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 2025, 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.

Our Strategic Focus Areas

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. By working for a positive contribution to biodiversity in the development and management of renewable energy and infrastructure, Hafslund will be a driving force for the transition to a zero-emission society in a way that preserves biodiversity.

By 2035, we will:

• Develop 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.
• Use our position as a customer, partner, and investor to create positive ripple effects beyond our own operations.
• Define an ambition related to reducing the nature footprint from our upstream and downstream value chain by 2025.
• Reduce greenhouse gas emissions in scope 1 and 2 by 90 percent and scope 3 by 50 percent by 2035 compared to 2019.
• Build carbon capture facilities at Oslo's largest point source of emissions.

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. Hafslund has participated with input to political processes within energy, climate, and nature, and continues this work in 2025.

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 plans to build new renewable energy within hydropower, wind, and solar in Norway and the Nordics and contribute to more grid capacity.

By 2035, we will:

• Expand existing and build new hydropower.
• Become a leader in the development and construction of renewable projects within solar, wind, and offshore wind in Norway and the Nordics.
• 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 conversion from electricity to heat in buildings.
• Act faster in existing and new physical markets with the industry's strongest algorithms and system support.

We Will Drive Smart, Green Urban Development

Society will be electrified. The availability of renewable energy is increasing, but consumption is increasing faster. Hafslund wants to facilitate electrification that contributes to greener and smarter cities. Hafslund is a renewable energy company that, in addition to being a major producer of renewable energy, is helping to facilitate the cities of the future with central systems for thermal energy and solutions that contribute to electrification and energy efficiency. Hafslund works to establish smart, digital energy solutions that contribute to efficient and simple energy consumption and stable and predictable energy prices.

By 2035, we will:

• Develop the thermal energy system in Oslo and surrounding areas.
• Develop solutions that create value for businesses and end-users within electrification and energy efficiency.
• Invest in business concepts at the intersection of a smart city and the energy system.
• Be an active driver for green industries and jobs in Norway.