Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change Adaptation
• Water Resource Management
• Sustainable Innovation
• Social Responsibility
• Governance

Environmental Achievements

• Developed nanofiltration membrane technology with potential to reduce energy use by up to 70% and substantially reduce chemical use compared to other existing technologies.
• Microfiltration membranes use 30-50% less energy than conventional technologies.

Social Achievements

• Established a Code of Conduct for suppliers addressing environmental and social issues, including child labor, health, safety, and human rights.
• Established a whistleblower function.

Governance Achievements

• Established an ESG framework embedding ESG into the whole value chain.
• Obtained ISO 9001 certification for quality management system.
• In the process of obtaining ISO 14001 for environmental management system.

Climate Goals & Targets

Environmental Challenges

• Main raw material (polymers) originates from virgin fossil fuels.
• Potential social risks related to suppliers' sourcing and manufacturing of raw materials.
• Lack of GHG emissions reporting and climate risk assessment.
• Potential for actual environmental performance not meeting expectations due to novel technology.

Mitigation Strategies

• Company aims to report Scope 1, 2, and 3 GHG emissions in the future.
• Company aims to reduce natural gas use in new manufacturing facility and invest in renewable energy sources.
• Company is working to reduce waste streams and optimize treatment processes.
• Company encourages suppliers to commit to the Code of Conduct and ensure compliance.

Supply Chain Management

Supplier Audits: Planned to start end of 2021

Responsible Procurement

• Supplier Code of Conduct attached to contracts of new suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Increased carbon prices

Opportunities

• Increased demand for water treatment due to climate change

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 6 (Clean Water and Sanitation)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 17 (Partnerships for the Goals)

Company's products contribute to safe and affordable drinking water and improved water quality.

Sustainable Products & Innovation

• Nanofiltration membrane technology, microfiltration membranes

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Clean water for all
• Avoiding emissions at our customers
• Our internal initiatives
• Climate change mitigation
• Sustainable use and protection of water and marine resources
• Transition to a circular economy
• Pollution prevention and control
• Protection and restoration of biodiversity and ecosystems

Environmental Achievements

• 2021 membrane sales could enable the production of 121 billion liters of clean water, equivalent to the drinking water supply for 22 million persons during one year.
• Enabled access to clean water across 28 countries.
• 2,127 ton CO2e savings during the deployment lifetime of our modules, by avoiding the use of 3.9 million kg of chemicals and saving 49 GWh energy compared to conventional technologies.
• Externally certified green-labelled IPO at Euronext Amsterdam.
• Obtained ISO14001 certification (at the start of 2022).

Social Achievements

• Employee base grew from 34 FTE to 69 FTE, including more than 10 nationalities.
• Implemented additional protective procedures in response to COVID-19.
• Strong emphasis on training and development, facilitating internships and partnerships with universities.
• Reached out to the vast majority of suppliers to actively engage about its Supplier Code of Conduct and conducted various audits.

Governance Achievements

• Externally certified green-labelled IPO.
• Professionalized CO2 emission data collection.
• Further alignment with the UN Sustainable Development Goals (SDGs).
• Full compliance with the Dutch Corporate Governance Code (except as set out in the Corporate Governance section).

Climate Goals & Targets

Environmental Challenges

• Dependence on acceptance of technology by customers and partners.
• Unsuccessful pilot projects or inconsistent product performance.
• Demand dependence on market trends towards sustainability.
• Increased competition in the water treatment market.
• Dependence on significant customers and OEM relationships.
• Delays in municipal client procurement processes.
• Impact of the COVID-19 pandemic.
• Delays in production scale-up and new manufacturing facility.
• Dependence on third-party suppliers.
• Increased raw material costs.
• Difficulty hiring and retaining qualified employees.
• IT system disruptions.
• Difficulties expanding manufacturing operations.
• Challenges of international operations and expansion.
• Failure to protect intellectual property rights.
• Inadequate protection of technological know-how.
• Technological improvements by competitors.
• Product liability, warranties, and recall claims.
• Compliance with laws and regulations in multiple jurisdictions.
• Risk of fraud and dishonest activities.

Mitigation Strategies

• Active development, piloting, and investment in technology.
• On-site commissioning, technical support, and training.
• Constructive dialogue with customers.
• Continuous monitoring of trends and R&D efforts.
• Engagement with customers, partners, and stakeholders.
• Leveraging competitive edge of dNF products.
• Continuous investment in innovation, operations, and organization.
• Building global sales and distribution network.
• Building strong relationships with OEMs.
• Diversifying customer base and sectors.
• Compliance with health and safety guidelines.
• Extensive expansion roadmap for production capacity.
• Modular construction plans for new facility.
• Multiple interchangeable suppliers for key purchases.
• Proactive pricing strategy.
• Leveraging public profile to attract talent.
• Remuneration structure to attract and retain talent.
• Cloud-based IT solutions with updated security.
• Cybersecurity insurance policy.
• Information security policy.
• Improving quality assurance processes and controls.
• Centralizing quality organization.
• Adapting to international markets and developing strategies.
• Expanding international sales force and establishing relationships with new partners.
• Regular monitoring of economic, political, and societal changes.
• Regular monitoring of the market and taking steps to ensure compliance with intellectual property rights.
• Control and governance frameworks to protect intellectual property.
• Insurance coverage for product liability and warranty claims.
• Continuous focus on quality in design and production phases.
• Monitoring laws and regulations across multiple jurisdictions.
• Tailor-made education to train personnel.
• Implementing policies and procedures and regular reviews and audits.
• Management system complying with ISO 14001.
• Internal control measures and compliance policies.
• Authorization policy, segregation of duties, and reporting framework.

Supply Chain Management

Supplier Audits: Various audits with existing and new suppliers

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Changes in market trends towards sustainability

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: EU Taxonomy, UN Sustainable Development Goals (SDGs)

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 6
• SDG 8
• SDG 9
• SDG 12
• SDG 17

Contribution to SDGs through clean water production, employee development, innovation, responsible consumption and production, and partnerships.

Sustainable Products & Innovation

• Direct nanofiltration (dNF) membranes
• Ultrafiltration (UF) membranes
• Microfiltration (MF) membranes

Awards & Recognition

• 2021 Frost & Sullivan Global New Product Innovation Award
• Global Water Intelligence Breakthrough Technology Company of the Year award nomination

Environmental Metrics

ESG Focus Areas

• Clean water for all
• Avoiding emissions at our customers
• Our internal initiatives

Environmental Achievements

• Realized externally certified science-based CO2 reduction targets (42% decrease in absolute Scope 1 and 2 emissions by 2030)
• Enabled 3,578 ton CO2e savings during the deployment lifetime of modules in 2022
• Avoided 6.7 million kg of chemicals in 2022
• Achieved 81.6 GWh energy savings in 2022

Social Achievements

• Employee base grew from 69 FTE to 135 FTE, representing more than 15 nationalities
• 0 lost time injuries and 0 fatalities in 2022
• Supplier Code of Conduct adherence by all material suppliers and contractors for new megafactory (100%)
• 36 granted patents as per 31 December 2022

Governance Achievements

• Obtained an independent ESG risk rating from Sustainalytics, ranking amongst the 13% best performers in our global subindustry peer group
• Joined the United Nations Global Compact initiative
• Installed a formal ESG Committee

Climate Goals & Targets

Environmental Challenges

• Dependence on acceptance of technology by customers and partners
• Unsuccessful pilot projects or inconsistent product performance
• Demand dependence on sustainability market trends
• Increased competition
• Dependence on significant customers and OEM relationships
• Delays in municipal client procurement processes
• Impact of the COVID-19 pandemic
• Delays in production scale-up and new facility construction
• Dependence on third-party suppliers
• Increased raw material costs
• Difficulty hiring and retaining key employees
• IT system disruptions
• Challenges in expanding manufacturing operations
• Challenges of international operations and expansion
• Failure to protect intellectual property
• Inadequate protection of technological know-how
• Competitive technological improvements
• Product liability, warranties, and lawsuits
• Compliance with laws and regulations in multiple jurisdictions
• Risk of fraud and dishonest activities

Mitigation Strategies

• Active technology development, piloting, and investment
• On-site commissioning, technical support, and training
• Constructive customer dialogue
• Continuous market trend monitoring and R&D
• Leveraging competitive advantages of dNF products
• Continuous innovation, operational improvements, and organizational development
• Building a global sales and distribution network
• Thorough assessment of municipal client procurement likelihood
• Customer base and sector diversification
• Compliance with health and safety guidelines
• Extensive expansion roadmap and modular production concept
• Multiple interchangeable suppliers
• Proactive pricing strategy
• Leveraging public profile to attract talent
• Cloud-based IT solutions and cybersecurity insurance
• Improved quality assurance processes and controls
• Adapting to international markets and developing response strategies
• Regular intellectual property monitoring and compliance
• Confidentiality agreements, noncompete clauses, and technical precautions
• Insurance coverage for product liability and warranty claims
• Continuous product improvement
• Monitoring laws and regulations and seeking external counsel
• Tailor-made employee training
• Internal control measures and compliance policies
• Cybersecurity consultant engagement

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), UN Global Compact

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers Accountants N.V.

UN Sustainable Development Goals

• SDG 6
• SDG 8
• SDG 9
• SDG 12
• SDG 17

Detailed in the Sustainability Report

Sustainable Products & Innovation

• Direct nanofiltration (dNF) membrane technology

Awards & Recognition

• Global Water Intelligence Wastewater Project of the Year 2022 award

Environmental Metrics

ESG Focus Areas

• Clean water for all
• Avoiding emissions at our customers
• Our internal initiatives

Environmental Achievements

• 2023 membrane sales could enable the production of 254 billion liters of clean water, equivalent to the drinking water supply for 46 million persons during one year.
• Enabled 4,188 ton CO2e savings during the deployment lifetime of modules, by avoiding the use of 7.8 million kg of chemicals and saving 96 GWh energy compared to conventional technologies.
• NX Filtration’s CO2 reduction targets for Scope 1 and Scope 2 emissions have been officially validated by the SBTi. Committing to a 42% decrease in absolute Scope 1 and 2 emissions by 2030.

Social Achievements

• Employee base grew from 135 FTE at the end of 2022 to 166 FTE at the end of 2023, representing more than 15 nationalities.
• 0 lost time injuries and 0 fatalities in 2023.
• Supplier Code of Conduct compliance by all material suppliers and contractors for the new megafactory: 100%.

Governance Achievements

• Formal ESG Committee comprised of two independent Supervisory Board members to formalize governance and oversight responsibilities.
• Improved ESG risk rating from Sustainalytics, ranking amongst the 14% best performers in its global subindustry peer group.
• Participation in the United Nations Global Compact initiative.

Climate Goals & Targets

Environmental Challenges

• Approximately 1.5 years delay in the rollout of its original business plan, caused by longer lead times to convert pilot projects into orders for large full-scale plants, and further impacted by the current financing environment.

Mitigation Strategies

• Cost control measures without impacting medium and long-term growth ambitions.
• Exploring a range of possibilities to increase financial flexibility, including asset-based financing on its €58 million fixed asset base.

Supply Chain Management

Supplier Audits: Various audits conducted with existing and new suppliers

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Droughts

Transition Risks

• Changes in market trends towards greater sustainability

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SBTi, UN Global Compact, EU Taxonomy (preparing for 2026 compliance)

Certifications: ISO 14001

UN Sustainable Development Goals

• SDG 6
• SDG 8
• SDG 9
• SDG 12
• SDG 17

The company's activities contribute to these goals through providing clean water solutions, creating jobs, investing in infrastructure, promoting responsible consumption and production, and fostering partnerships.

Sustainable Products & Innovation

• dNF membrane technology
• Online Projection Tool
• Integrated Rack Design (IRD)

Awards & Recognition

• Global Water Intelligence Distinction Awards for Water Technology Company of the Year and Water Project of the Year
• Frost & Sullivan award for exceptional performance in the global industrial water and wastewater treatment membrane market
• 2023 Impact Scaler Award

Environmental Metrics

ESG Focus Areas

• Clean water
• Low energy and chemical footprint
• Sustainable and socially responsible organization

Environmental Achievements

• Avoided 3,145 ton CO2e emissions through low energy and chemicals footprint of technology
• 72 GWh energy savings enabled during the deployment of NX Filtration’s membrane modules
• Avoided 5.9 million kg of chemicals

Social Achievements

• 4% y-o-y growth in FTEs in H1 2024, 14 nationalities
• 0 lost time injuries in H1 2024
• 100% adherence to NX Filtration’s Supplier Code of Conduct by all material suppliers and contractors for our new factory
• B Corp certified

Governance Achievements

• 9 patent families with a total of 50 patents granted
• 19 partnerships with universities and research institutes

Climate Goals & Targets

Supply Chain Management

Supplier Audits: 100% adherence to NX Filtration’s Supplier Code of Conduct by all material suppliers and contractors for our new factory

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: B Corp

Certifications: B Corp

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 6: Clean Water and Sanitation

Not disclosed

Awards & Recognition

• AMTA (American Membrane Technology Association) 2024 Hall of Fame Award for Advancing Clean Water Solutions