Climate Change Data

Environmental Metrics

ESG Focus Areas

• Our people
• Our planet
• Our community

Environmental Achievements

• Reached target of less than 30 lost time accidents per 1 million hours worked. Reduction in both frequency and severity of lost-time accidents.
• Energy consumption reduction initiatives implemented, including adapted lighting, heating, and closure of an energy-inefficient production line.
• Significant reduction in residual waste due to improved sorting and waste management practices.
• Launched new OmniPlus-i weaving machine with features minimizing textile waste and reducing energy consumption.

Social Achievements

• 56% of employees completed at least 8 hours of training in 2019.
• Organized workshops on fitness at work for both manual and office workers.
• Organized various sporting events and social activities for employees.
• Launched mentor training sessions to support new colleagues.
• Implemented a suggestion system to encourage employee input and improvement.

Governance Achievements

• Company has drawn up a Corporate Governance Charter as well as a code of ethics. All Picanol Group subsidiaries and employees worldwide comply with the laws and regulations of the countries in which they operate and are guaranteed to comply with their obligations.
• Complies with the basic principles of the Rules of Conduct to Combat Extortion and Bribery of the International Chamber of Commerce (ICC), 1999 revised edition, and the OESD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions of 1997.
• Strict insider trading policy and stringent procedures for disseminating information that may affect the market value of its shares.

Climate Goals & Targets

Environmental Challenges

• Inability to recruit or retain key personnel.
• Work stoppages or strikes.
• Increasingly stringent environmental regulations.
• Higher energy consumption in 2019 compared to previous years.

Mitigation Strategies

• Investing in employee training and development.
• Implementing energy-saving measures (adapted lighting, heating, closure of inefficient production line).
• Budget for compliance with environmental laws and regulations.
• Addressing the increase in energy consumption through various measures.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (PsiControl)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Guidelines on reporting on sustainable development (version ‘core criteria’)

Certifications: ISO 14001 (Romania production site)

Sustainable Products & Innovation

• OmniPlus-i weaving machine

Environmental Metrics

ESG Focus Areas

• Our people
• Our planet
• Our community

Environmental Achievements

• Specific energy consumption and CO2 emissions have fallen despite increased production.
• Reduced specific water consumption in the foundry by 25%.
• Increased application of EcoFill, reducing waste in standard segments by up to 3%.
• Reduced air consumption in airjet machines by around 10%.

Social Achievements

• Launched a diversity and inclusion policy in 2020.
• Organized job days attracting new talent.
• Increased coaching interviews per employee from 1.3 in 2020 to 1.6 in 2021.
• 48% of employees completed at least eight hours of training in 2021.
• Implemented a suggestion system with 83% of suggestions implemented in 2021.

Governance Achievements

• Introduced a Supplier Code of Conduct, with 75% of suppliers signing in 2021.
• Launched a new Code of Conduct in 2020.
• No formal complaints received in 2021 regarding the Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Increase in lost time accidents in 2021 due to increased production pressure.
• Increased energy consumption due to increased automation (robotic grinding machines, new high-bay warehouse).

Mitigation Strategies

• Continued safety awareness campaigns.
• Implementation of energy-saving measures (LED lighting, heat exchanger replacement).

Supply Chain Management

Supplier Audits: 75% of suppliers signed the Supplier Code of Conduct in 2021

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (Romania)

Sustainable Products & Innovation

• Connect machines with energy monitoring and reduced waste.
• EcoFill for reduced weft residue.

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Current conflict in Eastern Europe and Ukraine negatively affecting raw material and energy supply and prices, particularly Muriate of Potash (MOP).
• Increase in energy prices negatively impacting all activities.
• Exceptional weather conditions impacting operational results in Agro and Industrial Solutions segments.
• Risk of information technology failures.
• Dependence on availability of sufficient raw materials at competitive prices.
• Inability to sell, store, reuse, or dispose of certain components.
• Dependence on weather conditions and seasonality.
• Risk of delays, cost overruns, and other complications in current and future investments.
• Exposure to an energy off-take agreement with negative value.
• Sensitivity to commodity price fluctuations.
• Exposure to product liability and warranty claims.
• Inability to recruit and retain key personnel.
• Exposure to geopolitical circumstances.
• Sensitivity to economic and business cycle changes.

Mitigation Strategies

• Revision of sourcing mix for MOP to mitigate supply difficulties.
• Previously concluded forward purchase contracts to limit impact of energy price increases.
• Increase in sales prices to offset higher raw material, energy, and transportation costs.
• Comprehensive approach to managing climate change risks.
• Multiple suppliers for most raw materials.
• Centralized purchase contracts to strengthen negotiating position.
• Price fluctuations translated into sales prices where possible.
• Global credit insurance program to protect accounts receivable.
• Inventory provisions increased to account for potential obsolescence.
• Committed bilateral agreements with banks for liquidity.
• New credit facilities with no financial covenants.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Exceptional weather conditions (heat waves, flooding, natural disasters)

Transition Risks

• Rising input costs (energy, water, materials)

Reporting Standards

Frameworks Used: IAS 34 Interim Financial Reporting

Third-party Assurance: KPMG Bedrijfsrevisoren – Réviseurs d’Entreprises (reviewed, not audited)