Climate Change Data

Environmental Metrics

ESG Focus Areas

• Reducing emissions from PowerCell’s operations
• Robust and reliable products
• Safe, stimulating workplaces
• Responsible sourcing

Environmental Achievements

• Reduced CO2 emissions by approximately 26,500 tons a year through a hydrogen-electric solution for Norwegian ferries (equivalent to emissions from around 13,000 diesel cars a year).

Social Achievements

• Expanded the management team to include a Chief Marketing Officer and a Chief Analytics & Sustainability Officer.
• Developed a Supplier Code of Conduct and implemented methods for assessing and monitoring existing and new suppliers based on sustainability factors.
• Improved recycling rate from 2022 to 2023.

Governance Achievements

• Listed on Nasdaq Stockholm’s main list.
• Joined the UN Global Compact.
• Developed a Sustainability policy.

Climate Goals & Targets

Environmental Challenges

• Short-term risk of higher costs at supplier level due to climate change and increased environmental fees and regulations.
• Medium- to long-term risk that weather changes may affect transport options and costs.
• Short-term risk that PowerCell’s costs will increase due to inability to adjust prices and reduce energy consumption.
• Short- to long-term risk that suppliers will fail to reduce energy consumption and increase energy efficiency.
• Short-term risk that PowerCell or its suppliers will not succeed in establishing procedures for recycling and circular business models.
• Potential for negative impacts on water and marine resources (low risk).
• Potential for stricter regulation of PFAS in fuel cell stacks.
• Short-term risk of workplace accidents and injuries.
• Risk of not offering fair pay and reasonable terms of employment.
• Risk of not being able to offer skills development.
• Risk of not being able to establish an even gender distribution among employees.
• Risk of discrimination against employees.
• Risk of not respecting employees’ freedom of association.
• Risk of child labor, forced labor, or modern slavery in the supply chain.
• Risk of negative effects on local communities.
• Risk of crimes against indigenous people (very low risk).
• Risk of corruption or money laundering (very low risk).
• Risk of participating in cartels (very low risk).
• Risk of withholding or not paying tax (very low risk).
• Risk that PowerCell’s products are not safe (very low risk).
• Risk of misleading marketing or product information.
• Risk of cyber attacks, data breaches, or theft of customer data.

Mitigation Strategies

• Constantly working to make energy consumption more efficient and using 100% renewable electricity.
• Increasing the proportion of electric vehicles among company cars.
• Focusing on increasing efficiency and flow in manufacturing and testing processes.
• Feeding surplus energy from test labs back into the grid.
• Working closely with suppliers and monitoring their cost trends related to energy consumption and emissions.
• Exploring opportunities for increased recycling and reuse of products.
• Participating in a project for increased circularity of fuel cell stacks with Bosch and Dana.
• Mapping water consumption and conducting an in-depth risk assessment.
• Complying with laws and guidelines regarding emissions and handling of harmful substances.
• Closely monitoring industry developments and discussions concerning upcoming regulations on PFAS.
• Analyzing constituent components to detect and understand PFAS content and evaluating PFAS-free substitute materials.
• Complying with laws and guidelines regarding working environment, health, and safety.
• Having several health and safety officers and conducting regular health and safety surveys, audits, and inspections.
• Offering healthy working environments with a good work-life balance.
• Addressing stress-related issues through systematic health and safety efforts.
• Offering fair pay and reasonable terms of employment.
• Providing skills development through internal collaboration and customer projects.
• Having an equality and equal treatment policy.
• Clarifying requirements and expectations for suppliers through the Supplier Code of Conduct.
• Having an external, independent, and anonymous whistleblower service.
• Complying with laws, regulations, and guidelines, including local ones.
• Providing information about and implementing major changes in dialogue with local community representatives.
• Having zero tolerance for corruption, money laundering, and fraud.
• Having processes in place for checking payment transactions and money transfers.
• Having an external, independent, and anonymous whistleblower service for all stakeholders.
• Clarifying requirements for suppliers in terms of corruption and money laundering.
• Conducting business on equal and fair terms.
• Not engaging in lobbying, taking political stances, or making contributions to political parties.
• Clarifying requirements for suppliers in terms of ethical business conduct and fair competition.
• Having a tax policy to pay taxes where value is created.
• Having a daily focus on IT security and aiming to have relevant and up-to-date systems in place.
• Having procedures and processes for how customer data and other data should be handled.
• Regularly training all employees in IT security.

Supply Chain Management

Supplier Audits: Site visits conducted to existing key suppliers and potential new suppliers.

Responsible Procurement

• Supplier Code of Conduct
• ESG-based supplier evaluation
• Minimum requirements for suppliers (including ISO 14001 certification for key suppliers).

Climate-Related Risks & Opportunities

Physical Risks

• Weather changes affecting transport options and costs

Transition Risks

• Higher costs at supplier level due to increased environmental fees and regulations
• Inability to adjust prices and reduce energy consumption

Opportunities

• Strong driver of demand for PowerCell’s products due to the need to counter climate change.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 7
• Goal 12
• Goal 13
• Goal 14

PowerCell’s solutions contribute to these goals by enabling the transition to zero-emission energy systems, reducing waste generation, combating climate change, and reducing marine pollution.

Sustainable Products & Innovation

• Fuel cell stacks and systems for Aviation, Marine, Power Generation, Off-road, and On-road segments.

Awards & Recognition

• Not disclosed