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Apraava Sustainability Report 2020-2021 37

Key Risks and Mitigation Strategy
Risk mitigation at the entity level for HSSE and sustainability preparation of mitigation strategies. The key risks identified
parameters is managed through the identification and during the reporting period are mentioned in Figure 7.

Figure 7: Key risks & mitigation strategy

Risk Risk Description Mitigation

Safety and Risk of incidents leading to • 'Safety comes first at Apraava Energy' has been the guiding principle
Wellbeing injury or fatality that has led Apraava Energy in its efforts towards building a safety-first
culture, even as we expand our business through the country. Apraava
Energy’s Health, Safety, Security and Environment (HSSE) management
system provides a unified framework for compliance to CLP Group and
Apraava Energy’s HSSE requirements.
• Proactive crisis management, application of safe working practices and
emergency drills performed regularly
• Our goal is zero injuries in all our workplaces all of the time. We
acknowledge that we may not achieve this aim in all of our operations
on a daily basis, but it remains our goal because it is our aspiration.

Climate Change and Climate change is driving the global Our long-term climate strategy has the following important aspects:
Environment energy transition. Environmental • No more investment in fossil-fuel-based electricity generation
challenges such as climate change and
resource use can have a tangible • Only investments in low-carbon businesses, such as wind, solar,
impact on businesses like ours and their transmission, and other related sectors
value chain, therefore staying resilient • Continue to expand our renewable energy portfolio and deploy new ways
will be crucial for long-term success. to finance these projects
• Explore Power Purchase Agreements (PPAs) to sell renewable energy to
Failures in environmental impact customers directly
management causing non-compliance • Ensure operational excellence across all of our assets and explore the use
and/or severe environmental impact of advanced cleaner technologies when they become available
may lead to significant
compensation/fines and clean-up costs • Proactive environmental management and compliance monitoring on sites

Economic Apraava Energy’s business strategy is to The power industry is recognised for its high investment costs, capital
Performance focus on business activities and intensity and long payback periods with compounding risk factors. The
initiatives that best utilise our core ability to arrange timely, cost-effective, diversified, multiple-tenured and
competencies, deliver on the potential sustainable funding is critical in managing and growing our business. We
of our investments and generate growth are highly committed to preserving our robust capital structure,
for our investors. maintaining strong investment grade credit ratings, keeping and
cultivating good, long-term business relationships with lenders and
investors and reserving financial strength and flexibility to meet business
objectives and contingencies. With our growing business portfolio, we are
exposed to multiple risks in liquidity, financing and refinancing, foreign
exchange, interest rates, counterparties and compliance. Our priority is to
clearly identify, carefully monitor and effectively manage their financial
related exposure, both in policy formulation and implementation.