets when there

is an obligation to decommission and restore the sites it occupies. As of 31 December 2022,

provisions totaling NOK 317 million have been recognized. See Note 10 Property, plant and

equipment for accounting principles and related judgments used in estimation of this obligation.

Other non-current liabilities


Amounts in NOK million	Note	2022	2021

Employee benefits	5	9	8
Deferred consideration - non current	29	75	—
Total		84	8


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23 Trade and other payables

Trade and other payables is to a large extent related construction activities in Chile, with

continued high activity in 2022.

Accounting principles

Trade and other payables are recognized at the original invoiced amount. The invoiced amount

is considered to be approximately equal to the value derived if the amortized cost method had

been used.


Amounts in NOK million	Note	2022	2021

Trade payables		572	274
Accrued expenses		1,132	1,986
Contract liabilities		91	405
Public duties and taxes		80	105
Other current liabilities		123	20
Deferred consideration1	29	112	142
Current provisions	22	—	42
Total trade and other payables		2,110	2,974

1) Deferred consideration relates to the purchase of Development and Technology JSC (2021) and purchase of Powered Land

AS (2022).

24 Capital management

The overall objectives of Aker Horizons’ capital management policy are to maintain a strong

capital base and liquidity position that preserve investor, creditor and market confidence, to

ensure financial flexibility to be able to act on opportunities as they arise, and to maintain a

capital structure that minimizes the Company’s cost of capital. Aker Horizons pursues a

conservative strategy with minimal risk for placements of surplus liquidity, and need to be flexible

in terms of liquidity.

Aker Horizons’ capital management is based on a rigorous investment selection process, which

considers not only Aker Horizons’ weighted average cost of capital and strategic orientation but

also external factors.

Funding policy

Aker Horizons has a strong focus on liquidity to ensure solvency for financial obligations and to

have available capital to seize opportunities. The corporate liquidity reserve in the Aker Horizons’

holding companies at year-end 2022 was NOK 9.4 billion. This was composed of an undrawn

committed credit facility of EUR 500 million and cash and cash equivalents of NOK 4.1 billion in

“Aker Horizons & holding” (compared to cash and cash equivalents of NOK 10.8 billion for the

entire group).

Aker Horizons aims to access diversified funding sources in order to minimize the cost of capital.

In addition to the use of banks for syndicated credit facilities and the issue of equity and debt

instrument in Norwegian and foreign capital markets, Aker Horizons can fully or partially realize

investments in its portfolio to access liquidity. For funding needs in portfolio companies, the

Group’s funding policy is that subsidiaries should finance their operations on a stand-alone basis.

There are several levers to pull in addition to customary corporate and project-level debt

financing, including farming down and inviting strategic investors at the project or portfolio

company level.

Ratios used in monitoring of capital/covenants

Aker Horizons corporate debt

Aker Horizons monitors its compliance with corporate debt requirements on the basis of a loan to

value (LTV) ratio which has a covenant with a maximum senior debt balance of 50 percent of

consolidated values, and a minimum available liquidity, in the form of cash or undrawn RCF

balance, of NOK 200 million. The covenants are monitored on a regular basis by the Aker

Horizons Treasury Department to ensure compliance with the loan agreements and are tested

and reported on a quarterly basis. Aker Horizons was in compliance with its covenants as of 31

December 2022.

For covenant information on other borrowings in Aker Horizons, see note 20 Borrowings.


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25 Financial risk and exposure

Financial risk and capital management

The Aker Horizons Group consists of various operations and companies that are exposed to

different types of financial risks, including credit, liquidity and market risk (e.g., energy price,

currency and interest risk). The purpose of risk management is to measure and manage financial

risk in a reliable manner, thereby increasing predictability and reducing negative effects on Aker

Horizons’ financial results. The Group uses different financial instruments to manage its financial

exposure actively.

The Group has put in place a set of policies and procedures to assist in the management of

group financial risks. These procedures are to be approved and reviewed annually by the Board

and primarily cover foreign exchange risk, credit risk, liquidity risk and interest rate risk.

Credit risk

Credit risk is the risk of financial losses if a customer or counterparty to financial receivables and

financial instruments fails to meet contractual obligations. The Group is exposed to credit risk

from its operating activities (primarily for trade and other receivables) and from its financing

activities, including deposits with banks and financial institutions.

The Group actively monitors its credit exposure to each counterparty. In addition, the Group

reviews the creditworthiness of key suppliers, customers or other stakeholders and partners

(such as construction contractors, electricity off-takers or turbine suppliers) when entering into

significant or long-term contracts. The Group currently has no concerns regarding the

recoverability of receivables based on our assessment of these counterparties.

The Group transacts with a variety of highly credit rated financial institutions for the purpose of

placing deposits. The Group’s objective is to only trade with counterparties that have an

investment grade rating.

The maximum exposure to credit risk at the reporting date equals the book value of each

category of financial assets (note 17 Cash, note 15 Trade and other receivables and receivables

on joint venture and associates as disclosed in note 34 Related party transactions. The Group

does not does not secure credit by means of collateral.

Outstanding customer and other receivables are regularly monitored. For trade receivables, the

Group applies a simplified approach in calculating expected credit losses. At 31 December 2022

and 2021, no allowance was required.

Commodity price risk

The Group, through its investment in Mainstream Renewable Power, is exposed to commodity

price risk as the price of electricity is a key input to the valuation of a solar PV or wind farm

asset. The Group intends to manage the risk of electricity price volatility by seeking to agree

Power Purchase Agreements (PPAs) with off-takers of electricity to fix a price for a given term

prior to financial close of a project.

The Group also considers other commodity price risks, such as that of steel and other metal

components which can have an impact on the Group’s business, as part of its overall risk

assessment.

Currency risk

The Group's operations in the international market results in various types of currency

exposures. Currency risk arises through ordinary course of business, potential mergers and

acquisitions, capitalized assets and liabilities and when such transactions involve payments in a

currency other than the functional currency of the respective company. In addition, currency risk

will occur if investments in subsidiaries are made in another currency than its functional currency.

The Group's exposure to currency risk is primarily related to EUR, GBP, USD and CLP and is

managed in accordance with the agreed policies.

The policy is to hedge short to medium term foreign currency exposure based on prudent cash

flow assessment. Project financing aim to match the currency of the future revenue in the

projects. Aker Horizons does generally not hedge currency exposures of equity investments. As

of 31 December 2022, the Group did not have significant residual currency exposure related to

its activities.

Liquidity risk

Liquidity risk is the risk that the Group will have insufficient funds to meet its liabilities. The Group

actively manages its use of long-term and short-term assets and liabilities to ensure it has

sufficient funds available to meet the demands of the Group. The Group has long-term debt

funding and has cash balances with deposit maturities up to three months.


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Overview of contractual maturities of financial liabilities, including estimated interest payments specified by category of liabilities:


		Contractual cash flows including estimated interest payments
Amounts in NOK million	Carrying amount	Total contractual cash flows	6 months or less	6-12 months	1-2 years	2-5 years	Over 5 years

2022
Corporate loans	6,050	7,362	110	111	194	6,946	—
Mainstream loans1	13,857	21,909	658	789	1,400	6,354	12,709
Other	66	68	4	25	27	12	—
Total borrowings	19,973	29,339	772	925	1,621	13,312	12,709

Lease liabilities	687	1,096	66	15	55	141	819
Trade and other payables	2,110	2,110	2,110
Total borrowings and other liabilities	22,770	32,545	2,947	940	1,676	13,453	13,528


		Contractual cash flows including estimated interest payments
Amounts in NOK million	Carrying amount	Total contractual cash flows	6 months or less	6-12 months	1-2 years	2-5 years	Over 5 years

2021
Corporate loans	5,803	7,371	76	77	153	7,065	—
Mainstream loans1	11,590	15,054	409	351	1,031	4,488	8,775
Rainpower loans	84	91	1	31	2	57	—
Other	87	90	—	25	52	13	—
Total borrowings	17,564	22,606	486	484	1,238	11,623	8,775

Lease liabilities	668	997	53	25	81	147	691
Long-term derivative financial liabilities	153	153	49	21	21	38	24
Trade and other payables	2,932	2,932	2,932
Total borrowings and other liabilities	21,317	26,688	3,520	530	1,340	11,808	9,490

1) Amounts do not reflect effect of interest swaps which will reduce the total cash out flows, which totals NOK 1.9 billion as at 31 December 2022 (2021: NOK 90 million). See note 28 Derivative financial instruments

for more information on maturity profile for interest rate swaps.

As of 31 December 2022, the Group had cash and cash equivalents of NOK 10.8 billion, of which NOK 2.1 billion was restricted, see Note 17 Cash.


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Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of an asset or liability will

fluctuate because of changes in market interest rates. Aker Horizons’ interest rate exposure

mainly arises from external funding in bank and debt capital markets. Most of the external debt in

Aker Horizons is at floating interest rates.

The Group manages this risk by borrowing at a fixed rate of interest as deemed appropriate.

Where Group borrowings are at a floating rate of interest, the Group use interest rate swaps to

achieve the desired fixed/floating ratio of the external debt. Portfolio companies with project

financing including a floating element typically hedge in excess of 75 percent of said floating

amount.

The interest profile of the Group’s interest-bearing financial instruments is as follows:


Amounts in NOK million	2022	2021

Fixed-rate instruments
Financial liabilities	(6,560)	(6,059)
Total	(6,560)	(6,059)
Effect of interest rate swaps	(10,433)	(8,878)
Total	(16,993)	(14,936)

Floating-rate instruments
Financial assets	10,759	8,185
Financial liabilities	(13,413)	(12,049)
Total	(2,654)	(3,864)
Effect of interest rate swaps	10,433	8,878
Total	7,779	5,014

Effect of increase of 100 basis points in interest rates on profit (loss) before tax:


Amounts in NOK million	Note	2022	2021

Cash and cash equivalents	17	108	75
Marketable securities	16	—	7
Borrowings	20	(134)	(120)
Interest rate swaps	28	104	89
Net		78	51

A decrease of 100 basis points in interest rates would have had the equal but opposite effect on

the above amounts, on the basis that all other variables remain constant.

26 Climate risk

Climate change represents both a risk and an opportunity for Aker Horizons, directly linking to

our vision and purpose of developing green energy and green industry to accelerate the

transition to Net Zero. Effective assessment and analysis of these climate-related risks (both

physical and transitional) and opportunities is critical to understanding the potential impacts of

climate-related risks on asset valuations, revenue and investment needs. To successfully identify

and manage climate-related risks and opportunities, Aker Horizons used the Taskforce on

Climate-related Financial Disclosures (TCFD) framework. The results of this assessment inform

Aker Horizons’ strategy, investments, financial planning and valuations, and allow stakeholders

to comprehend the financial ramifications of Aker Horizons and portfolio companies’ climate-

related exposure.

Aker Horizon’s full TCFD report can be found in the Appendix.

Effects on Aker Horizons’ financial statements

Overall, Aker Horizons is well positioned to profit from the increased focus on reducing emissions

and reaching the net zero target. However, in the process of reaching the global emission

targets, and for the world to transition to green electricity as the main source of energy, we have

identified transition risk as a key risk, that may affect the value of Aker Horizons’ assets.

The transition risk relates to a non-synchronized development that may delay the overall speed

of the transition. Permitting delays and more physical grid connection constraints are a risk to the

speed of the transition. To mitigate this risk, we engage with regulators and Governments

through industry associations to address these market inefficiencies.

In Chile in 2022, we experienced transition risk related to market design, which was exacerbated

in part by physical climate risk due to weaker hydrological conditions. Chile’s market design and

transmission system remains dislocated, with operators exposed to additional power delivery

costs. These grid challenges were compounded by the increases in international fossil fuel

prices, a lack of available LNG imports to Chile and weak Chilean hydrology.

Please also refer to note 12 Impairment.


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27 Financial instruments

Financial assets and liabilities in the Group consist of investments in other companies, trade and

other receivables, cash and cash equivalents, forward foreign exchange contracts, trade and

other payables, borrowings and equity.

All financial assets and liabilities, except for derivative financial instruments (note 28) and

marketable securities (note 16), are measured at amortized cost.

Amortized cost is considered a reasonable approximation of fair value for all financial assets and

liabilities, with the following exceptions:


Amount in NOK million	Note	Carrying value	Fair value	Fair value hierachy

Green Bond	20	2,501	2,354	Level 2
Convertible	20	1,307	1,129	Level 2

When measuring the fair value of an asset or a liability, the Group used observable market data

as far as possible. Fair value are categorized into different levels in a fair value hierarchy based

on inputs used in the valuation techniques as follows:

•Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

•Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset

or liability

•Level 3: Inputs for the asset or liability that are not based on observable market data

(unobservable inputs)

Derivative financial instruments and marketable securities are measured at level 2 in the fair

value hierarchy. The valuation of the interest swaps is based on an external valuation model,

derived from a Mark To Market model. There has been no material change in the valuation

methodology in the current or preceding year.

28 Derivative financial instruments

Aker Horizons’ interest rate exposure mainly arises from external funding in bank and debt

capital markets. The Group manages this risk by borrowing at a fixed rate of interest as deemed

appropriate. Where Group borrowings are at a floating rate of interest, the Group use interest

rate swaps to achieve the desired fixed/floating ratio of the external debt. Portfolio companies

with project financing including a floating element typically hedge in excess of 75 percent of said

floating amount.

Further information regarding risk management policies in the Group is available in Note 25

Financial risk and exposure.

Accounting principle

Hedge accounting is applied using the cash flow model for interest rate swaps which means that

gains and losses from floating to fixed interest rates are recognized in the hedging reserve in

equity and will be continuously released to the income statement until the bank borrowings are

repaid. This is done based on the periodic market-to-market revaluation of the interest rate

swaps whose fair value tends to reach zero upon maturity.

Fair value of derivative instruments with maturity

The table below presents the fair value of the derivative financial instruments and a maturity

analysis of the derivatives’ cash flows, which all were interest swaps. The Group did not have

material foreign exchange derivatives as of 31 December 2022.


Amounts in NOK million	Instruments at fair value	Total cash flow	6 months or less	6-12 months	1-2 years	2-5 years	More than 5 years

2022
Total assets1	1,938	1,938	178	179	266	475	839

2021
Total assets	243	243	(2)	(4)	16	64	169
Total liabilities	153	153	49	21	21	38	24

1) There were no liabilities as of 31 December 2022.


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The Group’s hedging reserve relate to interest swaps and changes are specified in the table

below


Amounts in NOK million	Interest rate swaps

Balance as of 1 January 2021
Change in fair value of hedging instrument recognized in OCI	(97)
Reclassified from OCI to profit and loss, included in finance costs	—
Balance as of 31 December 2021	(97)

Balance as of 1 January 2022	(97)
Change in fair value of hedging instrument recognized in OCI	1,772
Reclassified from OCI to profit and loss, included in finance costs	59
Tax	(517)
Balance as of 31 December 2022	1,218

Of which presented as hedge reserve	759
Of which presented as non-controlling interest	459

There were no reclassifications from the cash flow hedge reserve to profit or loss during the

period as a result of inefficiencies.

29 Changes in group structure

Aker Horizons’ portfolio underwent a series of transformative transactions in 2022 described

below:

Merge with Aker Clean Hydrogen

In June 2022, Aker Horizons completed a triangular merger with its subsidiary Aker Clean

Hydrogen whereby the subsidiary was delisted from EuroNext, establishing an in-house hybrid

asset origination and development muscle, in the form of Aker Horizons Asset Development. The

22.8 percent non-controlling interest amounted to NOK 594 million at the time of the merger,

which was transferred to equity of the equity attributable to parent company.

Combining Aker Offshore Wind and Mainstream Renewable Power

In April 2022, Mitsui & Co., Ltd invested EUR 575 million in Mainstream, joining Aker Horizons as

a long-term strategic partner in the company.

In June 2022, Aker Horizons completed a triangular merger with its subsidiary Offshore Wind

whereby the subsidiary was delisted from EuroNext. Subsquently, The 49,0 percent non-

controlling interest amounted to NOK 181 million at the time of the merger, which was

transferred to equity of the equity attributable to parent company.

Subsequently, Aker Offshore Wind and Mainstream Renewable Power were combined,

leveraging complementary footprint and capabilities, increased scale and improved access to

financing.

Investments in Narvik

On 30 September 2022, Aker Horizons acquired five sites in the Narvik region in the north of

Norway. The acquisition of the five sites are one of the key steps in the plan to develop green

value chains for power-intensive industries, such as production of hydrogen and hydrogen

derivative assets, in the Narvik region. The sites were acquired from Nordkraft AS, a municipality

owned, local power producer in the Narvik region. As part of the agreement, Nordkraft has

committed to participate in the development of the sites, both through an active ownership,

holding a 20 percent minority in the projects, and through earn-out agreements linked to

successful development of the sites.

NOK 10 million was paid in cash for acquisition of the shares in Aker Narvik AS. In addition, a

deferred consideration related to earn-out agreement is recognized as other non-current

liabilities in the balance sheet, refer to note 22 Provisions and non-current liabilities. The

acquisition was structured as an acquisition of assets, as opposed to a business combination in

scope of IFRS 3.


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Acquisition of 50 percent shareholding in Redwood

The Redwood project was established in 2018 as a consortium with Ocean Winds and Aker

Offshore Wind, and the consortium was selected in a competitive process to enter into a public

private partnership to pursue the development of an offshore wind energy project off the

Northern California coast. In December 2020, Redwood Coast Offshore Wind LLC (“Redwood”)

was established.

In July 2022, Aker Offshore Wind acquired Ocean Wind’s 50 percent shareholding, and

consideration paid was NOK 51 million, net of cash acquired. The acquisition was identified as

an acquisition of assets, as opposed to a business combination in scope of IFRS 3. A goodwill of

NOK 114 million and a gain in Other income of NOK 54 million related to derecognition of

existing shareholding of 50 percent was recognized related to the transaction. In December

2022, Redwood was unsuccessful in the California auction and the goodwill was impaired.

Sale of shares in Rainpower

Aker Horizons sold its shareholding in Rainpower in May 2022, see more information in note 30

Discontinued operations.

Business combinations

Aker Horizons did not enter into any new business combinations in 2022. In 2021, Aker Horizons

completed three business combinations. Reference is made to note 27 Business combinations in

the 2021 Annual Report for information about these business combinations:

•Mainstream Renewable Power Ltd (see also information below)

•Development and Technology JSC (D&T) (see also information below)

•Rainpower Holding AS

Mainstream Renewable Power Ltd (Mainstream)

On 11 May 2021, Aker Horizons acquired 75 percent of the shares in Mainstream, a leading

independent renewable energy player with a global footprint, The cash consideration for the 75

percent stake in Mainstream was EUR 640 million. In addition, EUR 109 million was transferred

to Mainstream as a capital increase in the company, though this did not form part of the

consideration transferred.

Contractual assets was identified as the main intangible assets assumed in the business

combination and relate to portfolios of contracts necessary to operate the projects which have

reached Financial Investment Decision (FID) in the Mainstream portfolio (Andes Renovables

portfolio). In addition, goodwill was recognized both attributable to the Andes Renovables

portfolio (technical goodwill) and to Mainstream’s development pipeline combined with its global

organization. See note 11 Intangible assets and goodwill and note 12 Impairment for more

information.

Development and Technology JSC (D&T)

On 23 July 2021, Mainstream acquired 80 percent of the shares in D&T. D&T’s business consist

of development activities for the solar PV portfolios in Daknong province (“Projects”), including

three solar PV Projects in Daknong Province, Vietnam.

The cash consideration for the 80 percent stake in D&T was USD 5 million. In addition to the

consideration payable on closing, the share purchase agreement contained a contingent

consideration payable to selling shareholders.The earn-out payment was initially calculated on

the basis of MWs awarded as an amount per MW and capped at USD 23 million. The estimated

earn-out liability was USD 16.8 million as of 31 December 2021, but has been reduced by USD

8.3 million in 2022 due to recent development in renewable energy market in Vietnam. The

amount has been recognized in Other income.


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30 Discontinued operations

On 10 May 2022, Aker Horizons sold its subsidiary Rainpower to Aker Solutions Holding ASA.

The agreed consideration consists of two elements: a fixed element of NOK 100 million and a

discretionary element of up to NOK 50 million. The fixed element was agreed to be settled by

transfer of NOK 5,681,818 shares in Aker Carbon Capture ASA.

Rainpower has been a separate operating and reporting segment prior to the disposal and

represented a major line of business in Aker Horizons. Accordingly, Rainpower is presented as

discontinued operations in the income statement following the disposal. The comparative

statement of profit and loss has been restated to show the discontinued operations separately

from continued operations.

Aker Horizons has recognized a gain of total of NOK 73 million related to transaction. The gain is

included in Profit (loss) from discontinued operations. The Group reported a negative adjustment

of NOK 100 million in equity attributable to parent, as the consideration received was an increase

in shareholding in the subsidiary Aker Carbon Capture (acquisition of subsidiary without change

in control).

The net profit and cash flows from Rainpower, presented as discontinued operations are as

follows:

Results from discontinued operations


Amounts in NOK million	2022	2021

Revenue	113	257
Operating expenses	(150)	(351)
Financial items	(4)	(7)
Profit (loss) before tax	(41)	(101)
Tax expense	—	(1)
Profit (loss) for the period	(41)	(102)
Gain (loss) on sale of subsidiary	73	—
Net profit (loss) for the period	32	(103)

Earnings (loss) per share discontinued operations attributable to ordinary equity holders of the company	0.05	(0.19)

Cash flow from discontinued operations


Amounts in NOK million	2022	2021

Net cash flow from operating activities	(27)	(170)
Net cash flow from investing activities1	(1)	2
Net cash flow from financing activities2	11	34
Net cash flow discontinued operations	(18)	(134)

1) Amount includes cash position at disposal (2022) and acquisition (2021)

2) Amount does not reflect internal funding of the company

Effect of disposal on the financial position of the Group


Amounts in NOK million	At disposal

Intangible assets	188
Right-of-use assets	63
Property, plant and equipment	4
Current operating assets	129
Cash and cash equivalents	11
Interest-bearing liabilities	(100)
Lease liabilities	(65)
Deferred tax liabilities	(10)
Other liabilities	(178)
Equity	41


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31 Subsidiaries

Accounting principles

The consolidated statements include all entities controlled by Aker Horizons ASA. Control exists

when the company has the power, directly or indirectly, to govern the financial and operating

policies of an entity so as to obtain benefits from its activities. The financial statements of the

subsidiaries are included in the consolidated financial statements from the date control

commences until the date control ceases.

Judgments and estimates

Judgment is applied when considering whether Aker Horizons’ ownership in other companies is

sufficient to give it control according to IFRS 10. The primary consideration is whether Aker

Horizons is able to control the outcome of voting at the companies' general meetings.

Aker Horizons ownership in Aker Carbon Capture is 43.3 percent (increased from 42.3 percent in

2021). After careful consideration, Aker Horizons has concluded that control exists. The main

reason is based on the ownership interests of Aker Horizons relative to the remaining

shareholders. In total, investors representing over 75 percent of outstanding shares would need

to vote together, against Aker Horizons, in the general assembly. The shareholders in Aker

Carbon Capture are constituted by a diversified group of investors, where investors with an

ownership interest in excess of 1 percent (excluding Aker Horizons) controls 25 percent, and the

total amount of investors with an ownership interest below 1 percent are approximately 24

thousand. Based on an overall assessment, the conclusion is that Aker Horizons has control of

Aker Carbon Capture.

Subsidiaries

The Group’s consolidated financial statements include the financial statements of Aker Horizons

ASA and all of its subsidiaries, the principal of which are listed below. If not stated otherwise,

ownership equals the percentage of voting shares.


		Ownership
Company	City/Country	2022	2021

Principal subsidiaries Aker Carbon Capture
Aker Carbon Capture ASA	Bærum, Norway	43.3%	42.3%
Aker Carbon Capture Norway AS	Bærum, Norway	43.3%	42.3%

Principal subsidiaries Mainstream
Andes Mainstream SpA	Santiago, Chile	58.4%	75.0%
AR Alena SpA	Santiago, Chile	58.4%	75.0%
AR Alto Loa SpA	Santiago, Chile	58.4%	75.0%
AR Cerro Tigre SpA	Santiago, Chile	58.4%	75.0%
AR Escondido SpA	Santiago, Chile	58.4%	75.0%
AR Llanos del Viento	Santiago, Chile	58.4%	75.0%


		Ownership
Company	City/Country	2022	2021
AR Pampa SpA	Santiago, Chile	58.4%	75.0%
AR Puelche Sur SpA	Santiago, Chile	58.4%	75.0%
AR Tchamma SpA	Santiago, Chile	58.4%	75.0%
AR Valle Escondido	Santiago, Chile	58.4%	75.0%
Condor Energía SpA	Santiago, Chile	58.4%	75.0%
Condor Inversiones Spa	Santiago, Chile	58.4%	75.0%
Copihue Energía SpA	Santiago, Chile	58.4%	75.0%
Huemul Energía SpA	Santiago, Chile	58.4%	75.0%
Huemul Inversiones SpA	Santiago, Chile	58.4%	75.0%
International Mainstream Renewable Power Ltd	Dublin, Ireland	58.4%	75.0%
Mainstream Renewable Power Group Finance Ltd	Dublin, Ireland	58.4%	75.0%
Mainstream Renewable Power Group Treasury Ltd	Dublin, Ireland	58.4%	75.0%
Mainstream Renewable Power Mezzanine Finance DAC	Dublin, Ireland	58.4%	75.0%
Mainstream Renewable Power Offshore Holdings Ltd	Dublin, Ireland	58.4%	75.0%
Activity Company	Dublin, Ireland	58.4%	75.0%
Luxembourg Mainstream Renewable Power S.à r.l	Luxembourg	58.4%	75.0%
Aker Mainstream Renewables AS	Bærum, Norway	58.4%	75.0%
Aker Offshore Wind AS1	Bærum, Norway	58.4%	51.0%
Aker Offshore Wind Operating Company AS	Bærum, Norway	58.4%	51.0%
MRP Asia Holdings Pte Ltd	Singapore	58.4%	75.0%
MRP Dak Nong Holdings 2 PTE LTD	Singapore	58.4%	75.0%
Mainstream Asset Management South Africa (Pty) Ltd	Capetown; South Africa	58.4%	75.0%
Denef Investments S.L.	Madrid, Spain	58.4%	75.0%
Development and Technology JSC	Hanoi City, Vietnam	46.7%	60.0%

Principal other holdings
Aker Horizons Asset Development Holding AS2	Bærum, Norway	100.0%	77.2%
Aker Horizons Asset Development AS3	Bærum, Norway	100.0%	77.2%
Aker Narvik Holding AS4	Bærum, Norway	100.0%	100.0%
Aker Narvik AS5	Narvik, Norway	80.0%	—%
Powered Land AS	Narvik, Norway	80.0%	—%
Aker Horizons Holding AS	Bærum, Norway	99.8%	99.8%

Disposals6
Rainpower Holding AS	Lillestrøm, Norway	—%	100.0%
Rainpower Kristinehamn AB	Kristinehamn, Sweden	—%	100.0%

1) Merged entity AH Tretten AS and Aker Offshore Wind AS, see note 29 Changes in group structure

2) Merged entity AH Seksten AS and Aker Clean Hydrogen AS, with subsequent name change. See note 29 Changes in group

structure

3) Changed name from Aker Clean Hydrogen Operating Company AS

4) Changed name from Aker Narvik AS

5) Changed name from Aker Land AS

6) See note 30 Discontinued operations


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32 Non-controlling interests

Accounting principles

Non-controlling interests (NCIs) are measured on initial recognition at their portion of fair values, and annual earnings are allocated to the NCI according to their ownership interest. In a business

combination, minority interests are measured at the net value of identifiable assets and liabilities in the acquired company or at fair-value including a goodwill element. The method of measurement is

decided individually for each acquisition.

The following table summarizes the information relating to each of the Group’s subsidiaries that has material NCI, before any intra-group eliminations. The amounts disclosed in the table are before intra-

group eliminations.


	Aker Carbon Capture3		Aker Offshore Wind		Aker Clean Hydrogen		Mainstream
Amounts in NOK million	2022	2021	20222	2021	20222	2021	20221	20211

NCI Percentage	56.7%	57.7%	49,0%	49,0%	22,8%	22,8%	41.6%	25.0%

Income statement
Revenue and other income	781	363	19	14	7	14	1,784	761
Profit	(203)	(192)	(194)	(344)	(163)	(160)	(5,632)	(685)
OCI	6	—	44	35	—	—	3,277	134
Total comprehensive income	(198)	(192)	(150)	(309)	(163)	(160)	(2,354)	(551)
Profit allocated to NCI	(116)	(100)	(95)	(169)	(37)	(36)	(2,328)	(171)
OCI allocated to NCI	3	—	21	17	—	—	1,266	33

Balance sheet
Non-current assets	128	33		292		87	22,852	20,044
Current assets	1,168	1,577		316		2,741	8,047	6,079
Non-current liabilities	(3)	(9)		(7)		(4)	(14,432)	(13,087)
Current liabilities	(415)	(525)		(81)		(50)	(2,329)	(2,495)
Net assets	879	1,076		520		2,774	14,139	10,541
Net assets attributable to NCI	499	621		255		632	5,895	2,673

Cash flow
Cash flows from operating activities	(118)	57		(261)		(138)	(2,887)	(892)
Cash flows from investment activities	(105)	(13)		(29)		(791)	(1,929)	(10,333)
Cash flows from financing activities	(9)	820		(6)		2,932	6,181	12,655
Net increase (decrease) in cash and cash equivalents	(232)	864		(296)		2,003	1,365	1,430

1) 2021 reflects income statement after acquisition of the company in Mai 2021. 2022 Includes Aker Offshore Wind from 1 August 2022. See note 29 Changes in group structure for further description.

2) On 17 June 2022, Aker Horizons completed mergers with its subsidiaries Aker Clean Hydrogen and Aker Offshore Wind following the delisting of the companies, see note 29 Changes in group structure.

3) See note 31 Subsidiaries for assessment related to control assessment of Aker Carbon Capture.


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33 Capital commitments, guarantees and contingencies

The Group is party to off-balance sheet arrangements that are reasonably likely to have current

or future material effect on the Group’s financial position, operating results, liquidity, capital

expenditure or capital resources.

The following items are not recognized in the Group's balance sheet:

Mainstream

In the ordinary course of business for a renewable energy developer, it is customary to provide

certain guarantees and commitments. Land bonds, grid bonds, bid bonds and performance

bonds are all customary bonds that must be put in place, but that are not expected to be drawn

on. See below for an overview of significant guarantees and commitments for Mainstream:

Guarantees

The Group has provided the following guarantees at 31 December 2022:

•Land ministry bonds to the total value of EUR 17.6 million, guaranteeing the performance of

land agreements for twelve Chilean projects in the Andes Renovables platform

•Grid agreement bonds for Alena Chilean project to the total value of EUR 5.1 million

guaranteeing the contract performance for sixteen Chilean projects

•Bid and performance bonds for five Chilean projects to the total value of EUR 19.6 million

guaranteeing performance of power purchase agreements entered into

•Other performance guarantees, all issued in the normal course of business for a total of EUR

1.4 million

•Cash backed guarantees are disclosed as part of restricted cash in Note 17 Cash

Other facilities

Mainstream has a trade finance facility (TFF) in place which is used to provide letters of credit

and performance bonds to support construction equity commitments for projects during

construction. The TFF lender group comprises DNB Bank, ABN, AMRO and a panel of

international sureties. The TFF is used for the Andes Renovables portfolio of projects and

guarantees Mainstream’s equity portion of the projects. This TFF facility is a guarantee facility

that will be utilized at the beginning of a project instead of equity and that will be replaced with

Mainstream’s equity towards the end of the construction phase. Construction equity guarantees

for EUR 150 million from the facility were in place at 31 December 2022. The facility is a non-

cash Senior Facility Agreement.

The Group has a bonding facility in place with Swiss Re, which is used to provide demand

payment and performance bonds to support group obligations globally. Guarantees to support

Mainstream’s Condor, Huemul and Cophiue portfolios role as generators under Chile energy

market regulations for CLP 35,000 million from the facility were in place at 31 December 2022.

These guarantees were partially supported with a 100 percent cash backed letter of credit for

USD 15 million to Swiss Re.

Legal claims

There are a small number of legal claims and exposures arising from the ordinary course of

business which may result in future settlements. These are all at a preliminary stage and

settlement will only be confirmed by future events. The Group has not provided for such amounts

in the financial statements and individual claims are not expected to materially affect the financial

statements.

Aker Carbon Capture

Aker Carbon Capture Norway AS has entered into a NOK 500 million Advance Payment

Guarantee facility. According to the advanced payment facility, Aker Carbon Capture has an

obligation to ensure that it has total cash and cash equivalents at least equal to 20 percent of

any outstanding guarantees under the guarantee facility, and, in any event, not less than NOK

100 million.

Capital commitments

The Group has the following commitments in place at 31 December 2022:


Amounts in NOK million	2022	Year(s) of payment

Andes Renovables portfolio in Chile:
Plant, transformer and grid connection agreements, Huemul	397	2023-2024
Plant, transformer and grid connection agreements, Copihue	1,235	2023-2024
Land rental agreements	629	2023-2050
Total Mainstream	2,262
Kvandal project (Narvik), primarily civil- and electrical works	270	2023
Total	2,532

In addition to the commitments listed in the table above, Aker Horizons Asset Development has

entered into a power purchase agreement for the Rjukan project with a local energy group. The

power purchase agreement will secure the Rjukan project with a 234 GW/h yearly base load of

power until 2031, with the first option for renewal at 1 January 2032 and a second option for

renewal at 1 January 2038.


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34 Related party transactions

Accounting principles

Related party relationships are those involving control (either direct or indirect), joint control or

significant influence. Related parties are in a position to enter into transactions with the company

that would not be undertaken between unrelated parties.

Aker Horizons ASA is the parent company, with control of the subsidiaries listed in Note 31

Subsidiaries. Any transactions between the parent company and the subsidiary are shown in the

separate financial statements of the parent company, and are eliminated in the consolidated

financial statements.

Related parties to Aker Horizons

Aker entities

The largest shareholder of Aker Horizons ASA is Aker ASA, through its subsidiary Aker Capital

AS, which in turn is controlled by Kjell Inge Røkke through TRG Holding AS and The Resource

Group TRG AS. The Resource Group TRG AS is the ultimate parent company of Aker Horizons

ASA. In this respect, all entities controlled by Aker ASA and entities which Kjell Inge Røkke and

his close family controls through The Resource Group TRG AS are considered related parties to

Aker Horizons ASA and referred to as “Aker entities” in this note.

Related parties to Aker

"Related parties to Aker" are other entities not controlled by Kjell Inge Røkke through Aker ASA,

TRG Holding AS or The Resource Group TRG AS, but where Aker entities have significant

influence over the reporting entities. This includes the associates Aker Solutions and Aker BP.

Associated companies and joint ventures

Aker Horizons also have a number of associated companies and joint ventures which are related

parties to the Group.

Directors and executive officers

The key management personnel of Aker Horizons include the Board of Directors and the

executive management team.

Summary of transactions and balances with significant related parties


Amounts in NOK million	Note	Aker entities	Related parties to Aker	Associates	Joint ventures
2022
Income statement
Revenues		—	32	10	9
Operating expenses		(87)	(330)	—	—
Interest income		—	—	3	—
Interest expense		(142)	(2)	—	—

Balance sheet
Trade and other receivables		—	1	257	174
Borrowings	20	(2,260)	(100)	—	—
Lease liabilities	21	—	(30)	—	—
Trade and other payables		(8)		—	(4)


Amounts in NOK million	Note	Aker entities	Related parties to Aker	Associates	Joint ventures
2021
Income statement
Revenues		—	4	5	22
Operating expenses		(40)	(302)	—	(1)
Interest income		—	—	496	—
Interest expense		(126)	—	—	—

Balance sheet
Trade and other receivables		3	3	4	158
Borrowings	20	(2,116)	—	—	—
Lease liabilities	21	—	(54)	—	—
Trade and other payables		(27)	(6)	—	—

Aker Horizons has transactions with related parties on a recurring basis as part of normal

business. Certain material related party transactions are set out in this note in more detail.


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Related party transactions with Aker entities

Aker Capital AS

Aker Horizons has an unsecured shareholder loan from Aker Capital AS in the amount of NOK

2,000 million. The shareholder loan has a tenor of 5 years without scheduled amortization, and

carries a 6 percent p.a. fixed interest. Under the shareholder loan, the Company may elect to

defer any interest payment (in whole or in part). In that case, all deferred interest shall

accumulate and remain outstanding until paid in full, at the latest on the maturity date. If any

interest is deferred, the interest rate for the principal amount will increase to 7 percent p.a. for as

long as any deferred interest is outstanding. Deferred interest will not accumulate any interest,

and the Company may elect when the deferred interest is paid (up until the maturity date). The

Company shall, however, pay any deferred interest prior to paying any dividend.

The shareholder loan is a subordinated loan, ranking pari passu with other subordinated debt of

the Company but is subordinated to senior debt of the borrower in the event of a default under

any of the Company’s financial arrangements. The book value of the loan as of 31 December

2022 was NOK 2,260 million, including accrued interest costs and net of transaction costs

(2021: NOK 2,116 million).

Aker ASA

The Group has entered into an IT service agreement with Aker ASA for the delivery of IT services

to the Group.

Cognite AS and Aize AS

The Group has entered into a multi-year cooperation with Cognite AS and Aize AS as part of the

agenda to invest in products, services and R&D with the intent of developing software and

associated processes to enable new ways of working along the entire value chain.

Related parties to Aker

Aker Solutions

•Global frame agreement: The Group signed in 2020 a global frame agreement with Aker

Solutions for provision of fabrication and technical services and personnel hire, with a five

year term, with option to renew for 3+3 years.

•Brevik CCS Project: In December 2020, Aker Carbon Capture awarded Aker Solutions a

contract for engineering, procurement and management assistance services to realize the

carbon capture plant at the Brevik cement factory in southern Norway.

•Office Lease Agreement: The Group has entered into a lease agreement with Aker

Solutions AS for office premises at Fornebu, Bærum. The contract expires in February 2024.

•Sale of Rainpower to Aker Solutions, see note 30 Discontinued operations for more

information

Aker BP

The Group has entered into a Cooperation Frame Agreement with Aker BP ASA in relation to the

decarbonization of oil and gas production assets with renewable power from offshore wind.

Associates and joint ventures

The Group provides services on demand to a majority of associates and joint ventures.

Mainstream has outstanding receivables from associates and joint ventures totaling NOK 431

million, including:

•Outstanding balance on Cornerstone Energy Development Incorporated at year end was

EUR 3.7 million (2021: EUR 2.6 million). The receivable is unsecured and carries interest at

8 percent

•Outstanding balance on Mainstream Phu Cuong Company Limited at year end was EUR

11.4 million (2021: EUR 9.7 million). The receivable is unsecured and carries interest at 2

percent

•Outstanding balance on Arven Offshore Wind Farm Hold Co Limited, a joint venture with

Ocean Winds, is GBP 20.4 million (2021: nil). The receivable is unsecured and interest is

SONIA + 3.6 percent margin.

Compensation to Executive Management and Board of Directors

Refer to further description about management compensation in the Management remuneration

Report available at Aker Horizons’ website.


Amounts in NOK thousand	2022	2021

Salaries and wages including holiday allowance	16,868	32,035
Social security contributions	2,732	4,759
Pension cost	382	376
Other employee benefits	59	82
Total	20,041	37,252


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35 Subsequent events

Project financing - Mainstream

Subsequent to the year end certain technical Events of Default in the Andes Renovables portfolio

have occurred relating to operational matters in the loan facilities customary for project finance

facilities of this nature. The Events of Default arise from conditions relating to the defined

Portfolio Completion Date “PCD” of the Condor portfolio, and other technical matters relating to

underlying construction contracts. All four projects have now achieved Commercial Operations

referred to as “COD” and are operating fully with requirements relating to certain administrative

documents specified under the loan documents with any material matters expected to be

satisfied in the near term. There are also other defaults relating to certain covenants and

documentation to be provided to the lenders.

Mainstream is in active dialogue with the banks relating to obtaining the necessary waivers and

approvals required to resolve the defaults. This dialogue is taking place at a time where there are

significant challenges in the Chilean energy market at present, as exemplified by two other

companies having notified Chile’s national electricity operator that they can no longer fulfil their

PPA contracts. Mainstream is actively pursuing further mitigation in relation to these, including

addressing the market inefficiencies with the regulator and Government through industry

associations and consulting with financial advisors on long term capital structure and strategic

and financial options.

An Event of Default occurring on the Condor, Huemul or Copihue facility causes a technical

cross default on the Ares mezzanine facility and if unresolved for a period of time, the Trade

Finance Facility. The cross defaults on the facilities are automatically resolved once the

respective portfolio is out of default. See more information about these facilities in Note 33

Capital commitments, guarantees and contingencies.

Sale of Lekela

In March 2023, Mainstream and Actis completed the sale of Lekela Power. The transaction will

generate net proceeds to Mainstream of approximately USD 90 million, subject to certain closing

adjustments, with the transaction valued at an enterprise value of approximately USD 1.5 billion.


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Aker Horizons ASA

Parent company accounts

Income statement

Balance sheet

Cash flow statement

Notes

1 Company information

2 Basis of preparation

8 Shareholders' equity

3 Operating expenses

4 Financial items

5 Tax

6 Investment in group companies

7 Cash pool

9 Borrowings

10 Financial risk management and financial instruments

11 Related party transactions

12 Shareholders


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Income statement

Statement for the year ended 31 December


Amounts in NOK million	Note	2022	2021

Salary and other personnel costs		(3)	(2)
Other operating expenses	4	(20)	(30)
Operating profit (loss)		(22)	(32)

Financial income		31	415
Financial expenses		(434)	(406)
Foreign exchange gain (loss)		6	(154)
Net financial items	4	(397)	(145)
Profit (loss) before tax		(420)	(177)

Tax benefit (expense)	5	—	—
Net profit (loss) for the period		(420)	(177)

Net profit (loss) for the period distributed as follows:
Retained earnings	8	(420)	(177)
Net profit (loss) for the period		(420)	(177)


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Balance sheet

Statement for the year ended 31 December


Amounts in NOK million	Note	2022	2021

Assets

Non-current assets
Investments in subsidiaries	6	21,441	20,118
Interest-bearing receivables	11	26	26
Total non-current assets		21,467	20,145

Current assets
Receivables on group companies	8, 11	310	441
Trade and other receivables		9	2
Cash and cash equivalents	7	368	422
Total current assets		687	865
Total assets		22,154	21,010


Amounts in NOK million	Note	2022	2021

Equity and liabilities

Equity
Share capital		690	610
Other paid-in capital		14,980	13,755
Other equity and retained earnings		(249)	170
Total equity	8	15,421	14,535

Non-current liabilities
Non current borrowings	9	6,023	5,781
Total non-current liabilities		6,023	5,781

Current liabilities
Current borrowings		27	22
Current borrowings from group companies	8, 11	676	656
Derivative financial instruments		—	2
Trade and other payables		8	14
Total current liabilities		710	694
Total equity and liabilities		22,154	21,010

Fornebu, 17 March 2023

Board of Directors and CEO of Aker Horizons ASA



Øyvind Eriksen	Kjell Inge Røkke	Lone Fønss Schrøder	Lise Kingo	Auke Lont	Kristian Røkke
Chair (non-independent)	Director (non-independent)	Director (independent)	Director (independent)	Director (independent)	CEO


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Cash flow statement

Statement for the year ended 31 December


Amounts in NOK million	Note	2022	2021

Profit (loss) before tax		(420)	(177)

Adjustment for:
Income from investment in subsidiaries		(10)	(408)
Accrued interest and foreign exchange		407	521
Changes in net current operating assets		(4)	5
Cash flows from operating activities		(27)	(59)
Interest received		3	3
Interest paid		(171)	(109)
Net cash flow from operating activities		(195)	(165)

Payments interest-bearing receivables on group companies		(116)	(100)
Proceeds interest-bearing receivables on group companies		116	—
Investment in subsidiaries		400	(9,093)
Proceeds from sale of shares		—	17
Net cash flow from investing activities		400	(9,176)

Proceeds from borrowings		—	4,560
Repayment of borrowings		—	(560)
Transaction costs, new borrowings		—	(115)
Change in overdraft cash pool	7	(238)	615
Share issue		—	5,573
Transaction costs, share issue		(27)	(159)
Net cash flow from financing activities		(265)	9,913
Net cash flow in the period		(59)	572

Effect of exchange rate changes on cash and cash deposits		5	(150)
Cash and cash equivalent at the beginning of the period		422	—
Cash and cash equivalent at the end of the period		368	422


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1 Company information

Aker Horizons ASA is the parent company and owner of Aker Horizons Holding AS and is

domiciled in Norway. On 1 February 2021, the Company was made available for trading on

Euronext Growth (Oslo) under the ticker AKH-ME, on 21 May 2021 the Company moved from

Euronext Growth (Oslo) to Oslo Stock Exchange (Oslo Børs). The Company now trades under

the ticker AKH.

Significant transactions

Delisting of Aker Offshore Wind and Aker Clean Hydrogen

On 17 June 2022, Aker Horizons completed triangular mergers with its subsidiaries Aker

Offshore Wind and Aker Clean Hydrogen following the delisting of the mentioned companies.

The mergers will strengthen Aker Horizons’ capacity to accelerate the energy transition and

maximize impact and value creation. See note 8 Shareholders' equity for more information.

2 Basis of preparation

The financial statements are presented in conformity with Norwegian Accounting Act and

Norwegian generally accepted accounting principles (NGAAP). Accounting principles for notes to

these financial statements are included in the relevant notes. For other accounting principles,

see below.

Functional currency and presentation currency

The parent company’s financial statements are presented in NOK, which is Aker Horizons ASA’s

functional currency. All financial information presented in NOK has been rounded to the nearest

thousand (NOK thousand), except when otherwise stated. The subtotals and totals in some of

the tables in these financial statements may not equal the sum of the amounts shown due to

rounding.

Foreign currency

Transactions in foreign currencies are translated at the exchange rate applicable at the date of

the transaction. Monetary items in a foreign currency are translated to NOK using the exchange

rate applicable on the balance sheet date. Foreign exchange differences arising on translation

are recognized in the income statement as they occur.

Classification

Current assets and current liabilities include items due within one year or items that are part of

the operating cycle. Other balance sheet items are classified as non-current assets/debts.

Measurement of receivables

Financial assets and liabilities consist of investments in other companies, trade and other

receivables, cash and cash equivalents and trade and other payables. Trade receivables and

other receivables are recognized in the balance sheet at nominal value less provision for

expected losses.

Cash flow statement

The statement of cash flow is prepared according to the indirect method. Cash and cash

equivalents include cash, bank deposits and other short-term liquid investments.

3 Operating expenses

Aker Horizons ASA has no employees and hence no salary or pension related costs. Group

management and staff are employed by the subsidiary Aker Horizons Holding AS. NOK 2.7

million has been allocated to payable fees to the Board of Directors for 2022 (2021: NOK 1.6

million, reflecting 8 months). More information about remuneration to and shareholding of CEO,

CFO and Board of Directors Refer in the Management remuneration Report available at Aker

Horizons’ website.

Other operating expenses relates mainly to costs related to fees related to restructuring

transactions, listing and audit.

See Note 6 Other operating expenses in the consolidated financial statements for information

about fees to auditors.


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4 Financial items

Accounting principles

Interest income and expenses include effects from using the effective interest rate method where

fees, interest paid, transaction costs and other premiums are deferred and amortized over the

life of the instrument.

Foreign exchange gains and losses arise upon settlement of monetary assets and liabilities that

are not hedged. Translation of assets and liabilities related to general financing of the entity are

included in financial items. Foreign exchange gains and losses also includes effects from

translating monetary assets and liabilities denominated in foreign currencies at the balance sheet

date. The profit or loss on foreign exchange forward contracts include effects from derivatives

that do not qualify for hedge accounting, embedded derivatives and the ineffective portion of

qualifying hedges.


Amounts in NOK million	2022	2021

Interest income from group companies	7	3
Income expense, external	12	3
Income from subsidiaries	10	400
Gain on sale of shares	—	8
Other financial income	2	1
Financial income	31	415

Interest expense to related parties	(142)	(124)
Interest expense, group companies	(15)	—
Interest expense, external	(278)	(254)
Other financial expenses	—	(28)
Financial expenses	(435)	(406)

Foreign exchange gain (loss)	6	(154)

5 Tax

Accounting principles

Tax expenses in the income statement comprise current tax and changes in deferred tax.

Deferred tax is calculated as 22 percent of temporary differences between accounting and tax

values as well as any tax losses carried forward at the year-end. Deferred tax assets are

recognized only to the extent it is probable that they will be utilized against future taxable profits.

Calculation of taxable profit (loss)


Amounts in NOK million	2022	2021

Profit (loss) before tax	(420)	(177)

Adjustments:
Group contribution without tax effect	(10)	(400)
Change in temporary differences	41	74
Permanent differences1	(17)	(177)
Taxable income (loss)	(405)	(680)

1) Permanent differences consist of transaction costs related to equity issues.

Overview of temporary differences


Amounts in NOK million	2022	2021

Convertible bond	(232)	(274)
Other	—	1
Total temporary differences	(232)	(273)
Tax loss carry forwards	1,086	680
Total temporary differences	854	407

Aker Horizons ASA has not recognized deferred tax assets related to tax loss carry forwards as

the Group is newly founded and has no history of taxable profits.


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Reconciliation of effective tax rate


Amounts in NOK million	2022	2021

Profit (loss) before tax	(420)	(177)
Income tax 22 percent	92	39

Adjustments:
Tax-exempted income	2	88
Tax on permanent differences	4	(37)
Temporary differences for which no deferred income tax assets was recognized	(98)	(90)
Tax benefit (expense)	—	—

6 Investment in group companies

Accounting principles

Investments in subsidiaries are measured at cost. The investments are written down to fair value

when the impairment is not considered to be temporary. Impairment losses are reversed if the

basis for the impairment is no longer present.

Dividends and other distributions from subsidiaries are recognized in the same year as they are

recognized in the financial statement of the provider. If the distributed dividend in the subsidiary

exceeds accumulated profits in the ownership period, the payment is treated as a reduction in

the carrying value of the investment.


Amounts in NOK million	Reg. office	Share capital	Number of shares held	Ownership	Book value

Aker Horizons Holding AS	Fornebu, Norway	754.3	752.9	99,8%	21,441

Aker Horizons Holding AS financial information (unaudited)


Profit (loss) for the year 2022	(104)
Equity as of 31 December 2022	18,158

7 Cash pool

Aker Horizons ASA is the owner of the cash pool system arrangements with DNB. The cash pool

systems cover holding companies within the Group and assure good control and access to the

Group’s cash. Participation in the cash pool is vested in the Group’s policy and decided by each

company’s board of directors and confirmed by a statement of participation. The participants in

the cash pool system are jointly and severally liable, and it is therefore important that Aker

Horizons as a group is financially viable and can repay deposits and carry out transactions. Any

debit balance on a sub account can be set-off against any credit balance. Hence, a debit balance

represents a claim on Aker Horizons ASA and a credit balance a borrowing from Aker Horizons

ASA.

The cash pool system had a net cash of NOK 368 million as of 31 December 2022 (2021: NOK

422 million).


Amounts in NOK million	2022	2021

Group companies deposits in the cash pool system	676	656
Group companies borrowing in the cash pool system	(300)	(41)
Aker Horizons ASA's net borrowings in the cash pool system	(8)	(192)
Cash in cash pool system	368	422


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8 Shareholders' equity

The share capital of Aker Horizons ASA is divided into 690,348,751 shares as of 31 December

2022 (609,736,165 as of 31 December 2021) with a nominal value of NOK 1. All issued shares

are fully paid. The shares can be freely traded.

Note 12 Shareholders provides an overview of the Company's largest shareholders.


Amounts in NOK million	Share capital	Other paid- in capital	Other equity	Retained equity	Total equity

Equity as of 1 January 2022	610	13,755	348	(177)	14,535
Share issue	81	1,242	—	—	1,322
Transaction costs, share issue	—	(17)	—	—	(17)
Profit (loss) for the period	—	—	—	(420)	(420)
Equity as of 31 December 2022	690	14,980	348	(597)	15,421

Share issue in 2022

On 17 June 2022, Aker Horizons completed a triangular merger with its subsidiaries Aker

Offshore Wind and Aker Clean Hydrogen following the delisting of the mentioned companies.

The merger plan included an all-stock merger in which existing shareholders in Aker Offshore

Wind received 0.1304 merger consideration shares in Aker Horizons, and existing shareholders

in Aker Clean Hydrogen received 0.2381 merger consideration shares in Aker Horizons. The

transactions resulted in issuance of 80,612,586 shares in total.

Other equity

Other equity comprises continuity differences from common control transactions and the equity

component of compound instruments.

9 Borrowings

Accounting principles

Interest-bearing borrowings are recognized initially at fair value less transaction costs.

Subsequent to initial recognition, interest-bearing borrowings are stated at amortized cost with

any difference between cost and redemption value being recognized in the income statement

over the period of the borrowings on an effective interest basis.

Overview of borrowings


Amounts in NOK million	Note	Currency	Nominal currency value	Maturity	Carrying amount

2022
Revolving Credit Facility		NOK	—	2024	(17)
Green bond		NOK	2,500	2025	2,501
Convertible loan		NOK	1,500	2026	1,307
Shareholder loan	11	NOK	2,000	2026	2,260
Total borrowings					6,050

- of which non-current					27
- of which current					6,023

2021
Revolving Credit Facility		NOK	—	2024	(41)
Green bond		NOK	2,500	2025	2,487
Convertible loan		NOK	1,500	2026	1,241
Shareholder loan	11	NOK	2,000	2026	2,116
Total borrowings					5,803

- of which non-current					22
- of which current					5,781

Revolving Credit Facility (RCF)

The Company has a multi-currency revolving credit facility for EUR 500 million that can be drawn

for general corporate purposes of the Group, including for the purpose of funding CapEx,

acquisition costs and expenses. The loan carries an interest rate of 3M NIBOR + 2.5 percent

margin p.a. The RCF includes customary financial covenants such as a maintenance-based loan

to value (LTV) covenant of 50 percent. Loan in the LTV covenant includes senior loans in Aker

Horizons ASA (not subordinated debt). The covenant also includes a minimum liquidity covenant,


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in the form of cash or undrawn facility, of NOK 200 million. As of 31 December 2022, the facility

was undrawn.

Green bond

In February 2021, the Company signed an unsecured green bond issue in an amount of NOK

2,500 million, with a tenor of 4 years, a bullet amortization and carry an interest rate of 3M

NIBOR + 3.25 percent margin p.a. The terms of the green bond issue include customary

financial covenants such as an incurrence-based loan to value covenant and a minimum liquidity

covenant of NOK 200 million, in line with the RCF described above.

Convertible loan

In February 2021, the Company issued an unsecured convertible bond in the amount of NOK

1,500 million with a tenor of 5 years, bullet amortization and 1.5 percent p.a. payment in kind

(PIK) interest. The bondholders may elect to convert the bonds to shares in the Company at any

time during the term of the bond issue at a conversion price which is 25 percent above the offer

price of NOK 35 per share in the private placement that took place in January 2021 in Aker

Horizons ASA. The bonds issued under the convertible bond issue ranks pari passu with other

subordinated debt of Aker Horizons but is subordinated to senior debt of the borrower in the

event of a default under any of Aker Horizons financial arrangements.

On initial recognition, the fair value of the the debt component of the convertible bond was

estimated to NOK 1,152 million and the residual of NOK 348 million was recognized as equity.

Shareholder loan

In January 2021, the Company entered into a subordinated loan agreement of NOK 2,000 million

with Aker Capital AS (see Note 34 Related party transactions in the consolidated accounts for

more information).

Overview of contractual maturities of financial liabilities

The overview includes estimated interest payments specified by category of liabilities.


Amounts in NOK million	Carrying amount	Contractual cash flow	6 months or less	6-12 months	1-2 years	2-5 years

2022
Revolving Credit Facility	(17)	65	21	22	23	—
Green bond	2,501	2,959	83	85	168	2,624
Convertible loan	1,307	1,616	—	—	—	1,616
Shareholder loan	2,260	2,706	—	—	—	2,706
Total	6,050	7,347	104	106	191	6,946

2021
Revolving Credit Facility	(41)	193	25	26	51	91
Green bond	2,487	2,884	51	52	102	2,679
Convertible loan	1,241	1,616	—	—	—	1,616
Shareholder loan	2,116	2,706	—	—	—	2,706
Total	5,803	7,399	76	77	153	7,093


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10 Financial risk management and financial instruments

Foreign exchange risk

Subsidiaries may enter into financial derivative agreements with the parent company to hedge

their foreign exchange exposure. Accordingly, derivatives from external banks are used to

mitigate the foreign exchange exposure from the financial derivative agreements with the

subsidiaries. Aker Horizons ASA has no currency contracts with subsidiaries as of 31 December

2022.

In addition, Aker Horizons ASA may have cash flow exposure with respect to its financial assets

and liabilities. Aker Horizons ASA may enter into financial derivative agreements to hedge these

potential cash flow exposures.

Currency exposure from equity investments in foreign currencies is only hedged when

specifically instructed by management.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of an asset or liability will

fluctuate because of changes in market interest rates. Aker Horizons’ interest rate exposure

mainly arises from external funding in bank and debt capital markets.

The Group manages this risk by borrowing at a fixed rate of interest as deemed appropriate.

Where Group borrowings are at a floating rate of interest, the Group will consider use of interest

rate swaps to achieve the desired fixed/floating ratio of the external debt. External debt in Aker

Horizons ASA as of 31 December 2022 has both floating and fixed interest rates. There are no

interest swaps derivatives related to these loans.

Credit risk

Credit risk is the risk of financial losses to the Company if a customer or counterparty fails to

meet contractual obligations. Credit risk relates to any loans to subsidiaries and associated

companies, hedging contracts, guarantees to subsidiaries and associated companies and

deposits with external banks. External deposits and hedging contracts are done according to a

list of approved banks and primarily with banks where the Company also have a borrowing

relationship.

Liquidity risk

Liquidity risk relates to the risk that the Company will not be able to meet its debt and guarantee

obligations and is managed through maintaining sufficient cash and available credit facilities.

Development in the Group’s and thereby Aker Horizons ASA’s available liquidity, is continuously

monitored through weekly and monthly cash forecasts, annual budgets and long-term planning.

Liquidity reserve for Aker Horizons ASA and immediate holding companies as of 31 December

2022 was NOK 9.4 billion.

11 Related party transactions

Related party relationships are those involving control (either direct or indirect), joint control or

significant influence. Related parties are in a position to enter into transactions with the Company

that would not be undertaken between unrelated parties.

Transactions with related parties

Board of Directors and executive management

Information about remuneration to and shareholding of CEO, CFO and Board of Directors Refer

in the Management remuneration Report available on Aker Horizons’ website.

As part of the Management Incentive Program, the Company has provided loans for the

purchase of shares in Aker Horizons Holding AS. The loans are payable in 2024 and their book

value as of 31 December 2022 is NOK 26 million (2021: 26 million). Interest is calculated

according to the normal interest rate for the taxation of low-cost loans from an employer set by

Directorate of Taxes in Norway.

Receivables from group companies

The Company has provided short-term interest-bearing loans to Aker Offshore Wind AS during

2022, which were settled before 31 December 2022. Interest income of NOK 7.0 million on this

receivables has been recognized in the period. As of 31 December 2022, the Company has a

receivable on Aker Horizons Holding AS related to group contribution without tax effect,

amounting to NOK 10 million (2021: NOK 400 million).See Note 7 Cash pool for information

about cash pool system.

Loan from Aker Capital AS

The Company has a shareholder loan from Aker Capital AS. See further description in Note 9

Borrowings and also Note 34 Related party transactions in the consolidated financial statements

of Aker Horizons Group.

12 Shareholders

Shareholders with more than 1 percent shareholding per 31 December are listed below.


	2022		2021
Company	Number of shares held	Ownership	Number of shares held	Ownership

Aker Capital AS	464,285,714	67.3%	464,285,714	76.2%
Folketrygdfondet	20,440,806	3.0%	13,194,647	2.2%
The Bank of New York Mellon1	13,856,718	2.0%	23,671,125	3.9%
State Street Bank and Trust Company1	7,688,176	1.1%	13,611,576	2.2%

1) Nominee


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Declaration by the Board of Directors and CEO

The Board and CEO have today considered and approved the annual report and financial statements for Aker Horizons Group and its parent company Aker Horizons ASA for the year ended

31 December 2022. The Board has based this declaration on reports and statements from the Group’s CEO and/or on the results of the Group’s activities, as well as other information that is essential to

assess the Group’s position which has been provided to the Board of Directors.

To the best of our knowledge:

•The financial statements for 2022 for Aker Horizons Group and its parent company have been prepared in accordance with all applicable accounting standards.

•The information provided in the financial statements gives a true and fair portrayal of the Group and its parent company’s assets, liabilities, profit and overall financial position taken as a whole

as of 31 December 2022.

•The Board of Directors’ Report provides a true and fair overview of the development, profit and financial position of Aker Horizons Group and its parent company taken as a whole, as well as

the most significant risks and uncertainties facing the Group and the parent company.

Fornebu, 17 March 2023

Board of Directors and CEO of Aker Horizons ASA



Øyvind Eriksen	Kjell Inge Røkke	Lone Fønss Schrøder	Lise Kingo	Auke Lont	Kristian Røkke
Chair (non-independent)	Director (non-independent)	Director (independent)	Director (independent)	Director (independent)	CEO


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Alternative Performance

Measures

Aker Horizons discloses alternative performance measures in addition to

those normally required by IFRS, as such performance measures are

frequently used by securities analysts, investors and other interested

parties. Alternative performance measures are meant to provide an

enhanced insight into the Company’s operations, financing and future

prospects. These measures are calculated in a consistent and transparent

manner and are intended to provide enhanced comparability of the

performance from period to period.


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Definitions

EBITDA - Earnings before interest, tax, depreciation and amortization, corresponding to

“Operating profit before depreciation, amortization and impairment” in the consolidated income

statement.

EBIT - Earnings before interest and tax, corresponding to “Operating profit (loss)” in the

consolidated income statement.

CapEx - A measure of expenditure on PPE that qualify for capitalization.

Net current operating assets (NCOA) - A measure of working capital. It is calculated by trade

and other receivables and inventories minus trade and other payables, excluding financial assets

or financial liabilities related to hedging activities.

Net debt - Gross debt minus cash and cash equivalents, restricted cash and marketable

securities.


Net current operating assets (NCOA)
Amounts in NOK million	2022	2021

Trade and other receivables	1,577	1,319
Inventories	952	716
Trade and other payables	(2,110)	(2,974)
Net current operating assets (NCOA)	419	(939)


Net debt
Amounts in NOK million	2021	2020

Non-current borrowings	19,102	17,118
Current borrowings	871	446
Gross debt	19,973	17,564
Marketable securities	—	702
Restricted cash	2,076	2,071
Cash and cash equivalents	8,683	5,412
Total cash and marketable securities	10,759	8,185
Net debt	9,214	9,379


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Corporate Governance

Report 2022

Effective corporate governance provides the foundation for

responsible business conduct and value creation, which are

important goals for Aker Horizons. For a planet-positive

company, good corporate governance is a prerequisite for

success. It is therefore a key concern for Aker Horizons’

Board of Directors and employees, and informs the exercise

of ownership in Aker Horizons’ portfolio companies.


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Aker Horizons believes in active ownership. Shareholders with clearly defined strategic goals for

the Company who are involved through the boardroom and in direct dialogue with company

management promote shareholder value. Active ownership provides direction and purpose. Aker

Horizons’ main shareholder, Aker ASA (through its subsidiary Aker Capital AS) and the Aker

group’s ultimate owner, Kjell Inge Røkke, are actively engaged in Aker Horizons as owners.

Similarly, Aker Horizons is closely involved in the monitoring and follow-up of companies in which

Aker Horizons is the main shareholder. Aker Horizons’ management model is discussed in the

Board of Directors’ Report for 2022.

Pursuant to section 3-3b of the Norwegian Accounting Act and the recommendations in the

Norwegian Code of Practice for Corporate Governance, most recently revised in the autumn of

2021, the Board has reviewed and updated the Company’s corporate governance principles. The

individual recommendations of the Norwegian Corporate Governance Board (NUES) are

discussed below. Aker Horizons’ principles are largely consistent with the recommendations.

1. Corporate governance

This corporate governance report and Aker Horizons’ governance systems have been approved

by the Board. The purpose is to ensure a productive division of roles and responsibilities among

Aker Horizons’ owners, Board of Directors and executive management as well as satisfactory

control of the Company’s activities.

2. Business purpose

Aker Horizons’ business purpose is expressed in the Company’s Articles of Association: “The

company’s purpose is to, by itself or together with other parties, invest in and develop companies

and businesses within energy, climate and environmental solutions and infrastructure, and

associated technology, goods and services.” The Board has prepared clear goals, strategies and

a risk profile for the Company. The Company has guidelines for how it integrates the concern for

people, the planet and prosperity for all stakeholders into its value creation with a clear planet-

positive purpose. A Company Sustainability Policy has been established. In the Annual and

Sustainability Report, Aker Horizons describes how sustainability is integrated into Aker

Horizons’ investment and development processes, as well as ownership practices. Further, the

Annual and Sustainability Report includes reporting on progress on key topics. The Board

evaluates Aker Horizons’ targets, strategies and risk profile on an annual basis, at a minimum.

3. Equity and dividends

Equity

Aker Horizons Group had NOK 13,615 million in book equity as of 31 December 2022,

corresponding to an equity ratio of 36.5 percent. The parent company’s book equity amounted to

NOK 15,421 million, corresponding to an equity ratio of 70 percent. Aker Horizons considers its

capital structure appropriate and adapted to its objectives, strategy and risk profile.

Dividends

Aker Horizons has a clear long-term ambition to become a dividend-yielding company. To reach

its ambitions for contributing to global decarbonization and build scale at the operational level,

Aker Horizons will, in the short-term, continue to prioritize growth over dividends. Building scale

will enable self-sustained growth alongside dividend capacity, and is consequently seen as

critical to maximizing shareholder value ahead of initiation of dividends from portfolio companies.

Board authorizations

The Board’s proposals for board authorizations comply with the relevant recommendation in the

Norwegian Code of Practice for Corporate Governance. Board authorizations are limited to

defined issues and are dealt with as separate agenda items at the Annual General Meeting.

Board authorizations remain valid until the next Annual General Meeting.

4. Equal treatment of shareholders

Aker Horizons has a single class of shares, and all shares carry equal rights. Aker Horizons has

developed principles and guidelines for transaction agreements and other agreements not

forming part of ordinary operations involving Aker Horizons and companies in which Aker

Horizons has significant ownership interests. Additional information on transactions with related

parties can be found in Note 34 Related party transactions to the 2022 consolidated financial

statements.

5. Shares and negotiability

There are no restrictions on owning, trading or voting for shares in Aker Horizons ASA.

6. General meetings

Meeting notification, registration and participation

Aker Horizons encourages all its shareholders to participate in general meetings. Through the

general meeting, shareholders exercise the highest authority in the Company. Aker Horizons will

however, normally not have the entire board attend the meeting as this is considered

unnecessary. This represents a deviation from the Norwegian Code of Practice, which states that

arrangements shall be made to ensure participation by all directors.

The Annual General Meeting for 2023 will take place on 21 April. Shareholders unable to attend

a general meeting may use electronic voting to vote directly on individual agenda items during

the pre-meeting registration period. Shareholders unable to attend a meeting may also vote by

proxy. The procedures for electronic voting and the proxy voting instructions are described in the

meeting notification and published on the Company’s website.

Meeting chair, voting, etc.

According to Aker Horizons’ Articles of Association, the general meeting is chaired by the Chair

of the Board, or by an individual appointed by the Board Chair. In this regard, Aker Horizons


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deviates from the NUES recommendation, which states that the general meeting should be able

to elect an independent chair. In the Company’s experience, its procedures for the chairing and

the execution of general meetings have proven satisfactory.

The general meeting elects the members of the Nomination Committee and shareholder-elected

members of the Board of Directors. The Nomination Committee focuses on composing a Board

of Directors that works optimally as a team, and on ensuring diversity and that board members’

experience and qualifications complement each other, that required and important areas of

competence are covered by the Board and that statutory gender representation requirements are

met. This entails that the shareholders can only vote on the composition of the Board of Directors

as a complete set, and not on each board member separately. On this point, Aker Horizons’

practice differs from the NUES recommendation, which states that the general meeting should

be given an opportunity to vote on each individual candidate nominated for an appointment to a

company body.

7. Nomination Committee

Aker Horizons has a Nomination Committee as required by its Articles of Association. The

Nomination Committee must be comprised of at least two members, and each member is

normally elected for a two-year period.

The members and chair of the Nomination Committee are elected by the Company’s general

meeting, which also determines the remuneration payable to committee members.

The Company’s general meeting adopted instructions for the Nomination Committee’s operations

in April 2021.

The primary responsibilities of the Nomination Committee are to recommend candidates and

remuneration for the Company’s Board of Directors and Nomination Committee, and

remuneration for members of the Audit Committee.

Current members of the committee are Svein Oskar Stoknes, Chief Financial Officer of Aker

ASA, Aker Horizons’ main shareholder, and Ingebret Hisdal. Ingebret Hisdal is a former Deloitte

Partner and Auditor and currently a business consultant and member of several nomination

committees both in the Aker ecosystem and elsewhere. Svein Oskar Stoknes chairs the

committee. Shareholders who wish to contact the Nomination Committee can contact the

Company’s Investor Relations (IR) function as set out on its website.

8. Board of Directors – composition and independence

Pursuant to the Company’s Articles of Association, the Board comprises between three and nine

members. The majority of the shareholder-elected board members are independent of executive

personnel and material business contacts. A minimum of two are independent of the Company’s

main shareholder(s).

The nomination committee recommends candidates for and the composition of the Board for

approval by the general meeting. Neither the CEO nor any member of the executive

management is a member of the Aker Horizons Board of Directors. The Board’s current

composition is presented in the 2022 Annual and Sustainability Report, as are Board members’

qualifications and expertise, record of attendance, share ownership, membership in board

committees and independence considerations. The Company does not have a Corporate

Assembly.

9. The work of the Board of Directors

Aker Horizons’ Board of Directors has established board instructions that regulate areas of

responsibility, tasks and the division of roles between the Board, the Board Chair and the CEO.

The Board has adopted guidelines for related party agreements. Guidelines and procedures

have also been implemented to ensure that Board members and senior employees report any

directly or indirectly significant interests in agreements entered into by Aker Horizons or

companies in which Aker Horizons has significant ownership interests.

Aker Horizons has an Audit Committee. The Committee’s mandate regulates areas of

responsibilities, tasks, relations with the external auditor and reporting to the Board of Directors.

The composition of the Committee is presented in the 2022 Annual and Sustainability Report.

Aker Horizons has a remuneration committee consisting of the chairman of the board.

10. Risk management and internal control

Governing principles

The Board of Directors, supported by the Audit Committee, ensures that Aker Horizons has

procedures and systems for good corporate governance, effective internal control and robust risk

management. The Board establishes the overall principles for governance and control in Aker

Horizons ASA through the adoption of governing documents. For particularly important areas of

group-wide relevance, the Board ensures that governing documents are implemented in the

portfolio companies which are consistent with the framework of Aker Horizons’ relevant

governing documents. For example, Aker Horizons’ Code of Conduct expresses expectations

with respect to the portfolio companies’ respective codes of conduct. The same applies to

policies and procedures in key areas such as anti-corruption, sustainability, third party

management and business partner conduct. The Audit Committee reviews the Company’s

reporting systems, internal control and overall risk management on an annual basis.

Compliance function

Aker Horizons has established a Compliance function with dual reporting duties to the

Company’s General Counsel and the leader of the Audit Committee. The Chief Compliance

Officer’s main task is to ensure that Aker Horizons is compliant with relevant laws and

regulations, including Aker Horizons’ internal regulations, policies, procedures and guidelines.

This is done through the group-wide implementation of a risk-based compliance program. Aker


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Horizons’ Chief Compliance Officer works to contribute to effective information and knowledge

sharing between the various compliance departments in the Group.

Aker Horizons has implemented a whistleblowing channel for the reporting of illegal and

unethical conduct, such as potential breaches of ethical guidelines and violations of the law.

Information about the whistleblowing channel, including contact information, is available on the

Company’s website.

Risk management

Aker Horizons and its portfolio companies are exposed to a variety of risks. The Board carries

out a quarterly review of the Company’s most important areas of exposure to risks throughout

the portfolio. Prior to the quarterly enterprise risk reporting to the Board, the Audit Committee

reviews the reported main risks and relevant risk mitigating measures. Once a year, the climate-

related financial risk analysis and the sustainability materiality analysis are presented to the Audit

Committee and Board.

Aker Horizons’ process for enterprise risk management is based on the assessment and

monitoring of major financial, strategic, market and regulatory, legal and compliance, project and

operational, and climate-related risk factors. These include group level risks as well as risks

related specifically to the portfolio companies’ operations. Mitigating actions are identified for key

risks and their implementation is monitored.

Aker Horizons considers risk assessment to be a natural part of all business operations and

works continuously to identify and address risks. Management of project and operational risk lies

primarily with the portfolio companies, but Aker Horizons monitors and follows up risk through its

regular dialogue with the portfolio companies’ managements and participation on their boards.

Aker Horizons has adopted and implemented a risk management procedure in 2022.

Internal control in financial reporting

The Aker Horizons’ financial reporting division reports to the Chief Financial Officer and is

responsible for the external reporting process and the internal management of the financial

reporting process. This includes assessing financial reporting risks and internal controls over

financial reporting in the Group.

Aker Horizons has established a procedure for internal control over financial reporting (ICFR)

that is under implementation in all major companies in the Aker Horizons group. The procedure

requires annual risk assessment, mapping/implementation of key controls, and processes for

monitoring that key controls are performed as intended. The procedure creates a framework for

more targeted and consistent work with ICFR. Experience so far shows that the companies are

making headway in this area.

In connection with the process of preparing Aker Horizons’ financial statements, clearing

meetings are held with the management teams of each portfolio company. The main purpose of

these meetings is to ensure the quality of the financial reporting. The clearing meetings focus on

significant valuation items, off-balance sheet items, significant non-recurring transactions, new or

modified accounting principles, internal control in financial reporting, and special topics in the

annual report.

The Audit Committee prepares a preliminary review of the quarterly and annual financial

statements, focusing on items involving valuation items and the application of new accounting

principles, as well as any material related-party transactions.

In the process of preparing Aker Horizons’ annual sustainability reporting, meetings are held with

portfolio holdings to ensure the quality of the sustainability reporting. The Audit Committee also

conducts a preliminary review of the annual sustainability reporting. A summary of Aker Horizons’

human rights due diligence and related efforts pursuant to the Transparency Act is included in

the Sustainability Report. A full account of due diligence pursuant to the Transparency Act will, as

required by the Act, be published on Aker Horizons’ website by 30 June 2023.

11. Board remuneration

Board remuneration reflects the Board’s responsibilities and expertise, time spent and the

complexity of the business. Remuneration does not depend on Aker Horizons’ financial

performance, and there are no option programs for any of the board members. The Annual

General Meeting determines board remuneration after considering recommendations from the

Nomination Committee. The Board members representing associated companies are not

compensated. Information on the remuneration paid to individual board members for 2022 can

be found in the Remuneration Report.

12. Remuneration of executive management

The Board has adopted separate guidelines on the remuneration of executive management in

accordance with section 6-16a of the Norwegian Public Limited Liability Companies Act as by the

annual general meeting in 2022.

The CEO’s employment contract has been approved by the Board. The remuneration paid to the

CEO is approved by the Board after considering recommendations from the Board Chair. The

CEO determines the remuneration payable to other key executives in consultation with the

Chairman of the Board, in accordance with board guidelines. Aker Horizons has no stock option

programs. The remuneration for executive management includes a fixed annual salary, a

variable pay element and other benefits such as standard employee pension and insurance

schemes. Aker Horizons had a share purchase program for employees in combination with its

listing in May 2021. The details of the share purchase program are discussed in more detail in

the listing prospectus dated 19 May 2021. Further information on the remuneration of individual

members of Aker Horizons’ executive management in 2022 can be found in a separate report

prepared in accordance with section 6-16b of the Norwegian Public Limited Liability Companies

Act. Some members of Aker Horizons’ executive management represent the Company’s


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interests as members of the boards of other Aker companies. They do not receive personal

remuneration for these board positions.

13. Information and communication

Aker Horizons’ reporting of financial, sustainability and other information is based on

transparency and equal treatment of stakeholders. All stock exchange notifications and press

releases are published on the Company’s website, www.akerhorizons.com. Stock exchange

notices are also available at www.newsweb.no. The Company organizes presentations in

connection with its financial reporting. These meetings are generally broadcast directly via the

internet (webcast). The Company’s financial calendar is published on Aker Horizons’ website.

14. Takeover

Aker Horizons does not have separate guidelines on how to respond in the event of a takeover

bid. The Norwegian Code of Practice for Corporate Governance recommends the adoption of

such guidelines. Through its indirect majority ownership, Aker ASA (through its subsidiary Aker

Capital AS) controls 67.25 percent of the Company. Aker ASA is privately held by TRG holding

companies, which gives Kjell Inge Røkke effective control of 68.2 per cent of Aker Capital stock.

In view of this, the Board has deemed separate takeover guidelines as recommended by the

Code of Practice to be unnecessary.

15. Auditor

The auditor makes an annual presentation of the auditing plan to the Board. Further, the auditor

has provided the Board with written confirmation that the requirement for independence is met.

The auditor participates in all meetings of the Audit Committee and in the board meeting that

deals with the annual accounts. The auditor reviews, with the Board, any material changes in the

Company’s accounting principles and assessments of material accounting estimates. During

2022, there were no disagreements between the auditor and management on any material

issues. The auditor reports to the Audit Committee on its assessment of the internal controls on

the financial reporting process. The outcome of this review is presented to the Board. The Audit

Committee and the Board meet with the auditor on a regular and annual basis, respectively. The

Audit Committee receives annually an overview of services rendered by the auditor to the

Company. The Audit Committee also approves the fees paid to the auditor for material additional

services. The remuneration paid to the auditor in 2022 for both audit and other services is

presented in Note 6 to the consolidated financial statements. These details are also presented to

the Annual General Meeting.

16. Equality, diversity and inclusion

Aker Horizons has a Sustainability Policy that is approved by the Board of Directors, which

includes its commitments to equality, inclusion and diversity. Further, Aker Horizons focuses on

equality, diversity and inclusion throughout its business, with a long-term ambition of gender

balance at all levels, diversity in background, education, competence, inclusion of people with

disabilities and other factors The Company has developed guidelines for equality, diversity and

inclusion with respect to the composition of the governing bodies and executive management.

The goal of these guidelines is to ensure a strong corporate culture, driven by diversity in

thinking and actions, that leads to better decisions and creates long-term value for Aker

Horizons, other stakeholders and society at large. The guidelines can be accessed on Aker

Horizons’ website.

The current status of equality, diversity and inclusion in governing bodies, executive

management and the broader organizations of Aker Horizons and its portfolio companies is

described throughout this report, including in the Board of Directors Report and the Sustainability

Progress Report.


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Remuneration Report

2022

Introduction

This Remuneration Report has been prepared in accordance with the

Norwegian Public Limited Liability Companies Act section 6-16b and

describes the principles for and the actual remuneration vested by the

executive management in Aker Horizons ASA (“Aker Horizons” or the

“Company”) during 2022. The report is presented for advisory vote by the

Company’s annual general meeting to be held on 21 April 2023. Following

the vote, the Remuneration Report will be made available at the

Company’s website www.akerhorizons.com

The principles and framework for remuneration to the executives are set

out in the Executive Remuneration Guidelines for Aker Horizons (“the

Guidelines”), which was approved at the Company’s annual general

meeting on 22 April 2022 and is also available on the Company’s website.

The Guidelines are designed to attract and retain executives, to align

interests between executives and the Company’s shareholders, and to

encourage a strong and sustainable performance-based culture, which

supports the Company’s overall strategic ambitions and goals over time.


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Highlights

The key events for the financial year 2022 and Aker Horizons’ overall performance is

summarized in the Board of Directors’ Report of the Annual and Sustainability Report 2022. The

Annual and Sustainability Report is available on the Company’s website.

The financial year 2022 was a transformative year for Aker Horizons, characterized by a volatile

and uncertain macro environment. The Company took significant steps to reduce the complexity

of its portfolio and increase its robustness in the face of such uncertainty, e.g. through the sale of

all its shares in REC Silicon to Hanwha, the delisting of and mergers with Aker Clean Hydrogen

and Aker Offshore Wind, and the subsequent combination of Aker Offshore Wind with

Mainstream Renewable Power. Further, Aker Horizons secured Mitsui as a long term strategic

investor and partner in Mainstream Renewable Power.

Throughout the year, Aker Horizons continued to drive forward prioritized projects, maintain

focus and financial discipline, and develop industrial partnerships, thereby strengthening the

Company’s position as an early mover in key Net Zero segments including CCUS, offshore wind

and hydrogen.

The Company closed the year with a cash position of NOK 4.1 billion and total available

corporate liquidity of NOK 9.4 billion.

There were no changes to the executive management in 2022 and the executives pertinent to

the Guidelines include Chief Executive Officer (CEO) Kristian M. Røkke and Chief Financial

Officer (CFO) Nanna Tollefsen (the “Executive Management” or separately as each “Executive”).

The remuneration to the Executive Management for 2022 is in accordance with the principles set

out in the Guidelines. No deviations have been made from the approved Guidelines and no

remuneration was recovered from any of the Executive Management during 2022.

Total remuneration of the Executive Management

The total remuneration package for the Executive Management consists of a fixed salary,

variable pay and other benefits such as standard employee pension and insurance coverage.

The remuneration to the CEO is recommended by the Chairman of the Board and approved by

the Board of Directors on an annual basis, while the remuneration to the CFO is approved by the

CEO, in consultation with the Chairman, and informed to the Board of Directors on an annual

basis.

The table below shows the total remuneration awarded or due to the Executive Management for

2022.


Amounts in NOK thousand	Base salary	Fringe benefits1	Variable pay	Total remuneration	Pension expense2	Proportion fixed vs variable remuneratio n

Kristian Røkke, CEO	6,287	17	3,594	9,897	189	64/36
Nanna Tollefsen, CFO	2,620	42	2,246	4,908	193	54/46
Total	8,907	59	5,840	14,805	382

1) Fringe benefits include membership in the standard employee benefit scheme and disability insurance.

2) The executive management team participates in the standard pension and insurance schemes applicable to all employees.

Executive Management received no remuneration for directorships or membership of nomination

committees of other Aker companies. In 2022, Aker Horizons Holding AS invoiced a total of NOK

3.0 million for Kristian Røkke’s directorship on other Aker companies.


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Standard terms and remuneration components

In line with other Aker Horizons personnel, the Executive Management is offered standard

employment contracts with terms and conditions consistent with industry standards. The CEO’s

employment contract can be terminated on three months’ notice. In accordance with statutory

law, the Company may request the resignation of the CEO at its own discretion against a

severance payment equal to three months’ salary from the expiry of the notice period. The CFO

has a standard notice period of three months and no severance payment.

Fixed salary

The fixed salary to the Executive Management shall be in line with the market level for

corresponding jobs in the industry and be based on responsibilities, expertise, and performance.

The level of fixed salary is reviewed regularly, usually annually to ensure that it is set at the right

level. The fixed salary for the Executive Management in 2022 consisted of base pay and is

included in the table above. The base salary development for the Executive Management in

2022 was in line with the salary development of regular employees.

Variable salary

Variable remuneration to the CEO is recommended by the Chairman of the Board and approved

by the Board of Directors on an annual basis. The remuneration to the CFO is approved by the

CEO, in consultation with the Chairman of the Board, and informed to the Board of Directors of

Aker Horizons on an annual basis.

In 2022, the Executive Management participated in an annual variable pay program. The annual

variable pay program applicable to employees in the Company including the Executive

Management in 2022, comprised of two components;

a.50 percent related to delivery of certain key financial, operational, and strategic targets

(Company objectives)

b.50 percent related to delivery of personal performance objectives during the year

The annual variable remuneration is discretionary and for the CEO, the total variable pay from

the various schemes shall not exceed two thirds of the annual base salary. For the CFO, the total

variable pay from the various schemes shall not exceed 100 percent of the annual base salary.

The definition of the Company objectives and fulfillment assessment is subject to the Chairman

and Board of Directors’ approval and discretionary assessment. For the CEO, individual

objectives are approved and assessed by the Chairman. For the CFO, the individual objectives

are set and assessed by the CEO.

The main Company objectives used in assessing variable remuneration for the Executive

Management in 2022 included:

a.A streamlining of the portfolio and group structure, including the sale of the

shareholdings in REC Silicon and a combining of portfolio companies Aker Offshore

Wind and Mainstream Renewable Power

b.Securing funding for Mainstream

c.Securing value-enhancing partnerships for portfolio companies and projects

d.Net asset value development in 2022

Based on an overall assessment of the responsibilities, expertise and performance of the CEO,

and with a particular view to his role in the portfolio restructuring and the partnership entered into

with Mitsui, the 2022 variable remuneration for the CEO was set to NOK 3,208,500 excluding

holiday pay, which equates to 78 percent of the total maximum variable pay. The variable

remuneration for the CFO was set to NOK 2,005,313 excluding holiday pay, which equates to 78

percent of the total maximum variable pay.

Executives may be paid additional remuneration in extraordinary circumstances, provided that

such extraordinary arrangements are made only at an individual level and with the view to either

recruit or retain an executive, as compensation for extraordinary work beyond individual usual

duties or as part of a termination settlement. No such additional remuneration was awarded to

the Executive Management for 2022.

Share based remuneration

Executive Management may be offered to purchase shares in the Company or in affiliated

companies. Shares may be offered at maximum of 30 percent price reduction or additional

shares may be awarded, in exchange for accepting a defined lock-up period on the acquired

shares. No such share program was offered in 2022.

The Company does not offer the Executive Management any share options and has not granted

remuneration in the form shares, subscription rights, options, and other forms of remuneration

linked to shares or the development of the share price in the Company or in other companies

within the group in 2022.

Other benefits

The Executive Management participates in the collective pension and insurance scheme open to

all employees in the Company. Pension is based on a defined contribution plan and is capped at

12G for all employees including the Executive Management.

None of the Executive Management have performance-based pension plans, prepayments or

other forms of credit or guarantees from the Company except for the loans described below. The

Executive Management receives non-monetary benefits such as phones, broad band etc.

aligned with company practice. The Executive Management has loans from the Company related

to the share program offered in 2021. As of 31 December 2022, the loan balance was NOK 15.5

million for Kristian Røkke and NOK 3.1 million for Nanna Tollefsen. Interest rates on the loans

are equal to the prevailing interest rate for loans from an employer to employees as determined

by the Norwegian Ministry of Finance (“normrente”), and the loans are due on 1 March 2024.


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Comparative information on the change of remuneration and

company performance

The below table shows comparative information on the change of remuneration for each

executive since the Company was established in August 2020 in comparison with some selected

company performance measures and average remuneration for all employees (excluding

Executives). Total remuneration includes fixed and variable salary (including calculated holiday

pay) in each year for the relevant individuals and/or all employees. However, with some of the

variable salary being based upon individual achievement, and a variation of number of of

employees over time, the information below is not directly comparable.

Change of remuneration for each executive


	20202		20212		2022
Amounts in NOK thousand	Fixed	Total	Fixed	Total3	Fixed	Total
Kristian Røkke, CEO	3,921	3,921	6,123	24,834	6,303	9,897
Change			56.2%	533.4%	2.9%	-60.1%
Nanna Tollefsen, CFO1	n.a.	n.a.	2,597	5,120	2,662	4,908
Change					2.5%	-4.1%
Ola B. Fosse, CFO1	2,065	2,065	2,131	3,997
Change			3.2%	93.5%

1) Ola Beinnes Fosse was CFO until 1 May 2021 and Nanna Tollefsen has been CFO from 1 May 2021.

2) Annualized for Kristian Røkke and Ola Beinnes Fosse in 2020. Annualized for Ola Beinnes Fosse and Nanna Tollefsen in

2021. Comparatives for 2020 and 2021 have been restated to reflect holiday payment on an accrual basis.

3) Total includes extraordinary items of NOK 14.9 million to Kristian Røkke that was used to acquire shares in Aker Horizons

Holding AS as part of the incentive program described below.

Group performance


Amounts in NOK million	20201	2021	2022
Net asset value (NAV)	12,790	16,923	15,079
Change		32.0%	-11.0%

1) Net asset value (NAV) of NOK 12,790 million is per 1 February 2021 (time of listing of Aker Horizons).

Average remuneration for all employees (excluding Executives)


Amounts in NOK thousand	2020	2021	2022
Aker Horizons ASA employee	1,703	2,133	2,144
Change		25.2%	0.5%


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Compensation to the Board of Directors

The general meeting determines the compensation to the Board of Directors based on a

proposal from the Nomination Committee. At the 2022 ordinary general meeting, the Nomination

Committee proposed the compensation payable for the period between the 2022 ordinary

general meeting and the 2023 ordinary general meeting.

No agreements exist which entitles the Directors to any extraordinary compensation, except for a

consultancy agreement with Auke Lont. The consultancy agreement with Lont can be terminated

by either party by serving 30 days written notice. Lont receives a fixed annual fee of NOK

2,000,000 (excluding VAT) based on approximately two working days per week, which is

invoiced monthly. The consultant provides general advice related to the development of the

Company and its portfolio companies. Lont does not have signature rights and no authority to

sign any third-party agreements on behalf of the Company.

The fees in the table below represent expenses recognized in the income statement based on

assumptions about fees to be approved at the general assembly rather than actual payments

made. Unless explicitly stated below, members of the Board of Directors did not receive any

other fees than those listed in the table.


			2022		20214
Amounts in NOK thousand		Share- holding	Audit Committee fees	Board fees	Audit Committee fees	Board fees

Øyvind Eriksen1,2	Chairperson	285,714		—		—
Kjell Inge Røkke 1,3	Director			—		—
Lone Fønss Schrøder	Director		187	320	120	207
Lise Kingo	Director		108	320	69	207
Auke Lont	Director			320		129
Lene Landøy1	Deputy			—
Total			294	960	189	543

1) The fees allocated to Øyvind Eriksen, Kjell Inge Røkke and Lene Landøy will, as per Aker policies, be paid to their

respective employer companies. Fee for Chairperson Øyvind Eriksen is NOK 620 thousand in 2022 (2021; NOK 400

thousand), for Director Kjell Inge Røkke is NOK 320 thousand (2021: 207 thousand) and for Deputy Lene Landøy (NOK 159

thousand) (nil in 2021)

2) Owns shares in Aker Horizons ASA through Erøy AS

3) Kjell Inge Røkke’s minor son, Normann Eidsvig Røkke, owns 2,500 shares

4) Period in 2021 is from May to December (August to December for Auke Lont)

Aker Horizons’ Board of Directors does not include any employee representatives.

Audit Committee

Aker Horizons has an Audit Committee comprising two of the directors, which held seven

meetings in 2022. As of 31 December 2022, the Audit Committee comprises Lone Fønss

Schrøder (chair) and Lise Kingo.

Nomination committee

Current members of the nomination committee are Svein Oskar Stoknes (chair) and Ingebret

Hisdal. The chair of the nomination committee receive an annual compensation of NOK 52,000

and other members receive NOK 42,000.


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Transparent Reporting

Frameworks

For Aker Horizons, transparency is a foundation for building

trust with its stakeholders. To provide the most

comprehensive and holistic overview, Aker Horizons has

adopted complementary, well-established international

reporting frameworks and complies with relevant laws and

regulations.

Aker Horizons’ 2022 annual report is an integrated report,

presenting the financial, environmental, social and

governance (ESG) performance of Aker Horizons and its

portfolio companies, for the period 1 January 2022 to 31

December 2022. The report was published on 23 March

2023. For any questions or queries related to this report,

please contact:

•Marianne Stigset, Director of Communications and

External Affairs

(marianne.stigset@akerhorizons.com)

•Christian Yggeseth, Director of Investor Relations

(christian.yggeseth@akerhorizons.com

•Selma Skov Høye, Sustainability Director

(selma.hoye@akerhorizons.com)

Global Reporting Initiative Standards 2021 (GRI)

The ESG part of the report has been prepared with reference

to the new Global of Aker Horizons’ material impacts across

the environmental, social and governance spectrum.

Corporate Sustainability Reporting Directive (CSRD)

and double materiality

At the end of 2022, Aker Horizons conducted an independent

sustainability materiality assessment, which included the

activities of its portfolio companies. The materiality

assessment has been conducted as described in the EU’s

upcoming Corporate Sustainability Reporting Directive

(CSRD). The adopted approach follows the concept of double

materiality which acknowledges that businesses should

assess both the risk and opportunities linked to ESG topics

that can influence enterprise value creation (“outside-in”) and

the ESG impacts that a company can have on the planet and

society (“inside-out”). Impact materiality and financial

materiality assessments are interrelated, and Aker Horizons

has considered the interdependencies between these two

dimensions of its impacts in the performance of the materiality

assessment.

A detailed list of updated material topics can be found in the

Materiality Assessment chapter.

World Economic Forum Stakeholder Capitalism Metrics

Aker Horizons supports the World Economic Forum's (WEF)

Stakeholder Capitalism Metrics and the disclosures contained

within the report are aligned with the WEF’s 21 core metrics.

The four WEF themes Planet, People, Prosperity and

Governance serve in this report as an overarching framework.

Sustainable Development Goals

The UN Sustainable Development Goals (SDGs) are the

world’s shared goals for a sustainable future. Aker Horizons

has identified eight priority SDGs where the Company can

exert the greatest positive impact.

Greenhouse Gas Protocol (GHG Protocol)

The Greenhouse Gas Protocol is the most widely used

international accounting methodology to quantify and manage

businesses’ greenhouse gas emissions. Aker Horizons’

carbon footprint reporting on direct and indirect GHG

emissions aligns with the three scopes defined in the GHG

Protocol.

Norwegian Transparency Act

Aker Horizons will publish a full account of of its due diligence

by 30 June, in line with the requirements of the Norwegian

Transparency Act. However, this report provides a status

update on the Company’s compliance with the Act and its

broader work on human and labor rights. The due diligence

account will be published on the sustainability pages of Aker

Horizons’ website.

Task Force on Climate-related Financial Disclosures

(TCFD)

Additionally, as a reflection of Aker Horizons’ climate-related

risk and opportunities management, the Company reports in

accordance with the Task Force on Climate-Related Financial

Disclosures (TCFD) framework. A complete climate-related

assessment can be found in the appendix to this report.


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International Financial Reporting Standards (IFRS)

Aker Horizons' consolidated financial statements have been

prepared in accordance with International Financial Reporting

Standards (IFRS) and associated interpretations by the EU as

of 31 December 2022, and Norwegian disclosure

requirements pursuant to the Norwegian Accounting Act as of

31 December 2022.

EU Taxonomy

The EU Sustainable Finance package of regulations is

relevant for Aker Horizons. The EU Taxonomy Regulation,

defining what may be classified as green economic activity, is

a regulation and framework relevant for Aker Horizons’

business activities. Although the EU Taxonomy Regulation

was not in force in Norway in 2022, Aker Horizons is using the

framework and, accordingly, discloses its share of Revenue,

Operational Expenditures and Capital Expenditures on a

voluntary basis. Further details concerning the approach may

be found in the section Sustainability Accounting Principles

and Methodology.

Sustainable Finance Disclosure Regulation (SFDR)

The Sustainable Finance Disclosure Regulation and its

Principal Adverse Impact indicators are not applicable to Aker

Horizons. Nevertheless, Aker Horizons chooses to report on

its core indicators, as a matter of good practice, as they are

relevant to many of Aker Horizons’ shareholders.

Norwegian Accounting Act

The Corporate Governance Report presents Aker Horizons’

corporate governance principles and practices in accordance

with the requirements of the Norwegian Accounting Act and

the Norwegian Code of Practice for Corporate Governance.

The report also covers the sustainability reporting requirement

under Norwegian Accounting Act (section 3-3c). More

information about the Board’s composition and approach to

ESG governance can be found in the Board of Directors’

Report and the Corporate Governance Report.

Report boundaries

The report covers Aker Horizons and companies in its

portfolio. Where the report refers to the “Group” or “Group

Companies,” this includes Aker Horizons’ financially-

consolidated investees Aker Carbon Capture, Aker Horizons

Asset Development and Mainstream Renewable Power

(Mainstream Renewable Power or Mainstream). The term

“portfolio companies” also includes Supernode.

Please refer to the section Aker Horizons in Brief or the

Company’s website www.akerhorizons.com for more

information about Aker Horizons and its portfolio.


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Sustainability Accounting Principles and Methodology

Greenhouse gas emissions calculations

The Greenhouse Gas Protocol (GHG Protocol) is the most widely-used international accounting

methodology to quantify and manage businesses’ greenhouse gas emissions. Aker Horizons’

reporting on direct and indirect GHG emissions is done according to the GHG Protocol’s three

scopes. By using acknowledged emission factors, consumption data is recalculated into CO₂

emissions. According to the GHG Protocol, Scope 2 emissions relating to electricity are

calculated using both location-based and market-based emission factors.

Aker Horizons reports according to the financial control approach. This differs from 2021.

Financially controlled investees are now included in Aker Horizons’ own emissions (Scope 1-3

line by line). Equity accounted investees are included in Aker Horizons’ Scope 3 Category 15 -

Investments. Currently, Mainstream Renewable Power collects and reports data on an

operational control basis. This will be further aligned in the future, but figures reported are not

deemed to deviate extensively from what would be the case under the consistent application of

the financial control approach.

Aker Horizons has close dialogue with Group companies on the reporting of greenhouse gas

emissions. Across all scopes, underlying data on physical consumption (in units of for instance

liters, tonnes, or MWh) was received. Methodologies for calculating Scope 3 emissions were in

2022 not closely coordinated across the Group due to differences in the available data, as well

as the location and maturity of the operations. This is on the agenda for future reporting.

Aker Horizons’ total emissions in 2022 came to 27,810 tonnes (location-based) and 27,938

tonnes (market-based).

Scope 1

Aker Horizons’ Scope 1 emissions in 2022 totaled 772 tonnes CO2e. This relates predominantly

to emissions deriving from Mainstream Renewable Power’s consumption of diesel and petrol as

well as some leakage of SF-6 gas.

Scope 2

Aker Horizons’ Scope 2 emissions in 2022 totaled 5,576 tonnes (location-based) and 5,690

tonnes (market-based).

For Scope 2, Aker Horizons Holding and Aker Horizons Asset Development report electricity,

district heating and cooling. Guarantees of origin were not purchased for electricity, which is

reflected in the Scope 2 market-based emissions.

The approach to calculating office-based emissions was coordinated across the Aker Horizons

Group (such as emissions from heating/cooling). The same applies to sources for emission

factors.

Scope 3

Aker Horizons’ Scope 3 emissions in 2022 totaled 21,462 tonnes (location-based) and 21,476

tonnes (market-based).

As described above, the methodologies used to calculate Scope 3 emissions were in 2022 not

closely coordinated across the Group, due to differences in available data, as well as the location

and maturity of the operations.

There was also some divergence with respect to the categories reported on.

•Aker Carbon Capture reported on Category 1 - Purchased goods and Services,

Category 3 - Fuel and energy (both location-based and market-based), Category 4 -

Upstream Transportation and Distribution, Category 5 - Waste, and Category 6 -

Business travel.

•Mainstream Renewable Power reported on Category 5 - Waste, and Category and

Category 6 - Business travel.

•Supernode did not report on Scope 3 in 2022.

Below is a description of the approach taken to determine Aker Horizons Holding and Aker Asset

Development’s Scope 3 emissions. Reported emissions for the other Group companies were

presented and followed up through direct dialogue.

For Scope 3, Aker Horizons is reporting on four (of fifteen) categories: waste, business travel,

employee commuting, and investments. When accounting for the four Scope 3 categories, the

following GHG Protocol calculation methods were used:


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•Category 5 (waste) - the average-data method was used. Aker Horizons’ own waste

data is expressed as a pro rata share of the volume recorded at the Fornebuporten

complex, where its offices are located.

•Category 6 (business travel, flights) - the distance-based method was used. Aker

Horizons utilizes AMEX for booking business travel, which provides estimated

emissions based on distance. Some travel was not booked through AMEX - for these

trips, the emissions were extrapolated from the AMEX data based on costs in the travel

cost system. Finally, some individuals seconded from one company to another (and

therefore not captured by the employee cost system) delivered custom travel reports

for manual inclusion.

•Category 7 (employee commuting) - the distance-based method was used. The data

used in calculations was collected through an employee survey (76 percent completion

rate) conducted for Aker Horizons and Aker Horizons Asset Development.

Internationally applicable emission factors from DEFRA18 were used for most of the

vehicles. However, due to grid mix and infrastructure differences between the UK and

Norway, Norwegian (SSB)19 emission factors were used for rail, bus and electric

vehicles.

•Category 15 (investments) - was calculated using the equity approach and investment

specific method. In 2022, this included emission data from Supernode.

The table to the right summarizes the emission factors used for the calculations of Aker Horizons

Holding and Asset Development’s own emissions.

The table on the next page summarizes all of Aker Horizons’ emissions in 2022, line by line.

Emission factors


Scope 1
Reporting	Emission factor	Unit	Source

Scope 2
Reporting	Emission factor	Unit	Source
Electricity (location-based)	0.011	tCO2e/MWh	NVE
Electricity (residual market-based)	0.405	tCO2e/MWh	NVE
Electricity (market based with GoOs)	0	tCO2e/MWh	Assumption
District heating	0.005	tCO2e/MWh	Oslofjord Varme
District cooling	0.004	tCO2e/MWh	Oslofjord Varme

Scope 3
Reporting	Emission factor	Unit	Source
Waste	21.28	kg CO2e/t	DEFRA
Business air travel	—	—	AMEX20
Employee commuting
Bus	0,0000811	tCO2e	SSB
Car (petrol)	0,00017048	tCO2e	DEFRA
Car (diesel)	0,000170824	tCO2e	DEFRA
Car (hybrid)	0,00012004	tCO2e	DEFRA
Car (plug-in hybrid electric vehicle)	0,00009349	tCO2e	DEFRA
Car (battery electric vehicle)	0	tCO2e	DEFRA
Rail	0,0000122	tCO2e	SSB
Biking	0	tCO2e	DEFRA
Walking	0	tCO2e	DEFRA


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18 UK Government Greenhouse gas reporting: conversion factors 2022. Available at: https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2022

19 Statistisk Sentralbyrå. Available at: https://www.ssb.no/natur-og-miljo/forurensning-og-klima/artikler/mindre-utslipp-per-transportarbeid

20 Utilized travel agency’s own estimate of air travel CO₂ emissions

Aker Horizons’ total greenhouse gas emissions


Type	Data	Unit	tCO2e
Scope 1
LNG	200	Liter	1
LPG	—	Tonnes	0
Natural Gas	—	Tonnes	0
Propane	—	Tonnes	0
Burning oil	—	Litres	0
Diesel	239,829	Litres	613
Petrol	25,557	Litres	55
Marine gas oil	—	Litres	0
Marine fuel oil	—	Litres	0
SF-6 gas	5	Kilograms	103
Scope 1 total			772

Scope 2
Electricity (location-based)	9,958,219	kWh	5,574
Electricity (market-based)	9,958,219	kWh	5,688
District heating (location / country)	96,567	kWh	1
District cooling (location / country)	50,656	kWh	1
Scope 2 total (Location based)			5,576
Scope 2 total (Market based)			5,690

Cont.


Type	Data	Unit	tCO2e
Scope 3
1: Purchased goods and services	N.A.21	N.A.	17,836
2: Capital goods	—		—
3: Fuel and energy (Location based)	780,739	KWh	26
3: Fuel and energy (Market based)	780,739	KWh	30
4: Upstream transportation and distribution	148,816	Tonne*km	18
5: Waste	46,222	Kg	23
6: Business travel	—	Km	3,523
Flights	15,505,861	Km	3,183
Car allowance	143,934	Km	17
7: Employee commuting	N.A.22		31
8: Upstream leased assets	—		—
9: Downstream transportation and distribution	—		—
10: Processing of sold products	—		—
11: Use of sold products	—		—
12: End-of-life treatment of sold products	—		—
13: Downstream leased assets	—		—
14: Franchises	—		—
15: Investments (Location based)	—		6
15: Investments (Market based)	—		16
Scope 3 total (Location based)			21,462
Scope 3 total (Market based)			21,476


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21 This category was based on full LCA/Carbon footprint of the purchased goods and services for Aker Carbon Capture’s products. Thus, this GHG emission are calculated based on a vast amount of data points not possible to summarize in this table.

22 Different methods applied across companies

Aker Horizons’ strategic ambitions

Aker Horizons’ strategic ambitions describe the positive environmental contribution it aims to

achieve through the expansion of planet-positive activities. By measuring and reporting on its

activities’ carbon footprint, broken down into Scope 1, 2 and 3, Aker Horizons ensures

transparency with respect to their negative impact. However, the largely positive contribution

deriving from expanding activities such as renewable energy generation and carbon capture and

storage is generally lost in these reporting frameworks. The Company therefore places additional

emphasis on ambitions and progress relating to such aspects. Aker Horizons’ 2025 ambitions

include:

•+ NOK 100 bn in green investments

•+ 10 GW in renewable power capacity

•- 25 Mt CO2e p.a. emissions reduction

These ambitions encompass projects in both operation and under construction. When assessing

whether a project shall be defined as a "project under construction," portfolio companies are

referred to Aker Horizons’ general accounting policies for fixed and intangible assets, section 2.2,

which states that the cost of an item of property, plant and equipment shall be recognized if, and

only if, it is probable that future economic benefits will flow to the entity, and the cost can be

measured reliably. The key factor when assessing the timing of when to start capitalization of

costs in a development project, such as a floating offshore wind park, is how probable future

economic benefits are. All projects shall be assessed by Group Accounting before capitalization

starts.

Green investments

This ambition encompasses total capital investments originated by Aker Horizons Group

companies, before sell-downs. For other projects, Aker Horizons Group companies' pro rata

share of the projects is applied.

Renewable power capacity

This ambition encompasses the total capacity of projects originated by Aker Horizons Group

companies, before sell-downs. For other projects, Aker Horizons Group companies’ pro rata

share of the projects is applied. The ambition also covers the design capacity for both projects in

operation and under construction (as described above).

Emissions reduction

The 25 Mt CO₂ ambition consists of two main elements: a 10 Mt CO2e emissions reduction

enabled through CCUS and a ~15 Mt CO₂e reduction from avoiding emissions in electricity

generation. Both elements include Aker Horizons’ projects in operation and those under

construction (as defined in Aker Horizons’ accounting policy) – taking into account an expected/

estimated/observed capacity factor. The approach is based on the current draft of the GHG

Protocol and may be updated in the future. This ambition encompasses the total emissions

reduction relating to projects originated by Aker Horizons Group companies, before sell-downs.

For other projects, Aker Horizons Group companies' pro rata share of the projects is applied.

The process for calculating emissions reduction has been developed on the basis of best

practice and the current draft of the GHG Protocol for comparative emissions.

Avoided emissions from the production of renewable power

The assessment of avoided emissions involves calculating the difference in marginal emissions

between the power produced and the local grid average, taking into account all lifecycle

emissions.

Capacity factor for estimated production

Assessing avoided emissions involves taking into account what was actually produced, or could

actually be produced, based on an expected/estimated/observed capacity factor. The capacity

factors used for the calculations above are estimates across the portfolios per country, including

all sites. The capacity factor further takes into account projected weather conditions on site,

expected reliability of the substation and equipment (turbines/panels), electrical losses and so

forth.

Lifecycle emissions

Since information about sources and the inclusion of lifecycle emissions for grid average factors

is not always easy to find, the best practice for Aker Horizons’ portfolio companies is to always

use lifecycle analysis (LCA) emission factors for own products, and energy generation.

Producing a kWh will have zero or close to zero emissions, which is why materials, production,

distribution, use phase (repairs, etc.) and end-of-life emissions should be distributed as CO2 per

kWh for the expected total output of the unit throughout its expected lifetime. If no LCA

calculation is available for the Company, Aker Horizons will refer to available studies. For this

calculation, lifecycle emissions of 0.011 kg CO2e per KWh produced from wind and 0.04 kg CO2

per KWh produced from solar were assumed23. The LCA factor for solar power has been

adjusted from the Aker Horizons 2021 Annual and Sustainability Report to more accurately

reflect the emissions associated with solar PV.

Grid emission factors

For grid emission factors, the International Financial Institutions (IFI) Harmonized Framework

approach and their standards for greenhouse gas accounting have been utilized, as

recommended by the NPSI Position Paper on Green Impact Reporting. The factors in the table

are drawn from the IFI Default Grid Factors v.3.1 dataset (published December 2021, revised

January 2022). The emission factors are based on country-specific Combined Margins based on


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23 National Renewable Energy Laboratory Life-Cycle Analysis Harmonized Factors, available at: https://www.nrel.gov/analysis/life-cycle-assessment.html

a split between a 25 percent Build Margin and a 75 percent Operating Margin, as recommended

for variable generation (such as wind and solar PV). The emission factors have been revised

since the publishing of Aker Horizons’ 2021 Annual and Sustainability report (where the 2022 IEA

dataset for grid emissions per country was utilized for the calculation of avoided emissions), in

order to align with best practice on impact reporting for Green Bonds.

Reduced emissions from carbon capture

For carbon capture, emissions reduction can be calculated as what can be called reduced

emissions. This involves calculating the CO₂ emissions for an existing process, product or plant/

unit, and the difference between a previous year’s emissions and the most recent reporting year.

Since this is a calculation comparing two years of emissions, there is no need to include any LCA

for applied products or services (CCS equipment). This is only applicable for avoided emissions.

Although it is necessary to include a capacity factor for renewables projects, there is no

anticipated reduction from capacity to actual capture for carbon capture, provided that the

process the carbon is captured from is running.

Taxonomy accounting policy

Taxonomy financial assessment

The key performance indicators (KPIs) presented in this report include Turnover, CapEx and

OpEx for the reporting period 2022. The KPIs have been calculated according to Annex 1 of the

Article 8 Delegated Act, and include Aker Horizons’ consolidated share of taxonomy-eligible and

taxonomy-aligned turnover, CapEx and OpEx in relation to total turnover, CapEx and OpEx. For

further details on how the different KPIs have been calculated, please refer to the description

under “Approach to classifying activities”.

Turnover

The Turnover KPI has been calculated as the part of net turnover derived from taxonomy-eligible

projects divided by the total net turnover. Total net turnover equals the external revenue

according to the IFRS consolidated accounts.

CapEx

The CapEx KPI is defined as taxonomy-eligible capital expenditure (numerator) divided by total

capital expenditure (denominator)

Denominator

The denominator in the CapEx KPI calculation is defined as all capitalized costs in the

consolidated financial statements. The denominator in the CapEx KPI includes capitalized costs

from the following IFRS standards (not an exhaustive list, only Aker Horizons-relevant standards

have been included):

•IAS 16 – Property, plant and equipment

•IAS 38 – Intangible assets

•IFRS 16 – Leases

The CapEx denominator also includes additions to fixed and intangible assets resulting from

business combinations (acquisitions of business).

Numerator

The numerator in the CapEx KPI includes total capitalized costs related to taxonomy-eligible

assets during the year. Taxonomy-eligible assets means that the assets are associated with an

activity that is covered by the taxonomy in the delegated acts (see “eligibility” above).

OpEx

The Opex KPI is defined as taxonomy-eligible operating expenditure (numerator) divided by total

operating expenditure (denominator). It is important to point out that total OpEx in the OpEx KPI

does not necessarily equal total OpEx from the consolidated financial statements, see more

details below.

Denominator

The denominator in the Opex KPI shall include all direct non-capitalized costs that relate to

research and development, building renovation measures, short-term leases, maintenance and

repair, and any other direct expenditure relating to the day-to-day maintenance of fixed assets.

The denominator will typically include non-recognized research and development costs, costs

related to short-term and low-value assets (i.e., lease costs not covered by IFRS 16), and

maintenance and repair costs on fixed assets. General overhead costs shall not be included.

Costs related to training are also excluded.

Numerator

The numerator in the OpEx KPI shall include the part of the denominator that is associated with

taxonomy-eligible activities, direct non-capitalized research and development costs.

In addition to the KPIs as determined in accordance with Annex 1 of the Art 8 Delegated Act,

Aker Horizons has also chosen to present additional KPIs for turnover, CapEx and OpEx on a

voluntary basis. In the additional KPIs, the turnover, CapEx and OpEx have been calculated on a

pro rata basis, corresponding to Aker Horizons’ equity share of the different KPIs in both

subsidiaries and joint ventures. A major part of the developments in taxonomy-eligible activities

across the Group is invested through special purpose vehicles (SPVs). These are often

accounted for using the equity method, as opposed to being included in the consolidated figures.

The additional KPIs therefore help the users of its annual report to understand the full extent of

Aker Horizons’ taxonomy-eligible activities.

Approach to classifying activities

Eligibility. A Taxonomy-eligible activity means an economic activity that is described in the

delegated acts supplementing the Taxonomy Regulation, regardless of whether that activity

meets the technical screening criteria laid down in the respective acts. Similar, non-eligible

activities are defined as the activities not described in the delegated acts.


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Alignment. A taxonomy-aligned activity means an eligible economic activity that also complies

with all of the technical screening criteria:

a.Substantial contribution: The economic activity contributes substantially to one or more

of the environmental objectives

b.Do no significant harm: No significantly harm on any of the environmental objectives

c.Minimum safeguards: Compliance with the minimum safeguards

d.The activity complies with technical screening criteria in the delegated acts

supplementing the Taxonomy Regulation

Aker Horizons and its portfolio companies have begun assessing activities on the basis of the

current draft of the Taxonomy Regulation. In 2021, Aker Horizons chose to report on activities

that are currently aligned, and activities that are “expected aligned”. For 2022, projects that

expect to be aligned within the next five years (as indicated by the allowance of Taxonomy-

eligible economic activities to become Taxonomy-aligned within a predefined timeframe through

a CapEx plan) are reported as aligned.

Early-stage projects that are too premature to claim alignment within the next five years or

present a concrete roadmap to alignment, have been reported as not aligned. This does not

mean that the projects themselves will not be aligned once developed, but simply that such an

assessment will be carried out once they are more mature and it is possible to come to a

conclusion.

SFDR Principal Adverse Impact Indicators

The Sustainable Finance Disclosure Regulation presents fourteen core indicators applicable to

investments in investee companies. The approach to calculating the individual indicators, and the

definitions provided, are drawn from the Template principal adverse sustainability impacts

statement from Annex I to the Regulatory Technical Standards issued in April 2022 (C 2022 1931

Annex 1).

All investment values are as of 31 December 2022. The exchange rate used between NOK and

EUR for investment value is as of 31 December 2022. The exchange rate used between NOK

and EUR for revenue is the average exchange rate also applied in Aker Horizons’ P&L.

The indicators are presented for the full portfolio.

When calculations at the portfolio level are weighted, this is done on the basis of the share of the

individual investment in the total portfolio (current value of investment divided by the current

value of total investments). Where data has not been received from all investee companies, the

current value of total investments has been adjusted accordingly (so remaining investee

companies carry a larger proportion of the total investments each).

In some instances, data was not available for all portfolio companies. In this case, the indicators

have been weighted accordingly. The table indicates the percentage of portfolio data coverage.

Details of how each individual indicator was calculated is provided below.

Indicator 1: GHG emissions

Greenhouse gas emissions were calculated as the sum of Aker Horizons’ equity share of each

investee company’s GHG emissions (scopes 1, 2, 3 and total). This was done in accordance with

the following formula:

Indicator 2: Carbon footprint

Carbon footprint was calculated as the total GHG emissions (from Indicator 1) divided by the

current value of all investment in EUR million. This was done in accordance with the following

formula:

Indicator 3: GHG intensity of investee companies

The GHG intensity of investee companies was calculated as the ratio between each of the

investee companies’ total GHG emissions (from Indicator 1) and weighted by the share of the

individual investment in the total portfolio. This was done in accordance with the following

formula:

Indicator 4: Exposure to companies active in the fossil fuel sector

Here, investee companies have been classified as active or not active according to the definition

provided in the draft Regulatory Technical Standards. The portfolio-level total value is weighted

by each investee company’s’ share in the total portfolio.

Indicator 5: Share of non-renewable energy consumption and production

This indicator describes the share of non-renewable energy consumption and non-renewable

energy production of investee companies from non-renewable energy sources compared to

renewable energy sources, expressed as a percentage.

The draft Regulatory Technical Standards do not provide a clear calculation method for this

indicator. Aker Horizons’ approach was to collect data on GWh for all energy consumption and

production, broken down by renewable and non-renewable. This was adjusted to Aker Horizons’

equity share, and added together to reach portfolio-wide consumption and production. Then, the


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the non-renewable production and consumption were added together, and divided by total

production and consumption.

This differs from the calculation method in 2021, when data was collected in percentages from

portfolio companies (each company’s individual share of non-renewable energy consumption

and production), and consolidated on a financial basis. This is thus presented as two separate

figures - one weighted average for production and one for consumption. The portfolio-level total

value was weighted by each investee company’s’ share in the total portfolio. Further guidance on

this approach for future reporting may lead to adaptations in the calculation method.

Indicator 6: Energy consumption intensity per high-impact climate sector

This indicator describes energy consumption in GWh per million EUR of revenue in investee

companies, per high-impact climate sector. First, investee companies were classified according

to whether they are considered high-impact climate sectors. This is considered to be the case for

all of Aker Horizons’ investments. Because of the limited amount of sectors represented through

Aker Horizons’ portfolio companies, no segmentation across sectors has been made. Then, an

intensity measure per company was calculated as energy consumption divided by million EUR of

revenue. Finally, this was then weighted at the portfolio level by multiplying the individual

intensity values by the share of each investee company in the total portfolio.

Indicator 7: Activities negatively affecting biodiversity-sensitive areas

This indicator describes the share of investments in investee companies with sites/operations

located in or near to biodiversity-sensitive areas, where the activities of those investee

companies negatively affect those areas.

Here, Aker Horizons’ portfolio companies were asked to provide information on the number of

operational sites owned, leased or managed in or adjacent to biodiversity-sensitive areas, and

the share of those areas covered by effective measures for preserving biodiversity. If any

companies reported having sites in biodiversity-sensitive areas that were not covered by

effective measures, this is considered as negatively affecting those areas. The portfolio-level

total value is weighted by each investee company’s’ share in the total portfolio.

Indicator 8: Emissions to water

This indicator describes the tonnes of emissions to water generated by investee companies per

million EUR invested, expressed as a weighted average. Here, an intensity measure per

company was calculated as emissions to water divided by million EUR invested. Then, this was

weighted at the portfolio level by multiplying the individual intensity values by the share of each

investee company in the total portfolio.

Indicator 9: Hazardous waste ratio

This indicator describes the tonnes of hazardous waste generated by investee companies per

million EUR invested, expressed as a weighted average. Here, an intensity measure per

company was calculated as tonnes of hazardous waste divided by million EUR invested. Then,

this was weighted at the portfolio level by multiplying the individual intensity values by the share

of each investee company in the total portfolio.

Indicator 10: Violations of UN Global Compact principles and Organization for

Economic Cooperation and Development (OECD) Guidelines for Multinational

Enterprises

This indicator describes the share of investments in investee companies that have been involved

in violations of the UNGC principles or OECD Guidelines for Multinational Enterprises. Here,

investee companies have been classified according to whether they have been involved in

violations of the UNGC principles or OECD Guidelines for Multinational Enterprises. The

portfolio-level total value is weighted by each investee company’s’ share in the total portfolio.

Indicator 11: Lack of processes and compliance mechanisms to monitor compliance

with UN Global Compact principles and OECD Guidelines for Multinational

Enterprises

This indicator describes the share of investments in investee companies without policies to

monitor compliance with the UNGC principles or OECD Guidelines for Multinational Enterprises,

or grievance/complaints handling mechanisms to address violations of the UNGC principles or

OECD Guidelines for Multinational Enterprises. Here, investee companies have been classified

according to whether they lack policies to monitor compliance with the UNGC principles or

OECD Guidelines for Multinational Enterprises, or grievance/complaints handling mechanisms to

address violations of the UNGC principles or OECD Guidelines for Multinational Enterprises. The

portfolio-level total value is weighted by each investee company’s’ share in the total portfolio.

Indicator 12: Unadjusted gender pay gap

This indicator describes the average unadjusted gender pay gap in investee companies. The

ratio is based on average salary in the organization regardless of employment level, including

the CEO, and is calculated as the difference between average male and female annual base

salary expressed as a percentage of average male annual base salary. The portfolio-level total

value is weighted by each investee company’s’ share in the total portfolio.

Indicator 13: Board gender diversity

This indicator describes the average ratio of female to male board members in investee

companies. The portfolio-level total value is weighted by each investee company’s’ share in the

total portfolio.

Indicator 14: Exposure to controversial weapons (anti-personnel mines, cluster

munitions, chemical weapons and biological weapons)

This indicator describes the share of investments in investee companies involved in the

manufacture or sale of controversial weapons. Here, investee companies have been classified

according to whether they have been involved in the manufacture or sale of controversial

weapons. The portfolio-level total value is weighted by each investee company’s’ share in the

total portfolio.


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Company Sustainability Summary Guide

This section serves as a guide for how to read the Company sustainability summaries, and the reasoning behind what has been included on the individual pages.

The company sustainability summaries give a detailed status

on the Aker Horizons Group companies’ progress on key

areas such as corporate purpose, sustainability governance

and highlights, diversity, external commitments, ESG

implementation and management. If definitions are based on

specific frameworks or pieces of legislation, this will be

specified. Otherwise, they are based on Aker Horizons’ own

view grounded in experience and competence in the area of

ESG.

Corporate purpose, governance, and

sustainability highlights

The qualitative section highlights corporate purpose,

governance and sustainability highlights. Corporate purpose is

an important top anchor for companies. Employees value

working for companies with a purpose greater than financial

profitability. Aker Horizons aims to create awareness around

its importance as a driver for sustainable business practice

and its attractiveness as a workplace. Sustainability

governance is important to ensure accountability, integration

across businesses and reporting. Sustainability highlights is a

way to enable companies to communicate key focus areas

and progress made in the past year.

Diversity

Gender diversity represents one of several important

dimensions of diversity and equal representation and

opportunity. Norwegian companies are subject to legal

requirements to both have active measures to promote and

also subsequently report on gender balance. Publicly-listed

companies in Norway must also ensure gender representation

at the board level. Aker Horizons finds gender equality at all

levels in the organization to be an important objective and

aims to achieve a 40/60 gender balance, equivalent to the

legal requirement for board representation in the Public

Limited Liability Companies Act.

External commitments and the UN

Sustainable Development Goals

Signing up to external commitments sends a strong signal of

commitment. The UN Sustainable Development Goals (SDGs)

are the world’s shared goals for a sustainable future. Aker

Horizons has identified eight priority SDGs where the

Company can exert the greatest positive impact. Aker

Horizons also encourages companies to identify and work

towards relevant SDGs, not only as a means to contribute to

sustainable development, but also to reduce risk, identify

opportunities and shape a meaningful sustainability agenda.

ESG performance summary table

The summary table highlights key topics across the four

overarching themes of the WEF Measuring Stakeholder

Capitalism Framework: Planet, People, Prosperity and

Governance. Here, it is highlighted with a tag whether the

topics are covered by the companies’ policies (P), targets (T),

strategy (S) and reporting (R). Aker Horizons does not expect

companies to cover all topics, merely those that are material.

In addition, one key quantitative indicator is highlighted on the

summary page. Additional indicators per company can be

found in the Full ESG performance metrics in the appendix.

Further information on how selected ESG indicators in the

performance summary table were defined:

•Pay equality gap is is based on the average salary in

the organization regardless of employment level,

including the CEO, and is calculated as the

difference between average male and female annual

base salary expressed as a percentage of average

male annual base salary.

•TRIF is based on the sum of fatalities, lost time

incidents, and medical treatment incidents.

Mainstream Renewable Power also includes First

Aid Cases in TRIF figures, but they have not been

included in the table for comparability.

•R&D expenditure is here defined as all direct non-

capitalized cost related to research and

development. Capitalized cost related to research

and development is not included here, but may also

be considered in total R&D expenditure.

•Total taxes paid is defined as the total global tax

borne by the company, including corporate income

taxes, property taxes, non-creditable VAT and other

sales taxes, employer-paid payroll taxes and other

taxes that constitute costs to the company, by

category of taxes.

•Employee wages and benefits are defined as total

payroll (including employee salaries and amounts

paid to government institutions on behalf of

employees) plus total benefits (excluding training,

costs of protective equipment or other cost items

directly related to the employee’s job function).

Amounts paid to government institutions on behalf of

employees can include employee taxes, levies and

unemployment funds.


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Board of Directors

Effective boards benefit from diversity of thinking, which can

be generated by diversity in gender, background, education,

experience and expertise. Boards should demonstrate

appropriate ESG capabilities. A corporate sustainability policy

should be approved by the company’s board, and

sustainability should be formally incorporated in the

responsibilities of the board.

ESG implementation

To ensure integration of ESG, certain elements are of

particular value to drive performance and progress. Therefore,

Aker encourages forward-looking time-bound ambitions on

material areas, a strategy for reaching targets and transparent

reporting on corporate progress towards these ambitions.

ESG management

Good ESG management includes important elements such as

materiality assessments, based on what are material aspects

both to the company and other stakeholders. Regular ESG

risk and opportunity monitoring helps to mitigate material risks

and seize opportunities. ESG risk management in supply

chains includes having a business partner code of conduct

and subsequent monitoring to mitigate adverse impacts.


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Sustainability policy
	Policy approved by the Board of Directors
	Policy in place but not approved by the Board
	Policy in progress or not in place
Formalized responsibility
	Formalized responsibility on sustainability in place
	Formalized responsibility on sustainability in progress
	Formalized responsibility on sustainability not in place
ESG competence
	Min. one member with in-depth ESG competence
	Board has a general good ESG competence
	ESG competence of Board in progress (e.g. training)


Targets
	Three or more forward-looking targets in place
	One forward-looking target in place
	Forward-looking targets in progress
Strategy
	Three or more strategies in place to reach target
	One strategy in place to reach target
	Strategy in progress
Reporting
	Reporting on three or more areas material to the company
	Performance reporting on material issue
	No performance reporting on material topic


Materiality assessment
	Regular materiality assessment performed (min. annual)
	Materiality assessment performed once
	Materiality assessment in progress
ESG risk management
	Regular risk and opportunity monitoring (min. annual)
	Risk and opportunity assessment performed
	Risk and opportunity monitoring in progress
Supply chain monitoring
	Regular supply chain monitoring in place
	Business partner Code of Conduct in place
	Business partner Code of Conduct in progress

Appendix

Full ESG Performance Metrics


Planet	Unit	Aker Horizons	Aker Carbon Capture	Mainstream Renewable Power
Commitments
Climate emissions: Net zero commitment (or more ambitious)	Y/N	Y	Y	Y
Has as a formal initiative to front a Net Zero Commitment on climate been joined? (E.g. the Race to Zero, commitment to the SBTi)	Y/N	Y	Y	Y
Concrete, quantified, time-bound targets for GHG emissions reductions	Y/N	Y	Y	Y
Approved Science-Based Targets in place	Y/N	N	N	N
Biodiversity and deforestation: Targets on avoiding, mitigating and addressing biodiversity impact with an ambition of Net Zero impact	Y/N	N	N	Y
Has a formal initiative to front a Net Zero Commitment on biodiversity been joined?	Y/N	N	N	N
Zero waste: Targets on circularity and resource usage, with a Zero Waste ambition	Y/N	N	Y	Y
Has a formal initiative to front a Net Zero Commitment on waste been joined?	Y/N	N	N	N
Freshwater: Targets on minimizing impact on water and marine resources, and a Net Zero freshwater impact	Y/N	N	N	N
Has a formal initiative to front a Net Zero Commitment on water been joined?	Y/N	N	N	N
Greenhouse Gas Emissions
Scope 1 emissions	Tonnes CO2e	0	1	771
Scope 2 emissions - location-based	Tonnes CO2e	5	82	5,490
Scope 2 emissions - market-based	Tonnes CO2e	120	15	5,555
Scope 3 emissions - location-based24	Tonnes CO2e	386	18,219	2,851
Scope 3 emissions - market-based25	Tonnes CO2e	386	18,223	2,851
Co2e "offset" through offsetting mechanisms, nature-based solutions and/or carbon removal technologies	Tonnes CO2e	0	0	0
Unit of solution utilized for offsetting (e.g. capture/removal/nature-based capacity restored)	N.A.	—	—	—


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24 Not the same Scope 3 categories have been considered across the companies

25 Not the same Scope 3 categories have been considered across the companies


Energy
Non-renewable energy consumption	MWh	9	88	6,261
Renewable energy consumption	MWh	587	69326	0
Non-renewable energy production	MWh	0	0	0
Renewable energy production	MWh	0	0	3,503,203
Biodiversity
Land occupation from own and portfolio companies operations (hectares)	Hectares	1,167	—	637,551
Number of operational sites owned, leased or managed in or adjacent to protected areas and/or biodiversity-sensitive areas	# sites	0	0	N/A
Area (in hectares) of operational sites owned, leased or managed in or adjacent to protected areas and/or biodiversity- sensitive areas	Hectares	0	0	N/A
Only for companies with sites/operations located in or near to biodiversity-sensitive areas: Do any of the activities negatively affect those areas?	Y/N	N	N	N/A
Sites/operations that affect threatened species (IUCN Red List)	Y/N	N	N	N/A
Conservation/reforestation efforts - value	Value (unit defined below)	N	—	N/A27
Denominator of biodiversity offsets value (land area concerned, protection/restoration, duration of protection, other properties of area)	N.A.	N	0	Y
Water
Sites/operations located in areas of high or extremely high baseline water stress (according to WRI Aqueduct water risk atlas tool)	Y/N	N	N	N/A
Report for operations where material, mega liters of water withdrawn	Mega liters	1	2	54
Report for operations where material, percentage of water withdrawn in regions with high or extremely high baseline water stress	% high water stress	0	0	In progress
Water protection/replenishment efforts - value	Mega liters	N/A	—	N/A
Denominator of water replenishment value (type of water area concerned, other properties)	N.A.	N/A	—	N/A
Pollution
Emissions to water	Tonnes	0	0	028
Waste
Hazardous waste generated	Tonnes	0	0	46


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26 Limited to HQ offices in Norway

27 In 2022, Mainstream launched a fundraising activity for mangrove restoration in Vietnam’s Soc Trang province, together with the British Embassy in Vietnam and the Song Foundation’s Green Happiness Program. For further information, see Mainstream’s

website and 2022 Sustainability Report (soon to be published at the time of publication for Aker Horizons’ Annual and Sustainability Report 2022).

28 Mainstream did not collect this data in 2021, but this is expected to be very limited and is in scope for future reporting.


Total waste - tonnes	Tonnes	11	20	5,876
Non-recycled waste - tonnes	Tonnes	4	7	826
Non-recycled waste - proportion of all waste generated	% non-recycled waste	36	35	14
Recycled waste - proportion of all waste generated	% recycled waste	64	65	86
Climate risk
Has a TCFD-assessment been undertaken, disclosed and updated in the last two years?	Y/N	Y	Y	Y


People	Unit	Aker Horizons	Aker Carbon Capture	Mainstream Renewable Power
Diversity/employees29
Own employees: Total (FTE)	# employees (FTE)	94	114	711
Own employees: Total (HC)	# employees (HC)	94	117	715
Contractors	# contractors (FTE)	22	17	126
Own employees: Permanent	# employees (FTE)	93	113
Own employees: Temporary	# employees (FTE)	1	1
Own employees: Full-time	# employees (FTE)	94	113	707
Own employees : Part-time	# employees (FTE)	0	1	4
Own employees: Men (absolute)	# men (HC)	64	82	447
Own employees: Men (percentage)	% men (HC)	68	70	63
Own employees: Women (absolute)	# women (HC)	30	35	268
Own employees: Women (percentage)	% women (HC)	32	30	37
Executive management: Women (percentage)	% women (HC)	50	43	40
Executive management: Men (percentage)	% men (HC)	50	57	60
Management excluding executive management: Women (percentage)	% women (HC)	28	29	32
Management excluding executive management: Men (percentage)	% men (HC)	72	71	68


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29 During 2022, Aker Horizons introduced four gender options in its systems and reporting; male, female, other* (*gender specified by the employees themselves) and not disclosed. No other genders than male and female were reported, and are therefore not

included in the table


Employees under 30 years (absolute)	# under 30 (HC)	7	9	92
Employees under 30 years (percentage)	% under 30 (HC)	7	8	13
Employees between 30-50 years (absolute)	# 30-50 (HC)	66	68	519
Employees between 30-50 years (percentage)	% 30-50 (HC)	70	58	75
Employees over 50 years (absolute)	# over 50 (HC)	21	40	80
Employees over 50 years (percentage)	% over 50 (HC)	22	34	12
Number of different nationalities amongst employees	# nationalities	22	18	37
Pay equality women to men (average salary in the organization regardless of employment level), expressed as the difference in payment as a percentage of men's salary	% pay gap	32	7.4	N.A./In progress
Ratio of CEO’s total annual compensation to median total annual compensation of all employees (excluding the CEO): CEO salary/Median salary excl. CEO	Ratio	4.62	3.6	9
Average hours of training per person that the organization’s employees have undertaken during the reporting period - total	Hours	72.25	34	56
Employee participation in employment satisfaction survey (% of total)	%	92	72	98
Employee satisfaction level (%) (based on survey)	%	74	Not measured in %	88
Health and Safety
Fatalities among own employees - absolute	# incidents	0	0	0
Fatalities among own employees - rate per million hours worked	Rate	0	0	0
Fatalities among contractors - absolute	# incidents	0	0	0
Fatalities among contractors and hired-ins - rate per million hours worked	Rate	0	0	0
Lost time injuries (LTI/LTIF) among own employees - absolute	# incidents	0	0	3
Lost time injuries (LTI/LTIF) among own employees - rate per million hours worked	Rate (LTIF)	0	0	2.54
Lost time injuries (LTI/LTIF) among contractors - absolute	# incidents	0	0	6
Lost time injuries (LTI/LTIF) among contractors - rate per million hours worked	Rate (LTIF)	N.A.	0	2.33
Medical treatment cases (MTC/MTCF) among own employees - absolute	# incidents	1	0	0
Medical treatment cases (MTC/MTCF) among own employees - rate per million hours worked	Rate (MTCF)	7.630	0	0
Medical treatment cases (MTC/MTCF) among contractors - absolute	# incidents	0	0	3
Medical treatment cases (MTC/MTCF) among contractors - rate per million hours worked	Rate (MTCF)	N.A.	0	1.31
Recordable work-related injuries (TRI/TRIF) among own employees - absolute	# incidents	1	0	3


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30 Calculated on the basis of Aker Horizons Asset Development’s working hours only


Recordable work-related injuries (TRI/TRIF) among own employees - rate per million hours worked	Rate (TRIF)	7.631	0	2.54
Recordable work-related injuries (TRI/TRIF) among contractors - absolute	# incidents	0	0	9
Recordable work-related injuries (TRI/TRIF) among contractors - rate per million hours worked	Rate (TRIF)	N.A.	0	8.96
Sickness absence (%)	% sick leave	1.29	1.27
Human rights
Violations of UN Global Compact principles and Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises	Y/N	N	N	N/A32
Processes and compliance mechanisms to monitor compliance with UN Global Compact principles and Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises (Yes/No).	Y/N	Y	Y	Y
Total percentage of employees who have received human rights training and/or training on the organization's human rights policies and procedures	%	61	62	90


Prosperity	Unit	Aker Horizons	Aker Carbon Capture	Mainstream Renewable Power
Economic contribution
Direct economic value generated and distributed (EVGandD) – on an accrual basis, covering the basic components for the organization’s global operations - Employee wages and benefits	NOK million	235.8	152.1	655.3
Total costs related to research and development	NOK million	225.5	55.8	271.8
The total global tax borne by the company, including corporate income taxes, property taxes, non-creditable VAT and other sales taxes, employer-paid payroll taxes and other taxes that constitute costs to the company	NOK million	159.9	46.8	98.9
Job creation
Jobs created (difference between permanent own employees last year and current year)	# employees (HC)	14	38	180
Leavers (everyone who have left the organization during the year)	# employees (HC)	16	12	67
Turnover (percent - leavers divided by number employees at the end of the year	%	17	10	9


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31 Calculated on the basis of Aker Horizons Asset Development’s working hours only

32 A comprehensive assessment of performance against minimum social safeguards is currently under development


Governance	Unit	Aker Horizons	Aker Carbon Capture	Mainstream Renewable Power
Ethical conduct, integrity and anti- corruption training
Total percentage of governance body members who have received training on the organization's ethical conduct, integrity and anti-corruption policies and procedures	%	0	0	100
Total percentage of employees who have received training on the organization's ethical conduct, integrity and anti-corruption policies and procedures	%	88	100	100
Total percentage of business partners who have received training on the organization's ethical conduct, integrity and anti- corruption policies and procedures	%	0	0	N/A
Compliance with laws and regulations
# of legal proceedings associated with corruption, fraud, insider trading, anti-trust, anti-competitive behavior, market manipulation, other economic crime, malpractice or violations of other related industry laws or regulations that ended with a penalty	# proceedings	0	0	0
Board composition
Total amount of board members	# board members	5	7	6
Female (or other gender minority) board members - number	# female directors	2	4	1
Female (or other gender minority) board members - percent	% female directors	40%	57%	17%
Board members with executive positions in the company - number	# directors with exec. positions	0	0	3
Independent board members - number	# independent directors	3	5	0
Stakeholder board members - number	# stakeholder directors	0	Not available	6
Board members aged below 50 - number	# directors 30-50	0	2	2
Board members aged over 50 - number	# directors over 50	5	5	4
Board meetings
Number of board meetings held	# meetings	10	8	6
Directors average meeting attendance (%)	%	90	92	88
Other
Is a system in place for monitoring stakeholder engagement?	Y/N	N	N	Y
Is there a grievance mechanism in place and available to external stakeholders?	Y/N	Y	Y	Y
Has board oversight of the compliance program been implemented, with regular reporting to the Board or a designated board committee?	Y/N	Y	Y	Y
Has a program been implemented to manage third party integrity risks, which sets requirements to IDD, audits and monitoring?	Y/N	Y	Y	Y


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GRI Content Index


Statement of use	Aker Horizons has reported the information cited in this GRI content index for the period of 1 January 2022 to 31 December 2022 with reference to the GRI Standards.
GRI 1: Foundation	GRI1: Foundation 2021


DISCLOSURE	LOCATION	PAGE
Organizational profile
GRI 2: General Disclosures 2021
The organization and its reporting practices
2-1 Organizational details	Introduction - Annual Report Aker Horizons in brief Introduction – Board of Director’s Report Company portfolio - Board of Directors’ Report General information – Notes	2 3 15 16-19 91
2-2 Entities included in the organization’s sustainability reporting	Our Portfolio Companies – Aker Horizons in brief Company portfolio – Board of Directors’ Report Aker Horizons and the Portfolio’s Sustainability Summary Report Boundaries – Transparent Reporting	7-11 16-20 77-80 165
2-3 Reporting period, frequency and contact point	Transparent Reporting	169
2-4 Restatements of information	Report Boundaries - Transparent reporting	169
Activities and workers
2-6 Activities, value chain and other business relationships	Aker Horizons in Brief Board of Directors’ Report Our Portfolio Companies – Aker Horizons in brief Company Portfolio - Board of Directors Report Key developments in 2022	3 14-15 7-11 16-20 16
2-7 Employees	People – Board of Directors’ Report People summary Full ESG Performance Metrics – Appendix	22-24 50-52 177-179
2-8 Workers who are not employees	People – Board of Directors’ Report People summary Full ESG Performance Metrics – Appendix	22-24 50-52 177-179
Governance
2-9 Governance structure and composition	Management model, corporate governance, control, and compliance – Board of Directors’ Report Board of Directors People summary - Respect for People Aker Horizons and the Portfolio’s Sustainability Summary SFDR Principal Adverse Impact Indicators Corporate Governance Report Full ESG Performance Metrics – Appendix	21-22 26-27 50-52 77-80 81 153-157 180
2-10 Nomination and selection of the highest governance body	Corporate Governance Report People summary Board of Directors	153-157 50-52 26-27


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2-11 Chair of the highest governance body	Management model, corporate governance, control and compliance – Board of Directors’ Report Board of Directors Meeting chair, voting, etc. – Corporate Governance Report	21-22 26-27 154-155
2-12 Role of the highest governance body in overseeing the management of impacts	Management model, corporate governance, control, and compliance – Board of Director’s Report Board of Directors’ activities – Board of Directors’ Report Business and society - Board of Directors’ Report Risk and risk management - Board of Directors’ Report Materiality process and approach Climate change Energy Biodiversity Circular economy Human and labor rights Health, safety and well-being Diversity, equality and inclusion Talent attraction and development Local communities Responsible business conduct Aker Horizons and the Portfolio’s Sustainability Summary The work of the Board of Directors – Corporate Governance Report Risk management and internal control – Corporate Governance Report TCFD Assessment – Appendix	21-22 22 22 24 36 40 44 46 48 53-54 59 62 64 67 70-73 77-80 155 156 190
2-13 Delegation of responsibility for managing impacts	Human and labor rights - Respect for People Responsible business conduct – Good Governance The work of the Board of Directors – Corporate Governance Report Risk management and internal control – Corporate Governance Report	53 70 155 156
2-14 Role of the highest governance body in sustainability reporting	Aker Horizons and the Portfolio’s Sustainability Summary Responsible business conduct - Good Governance Declaration by the Board of Directors and CEO - Board of Directors Report	77-80 70 25, 147
2-15 Conflicts of interest	Conflict of interest – Good Governance	71
2-16 Communication of critical concerns	Reporting concerns – Good governance Whistleblowing channel and grievances mechanism - Respect for People The work of the Board of Directors - Corporate Governance Report	71 55 155
2-17 Collective knowledge of the highest governance body	Board of Directors Aker Horizons and the Portfolio’s Sustainability Summary Full ESG Performance Metrics – Appendix	26-27 77-80 180
2-18 Evaluation of the performance of the highest governance body	Board of Directors’ activities – Board of Directors’ Report	22
2-19 Remuneration policies	Board Remuneration – Corporate Governance Report Remuneration of executive management – Corporate Governance Report Remuneration Report 2022	162 159-161 158-163
2-20 Process to determine remuneration	Board Remuneration – Corporate Governance Report Remuneration of executive management – Corporate Governance Report Remuneration Report 2022	162 159-161 158-163
2-21 Annual total compensation ratio	Full ESG Performance Metrics – Appendix	180
Strategy, policies and practices
2-22 Statement on sustainable development strategy	Board of Directors’ Report External commitments	14-25 34


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2-23 Policy commitments	Aker Horizons’ Sustainability Policy Human and labor rights - Respect for People Diversity, equality and inclusion – Respect for People Responsible business conduct - Good Governance Aker Horizons' sustainable library	29 53-55 62 70-73
2-24 Embedding policy commitments	Aker Horizons’ Strategy for Achieving Sustainability Impact Human and labor rights - Respect for People Diversity, equality and inclusion – Respect for People Responsible business conduct - Good Governance Aker Horizons and the Portfolio’s Sustainability Summary	30 53-55 62 70-73 77-80
2-25 Processes to remediate negative impacts	Due diligence - Respect for people Whistleblowing channel and grievances mechanism - Respect for People Indigenous rights and cultural heritage - Respect for People Responsible supply chain management – Good Governance	55 55 55 72
2-26 Mechanisms for seeking advice and raising concerns	People - Board of Directors’ Report Reporting concerns – Good Governance Whistleblowing channel and grievances mechanism - Respect for People	22-23 72 55
2-27 Compliance with laws and regulations	Human and labor rights – Respect for People Responsible business conduct - Good Governance Full ESG Performance Metrics – Appendix	53-55 71 180
2-28 Membership associations	External commitments Human and labor rights – Respect for People Aker Horizons and the Portfolio’s Sustainability Summary	34 53 77-80
Stakeholder engagement
2-29 Approach to stakeholder engagement	Materiality Assessment Stakeholder Engagement - Appendix	35-36 188-189
2-30 Collective bargaining agreements	Human and labor rights – Respect for People	53-54
Material topics 2022
GRI 3: Material Topic 2021
3-1 Process to determine material topics	Materiality Assessment Stakeholder Engagement - Appendix	36 188-189
3-2 List of material topics	Aker Horizons’ Material Topics	37
GRI 201: Economic Performance 2016
3-3 Management of material topics	Financial performance – Board of Directors’ Report	20-21


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201-1 Direct economic value generated and distributed	Income Statement – Financials and Notes 3 Operating segments – Financials and Notes 4 Revenue – Financials and Notes 5 Employee benefits – Financials and Notes 6 Other operating expenses – Financials and Notes 8 Tax – Financials and Notes Full ESG Performance Metrics – Appendix	85 93-97 98-100 100 101 102-104 179
201-2 Financial implications and other risks and opportunities due to climate change	26 Climate risk - Financials and Notes TCFD Assessment – Appendix	126 190-195
201-4 Financial assistance received from government	11 Intangible assets and goodwill - Financials and Notes	106-107
GRI 203: Indirect Economic Impacts 2016
3-3 Management of material topics	Prosperity for All	66-68
203-1 Infrastructure investments and services supported	Local communities - Prosperity for All	67
203-2 Significant indirect economic impacts	Local communities - Prosperity for All	67
GRI 205: Anti-corruption 2016
3-3 Management of material topics	Management model, corporate governance, control, and compliance – Board of Directors’ Report Aker Horizons’ Sustainability Policy - Aker Horizons’ Approach to Sustainability External Commitments and Initiatives Responsible business conduct - Good Governance Risk management and internal control under – Corporate Governance Report	21-22 29 34 70-72 156
205-1 Operations assessed for risks related to corruption	Responsible business conduct - Good Governance	70-71
205-2 Communication and training about anti-corruption policies and procedures	Responsible business conduct - Good Governance Full ESG Performance Metrics – Appendix Aker Horizons and the Portfolio’s Sustainability Summary Full ESG Performance Metrics – Appendix	70-71 179 77-80 180
205-3 Confirmed incidents of corruption and actions taken	Responsible business conduct - Good Governance Full ESG Performance Metrics – Appendix	71 180
206: Anti-competitive Behavior 2016
3-3 Management of material topics	Responsible business conduct - Good Governance	70-72
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices	Responsible business conduct - Good Governance Full ESG Performance Metrics – Appendix	71 180
GRI 302: Energy 2016
3-3 Management of material topics	Energy – Planet-Positive Impact	44-45
302-1 Energy consumption within the organization	Energy – Planet-Positive Impact	45
302-3 Energy intensity	Principal Adverse Impact Indicators - Aker Horizons and the Portfolio’s Sustainability Summary SFDR Principal Adverse Impact Indicators – Sustainability Accounting Principles and Methodology	81 171-172
GRI 304: Biodiversity 2016
3-3 Management of material topics	Biodiversity – Planet-Positive Impact	46-47
304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas	Aker Horizons’ and the Portfolio’s Sustainability Summary Principal Adverse Impact Indicators - Aker Horizons and the Portfolio’s Sustainability Summary SFDR Principal Adverse Impact Indicators – Sustainability Accounting Principles and Methodology Full ESG Performance Metrics – Appendix	77-80 81 171-172 176


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304-2 Significant impacts of activities, products and services on biodiversity	Biodiversity – Planet-Positive Impact Full ESG Performance Metrics – Appendix Principal Adverse Impact Indicators - Aker Horizons and the Portfolio’s Sustainability Summary SFDR Principal Adverse Impact Indicators – Sustainability Accounting Principles and Methodology	46-47 176 81 171-172
304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations	Full ESG Performance Metrics – Appendix	176
GRI 305: Emissions 2016
3-3 Management of material topics	Aker Horizons in Brief Climate Change – Planet-Positive Impact	3 40-43
305-1 Direct (Scope 1) GHG emissions	Climate Change – Planet-Positive Impact Aker Horizons’ and the Portfolio’s Sustainability Summary Greenhouse Gas Emissions calculations - Sustainability Accounting Principles and Methodology Full ESG Performance Metrics – Appendix	41 77-80 166-168 175
305-2 Energy indirect (Scope 2) GHG emissions	Climate Change – Planet-Positive Impact Aker Horizons’ and the Portfolio’s Sustainability Summary Greenhouse Gas Emissions calculations - Sustainability Accounting Principles and Methodology Full ESG Performance Metrics – Appendix	41 77-80 166-168 175
305-3 Other indirect (Scope 3) GHG emissions	Climate Change – Planet-Positive Impact Aker Horizons’ and the Portfolio’s Sustainability Summary Greenhouse Gas Emissions calculations - Sustainability Accounting Principles and Methodology Full ESG Performance Metrics – Appendix	41 77-80 166-168 175
305-4 GHG emissions intensity	Principal Adverse Impact Indicators - Aker Horizons and the Portfolio’s Sustainability Summary SFDR Principal Adverse Impact Indicators – Sustainability Accounting Principles and Methodology	81 171-172
GRI 306: Waste 2020
3-3 Management of material topics	Circular economy – Planet-Positive Impact	48
306-1 Waste generation and significant waste-related impacts	Circular economy – Planet-Positive Impact	48
306-2 Management of significant waste-related impacts	Circular economy – Planet-Positive Impact	48
306-3 Waste generated	Circular economy – Planet-Positive Impact Principal Adverse Impact Indicators – Aker Horizons’ and the Portfolio’s Sustainability Summary SFDR Principal Adverse Impact Indicators – Transparent reporting	48 81 171-172
306-4 Waste diverted from disposal	Circular economy – Planet-Positive Impact Full ESG Performance Metrics – Appendix	48 176-177
306-5 Waste directed to disposal	Circular economy – Planet-Positive Impact Full ESG Performance Metrics – Appendix	48 176-177
GRI 308: Supplier Environmental Assessment 2016
3-3 Management of material topics	Responsible supply chain management – Good Governance Aker Horizons and the Portfolio’s Sustainability Summary	72-73 77-80
308-1 New suppliers that were screened using environmental criteria	Responsible supply chain management – Good Governance	72-73
GRI 401: Employment 2016
3-3 Management of material topics	People – Board of Directors’ Report	22-23
401-1 New employee hires and employee turnover	People – Board of Directors’ Report People summary Full ESG Performance Metrics – Appendix	22-23 52 179
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees	Health, Safety and Well-being - Respect for People	59-60


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401-3 Parental leave	Diversity, equality and inclusion - Respect for People	63
GRI 402: Labor/Management Relations 2016
GRI 403: Occupational Health and Safety 2018
3-3 Management of material topics	Health, Safety, Security and Environment – Board of Directors’ Report Health, safety and well-being – Respect for People Management systems - Good Governance	23-24 59 74
403-1 Occupational health and safety management system	Management systems - Good Governance	74
403-2 Hazard identification, risk assessment, and incident investigation	Health, safety and well-being – Respect for People Health, Safety, Security and Environment – Board of Directors’ Report Management systems - Good Governance	59-61 23-24 74
403-4 Worker participation, consultation, and communication on occupational health and safety	Health, Safety, Security and Environment – Board of Directors’ Report Health, safety and well-being – Respect for People	23-24 59-61
403-6 Promotion of worker health	Health, safety and well-being – Respect for People	59-61
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	Health, Safety, Security and Environment – Board of Directors Report Management systems - Good Governance	23-24 74
403-9 Work-related injuries	Health, Safety, Security and Environment – Board of Directors’ Report Health, Safety and well-being - Respect to People Full ESG Performance Metrics – Appendix	23-24 59-61 179
GRI 404: Training and Education 2016
3-3 Management of material topics	Talent attraction and development - Respect for People Local communities - Prosperity for All	64-65 67-68
404-1 Average hours of training per year per employee	People summary Aker Horizons and the Portfolio’s Sustainability Summary Full ESG Performance Metrics – Appendix	52 77-80 178
404-2 Programs for upgrading employee skills and transition assistance programs	Talent attraction and development - Respect for People	64-65
404-3 Percentage of employees receiving regular performance and career development reviews	Talent attraction and development - Respect for People	64
GRI 405: Diversity and Equal Opportunity 2016
3-3 Management of material topics	Diversity, equality and inclusion – Respect for People Equality, diversity and inclusion – Corporate Governance Report	62 157
405-1 Diversity of governance bodies and employees	People summary Diversity, equality and inclusion – Respect for People Aker Horizons and the Portfolio’s Sustainability Summary Full ESG Performance Metrics – Appendix	51-52 62-63 77-80 177-178
405-2 Ratio of basic salary and remuneration of women to men	People summary Aker Horizons and the Portfolio’s Sustainability Summary Full ESG Performance Metrics – Appendix	52 77-80 178
GRI 408: Child Labor 2016
3-3 Management of material topics	Human and labor rights – Respect for People Responsible supply chain management – Good Governance	53-57 72-73
408-1 Operations and suppliers at significant risk for incidents of child labor	Human and labor rights – Respect for People	56-57
GRI 409: Forced or Compulsory Labor 2016
3-3 Management of material topics	Human and labor rights – Respect for People Responsible supply chain management – Good Governance	53-57 72-73


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409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor	Human and labor rights – Respect for People	56-57
GRI 411: Rights of Indigenous Peoples 2016
3-3 Management of material topics	Human and labor rights – Respect for People	53-55
411-1 Incidents of violations involving rights of indigenous peoples	Human and labor rights – Respect for People	55-56
GRI 413: Local Communities 2016
3-3 Management of material topics	Local communities – Prosperity for All Human and labor rights – Respect for People	67-68 53-55
413-1 Operations with local community engagement, impact assessments, and development programs	Local communities – Prosperity for All Human and labor rights – Respect for People	67-68 56-57
GRI 414: Supplier Social Assessment 2016
3-3 Management of material topics	Human and labor rights – Respect for People Health, Safety, Security and Environment – Board of Directors’ Report Responsible supply chain management – Good Governance	53-58 23-24 72-73
414-2 Negative social impacts in the supply chain and actions taken	Human and labor rights – Respect for People Aker Horizons and the Portfolio’s Sustainability Summary	56-57 77-80
GRI 415: Public Policy 2016
3-3 Management of material topics	Public policy engagement - Good Governance	75
415-1 Political contributions	Public policy engagement - Good Governance	75


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Stakeholder Engagement

During 2022, Aker Horizons engaged in ongoing dialogues with a broad spectrum of relevant stakeholders. The table below presents an overview of the various stakeholder groups, the type of

engagement and the prioritized topics Aker Horizons focused on. The overview shows only Aker Horizons’ own stakeholder engagement. For information on Mainstream Renewable Power and Aker

Carbon Capture’s stakeholder engagement, please see the companies’ respective sustainability reports.


Stakeholder group	Why Aker Horizons engages	How Aker Horizons engages	Stakeholders’ key ESG priorities in 2022
Investors/ owners	•Provide accurate, comprehensive and timely information about the company •Contribute to the formation of a good basis for financial market participants to make decisions related to the valuation and trade of Aker Horizons’ share	•Annual General Meeting •Board meetings •Press releases, analyst calls, conferences, investor roadshows and meetings •Quarterly presentations •Investor relations and ad hoc engagement meetings	•Mitigating climate change through the scaling of green solutions, •ESG challenges in the supply chains of green companies, especially raw materials •Land use challenges and biodiversity impacts •Responsible business conduct •Good governance, including ensuring that all members of the Board of Directors are well-versed and competent in sustainability matters, and have experience in addressing the interests of broader stakeholder groups •Sound materiality assessment to identify topics of financial and impact materiality •Transparent reporting, which highlights challenges as well as opportunities •General concerns around external factors that may slow the roll- out of renewables, CCS, hydrogen and green industry
Partners	•Build partnerships to accelerate the development of functioning commercial models, e.g. with suppliers, customers, co- owners, JV partners and technology providers	•Direct interaction with actual and potential partners through meetings, negotiations •Engagement with potential partners in industries at conferences, panel debates, etc.	•Reaching own sustainability ambitions within decarbonization, contributing to the expansion of green solutions •Industrial credentials important in the selection of partners •Governance high on the agenda for co-owners/JV partners •Transparent and responsible business conduct
Governments	•Share knowledge, showcase available technology solutions to reduce emissions and enable the energy transition •Contribute to accelerating the formulation and implementation of effective policy responses to climate change and energy security concerns •Communicate the need for efficient support schemes for solutions that are dependent on government support during an introductory phase	•Direct dialogue with key stakeholders, both nationally and locally •Contribution to public hearings •Company reporting, in line with emerging national and international regulations on sustainability performance and governance reporting •Indirect engagement through industry associations, participation at conferences and seminars, etc. For further information, see the section on Public policy engagement.	•Developing policies that speed up the deployment of solutions needed for the green transition •Considering international markets and policy developments when designing national policies and support schemes •Strengthening sustainability-related reporting, including standardization; currently particularly focused on greenhouse gas emissions. climate risk, human rights, diversity; emerging focus on biodiversity


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Suppliers	•Develop an understanding of the value chains required for new climate technologies and industries •Map capabilities, capacities, risks and offerings and how they fit with Aker Horizons’ needs when developing new assets •Engaging with key suppliers early in the process, aligning strategic priorities	•Regular direct dialogue, tender processes and contract awards •Top management engagement to understand strategies and priorities	•Strategic positioning for suppliers in the green transition - contributing to reaching Net Zero, increasing their proportion of revenue coming from “green projects” •Early-stage dialogue means that more concrete ESG topics are expected to be raised in the future
Employees	•Attracting, retaining and developing the right in-house talent •Informing measures as a responsible employer that wishes to develop and maintain a safe and healthy work environment, and promote equal opportunities	•Employee engagement surveys •Training and coaching •Regular job appraisals •Engagement with safety delegates •Internal communication channels •Staff meetings	•Contributing to Aker Horizons’ mission of reducing greenhouse gas emissions and promoting sustainable living, while creating value over time •Flexible working hours and work-life balance •Personal development and knowledge building
Local communities	•Building mutual trust as a foundation for developing projects •Understanding needs and expectations to create long-term value •Obtaining a social license to operate	•Regular engagement on a project-by-project basis •Meetings and calls •Conferences •Media engagement and public relations activities For further information, see the section on Local communities.	•Job creation •Local value creation •Retaining and attracting more people to work and live in communities •Support for local initiatives, e.g. culture and welfare
NGOs, civil society, industry Groups	•Building support and social acceptance for Aker Horizons’ projects and activities •Coordinating policy input with other industry and civil society actors	•Participation at conferences and seminars •Participation in industry associations •Direct engagement on topics of common interest For further information, see the section on Public policy engagement.	•Mitigating climate change through the scaling of green solutions •Building broader coalitions for climate action •Green industry development •Concern for biodiversity and the social impact of green industry
Banks	•Ensuring a good understanding of which ESG factors and requirements are considered in decision-making processes	•Meetings and ongoing communication	•Mitigating climate change through the expansion of green solutions •Land use and biodiversity •Raw materials sourcing •Governance, including anti-corruption •Transparency
Media	•Exercising thought leadership on topics associated with the green transition •Raising awareness, understanding and support for Aker Horizons’ technology solutions and projects •Reaching broader groups of stakeholders - including but not limited to shareholders, national and local authorities, lenders and commercial partners, NGOs	•Interviews •Op-eds •Conference attendance •Quarterly presentations •Press releases •Social media	•Aker Horizons' industrial plans for specific regions and local community development •Progress on scaling green solutions


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TCFD Assessment


Governance
1	Describe the board’s oversight of climate- related risks and opportunities.	Aker Horizons has active board oversight of climate-related risks and opportunities, and climate risk is part of the Board of Directors' Audit Committee's mandate. The Audit Committee members are specially qualified and have been selected with their sustainability credentials in mind, in addition to financial, risk and audit expertise. The mandate requires management to, once per year, present the climate-related financial analysis, the sustainability and climate risk materiality and stakeholder analysis and mitigating actions to the Audit Committee for their review. Further, the Audit Committee is mandated to review both financial and ESG reporting, and oversee systems for the management of risk. The 2021 Taskforce on Climate-related Financial Disclosures (TCFD) review - including both the disclosures and the process for establishing the disclosures - was presented to and reviewed by the Audit Committee. The recommendations provide the basis for a deepened understanding of climate-related financial risks, and will guide the company strategy to build resilience around climate-related risks. To ensure a unified Enterprise Risk Management (ERM) process, Aker Horizons has developed, across the portfolio companies, a process and a template for ERM that includes climate-related risks (further details in Disclosure 6). The results of ERM assessments are quarterly presented to, and considered by, the Board. Beyond designated risk reviews, the Board always addresses climate-related risks and opportunities when evaluating potential new investments for the Company’s portfolio and considers whether they are within Aker Horizons’ planet-positive mandate. Aker Horizons is currently working on further formalization and systematization of climate-risk assessments as part of this process. The Board of Directors is also responsible for approving of the Sustainability Policy that governs environmental aspects of Aker Horizons own performance, investment decisions, as well as Aker Horizons’ role as an owner of all portfolio companies. Climate risk is an integral part of this policy. The Board of Directors also approves the Annual and Sustainability Report, including the TCFD disclosures (as described in the Board of Director’s Report). Finally, the Board is involved in establishing management incentive schemes through the Remuneration Committee. Aker Horizons’ incentives provided for management are inherently intertwined with climate-related issues, including taking successful steps towards the expansion of solutions within renewables and decarbonization of industry, through investments as well as organic growth and project development. Successfully identifying and executing such opportunities requires close consideration to ensure they are that they are commercially viable under emerging climate-related regulatory, market and technological developments. Aker Horizons’ commercial targets include concrete ambitions on investments in green solutions, GW power capacity, and avoided emissions. The incentive scheme applies to all employees to a varying degree. For employees in executive and other key positions, such as the CEO, CFO and Investment Director, the general incentive scheme is accompanied by individualized targets associated with the commercial objectives. The Board annually reviews if Aker Horizons’ management incentives are sufficiently linked to climate- related risks and opportunities and the guidelines for executive compensation will be presented for approval by shareholders at the Annual General Meeting in 2023. The risk assessment and oversight process are further described in the annual Corporate Governance Report.
2	Describe management’s role in assessing and managing climate- related risks and opportunities.	Aker Horizons’ management performs quarterly enterprise risk assessments of the Company and across the portfolio. Climate-related risks and opportunities are integrated in the regular risk review of the portfolio, which is presented to the Aker Horizons’ CEO and CFO. Contributors to the quarterly risk review includes key functions within Sustainability, Compliance, Investments, Legal, Treasury and Finance. The overall management of climate-related risks and sustainability in Aker Horizons is ensured by the Sustainability Director, supported by other relevant functions. The Sustainability Director is also responsible for supporting portfolio companies in their pursuit of their climate ambitions. Aker Horizons is continuously working on improving the consistency of portfolio companies’ climate-related risk assessments and the quality of information flowing to the executive management (see further details in Disclosure 6). Management actively seeks input on climate-related assessments of investment opportunities. It is a priority to enhance the integration of climate-related risk assessments in the various stages of the investment process. In 2022, there was a continued focus on capacity-building around climate-related risks and opportunities across the management group, and increased collaboration on this topic across relevant functions (Finance, Sustainability, Risk and Research and Market Analysis). As described under Disclosure 1, incentives provided for management are inherently intertwined with climate-related issues, including taking successful steps towards the expansion of solutions within renewables and decarbonization of industry, through investments as well as organic growth and project development. Successfully identifying and executing such opportunities requires close consideration to ensure they are that they are commercially viable under emerging climate-related regulatory, market and technological developments.


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Strategy
3	Describe the climate- related risks and opportunities the organization has identified over the short, medium, and long term.	Summary and backdrop for the 2022 climate risk assessment Overall, climate-related financial risk for Aker Horizons is considered to be low. At an overarching level, the main transition risk faced is that the transition to a Net Zero world will be too slow or with insufficient magnitude because this is the very foundation of Aker Horizons’ business and strategy. In 2022, Aker Horizons conducted an exercise to identify how the outlook to reach the International Energy Agency’s Net Zero Emissions (NZE) scenario has been impacted by events over the past year, and considered how this affects Aker Horizons. This has shed light on some of the nuances of transition risk, which may have an impact on Aker Horizons. 2022 saw an increase in new policy announcements, leading to a narrowing of both the ambition gap and the implementation gap. The first is exemplified through policies and pledges not yet fully implemented, such as REPower EU and the strengthening of national climate contributions. The second is exemplified through strong policy packages already implemented, such as the US Inflation Reduction Act and measures in China’s 14th five-year plan. This is generally an encouraging development towards reaching the NZE scenario. While there was a surge in new climate policy announcements in 2022, market risk increased, which may limit or delay the impact of policies, coupled with a rise in novel challenges relating to the speed of implementation. Succeeding with the energy transition requires a massive growth in energy generation assets, but also substantial investments in transmission and storage systems. Inadequate policy design and a non- synchronized development may delay the overall speed of the transition. Regional variations in ambition and implementation speed also pose the risk of capital and resources being incorrectly allocated. In terms of physical risk, there will be risk associated with physical assets prone to the effects of extreme weather or chronic climate change, which must be managed. Below, a more detailed account of Aker Horizons’ climate-related risks and opportunities is presented. Policy In 2022, there has been a strong policy push. It is expected that substantial developments will take place in climate-related incentives and regulations that will increase demand for low carbon products and services offered by Aker Horizons and its portfolio. Nonetheless, concrete risks remain associated with regulations and public policy. The first and main risk concerns governments acting too slowly or doing too little, since many projects will be fully dependent on some form of government support during an introductory phase. This may be through subsidies (e.g. through the EU Innovation Fund), carbon pricing, contracts of difference, or other active industrial policies. This is crucial for driving down costs and new technologies and value chains becoming commercially viable. Also, unpredictable policy implementation may cause delays and generally presents an obstacle for scaling up of solutions. With the recent tailwinds of policy implementation, new issues connected to the speed of implementation have surfaced. Succeeding with the energy transition requires a close to complete reset of the current global energy system. Moving from a hydrocarbon-based energy system to a low-carbon energy system will not only require a massive growth in energy generation assets but also substantial investments in infrastructure for hydrogen transport and distribution, as well as investments in electricity transmission and storage systems at both grid level and locally. In most cases, grid and permitting issues are a governmental responsibility, while generation assets are held by corporates. This prompts a need for constructive public-private cooperation. There is risk that non-synchronized development will delay the overall speed of the transition. Permitting delays and physical grid connection constraints are examples of the concrete risks faced. Aker Horizons experienced transitional risk related to market design in Chile, where market design and transmission system remain dislocated, with operators exposed to an unfavorable differential in price between injection and withdrawal. For further information, see Financials and Notes, Note 26. Furthermore, a strong policy push is not uniform across all world regions, which constitutes a risk for individual actors. This is particularly the case for producers of globally tradable commodities, such as hydrogen, ammonia or steel. Energy cost is, and will continue to be, a major differentiator in the competitiveness of countries’ energy-intensive industry sectors – and contributes to very different starting points for energy and climate policies. All else equal, regions with high energy prices will have a stronger incentive for investments in energy supply while investment in processes that require energy input such as production of hydrogen and green steel, will be require more policy support than in regions with lower prices. With shifting energy markets, and great variation in the ambition and concreteness of climate and industrial policy, there is a risk for individual industry actors associated with tying up capital or production capacity in locations that may eventually have higher costs or less favorable support schemes. For further information on the risks and opportunities of public policy, and Aker Horizons’ work in this area, see the section on Public policy engagement.


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3	Cont.	Market Businesses involved in the development of green energy and green industry experience significant demand for renewable energy and decarbonization solutions across multiple industries, but are reliant on a well-functioning market for their input factors as well as for their solutions. Also, policies rely on a set of assumptions on how they translate into the real economy. Over the past year, there has been a sharp increase in market risks that affect these assumptions, including inflation, supply chain disruptions and interest rate hikes. For renewables to grow at a pace needed to both secure supply security and at the same time displace hydrocarbon-based energy production and consumption, project returns need to be at a level that incentivizes corporates to invest. During the past 12 to 18 months, the renewables industry has experienced a significant deterioration in project returns following an unprecedented increase in funding cost and input cost, such as PV panels and turbines, which has led to a slowdown in the growth in investment decisions. An increase in the levelized cost of energy for renewables projects, like that observed over the last 18 months, will result in less investments unless there is a response in power and/or PPA price that rebalances the return profile to a level that incentivizes corporates to invest. Simultaneously, supply chain issues that have resulted in delayed construction of renewables assets have further exposed risk related to fulfillment of commitments under long term offtake agreements. Another market risk is the fact that supporting physical infrastructure for green technologies is not fully in place, e.g. grid infrastructure, pipelines, storage, batteries, etc. Finally, for the green shift to succeed, customers’ behavior must also change. However, their ability to shift to new technologies (i.e., hydrogen, ammonia, carbon capture) is yet to be proven in many industries. Technology From a technology perspective, the first-mover challenge involves risks of write-offs or stranded assets. There is also a risk of under- or over-investing due to immature technologies and rapid technological development. In terms of opportunities, increased demand may be expected for the technologies Aker Horizons is invested in if the companies succeed in investing in and scaling attractive technologies and solutions compared to peers. Reputation From a reputational perspective, there is a risk of being identified with (or not distinguished from) the oil and gas related operations of the wider Aker group. At a general industry level, there has been negative attention linked to adverse impacts from renewable energy production and its supply chain, as well as conflicts with local communities. However, being a green investment company (providing amongst other solutions for CO₂ emission reduction) is generally deemed to have a significant a positive impact on reputation, including recruitment. Further, engagement with and the involvement of local communities in the vicinity of renewables projects represents an opportunity to identify potential areas of conflict early, reduce adverse impacts, and thus also reduce reputation risk. Taking steps to build a reputation as a responsible investor/developer also from a climate risk perspective, represents a significant opportunity for Aker Horizons and the portfolio companies. Legal Legal risk, understood as lawsuits, litigation, etc., associated with climate risk, is not considered a high risk for Aker Horizons, given the company's sole engagement in planet-positive activities aiming to accelerate decarbonization of society. While associations with the broader Aker system and involvement with the oil and gas sector may represent a reputational risk in the case of lawsuits, Aker Horizons is not expected to be the direct subject of legal action. Physical Physical risks, both acute and chronic, related to both extreme weather events as well as rising sea levels, are relatively low for Aker Horizons directly but exist for several of the portfolio companies. Climate change-induced natural perils, such as extreme windstorms, earthquakes, floods of any type including storm surges, and hail and lightning storms, are potentially significant external hazards which represent risks to both safety (of staff, contractors, and neighbors), as well as property damage, which can furthermore cause costly delays to construction or interruption to power generation and revenue, or changes to estimated production output. Therefore, Aker Horizons’ portfolio companies increasingly take strategic actions to ensure the robustness and resilience of our assets to mitigate physical risk and drive down the total cost of risk to our business. Furthermore, physical climate risk may play a role in exacerbating other risks faced – for instance, the transitional risk experienced by Aker Horizons in Chile was exacerbated in part by physical climate risk due to weaker hydrological conditions. For further information, see Financials and Notes, Note 26. On the opportunity side, there are few significant opportunities identified for Aker Horizons or the portfolio companies beyond an ability to calculate risks and recover faster from extreme weather events compared to competitors. However, activities intended to mitigate and adapt to risks may be performed through community involvement, awareness-raising and local projects targeting physical climate risk mitigation (for instance planting of mangrove forest to mitigate flooding, etc.).


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4	Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.	Aker Horizons’ overall business and strategy is founded on a commitment to create a planet-positive impact by developing green energy and green industry. This is anchored in a motivation for climate action and a drive to accelerate towards the drive to Net Zero. As a result, Aker Horizons’ strategy is inherently shaped as a response to climate-related risks and opportunities. Aker Horizons’ investments are currently placed within growth areas such as CCS, offshore and onshore wind power, hydrogen and solar power. To realize future projects and opportunities, Aker Horizons is keen to create robust business entities and establish good models for partnerships and alliances. Aker Horizons continuously aims to take steps towards the expansion of solutions within renewables and decarbonization of industry, through mergers and acquisitions as well as organic growth and project development. Aker Horizons has developed measures to support portfolio companies in their own processes for strategy development, risk management and financial planning, and in targeting new investments to further develop the portfolio. A key priority for Aker Horizons going forward involves further developing processes to continuously assess policy developments and policy instruments (subsidies, carbon quotas/regimes, licenses) as factors in strategic decision-making and financial planning. As described under Disclosure 6, Aker Horizons has a research and analysis team that continuously monitors climate-related policies, regulations, technology, commercial and market developments which feed into the company's strategy, investment decisions and project development activities. Climate risk also impacts on Aker Horizons’ financial planning, as exemplified through Aker Horizons’ issuing of its first Green Bond in February 2021 under Aker Horizons’ and Aker ASA’s Green Finance Framework.
5	Describe the resilience of the organization’s strategy, taking into consideration different climate- related scenarios, including a 2°C or lower scenario.	Aker Horizons’ overall business and strategy is founded on a commitment to create a planet-positive impact by developing green energy and green industry. This is anchored in a motivation for climate action and a drive to accelerate the drive to Net Zero, and involves investing in companies that contribute to solving the climate crisis by accelerating decarbonization and providing the solutions needed in a 1.5°C scenario. In other words, the commercial opportunities created by climate action. Aker Horizons uses the International Energy Agency’s (IEA) Net Zero Emissions (NZE) 2050 as its main guiding global scenario for identifying and assessing opportunities. As described under Disclosure 3, Aker Horizons has conducted an exercise to identify how the outlook to reach the IEA’s NZE scenario has been impacted by events over the past year, and considered how this affects Aker Horizons. This has shed light on some of the nuances in the risks associated with the stated policies scenario, the announced pledges scenario, the NZE scenario, and the pathway to reaching the latter. Moreover, Aker Horizons’ research and analysis team continuously analyzes scenarios based on a variety of market assumptions, such as power prices, commodity and CO2 prices. This is used to evaluate the commercial viability of projects and potential investments, as well as pathways to net zero.


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Risk management
6	Describe the organization’s processes for identifying and assessing climate- related risks.	Aker Horizons assesses its own and its portfolio companies’ exposure to climate-related risks and opportunities. Aker Horizons assesses portfolio and enterprise-level risk and opportunity exposure qualitatively across various topics on a quarterly basis through the ERM system described below, climate risk in-depth qualitatively and very high-level quantitatively on an annual basis, and has plans to introduce more detailed quantitative assessments for climate risk specifically. Portfolio and enterprise-level risk management systems The implementation of Aker Horizons’ risk management systems has focused on establishing a structured format to collect risk data from portfolio companies and support them in identifying and assessing their own risks. To ensure a unified Enterprise Risk Management (ERM) process, Aker Horizons has developed, across the portfolio companies, a process and a template for ERM that includes climate-related risks. Portfolio companies are requested, on a quarterly basis, to provide an assessment of the risks most critical to their business within four broad enterprise-level risk categories. Climate risk is found to touch upon two of the main categories: Strategic and market risk (Transition risk), and Project and operational risk (Physical risk). For each category, the portfolio companies are asked to identify a minimum of three and a maximum of ten top risks, using the provided template. Aker Horizons does a similar exercise for its own company and enterprise-level risks. The results for both Aker Horizons and the portfolio are aggregated and then submitted to the Audit Committee for review. Also at the portfolio company level, all Aker Horizons Group companies are currently taking steps to design climate risk assessment into the decision gates of new investments, as well as assess existing assets. Physical climate risk assessment will also be a requirement under the EU taxonomy, which will provide guidance on how to approach this assessment for each individual asset. Aker Horizons expects its portfolio companies to identify and manage climate-related risks as part of their core business procedures. Aker Horizons encourages all portfolio companies to report their climate-related risks and opportunities according to TCFD, which Aker Horizons uses in its assessments of the portfolio companies’ exposure to risks and opportunities. Aker Horizons assesses its entire risk matrix annually through a process involving the major functions within the organization, such as the investment team, finance, treasury, legal and compliance, sustainability and investor relations. This annual review process ensures the risk matrix is tailored to the Board’s monitoring and strategic priority considerations. It is also an important tool for management level decisions. The comprehensive annual risk review guides the quarterly enterprise risk management system. Findings from these reviews are formalized and published annually in the companies' ESG /Sustainability reports. Annual climate risk assessment In 2021, Aker Horizons carried out a climate risk assessment supported by independent third-party experts on climate-related topics, as well as qualified consultants who facilitated aspects of the risk review process. This included separate workshops with relevant executives from each of the Aker Horizons Group companies to identify climate-related risks and opportunities. The results were presented to the senior management team of the respective companies, and to Aker Horizons’ Audit Committee before being published. In 2022, internal dialogue was conducted during the year, including in a workshop between sustainability, finance, and research and analysis. Moreover, Aker Horizons strengthened its research and analysis team in 2022. This team continuously monitors climate-related policies, regulations, technology, commercial and market developments that feed into the company's strategy, investment decisions and project development activities. There has been an internal review of how different climate-related scenarios may impact Aker Horizons and what has changed since 2021, as reflected in the overview of identified risks and opportunities. The ambition with respect to assessing climate-related risks going forward involves introducing more quantitative scenario-based analyses and incorporation into Aker Horizons’ financial m, in order to give an even more robust impression of the company's own and the portfolio's exposure and resilience to climate-related risks and opportunities.
7	Describe the organization’s processes for managing climate- related risks.	The quarterly risk review described in Disclosure 6 involves reviewing: •Changes in estimated impact or probability of previously identified risks •Newly identified risks, including an estimate of impact and probability, and proposed mitigating actions •Progress of mitigating actions taken, how they have affected the risk assessment and, where applicable, additional mitigating actions Thus, the Enterprise Risk Management system is used to evaluate strategies to mitigate risk at the management and Board level, including climate-risks to the extent they are considered critical enough to be included in the short-list. In addition to Aker Horizons’ procedures for risk management, the portfolio companies have individual processes for managing climate-related risks. Management of project and operational risk, including physical climate-related risk affecting projects and operations, lies primarily with the portfolio companies. Nevertheless, Aker Horizons monitors and follows up risk through regular dialogue with the managements of the portfolio companies and through participation on their boards.
8	Describe how processes for identifying, assessing, and managing climate- related risks are integrated into the organization’s overall risk management.	The climate-related risk assessment process is integrated into the overall risk management system of Aker Horizons. At the portfolio level, the companies are using the enterprise risk template, which when reported to Aker Horizons is compiled into an overall risk assessment. This is further described in Disclosure 6, as well as mentioned in disclosures 1, 2 and 7.


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Metrics & targets
9	Disclose the metrics used by the organization to assess climate- related risks and opportunities in line with its strategy and risk management process.	Aker Horizons’ overall business and strategy is founded on a commitment to create a planet-positive impact by developing green energy and green industry. Central to this ambition is the understanding of impact. Understanding how to measure such impact is therefore central to the Company. For instance, the Company considers reduced/avoided emissions, captured CO2e and renewable energy capacity as relevant metrics to assess climate-related risks and opportunities. The green bond issued by Aker Horizons also requires the impact of such aspects to be reported on. As an active owner, Aker Horizons engages with all its portfolio companies to ensure that the GHG emissions for Scope 1, 2, and partly 3 are calculated and reported, and that the companies have set ambitions for GHG emission reduction. To monitor and track the portfolio’s progress, Aker Horizons has, in 2022, been working on improving consistency in GHG emission reporting across the portfolio, and will continue to do so in 2023. For further information, see the section on Climate change. Aker Horizons also tracks energy usage and share of renewable energy, as well as other metrics related to climate performance. Additionally, Aker Horizons supports the assessment of activities in relation to the EU Taxonomy Regulation across its portfolio. It will continue working with comprehensive taxonomy screenings for a thorough and compliant reporting of taxonomy-related quantitative metrics in the future. A preliminary assessment of Aker Horizons’ investments vis-à-vis the EU Taxonomy can be found in the section Taxonomy Status. Finally, Aker Horizons monitors and tracks relevant market metrics that influences the Company’s business, such as power prices, commodity and CO2 prices – as described under Disclosure 5.
10	Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.	Aker Horizons’ 2022 GHG emissions were: Scope 1: 772 tonnes CO2e Scope 2: 5,576 tonnes CO2e (location-based) Scope 2: 5,690 tonnes CO2e (market-based) Scope 3: 21,462 tonnes CO2e (location-based) Scope 3: 21,476 tonnes CO2e (market-based) For further details on Aker Horizons’ climate impact, see the section on Climate Change. For details on the approach to calculating greenhouse gas (GHG) emissions, see the section Transparent Reporting.
11	Describe the targets used by the organization to manage climate- related risks and opportunities and performance against targets.	Aker Horizons has set concrete ambitions for its contribution to climate solutions. By 2025, it will strive to have achieved: •NOK 100 billion in green investment •10 GW in renewable power capacity •25 million tonnes of CO₂e p.a. emissions reduction As a developer of green projects, Aker Horizons and its portfolio companies must also reduce the footprint of their own operations, and cut emissions in line with the Paris Agreement. Aker Horizons has been committed to the Science Based Targets initiative (SBTi) since the start of 2022. Due to the changes to the Aker Horizons Group’s carbon accounting methodology for 2022 mentioned above, the process of developing and submitting targets for approval has been put on hold, with the ambition reinitiate the process in 2023. By committing to the Science Based Targets initiative and establishing the ambition to set long-term science-based targets to reach net zero and align its business with a 1.5°C future, Aker Horizons is also recognized as part of the Business Ambition for 1.5°C and the Race to Zero campaigns. The current 2025 ambitions communicated by Aker Horizons across Scope 1, 2 and 3, albeit not updated to the new accounting approach, are: •Absolute Zero Scope 1 emissions •100 percent renewable energy •100 percent of portfolio companies committed to both Net Zero and SBTi


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