Atlantica
Sustainable Infrastructure
Atlantica
Sustainable Infrastructure is a company that specializes in managing renewable
energy and other power assets. Its product portfolio includes efficient natural
gas, transportation infrastructure, water assets and transmission. It is a
publicly traded company listed in in NASDQ under the name AY
Atlantica was started in
the year 2013 as a clean energy provider in the UK. It was subsequently
incorporated in the same year as Abengoa Yield. The name of the company was
changed to Atlantica Yield in 2016. In 2017, Abengoa, the main shareholding
company in Atlantica Yield, agreed to sell off 16.47% of its shares to Atlantica
Yield
Atlantica Sustainable
Infrastructure initially operated as a private entity until it announced an IPO
in the year 2020. The company launched an offering worth $100,000,000 of green
exchangeable senior notes that are due to mature in 2025. It was formerly known as Atlantica Yield PLC
before it changed its name to Atlantica Sustainable Infrastructure in May 2020.
Atlantica’s aggressive product positioning strategy characterized by a strong
pitch towards sustainable practices in the world has seen the company grow
exponentially. By the end of 2020, the company had more than 450 employees and
asset portfolio worth more than $2.3 billion
Since incorporation,
Atlantica has made significant steps towards growing its product portfolio and
expanding its revenue potential. The company now owns over 25 assets with the
potential of 1496 megawatts of renewable energy. The company also has about 343
megawatts of efficient natural gas and about 10.5 cubic meter ft per day of
water desalination
The company has taken
various initiatives to grow and become competitive. It has gone through
challenges. For instance, the company recorded its first loss during the 2017
fiscal year. It suffered a basic loss per share amounting to $0.05.
Nonetheless, the company is continuing to take advantage of the growth
opportunities that present themselves. In July 2020, it announced plans to use
option to acquire tax equity investor’s equity interest available in Solana.
The company also recently announced an agreement to have up to 49% share in a
wind project capable of generating up to 596 MW in the US
Atlantica’s revenues have
grown exponentially despite being relatively new in the its industry. It
recorded $1.013 billion in revenue in its 2020 fiscal year. This represents a
$223 million rise since the year 2015, representing 28.2% increase. Atlantica’s operational model is guided by a
set of values and standards, which the company believes, are key to its
success. According to the management, integrity, compliance and safety are
always their priority. The company continually strive to achieve the highest
standards in terms of product quality and environmental sustainability. The
company also believes in value creation as a way to create long-term benefits
for shareholders.
Sustainability
History
2018 -
Atlantica Sustainability infrastructure became a signatory to the United
Nations Global Compact and selected Gender Equality as one of its fundamental
Sustainable Development Goals.
2019 -
Its first Environmental, Social, and Governance (ESG) report was published.
2019 -
They issued their diversification and inclusion policy.
2020 -
Joined the Women’s Empowerment Principles.
2021 -
They became a member of Bloomberg.
Triple Bottom Line:
Atlantica Sustainable Infrastructure strategy and business model focuses on leading the world’s energy transition toward clean energy and sustainable water. The company has a commitment to 6 of the 17 Sustainable Development Goals: Climate action, Affordable and clean energy, Clean water and sanitation, Decent work and economic growth, Climate Action, Gender equality and Life on land. With over $1 Billion in revenue, the company has an increased year after year cash available for distribution and higher dividends per share.
Does Atlantica’s sustainable vision
lead to higher profitability?
Over the last three years and as we can see reported on their GRI,
Atlantica has been able to generate over $1,000 million in revenue between 2017
and 2019. The business model and operation of the company made of this a
successful firm focusing on sustainability, and innovative technologies while
being profitable. Their Cash available for distribution has also increased over
the last three years, from $171 million in 2017 to $190 million at the end of
2019. The company also increase the payment of their dividends at $1.57 per
share in 2019, which represents a 49.5% increase compared to the same in the
year 2017.
Why did the organization choose to
make sustainability a key strategic vision?
To date, Atlantica Sustainable Infrastructure has acquired a diverse
portfolio of renewable energy, efficient natural gas, electric transmission
line and water contracted assets. With these assets, Atlantica Sustainable
Infrastructure has aligned themselves in such a way that their corporation
easily afford the inevitable transition towards a more sustainable power
generation mix. To further their sustainability vision, Atlantica Sustainable
Infrastructure has signed a ROFO agreement with AAGES.
How did they go about implementing
the sustainability vision?
Through this joint venture, both parties can invest directly into
the development and planning of contracted clean energy and water
infrastructure contracted assets, built by Algonquin, a North American
diversified generation (Atlantica Sustainable Infrastructure, 2020). In
addition, Atlantica Sustainable Infrastructure believes that they can achieve
natural growth through the expansion of their existing portfolio.
Was innovation increased? What role
did technology play in sustainability and innovation?
Technology has played an important
role in Atlantica Sustainable Infrastructures development. A greater portion of
their corporation is based around renewable energy assets. As a result of their
investments through the last generation, technology has enabled Atlantica
Sustainable Infrastructure to capitalize off renewable energy technologies such
as electricity production, heat and fuel creation and usage through solar,
wind, hydro and heat exchanged assets.
How well are they reporting on these
results?
According to Atlantica Sustainable
Infrastructure most recent ESG report, they have been able to leverage their
positioning in ESG to close over $400 million in new Green Financing in
compliance with Green Bond and Loan Principles. Consistent with their ESG
report(s), Atlantica Sustainable Infrastructure has been very transparent and
open to both their sustainability efforts and achievements according to their
ESG reports over the last generation.
Other organizations such as Patagonia, report their sustainability
efforts and performances. Similar to Atlantica Sustainable Infrastructure,
Patagonia reports their efforts through government entities and ESG reports
directly from the corporation themselves.
What are the
results obtained on each of the three bottom lines – profits, people, and
planet?
Regarding
Atlantica’s triple bottom line, Atlantica Sustainable Infrastructure has
reduced their GHG emissions by 14% in 2019. This 14% reduction equivalates to
4.7 million tons of possible CO2 emissions. From a social standpoint, Atlantica
has guaranteed 413 permanent employee contracts out of their 425 employees. Out
of their 425 employees, 74% of their permanent contracts are men with the
remaining 26% women. Annually, employees of Atlantica Sustainable Infrastructure
receive 49 hours of training, obtaining a 100% employee performance review
(Atlantica Sustainable Infrastructure, 2020).
In 2019, Atlantica was able to generate enough purified seawater
to meet the needs of about 2.2 million people while withdrawing less than 50%
of the limits allowed by the water permits.