Climate Change Data

Environmental Metrics

ESG Focus Areas

• Efficiency
• Safety and well-being
• Passionate people and courageous leaders
• Ethical standards

Environmental Achievements

• CO2 emissions from transport decreased 20%
• Lowered energy consumption by 6%
• Increased the proportion of renewable energy by 3 percentage points

Social Achievements

• Rate of work-related accidents fell by 21%
• Launched a new and more user-friendly whistleblower tool called Speak Up
• Implemented more than 50 water and sanitation projects with Water for All funding in 33 countries, reaching more than 180,000 people.

Governance Achievements

• Launched updated internal policies such as the Conflict of Interest Policy, Speak Up Policy and a Gift and Hospitality Policy
• Held a number of awareness-raising activities both on the CoC and associated risks

Climate Goals & Targets

Environmental Challenges

• Advancing sustainability in traditionally conservative sectors
• Influencing decisions in phases of the value chain outside our direct control
• Attracting more women

Mitigation Strategies

• Focusing on energy-efficient equipment to lower operating costs for customers
• Tracking equipment’s energy performance
• Implementing solutions for more autonomous operations and remote control functionality, mechanization and battery technologies
• Collaborative approach to innovation with customers and industry leaders
• Developing 2030 targets aligned with UN Sustainable Development Goals

Supply Chain Management

Supplier Audits: 176 quality supplier audits

Responsible Procurement

• Epiroc Code of Conduct
• Epiroc Business Partner Criteria

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Transition to data driven, autonomous and electric machines

Reporting Standards

Frameworks Used: GRI Standards version 2016, “Core” option

Certifications: ISO 14001:2015

Third-party Assurance: Deloitte AB

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 10 (Reduced inequalities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 17 (Partnerships for the goals)

The report details how Epiroc's initiatives contribute to these goals.

Sustainable Products & Innovation

• Battery-electric machines
• 6th Sense digital solutions
• SmartROC D65 surface drill rig
• Scooptram Automation Total
• Mobilaris Onboard™
• My Epiroc fleet management solution
• Pit Viper 270 XC series blasthole drilling rig

Environmental Metrics

ESG Focus Areas

• Climate change
• Safety
• Diversity
• Ethical standards
• Resource efficiency

Environmental Achievements

• Reduced CO2 emissions from transport by 8%
• Renewable energy share of total energy use reached 64%

Social Achievements

• Reduced lost-time injury frequency rate (LTIFR) to 2.0 from 2.7 in 2019
• Launched SafeStart® program to improve safety awareness
• Launched Live Work Elimination program to improve equipment safety

Governance Achievements

• Established a dedicated compliance function at Group level
• Rolled out Speak Up, a whistleblower system

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting production, supply chain, and customer demand
• Need for access to renewable electricity for customers to reduce climate impact
• Managing human rights and environmental risks associated with conflict minerals in batteries and electronic components
• Ensuring compliance with ethical standards across global operations

Mitigation Strategies

• Implemented new ways of working and preventive measures to address Covid-19
• Developed alternative sourcing strategies
• Launched "Batteries as a Service" concept
• Strengthened compliance program and raised awareness
• Implemented Responsible Sales Assessment process

Supply Chain Management

Supplier Audits: 123 audits in 2020

Responsible Procurement

• Epiroc Code of Conduct
• Responsible Sourcing Process
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Physical changes in climate, changes in regulations, taxes and resource prices, pollution, and access to natural resources

Transition Risks

• Changes in regulations, taxes and resource prices

Opportunities

• Development of energy-efficient products
• Growth in demand for electric equipment

Reporting Standards

Frameworks Used: GRI Standards version 2018, Core option

Certifications: ISO 9001, ISO 14001, OHSAS 18001 (58 entities)

Third-party Assurance: Deloitte AB

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 13
• Goal 17

2030 goals contribute to these SDGs through various initiatives

Sustainable Products & Innovation

• Battery-electric vehicles
• Energy-efficient drill rigs
• Automated and connected equipment

Environmental Metrics

ESG Focus Areas

• Resources
• Safety
• People
• Ethics

Environmental Achievements

• CO2e emissions from operations decreased significantly due to shifts to renewable energy, several initiatives to increase energy efficiency, and own production of solar power.
• Issued SEK 2 billion in green bonds to finance sustainable investments, expenditures, and R&D.
• Partnership with SSAB on fossil-free steel for mining equipment resulting in a 10-tonne reduction in CO2e emissions per manufactured dump box.

Social Achievements

• Increased the number of trainings available as well as learning events and development programs.
• Implemented several initiatives to raise safety awareness, address potential hazards and further improve safety across the company.
• More than 65 water and sanitation projects implemented with Water for All funding in 38 countries, reaching more than 250,000 people.

Governance Achievements

• No deviations from the Swedish Corporate Governance Code reported.
• Updated E-learning training and 94% of all employees and 98% of all managers confirmed compliance with the Code of Conduct.
• Sustainability targets included in the variable compensation plans for all members of Group Management.

Climate Goals & Targets

Environmental Challenges

• Significant supply-chain disruptions due to the war in Ukraine and the ceasing of deliveries to Russia.
• Increased number of work-related injuries in 2022.
• Challenges in achieving gender diversity targets, particularly in certain job categories.

Mitigation Strategies

• Redirected solutions to other customers after ceasing deliveries to Russia.
• Implemented several initiatives to raise safety awareness and improve safety across the company.
• Launched activities to increase diversity and inclusion, including the Female Service Technician Program and a female mentorship program.

Supply Chain Management

Supplier Audits: 177 on-site audits, 39 digital audits

Responsible Procurement

• Business Partner Code of Conduct
• Responsible Sourcing and Sales Assessments Processes
• Third-party due diligence

Climate-Related Risks & Opportunities

Physical Risks

• Heat stress
• Extreme weather
• Water scarcity

Transition Risks

• Reputational risks due to ties to the mining industry
• Not meeting new product requirements and climate-related legislation

Opportunities

• Increased demand for sustainable equipment
• Development of low-emission products and services
• Battery technologies and connected equipment

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, TCFD, SASB framework

Third-party Assurance: Ernst & Young AB, Sweden

UN Sustainable Development Goals

• SDG 8
• SDG 13
• SDG 16
• SDG 17

Epiroc's 2030 goals reflect our contribution to the UN Sustainable Development Goals (SDGs) and our commitment to help accelerate the implementation of Agenda 2030 and the Paris Agreement.

Sustainable Products & Innovation

• Battery-electric equipment
• Automation solutions
• Remanufacturing of products and parts
• V-cutter

Awards & Recognition

• Epiroc Environmental award

Environmental Metrics

ESG Focus Areas

• Resources
• Safety
• People
• Ethics

Environmental Achievements

• Increased share of renewable energy in own operations to 42% (excluding new reporting units)
• Reduced CO2e emissions from operations by 26% (excluding new reporting units)
• 84% of waste diverted from disposal (excluding new reporting units)
• 42% of product fleet available as electrified solutions

Social Achievements

• Launched a new global parental leave policy granting a minimum of 12 weeks of paid parental leave
• Increased the number of women in operational roles to 13.7%
• Improved total recordable injury frequency rate (TRIFR) to 5.1 from 5.7
• Reduced sick leave to 2.1%

Governance Achievements

• Continued implementation of the Responsible Sales Assessment process
• 100% of significant suppliers confirmed compliance with the Business Partner Code of Conduct
• ESG targets included in remuneration for Group Management

Climate Goals & Targets

Environmental Challenges

• Weakening construction market
• Supply chain disruptions
• High working capital
• Gender diversity in operational roles
• Fatal accidents

Mitigation Strategies

• Investing in innovation and acquisitions
• Improving supply chain efficiency
• Implementing measures to improve working capital ratios
• Implementing initiatives to increase gender diversity (Daring Women Program)
• Implementing several initiatives to raise safety awareness and improve safety culture

Supply Chain Management

Supplier Audits: 78 on-site and 30 digital audits in 2023

Responsible Procurement

• Business Partner Code of Conduct
• Responsible Sourcing process
• Supplier self-assessments

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water shortages

Transition Risks

• Climate-related regulations
• Customer demand for sustainable products

Opportunities

• Development of energy-efficient products
• Battery technologies
• Connected equipment

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, TCFD

Certifications: ISO 45001

Third-party Assurance: Ernst & Young AB

UN Sustainable Development Goals

• Goal 8
• Goal 13
• Goal 17

Sustainable Products & Innovation

• Battery-electric vehicles
• Diesel-to-battery conversion kits
• Automation solutions

Awards & Recognition

• Europe Climate Leader (Financial Times)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety & Health
• Resource Efficiency
• Ethical Standards

Environmental Achievements

• Reduced CO2e emissions from operations by 49% from 2019 baseline by 2023 (Scope 1 & 2)
• 42% of product portfolio offers emission-free options by 2023

Social Achievements

• Increased proportion of women employees and managers; target to double women in operational roles by 2030
• Support of 'Water for All' initiative
• Internal mandatory Code of Conduct trainings

Governance Achievements

• Integrated sustainability into daily work; quarterly reporting to Board and Group Management
• Code of Conduct (CoC) approved by the Board; adherence expected from all employees and business partners
• Sustainability Policy and core values guide actions

Climate Goals & Targets

Environmental Challenges

• Unavailability of renewable electricity grids in certain geographies
• Increased CO2e emissions from use of sold products in 2023 due to increased deliveries
• Maintaining emission reduction levels while growing organically and through acquisitions

Mitigation Strategies

• Installing solar panels at facilities
• Offering a complete range of emission-free equipment by 2030 (underground by 2025)
• Including all acquired companies in energy-efficiency program
• Implementing energy efficiency improvements in products (e.g., more efficient engines)

Supply Chain Management

Responsible Procurement

• Business Partner Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and emission-free solutions

Reporting Standards

Frameworks Used: SBTi, UN Global Compact, GHG Protocol, EU Taxonomy Regulation

Third-party Assurance: Sustainalytics (Second Party Opinion)

UN Sustainable Development Goals

• SDG 2
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 13
• SDG 16
• SDG 17

Contribution through 2030 goals

Sustainable Products & Innovation

• Battery-electric equipment
• Battery conversion kits
• Energy-efficient drill rigs