Climate Change Data

Environmental Metrics

ESG Focus Areas

• Quality
• Safety
• Environment

Environmental Achievements

• The Group reports every year about its environmental performances in an Environmental Report, available on its Internet site (www.agfa.com).

Social Achievements

• A Code of Conduct was introduced in 2003. Its aim is to further increase the staff’s awareness of the high standards of morality and integrity according to which Agfa intends to conduct its business.
• Agfa is also increasingly focussing on promoting internal mobility to enable employees whose function has become obsolete because of the change in technology to find another function within the Group.
• The Group annually invests 2.95 days per employee in extensive training and development programs, covering not only technical training but also personal development and change management.

Governance Achievements

• The Board of Directors decided to continue the Long Term Incentive Plan for the upper management levels with a new tranche with an exercise price of 18.27 Euros.
• It was also decided to extend the option term of the previous tranches to 10 years.

Climate Goals & Targets

Environmental Challenges

• Sharp deterioration of external circumstances, slowdown of the worldwide economy, substantial appreciation of the Euro and increased price erosion.
• Extremely weak market conditions in Consumer Imaging, resulting in an operating loss.
• Persistent sluggishness in the graphic industry, especially in Europe.

Mitigation Strategies

• Successfully concluded the Horizon plan, reducing costs by 550 million Euros and working capital by 1 billion Euros.
• Cost savings of 100 million Euros per annum were identified in Consumer Imaging, and 750 people were made redundant.
• Divestiture of Non-Destructive Testing business.
• Launched the Orion plan targeting top line growth, improved operational efficiency and quality, and further reduction of working capital by 350 million Euros.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Processless thermal printing plates
• Digital printing plates
• Inkjet printing applications

Awards & Recognition

• EISA award for ‘Best European film of the year’ (Ultra 100 color negative film)

Environmental Metrics

ESG Focus Areas

• Environment
• Human Resources
• Corporate Citizenship

Environmental Achievements

• Total water consumption decreased by 5.0% compared to 2007.
• Wastewater load diminished by 24.6% in 2008.
• CO2 direct emissions were reduced by 5.1%.
• Total waste volume decreased by 9.7% since 2007.
• Total energy consumption was reduced by 0.7% in 2008.
• VOC emissions were reduced by 5.0%.

Social Achievements

• Number of reportable injuries per million working hours went down by 28% in 2008.
• 116,119 hours were spent on training in 2008.
• Female workforce increased to 22.2% of the total workforce.

Governance Achievements

• All main manufacturing plants are formally ISO 14001 certified.

Climate Goals & Targets

Environmental Challenges

• High raw material prices and the strong Euro had a negative impact on sales.
• Deteriorating economic conditions affected sales in the second half of the year.
• Economic slowdown affected CtF and CtP segments.
• Strong Euro led to price erosion and weaker competitive position.
• Some care organizations postponed investments.
• Declining trend for some traditional film products continued.

Mitigation Strategies

• Cost reduction initiatives (social plans).
• Active CO2 reduction program in Wiesbaden (32% electricity from CO2 neutral sources).
• Suzano operates on 100% CO2 emission-free electricity.
• Process water reduction program in Manerbio and Vallese.
• Improvements in production processes in Mortsel.
• Waste reduction plan in Mortsel.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 14001

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Chemistry-free printing plate systems (:Azura TS, :N92-VCF)
• Innovative synthetic paper (Synaps)
• Membranes for electrolysis and wastewater treatment

Awards & Recognition

• Process Premier Award (Leeds)
• ökoprofit certificate (Wiesbaden)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by over 10%
• Reduced energy consumption
• Reduced wastewater load by 40%
• Reduced hazardous waste
• Commissioned a second Combined Heat and Power Plant (CHPP) in Mortsel, providing over 60% of electricity and 50% of heat needs.
• Opened a new biological wastewater treatment plant in Mortsel, reusing 40% of wastewater.

Social Achievements

• Continued implementation of training and development programs for managers.
• Created the Academy Learning Platform, an online training catalog for all employees.
• Introduced a new Performance Management process.
• Merged HR departments into a single global shared service, increasing efficiency and job mobility.

Governance Achievements

• Regularly reviews Corporate Governance Charter to ensure alignment with latest principles.
• Corporate Risk Management Committee and Corporate Risk Manager in place to assess and mitigate risks.
• Code of Conduct implemented for all employees.

Climate Goals & Targets

Environmental Challenges

• Accelerating decline of traditional film sales
• Adverse currency effects
• Uncertain economic situation
• Increase in SO2 emissions (addressed through maintenance).

Mitigation Strategies

• Implemented extra restructuring measures to tackle structural changes in the film industry and refocus businesses.
• Invested in energy efficient processes, buildings, and installations to reduce energy consumption.
• Implemented process optimizations at the Westerlo plant to reduce VOC emissions.
• Thorough maintenance check on the first CHPP in Mortsel to address SO2 emissions increase.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Safety, health, and environmental conditions included in contracts with suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, OHSAS 18001, ISO 50001 (planned at several sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Chemistry-free printing plates (:Azura, :Amigo TS, :Azura Vi, :N94-VCF), Synaps synthetic paper, PETix materials for smartcards, Zirfon Pearl membranes for hydrogen production

Awards & Recognition

• Green Plant recognition (Wuxi Printing Plate site, China)
• Environmental Stewardship certificate (Branchburg site, NJ, USA)
• Arup Award for Sustainable Manufacturing (Leeds plant, UK)

Environmental Metrics

ESG Focus Areas

• Environment
• Human Resources
• Corporate Governance

Environmental Achievements

• Agfa Graphics is the global market leader for chemistry-free printing plates, reducing the environmental footprint of its users.
• Agfa HealthCare’s innovative solutions help to reduce the ecological footprint of the healthcare industry by reducing the use of consumables and chemistry, and eliminating the need to transport files on film and paper.

Social Achievements

• Launched Internal Mobility program globally to have the right employee in the right position.
• Implemented training and development program for all Agfa managers, including online training catalog.

Governance Achievements

• Formal evaluation of the Board of Directors and Executive Management was conducted.
• Initiatives taken to comply with Belgian Law regarding gender diversity on the Board level.

Climate Goals & Targets

Environmental Challenges

• Difficult economic circumstances, unfavorable exchange rates, slowdown in some emerging markets.
• Decline of analog businesses.
• Weak investment climate.

Mitigation Strategies

• Specific cost-saving programs to reduce pension and healthcare obligations.
• Improvement of operating working capital through inventory management.
• Focus on optimization of production sites, product portfolio rationalization, service efficiency, equipment quality, and R&D.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Sustainable Products & Innovation

• Chemistry-free printing plates
• Eco-friendly print systems
• DR solutions reducing X-ray dose
• Synaps synthetic paper

Awards & Recognition

• Award from SERVICE 800’s Customer Satisfaction Executive Conference

Environmental Metrics

ESG Focus Areas

• Planet
• People
• Performance

Environmental Achievements

• CO2 emissions (Scope 1 & 2) dropped to 137.7 ktonnes/year
• Total waste volume reduced by 19.06% (2016-2021)
• Total water consumption reduced by 39.87% (2016-2021)
• Waste diverted from disposal increased by 8.08% (2016-2021)
• Total energy consumption reduced by 24.47% (2016-2021)

Social Achievements

• Frequency rate of reportable accidents decreased by 51.25% (2019-2021)
• Frequency rate of accidents with minimum one lost working day increased by 43.02% (2020-2021), but decreased by 14.19% (2019-2021)
• Number of accidents with minimum one day lost decreased by 37.50% (2019-2021)

Governance Achievements

• Awarded a bronze medal by EcoVadis for sustainability performance
• Strengthened integration of the Corporate Sustainability Office within global Agfa’s governance
• Systematically linked divisions and teams’ priorities to societal impact via the UN 2030 Agenda

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19
• Need to increase transparency and granularity of sustainability information

Mitigation Strategies

• Implemented adapted engagement strategy for customers (virtual events, webinars)
• Established additional internal platforms to address sustainability topics
• Created a dedicated section on corporate website for sustainability information

Supply Chain Management

Supplier Audits: 100% of key and core suppliers signed Agfa's Code of Conduct

Responsible Procurement

• Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (core option)

Third-party Assurance: EcoVadis

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 9
• SDG 12
• SDG 13

Agfa's activities contribute to these SDGs through various initiatives detailed in the report.

Awards & Recognition

• EcoVadis Bronze Medal

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equality, and Inclusion
• Safety, Health, and Environment
• Sustainable Procurement
• Learning and Development

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Environmental and social requirements are included in our suppliers’ assessment
• Agfa strives to source from suppliers who align with its values and adhere to Agfa’s Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN SDGs

UN Sustainable Development Goals

• 17 United Nations Sustainable Development Goals (SDGs)

Through an iterative exercise of materiality assessment, we identify those goals where our business can have a direct impact. For these prioritized goals, we set targets and define action plans to achieve them.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity & Inclusion
• Sustainable Procurement
• Resource Use and Circular Economy
• Health & Safety
• Human Rights

Environmental Achievements

• Decreased total energy consumption by 6.6% compared to 2022 (-36.2% excluding ex-Agfa Offset Solutions).
• Decreased direct (Scope 1) and indirect (Scope 2) CO2 emissions by 7.5% and 7.6% respectively compared to 2022 (-24.1% and -70.2% excluding ex-Agfa Offset Solutions).
• Decreased air emissions (excluding CO2) by 14.3% (28.8% excluding ex-Agfa Offset Solutions).
• Decreased VOC emissions by 14.4% (36.4% excluding ex-Agfa Offset Solutions).
• Decreased total water consumption by 17.6% (80% excluding ex-Agfa Offset Solutions).
• Decreased wastewater pollution load by 37.8% (74.6% excluding ex-Agfa Offset Solutions).
• Decreased total waste volume by 16.7% ( -64.5% excluding ex-Agfa Offset Solutions).
• Increased reused PolyEthylene Terephthalate (PET) up to 1,250 tons per year.
• Maintained a high level of waste beneficially reused instead of going to landfill (92.9% including, 85.6% excluding ex-Agfa Offset activities).

Social Achievements

• Launched 'We Are Agfa' initiative to cultivate a culture of accountability, collaboration, excellence, and value creation.
• Employee engagement score increased from 57% to 60%.
• Launched three Employee Resource Groups (ERGs): EMBRACE, Equal Gender Opportunity (EGO), and Generations Working Together (GWT).
• 32.2% female intake in recruitment, exceeding market representation by 5% in three out of six areas.
• Average training hours per employee increased to 12.9 hours.

Governance Achievements

• Completed the sale of its Offset Solutions division.
• Implemented a comprehensive carbon reduction plan.
• Extended ESG objectives to all employees subject to the Global Bonus Plan (excluding HealthCare IT, to be added in 2024).
• No confirmed incidents of corruption or bribery.

Climate Goals & Targets

Environmental Challenges

• Tough macroeconomic and geopolitical conditions, weakening economy in China, adverse currency effects, cost inflation.
• Decline of traditional film activities due to challenging economic conditions and geopolitical circumstances.
• Weakness in the electronics industry impacting volumes of ORGACON conductive materials.
• Medical film business impacted by centralized procurement practices in China and geopolitical situation.
• Direct Radiography (DR) business facing postponed investment plans in Europe and North America.
• Fluctuating market demands leading to higher specific waste volume.

Mitigation Strategies

• Strengthened focus on growth engines (HealthCare IT, Digital Printing Solutions, Green Hydrogen Solutions).
• Divestment of Offset Solutions.
• Investments in cloud technology for HealthCare IT.
• Price increase actions and cost improvements.
• Increased manufacturing efficiency and price increases for ZIRFON.
• Actions to increase division’s agility and adapt to market conditions (right-sizing, relocations, cost control, price increases, net working capital actions).
• Ongoing analysis, monitoring and optimization of energy efficiency.

Supply Chain Management

Supplier Audits: 100% of new contracts with key and core suppliers included Agfa Supplier CoC (2020-2023).

Responsible Procurement

• Agfa Supplier Code of Conduct
• Supplier Sustainability Declaration (SSD)
• Sustainability clause in standard supply contract

Climate-Related Risks & Opportunities

Physical Risks

• Extreme natural events impacting operations or supply chain.

Transition Risks

• Regulatory changes, market shifts.

Opportunities

• Development of energy-efficient products
• Growth in green hydrogen market

Reporting Standards

Frameworks Used: GRI Standards, EU Taxonomy Regulation, EU Non-Financial Reporting guidelines

Certifications: ISO 9001, ISO 13485, ISO 14001, ISO 27001, ISO 20000-1, ISO 45001

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 5 (Gender equality)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate action)

Agfa's initiatives contribute to these goals through various programs and actions detailed in the report.

Sustainable Products & Innovation

• ZIRFON membranes for green hydrogen production
• SpeedSet 1060 packaging printer
• Next-Generation Hybrid Anapurna H3200 inkjet printer
• Water-based inks

Awards & Recognition

• Best in KLAS for Enterprise Imaging for Radiology solution in the PACS Middle East/Africa category
• Frost & Sullivan’s ‘Best Practices Customer Value Leadership Award’ for 2023
• Four Pinnacle Product Awards from PRINTING United Alliance
• 3M Performance Guarantee for Tauro printer series and Anuvia ink set
• EcoVadis bronze medal

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainable Performance
• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Safety

Environmental Achievements

• Reinvestment plan for energy production in Belgium is on track → reduction of combined scope 1 + 2 GHG absolute emissions set at 62% by 2030 from a 2006 base year for Belgian manufacturing sites considering the revised EU ‘Fit for 55’ package.
• Joined the Science-Based Targets initiative (SBTi) and committed to develop near-term science-based emissions reduction targets for the Group by end 2025.
• NHS Evergreen Sustainable Supplier Assessment completed, resulting in receiving a Level 2: Comprehensive net zero targets and reporting for carbon emissions for Agfa Healthcare IT and Radiology Solutions in the UK.

Social Achievements

• DEI Council and 3 Employee Resource Groups working on gender equality, ethnicity and collaboration across generations continue in 2024.
• 18.4% female intake (recruitment) and 23% women share in total Agfa group at end Q1/2024.
• Reinforced safety programs are being rolled out, including ‘Safety High Five’

Governance Achievements

• Agfa-Gevaert Group Sustainability report released – publicly available on website.
• Full compliance to Agfa ‘Progress in sustainability towards next-generation products’ principle.
• A Product & Process Sustainability Core Team has been kicked off, enabling a more mature approach and governance for Agfa’s product and process sustainability.
• First steps taken towards CSRD Compliance

Climate Goals & Targets

Environmental Challenges

• Medical film under pressure in China due to centralized procurement practices and go-to-market reorganization.
• Destocking at dealer side for medical film.
• Softness in European and North American markets for Direct Radiography (DR).
• Higher silver prices and lower volumes for film products impacting profitability.
• Lower volumes in Digital Print Solutions (DPS) due to anticipation of FESPA product launches.
• Postponed investment decisions due to new product launches.

Mitigation Strategies

• Go-to-market reorganization in China for medical film.
• Streamlining and repositioning of the DR business.
• Ongoing ink swap program for Onset machines.
• Strategic partnership between Agfa and EFI.
• Lease financing for the ZIRFON project.
• Expansion of ZIRFON production capacity.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CSRD (in progress)

Sustainable Products & Innovation

• ZIRFON green hydrogen production membrane

Awards & Recognition

• Best in KLAS Awards 2024: Enterprise Imaging for Radiology in Middle East/Africa, Enterprise Imaging XERO Viewer
• Censinet Cybersecurity Transparent Leader Award