our sustainability strategy
the importance of tackling to climate change
Ormat has been committed to sustainability from the start. Our strategy centers on expanding clean, low-carbon energy capacity, fostering innovation, supporting employee development, maintaining responsible supply chain practices, and strengthening governance and community engagement.
Did you know?
In 2024, we began transitioning to a new ESG data collection and management system, designed to enhance the accuracy, completeness, and auditability of our emissions calculations and broader Sustainability reporting.
Our Sustainability Goals & Commitments
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• 5% average annual intensity (tCO₂e/MWh) reduction for Scope 1 & 2 emissions, compared to 2019 baseline -
Promote innovation in all our activities -
Prioritize our employees and their development -
Promote innovation in all our activities -
Commitment to a fair supply chain -
Continue synergy with the communities in which we operate -
Maintain strong values for solid governance
Sustainability Leadership and Governance
Ormat’s sustainability governance is built on three main pillars:
- Sustainability Committee at Board level - Responsible for overseeing environmental and sustainability performance, ensuring compliance, assessing climate-related risks, and providing recommendations to the Board
- Sustainability Team - Led by VP IR & ESG Planning & Reporting, the team coordinates implementation, tracks performance, and reports directly to senior leadership and the Board
- Executive & Functional Management – Senior executives and managers across functions (EH&S, HR, Legal, and other departments) oversee performance, manage social and governance programs, and advance Ormat’s sustainability goals globally and regionally
STEPS WE’VE TAKEN
IMPORTANT STEPS WE’VE TAKEN TO FURTHER DEVELOP OUR SUSTAINABILITYPROGRAM AND STRATEGY, MITIGATE RISKS AND IDENTIFY OPPORTUNITIES:
• Executed a materiality analysis to refresh Ormat’s material ESG topics.
• Conducted a climate risk analysis to assess material physical and transitional risks and opportunities.
• Performed climate risk scenario analysis to evaluate potential impacts under different emissions pathways and time horizons.
• Initiated a process to quantify the financial impacts of material climate risks and develop targeted mitigation plans.
Disclosure & Standards
• Completed a gap assessment for TCFD alignment, strengthening our ability to meet evolving disclosure expectations.
• Enhanced climate-related disclosures in alignment with TCFD recommendations and in compliance with California’s climate regulations.
• Continued calculating Scope 1 and Scope 2 emissions in accordance with the GHG Protocol Corporate Accounting and Reporting Standard.
• Expanded disclosures to include full Scope 3 emissions reporting, in line with the GHG Protocol Corporate Value Chain (Scope 3) Standard.
• Reported annually to the CDP Climate Change Questionnaire, receiving a score of ‘B’ for the second consecutive year, above the North America average.
Systems & Data
• Began transitioning to a new ESG data collection and management system, designed to improve the accuracy, completeness, and auditability of emissions calculations and broader sustainability reporting.
• Improved water-related disclosures to report withdrawals, consumption and dischage across our sites
The materiality map is a two-axis chart showing the ESG topics that are most important to Ormat and its stakeholders. Topics are positioned based on their level of importance to internal and external stakeholders. The upper-right area of the chart highlights the topics with the highest priority for both groups. These include:
- Environmental: Climate Risks and Opportunities, Climate Change Mitigation, GHG Emissions
- Social: Occupational Health and Safety, Community Engagement, Inclusion, Diversity and Belonging, Human Capital Development and Retention
- Governance: Corporate Governance, Ethical Business Practices and Human Rights, Anti-Bribery and Anti-Corruption, Regulatory Compliance
MATERIALITY ANALYSIS
The graph shows the most material topics that were identified and approved by senior management as part of the materiality analysis that was concluded in 2023.
The process included:
- A sector benchmark and review of global standards and government and business initiatives
- Questionnaire to rank relevant topics based on perception of importance to Ormat
- Interviews with various customers, suppliers, senior leadership, directors, and others.
sustainable development goals
The United Nations has 17 Sustainable Development Goals (SDGs) to address some of the world’s most pressing social, economic, and environmental issues. As a leading global renewable energy provider, we believe Ormat has an important leadership role to play in supporting the SDGs. We’ve identified specific SDGs where our operations have the greatest impact, including energy, economy, infrastructure, consumption, and climate.
did you know?
As of 2024, we hold 190 patents and patent applications, including 55 patents issued in the U.S. and 28 pending U.S. patent applications