Our sustainability journey is a natural extension of our mission.

As an industry leader working alongside our customers to address climate change, we are committed to sustainably growing all areas of our business – from bolstering our responsible sourcing practices to fostering an equitable and safe work culture to minimizing our GHG footprint.

This year’s Sustainability Report includes operational and program performance data from our fiscal year 2023 (October 1, 2022 through September 30, 2023). It covers many topics relating to environmental, social, and governance (ESG) including our safety culture, greenhouse gas performance, approach to ethics, responsible sourcing, stakeholder engagement, and more.

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Cover of Sustainability Report with other images in background with white fade

“Sustainability is not just a choice; it is our responsibility.

Our corporate success is intrinsically linked to the well-being of our environment. Through relentless innovation, eco-conscious practices, and a steadfast dedication to ESG principles, we aim not only to be leaders in our industry but stewards of a healthier, more sustainable world through the services we offer our customers. We are earnest in our work to help build a future where business thrives hand in hand with the planet.” 

Julian Nebreda
President & CEO, Fluence

Our Vision for Sustainability

Our sustainability vision requires assessing our daily operations and digital solutions through the lens of sustainability to further optimize our energy storage solutions, supply chain, and product lifecycle. We believe that by utilizing digital solutions at various stages in our operations, supply chain, and product lifecycle, we will create increased accountability to our operations through greater transparency and accelerate our progress toward greater social and environmental stewardship.

Responsible Sourcing

Fluence’s responsible sourcing strategy sets ESG expectations for our supply chain and drives accountability among our suppliers.

Responsible sourcing is a business imperative, safeguarding both people and the environment against the potential hazards stemming from supply chain failures. We maintain a rigorous system of supplier selection, engagement, education, assessments, and auditing to achieve supply-base integrity and the high standards we expect at Fluence.

The Fluence responsible sourcing mission is to proactively leverage opportunities and inherently mitigate risks in our supply chain. Our focus extends to managing modern-day risks associated with globalization and climate change, among other significant market megatrends. Our goal is to surpass existing procurement targets without compromising future growth and the long-term sustainability of our business.

Letters and Policies

 

 

 

Alignment with the UN Sustainable Development Goals

We support those UN Sustainable Development Goals (SDGs) where the Company’s particular strengths can help create meaningful impact. Fluence made a public commitment to the SDGs in 2023 that was aligned with our on-going work in the areas of gender equality, affordable and clean energy, industry, innovation and infrastructure, and climate action.

At Fluence, we believe we are strongly positioned to bring together science, people, technology, and the ideas needed to profoundly shape the trajectory of energy storage. Our commitment to advancing the UN SDGs is guided by our focus to lead the energy storage industry in sustainable business practices. We are dedicated to applying our knowledge, concepts, and innovation to help advance initiatives aimed at achieving those SDGs where our particular concentration of strengths may contribute to long- lasting and scalable effect.

Fluence Commissioning team members at a Gridstack energy storage project in Alessandria, Italy.

Fluence partners with Li-Cycle for recycling damaged batteries at Fluence-controlled locations in the Americas and EMEA. Li-Cycle’s two-step process can recycle lithium-ion batteries of all chemistries and enables up to a 95% recovery rate.

Environment

Fluence has a longstanding commitment to environmental stewardship. From establishing an ISO 14001 certification program to developing a cutting-edge circular economy framework and supply chain for our products and components, we are committed to continuously advancing our environmental performance.

We see environmental stewardship as a collaborative exercise. Our executive leaders set the tone, engineering teams innovate solutions, and supply chain teams adopt processes to help see that product components are responsibly sourced and manufactured.

Initiatives

  • Interweaving circular economy principles into full product lifecycle
  • Internal policy development
  • ISO 14001 expansion
  • Improving GHG performance

Letters and Policies

 

Commitments

  • Executed a Climate Risk Assessment for FY23.
  • Mitigated 60% of greenhouse gases (GHGs) associated with employee business air travel in FY23 2023.
  • Conduct a Product Lifecycle Analysis in between 2024-2025.
  • We plan to develop and evolve our decarbonization strategy from 2026 to 2028.
  • We plan to explore ways to reduce embodied carbon in our energy storage products from 2026-2028.
  • Be an industry leader on circular economy for energy storage 2026-2028.

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Teamwork makes the dream work as our Americas team pose at the Fluence booth at CLEANPOWER 2023.

 

Social

Our people and culture are at the core of our business—we’re committed to creating a welcoming and inclusive environment for all. Our sustainability framework looks to deepen our already strong emphasis on social sustainability practices.

Safety is the number one priority at Fluence and is included in Fluence’s core value of Responsibility — rooted in our heritage of power generation and industrial systems design. Safety is embedded in our company culture and the partnerships we build with our customers. We continually reinforce our commitment to safety through education and training.

At the office or onsite, we’re in good company with our fellow Fluents. Pictured here, team members enjoy a social event for the Fluence Global Innovation Centre in Bangalore, India.

Initiatives

  • Continue to foster a strong safety culture across the business
  • Uphold equal pay and anti-discrimination practices
  • Value and lean into our diverse workforce
  • Support employee resource groups
  • Encourage work-life balance and wellness
  • Minimize the societal impact of our operations through responsible sourcing

Commitments

  • Launch community engagement program between 2024-2025

 

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Fluence team member walks a Gridstack energy storage project alongside our customer in California, USA.

Governance

Transparency, accountability, and responsibility are central to how we operate our business and our sustainability program. Our business decisions are guided by the belief that sound corporate governance practices promote long-term value for internal and external stakeholders.

Risk assessment and oversight are integral to our governance and management processes. Additionally, Fluence maintains a well-established Code of Conduct and Ethics that all Fluence employees, suppliers, and vendors are expected to follow.

Fluence leverages various globally recognized ISO standards to ensure the highest levels of quality, safety, and environmental responsibility in our products and operations.

Initiatives

  • Board-adopted Corporate Governance Guidelines
  • On-going and robust compliance training
  • Compliance reporting tools and vendor screening

ESG Disclosure Framework Alignment

Commitments

  • Became a signatory member of the UN Global Compact in 2023.
  • Incorporated the Task Force on Climate-Related Financial Disclosures’ (TCFD) framework into our FY23 Sustainability Report.
  • Disclose to CDP in Calendar Year 2024.
  • Update FY22 materiality assessment in Calendar Year 2024
  • We believe we will lead the energy storage industry in accountability and transparency through digital sustainability by 2030.

LEARN MORE

Questions or Comments?

We welcome any questions or feedback on our FY 2023 Sustainability Report.

You can reach Michael Herod, Director of ESG and Sustainability, at esg@fluenceenergy.com
or Lexington May, VP of Investor Relations, at investorrelations@fluenceenergy.com.

 

Report Documents

View the FY 2023 Sustainability Report:

Read the Report

 

Past Reports:

View the FY 2022 Sustainability Report.

 

Forward Looking Statements

The Sustainability Report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements can be also identified by terminology such as “may,” “might,” “could,” “will,” “aims,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Forward-looking statements contained herein include, but are not limited to, statements regarding: (a) our strategic plans and goals; (b) potential disruptions to our operations and supply chain; (c) anticipated product expansion and our expectations regarding potential innovative design and impacts to sustainability of our products; (d) our goals, commitments, expectations, prospects, emissions, other environmental targets as well as external ESG commitments, including the timing and impact of becoming a signatory member of the UN Global Compact, the incorporation of the TCFD framework into future sustainability reports, development of end-of-life programs to incorporate into our future products, complete product Life Cycle Analysis, and publication of any carbon related goals, (e) development of the Fluence Circular Economy and potential impacts on the design, operations, and recycling of our products, and (f) timeline and development of Fluence’s Sustainability Vision. In addition, the quotations from management in this Sustainability Report and information relating to the Company’s operations and business outlook contain forward-looking statements. These forward- looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward- looking statements. The standards of measurement and performance contained in the Sustainability Report are developing and based on assumptions, and no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this Report can or will be achieved.

Such forward-looking statements are subject to a number of assumptions, risks, and uncertainties, including those described under the heading “Risk Factors” in Fluence’s most recent Annual Report on Form 10-K and in other filings Fluence makes with the Securities and Exchange Commission. New factors emerge from time to time, and it is not possible for us to predict all such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.