Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Cell Impact Forming™ is an environmentally friendly production method that consumes less energy and requires no lubricant or water-intensive cleaning.
• Opened a new, larger factory in Karlskoga, Sweden.

Social Achievements

• Strengthened the organization and expertise by appointing Stefan Axellie as CFO and recruiting additional staff.
• Implemented incentive programs for employees and board members.

Governance Achievements

• Appointed three new Board members: Robert Sobocki, Börje Vernet, and Anna Frick.
• Strengthened cash position through two share issues.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic negatively impacted customer orders and production.
• Limited number of customers.
• Uncertainty regarding future market developments.
• Competition from other technologies.
• Technological development risks.
• Supplier and cooperative partner dependencies.
• Product risks.
• Dependency on key people.
• Ability to manage growth.
• Patent infringement risks.
• Earning capacity and future capital requirements.
• Credit risk.
• Liquidity risk.
• Foreign exchange risk.
• Potential legal disputes.

Mitigation Strategies

• Raised new capital (SEK 213.4 million) to finance development and marketing.
• Moved to larger premises to expand production capacity.
• Implemented a next-generation forming machine (Gen2) for more efficient production.
• Strengthened the organization and management.
• Focused on a small number of key customers.
• Regularly reviews costs in relation to the business situation.
• Monitors cash flow forecasts to ensure sufficient liquidity.
• Spreads credit risks and monitors customer creditworthiness.
• Addresses technological development through R&D.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers AB

Sustainable Products & Innovation

• Cell Impact Forming™ technology

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Awarded a silver medal for sustainable business by EcoVadis, putting the company in the top 25 percent of the world’s most sustainable companies.

Social Achievements

• Named one of Sweden’s 50 fastest-growing tech companies by Deloitte.

Governance Achievements

• The case with the Financial Supervisory Authority is now closed. A penalty fee of SEK 50,000 was imposed for not having drawn up an insider list prior to a publication.

Climate Goals & Targets

Environmental Challenges

• Delays in projects and customer-driven production interruptions weighed heavily on results in 2022 due to fixed costs for production and technical projects.
• Customer delays due to customers’ product changes requiring validation and a lack of components/long lead times.
• The company did not quite reach its sales target of SEK 100–150 million for 2022 due to customer delays and component shortages.
• Supply shortages and logistics disruptions caused by the ongoing pandemic and war in Ukraine.

Mitigation Strategies

• Maintaining cost stability for activities based on order book indicating continued growth in 2023.
• Phase ll program to significantly reduce production costs through additional and newly developed processes.
• Responding to customer demand and maintaining price and delivery stability for raw materials and components.
• Strategically important purchases of productivity-enhancing equipment for Phase ll during the second half of 2022.
• New business plan that takes into account the major political initiatives in the EU, the US and several other countries that will result in markets becoming more national or regional and characterized by a certain need for localization.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Silver medal from EcoVadis

Environmental Metrics

ESG Focus Areas

• Environmental responsibility
• Social sustainability
• Governance

Environmental Achievements

• Developed Cell Impact Forming™, a unique, patented, high-precision method for forming flow plates that consumes little energy and does not require lubricants, reducing water-intensive cleaning and tool costs by up to 50 percent.
• 32 percent of electricity used comes from renewable sources.

Social Achievements

• Conscious effort to attract diverse talent (prior to redundancies in 2023).
• Developed clearer procedures for reporting sickness and better, more frequent rehabilitation meetings.

Governance Achievements

• Certified according to ISO 9001 (quality management) and ISO 14001 (environmental management systems).
• Awarded a silver medal by EcoVadis in 2022 for sustainability initiatives.

Climate Goals & Targets

Environmental Challenges

• Decreased order inflow leading to cost-reduction programs and adjusted financial goals.
• Dependency on key personnel.
• Dependency on a limited number of customers.
• Risk of product defects leading to liability.
• Challenges in managing rapid growth.
• Competition from other companies in the fuel cell and hydrogen industry.
• Protection of intellectual property rights.
• Foreign exchange risk.
• Uncertainty regarding future market developments.
• Credit risk from customers.

Mitigation Strategies

• Initiated two cost-reduction programs to address decreased order inflow.
• Secured funding through a rights issue.
• Implemented Phase II program to improve productivity and profitability.
• Closely monitoring costs.
• Investing in outstanding measuring precision to better support customers’ product development.
• Strengthening internal core knowledge.
• Developing and maintaining relationships with larger customers.
• Implementing efficient planning and management processes to manage growth.
• Expanding production capacity and efficiency.
• Continuously monitoring the external environment, regular customer contacts and credit checks.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Growth in the hydrogen market

Reporting Standards

Frameworks Used: GRI, UN Global Compact, ISO 26000

Certifications: ISO 9001, ISO 14001

Third-party Assurance: PricewaterhouseCoopers AB

UN Sustainable Development Goals

• SDG 7.2
• SDG 7.4
• SDG 11.2
• SDG 12.2
• SDG 12.4
• SDG 12.5
• SDG 8.5
• SDG 8.8
• SDG 8.2

Cell Impact’s mission is to revolutionize the global energy system and combat climate change. The company aims to contribute to the green transition through its environmentally friendly flow plates for fuel cells and electrolyzers.

Sustainable Products & Innovation

• Cell Impact Forming™

Awards & Recognition

• EcoVadis silver medal (2022)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Cell Impact Forming™ technology is more than hundred times faster than progressive forming, consumes little energy and requires no lubricant or subsequent water-intensive cleaning. The technology reduces tool costs by up to 50 percent and requires minimal maintenance, making Cell Impact Forming a very environmentally-friendly manufacturing method.

Social Achievements

• Hired PR firm Solberg to develop the company’s communication and brand.
• Held annual general meeting with tour of Karlskoga factory.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Higher personnel costs, depreciation of equipment investments to support the company’s production and delivery plans and other external expenses.
• Need for additional capital during the year to finance continued operations.
• Potential impact from the war in Ukraine on raw materials and energy prices as well as the availability of components.

Mitigation Strategies

• Rights issue in 2021 to ensure continued financing of Cell Impact’s business plan, which includes increasing the company’s production capacity.
• Evaluating various possible sources of future financing.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IAS 34

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Cell Impact Forming™ technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Low energy consumption and absence of lubricants in Cell Impact Forming™ resulting in reduced water usage compared to progressive forming.
• Tool costs reduced by up to 50 percent, minimizing maintenance and making Cell Impact Forming a very environmentally-friendly manufacturing method.

Social Achievements

• Successfully carried out a rights issue, raising approximately SEK 129 million before issue expenses.
• Secured internal core knowledge in all essential areas after the rights issue and cost reduction program.

Governance Achievements

• Appointment of Malin Lundberg as new CFO.
• Appointment of Daniel Vallin as interim CEO.

Climate Goals & Targets

Environmental Challenges

• Delayed orders and reduced demand for flow plates.
• Low turnover during the quarter (SEK 0.8 million).
• Impairment need identified in the final phase of the second ongoing rationalization and cost reduction program.

Mitigation Strategies

• Cost reduction program concluded and an additional cost reduction program initiated.
• Successfully carried out a rights issue raising approximately SEK 129 million.
• Continued work within Phase II program to improve manufacturing process (new punching technique and faster welding method).
• Installation of new fully automated laser cutting machines with higher capacity.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Raw materials and energy prices, availability of components may be affected by the war in Ukraine.

Opportunities

• Participation in the green transition through the production of flow plates for fuel cells and electrolyzers.

Reporting Standards

Frameworks Used: IAS 34, RFR 2

Sustainable Products & Innovation

• Flow plates for fuel cells and electrolyzers

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Awarded silver medal by EcoVadis (July 11, 2024)
• Added sealing as a new part of the production process, reducing water-intensive cleaning (July 3, 2024)

Social Achievements

• Extended collaboration with F.C.C. Japan (May 6, 2024)
• Signed agreement with a leading European industrial supplier (July 1, 2024)

Governance Achievements

• Held its Annual General Meeting (April 25, 2024)
• Signed agreement valued at SEK 3.2 million (April 26, 2024)
• Signed main agreement with F.C.C. (May 6, 2024)

Climate Goals & Targets

Environmental Challenges

• Negative EBIT and operating loss
• Variations in sales from quarter to quarter
• Decreased equity compared to the first quarter

Mitigation Strategies

• Cost-reduction program initiated at the end of 2023
• Focus on established customer collaborations, products, and processes
• Developing future projects and improving production capacity

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IAS 34

Awards & Recognition

• Silver medal by EcoVadis