Browsing by Subject "risk management"

The demand for CO2-free electricity will grow in the future, which is expected to lead to an increase in onshore wind power capacity. Like all energy forms, wind power can have negative impacts on the environment, which can pose different risks for wind power companies. Several companies that have wind power in their portfolio have recently committed to biodiversity targets, typically aiming for no net loss or net positive impact on biodiversity. These targets are expected to be a possible avenue for competitive advantage, however, there is a research gap on whether biodiversity considerations can bring competitive advantage to companies. In my research, executed as a paid assignment for Fortum Renewables Oy, I examine wind power investors’ perceptions of biodiversity targets and whether they perceive that the targets can bring competitive advantage to wind power companies. In this thesis, I aim to provide answers to three primary research questions: 1) How do investors manage their investments’ biodiversity impacts? 2) Can setting biodiversity targets bring competitive advantage to wind power companies? and 3) What kind of biodiversity targets do investors value? For this research I interviewed investors known to invest in onshore wind power in Finland. I conducted seven interviews with eight informants, including both finance and sustainability professionals, representing seven different investors. I analysed the interview data using inductive thematic analysis provided by Braun and Clarke (2006). My research found that investors identify several possibilities for both risk mitigation and competitive advantage, which can be achieved through good biodiversity management. Thus, investors see value in biodiversity considerations, such as biodiversity targets. Simultaneously, investors recognised several issues regarding these targets, which hinder achieving competitive advantage through them. The findings of my research may prove useful both for companies that have or aim to set biodiversity targets and investors wanting to manage their investments’ biodiversity impacts.