Climate Change Data

Environmental Metrics

ESG Focus Areas

• Reduced Environmental Impact
• Decent Working Conditions
• High Standard of Business Ethics

Environmental Achievements

• Replaced natural gas with biogas for manufacturing and space heating in Sweden (end of 2018)
• 99% of constituent material in products is recyclable steel
• Implemented heat recovery from air and hot water from compressors, adjusted ventilation operating hours, and replaced lighting fixtures with energy-saving LEDs
• Reduced transport-generated greenhouse gas emissions through local manufacturing in China and the US
• ISO 14001 certified since 1998

Social Achievements

• Zero vision for employee accidents and customer accidents caused by products
• Regular reports compiled on employee statistics covering overtime, sickness absences, incidents, and accidents
• Internal fire safety inspections to prevent damage and injury
• Commitment to no difference in pay between men and women performing similar jobs
• Strict policy on non-discrimination
• Commitment to increasing the number of women in managerial positions

Governance Achievements

• Code of Conduct covers occupational health and safety, environment, management-employee relations, human rights, and business practices
• Global Whistleblowing Policy in place
• Zero-tolerance policy on bribery and other forms of corruption
• Procedures in place for reporting business ethics issues

Climate Goals & Targets

Environmental Challenges

• Elevated level of trichloroethylene in groundwater at the Hillerstorp site in Sweden due to previous activities
• Sustainability risks in the supplier chain (environmental risks linked to production of materials and components, supplier violations of the Code of Conduct)

Mitigation Strategies

• Investigation and monitoring program for chlorinated solvents in groundwater at Hillerstorp
• Continuous cleaning and ongoing testing of water from contaminated well
• Environmental requirements applicable to materials and components
• Human rights and welfare requirements and enforcement through audits of suppliers
• Troax Code of Conduct for Suppliers (to be implemented in 2020)

Supply Chain Management

Responsible Procurement

• Regular dialogue with key suppliers; requirement for information on where parts are manufactured; right to make unannounced visits to supplier sites; right to contract independent parties to conduct inspections

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 16: Peace, Justice and Strong Institutions

Troax's sustainability measures contribute to these goals through initiatives such as improving resource efficiency, promoting decent working conditions, combating corruption, and ensuring product safety.

Environmental Metrics

ESG Focus Areas

• Reduced Environmental Impact
• Decent Working Conditions
• High Standard of Business Ethics

Environmental Achievements

• Reduced energy consumption by more than 6% in the Swedish manufacturing division exceeding the 2% annual target.
• Transitioned from natural gas to biogas in Swedish manufacturing.
• Implemented heat recovery from air and hot water from compressors.
• Switched to LED lighting in premises.
• 99% of constituent material in products is recyclable steel.
• Over 50% of input goods to Troax AB consist of recycled steel.

Social Achievements

• Increased proportion of women employed from 23% in 2019 to 24% in 2020.
• Increased proportion of women in local management groups from 25% in 2019 to 37% in 2020.
• Board of Directors consists of 33% women.
• Implemented procedures for pay reviews and recruitment to ensure equal opportunities policy is observed.

Governance Achievements

• Implemented Troax Supplier Code of Conduct in 2020.
• 100% of suppliers of materials to Troax Shanghai signed the Code of Conduct.
• Established a whistleblower procedure; 1 notification made in 2020.

Climate Goals & Targets

Environmental Challenges

• Elevated level of trichloroethylene in groundwater at the Hillerstorp site in Sweden.
• Need to improve communication about sustainability efforts to employees.
• Customer expectations regarding Troax’s sustainability efforts are not a general focus in their supplier assessment.

Mitigation Strategies

• Continued groundwater sampling twice a year.
• Improved communication strategies planned.
• Proactive approach to addressing sustainability issues as part of business development.

Supply Chain Management

Supplier Audits: A few audits performed in Sweden and the USA before the pandemic.

Responsible Procurement

• Troax Supplier Code of Conduct (implemented 2020)

Climate-Related Risks & Opportunities

Physical Risks

• Environmental accidents caused by leaks, spills or process failures.

Transition Risks

• Sustainability risks in the supply chain (environmental risks linked to production of materials and components; supplier violations of the Code of Conduct).

Opportunities

• Using more recycled steel or alternative steel in production.

Reporting Standards

Frameworks Used: UN Global Compact, Greenhouse Gas Protocol

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 16: Peace, Justice and Strong Institutions

The report details how Troax's initiatives contribute to these goals through resource efficiency, responsible chemical handling, waste reduction, and combating corruption.

Sustainable Products & Innovation

• New 80x80 post with reduced thickness (lower steel consumption)
• New patented Smart Splice (reduced freight packaging volumes)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Reduced Environmental Impact
• Decent Working Conditions
• A High Standard of Business Ethics

Environmental Achievements

• Achieved at least 70% of road transportation within Europe using Euro 6 standard vehicles.
• 100% of air transport by main freight forwarders was carbon-offset.
• Continued efforts towards switching to LED lighting in its premises, with the goal in view of 100% of its lighting being LED-based.
• Maximised opportunities with purification technology in existing evaporators for suitable residual products.

Social Achievements

• Increased the proportion of women employed in the Troax Group from 24% in 2020 to 28% in 2021.
• Several women were employed in senior positions within the Group’s sales organisation.
• The Group now also has its first female production manager of one of its factories.
• Most of the Group’s companies introduced a process in 2021 which involves a documented employee interview with the manager and employee being held at least once a year.

Governance Achievements

• All Troax employees were informed about Troax’s Ethical Guidelines and about the Whistleblowing Policy on an annual basis.
• All main suppliers to Troax AB and Satech Safety Technology Spa signed the Code of Conduct.
• 1 case was reported via Troax’s whistleblowing function during 2021.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption in 2021 due to colder weather.
• Supply shortage of recycled steel in 2021, resulting in a lower than target proportion of recycled steel used.
• Disruptions in the global supply chain in 2021 due to raw material shortages, supplier production hampered by Covid-19, and transport sector imbalances.

Mitigation Strategies

• Continued efforts to increase the proportion of recycled steel, aiming for 80% by 2030.
• Active dialogue with main freight forwarders to use more environmentally friendly vehicles.
• Increased proportion of local production of Troax’s products in the USA and APAC to reduce transportation from Sweden.

Supply Chain Management

Supplier Audits: Few audits conducted in 2020 before the pandemic; resumed in Q4 2021.

Responsible Procurement

• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact, GHG Protocol

Certifications: ISO 14001, ISO 9001

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 8: Decent work and economic growth
• Goal 12: Responsible consumption and production
• Goal 13: Climate action
• Goal 16: Peace, justice and strong institutions

Troax's activities contribute to these goals through its focus on decent working conditions, sustainable production, climate action, and business ethics.

Sustainable Products & Innovation

• New 80x80 post (reduced steel consumption, higher tensile strength)
• New patented Smart Splice (reduced packaging needs)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Economic Sustainability

Environmental Achievements

• Reduced energy consumption per kilogram of steel by 4.9% in 2022 compared to 2021.
• 70% of road transportation within Europe in alignment with the Euro 6 standard in 2021.
• 100% of air transport by main freight forwarders carbon-offset.
• Increased proportion of local production of Troax’s products in the USA and APAC, reducing transportation from Sweden.

Social Achievements

• All employees confirmed understanding and intent to follow the Code of Conduct in 2021.
• Increased proportion of women employed in the Troax Group from 28% in 2021 to 30% in 2022.
• First female head of production at a Polish plant in 2022.
• Most Group companies implemented documented annual employee reviews in 2021.

Governance Achievements

• All main suppliers of materials to Troax AB (Sweden), Troax Shanghai (China) and Satech Safety Technology Spa (Italy) signed the Code of Conduct for suppliers.
• Distributors certified adherence to Troax Group’s policy for distributors regarding anti-corruption, export controls and sanctions in 2022.
• No whistleblowing matters reported in 2022.

Climate Goals & Targets

Environmental Challenges

• Shortage of steel in 2022 due to the war in Ukraine, hindering the increase in the proportion of recycled steel.
• Increase in sick leave in 2020-2022 attributed to the Corona pandemic.

Mitigation Strategies

• Focused on securing steel supplies not originating from sanctioned countries.
• Continued dialogue with suppliers about sustainability and green steel.
• Internal fire safety inspections to prevent damage and injury.

Supply Chain Management

Supplier Audits: Troax AB audited main suppliers in 2022.

Responsible Procurement

• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, EU Taxonomy Regulation (EU 2020/852)

Certifications: ISO 14001, ISO 9001

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

Sustainable Products & Innovation

• New 80 × 80 post with reduced steel consumption
• New patented Smart Splice reducing packaging needs

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Economic Sustainability

Environmental Achievements

• Reduced energy consumption per kilogram by 3.56% compared to 2022.
• 75% of road freight from Sweden in line with Euro 6.
• 100% of carbon emissions from air freight from Sweden compensated.
• 100% of product development projects underwent environmental assessment.

Social Achievements

• Implemented a new whistleblower management process handled by an independent third party.
• Most Group companies have a process in place for documenting annual performance reviews.
• Increased focus on reporting led to a significant increase in reported accidents (attributed to improved reporting, not necessarily a negative trend).

Governance Achievements

• Implemented a new anti-corruption policy in early 2024.
• All Group employees confirmed familiarity with and compliance to the Troax Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Insufficient availability of recycled steel to meet all needs.
• Increase in illness-related absences (partially attributed to the coronavirus pandemic).

Mitigation Strategies

• Actively exploring alternative steels (green steel, carbon-neutral steel).
• Establishing a new standard practice where employees remain home if they are more seriously ill.
• Continuous work in product development to reduce steel use without compromising safety.

Supply Chain Management

Responsible Procurement

• Troax Code of Conduct for Suppliers; requires suppliers to sign the Code of Conduct; reporting system implemented in 2023 for suppliers to report on their management of working conditions, business ethics, and environmental impact.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol (GHG Protocol), EU Taxonomy Regulation (EU 2020/852), UN Global Compact

Certifications: ISO 9001 (Quality) - several units certified, others in process, ISO 14001 (Environment) - several units certified, others in process, ISO 45001 (work environment) - implementation underway

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB (Auditor's review, not a full audit)

Sustainable Products & Innovation

• Optimised Multi bracket for switches (designed to be flexible and save on materials)
• 80 × 80 pole with reduced material thickness (reduces steel consumption while improving strength)
• Patented Smart Splice (contributes to reduced packaging requirements)