Bergman & Beving : Sustainability Report 2022/2023

SUSTAINABILITY REPORT

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Bergman & Beving has prepared a Sustainability Report for the 2022/2023 financial year covering the Parent Company, Bergman & Beving AB (publ), Corporate Registration Number 556034-8590, and its subsidiaries.

Bergman & Beving aims to be a sustainable company where we actively work to limit the efect of our operations on the environment and simultaneously create long-term value for society and our shareholders. The Group's work to achieve this goal is presented in this Sustainability Report. By signing the 2022/2023 Annual Report, the Board of

Directors has also signed the Sustainability Report.

ABOUT BERGMAN & BEVING | SUSTAINABILITY REPORT

INCREASED BUSINESS VALUE THROUGH CORPORATE RESPONSIBILITY

In Accordance with Chapter 6, Section 11 of the Swedish Annual Accounts Act, Bergman&Bev - ing has chosen to prepare this statutory sustainability report as a separate report from the statutory annual report. Our Sustainability Report describes our sustainability goals, why we have them and our progress during the year. We also describe several examples of initiatives and activities in our prioritised focus areas that

fall outside the scope of measurable targets. The Sustainability Report, structured according to the table of contents below, is in line with the strategy we developed based on our chosen focus areas and goals from the UN Sustainable Development Goals (SDGs). Our goals cover all ESG areas (Environmental, Social and Governance).

CONTENTS

INTRODUCTION FROM THE PRESIDENT & CEO

SUSTAINABILITY VISION

GOVERNANCE MODEL

How we govern sustainability

Values and corporate culture

Code of Conduct

Group policies

SUSTAINABILITY STRATEGY

Stakeholder dialogues and materiality analysis Focus areas and goal formulation

ACTIVITIES AND PROGRESS DURING THE YEAR

Focus areas:

Equality and diversity

Employees

Sustainable value chain

Product porfolio

Materials, waste and circular flows

Emissions and energy consumption

The Group's sustainability team

TABLES: SUSTAINABILITY DATA

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ABOUT BERGMAN & BEVING | SUSTAINABILITY REPORT

WE AIM TO BE A SAFE CHOICE FOR OUR CUSTOMERS, EMPLOYEES AND SHAREHOLDERS

Bergman & Beving's management works purposefully to contribute to sustainable development and continued to advance our positions in the area during the year. Together, we will ensure that the Group reaches its sustainability goals and that we develop in the right direction in accordance with our vision:

To be a leading niche supplier of productive, safe and sustainable solutions to companies.

Bergman & Beving aims to be a safe choice for its customers, employees and shareholders. We want to support and influence customers in making good choices when it comes to sustaina- bility, which we do by maintaining a constant dialogue with our stakeholders and developing our market ofering. Our business concept is based on the idea that the customer ofering from our operations should be a positive force for a sustainable society, since the focus is on providing produc- tive, safe and sustainable solutions to the manufacturing and construction sectors. Demand for sustainable solutions, as well as reporting requirements, have increased markedly in the last few years. This is a strategic opportunity for Bergman

• Beving, since it will create greater demand for solutions that increase productivity, safety and sustainability. We see this current trend as a journey where we take well-chosen steps forward to help create a more sustainable world.
  Bergman & Beving strives to mitigate climate change as well as to adapt to it - the first two of the six environmental

objectives established by the EU. That is why the Group's companies carried out climate calculations according to the GHG Protocol, which you can read about on page 42. By measuring the climate impact of our operations, we can implement measures to reduce emissions and help build beter conditions for sustainable consumption and production across the entire value chain. All of the Group's companies have clear objectives for more eficient resource use as well as increased reuse and recycling in order to work with the EU's remaining four environmental objectives to protect the environment and biodiversity. Finally, all activities within the Group must adhere to our current Code of Conduct and other policies that ensure that our activities comply with minimum safeguards.

MagnusSöderlind,

President & CEO

SUSTAINABILITY VISION

Sustainable development refers to development that meets today's needs without jeopardising the ability of future generations to meet their own needs. As a proponent of sustainable development, we take responsibility for the way in which our businesses reach their profitability goals. This responsibility spans the entire value chain - from product development and purchasing to the end of the production cycle.

Our vision is to be the leading niche supplier of productive, safe and sustainable solutions to companies. This vision also means that we strive to be a driving force for sustainable development, including improved safety and productivity in companies. Our companies' solutions strengthen our customers' sustainability.

For us, leading means the long-term ability to create value through sustainable devel- opment, growth and profitability. This means being a company that takes responsibility for society and the environment while it strives for higher profitability. Achieving this goal will require, for example, smart product development and responsibility for the working conditions in the supplier chain, dedicated employees that enjoy working for their employer and eficient transports.

Sustainability creates business value in the form of more loyal customers, more satisfied employees and more sustainable products. Simply put, sustainability is a prerequisite for long-term profitability. The purpose is to reduce business risks, create business opportunities and promote a trustworthy and future-oriented sustainability agenda.

ABOUT BERGMAN & BEVING | SUSTAINABILITY REPORT

GOVERNANCE MODEL

This section describes how operations are governed according to the sustainability goals we have set and which rules and policies govern our activities. For more informa- tion, refer to the Corporate Governance Report, which is a part of Bergman & Beving's statutory Annual Report.

HOW BERGMAN & BEVING GOVERNS SUSTAINABILITY

meeting our ambitious objectives. In practice, this means that our employees prioritise initiatives and take decisions as close to their customers and market as possible. This creates a sense of motivation and allows our employees to develop. We act with integrity, are considered a good role model and take responsibility for sustainable, value-creating development. The Group has a whistleblowing system where both internal and external stakeholders can report suspected misconduct and improprieties in our operations.

CODE OF CONDUCT

Board of Direc-

tors

Management

Business units

Employees

Establishes Group-wide sustainability goals, responsible for the sustainability strategy and the Code of Conduct as well as decisions on policies.

Breaks down sustainability goals and prioritises work. Monitors and evaluates devel- opment.

Establish their own sustainability goals in addition to the Group-wide ones and conduct sustainability initiatives.

Carry out sustainability initiatives and develop tools and processes that promote sustainability in the operations.

Our Code of Conduct is a critical tool for supporting Bergman & Beving's decentralised organisation and applies to all employees and suppliers.

The Code of Conduct is based on documents such as the Universal Declaration of Human Rights, the ILO (Inter- national Labour Organization) Core Conventions, the OECD Guidelines for Multinational Enterprises and requirements in the UN Global Compact. The Group also bases its Code of Conduct on the Code of Business Conduct from the Swedish Anti-Corruption Institute (IMM), a driving force within anti-corruption in society and business.

A sustainable value chain means responsible purchasing that complies with the Group's values with respect to business ethics, human rights, prohibitions on child and forced labour, and equitable working conditions. Berg- man&Beving's Code of Conduct imposes requirements on suppliers to respect fundamental human rights and to treat their labour force fairly and with respect, with the aim of counteracting corruption. The suppliers also ensure that their sub-suppliers, contractors and agents act in accordance with the Group's Code of Conduct and assess their performance in relation to this Code.

VALUES AND CORPORATE CULTURE

Our values and corporate culture form the basis of the Group's sustainability agenda. Bergman & Beving's values and corporate culture are based on genuine entrepreneur- ship. We strive to innovate and develop competitive ofer - ings and build relationships. We summarise our values with keywords such as:

• Responsibility and freedom
• Simplicity
• Eficiency
• Openness and a willingness to change

Our subsidiaries conduct their operations with a high degree of freedom and are also held accountable for

It is important to the Group that its business partners meet its expectations, and that every supplier actively approves and confirms that it will observe the Code of Conduct. Regularly conducted audits, by both independent external consultants and by internal personnel, ensure that the Group's suppliers are meeting our expectations.

We strive for a sustainable value chain by increasing the share of purchases from certified suppliers and the share of purchases from suppliers who have signed the Group's Code of Conduct.

GROUP POLICIES

The Group has a number of employee policies and guide- lines, such as guidelines for systematic occupational health and safety, incidents and emergencies, equal treatment as well as guidelines for alcohol, drugs and hazardous substances.

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ABOUT BERGMAN & BEVING | SUSTAINABILITY REPORT

SUSTAINABILITY STRATEGY

STAKEHOLDER DIALOGUES AND MATERIALITY ANALYSIS

At Bergman & Beving, we work continuously to prioritise how we can maximise the impact of our sustainability initiatives.

In order to invest its resources purposefully, Bergman & Beving bases its sustainability strategy on a materiality analysis that indicates where we believe we have the greatest opportunity to have an impact. The materiality analysis is, in turn, based on stakeholder dia- logues. The basis of the Group's current sustainability strategy was established in 2017 when the first stakeholder dialogue and subsequent analysis took place.

An updated materiality analysis was then carried out in 2022 through stakeholder dialogues in the form of interviews and questionnaires sent to owners, employees, stakeholders in society, customers and suppliers. In the coming financial year, a double materiality analysis will be carried out that will form the basis for future regulatory changes for the Corporate Sustainability Reporting Directive (CSRD). As seen in the below diagram, a safe work environment and product safety are the most important sustainability issues for our stakeholders.

SIGNIFICANT FOR ALL STAKEHOLDERS

Very important	6
	5
Moderately	4
important

-corruption

certification

consumption

and

developmentenvironmentHuman

innovation

Climate

Biodiversity

purchasinginvolvement

diversity

anti

circular

flows

product

impact

Transportation

rights

ethics

and

ficiency

and

safety

and

Energy

ResponsibleCommunity

Equality

Skills

Safe

work

Business Resource

e

Product

Sustainable

Biodiversity is currently the lowest priority, but according to external analysis and experiences from external consulting firms we work with when it comes to sustain- ability, this area will likely be more highly prioritised in the future. This was also evident in the in-depth interviews carried out with a number of stakeholders.The greatest consensus was surrounding transportation, sustainable product innovation and responsible purchasing. The most important sustainability issues in each stakeholder group are as follows:

• Investors: Human rights, business ethics and anti- corruption, safe work environment, and climate impact
• Employees: Safe work environment, human rights, and product safety and certification
• Customers: Product safety and certification, safe work environment, and climate impact
• Suppliers: Business ethics and anti-corruption, product safety and certification, safe work environment, and climate impact
• Society: Responsible purchasing, safe work environment, and climate impact

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