Real Assets
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Background:
Kölvallen is a 277MW onshore wind farm in Sweden, acquired for development in 2022, where the scale and duration of the construction phase made construction‑related environmental impacts a key stewardship consideration.
During sustainability screening and ESG due diligence undertaken ahead of acquisition, the environmental impacts associated with the construction phase at Kölvallen were identified as a material risk. Given the scale of the onshore wind development and the sensitivity of construction‑phase emissions, resource use and local disturbance, these impacts were assessed as having the potential to affect regulatory compliance, community relations and the long‑term resilience and value of the asset if not actively managed.
Prioritisation decision:
Given the materiality of construction‑phase impacts to both environmental outcomes and long‑term asset value, Foresight prioritised construction standards and contractor practices as core stewardship objectives from the point of acquisition. These issues were embedded into engagement priorities alongside financial and operational considerations, acknowledging the limited opportunity to mitigate construction impacts once build activities were underway. Construction‑related environmental risks were therefore embedded into stewardship priorities at acquisition and carried through the construction phase.
Engagement and stewardship activity during 2025:
Construction activity at Kölvallen continued during the first half of 2025, and engagement on environmental performance remained an active stewardship priority throughout the year. The site reached Commercial Operation Date in May 2025.
Throughout construction, Foresight used its ownership and governance rights to engage with project partners and contractors on construction methods, environmental controls and site‑level management practices, with a focus on mitigating emissions, minimising disturbance and managing environmental risks as construction progressed. This included setting clear expectations and oversight in relation to:
- the use of grid‑sourced electricity in place of conventional diesel generators for construction activities;
- the procurement of Electric Arc Furnace (EAF) steel, incorporating approximately 95% recycled content, to reduce embodied carbon;
- onsite quarrying of gravel and aggregate and onsite concrete batching, significantly reducing transport requirements and associated emissions.
Oversight of construction‑phase impacts formed part of ongoing asset‑level governance and monitoring during the reporting period, ensuring that environmental considerations remained integrated into decision‑making as the project advanced.
Outcomes and learning:
As a result of these measures, construction at Kölvallen achieved a 54% reduction in overall construction‑related emissions compared with conventional remote windfarm construction methods. Emissions reductions were delivered across key materials and activities, including power use, steel, aggregate and concrete, demonstrating the impact of early and sustained stewardship focus during the construction phase.
Continued engagement during 2025 reinforced the value of identifying and prioritising construction‑phase environmental risks at acquisition and maintaining active stewardship throughout the build phase. Learning from the Kölvallen project has informed Foresight’s broader Real Assets approach, supporting more consistent prioritisation of construction‑related environmental risks and the integration of sustainability considerations into project planning and delivery across other developments.
