Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Action
• Environmental performance & Circular resource management
• Working conditions & Living wage
• Diversity & Inclusion

Environmental Achievements

• Vianode reduced CO2e emissions by up to 90% compared to conventional graphite production.
• Nordic Climate Group completed 20 projects demonstrating significant energy efficiency and a shift to natural refrigerants.
• Svea Solar avoided 626,000 tons CO2e emissions from customers switching to solar panels.

Social Achievements

• Svea Solar conducted more than 10,000 hours of training for 576 employees.
• Altor portfolio companies created 6.8% net employee growth (0.4% excluding M&A).
• Network of Design defined circularity design principles and KPIs for sustainable raw materials and packaging.

Governance Achievements

• 93% of Altor portfolio companies have a Code of Conduct.
• 87% of Altor portfolio companies have an anti-corruption policy and procedures.
• 78% of Altor portfolio companies have a third-party whistleblowing channel.

Climate Goals & Targets

Environmental Challenges

• Supply chain shortages, declining consumer confidence, rapidly rising energy prices, and increasing cost of capital affected portfolio companies.
• Several portfolio companies are at the beginning of a learning curve when it comes to reporting on sustainability KPIs.
• Data quality and reporting timeliness remain challenges for Principle Adverse Impact (PAI) indicator reporting.

Mitigation Strategies

• Altor works with portfolio companies to continuously expand the scope and improve the quality of sustainability data.
• PwC conducted limited assurance on PAI indicators to improve and validate the process.
• Altor is working to manage up all compliance KPIs to 100%.

Supply Chain Management

Responsible Procurement

• Network of Design assessed environmental, social and ethical risk of each company in the network’s supply chains.
• Svea Solar developed thorough supply chain due diligence process and became members of Ethical Trading Initiative (ETI).

Climate-Related Risks & Opportunities

Transition Risks

• Select portfolio companies may face higher transition risk exposure should society move quickly to decarbonize.

Opportunities

• Investing in the green transition.

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, SBTi

Third-party Assurance: PwC (limited assurance on PAI indicators)

Environmental Metrics

ESG Focus Areas

• Climate Action
• Environmental performance & Circular resource management
• Working conditions & Living wage
• Diversity & Inclusion

Environmental Achievements

• H2 Green Steel secured funding and equipment for green hydrogen production, aiming for 95% lower CO2e emissions by 2030.
• Eleda calculated Scope 3 emissions and set a net-zero ambition for 2045.
• Trioworld increased the share of Loop alternative products (min. 25% PCR) and invested in recycling capacity.
• TOTEME set a climate impact reduction strategy focusing on air freight, distribution, and supplier engagement.

Social Achievements

• H2 Green Steel built a diverse team with a 50/50 gender split in management.
• Eleda organized a joint work environment day and imposed requirements in Supplier Code of Conduct to manage health and safety risks.
• Trioworld implemented a new safety culture to minimize accidents.
• TOTEME held workshops with suppliers to discuss living wages and working conditions.

Governance Achievements

• Altor expects portfolio companies to have a board-approved Policy Package covering topics and requirements as per the Altor Compliance & Sustainability Policy Package and the Sustainability Standards in the RIO policy.
• Altor expects high standards of business ethics, including full compliance with relevant legislation and conventions.

Climate Goals & Targets

Environmental Challenges

• Some portfolio companies are at the beginning of a learning curve when it comes to reporting on more complex sustainability KPIs such as GHG emissions scope 3.
• Achieving 100% portfolio coverage with SBTi validated targets by 2025.

Mitigation Strategies

• Altor works closely with portfolio companies to continuously expand scope and improve data quality.
• Altor actively supports portfolio companies in developing, setting, and implementing ambitious science-based targets.

Supply Chain Management

Responsible Procurement

• Eleda's Supplier Code of Conduct; Trioworld's updated supplier policies; TOTEME's supplier engagement on living wages and GHG reduction.

Climate-Related Risks & Opportunities

Transition Risks

• Rapid decarbonization scenarios may pose higher transition risks for some holdings in Industrial and Consumer sectors.

Opportunities

• Decarbonization offers opportunities for companies to become green transition winners.

Reporting Standards

Frameworks Used: SFDR, SBTi, TCFD, UNGC, GHG Protocol

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB (limited assurance on PAI indicators)

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 16
• Goal 17

Altor's four prioritized sustainability topics are linked to the UN SDGs.

Sustainable Products & Innovation

• H2 Green Steel's green hydrogen-based steel; Trioworld's Lean and Loop products.