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- Developing and generating for our planet
- Doral’s Contribution to Reducing Emissions and Addressing for Climate Change
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Innovation
Full chapter- Innovation
- A Leader in Israel’s Energy Storage Sector
- Doral Tech – Energy of Innovation
- A Bridge to Academia and Future Technologies
- Leading the Field of Dual-Use Renewable Energy Production in Israel
- Development of ‘Green Hydrogen’ Projects
- Development and Management of Environmental Infrastructure Integrated with Renewable Energy
- At the Forefront of Israel’s Green Electricity Market
- Reducing Water Consumption
- Preserving Biodiversity
- Waste Treatment and Promotion of Circular Economy
- Our Overall Environmental Impact – Greenhouse Gas Emissions Data
- Progress Against Targets
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- Responsible and Ethical Management of Our Business
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Corporate Management at Doral
Full chapter - Corporate Governance for ESG
- Business Ethics and Compliance at Doral
- Preventing Bribery, Corruption, and Conducting Internal Audits
- Information Security and Business Continuity
- Risk Management
- Responsibility in Our Value Chain
- Progress Against Our Targets
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Risk Management
Every year, prior to the approval of the Company’s annual financial report, the Company’s management conducts a discussion of the risk factors affecting the Company. These include macroeconomic risk factors, sector-specific risk factors, and risk factors unique to the Company’s activities. The discussion also covers the impact of these risk factors on the Company. The Company’s board of directors reviews the Company’s risk assessments, provides comments as necessary, and approves them as part of the Company’s annual report.
Environmental Risk Management
The Group’s companies’ policy on managing environmental risks focuses on aligning systems with legal requirements related to environmental risks. The goal is to minimize any potential negative impacts on the Group’s activities. Risk management is primarily conducted by the Company’s CEO, the Israel operations manager, the planning and regulation manager (for photovoltaic systems), and the CEO of Doral Environmental Infrastructure (for biogas systems). They perform continuous monitoring of regulatory developments affecting the Group’s activities, including environmental risks, and ensure systems are planned and built in compliance with legal requirements. This includes conducting risk surveys, preparing environmental documents, and obtaining necessary approvals from various authorities.
The Company is not aware of any significant environmental risks in Doral’s activities that have or are expected to have a material impact on the Group’s revenues, or any legal requirements related to environmental risks that have significant implications for the Group and its activities. The Company’s financial statements detail the identified risks, the measures taken to address them, and the Company’s practices to mitigate environmental risks during project planning and management.
At the beginning of 2023, Doral undertook its first implementation of the TCFD (Task Force on Climate-related Financial Disclosures) guidelines. This was done through a management forum that deeply examined various risks, including transition risks and physical risks, assessed them, and evaluated their potential impact on the Company, with a focus on financial implications. The team’s conclusions were presented to the Company’s management and board of directors and are now part of the Company’s work plan to prepare for these risks and leverage opportunities in the field. The process was based on the 4.5 RCP scenario.
Below are the main steps taken by the Company to implement the TCFD guidelines:
| Topic | Guideline Description | Doral’s Answer |
|---|---|---|
| Governance | Description of how climate change is managed in the various management mechanisms, company management, and the board of directors | The Company's work regarding the analysis of risks and opportunities in the context of climate change, which have the potential to have substantial impact on the Company's operations, revenues or expenses, were presented to the Company's management and then, to the Company's board of directors, reflecting the Company’s comprehensive approach to risk management. The Company intends to present a similar update to the management and the board of directors annually on this topic. To enhance corporate governance and effectively manage this field while adhering to the recommendations of the TCFD, the Company has outlined the following approach: 1. Conducting an in-depth analysis of climate change risks and opportunities led by the ESG corporate responsibility director, with active involvement from relevant managers within the Company. 2. Presenting the analysis to the Company's management for initial discussions. 3. Presenting the management's analysis and recommendations to the board of directors. 4. Implementing decisions made by the Company based on the analysis and recommendations. 5. Including relevant updates in the Company's annual sustainability report. |
| Strategy | How the organization integrates the issue of climate change in the business strategy, in understanding the changes in the business environment and in its financial planning | As a company dedicated to advancing renewable energy, we prioritize the integration of climate change considerations into our business strategy. In line with our commitment to environmental sustainability and recognizing the significance of proactive climate change preparedness, we actively map and analyze risks and opportunities associated with the impact of climate change on the planet, society, and our business. This analysis is conducted through a dedicated forum of managers within our organization. By exploring extreme scenarios, we engage in discussions regarding their potential effects, evaluation options, response strategies, and the corresponding financial implications. The risks and opportunities that the organization identified in the context of climate change in the short, medium and long term were ranked according to the probability of their occurrence, the estimated range of their occurrence, as well as the extent of their impact on the organization's business environment, strategy and financial planning. The discussion is based on the 4.5 RCP climate extreme scenario of the IPCC. The Company intends to expand and deepen the analysis of the identified risks given different climate scenarios. |
| Risk Management | The processes of identifying, evaluating and managing climate risks | As mentioned, the process of identifying and assessing the organization's climate risks was carried out as part of a dedicated managers' forum which discussed the consequences of extreme climate events and/or changes that are expected to occur globally as a result of the transition period to a low-carbon economy. Among the topics discussed at the forum were regulatory risks, technological risks, market risks, risks of damage to the Company's sites and facilities, as well as risks arising from damage to the supply chain and/or significant changes expected in the market following the energy crisis. A similar process was also conducted regarding the management of the Company's opportunities as a result of climate change - an area in which the Company has a major advantage as a player in the field of renewable energy. One of the risks identified as having a financial business impact that may affect the Company's revenues in the medium and long term is a chronic physical risk that results in a long-term change in climate patterns that may affect the utility of the facilities, the scope of electricity production and the Company's revenues. Also, on the manpower that builds and operates the facilities. This risk was defined as having a medium probability of gradual realization and steps were defined for implementation as part of the Company's preparation for this risk. However, none of the risks mapped and discussed in the dedicated managers' forum was found to be a material risk to the Company's operations. On the other hand, the Company has identified many opportunities to expand its activities as a result of climate change, which have the potential for significant business income. The Company is exploring these opportunities. The risks that have been identified will be integrated into the Company's action plan for the benefit of promoting a possible response and appropriate preparation on the part of the managers leading the relevant focus areas identified in the process. This step joins the environmental risk management process, in the context of the Company's impact on the environment in which it operates, as well as the Company's overall risk management. |
| Metrics&Targets | The indicators and objectives used to assess the climate risks in accordance with the organization's general risk management process and its strategy | The Company has defined a series of indicators to assess the realization of risks and opportunities related to climate change, such as: wear rate of solar panels, frequency of delays in supplying panels, insurance costs, and more. In addition, the Company defined a series of indicators to monitor opportunities in the field. The Company reports on greenhouse gas (GHG) emissions as part of its annual sustainability reports and has also begun to expand its reporting to Scope 3 emissions, including the collection of emissions data from essential suppliers. The Company formulated a decarbonization plan to ensure the achievement of its ambitious goals in order to achieve Ner Zero by 2030. The Company is committed to providing regular updates on its progress in identifying and addressing climate change risks, while also capitalizing on opportunities and further enhancing efforts to identify and manage all environmental risks. |