Climate Change Data

Environmental Metrics

ESG Focus Areas

• Production
• Solutions
• People
• Communities

Environmental Achievements

• Reduced CO2 emissions by 9%
• Approved €1.5 million of works to further improve the energy efficiency of our plants
• Completed a sustainable packaging review and committed to sourcing 100% of packaging from recycled, recyclable or biodegradable materials by 2030
• Entered a non-binding agreement with H2 Green Steel for the supply of 140,000 tonnes of steel between 2024 and 2031
• Completed our first Environmental Product Declaration (EPD) for The Thermopanel V4, V4 Plan and V4 Ramo ranges

Social Achievements

• Improved Employee Net Promoter Score (eNPS) to -8 from -9 in 2021
• Improved response rate of 74% in employee engagement survey (up from 70% in 2021)
• Improvement in all health and safety KPIs in 2022 compared to 2021, including a reduction in the number of accidents deemed ‘High Severity’ by 57%
• Implemented actions based upon the staff engagement survey in late 2021, focusing on feedback and communication, wellbeing, and learning and development
• Increased the proportion of women in senior management positions to 27% from 24%

Governance Achievements

• Joined the UN Global Compact
• Implemented a whistleblowing channel
• Completed a gap analysis on reporting Purmo Group’s ESG progress in accordance with GRI standards
• Implemented policies for responsible tax payments, data privacy and security, ethical conduct, ethical supplier conduct, competitive behaviour and whistleblowing, and investing in training for bribery and corruption
• Approved a new groupwide Anti-Corruption and Anti-Bribery policy

Climate Goals & Targets

Environmental Challenges

• Lower production volumes impacting emission reduction targets
• Need to source 100% of packaging from recycled, recyclable or biodegradable materials by 2030
• Need to trace all key materials to source by 2030
• Addressing stress-related concerns from employees
• Focusing on wellbeing through ergonomics

Mitigation Strategies

• Energy efficiency measures in our plants, energy audits, smart energy monitoring devices
• Sustainable packaging review and implementation of new materials
• Collaboration with EcoVadis to assess the sustainability of plants and suppliers
• Implementation of an online learning and development platform, local initiatives in Health and Wellbeing, performance management process for personal development
• Investigating Health and Safety ergonomics software

Supply Chain Management

Supplier Audits: Over 115 suppliers invited to EcoVadis assessment

Responsible Procurement

• Supplier Code of Conduct: Respecting human rights, adhering to ILO standards, reducing carbon footprint, increasing use of recycled materials, refusing conflict minerals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001, ISO 50001 (aiming for by 2025)

UN Sustainable Development Goals

• SDG 8
• SDG 11
• SDG 12
• SDG 13

Sustainable Products & Innovation

• Unisenza and Unisenza Plus systems for smart energy control

Environmental Metrics

ESG Focus Areas

• Our Production
• Our Solutions
• Our People
• Our Communities

Environmental Achievements

• Reduced CO2 emissions by 19%
• Achieved a 25% reduction in energy required to produce radiators at Meiningen plant, Germany
• Removed Expanded Polystyrene (EPS) from Kaba2 electric radiator production in Gateshead, UK, equivalent to removing just over 1 million plastic bottles from the environment annually.
• Reduced the thickness of pallet stretch wrap in Birtley, UK, saving the equivalent of 409,500 plastic bottles annually.
• Entered into an agreement with H2 Green Steel to purchase 140,000 tonnes of green steel between 2026 and 2033, reducing CO2 by up to 95%.

Social Achievements

• Increased employee survey participation from 74% in 2022 to 80% in 2023.
• Completed a pilot expert-training programme in HVAC solutions in collaboration with Fachhochschule Burgenland GmbH.
• Obtained gender equality certification in Italy.
• Significantly reduced occurrences of bullying and harassment.
• Improved employee Net Promoter Score (eNPS) from -8 to -8 (no change).

Governance Achievements

• Completed double materiality assessment.
• Established a Green Finance Framework and issued a EUR 60 million green hybrid bond.
• Implemented policies for responsible tax payments, data privacy and security, ethical conduct, ethical supplier conduct, competitive behaviour and whistleblowing.
• Carried out a Human Right Impact Assessment.

Climate Goals & Targets

Environmental Challenges

• Reducing the embodied carbon in steel used in production.
• Reducing water consumption across operations.
• Eliminating unrecyclable materials from packaging.
• Increasing the sales of smart, sustainable solutions.
• Improving safety culture and reducing Lost Time Injury Frequency Rate (LTIFR).

Mitigation Strategies

• Improved plant energy efficiency measures.
• ISO 50001 certification for Ochtrup and Moson plants.
• Group-wide packaging focus on key actions to improve recyclability and sustainability.
• Commitment to purchase low-carbon embodied steel.
• Implementation of new Health and Safety organizational structure and ergonomics software.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (respecting human rights, adhering to ILO standards, reducing carbon footprint, increasing use of recycled materials, refusing conflict minerals)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, EU Taxonomy

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001

Third-party Assurance: KPMG (limited assurance on Scope 1 and 2 GHG emissions)

UN Sustainable Development Goals

• SDG 8
• SDG 11
• SDG 12
• SDG 13

Purmo Group believes its business can make a material difference to these SDGs.

Sustainable Products & Innovation

• Thermopanel v4
• Heat pump radiator range

Awards & Recognition

• Maecenas special prize for Moson plant, Hungary