Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved carbon neutrality across all business operations

Social Achievements

• Received awards for diversity and inclusion programs

Governance Achievements

• Nasdaq’s Board of Directors reconstituted its Nominating & Governance Committee to include oversight of Nasdaq’s corporate responsibility, including environmental and social initiatives. This committee was renamed the “Nominating & ESG Committee” in December 2019

Climate Goals & Targets

Environmental Challenges

• Climate change may have a long-term adverse impact on our business operation.
• Access to clean water and reliable energy in the communities where we conduct our business

Mitigation Strategies

• establishing robust environmental and sustainability programs
• executing a sustainable leasing strategy
• selecting data center operators with ISO certifications, renewable energy offerings and sustainability policies
• strengthened our business continuity, crisis management and disaster recovery management programs

Supply Chain Management

Supplier Audits: Approximately 3,500 suppliers engaged during the reporting period; 1,200 based in North America and 2,300 elsewhere.

Responsible Procurement

• Supplier Code of Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Impact on critical infrastructure

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (Core Option)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Dow Jones Sustainability North America Index (4th consecutive year)

Environmental Metrics

ESG Focus Areas

• Climate and the environment
• Social issues and labour conditions
• Anti-corruption and business ethics
• Human rights

Environmental Achievements

• BioMar reused existing infrastructure when constructing new production facilities in Tasmania.
• BioMar's Scotland facility converted to certified wind turbine power, expected to reduce CO2 emissions by over 30%.
• Fibertex Personal Care installed solar panels on its Malaysian factory roof, producing ~2,600 MWh of green power.
• Fibertex Personal Care became the first nonwovens manufacturer certified to the ISCC Plus standard.
• Borg Automotive reused pallets in the UK and introduced less resource-intensive packaging in Poland.

Social Achievements

• BioMar supported local communities in several countries with food, medical equipment, and educational activities.
• Fibertex Personal Care implemented safety measures and alternative well-being solutions during the pandemic.
• Fibertex Nonwovens implemented strict internal procedures and a Prevention Guide for employee safety.
• GPV implemented uniform health and safety follow-up procedures across all production sites.
• HydraSpecma began implementing a new central HR system.

Governance Achievements

• Increased awareness of Schouw & Co.'s whistleblower system across the Group.
• Fibertex Nonwovens and GPV added new policies against sexual harassment to their codes of conduct.
• BioMar became an active member of the Nordic Business Network for Human Rights.

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic impacting operations and requiring focus on employee health and safety.
• Maintaining near-normal operations while prioritizing employee safety during the pandemic.
• Varying national authority responses to the pandemic across different operating locations.
• High energy consumption and use of oil-based plastics in nonwovens manufacturing.

Mitigation Strategies

• BioMar implemented extensive safety precautions and maintained near-normal operations.
• BioMar launched the ‘Neighbouring Communities – COVID-19 Support’ project.
• Fibertex Personal Care implemented practical safety measures and alternative well-being solutions.
• Fibertex Nonwovens implemented strict internal procedures and a Prevention Guide.
• GPV took extensive steps to safeguard health and safety and supported local communities.
• HydraSpecma implemented a new central HR system to support HR processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Codes of Conduct (various companies)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISCC Plus (Fibertex Personal Care), ISO 50001 (Fibertex Personal Care, Fibertex Nonwovens), ISO 14001 (Fibertex Nonwovens)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Blue IMPACT™ (BioMar)
• Products with certified circular or bio-based raw materials (Fibertex Personal Care)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Circular Economy
• Biodiversity
• Social Responsibility
• Human Rights
• Governance

Environmental Achievements

• 77% reduction in carbon emissions in scopes 1 and 2 compared to 2007
• 48% of the asset portfolio had a green building certification in 2021
• 95% non-fossil fuel energy in 2021
• Less than 1% of the portfolio with light green shading linked to fossil fuel heating, with plans to phase this out.

Social Achievements

• Implementation of a Code of Conduct for suppliers, monitored annually; major suppliers required to sign the Code.
• All Castellum employees undergo mandatory web-based training in sustainability, diversity, and codes of conduct.

Governance Achievements

• Solid sustainability strategy and business structure facilitating sustainable business decisions; targets are quantified.
• Net-zero target by 2030, planned to be achieved through actual reduction activities, not offsetting.
• All new developments include reused/circular materials; new materials must be reusable upon demolition.
• Policies, procedures, and reporting follow well-established standards; climate targets integrated into decision-making processes.

Climate Goals & Targets

Environmental Challenges

• Challenges in reporting scope 3 emissions, especially embodied emissions from materials.
• Need to continue reducing the total energy performance of its portfolio.
• Data limitations due to COVID-19 irregularities in property use and limitations in measuring energy use across all properties.

Mitigation Strategies

• Working to develop a better methodology for reporting scope 3 emissions, aiming for more precise data based on specific material use.
• Setting ambitious targets to push innovation and new technology to reduce energy consumption.
• Transparent reporting on data limitations and the number of properties excluded from calculations.

Supply Chain Management

Supplier Audits: Systematic risk analyses of all partners to identify high-risk suppliers; no high-risk suppliers identified.

Responsible Procurement

• Code of conduct applying to all procurements and partnerships with suppliers; sustainability is an assessment criterion in partner selection; suppliers must affirm systematic work on sustainability for every procurement.

Climate-Related Risks & Opportunities

Physical Risks

• Increased flooding
• Snow loads
• Urban overflow
• Increased storms
• Extreme weather

Transition Risks

• Stricter climate policies (mandatory efficiency upgrades)
• Liability risks due to legal challenges from climate change damages
• Changing consumer preferences for climate-smart buildings

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, TCFD, Science Based Targets

Certifications: ISO 14001

Third-party Assurance: Limited assurance by external consultant

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• World’s most sustainable company in the office and industrial sector according to the Global Real Estate Sustainability Benchmark (GRESB)

Environmental Metrics

ESG Focus Areas

• Climate
• Biodiversity
• People

Environmental Achievements

• Reduced CO₂ emissions at Aarhus site by 90% through biomass boiler investment
• Increased renewable electricity sourcing to 70%
• 93% of waste recycled
• 71% verified deforestation-free palm oil (6% improvement since 2021)

Social Achievements

• 293,302 women enrolled in Kolo Nafaso women empowerment program
• 400 leaders trained on unconscious bias
• AAKtivate global well-being program rolled out

Governance Achievements

• Updated AAK Group Policy and Code of Conduct for responsible sourcing of plant-based oils launched
• ESG targets became a qualifier for Executive Committee remuneration in 2021

Climate Goals & Targets

Environmental Challenges

• Security situation in Burkina Faso jeopardizing Kolo Nafaso program
• Supply chain disruptions due to the war in Ukraine and global pandemic
• Increased market prices for plant-based oils

Mitigation Strategies

• Continued Kolo Nafaso operations in Ghana and Cote d'Ivoire
• Successfully managed supply chain risks
• Implemented mitigation strategies to address supply chain disruptions and price increases

Supply Chain Management

Supplier Audits: 463 audits in 2022

Responsible Procurement

• AAK Group Policy and Code of Conduct for Suppliers of plant-based oils
• Supplier self-assessments
• Supplier scorecards
• Supplier training

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Drought
• Tropical cyclones
• Wildfires
• Water scarcity

Transition Risks

• Carbon pricing
• Regulations
• Technology investments
• Market changes
• Reputation risks

Opportunities

• Resource efficiency
• Waste reduction
• Circularity
• Sustainable energy alternatives
• Increased demand for plant-based foods

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, UN SDGs

Certifications: ISO 14001, ISO 50001, FSSC 22000, BRC, ISCC, RSPO

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 5 (Gender equality)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 15 (Life on land)
• Goal 17 (Partnerships for the goals)

AAK's initiatives contribute to these goals through renewable energy sourcing, GHG emission reduction, women empowerment, sustainable sourcing, waste reduction, biodiversity protection, and stakeholder collaborations.

Sustainable Products & Innovation

• AkoPlanet portfolio of plant-based oil and fat solutions

Environmental Metrics

ESG Focus Areas

• Climate change
• Employee well-being
• Corporate Governance
• Responsible lending
• Green financing

Environmental Achievements

• Achieved carbon neutrality in own operations in 2023 by switching to 100% renewable energy in headquarters and offsetting unavoidable emissions.
• Disbursed EUR 115 million in green lending (13% of total new lending).
• Launched the first green savings account in the Baltic market with EUR 36.3 million in deposits by year-end.
• Launched a green mortgage loan aimed at financing energy-efficient homes.

Social Achievements

• Launched volunteer days, allowing employees three paid workdays annually for volunteering.
• Reduced voluntary employee turnover rate to 3.6% (from 4.5% in 2022).
• Achieved a record-high Employee Net Promoter Score (eNPS) of 47% in Q4 2023.
• Introduced Little Champions Co-Working Space in Riga HQ for parents.

Governance Achievements

• Joined the Partnership for Carbon Accounting Financials (PCAF).
• Integrated climate-related risks into the broader risk management framework.
• Implemented a process for Environmental, Social, and Climate-related risk assessment on individual large exposures.
• Received advisory support under the European Investment Bank’s Green Gateway facility.

Climate Goals & Targets

Environmental Challenges

• Limited availability of data on GHG emissions, transition plans, and environmental risks beyond climate change.
• Low awareness of green transition among clients.
• Ongoing challenges associated with the quality, accuracy, and availability of climate data.
• Complexity and non-linearity of climate change, with many uncertainties.

Mitigation Strategies

• Joined PCAF to improve data quality and availability.
• Continued to build and strengthen in-house climate risk management capacity.
• Investing in ESG teams' knowledge base expansion.
• Working on establishing a baseline, identifying decarbonization pathways, and developing practical plans for achieving emissions reductions.
• Engaging with clients to raise awareness of climate risk and support their transition to lower-emission practices.
• Regularly reviewing risk thresholds and policies to ensure alignment with strategy and sound banking practices.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Floods (river and coastal)
• Drought and related water stress

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth in clean energy subsector
• Increased market size for green and climate finance

Reporting Standards

Frameworks Used: GRI Standards GRI 1: Foundation 2021, TCFD

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 8
• SDG 9
• SDG 13

Citadele contributes to these SDGs through its operations, products, services, and financing activities.

Sustainable Products & Innovation

• Green savings account
• Green mortgage loan
• Green leasing (electric vehicles)
• Loans for multi-apartment building renovation

Awards & Recognition

• Nasdaq Baltic Awards 2023 (second best in Best Investor Relations on Bond List category)
• Best in Latvia for customer service for the 9th year in a row (Dive banking sector service surveys)

Environmental Metrics

ESG Focus Areas

• Carbon reduction
• ESG integration in due diligence
• Employee survey
• Ethics training
• Supplier screening
• Scope 3 emissions reporting

Environmental Achievements

• Established a carbon reduction plan
• Reported Scope 3 emissions for the first time

Social Achievements

• Launched first group-wide employee survey
• Implemented ethics trainings

Governance Achievements

• Strengthened processes for supplier screening
• Improved ESG rating to 'A' by MSCI

Climate Goals & Targets

Environmental Challenges

• Reduced annual ordering program (AOP) in MedTech impacting short-term sales
• Challenging market conditions in livestock diagnostics

Mitigation Strategies

• Work to better match deliveries with customer consumption throughout the year
• Building out offering in companion animal diagnostics to balance portfolio

Supply Chain Management

Climate-Related Risks & Opportunities