Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Health & Safety
• Social

Environmental Achievements

• New gift box without plastic window for MXS 5.0 NA and updated Powersport in CT5 series.
• Product EOL will not be changed, only new products.
• Environmental demands included in product specifications from 2018.
• Take away plastic window in products going forward and reduce transport of "air" (reduce size when possible).

Social Achievements

• No corruption incidents reported internally or externally.
• Employee survey performed, partly as health survey –result will give guidance for activities during 2019
• Sick leave rate of 2.1% (target is max 3.5%)

Governance Achievements

• No incidents reported related to anti-corruption or anti-trust.

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions from transports
• Improving energy efficiency at HQ Vikmanshyttan
• Making packages more sustainable
• Ensuring all Tier 1 suppliers comply with CTEK's sustainability demands

Mitigation Strategies

• Investigating and prioritizing carriers for transport, developing procedures for measurement and follow-up.
• Establishing energy efficiency targets and applying for authority support for EV chargers.
• Implementing new ways of securing correct information in packages, examining and evaluating all parts of packages to identify improvement ideas.
• Creating a communication plan to suppliers, establishing working procedures for auditing and monitoring, and securing supplier understanding of expectations.

Supply Chain Management

Responsible Procurement

• CTEK's sustainability demands

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented environmental friendly Giftbox for high runner products, reducing paper and eliminating plastic windows.
• Reduced printed manuals in new and updated products.
• Phased out one supplier that didn't meet CTEK's sustainability demands.
• Updated CTEK company car policy, setting targets for new cars to be Euro class 6 or better and not exceed 170 grams WLTP, with an annual reduction of 15 grams WLTP until 2025.
• CO2eq reduction of 43% (5.25 tons CO2) from waste at HQ Vikmanshyttan. No waste to landfill.

Social Achievements

• One traffic accident (2 employees involved), investigated by police and insurance company. Zero major incidents. Three minor incidents, investigations documented.
• Sick leave rate of 0.9% (target is max 3.5%).
• Employee survey score of 8.1 (target is 7 or above).
• Implemented CTEK Covid-19 Guidelines to manage the pandemic's impact on employees and operations.

Governance Achievements

• No reported or suspected cases of corruption, anti-trust, money laundering, conflict of interest, or tax non-compliance.
• CTEK Code of Conduct updated and implemented. E-learning performed with high participation rate.
• Implemented a “Whistle blower” reporting system (planned).

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacted manufacturing, transport capacity, and sustainable targets in some areas.
• Delay in implementing and verifying targets to minimize environmental impact from production due to Covid-19.
• CO2eq emissions from goods transport increased by 324% (1754 tons CO2) due to Covid-19 effects on stock reduction and air freight replacement of sea freight.

Mitigation Strategies

• CTEK acted quickly in many areas, like employee health, working from distance etc.
• Transition of company car fleet to EV/PHEV is ongoing, exceeding internal targets by 53%.
• Ongoing activities to address open deviations identified in safety inspections.

Supply Chain Management

Responsible Procurement

• CTEK's sustainability demands included in supplier contracts and evaluations.
• Training provided to suppliers on CTEK Code of Conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI standards (target)

Certifications: ISO 14001:2015

Third-party Assurance: Bureau Veritas

Environmental Metrics

ESG Focus Areas

• Climate change
• Gender equality
• Diversity & Inclusion
• Employee well-being
• Responsible supply chains
• Governance
• Human rights
• Business ethics

Environmental Achievements

• Joined the Science Based Targets initiative, committing to reduce Scope 1 and 2 emissions by 42% by 2030 (based on 2021 emissions).
• Reporting carbon emissions in accordance with the Green House Gas Protocol Reporting Standard.

Social Achievements

• Continued relatively low levels of sick leave.
• 0 incidents, 0 accidents, 0 deaths in the workplace in 2021.
• High levels of employee satisfaction.
• 23 nationalities represented among employees.

Governance Achievements

• Continued to refine and update company policies and guidelines (Code of Conduct, Sanctions Compliance Policy, Risk Management Policy, Business continuity policy, Anti-corruption guidelines).
• Comprehensive business ethics training for risk groups and new employees.
• No cases of corruption, antitrust violations, money laundering, or conflicts of interest reported.

Climate Goals & Targets

Environmental Challenges

• Continued supply chain challenges with component shortages, high logistics costs and a higher proportion of purchases outside framework agreements.
• Reduced purchasing power in the end-consumer segment leading to reduced activity in the Aftermarket division.
• Higher cost level and lower profitability.
• Negative cash flow.
• Increased resource commitment on the development side due to cooperation with GM.
• Macroeconomic factors impacting the company and employees.

Mitigation Strategies

• Initiated strong measures to improve profitability and cash flow, expected to reduce operating costs by around SEK 80 million annually.
• Expecting to generate a positive cash flow for the full year 2023.
• Working to significantly reduce the cost of the Ultium Charger product.
• Planning the launch of another product for GM in Q2 2023.
• Guaranteed preferential rights issue of SEK 350 million to increase financial flexibility.
• Weekly meetings with staff to inform and update on progress and changes related to the organisation.
• Continuous risk assessments regarding the working environment.
• Dedicated working groups focusing on transition and organisational changes.

Supply Chain Management

Responsible Procurement

• Requires suppliers to meet sustainability standards and comply with the Company's Code of Conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol Reporting Standard, UN Global Compact

Third-party Assurance: Ernst & Young AB

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 9: Industry, innovation and infrastructure
• Goal 11: Sustainable cities and communities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action
• Goal 17: Partnerships for the goals

CTEK's ESG strategy is designed with a specific focus on these eight global goals.

Sustainable Products & Innovation

• CS Free series (portable battery charger that can charge without a power supply)
• CS ONE series

Awards & Recognition

• CTEK CS ONE named best battery charger by Auto Express.
• CTEK named a finalist in the Automechanika awards for the CS ONE and NJORD GO products.
• CTEK named winner of the SEMA Global Media Awards 2022 with its CS FREE charger.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Launched a new version of the award-winning Chargestorm Connected 3 electric car charger with Vehicle-to-grid and Vehicle-to-X features.

Social Achievements

• Continued relatively low levels of sick leave.
• 0 incidents, 0 accidents, 0 deaths in the workplace.
• High levels of employee satisfaction.

Governance Achievements

• Continued training in Business Ethics.
• No cases of corruption, antitrust, money laundering, or conflicts of interest reported.

Climate Goals & Targets

Environmental Challenges

• Risk of the Company's carbon footprint increasing due to external factors in the supply and logistics chain.
• Risk of ill-health among employees due to macroeconomic situation and higher workloads.
• Risk of human rights violations in the supply chain due to limited site audits.
• Challenges in ensuring compliance with rapidly changing international sanctions.

Mitigation Strategies

• Environmental risks included in annual risk assessment.
• Weekly meetings with staff to address organizational changes.
• Continuous risk assessments regarding the working environment.
• Dedicated working groups focusing on transition and organizational changes.
• Goal to return to previous procedures regarding audits of suppliers.
• Regular annual mandatory training on Code of Conduct and business ethics.
• Focus on business ethics and Code of Conduct, resulting in in-depth assessments in identified risk areas.

Supply Chain Management

Supplier Audits: Audits of all tier-1 suppliers

Responsible Procurement

• Compliance with the Company's Code of Conduct by key suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, UN Global Compact

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 9: Industry, innovation and infrastructure
• Goal 11: Sustainable cities and communities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action
• Goal 17: Partnerships for the goals

Sustainable Products & Innovation

• Chargestorm Connected 3

Environmental Metrics

ESG Focus Areas

• Environmental Factors
• Social Factors
• Corporate Governance

Environmental Achievements

• Planning of logistics and product warehouses to reduce carbon emissions from transport
• Increased diversification and an increased share of tier-1 suppliers audited from a sustainability perspective

Social Achievements

• Code of Conduct based on ethical and moral business principles that has been implemented and approved by the Board
• All suppliers required to sign and comply with the Code of Conduct, which is evaluated annually

Governance Achievements

• Code of Conduct addresses regulatory compliance, respect for human rights, employees, child labour, health and safety and the environment

Climate Goals & Targets

Environmental Challenges

• Weak market for new electric cars in North America affected sales of EVSE
• Reduced EVSE deliveries to North American customer compared with the comparative quarter

Mitigation Strategies

• Implemented cost savings and continued focus on reducing working capital
• Continued cost control and improved profitability resulted in a significantly reduced debt-to-equity ratio

Supply Chain Management

Supplier Audits: Increased share of tier-1 suppliers audited from a sustainability perspective

Responsible Procurement

• Code of Conduct

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Innovative electric vehicle chargers and accessories