Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Responsibility
• Governance

Environmental Achievements

• -78% reduction in relative CO2-eq. footprint
• 100% ISO certified operations: ISO9001:2015, ISO14001:2015 and ISO45001:2018
• 99.61% of Kempower Movable Chargers designed for modularity and recyclability
• Reduced packaging size by 3 times, leading to reduced emissions from transportation

Social Achievements

• 34 traineeships and summer jobs provided
• Workplace safety: LTIF 5
• Diversity and equal opportunities for 375 employees and 30 different nationalities
• Personnel eNPS 80
• New recruits in 2022: 239
• Code of conduct training index 72%

Governance Achievements

• ISO14001:2015 certification obtained in January 2022
• Green Equity Designation from Nasdaq
• Policy review to ensure supporting processes are in place and everyone is committed to the same principles
• Code of conduct and policies aligned with the goals of OECD Guidelines for Multinational Enterprises and UN Guiding Principles on Business and Human Rights

Climate Goals & Targets

Environmental Challenges

• Increased absolute amount of waste due to new manufacturing location
• Disruptions in the global supply chain (climate risk)
• Negative regional impacts on the workforce (climate risk)

Mitigation Strategies

• Continuous actions and projects ongoing across operations to achieve carbon neutrality by 2035
• Using 100% renewable electricity in almost all facilities
• Implementation of renewable energy projects
• Sorting and reduction of waste
• Working with suppliers to further explore the use of renewable materials and to develop the reporting of GHG emissions
• Following compliance and human rights due diligence with supply network

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Similar business conduct and ethical principles is expected from suppliers
• Initiative to reduce waste together with suppliers
• Engaging selected suppliers in climate action
• Supplier code of conduct will be developed for 2023

Climate-Related Risks & Opportunities

Physical Risks

• Local damages due to extreme weather
• Disruptions in the global supply chain
• Negative regional impacts on the workforce

Transition Risks

• Not disclosed

Opportunities

• Electrification will proceed and our strategy is viable and climate resilient
• Regulation creates a strong global market for charging solutions
• There is financing available for low carbon solutions providers
• Kempower is part of the green transformation, which is a major factor in retaining a capable workforce

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO9001:2015, ISO14001:2015, ISO45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 7
• SDG 11
• SDG 12
• SDG 13

Well in alignment with the main sustainability themes.

Sustainable Products & Innovation

• Kempower Satellite charging system

Awards & Recognition

• Finnish Growth Company of the Year 2022
• Internationalization award from the President of Finland
• Honourable Mention in the Fennia Prize ‘22

Environmental Metrics

ESG Focus Areas

• Climate Impact
• Responsible Products
• The Best Workplace for the Professionals of the Future

Environmental Achievements

• Reduced relative CO2 emissions to 0.3 g CO2-eq/EUR from 2.5 g CO2-eq/EUR in 2022
• Achieved zero landfill waste in 2023
• Recyclability rate for Power Unit 99.72% and Satellite 99.71%
• 100% renewable electricity in almost all offices
• Received a ‘Best Newcomer’ Carnegie Sustainability Award
• Became a member of the United Nations Global Compact (UNGC)

Social Achievements

• Employee Net Promoter Score (eNPS) above the 2023 target
• 99 traineeships and summer jobs provided
• Established a joint research center with LUT University
• 81% of employees completed Code of Conduct training
• Implemented a Supplier Code of Conduct

Governance Achievements

• Conducted a Kempower Double Materiality Assessment
• Secured CSRD compliance
• Participation in EcoVadis sustainability evaluation
• Sustainability report audit by third party

Climate Goals & Targets

Environmental Challenges

• Increased absolute amount of waste and emissions due to facility expansions and strong growth
• Developing accurate reporting of indirect Scope 3 emissions

Mitigation Strategies

• Continuous actions and projects ongoing across all operations to achieve carbon neutrality by 2035
• Implementing steps to reduce identified environmental impacts in all steps of the value chain
• Developing the reporting accuracy of the indirect Scope 3 emissions
• Investing in forest protection project in Cambodia and a solar power project in India through an emissions offset company

Supply Chain Management

Supplier Audits: Several audits conducted during the last two quarters of 2023

Responsible Procurement

• Supplier Code of Conduct (SCoC) implemented in 2023
• Green procurement criteria for suppliers and service providers
• Initiative to reduce waste together with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Supply chain disruptions
• Negative regional impacts on the workforce

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth in the EV charging infrastructure sector

Reporting Standards

Frameworks Used: GRI Standards, ESRS, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good health and well-being
• Goal 4: Quality education
• Goal 7: Affordable and clean energy
• Goal 11: Sustainable cities and communities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

Kempower's initiatives contribute to these goals through its sustainable products, employee well-being programs, research collaborations, and commitment to carbon neutrality.

Sustainable Products & Innovation

• Kempower Satellite and Power Unit chargers with >99% recyclability

Awards & Recognition

• ‘Best Newcomer’ Carnegie Sustainability Award