Climate Change Data

Environmental Metrics

ESG Focus Areas

• Enabling solutions: Responsible products and composites at end-of-life
• Social handprint: Health and safety, responsible employer, responsible business
• Environmental footprint: Energy efficiency and reduced emissions, circular economy and waste management, water consumption, responsible supply chain

Environmental Achievements

• Greenhouse gas emissions (scope 1 and 2) reduced to 3.3 thousand tons from 5.3 thousand tons in 2022
• 35% of composite waste recycled in 2023
• Manufacturing units in Austria, China and the United States had no landfill waste in 2023
• Most of the composite waste from the Finnish units were recycled to cement production

Social Achievements

• Lowest lost time incident rate of 6.0 (compared to 10.8 in 2022) in Exel’s history
• Continued development of Group HR processes such as performance reviews, onboarding, trainings, etc.
• Cooperation with local universities and schools
• No fatal injuries occurred at any of the manufacturing sites in 2023

Governance Achievements

• Completed a human rights assessment to assess its operations to identify potential adverse human rights impacts
• Actions taken based on the Human Rights assessment findings across business units and operations
• No suspected misconduct reports through the company’s whistleblowing channel in 2023

Climate Goals & Targets

Environmental Challenges

• Challenging overall market environment
• Customer destocking of inventories accumulated due to Covid-19 pandemic and supply chain disruption
• Temporary demand decrease and postponement of business in the wind power equipment market
• Lower revenue decreased the adjusted operating profit

Mitigation Strategies

• Multiple successful actions to activate sales and contain costs
• Lower personnel costs and savings actions in operations to improve performance
• Downsizing of the pultrusion operations in Runcorn, UK and sale of the real estate related to closed manufacturing facility in Nanjing, China
• Refocusing of US operations
• Secured agreements with its lenders to adjust its covenants

Supply Chain Management

Supplier Audits: Three on-site supplier audits during the year, plus self-assessment questionnaire audit for suppliers in one customer industry product

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions that cause interruptions in production or in the supply chain

Transition Risks

• Regulation changes impacting composite production specifically, e.g. regarding chemicals or their risk classification
• Regulation hampering adaptation to composites or delays in the implementation of favorable standards
• Regulatory differences in Europe, America, and Asia

Opportunities

• Composites are non-toxic, durable, and maintenance-free products, and therefore climate friendly
• Regulations mitigating climate change increase demand for composites
• Climate friendly product design and use in customer acquisition
• Leveraging and expanding collaboration with research centers and universities
• Increasing energy efficiency
• Innovation in recycling and reuse of composites
• Increasing the use of bio-based raw materials
• Climate-friendly developments in production technology, e.g., closed bath impregnation of fibers
• Increasing demand of products that mitigate climate change
• Building awareness about the benefits of composites and production technologies used by Exel
• Expanding into new applications and industries where possibilities of composites are yet to be unveiled

Reporting Standards

Frameworks Used: Nasdaq ESG Guide, TCFD (to the extent possible)

Certifications: ISO 14001/2015, ISO 9001/2015, ISO 45001/2017

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8
• Goal 9
• Goal 12
• Goal 13

Not disclosed

Sustainable Products & Innovation

• Bio-based resins and fibers

Awards & Recognition

• Not disclosed