A good year for Anora in sustainability: reduced emissions and improved ESG ratings in 2023

Anora's vision is to be the leading Nordic wine and spirits group delivering growth through sustainability, and we are committed to the ambitious targets in our sustainability roadmap to 2030 entitled "Regenerate the Future".

"Sustainability is at the core of our strategy and the base of our production set-up. Our ambition is that by 2030, Anora will set the industry standard for sustainability. The roadmap is built on the strong foundations of our previous work and the more than decade-long investments Anora has made in sustainability," says Petra Gräsbeck, Communications and Sustainability Director at Anora.

In February 2024, Anora was awarded the Gold Medal in EcoVadis'Corporate Social Responsibility Rating for the fourth time in a row. The score of 74/100 (68/100) improved on the previous year, and places Anora in the top 5% of all companies assessed.

Also in early 2024, Anora received its first CDPClimate Change rating of B for coordinated action on climate issues. The score is higher than the food and beverage processing sector average of B-.

From S&P GlobalAnora received an ESG score of 49 (39), an improvement of 10 points compared to our 2022 score. The average score in Anora's peer group of 98 beverage companies was 29 points and Anora performed in the top quartile in the beverages industry.

Anora's SustainalyticsESG Risk Rating also improved to 22.7 points. Anora was assessed by Morningstar Sustainalytics to be at the Medium-Risk level of experiencing material financial impacts from ESG factors, compared to the previous assessment that put Anora in the High-Risk category with 30.2 points.

During 2023, Anora's sustainability work focused on three central themes as part of its roadmap:

• Planet: enhancing circular economy actions; achieving carbon neutral operations; supporting regenerative farming

• People: increasing risk countries' audits and certifications, and suppliers signing ethical principles; increasing safety observations and reducing accidents; ensuring diversity, equity, and inclusion at work

• Product: increasing the rapid transition to climate-smart packaging across the entire portfolio; increasing the number of no- and low-alcohol (NoLo) products; supporting a modern, responsible drinking culture

Planet

In 2023, Anora officially submitted its emission reduction targets for validation to the Science Based Targets initiative. The ambitious targets reflect Anora's dedication to combating climate change and minimising its environmental footprint. Anora expects approval during 2024.

Anora moved closer to its target of carbon neutral production, without compensations, by 2030, and at Koskenkorva Distillery already during 2026. In 2023, we reduced our Scope 1 & 2 fossil emissions by 21% compared to 2022. One highlight at the Koskenkorva Distillery was the shift to 100% renewable electricity at the beginning of the year, an action that significantly reduced Anora's Scope 2 fossil emissions.

During the year, Anora also increased its efforts to both support and further develop regenerative farming to help reduce emissions generated in the farming of barley, the main raw material of all its grain-based products. These efforts have a considerable impact, as Anora purchases a significant amount of barley every year - 174 million kilograms in 2023. Anora made agreements to purchase around 2.3 million kilograms of regeneratively farmed barley from the growing period of 2023, around 40 times more than in 2022.

People

Anora's comprehensive work related to human rights and its supply chain was a People focus area in 2023 and included a human rights assessment on the value chain; a human right commitment; a responsible sourcing policy; a supplier self-assessment questionnaire; and sustainability and human rights training for its employees.

Anora's Koskenkorva Distillery was again awarded the Starch Europe Safety Programme's Year Award for registering no employee lost workday cases for the calendar year. The Year Award is an important recognition for Anora's efforts in developing workplace safety, and 2023 was the third consecutive year the distillery was awarded.

Product

The 2030 roadmap highlights Anora's ambition to lead the shift from glass to more environmentally friendly packaging options. This target also supports the ambitious targets of the Nordic monopolies to reduce the CO2 footprint of their supply chains by 50% by 2030. In 2023, Anora continued the development of rPET bottles, with the content of recycled material now close to 50% across Anora's spirits PET bottle portfolio, and well above the EU target of 25% rPET by 2025. Another key focus area in 2023 was the preparation for upcoming legislative changes, such as the EU's Packaging and Packaging Waste Regulation (PPWR).

The Product theme of Anora's sustainability roadmap also covers our efforts to support the development of a responsible drinking culture, which includes increasing the offering of no- and low-alcohol products. In 2023, the annual limited edition Blossa glögg was launched also as a non-alcoholic version for the first time to celebrate the brand's 20-year jubilee, a much-anticipated novelty.