Ependion : Sustainability Report 2022

Sustainability Report 2022

S U STA I N A B I L I T Y ST R AT E GY

Sustainability strategy

Sustainability means creating long-term solutions from economic, ecological and social perspectives, and adding value through business processes.

M AT E R I A L I T Y A N A LY S I S

Materiality analysis

A materiality analysis was conducted in 2021, with our most important stakeholders each assessing various sustainability issues. The stakeholders involved in this analysis were owners, the Board of Directors, customers, suppliers and coworkers.

Apart from assuming responsibility and creating value for wider society, as well as protecting future generations, sustainability work also brings greater competitive advantages to beijer group. Well-executed, integrated sustainability work also contributes to better administration and good control of the Group's products and services. This results in more satisfied customers, committed coworkers and increased profitability. Our sustainability work is based on documentation including a Code of Conduct, which is approved each year by the Board of Directors. It states guidelines on business ethics, the environment, human rights and data transparency. beijer group takes preventative action to protect people and the environment wherever possible. Through regulations like REACH and RoHS, beijer group ensures that no product contains prohibited or hazardous compounds.

To sharpen the focus and raise skills levels in the sustainability segment, beijer group decided to hire a Group Sustainability Manager in the year; the position was filled in May 2023.

Standpoint on climate change and planetary boundaries

beijer group accepts the scientific evidence that human activity presents major risks for future generations. Accordingly, to make its contribution to the global agenda, beijer group will control and clarify goals for operations consistent with the UN's Sustainable Development Goals (SDGs) and the Paris Climate Agreement. beijer group will future proof its product and service portfolio by making its manufacturing energy efficient, adopting a life cycle perspective in investments, taking responsibility for natural resources and biological diversity, increasing the share of renewable energy, and adapting its operations to climate change. beijer group will engage in customers' and regulators' climate plans and policies.

An overall assessment of the Group's impact on the various sustainability segments was conducted with the help of external experts. In 2022, stakeholder engagement

continued with each stakeholder through natural contact interfaces. The dialogue has not created any need to change beijer group's priorities. The outcome of the analysis follows.

Higher		Long-term profitability
			Innovation
		Co-worker health & safety	Anti-corruption	& new ideas
				Information security
priority				Social sustainability
Sustainable			in supply chain
energy consumption	Climate change		Solutions for a
				sustainable society
Stakeholder	Skills management	Gender equality		Circular and sustainable
				material selection

Vision

beijer group's sustainability work should be an integrated and natural part of its operations, and its work should promote profitable and sustainable development.

Strategy

Operations should contribute to sustainable development, and sustainability work should be integrated into operations to generate practical results. This work should feature throughout the business, including ownership, management, developing products and services portfolios, customer relationships, coworkers and finance. Conducting operations responsibly is essential to the company's short and long-term success, while focusing on profitability and long-term shareholder value. Actions should feature high skills levels, good business morals and accountability.

Overall management

At an overall level, beijer group intends to manage operations consistent with the UN's SDGs.

• Govern operations consistently with UN Sustainable Development Goals.
• Comply with beijer group's Code of Conduct, which is based on the UN Global Compact. All the Group's coworkers and collaborative partners should understand and comply with the Group's Code of Conduct.
• Continuously increase knowledge of sustainability through training and communication of sustainability issues.
• Regularly follow up, report on and improve sustainability work.

Biological diversity
	Diversity
Impact on
the community
Lower	Higher

Assessed impact on economic, social and environmental aspects

Economic responsibility

Social responsibility

Environmental responsibility

Responsibility for co-workers

The materiality analysis provides important supporting data for the ongoing priorities of the Group's sustainability work. All the sustainability areas affected are considered important to beijer group, but in this Report, the primary focus is on areas in the upper part of figure 1.

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Sustainability framework

beijer group manages its sustainability work through five focus areas where the Group intends to set targets, formulate key performance indicators (KPIs) and state its long-term ambitions for each area.

The business entities adopted a sustainability agenda in 2022- targets and KPIs at Group level will be formulated in 2023.

Electrification and the transition to green energy,	Smart real estate automation and process controls	Green transportation-trains, trackside and
modern and resilient power networks.	that save resources and energy.	charging infrastructure.

SUSTAINABLE FINANCES	HEALTHY PEOPLE	ENVIRONMENT	ETHICS AND GOVERNANCE	PRODUCTS AND SERVICES
		AND CLIMATE

Profitable business is imperative for

enabling beijer group to offer products

that help create a more sustainable society and give our coworkers a more secure future.

DECENT WORK

AND ECONOMIC

GROWTH

beijer group's coworkers should have a safe, inspirational and stimulating workplace. Gender equality and good social conditions in the supply chain are also fundamental issues for the Group.

EQUALITY		DECENT WORK
		AND ECONOMIC
		GROWTH

beijer group is responsible with planetary resources and works for its operations to have the minimum possible negative impact. Climate impact, circularity and eco-design are important questions in this focus area.

RESPONSIBLE

CONSUMPTION

AND

PRODUCTION

beijer group will have a sharp focus on

conducting our business ethically, consistent with applicable laws and regulations. Our coworkers and suppliers should comply with our Code of Conduct.

PEACE, JUSTICE

AND STRONG

INSTITUTIONS

beijer group's products help our customers reduce their climate footprint. Our product development should feature prudent material selection and responsible utilization of natural resources.

RESPONSIBLEINDUSTRY,

CONSUMPTIONINNOVATION AND

ANDINFRASTRUCTURE

PRODUCTION

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SUSTAINABLE FINANCES

Long-term profitability

Long-term profitability means the Group increases stability for its coworkers, owners, customers and suppliers. It creates jobs and tax revenues that help create a stronger society. Profitable operations are imperative for long-term survival in a globalized and competitive world.

The Group should deliver solutions, products and services that customers want. Ensuring that the products and services it offers are relevant in a sustainable society and the sustainable transition is integral to this. Some of the Group's offerings that satisfy these requirements are solutions to rationalize the generation and distribution of electricity, HMIs for electric vehicle charging stations and the efficient control of water treatment. In its power network offering, the Group helps the energy transition through digitalization, which enables more small renewable energy producers with variable energy generation to connect.

Several sectors that beijer group supplies that are important for the climate alignment have grown by 7 to 15% globally.

Our markets grow by 7-15% globally

Manufacturing	Energy	Infrastructure	Marine	Train	Trackside
			sector

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HEALTHY PEOPLE

A healthy and stimulating workplace

beijer group should offer its coworkers a good physical and psychosocial working environment, where coworkers can achieve their full potential and find a good work-life balance.

S U STA I N A B I L I T Y F R A M E W O R K

Experiences of working from home during the pandemic resulted in a policy on hybrid working in 2022. Its aim was to improve the potential of every coworker to choose the right workplace. This means coworkers can choose between working remotely or in the office, according to their duties, and the Group creating a productive and creative working environment for everyone.

The Beijer Electronics business entity conducted a health survey of its coworkers, which indicated that the pandemic did cause a deterioration in physical health. The business entity produced a new fitness subsidy in 2022, replacing the previous keep-fit system that Swedish employees are expected to utilize more fully. There is also an ambition to introduce coworker-led fitness activities.

Westermo Sweden has an active keep-fit group that arranges about 15 fitness activities for coworkers each year. There were 177 participants in 2022.

In Taiwan, coworkers are offered statutory and regular health checks. Follow-up interviews are arranged with coworkers as required, and all coworkers are offered health training.

Employee satisfaction surveys for a better working environment

The Group conducts regular employee satisfaction surveys focusing on key health & safety issues like corporate culture, leadership, discrimination, work-life balance, developmental opportunities and harassment. The surveys conducted in 2022 indicated that coworkers generally have a positive perception of their work situations and workplaces. A good work-life balance was still perceived as an important focus area.

A fair and safe workplace

beijer group encourages its managers to practice open and transparent leadership to prevent and deal with potential discrimination and harassment in good time. Coworkers can anonymously report grievances such as discrimination and harassment to their first-line managers, or directly to the HR function. The Group works systematically in this segment

through its whistleblower policy and system for managing it. In 2022, the organization prepared to outsource the whistle- blower function to an external provider to guarantee anony­ mity for anybody using this function. The whistleblower policy is communicated to all employees as part of the Code of Conduct. The Group also conducts a range of sessions discussing harassment and discrimination, which are treated as part of leadership. No situations involving discrimination and harassment were reported in 2022.

Systematic health & safety work

beijer group has a health & safety policy that deals with issues including how the company identifies, assesses and manages health & safety risks in each function. The outcomes of incident reports and risk assessments are evaluated to improve health & safety continuously.

There were no serious work-related injuries or fatalities in 2022. The most common incidents involve compression and abrasion injuries. Accidents are reported and preventative action is taken. The Group's organization in Taiwan has an ISO 45001-certified health & safety management system. Doctors and nurses conduct regular checks of the physical working environment, which have had satisfactory outcomes.

Coworker development

Continuous development of coworkers' competencies and skills is a priority for beijer group. The Group's employee satisfaction surveys indicate the organization's developmental needs. Investments and leadership programs remained in focus in 2022, with their emphasis on supporting HR develop­ ment, exchange of best practice and sharing information. Over and above the focused training packages conducted within Beijer Academy, staff also now have access to various types of discussion forum and podcasts on relevant and in-demand subjects through the recently launched web platforms Team-Up and LMS.

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