Responsibility in Our Value Chain

Doral’s suppliers are our partners in success. Most of Doral’s procurement is based on engagements with contractors for project implementation, purchasing equipment such as solar panels, inverters, and energy storage facilities, as well as engagements with various professional consultants. In 2023, procurement volumes grew significantly due to the notable increase in the scale of renewable energy project installations, and this growth is expected to continue in the coming years.

Doral typically engages with top-tier suppliers in the market through long-term contracts. The Company conducts assessments of key suppliers and strives to engage with those committed to ESG aspects. During 2024, the Company began incorporating clauses related to ESG compliance in some supplier agreements and will continue this process. Additionally, in 2024, the Company implemented an internal procedure for social office procurement.

Supply Chain Responsibility and Encouraging Suppliers to Promote ESG

Doral is committed to advancing its ambitious environmental goals, including preparing to reduce environmental impacts in the supply chain as part of taking responsibility for our impacts throughout the value chain. To this end, starting from 2022, a request was made to Doral’s most central and significant suppliers with a dedicated questionnaire examining the supplier’s main activities to promote ESG, including assessing the existence of an ESG strategy and supporting goals, ethical infrastructure, initiatives to reduce environmental impacts, consideration of conducting a lifecycle assessment (LCA), managing aspects of biodiversity, and more. The questionnaire includes a request for reporting carbon emissions attributed to Doral, with the Company reporting its Scope 3 emissions since 2023, as noted in this report.

During 2023, the questionnaire was expanded and sent to additional suppliers in the U.S. and Europe, with a response rate of about 70% (7 out of 10 suppliers we approached). Most suppliers, who are international and global companies producing photovoltaic panels, have strategic and ethical infrastructure, significant goals and initiatives to reduce environmental impacts, activities to promote diversity and inclusion, community support, and more. Additionally, most suppliers reflect their activities in an annual sustainability report and adhere to full environmental compliance.

We plan to continue this activity alongside launching initiatives to empower the suppliers working with us. Furthermore, we plan to continue working with suppliers who demonstrated advanced management of the ESG domain within their operations.

Responsibility in Our Value Chain

Doral invests in various companies promoting environmental innovation that positively impact society and the environment. Although most of these companies are startups at the beginning of their business journey, we encourage them to build the infrastructure needed to address ESG from early stages, taking on a long-term perspective. To this end, during 2022, we conducted our first survey of portfolio companies and their ESG activities. We were pleased to learn that: