Climate Change Data

Environmental Metrics

ESG Focus Areas

• Workers’ rights, diversity and non-discrimination
• Human rights and conflict minerals
• Ethics and anti-corruption
• Supply chain and quality
• Health, safety, security and environment (HSSE)

Environmental Achievements

• Several of the Kitron group’s manufacturing units are certified in accordance with the NS ISO 14000 series of environmental management standards.
• No material pollution of the external environment from Kitron's internal value chain.

Social Achievements

• Increased employee satisfaction score on the question “Taking everything into account, I think this is a great place to work” to 73% from 68% the previous year.
• Launched quarterly updates from the CEO to all employees.
• Launched Kitron global awards to recognize extraordinary efforts.

Governance Achievements

• 80% of suppliers signed Kitron’s Code of Conduct as part of their digital onboarding process.
• Number of moderate and increased risk suppliers reduced from 55.9% to 45%.
• Online training in Code of Conduct available in 6 different languages.

Climate Goals & Targets

Environmental Challenges

• Conflict minerals in the supply chain.
• Corruption risks in operations and supply chain.
• Varying reporting methods among Kitron sites for GHG emissions.
• Maintaining a safe working environment with risks from manual mounting and chemical use.

Mitigation Strategies

• Developed company-specific procedures and standards for conflict minerals.
• Conducted corruption and bribery assessment on existing and new suppliers.
• Implemented digital systems and processes to improve supplier screening and onboarding.
• Working to improve GHG emissions reporting methods.
• Implemented job rotation to mitigate risks from repetitive tasks.
• All chemicals are registered and handled according to relevant regulations.

Supply Chain Management

Supplier Audits: 3084 suppliers screened for corruption and bribery risk in 2019

Responsible Procurement

• Kitron Code of Conduct
• Supplier Code of Conduct
• Preferred partner program (63% of electronic components and 66% of PCBs from 9 preferred partners in 2019)
• Risk-based evaluation before entering into new business relationships.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Oslo Stock Exchange Guidelines for Sustainability Reporting, Euronext Guidelines to issuers for ESG reporting

Certifications: ISO 9001:2015, ISO 14001:2015, EN9100:2018, ISO/TS 22163, ISO 13485:2016, 21 CFR 820

UN Sustainable Development Goals

• 5
• 9
• 12
• 13

Kitron's sustainability efforts contribute to Gender equality and women’s empowerment, Build resilient infrastructure, promote sustainable industrialization and foster innovation, Responsible consumption and production, and Climate action.

Environmental Metrics

ESG Focus Areas

• Business ethics
• Ethics and anti-corruption
• Labour and human rights
• Workers’ rights, diversity and non-discrimination
• HSE, safety and security
• Environment and climate
• Responsible value chain
• Supply chain and quality

Environmental Achievements

• Reduced water consumption by 23%
• Increased green energy scope by 23%
• Reached 72% of total electricity use from renewable sources
• Reduced CO2 emissions expressed as energy intensity factor with 10%
• Started reporting to CDP

Social Achievements

• Annual Ethics and corruption awareness trainings was assigned to 1696 of 1940 active employees in 2021. 79,5% of employees that was assigned the training, has completed and passed.
• 74% of employees saying Kitron is a great workplace
• No serious work-related accidents at Kitron sites

Governance Achievements

• Remained corruption free
• Continued the work to on-board non-inventory suppliers using the RFI form. Introduced risk-based requirements for registration and registered higher risk non-inventory suppliers
• Made sure all sites used the new standardised RFI and digital quality management system for gathering and storing RFI data. Reached over 90% in 2021.

Climate Goals & Targets

Environmental Challenges

• Corruption risk in operations and indirectly through business relationships and supply chain
• Main risks posed to the natural environment from Kitron’s operations are direct emissions from the use of chemical liquids, nitrogen, or lead in Kitron’s production and indirect emissions from energy use in operations, transportation and business travels.
• Absence due to illness (as a percentage of total hours worked) was 3.7 per cent for the group in 2021. This is a slight increase from previous years.

Mitigation Strategies

• Risk-based evaluation before entering business relationships
• Kitron does not use agents or market representatives
• Annual Corruption and Risk of Bribery assessment on existing suppliers
• All new suppliers are screened for corruption and bribery risk
• Workplace design, education of employees and routines for safely handling chemicals
• Job rotation for certain tasks to prevent negative effects of repetitive tasks
• Improving reporting routines for incidents and accidents through a digital tool

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Kitron Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Oslo Stock Exchange Guidelines for Sustainability Reporting, Euronext Guidelines to issuers for ESG reporting, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO/TS 22163, 21 CFR 800, AQAP 2110 Edition D Version 1

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 5
• 9
• 12
• 13

Kitron supports the UN Sustainable Development Goals 5, 9, 12, and 13.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Eco Vadis Silver Medal

Environmental Metrics

ESG Focus Areas

• Employees
• Suppliers
• Environment

Environmental Achievements

• Converted to 100% green energy in Denmark from February 2023, reducing CO2 emissions by 75% from 195 Ton CO2 to 49.3 Ton CO2.
• Recycling rate of 79% in the Danish factory (78% in 2022).

Social Achievements

• 60% of employees in the Danish factory are female.
• 30% of managers at all levels are female in 2023 (29% in 2022).
• Implemented a sickness policy, employee handbook, and staff policy.
• Offers health insurance, active non-smoking and non-alcohol policies, Christmas gifts, breakfast, vaccinations, and sports and other employee association events.
• Zero reported injuries in 2023.

Governance Achievements

• Joined the UN Global Compact in 2010.
• Complies with ISO 9001, ISO 14001, ISO 13485, and ISO 45001 standards.
• Implemented multiple anonymous channels for whistleblowing by the end of 2023.
• Actively works on Ethics and Anti-corruption, aiming for zero incidents of corruption by 2030.

Climate Goals & Targets

Environmental Challenges

• Difficulties implementing CSR audits at supplier sites.
• Increased power consumption due to increased production volume.
• Human rights risks in the supply chain (indirectly affected).

Mitigation Strategies

• Simplified supplier CSR classification to 2 classes instead of 4.
• Cleaned up suppliers with limited or no activities.
• Continuous investment in improving the facility to optimize energy consumption.
• Implementing standard Kitron Supplier Code of Conduct.
• Following Kitron Group’s policy, guidelines, and procedures related to human rights and decent work conditions.

Supply Chain Management

Supplier Audits: 0 in 2023

Responsible Procurement

• Kitron Group Supplier Code of Conduct
• Compliance with REACH requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 13485, ISO 45001

UN Sustainable Development Goals

• 5
• 9
• 12
• 13