Ready for the future

ESG Report 2023

Contents

CONTENTS

Statutory reporting

Management's report

69 Risk assessment and policies (§ 99a)

73

Diversity

74 Data ethics (§ 99d)

6

A word from our CEO

75

Responsible tax

8

Our business model

76

EU Taxonomy

9

Active ownership

Our businesses

10

ESG highlights 2023

11

Actions and results · Group

15

Our businesses

12

Board of Directors and Executive Management

16

BioMar

23

GPV

30

HydraSpecma

37

Borg Automotive

44

Fibertex Personal Care

51

Fibertex Nonwovens

ESG data overview

  1. Environmental reporting 2023
  1. Social reporting 2023
  1. Governance reporting 2023

Statutory report on corporate responsibility pursuant to section 99a of the Danish Financial Statements Act

This ESG report constitutes the Schouw & Co. Group's report on corporate responsibility for the 2023 financial year provided in accordance with section 99a of the Danish Financial Statements Act. The report's statutory sections also include our report on data ethics, see section 99d of the Financial Statements Act. The report on gender composition in management pursuant to section 99b of the Danish Financial Statements Act is provided in the company's Annual Report.

This publication is a translation of the Danish ESG Report 2023. The original Danish text shall be decisive for all purposes and in case of any discrepancy, the Danish wording shall be applicable.

Contents

Management's report

3 ESG-rapport 2023

Overview

At Schouw & Co., we are responsible long- term owners generating growth through transformation. We build businesses of the future by putting people first.

HighlightsESG Highlights

37.2

2.8

-2%

14%

DKK bn revenue

DKK bn revenue

reduction of

share of

CO2e emissions

renewable energy

36

146

years of making successful

years as an

transformations and long-term

industrial business

Revenue (DKK bn)

investments

avg. annual growth rate of +15%

Our company portfolio

Strong portfolio of six industry-leading B2B businesses headquartered in Denmark

BioMar

GPV

HydraSpecma

Borg Automotive

Fibertex Personal Care

Fibertex Nonwovens

100

6

facilities in 35 countries

attractive companies

in our portfolio

15,000

skilled and dedicated employees

+14%

+35%

+14%

37.2

+2%

32.6

21.3

24.2

20.9

2019

2020

2021

2022

2023

Contents

Management's report

4

ESG Report 2023

We are responsible long-term owners enabling growth through transformation of market-leading industrial B2B businesses.

Jens Bjerg Sørensen, President & CEO of Schouw & Co.

Contents

5

ESG Report 2023

  1. A word from our CEO >
  1. Our business model >
  2. Active ownership >
  3. ESG highlights 2023 >
  4. Actions and results · Group >
  5. Board of Directors and Executive Management >

MANAGEMENT'S REPORT

Contents

SEE VIDEO WITH JENS BJERG SØRENSEN

Management's report

6

ESG Report 2023

A word from our CEO

READY FOR THE FUTURE

2023 was a good year for Schouw & Co. both in terms of our financial performance and within our work with ESG. Again this year, we reduced GHG emissions, and at Group level, we increased the proportion of energy from renewable sources. And not least, we have worked diligently on preparing for the upcoming reporting directive.

Contents

Management's report

7

ESG Report 2023

It is therefore satisfactory that Schouw & Co. once again drive momentum on several of the objectives we have set for ourselves.

Jens Bjerg Sørensen, President & CEO

Schouw & Co. has a long history as a responsible and reliable owner, and we have issued corporate responsibility reports for a good many years. Focusing on responsibility, both financially and in a broader sense, is embedded in our values. Given the size of Schouw & Co., with 15,000 employees in nearly 40 countries, it is necessary to consider our impacts on the world - both positive and negative. It is therefore satisfactory that Schouw & Co. once again drives momentum on several of the objectives we have set for ourselves.

Greenhouse gas emissions are, of course, an area of considerable focus. Some of our businesses use large amounts of energy in production, and it is therefore a great achievement that we have managed

to reduce the Group's emissions every year since we started measuring CO2 emissions in 2020. We are well under way to achieving our target of a 35% reduction by 2030.

We have always prioritised the health and safety of our employees, and we have a strong and sustained focus on reducing the number of occupational accidents and ensuring good working conditions for all our employees and this continues to be a high priority in 2023 as well.

Each of our businesses work with the focal areas and objectives that are relevant to their particular industry and context. Borg Automotive, for example, can now document that remanufacturing automotive parts instead of manufacturing new ones

implies, on average, a 60% reduction in CO2e emissions and a 70% reduction in resource consumption. At Fibertex Personal Care, we launched a new low-weight product in 2023 that has the potential to reduce the volume of plastics in diapers considerably. These are merely two examples of how our businesses promote innovation and invest in solutions and products that address some of the challenges we are facing as a society.

Also in the ESG area, 2024 will be an eventful year. A key element is the implementation of the new EU reporting directive, which means that, from 2024, we will no longer issue a separate ESG report, but will integrate our ESG reporting in the annual report. This also means that

new performance indicators will be introduced, that definitions will be changed, that reporting requirements will be tightened, and that the structure of the report will change. We have a strong foundation to build on and take a serious approach to the task at hand.

We have set the direction and gained solid momentum. We are now ready for the future.

Jens Bjerg Sørensen,

President and CEO

Aarhus, 1 March 2024

Contents

Management's report

8

ESG Report 2023

Our business model

Schouw & Co. has a long-term investment horizon. We invest in Danish industrial businesses with international operations and the potential to grow and evolve. We believe in long-term value creation through active ownership.

VALUES

When exercising ownership of a business,

Schouw & Co. will always be guided by an intention

to create value in a decent and trustworthy manner. Our aim is to consistently be relevant and meaningful owners and to challenge and develop our businesses. We do not believe that micromanagement and unnecessary reporting and intervention create long-term value.

Long-term and

Results are created by

Making every penny

A relevant owner

Patient, but

visionary

people

count

demanding

As owners, we willingly

We generate earnings

We have an industrial

As owners, we know that

We exercise an

take risks and invest

and returns on a par

mindset and view

change is necessary and

engaging and consistent

to future-proof our

with the best, but always

operational streamlining

we continually adapt,

ownership approach

businesses with due

in a decent and trust-

as the foundation for

but we always safeguard

through and together

consideration for the

worthy manner.

greater efficiency and

Schouw & Co.'s reputa-

with the current man-

risk involved.

competitive strength.

tion and values.

agement team, support-

ing them in exercising

their full operational

responsibility.

Contents

Management's report

9

ESG Report 2023

Active ownership

Our strategy is based on three 'wheels' that reflect the Group's modus operandi and our mindset. We use a responsibility wheel to highlight our strategic prioritisation of ESG and responsible conduct.

Conglomerate strategy

Diversified

portfolioActive and developing

ownership

Financial versatility

Openness

Active and developing ownership

Profitable growth

Efficient use of capital

Future-proofing

Responsibility

Produce

responsibly

Protect

employees

Promote

innovation

Produce responsibly

The companies of the Schouw & Co. Group are required to manufacture their products efficiently in terms of resource consumption and climate impact.

Protect employees

All employees of the Schouw & Co. Group must be able to go to work and return home safely every day - anywhere in the world.

Promote innovation

Our companies assume responsibility for ensuring strong governance and compliance, and they allocate resources for the development of sustainable solutions.

Contents

Management's report

10 ESG Report 2023

ESG highlights

Produce

Protect

Promote

efficiently and responsibly

workers and ensure

innovation and

attractive places to work

strong governance

2023

Schouw & Co.'s responsibility wheel sets out the Group's targets going forward to 2030 in the three focal areas. In 2023, we gained solid

2030 Ambitions

Reduce GHG emissions by 35% (scopes 1+2)

Transition to 100% renewable electricity

Calculate a baseline for scope 3 before 2025

2030 Ambitions

2030 Ambitions

Achieve high employee

Improve in-house governance

satisfaction across the Group

procedures

Strengthen our diversity mindset

Invest in and facilitate

innovative sustainability

Achieve an LTI frequency rate

below 3 at Group level

Strengthen ESG reporting and

taxonomy alignment

momentum and are now ready for the future with further measures and initiatives towards 2030.

14%

4

Lost-time injury (LTI) frequency rate

renewable energy

businesses having

4.4

452

12% in 2022

ongoing or finished

scope 3 baseline

projects

incidents per million working

DKK million paid in income tax

-19%

hours, reduced from 4.7 in 2022

4

7.7%

247

238

208

200

161

businesses have now

of revenue is currently

2020

2021

2022

2023

2030

established employee

taxonomy-aligned

targets

satisfaction surveys and

Scope 1 ('000 tonnes of CO2e) 

set targets

Scope 2 ('000 tonnes of CO2e)

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Schouw & Co. A/S published this content on 01 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2024 11:12:34 UTC.