Climate Change Data

Environmental Metrics

ESG Focus Areas

• Gender equality
• Employees
• Upgrading industry for greater sustainability
• Emissions and energy consumption
• Sustainable value chain

Environmental Achievements

• Two additional subsidiaries completed their ISO certification.
• Improved the procedure for reporting emissions data, updated our calculation basis to comply with the GHG Protocol and began evaluating how to effectively measure our footprint.

Social Achievements

• Implementation of public whistleblowing function (open to suppliers, employees, customers, the general public, etc.)
• Seafire presents its annual sustainability award to its subsidiary Pexymek AB for its ISO certification and sustainable business model.
• Updated Sustainability Policy and Code of Conduct adopted by the Board of Directors

Governance Achievements

• Seafire’s network of Group production managers held its first meeting, discussing topics which included waste management and resource efficiency.

Climate Goals & Targets

Environmental Challenges

• Geopolitical unrest and higher inflation impacted performance during the year and gave rise to uncertainty concerning Seafire’s financial performance in 2024.
• Weak performance towards the end of the year affected earnings for the full year.
• Weak sales figures for Kenpo, DOFAB and Färg-In related to the economic downturn in the construction sector.
• E-commerce vendor Nordbutiker was adversely affected by limited consumer purchasing power.
• Borö-Pannan, which was acquired during 2023, saw a weak sales trend in the second half of the year as a result of deferred government grants, which led to a more cautious approach among end customers in Denmark and Germany.
• The Group was not entirely successful in adjusting costs to the lower demand.
• Bankruptcy of Lingua Communications Nordic AB due to gross embezzlement.
• Disposal of assets in Hedén Group AB.
• Transition risks (higher production costs, switching suppliers, increasing the price of raw materials, costs involved in switching to climate-friendly technologies).
• Risk of misunderstanding new sustainability reporting requirements or not having time to implement the required processes.
• Increased risk of human rights violations in the supply chain due to sourcing from Eastern Europe and Asia.
• Increased risk of bribery in Bosnia.

Mitigation Strategies

• Took action in the subsidiaries in Q4 to address the cost structure, where the target is to improve the Group’s operating margin.
• Successfully managed to compensate for higher procurement prices and the weak Swedish krona, primarily through price adjustments.
• Entered into a long-term bank financing agreement during the first half of 2023 which is expected to significantly reduce interest expenses going forward.
• Actively working to reduce dependence on climate-sensitive raw materials and improve the efficiency of energy and water consumption.
• Looking at measures to improve production and distribution, including investing in more sustainable practices.
• Closely monitoring developments regarding sustainability reporting standards.
• Setting requirements for suppliers and engaging in dialogue with them.
• Staying in regular contact with the site manager in Bosnia, adopting a clear position regarding bribery and making site visits.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct for suppliers
• Increasing purchases from certified suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Climate-related issues affecting assets and the prices of energy, raw materials, etc.
• Disruption to both production and distribution

Transition Risks

• Higher production costs
• Switching suppliers
• Increasing the price of raw materials
• Costs involved in switching to climate-friendly technologies

Opportunities

• Greater demand for products as the world transitions to a greener society (e.g., Bara Mineraler, lightweight sandwich panels, energy-efficient doors and windows, digital monitoring for farmers).

Reporting Standards

Frameworks Used: GRI, GHG Protocol

Certifications: ISO 14001, ISO 9001, IATF 16949

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 5 (Gender equality)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 13 (Climate action)

The focus areas selected are based on where we believe we have the greatest opportunity to make an impact.

Sustainable Products & Innovation

• Sustainable solutions for plots for planting and cultivation
• Lightweight sandwich panels for lower CO2 emissions
• Energy-efficient doors and windows
• Digital monitoring for farmers

Awards & Recognition

• Seafire ESG award to Pexymek