Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customers
• Employees
• Supply Chain

Environmental Achievements

• 100% sustainability audited main factories

Social Achievements

• 89 Employee Engagement Index
• 82 Customer Satisfaction Index
• More than 150 employees contributed to society with their Give Back Day

Governance Achievements

• Carnegie Sustainability Award for Best Newcomer at Nasdaq Stockholm
• Established a whistle-blower hotline

Climate Goals & Targets

Environmental Challenges

• Environmental impact through transportation (air freight from Asia)
• Overtime work in factories
• Maintaining corporate culture during growth
• Insufficient management of young workers’ working hours
• Incorrect overtime calculations
• Hazardous waste management
• Insufficient root cause analysis or follow-ups of incidents
• Personal Protective Equipment (PPE) not used by all employees
• Insufficient chemical management
• Fire systems – wrongly placed exit marks, emergency lights or blocked exits

Mitigation Strategies

• Continued sustainability audit programme
• Focus on environment and health and safety working conditions
• Strengthen employer branding
• Empowering every individual and maintaining a continuous learning culture
• Improved risk assessments and related actions
• Procedures in place and better management regarding handling hazardous chemical and hazardous waste
• Improved accident/incident handling processes and follow up actions
• Improved routines covering Personal Protective Equipment (PPE)
• Improved chemical management
• Improved fire protection systems and emergency plans
• More dialogue with factory top management
• Broadened knowledge about health and safety risks and labour rights among factory workers
• Examine and assess transport flows and more actively offer different transportation alternatives for reduced environmental impact
• Continued quality work in the factories, and cooperation with customers for optimized design of the PCB to reduce environmental impact through reduced waste and resource use in production

Supply Chain Management

Supplier Audits: 13 full audits and 15 follow-up audits in 2019

Responsible Procurement

• Sustainability audits are part of our factory development programme and sourcing process
• NCABs Code of conduct is part of the cooperation agreement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Awards & Recognition

• Carnegie Sustainability Award 2019 in the category Best Newcomer
• The Best Annual Report, small cap companies at Nasdaq Stockholm

Environmental Metrics

ESG Focus Areas

• Customers
• Employees
• Supply Chain

Environmental Achievements

• 100% sustainability audited main factories
• Slight increase of goods transported by rail (+12% units)

Social Achievements

• Give Back Day continued during the pandemic
• Welcomed 76 new colleagues
• Continued competence development for all employees (6 new courses at NCAB Academy)
• High scores in employee engagement surveys (Engagement: 89, Team efficiency: 84, Leadership: 86)

Governance Achievements

• No incidents of corruption reported
• Whistle-blowing function available for reporting irregularities

Climate Goals & Targets

Environmental Challenges

• Challenges in supply chain due to the pandemic
• Environmental impact through transportation (air freight)
• Overtime work in factories
• Maintaining corporate culture during growth
• Attracting and recruiting the right people with technical competence
• Customer demands for short lead times impacting transportation choices

Mitigation Strategies

• Continued sustainability audit program
• Focus on environment and health & safety working conditions
• Empowering every individual to make decisions in line with our values
• Maintaining a continuous learning culture
• Examining and assessing transport flows and actively offering different transportation alternatives
• Daily contact with factories to stay updated on their situation
• Remote collaboration with factories
• Using the Greenhouse Gas Protocol to map emissions, set baselines and targets

Supply Chain Management

Supplier Audits: 14 full audits, 2 follow-up audits in 2020

Responsible Procurement

• Code of Conduct aligned with Responsible Business Alliance (RBA) requirements
• Requirements from Responsible Business Alliance (RBA) Code of Conduct
• Responsible Minerals Initiative (RMI) compliance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001, ISO 14001

UN Sustainable Development Goals

• 3.4
• 3.9
• 5.5
• 6.3
• 8.4
• 8.7
• 8.8
• 10.2
• 12.2
• 12.4
• 12.8
• 13.3
• 16.5
• 17.6

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

Environmental Metrics

ESG Focus Areas

• Human rights & Labour rights
• Health & Safety
• Energy efficiency & Renewable energy
• Resource efficiency
• Waste management
• Climate impact
• Wellbeing & Work-life balance
• Equal opportunities for everyone
• Employee satisfaction and engagement
• Business travel
• Sustainable product development
• Sustainable product offering
• Transportation
• Climate impact
• Ethics
• Transparency

Environmental Achievements

• 100% Sustainability audited main factories - improving work and safety conditions and environmental performance
• Climate impact mapping
• Rail shipments to more of our markets, supporting lower CO2 emission
• Updated sustainability strategy

Social Achievements

• Launch of the Design-mistake-tool - supporting customers in the design phase
• 140 New colleagues welcomed
• 87 Employee Engagement Index
• 82 Customer Satisfaction Index
• Winner 2022 Employer of the Year Brilliant Awards - Employee experience

Governance Achievements

• Updated sustainability strategy
• Robust risk management and governance, including all relevant categories of risks.

Climate Goals & Targets

Environmental Challenges

• Continued challenges in supply chain due to the pandemic
• materials, waste management and transportation where we need industry collaborations
• Short lead times in the industry pose a challenge. Air freight from Asia to Europe and USA has a high climate impact.
• Failure to attract and recruit the right people and with technical competence in a competitive market.
• Maintaining corporate culture during growth
• Environmental impact through transportation.

Mitigation Strategies

• Reducing climate impact by identifying and calculating the greenhouse gas emissions linked to our business throughout the value chain.
• Working closely with customers and being involved from the very beginning of their projects
• Broadening our sustainability strategy
• To reduce emissions, we need to up our efforts to find more efficient logistics solutions and offering our customer different freight alternatives.
• Empowering every individual to make decisions in line with our values.
• Maintain a continuous learning culture
• Continued quality work in the factories, and cooperation with customers for optimized design of the PCB to reduce environmental impact through reduced waste and resource use in production.
• Examine and assess transport flows and more actively offer different transportation alternatives for reduced environmental impact.

Supply Chain Management

Supplier Audits: 11 full scope audits, 10 follow-up audits

Responsible Procurement

• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001, ISO 14001

Third-party Assurance: ÖHRLINGS PRICEWATERHOUSECOOPERS AB

UN Sustainable Development Goals

• 3.4
• 3.9
• 6.3
• 8.4
• 8.7
• 8.8
• 10.2
• 12.2
• 12.4
• 12.8
• 13.3
• 16.5
• 17.6

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Winner 2022 Employer of the Year Brilliant Awards - Employee experience

Environmental Metrics

ESG Focus Areas

• Climate impact
• Human rights & Labour rights
• Health & Safety
• Resource efficiency
• Waste management
• Wellbeing & Work-life balance
• Equal opportunities
• Energy efficiency & Renewable energy
• Ethics
• Transparency

Environmental Achievements

• 100% sustainability audited main factories
• Increased share of electricity consumption from renewable sources to 41%
• Reduced injury rate in main factories in China to 0.25% from 0.38%

Social Achievements

• Welcomed 112 new colleagues
• High employee engagement scores (Engagement 87, Leadership 85, Team Efficiency 83)
• Global employee conference and NCAB Give Back Day

Governance Achievements

• Established a Technical Council for technology leadership and sustainability
• No incidents of corruption or discrimination reported
• Whistleblowing function in place

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions in line with the 1.5-degree target of the Paris Agreement
• Broadening supplier base outside China to reduce political risk exposure
• Meeting stakeholder expectations on information and transparency
• Reducing environmental impact through transportation
• Maintaining corporate culture during rapid growth
• Addressing key findings in audits related to occupational health and safety, human rights, and environmental responsibility

Mitigation Strategies

• Climate impact mapping and actions
• Offering customers different freight alternatives
• Continuous sustainability audits and improvement plans
• Onboarding programs, training sessions, and global employee meetings
• Improved procedures for overtime work, medical insurance, and pensions
• Increased focus on waste management and energy efficiency
• Development of more sustainable PCBs

Supply Chain Management

Supplier Audits: 17 full scope audits and 10 follow-up audits in 2022

Responsible Procurement

• Code of Conduct for Suppliers
• Responsible Minerals Initiative (RMI)
• Responsible Business Alliance (RBA) Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Reduced costs from more efficient resource use
• Positive differentiation and increased growth and profitability

Reporting Standards

Frameworks Used: GRI Standards: Universal Standards 2021

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 16
• Goal 17

NCAB’s sustainability strategy is linked to the Sustainable Development Goals (SDGs), with the main contribution being to 8 out of the 17 goals.

Sustainable Products & Innovation

• Ultra HDI PCBs

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Human rights and working conditions
• Resource efficiency
• Waste
• Well-being and balance
• Equal opportunities
• Training and education
• Ethics
• Transparency

Environmental Achievements

• Received EcoVadis Gold rating for sustainability work
• Increased share of renewable energy in offices and warehouses

Social Achievements

• Named best employer in the Brilliant Awards
• High employee engagement (88% engagement index)

Governance Achievements

• No compliance incidents reported
• Improved corporate governance practices

Climate Goals & Targets

Environmental Challenges

• Reduced net sales due to weaker general economy, lower prices, and inventory adjustments
• Supply chain disruptions
• High proportion of Scope 3 emissions (99.5%)
• Limited access to renewable energy in some regions

Mitigation Strategies

• Acquisitions to expand market presence
• Improved cost control and proactive sourcing
• Dialogue with customers and suppliers to reduce climate impact
• Investment in renewable energy and energy efficiency
• Development of alternative sourcing strategies

Supply Chain Management

Supplier Audits: 22 sustainability audits in 2023

Responsible Procurement

• Supplier Code of Conduct
• ISO 9001 and ISO 14001 certifications
• Compliance with RBA Code of Conduct and RMI standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, ISO 26000

Certifications: ISO 9001, ISO 14001

Awards & Recognition

• EcoVadis Gold rating
• Brilliant Awards (best employer)