Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Cost efficiency
• Recycling

Environmental Achievements

• Upgrades larger portion of recycled plastics – lower cost
• Lower weight of products

Social Achievements

• Not disclosed

Governance Achievements

• Approved for listing on Nasdaq First North Premier

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Social Responsibility
• Governance

Environmental Achievements

• Achieved carbon neutrality for Scope 1 and 2 emissions in 2021 (target year 2025)
• Reduced energy efficiency to 0.63 kWh/kg of product in 2021 (target 0.60 kWh/kg in 2022)
• Reduced waste to 0.09 kg waste/kg product in 2021 (target 0.08 kg in 2022)
• 80% renewable energy use in 2021 (target 85% in 2022)

Social Achievements

• Established a strong supplier Code of Conduct addressing environmental and social issues
• All employees receive sustainability training
• Reported two accidents in 2020 with three days of lost working time; improved incident reporting in 2021

Governance Achievements

• Established a sustainability policy approved by the board
• Good governance rating by CICERO Green
• Intends to strengthen sustainability work with more systematic risk assessments and concrete targets for Scope 3 emissions

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions are far larger than Scope 1 and 2 emissions
• Raw materials originate from fossil fuels (99% virgin fossil fuels)
• Lack of systematic evaluation of risks in upstream and downstream supply chain
• Has not assessed climate risks in its supply chain
• Has not yet reported according to TCFD recommendations

Mitigation Strategies

• Plans to find green solutions for diesel steam generators (2023/24) and generate renewable electricity at production sites (solar PV in Poland in 2022)
• Initiated development projects to increase the share of recycled polymers
• Intends to conduct a more systematic risk assessment in 2022 to identify salient risks
• Intends to establish concrete targets related to Scope 3 emissions
• Plans to report according to TCFD recommendations in 2023

Supply Chain Management

Supplier Audits: All suppliers met; self-audit process followed by in-depth site visit for new suppliers

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Transition Risks

• Increased carbon prices

Opportunities

• Increased demand for products improving plastic recycling and making products lighter and more durable

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDG 7, 8, 9, 12)

Certifications: ISO 9001, ISO 14001, ISO 45001 (Scotland site)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 9
• SDG 12

Nexam focuses its sustainability work on affordable and clean energy, decent work and economic growth, industry, innovation, and infrastructure, and responsible consumption and production.

Sustainable Products & Innovation

• Additives to polyesters (PET) to improve properties and increase recycling possibilities
• Additives to polyolefins (PE/PP) to upgrade properties
• Additives improving heat resistance in high-functionality plastics

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Plastic Recycling
• Renewable Energy
• Sustainable Solutions

Environmental Achievements

• Continued growth in recycling
• Aggressive investment in Reactive Recycling leading to new orders in South Korea (SEK 2m)

Social Achievements

• Christer Svanberg started as new CTO, bringing experience and leadership to development operations.
• Finished the installation of a new machine line in Lomma, improving productivity and capability.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Slow period in additives for PET foam (used in wind turbine blades) due to installation permits, component shortages, and inventory adjustments.
• Negative operating profit (-SEK 1.4 million)

Mitigation Strategies

• Cost optimization program to save SEK 5 million annually.
• Focusing operations on areas with cutting-edge expertise and sustainable, green solutions.
• Offsetting loss in wind power through strong growth in other areas.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Increased electricity production needs will benefit customers in the wind power industry.

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Additives for plastic recycling, improving properties and recyclability.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Renewable energy
• Plastic recycling
• Sustainable society

Environmental Achievements

• Received Nasdaq Green Equity Destination in Q1 2022

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Sales decrease of 7% in Q2 2022 compared to Q2 2021 (except for Performance Masterbatch which increased by 23%)
• Decline in sales of PET foam by over SEK 12 million in Q2 2022 compared to Q2 2021 (45% decrease in additives sales)
• Turbulence in the market for wind power due to global unrest and high investment costs

Mitigation Strategies

• Replacing a production line in Lomma to improve capacity
• Building more inventories in Q3 to compensate for production stoppage
• Maintaining gross margins around 40% despite inflationary pressure

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Growth in renewable energy and plastic recycling

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Additives for improving recycled plastic quality

Awards & Recognition

• Nasdaq Green Equity Destination

Environmental Metrics

ESG Focus Areas

• Sustainability
• Recycling
• Innovation

Environmental Achievements

• Higher share generated in green areas; Nasdaq Green Equity Designation
• Reduced footprint

Social Achievements

• Great place to work at

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Challenging raw material situation in view of shortages and transportation bottlenecks
• Slow demand in the wind energy sector

Mitigation Strategies

• Capacity expansion project in Lomma started
• New line operational in Q4
• Major effort to adapt the production system to current volumes
• Multiple projects to increase capacity
• Improving recycling business
• Building proof of concept in more areas

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: Nasdaq Green Equity Designation

Certifications: Null

Third-party Assurance: Cicero

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Resource efficiency
• Recycling

Environmental Achievements

• Received £100k grant from Innovate UK to develop new materials for the civil aviation sector.
• Development of recycling solutions with increased international attention, particularly the "Recolour Plus" concept.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Weak economic activity
• Modest sales volumes

Mitigation Strategies

• Implementation of two major savings programs (totaling SEK 13 million annually), resulting in a lower cost base and improved cash flow.
• Increased in-house production.
• Sharpened commercial strategy focused on additives that improve plastics.

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: IFRS

Certifications: Nasdaq Green Equity Transition

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Additives that make plastics lighter, stronger, and more recyclable
• Recycling solutions ("Recolour Plus")

Awards & Recognition

• Not disclosed