Hafslund's Corporate Strategy

The group's strategy defines five strategic focus areas with challenges that we will solve and milestones that we will reach in 2030 and 2035:

• We will become climate and nature positive.
• We will have the best minds.
• We will contribute to strong renewable growth.
• We will balance the energy system of the future.
• We will drive smart, green urban development.

Below you can read more about what we mean by these five initiatives.

Climate and Nature Positive

Hafslund recognizes that climate change and loss of biodiversity are inextricably linked. The group bases its operations on the Paris Agreement and the global Kunming-Montreal framework for biodiversity. More renewable energy is crucial to achieving national and international goals to limit greenhouse gas emissions in all sectors, while energy production requires land and affects biodiversity. To achieve climate goals, nature must be preserved, and to protect biodiversity, a climate transition and rapid shift to more renewable energy are needed. Hafslund will be a driving force for the transition to a zero-emission society in a way that preserves biodiversity.

By 2035, we will:

• Minimize emissions in our own operations
• Remove CO2 from the natural cycle
• Work towards net zero biodiversity loss in new projects and enhance biodiversity around existing facilities
• Use our position to create positive ripple effects beyond our own operations

Our specific ambitions towards 2035:

• Develop a portfolio of energy projects that from 2035 will have net zero loss of biodiversity.
• Measurably improve conditions for biodiversity from 2023 levels in the existing portfolio of facilities.
• Reduce greenhouse gas emissions in scope 1 and 2 by 90 percent and scope 3 by 50 percent by 2035 compared to 2019.
• By 2030, reduce emissions equivalent to 350,000 t CO2 through CCS at Klemetsrud.

Important work is underway from the authorities to develop framework conditions and measures within climate and nature policy to ensure renewable energy production while preserving nature. National goals set the framework for Hafslund's operations, directly and indirectly. In light of the group's ambitious strategic goals within energy and nature towards 2035, the company will be a constructive and proactive contributor to the authorities' work with framework conditions in the field, where Hafslund demonstrates in practice how the group's common challenges can be solved.

The Best People Are Key

Without the best people, Hafslund will not succeed with any of the other ambitious initiatives and goals the group has set for 2035. Therefore, Hafslund will strive to be the workplace where talents come and knock on the door. Hafslund is curious about its employees and wants to facilitate a workday where each individual can realize their potential, feel strong motivation, and experience development. It should be meaningful and fun to work at Hafslund, and the group should be a place where employees envision having a long, exciting, and developing career.

By 2035, we will:

• Ensure an open, safe, and secure work environment.
• Strengthen diversity and create an inclusive culture to maximize value creation.
• Invest in long-term and targeted development of leaders and employees.
• Be visible as an attractive workplace.

Strong Growth in Renewable Energy

The green transition has created an enormous need for new renewable energy and more grid capacity, especially in Eastern Norway, and the increasing scarcity of renewable energy leads to rising energy prices. Without increased energy production and lower price levels, Norway will not succeed in being attractive for new green industries and important jobs. Hafslund will be part of the solution to achieve this and has plans to develop new renewable energy within hydropower and onshore wind in Norway, and explore further opportunities within renewable energy in the Nordic region.

By 2035, we will:

• Expand existing and build new hydropower.
• Become a leader in the development and expansion of onshore wind.
• Work for framework conditions that ensure energy development that contributes to achieving climate goals.

Balance for the Energy System of the Future

All controllable fossil energy sources in Europe's energy mix must be replaced with renewable energy sources to achieve net zero emissions. Most of today's production technologies within renewable energy cannot be regulated. The energy system must still be in balance and must be balanced with controllable sources or storage media. Hydropower functions as a huge battery with controllable reservoir capacity. The need for controllability increases, and Hafslund will strengthen the group's ability to contribute to balance in the energy system.

By 2035, we will:

• Increase the ability to regulate hydropower.
• Develop solutions for aggregation and control of production, consumption, and storage.
• Relieve the power grid through the thermal energy system in Oslo.
• Act faster in existing and new physical markets with the industry's strongest algorithms and system support.

We Will Drive Smart, Green Urban Development

We will undergo an energy transition, from fossil fuels to electricity produced from renewable sources. This requires infrastructure that facilitates this, such as district heating and power grids. Hafslund develops and owns infrastructure that enables the energy transition in cities and regions, and is an important contributor from a preparedness perspective. Through the Group's expertise in the interaction between electricity, heat and other energy infrastructure, Hafslund contributes to a more efficient, stable and sustainable energy system.

Towards 2035, we will:

• Develop the thermal energy system in Oslo and the surrounding area.
• Be an active driver for infrastructure that enables the energy transition
• Contribute knowledge to the debate on energy preparedness and the holistic energy system