Empower. Adapt. Evolve.
2023 SUSTAINABILIT Y REPORT
2023 SUNNOVA SUSTAINABILITY REPORT | 2 |
Contents
Introduction
A Letter from our CEO | 04 | |
A Letter From Our EVP of Sustainability | 05 | |
and Corporate Communications | ||
About Sunnova | 06 | |
Our Sustainability Strategy | 08 | |
Our Sustainability Goals | 10 | |
2023 | Financial and Operational Performance | 12 |
2023 | Sustainability Highlights | 13 |
Environmental
Opportunities in Clean Energy | 16 |
TCFD Alignment | 25 |
Product Circularity and End-of-Life Management | 33 |
Environmental Management System | 35 |
Social
Our Customers | 37 |
Our People | 39 |
Our Communities | 47 |
Human Rights | 54 |
Governance
Corporate Governance and Board Structure | 56 |
Sustainability Management and | |
Governance Structure | 58 |
Risk Management and Business Ethics | 60 |
Business Continuity and Incident Response | 62 |
Cybersecurity Governance | 64 |
Lobbying and Advocacy | 66 |
Procurement Management | 69 |
Dealer Management | 72 |
Appendix
Performance Data, SASB and GRI | 75 |
TCFD Index | 82 |
UNSDG Index | 84 |
Material Topic Definitions | 86 |
Financial and Operational Definitions | 88 |
Non-GAAP Reconciliation | 92 |
Forward Looking Statements | 95 |
Welcome to our interactive PDF sustainability report. You can easily navigate through the report by clicking on any of the navigation nodes, including the table of contents whether you are viewing it online in a browser or from a locally saved PDF on your desktop. You will also find that all links, whether inline or in footnotes, are clickable for your convenience. If you have any questions or feedback, please feel free to reach out to
us atesg@sunnova.com.
2023 SUNNOVA SUSTAINABILITY REPORT | Introduction | Environmental | Social | Governance | Appendix |
Introduction
- A Letter From Our CEO
- A Letter From Our EVP of Sustainability and Corporate Communications
- About Sunnova
- Our Sustainability Strategy
- Our Sustainability Goals
- 2023 Financial and Operational Performance
- 2023 Sustainability Highlights
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2023 SUNNOVA SUSTAINABILITY REPORT | Introduction | Environmental | Social | Governance | Appendix |
INTRODUCTION / A LETTER FROM OUR CEO
A Letter From Our CEO
4
We are proud of the company that we've become over the last 11 years. We've grown exponentially, innovated continuously, and led courageously to better meet the challenges of the global energy transition and the looming specter of a changing climate. As demand for clean, reliable energy grows, we are poised to meet the needs of customers and communities everywhere through innovative and adaptive energy services. With our expanded services in areas like Virtual Power Plants (VPPs) and grid services, our solutions have matured to help meet today's energy demands.
In 2023, we hit sizeable milestones by surpassing 400,000 customers, 2,000 employees, 1,090 megawatt hours and 2.5 gigawatts under management.
At the same time, this year presented challenges, with decades-high interest rates and strong macroeconomic headwinds. We recognize that adaptability is crucial to success during such times, and to that end, we've evolved our company's focus from an "energy as a service" company to an "adaptive energy services" company. This shift reinforces our role in the industry as a company that anticipates changes, adapts and evolves in the face of these opportunities. Our organization's updated service capabilities are broken down into three distinct categories- financing, service and management-highlighting our dedication to providing tailored solutions, ongoing system services, and energy management support. With our innovative technology platform, customized offerings, and customer-first approach, we are the trusted provider for customers' energy goals.
In a world where perceptions are manipulated, we stand firm in our commitment to transparency and integrity, choosing to focus on the facts. We are an adaptive
energy services company that has an unwavering focus on innovative technologies, integrated energy solutions, and quality control as evidenced by our investments in our Global Command Center and our Adaptive Technology Center - both designed to optimize our operations and provide our customers with a strong customer experience. Our investments in our customer service infrastructure serve to enhance and strengthen our customer service levels and capabilities, ultimately providing more resilience, reliability, and value for our customers.
At Sunnova, we have worked diligently to embed responsibility, sustainability and risk management into everything that we do to support the needs of our customers, communities, and employees. The transition to a net-zero economy is one that we are determined to realize. It requires innovation, bold action, thoughtfulness, and alignment with leading climate science,
all without sacrificing affordability, resilience, and energy equity.
As we look ahead, our focus remains on positively impacting customers and their communities by sustainably powering the home of the future through innovative solutions and unparalleled customer service.
We are excited to continue our sustainability journey alongside you as we continue to empower, adapt and evolve.
William J. (John) Berger
Founder, Chairman, President and CEO, Sunnova
2023 SUNNOVA SUSTAINABILITY REPORT | Introduction | Environmental | Social | Governance | Appendix |
INTRODUCTION / A LETTER FROM OUR EVP OF SUSTAINABILITY AND CORPORATE COMMUNICATIONS
A Letter From Our EVP of Sustainability
and Corporate Communications
5
This year marks our fourth year of formal sustainability reporting and the third year in which we have publicly reported our progress on sustainability goals. In just four short years, we have experienced significant growth that has seen us adapt and evolve the way in which we serve our stakeholders through our ever-evolving energy services. In this report, we transparently communicate our current progress on our strategy and our continuing plans to meet the needs of our valued customers, investors, regulators, communities, and employees.
Our company has experienced tremendous growth since we began our sustainability reporting. With the announcements of new programs, headcount growth, expanded service offerings, and more, we have matured in step with our industry, realizing new opportunities and risks as our industry and operating model continue to scale. We are keen to evolve our vision and goals aligned with our growth, and we return to the central question that informs our strategy: what topics are most important to our business with regard to long-term value creation, risk mitigation and addressing stakeholder needs?
As we make progress on our sustainability goals, many are still relevant, while some lack the nuanced context of the company we are today. This indicates the need
to reassess our materiality aligned with leading practices, including engagement across our many stakeholder groups. We've had productive conversations and have welcomed new perspectives to discover what is meaningful, measurable, and actionable toward our sustainability ambitions. Through our next materiality
assessment process, kicking off later this year, we intend to test these findings through engagement and will reframe our strategy with fresh perspectives that align with our adaptable business.
With new regulations in key markets, our team is focused on delivering reporting that is decision-useful and meets emerging regulatory requirements without exposing the company to undue risks. This provides us with another opportunity to reflect, consider how we organize our sustainability efforts, and ensure we have the right systems to keep
up with evolving trends. While not material at the moment, we maintain a keen focus on this area and see it as fundamental to our future sustainability efforts.
As we work to close out our 2025 goals, we look to 2030 excited to continue building a robust strategy based on the findings from our impending materiality assessment. We look forward to hearing from our key stakeholders as we continue to drive sustainable impact
to our business.
EVP of Sustainability and Corporate Communications
2023 SUNNOVA SUSTAINABILITY REPORT | Introduction | Environmental | Social | Governance | Appendix |
INTRODUCTION / ABOUT SUNNOVA
About Sunnova
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2023 SUNNOVA SUSTAINABILITY REPORT | Introduction | Environmental | Social | Governance | Appendix |
INTRODUCTION / ABOUT SUNNOVA
By the Numbers
Sunnova Energy International Inc. (NYSE: NOVA) is an industry-leadingadaptive energy services company focused on making clean energy more accessible, reliable, and affordable for homeowners and businesses. Through its adaptive energy platform, Sunnova provides a better energy service at a better price to deliver its mission of Powering Energy IndependenceTM. For more information, visit www.sunnova.com.
2012 | 2K+ | 419K+ | 2K+ |
Founded in Houston, Texas | Full Time Employees | Customers | Dealers, Sub-Dealers and |
New Home Installers |
45+ | 1,090 | 2.5 |
Megawatt-Hours of Energy | Gigawatts of Solar Power Generation | |
States and Territories | Storage Under Management | Under Management |
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All numbers as of 12/31/2023.
2023 SUNNOVA SUSTAINABILITY REPORT | Introduction | Environmental | Social | Governance | Appendix |
INTRODUCTION / OUR SUSTAINABILITY STRATEGY
Our
Sustainability
Strategy
Sunnova 2023 sustainability report reflects our commitment to transparency and accountability for the environmental, social and governance (ESG) aspects of our business.
This publication marks Sunnova's fourth consecutive annual sustainability report released to the public. Our strategy and reporting are informed through the lens of materiality, as defined in a sustainability context. Note that these disclosures and any reference in this report to materiality does not align with the SEC definition of financial materiality or similar definitions. We consider a topic to be material based on thorough stakeholder engagement to determine whether a corporate sustainability topic is of reasonably high importance to our stakeholders and high importance to our business. As part of our proactive sustainability strategy, our second formal materiality assessment will be conducted in the fall of 2024.
For more on our current materiality, see our Material Topics Definitions.
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2023 SUNNOVA SUSTAINABILITY REPORT | Introduction | Environmental | Social | Governance | Appendix |
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INTRODUCTION / OUR SUSTAINABILITY STRATEGY
STRATEGY
Sustainability is a cornerstone value of our business and integral to our success. Our sustainability strategy is two-fold. First, we seek to scale energy services to help our customers power their independence in ways that are environmentally responsible, socially equitable, economically affordable, and resilient. Simultaneously, we embed responsible business practices and risk mitigation into our operations to ensure the long-term sustainability of our business. This includes sustainability risk management overseen by our senior leadership and Board of Directors, and monitored and enhanced by our Sustainability Steering Committee.
REPORTING PERIOD
January 1, 2023 - December 31, 2023
BOUNDARIES
This 2023 sustainability report covers all activities under operational control of Sunnova Energy International Inc. ("Sunnova").
All financial data is in U.S. dollars.
Sunnova's United
Nations Sustainable
Development Goals
Alignment
TAXONOMIES
Sunnova's 2023 sustainability report was prepared in alignment with:
- Global Reporting Initiative (GRI) - core reporting standard.
-
International Financial Reporting Standards Foundation's (IFRS) Sustainability Accounting Standards Board (SASB) Solar Technology & Project Developers and Renewable Resources Fuel Cells and Industrial Batteries framework metrics. While this is the closest industry standard to our business, note that
Sunnova manages solar energy systems and offers financing and maintenance services to customers. We do not manufacture solar energy or battery equipment (solar photovoltaic modules, polysilicon feedstock, solar inverters or other related components). - IFRS' Task Force on Climate-related Financial Disclosures (TCFD)
- we align our climate change reporting with the TCFD framework and we conducted a full TCFD-aligned climate scenario analysis in our 2022 report. - Our sustainability strategy is also informed by the United Nations' Sustainable Development Goals (SDGs).
ASSURANCE
We continue to evaluate integration of third-party assurance in our sustainability reporting to demonstrate our commitment to transparency. Unless previously reported in a separate disclosure that has undergone third-party assurance, the disclosures contained in this report have not been third-party verified.
ADDITIONAL INFORMATION
To view our previous reports and examine our progress, please view our website. Questions and feedback on this report can be emailed to esg@sunnova.com.
2023 SUNNOVA SUSTAINABILITY REPORT | Introduction | Environmental | Social | Governance | Appendix |
INTRODUCTION / OUR SUSTAINABILITY GOALS
Our Sustainability
Goals
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Disclaimer
Sunnova Energy International Inc. published this content on 03 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 May 2024 04:18:02 UTC.