Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Digitalisation
• Growth in transforming segments
• Climate Change
• Diversity & Inclusion
• Business Ethics

Environmental Achievements

• Reduced CO₂ emissions per employee by 48% compared to the 2016 base year (707 kg CO₂/employee in 2020).

Social Achievements

• Ranked as one of the most attractive employers in Sweden.
• Proportion of female managers rose to 23.1 percent.
• Included in Bloomberg’s Gender-Equality Index 2021.
• Launched several initiatives to reinforce our leadership model Brave Leadership.

Governance Achievements

• Established a Governance, Risk och Compliance (GRC) organisation.
• Launched a new Group-wide whistleblowing function, “Listen Up”.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting operations and net sales.
• Weak development in the real estate segment.
• Repositioning of the automotive segment and the Energy Division.
• Competition for qualified employees.

Mitigation Strategies

• Introduced extensive measures to counter the effects of the pandemic (remote work, digital collaborations, short-term work allowances, staff reductions, deferred investments, cost reductions).
• Accelerated repositioning of the offer to the automotive segment.
• Strengthened balance sheet through focus on cash flow.
• Invested in digital tools and systems for efficient employee processes.
• Invested in recruitment and induction activities, continual professional development, skills development and management training.

Supply Chain Management

Responsible Procurement

• Business Partner Criteria based on the UN Global Compact’s ten principles.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Changes in client preferences
• Structural changes
• Altered market trends
• Failure to live up to stakeholders’ expectations

Opportunities

• Growing demand for sustainable solutions

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 9001, ISO 45001

Third-party Assurance: KPMG (Limited assurance)

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Contribution to climate change mitigation and adaptation, energy efficiency, renewable energy, resource efficiency, safe workplaces, improved health and safety, streamlined production processes, circular resource flows, improved accessibility, greater traffic safety, inclusive societies, and improved air and water quality.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Employee Well-being
• Ethical Business Practices
• Client Responsibility
• Partner Responsibility

Environmental Achievements

• Received EcoVadis Platinum status (highest possible level)
• Submitted science-based targets to the Science Based Targets initiative for validation
• Developed AFRY 1.5°C Roadmap to guide climate action
• Taxonomy-eligibility of 48 percent

Social Achievements

• Ranked as one of the most attractive employers in Sweden by Framtidens Forskning and Universum
• Relatively even gender balance in management team (40/60)
• Launched Sustainable Learning Programme for all employees
• Increased share of highly engaged employees and eNPS from +25 to +29

Governance Achievements

• Implemented recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD)
• Established a new division, AFRY X, focused on digital solutions
• Completed 18 acquisitions with annual net sales of SEK 1.2 billion
• Implemented a new ERP system, CRM, and HR system

Climate Goals & Targets

Environmental Challenges

• Operational challenges in the Infrastructure Division leading to lower results compared to 2020
• Uncertainty in the real estate market due to the Covid-19 pandemic
• Supply chain disruptions
• War in Ukraine and its impact on macroeconomic and trade situation
• Delayed project decision-making processes due to the pandemic

Mitigation Strategies

• Launched a comprehensive improvement program, including a cost-saving program (SEK 100 million annually) for the Infrastructure Division
• Accelerated pace of recruitments and acquisitions
• Implemented a modern system landscape (ERP, CRM, HR systems)
• Continuous monitoring of risks related to the pandemic and taking measures to mitigate its effect
• Evaluating current operations in Russia (less than 1% of total net sales)

Supply Chain Management

Responsible Procurement

• Business Partner Criteria (code of conduct for business partners)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Core option, TCFD, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Limited assurance by a third party

UN Sustainable Development Goals

• 3
• 5
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 15
• 16
• 17

AFRY contributes to all 17 SDGs through responsible business conduct, focus on gender equality, diversity and inclusion, active collaboration and partnerships, and the impact of its assignments.

Awards & Recognition

• EcoVadis Platinum rating

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Responsible Business Conduct
• Employee Well-being

Environmental Achievements

• Reduced CO2 emissions by 31% compared to the base year 2019 (21,491 tonnes to 14,841 tonnes)
• Science-based targets validated by the Science Based Targets initiative (SBTi), aligned with the 1.5°C ambition.

Social Achievements

• Ranked as one of Sweden’s most attractive employers by Universum.
• Launched several tools to strengthen inclusion, such as a new Inclusive recruitment guide.
• Continued to increase awareness and knowledge of LGBTQI+ people’s human rights.

Governance Achievements

• AFRY AB applies the Swedish Corporate Governance Code and did not deviate from it in 2022.
• Received Platinum rating in EcoVadis’ global sustainability rating (top 1%).
• Achieved Leadership rating A- in the CDP Climate Change Questionnaire.

Climate Goals & Targets

Environmental Challenges

• High employee turnover
• Increased use of sub-consultants
• Less favourable project mix
• Geopolitical uncertainty (war in Ukraine)
• Increased inflation and high interest rates
• Skills deficit in the market

Mitigation Strategies

• Completed cost-saving programme
• Investing in system platform
• Strengthening attractiveness as an employer
• Diversified portfolio with strong demand in industrial and energy segments
• Focusing on increasing profitability
• Implementing a modern system landscape
• Joining the talent pool MindDig for recruitment needs

Supply Chain Management

Responsible Procurement

• Business Partner Criteria
• Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations

Certifications: ISO 9001 (quality), ISO 14001 (environment), ISO 45001 (occupational health and safety)

Third-party Assurance: KPMG (Limited assurance)

Awards & Recognition

• Platinum rating in EcoVadis
• Leadership rating A- in CDP Climate Change Questionnaire
• Publishing Prize for Sustainable Stories magazine

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Business Conduct
• Employee Well-being
• Governance

Environmental Achievements

• Reduced reported CO2 emissions by 32% compared to the 2019 base year.
• 69% of suppliers by spend have set science-based climate targets.

Social Achievements

• Launched an improved employee engagement survey with a 79% response rate, showing strong results across all indices.
• Organized a global Inclusion & Diversity Week focusing on unconscious bias in recruitment.
• Launched an unconscious bias guide and e-learning to reinforce the importance of inclusion & diversity.

Governance Achievements

• Continued preparations for the implementation of the EU’s Corporate Sustainability Reporting Directive (CSRD).
• Established a work environment function at the group level to ensure completed risk assessments and compliance with legislation.

Climate Goals & Targets

Environmental Challenges

• Weakening real estate market, primarily in Sweden and Finland.
• Delayed project starts and canceled projects in the Industrial & Digital Solutions division.
• Investment decision delays in CAPEX projects due to increased material costs and inflation.
• Geopolitical uncertainty and rapid cost increases increasing the likelihood of disputes.

Mitigation Strategies

• Expanded ongoing improvement program with structural changes and capacity adjustments.
• Focused measures to increase profitability across divisions.
• Continued focus on core sectors and strengthening abilities in growth areas.
• Implemented Group common systems, tools, and routines to continuously follow up on utilization rates.
• Strategies to prevent disputes and manage costs for disputes that arise.

Supply Chain Management

Responsible Procurement

• Business Partner Criteria mirroring AFRY’s Code of Conduct and the ten principles of the UN Global Compact.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: KPMG (Limited assurance for sustainability report)

Awards & Recognition

• Platinum rating in EcoVadis
• B ranking in CDP

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Carbon Capture and Storage (CCUS)
• Sustainable Forestry
• Sustainable Transportation Fuels
• Biodiversity
• Circular Economy

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Slow deployment of CCUS technology
• Limited visibility of future role of flexibility solutions
• Lack of adequate remuneration for flexibility technologies
• Supply chain complexities and disruptions for flexibility technologies and battery production
• High investment costs for carbon capture and utilisation (CCU)
• Electricity requirements for CCU in pulp mills
• Complexity of EU renewable fuel policies
• Sustainability risks of crop-based biofuels
• Need to scale carbon removal methods significantly
• Proof of permanent carbon removal

Mitigation Strategies

• Developing emerging CCUS business models
• Government support for battery commodity extraction and recycling
• Investment in alternative battery chemistries
• Strategic partnerships and supply diversification for battery materials
• Market design and regulation to facilitate DSM growth
• Development of hydrogen infrastructure and price signals
• Partnerships for carbon capture in pulp mills
• Development of flexible long-term supply chains and partnerships for renewable fuels
• Accelerating carbon mineralisation in ultramafic mine tailings
• Development of robust MRV systems for carbon removal

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable sourcing of wood

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products, carbon removal through mineralisation

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 15 (Life on land)

Initiatives contribute to these goals through renewable energy generation, carbon capture and storage, sustainable forestry, and biodiversity protection

Sustainable Products & Innovation

• Bio-polymers, nanotechnology and composites for electronics based on wood, e-fuels

Awards & Recognition

• Not disclosed