Climate Change Data

Environmental Metrics

ESG Focus Areas

• Long-term, systematic sustainability efforts
• Responsible growth
• Sustainable global business
• People and relationships

Environmental Achievements

• Introduced Group-wide measurement and monitoring of carbon dioxide equivalents generated in the logistics chain.
• Substantially increased the number of general supplier audits that included sustainability.
• Performed three in-depth sustainability audits of suppliers in China and Taiwan.

Social Achievements

• Strengthened the Bufab Academy by adding sustainability elements to several training courses.
• Integrated sustainability and anti-corruption into the induction programme for new employees.
• Offered sustainability training to all regional managers and Managing Directors.

Governance Achievements

• Developed the handling of sustainability aspects in Bufab’s management system.
• Improved communication with customers, suppliers and employees about sustainability.
• All subsidiaries performed a self-assessment in relation to BBP (Bufab Best Practice).

Climate Goals & Targets

Environmental Challenges

• Suppliers’ sustainability efforts (social aspects, environment, and human rights)
• Conflict minerals
• Environmental impact of transport
• Risk of losing key employees
• Inherent risk of corruption in business relationships

Mitigation Strategies

• Continuous audits of new and existing suppliers to ensure compliance with the Code of Conduct.
• Consolidation of the supplier base and increasing the proportion of Preferred Suppliers.
• Requesting suppliers to submit reports on conflict minerals using the Conflict Mineral Reporting Template.
• Working with fewer and larger transport suppliers, using maritime transport, and increasing delivery fill rates.
• Continuous monitoring of energy consumption, emissions, and transport in manufacturing companies.
• Bufab Academy and other competency development programs to retain employees.
• Anti-corruption training course and risk assessment of all subsidiaries.

Supply Chain Management

Supplier Audits: Substantially increased in 2017

Responsible Procurement

• Supplier Code of Conduct
• Supplier Management Module (SMM)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 103: Management Approach 2016, UN Global Compact

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

Environmental Metrics

ESG Focus Areas

• Long-term, systematic sustainability efforts
• Responsible growth
• Sustainable global business
• People and relationships

Environmental Achievements

• Silver medal in EcoVadis rating, among the top 7 percent of companies in the industry
• Sustainability policy for purchasing logistics services
• Continued work to minimize environmental impact from transport by consolidating shipments and using maritime transport where possible.
• ISO 14001:2015 certification for 13 companies and ISO 9001:2015 for 29 subsidiaries

Social Achievements

• Anti-corruption training for all Managing Directors and Group management
• Continued broad training around sustainability issues within the Bufab Academy (3,384 training hours)
• Active efforts to influence diversity issues and other HR performance indicators
• Implementation of a whistle-blower function

Governance Achievements

• Implementation of Bufab Best Practice (BBP) management system, integrating ISO 26000:2010
• Renewed external audit of sustainability efforts (EcoVadis)

Climate Goals & Targets

Environmental Challenges

• Supplier sustainability efforts (health and safety, waste management)
• Risk of conflict minerals in components
• Transportation emissions
• Need to accelerate progress towards 2020 objectives
• Insufficient number of supplier audits performed

Mitigation Strategies

• Continuous audits of new and existing suppliers
• Consolidation of supplier base and increase in Preferred Suppliers
• Use of Conflict Mineral Reporting Template
• Efforts to use fewer and larger transport suppliers, maritime transport, and high fill rates
• Revised plan with added resources for supplier audits in 2019
• Implementation of an improved supplier database

Supply Chain Management

Responsible Procurement

• Bufab Supplier Code of Conduct
• Supplier self-assessment tools, capability audit tools and scorecards
• Incentive models to reward well-performing suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 103: Management Approach 2016, UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, IATF 16949

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

Awards & Recognition

• Silver medal in EcoVadis rating

Environmental Metrics

ESG Focus Areas

• Long-term, systematic sustainability efforts
• Responsible growth
• Sustainable global business
• People and relationships

Environmental Achievements

• Electricity bought amounted to 3.5 (4.3) MWh/SEK million
• CO2 emission amounted to 0.60 (0.76) MT/SEK million
• Bumax reduced its energy consumption by half, saving SEK 1.2 million annually in energy costs and significantly reducing carbon dioxide emissions.

Social Achievements

• Increased investment in the Bufab Academy
• Significantly improved overall EcoVadis rating
• No human rights violations were reported during 2019.

Governance Achievements

• Intensified quality and sustainability audits of key suppliers, according to tougher Supplier Code of Conduct
• Implementation of KPIs and targets in each sustainability focus area, e.g., sustainable energy usage

Climate Goals & Targets

Environmental Challenges

• Supplier sustainability efforts (Social aspects, environment, and human rights)
• Conflict minerals
• Transport emissions
• Potential loss of key employees

Mitigation Strategies

• Continuous audits of new and existing suppliers to ensure they conform to the requirements of our Code of Conduct
• Consolidation of supplier base and increase the proportion of Preferred Suppliers
• Best Practice creates transparency and structure to counteract human rights abuses
• Requesting suppliers to submit reports using the Conflict Mineral Reporting Template
• Continuous monitoring of mineral use and extraction
• Working with fewer and larger transport suppliers, using maritime transport and increasing delivery fill rate
• Bufab Academy and other competency development programs to create an attractive and stimulating workplace

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 103: Management Approach 2016, UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, IATF 16949, OHSAS 18001

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

Awards & Recognition

• Named “Most responsive supplier globally” by Schneider Electric

Environmental Metrics

ESG Focus Areas

• Sustainability

Social Achievements

• Implemented a cost savings program resulting in a reduction of approximately 170 employees (12%) since the end of Q2 2019, while still achieving strong organic growth (10%) at year-end.

Governance Achievements

• Signed the UN-backed Science Based Targets initiative in February 2021, committing to significant reductions in greenhouse gas emissions.

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic significantly impacted operations, particularly during Q2, leading to strongly negative organic growth.
• Assessing suppliers with travel restrictions in place.
• Integration difficulties following acquisitions.

Mitigation Strategies

• Implemented comprehensive short-time working and cost-saving measures.
• Leveraged services offered through local presence in supplier markets.
• Implemented a “Pull Integration” strategy for acquired companies.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

Environmental Metrics

ESG Focus Areas

• Climate change
• Supplier sustainability
• Human rights
• Diversity and inclusion
• Anti-corruption

Environmental Achievements

• All suppliers signed Supplier Code of Conduct
• Commitment to the Science Based Target initiatives.
• New solar panel park at largest center of excellence

Social Achievements

• Launched Global People Circle (GPC) with global employee survey
• Acquisition of a learning management system for all employees
• Initiated a trainee program aimed at developing young talents

Governance Achievements

• No corruption incidents reported
• Anti-corruption training for all employees in management positions in sourcing, as well as for lead buyers
• Long-term share-based incentive programme for senior executives and other key employees

Climate Goals & Targets

Environmental Challenges

• Strained supply chains due to global transport crisis and Covid-19 restrictions
• Increased commodity prices and strengthening US dollar
• Slight increase in CO2 emissions due to increased travel and air freight

Mitigation Strategies

• Successful price increases passed on to customers
• Effective cost control and operational leverage
• Closer cooperation with preferred suppliers to solve transport and supply problems
• Investing in self-generated electricity (solar panels)
• Commitment to Science Based Targets initiative to reduce greenhouse gas emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainability audits
• Conflict minerals screening
• ISO 9001 and REACH compliance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, AS9120 B

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 16
• Goal 17

Bufab's identified material topics align with these SDGs; efforts to contribute through growth, improvements, and investments

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Silver medal from EcoVadis

Environmental Metrics

ESG Focus Areas

• Climate change
• Circularity
• Ethics

Environmental Achievements

• Reduced total energy consumption by 12% through energy efficiency projects.
• Achieved a 94% material recycling rate.

Social Achievements

• Launched a Sustainable Supplier Engagement Program (SSEP) to reduce greenhouse gas emissions in the value chain by 55% by 2031.
• Improved Employee Net Promoter Score (eNPS) from 11 to 14.

Governance Achievements

• Adapted policies, processes, and tools to meet the requirements of the new CSRD legislation.
• Trained staff on CSRD purpose and contribution.

Climate Goals & Targets

Environmental Challenges

• Lower demand in certain industrial segments.
• Supply chain disruptions due to geopolitical unrest and the disruption in the Red Sea.
• Increased focus on total cost of C-parts.
• Increased demands on sustainability.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Developed more global partnerships.
• Offered integrated, comprehensive solutions for procurement, design, logistics, and quality assurance.
• Integrated sustainability into internal processes and external supply chains.
• Prepared for compliance with the EU’s Corporate Sustainability Reporting Directive (CSRD).

Supply Chain Management

Supplier Audits: 80% of purchases sustainability audited

Responsible Procurement

• Supplier Code of Conduct
• Sustainability module in partnership program
• Conflict mineral screening

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Supply chain disruptions

Transition Risks

• Stringent regulations
• Increased carbon pricing

Opportunities

• Positioning as a sustainable partner
• Supporting customers' decarbonization journey

Reporting Standards

Frameworks Used: CSRD, GRI, SBTi

Certifications: ISO 14001, ISO 9001, IATF 16949

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• 3 Good Health and Well-being
• 5 Gender Equality
• 8 Decent Work and Economic Growth
• 9 Industry, Innovation, and Infrastructure
• 12 Responsible Consumption and Production
• 13 Climate Action
• 16 Peace, Justice, and Strong Institutions
• 17 Partnerships for the Goals

Activities aligned with SDGs described throughout the Sustainability Report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Quality Award from Schneider Electric
• EcoVadis Silver Medal