Ormat Sustainability Report 2018

ORMAT TECHNOLOGIES, INC. Putting the Earth First: SUSTAINABILITY REPORT 2018 Our Economic, Environmental and Social Performance Highlights Olkaria III geothermal complex, Kenya, 150 MW 1 CHAPTER I. A MESSAGE TO OUR STAKEHOLDERS Don A. Campbell geothermal complex, NV, U.S., 39 MW 2 3 This report demonstrates performance over time. Risk Management: sustainability progress. our Company’s sustainability Ormat places high value in compliance proposition, which is based on our Furthermore, this year’s report with all relevant regulations. Applying In summary, Ormat is pleased to dispersed portfolio of geothermal, represents our Company’s best practices in risk management submit this sustainability report solar, recovered energy and energy response to requests from our throughout our business is key to to you, our stakeholders. Our storage facilities that provide stakeholders to broaden our helping us achieve this goal. commitment to encouraging clean and renewable energy. Our disclosure on sustainability and the use of renewable power and renewable assets, which have little environmental initiatives and • Geothermal Resource (Brine and to reducing GHG emissions are emissions, mitigated 5.5 million adopt a global perspective on Steam) Management: embedded in Ormat’s corporate tons of GHG emissions in 2018, with sharing that information. Ormat employs sound, environmentally DNA. We are firmly committed to electricity generation totalling 5.9 prudent strategies to manage the these goals as a Company and as million Megawatt hours (MWh). As such, a materiality assessment geothermal resource, made up of brine concerned members of the global was among the first activities carried and steam. We use predominantly closed society. We believe this report, and out as part of our GRI-reporting loop systems to minimize brine by- the effort our Company makes in ADOPTING THE GRI REPORTING pathway in 2018, which was carried products (as almost all of the geothermal collecting and analyzing the data STANDARDS out through a survey distributed fluid is re-injected into the geothermal it contains will help accelerate to key stakeholders. This exercise formations) and we support research and learning, engagement and support GENERATING FOR GENERATIONS revenues of US$719 million, due to Ormat believes that consistent enabled Ormat to “hear” what development to further reduce impacts. meaningful change. our renewable energy abilities and and rigorous performance stakeholders identify as the most Dear Stakeholders, activities. These results speaks to the measurement yields meaningful important environmental, social and • Local Employment and growing demand for clean, renewable and ongoing improvement. economic issues that we impact. Development: Thank you for your interest. Ormat puts the earth and the energy power. It reflects the hard work our Ormat applies these principles in These insights enabled us to align Ormat believes local people and needs of its people first. It’s who we people do in providing renewable the management of its business our sustainability report content communities should benefit from Sincerely, are; it’s what we do. energy safely, economically and operations and we seek to apply more closely with these expressed having Ormat as a neighbor. That’s in an environmentally responsible them as the basis for further viewpoints, ensuring that each why we have a policy of hiring locally, Ormat’s employees, their passion manner. Our Company recognizes elevating our sustainability performance area is objectively and as well as providing training programs and relentless pursuit of excellence the importance of the fight against reporting practices. This thoroughly evaluated, and that the to increase local employment and generates valuable energy from climate change and the imperative sustainability report for 2018 is data presented is material, clear, economic opportunities. renewable sources, fueling economic, of lowering greenhouse gas (GHG) Ormat’s first report developed consistent and readily comparable. social and environmental progress emissions, as well as how critical in alignment with the Global Ormat’s materiality assessment • Occupational Health and Safety, Isaac Angel and a stronger, more sustainable it is to address poverty and social Reporting Initiative’s (GRI) process identified the following key Operations and Emergency Planning: Chief Executive Officer future for all. inequality by encouraging local Sustainability Report Standards content priorities: Wherever Ormat’s people work, economic growth and employment (SRS). Adopting this well- we recognize our responsibility to We are proud of the impact that our opportunities. This is evident in the established global reporting • Climate Mitigation: provide the appropriate health and activities generate for people and the sustainable value Ormat generates standard for sustainability Ormat believes that fighting climate safety training, personal protective planet. This sustainability report aims by employing a global workforce that disclosure on environmental, social change is of the utmost importance equipment and safety awareness to reflect the sustainable aspects of contributes to the social fabric of the and governance (ESG) issues is and that CO2 emissions must be programming to achieve a our activities in 2018, what we do and communities in which we operate. an important step forward for addressed and significantly lowered, zero harm and an incident-free how we do it. us. Up until this report, and since largely by making renewable workplace. Safety is a top priority Another aspect of this strong 2010, we regularly shared with our energy options more accessible for Ormat and its stakeholders. performance is rooted in stakeholders bi-annual updates on and by developing new strategies Ormat continually works to ensure AT THE FOREFRONT OF Ormat’s business structure. As our general sustainability progress and technologies to increase the all our facilities are operated in DEVELOPING AND DELIVERING a vertically integrated Company and environmental and social adoption of lower or even emissions- a safe and responsible manner RENEWABLE ENERGY with significant involvement in initiatives. Through this, our first free renewable energy solutions. in order to protect employees, every aspect of the energy value sustainability report compiled contractors, local community For more than five decades, Ormat chain, we are able to envision the according to the GRI Standards’ • Ethical Business Conduct and members and others. has demonstrated unique vision challenges and opportunities Core reporting option, and paired Transparent Corporate Governance: and leadership when it comes in the renewable energy sector with our commitment to continue Ormat employees, management We invite you to read in this to developing renewable energy from the vantage point of an reporting annually according and Board members must comply report more about the specific solutions. We understand what it inventor, explorer, developer, to internationally-recognized and adhere with all regulations achievements Ormat has made takes to build resilient, world-class operator and manufacturer. reporting standards, we seek for corporate financial disclosure, in these areas throughout in 2018 renewable energy capacity and Leveraging these perspectives to ensure that our data is more sound business practices, ethics and across our operational portfolio. capabilities that endure. gives our Company and our comprehensive, and transparent. corporate governance, everywhere We also invite you to regularly stakeholders superior insight We believe this will enable us to we operate. visit our corporate website (www. In 2018, Ormat achieved record and agility. better analyze and improve our • Legal Regulatory Compliance and ormat.com) for updates on our 4 5 CHAPTER II. ABOUT ORMAT Value for the Environment, Society and Our Key Stakeholders Steamboat geothermal complex, NV, U.S., 65 MW 6 7 ORMAT AT A GLANCE Present in 100% US$3B US$719M US$368M 33 Local Total Assets FY 2018 FY 2018 Countries Electricity, Product Revenues Adjusted EBITDA* Empolyment & Other Headquartered in RENO, Nevada ~1,350 Employees U.S. Worldwide Largest Geothermal power producer in the U.S. 54 Years of 910 MW Over Experience in 25 Plants owned & operated** 180 Power Plants 18 Years ORA traded on NYSE Over Installed ** Weighted 2,900 MW Average PPA since 2004 supplied ** * For Reconciliation to U.S. GAAP Financial Information see page 95 ** As of year end 2018 8 9 ORMAT PRESENCE U.S.A 622 TURKEY ISRAEL GUATEMALA GUADELOUPE 43 HONDURAS 15 38 KENYA 150 INDONESIA* 42 *Ormat owns 12.75% interest in the 330 MW Sarulla Complex Ormat power plants Capacity (MW) Ormat manufactoring facilities Countries in which Ormat supplied services and equipment over the years 10 11 ORMAT: WHAT WE DO Net Revenues1 by geographical location and business Ormat Technologies, Inc. (“Ormat” segments: Exploration “We”, “Our”, “Us”, or “the Company”) is a leading renewable energy Company with over five decades Electricity of experience. Ormat is vertically integrated – engaged in the execution of all stages of development 465 510 and energy generation – at our geothermal and recovered energy Development Geothermal Power Plants Recovered Energy Power Plants Storage & Energy Management 204 power plants. These stages include: 170 exploration, development, drilling, Ormat is a global leader in the Our Recovered Energy power plants Energy storage systems use a design, manufacturing, construction, geothermal

Load more