Atlas Copco

Governance roles

Reference: pages 39-40. Board composition detail is cross-referenced to the Corporate governance report (pages 93-98).

The Board "has the overarching responsibility for overseeing Atlas Copco Group's strategy" and approves and oversees the Code of Conduct (page 39).

Board composition (page 39): nine members - eight non-executive and one executive (the President and CEO); two employee representatives, each with a personal deputy; four women and five men; eight of nine (88%) considered independent.

Management (pages 39-40): each member of Group Management is responsible for implementation and follow-up of strategy and targets, "although the President and CEO has the ultimate responsibility". The Group Sustainability team is headed by the Vice President Sustainability, who "reports to the SVP Chief Communications Officer, who is a member of Group Management".

Councils (pages 39-40): a Sustainability council chaired by a division president; a Human Resources board; a SHEQ council; a Sustainability Reporting and Disclosure council chaired by the VP Sustainability, reporting to a steering committee of the CFO, Chief Communications Officer, Chief Legal Officer, Chief Human Resources Officer and VP Investor Relations; and a Diversity and Inclusion council chaired by the President and CEO.

Information provided to the administrative, management and supervisory bodies

Reference: pages 39-40.

The Board of Directors "is regularly informed of and addresses sustainability matters that are material to the Group". Progress against selected targets, "such as diversity and science-based climate targets, is reported to the Board on a quarterly basis" (page 39).

Specific reporting lines (pages 39-40):

• The SVP Chief Legal Officer informs the Board about critical compliance-related concerns and reports annually on trends and statistics from the whistleblowing function, SpeakUp.
• The outcome of the annual double materiality assessment "is also presented annually and approved by the Board".
• The Board, together with Group Management, is "responsible for the preparation, review and approval of the Group's annual sustainability statement".
• Target-setting on material IROs is coordinated by Group Sustainability, which develops recommendations "which are reviewed and approved by Group Management and the Board".
• Group Management "reviews performance against relevant Group sustainability targets on a quarterly basis", and the annual DMA review is presented to Group Management ahead of the Board.
• Findings from internal audits are "regularly communicated to the Audit Committee and Group Management" (page 40).

Additional topics are scheduled as needed on request by the Board or the company (page 39).

Sustainability performance in incentive schemes

Reference: page 40; remuneration guidelines pages 121-123.

Variable compensation is capped at "a maximum of 80% of the base salary for the President and CEO, 60% for Business Area Presidents, and 50% for other members of Group Management" (page 40).

"Variable compensation is linked to predetermined and measurable criteria which can be financial or non-financial. Non-financial criteria are part of the variable compensation for all members of Group Management. For 2025, the criteria has been to reduce the Group's CO2 emission in line with the Group's science-based targets, with a relative weighting of 10% of the maximum opportunity" (page 40).

The Group's guidelines for executive remuneration "are reviewed annually by the Board of Directors and presented to the annual general meeting for approval at least every four years" (page 40).

The disclosure does not state the percentage of variable remuneration that is actually dependent on climate-related considerations at payout, nor whether GHG reduction targets are used for remuneration below Group Management level beyond the statement that progress on selected sustainability targets "is part of the variable compensation for members of Group Management, as well as other employees" (page 39).

Statement on due diligence

Reference: page 42.

"Sustainability due diligence is the process through which we identify, prevent, mitigate, and account for actual and potential negative impacts on the environment and people resulting from the Group's operations. Requirements for sustainability due diligence and risk management are embedded in our processes through the Group's policies and guidelines, including our Code of Conduct, human rights statement, and SHEQ policy" (page 42).

"Our due diligence practices are guided by internationally recognized frameworks, such as the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. Such due diligence is conducted through a combination of desktop assessments, and direct or indirect dialogue with our stakeholders" (page 42).

A mapping table gives the paragraphs where each core element is described (page 42): embedding due diligence in governance, strategy and business model (climate page 44, social page 61); engaging with affected stakeholders (own workforce page 61, value chain workers page 71, consumers and end-users page 73); identifying and assessing adverse impacts (environmental IROs page 44, social IROs pages 61, 71, 73, governance IROs page 74); taking actions (the Actions section of each topical standard); and tracking effectiveness (the Targets and metrics sections).

Risk management and internal controls over sustainability reporting

Reference: page 40; internal control section pages 101-102.

"Atlas Copco Group's sustainability reporting is subject to the same internal control processes as our financial reporting... The Board of Directors is ultimately responsible for establishing an efficient internal control system and oversees the work through the Audit Committee and CEO" (page 40).

Risks identified: "The main risks identified relate to data accuracy, for example errors and inconsistency in estimations. Another risk is the availability of value chain data and completeness of reporting" (page 40).

Controls (page 40): regular risk assessments by sustainability and business controllers; internal audit of adherence to reporting policies; regular training for relevant employees; standardised calculations and emission factors; logic controls in the reporting and consolidation system; and quality checks - "Environmental data, for example, is cross-checked against cost data to detect inconsistencies."

"In 2025, the Internal Audit function conducted a thematic audit focusing on sustainability governance and reporting processes. Corrective actions have been implemented to address the identified gaps" (page 40). The Sustainability Reporting and Disclosure Council was established in 2023, and "The Group's external auditors provide a limited review of the sustainability statement" (page 40; assurance report page 167).

Strategy, business model and value chain

Reference: pages 32-33; business area sections pages 18-30.

The four business areas offer "compressed air and gas solutions, vacuum solutions, energy solutions, dewatering and industrial pumps, industrial power tools, and assembly and machine vision solutions" (page 32).

Business model (pages 32-33): products designed in-house with a life-cycle approach; R&D "about 4% of the Group's revenues"; outsourced production, where "Purchased components account for a majority of the product cost"; equipment sales about 62% of Group revenues, service 38%; more than 56 000 employees (FTE) in 73 countries; sales in 180 countries.

Value chain (page 33):

• Upstream - suppliers "globally distributed, with the largest shares located in Asia and Europe, followed by North America". "A significant part of our impact from the processing of raw materials for our products therefore originates from the upstream value chain."
• Own operations - facilities in Europe, Asia/Oceania and the Americas. "We have assessed that the environmental impact of these activities is relatively low compared to those that take place downstream and upstream."
• Downstream - "More than 95% of the greenhouse gas emissions across our value chain occur during customers' use of our products."

A value chain diagram on page 33 runs suppliers of components and materials - Atlas Copco Group - indirect sales and customers - end of life.

Interests and views of stakeholders

Reference: page 35.

"Our key stakeholders include those who are either impacted by our operations or those who influence our strategy and the achievement of our goals" (page 35).

Groups and engagement methods (page 35):

• Customers - visits, events, satisfaction surveys and interviews
• Employees - yearly performance and development dialogues, training and coaching, employee surveys, work councils, employee representation on the Board
• Shareholders and financial market participants - capital market days, roadshows, conferences, meetings and calls, the annual general meeting
• Society (governments, affected communities, NGOs, industry partners, academia) - international collaborations and industry initiatives, local engagement, career fairs, media contact
• Business partners (suppliers and indirect sales channels) - strategic collaborations, on-site meetings, on-site evaluations and supplier audits, surveys and interviews

"Insights from the engagement process form the basis of our double materiality assessment, see pages 36-37, which served as an important starting point for developing the Group's updated sustainability targets for 2025-2027" (page 35).

"The Group Management team and the Board of Directors receive annual updates on the DMA, which reflects stakeholder perspectives and expectations" (page 35). Additional insight comes through grievance mechanisms and SpeakUp.

Material impacts, risks and opportunities and their interaction with strategy and business model

Reference: pages 37-38; topical IRO sections pages 44, 54, 61, 71, 73, 74.

"The results of the DMA align with Atlas Copco Group's strategy and business model. No changes have been made to the business model in response to the material IROs identified, but the DMA outcome has provided an important basis for our updated sustainability targets, effective from 2025" (page 37).

"To our current knowledge, the risks related to the material topics are not expected to have a significant financial impact, nor to require substantial adjustments in the foreseeable future. Actions to address material IROs are embedded in divisional strategies, which means that the related costs cannot always be separately identified" (page 37).

Material sub-topics and materiality type (page 38): climate change mitigation and energy (both impact and financial); resource inflows (impact), resource outflows related to products and services (financial), waste (impact); own workforce working conditions (impact and financial) and equal treatment (impact); value chain workers' working conditions, equal treatment and other work-related rights (all impact); personal safety of consumers and end-users (impact and financial); corporate culture (impact and financial), management of relationships with suppliers (impact) and corruption and bribery (impact).

Process to identify and assess material impacts, risks and opportunities

Reference: pages 36-37.

"In 2023, Atlas Copco Group initiated a double materiality assessment (DMA)... conducted with the support of an independent consultancy and in accordance with ESRS requirements. The work continued through 2024 and 2025" (page 36).

Six steps (pages 36-37): gross list of ESG topics; stakeholder dialogues and review of processes; impact materiality assessment; financial materiality assessment; review and preliminary approval; validation and final approval.

Scoring (pages 36-37): "Negative impacts were scored based on severity, a combination of scale, scope and remediability, and likelihood. Severity was prioritized over likelihood for negative human rights impacts." Financial effects were assessed "based on size and likelihood". "We applied the same categorization and grading as in the ERM process (low, medium, high, and extreme) and deemed impacts rated high or extreme as material."

Methods (page 36): climate physical and transition risks "were mapped through the ERM and a global warming scenario analysis, following the TCFD recommendations", supplemented by "an initial internal biodiversity impact assessment".

"The outcome of the DMA review in 2025 reconfirmed the material topics identified in 2024... Therefore, no changes in terms of materiality have been made" (page 37).

Disclosure requirements covered by the sustainability statement

Reference: pages 78-83.

The statement prints a full ESRS content index, "IRO-2 Disclosure requirements in ESRS covered by the sustainability statement" (pages 78-79), listing each disclosure requirement with a page reference or the marker Phase-in.

Standards covered: ESRS 2 (BP-1, BP-2, GOV-1 to GOV-5, SBM-1 to SBM-3, IRO-1, IRO-2), E1, E5, S1, S2, S4 and G1. E2, E3, E4 and S3 do not appear.

Marked "Phase-in": E1-9, E5-6, S1-11, S1-12 and S1-15 (pages 78-79). BP-2 states "we have opted to use the phase-in provisions listed in ESRS 1 Appendix C applicable to the Atlas Copco Group" (page 43).

Two further tables, "IRO-2 Disclosure requirements that derive from other EU legislation" (pages 80-83), map ESRS 2 Appendix B datapoints to pages using the markers NR (not relevant), NS (not stated due to applicable phase-in provisions under ESRS) and NM (not material). The E1-7, E2-4, E3-1, E3-4, E4 (SBM-3), E4-2, S3-1 and S3-4 datapoints are all marked NM; the E1-9 datapoints are marked NS.

The auditor identifies the sustainability statement as "included on pages 31-48 and 52-84 of this document" (page 167).

Transition plan for climate change mitigation

Reference: page 45; levers page 47.

"We have adopted targets to reduce absolute GHG emissions from our operations (Scope 1 and 2) and from our value chain (Scope 3)... Our targets have been validated by the Science Based Targets initiative (SBTi) as aligned with the Paris Agreement. The Board of Directors approved these targets, which have guided our climate-related work since 2022" (page 45).

The plan itself is not yet complete: "We are actively working to further develop our climate transition plan, including roadmaps and targets beyond 2030. Our target is for the long-term transition plan to be fully developed by the end of 2026" (page 45). The Group target table records this with no result for 2023, 2024 or 2025.

Levers (page 47): a Scope 3 bridge chart from 2019 to 2030 covers growth, product efficiency and mix, grid decarbonization and other. "These levers were identified in 2021 during our transition planning... the figures should be considered indicative rather than exact."

Investment (page 46): "Actions to address the levers are embedded in our divisions' strategies, and the associated costs cannot be identified separately. While investments in R&D support improved product efficiency, they are not categorized specifically as related to climate mitigation." No locked-in emissions assessment is disclosed.

Identification of climate-related risks and scenario analysis

Back-filled from ESRS 2 IRO-1 and the E1 climate IRO section (pages 36, 44-45). This DR did not exist under the 2023 ESRS the report was prepared against.

Classification (page 44): risks appear under "Physical risks" (acute and chronic) and "Transition risks and opportunities" (policy and regulatory, technology, market and reputational).

Physical scenarios (page 44): the 2024 assessment of the main sites' exposure to physical climate risks used third-party climate projection data and "covered three different climate scenarios: rapid transition (RCP 2.6); medium transition (RCP 4.5); and business as usual (RCP 8.5), and three time horizons: short term (0-3 years); medium term (until 2030); and long term (2030-2050)". RCP 4.5 was the baseline, "as it is currently considered the most likely pathway".

Transition scenarios (pages 44-45): "In 2023, we conducted a scenario analysis, including transition events, in line with the recommendations of the TCFD... Two scenarios were analyzed: a rapid transition (RCP 2.6) and a business as usual (RCP 8.5) pathway. In 2025, internal subject matter experts reviewed the scenario analysis and reassessed potential transition risks and opportunities across five time horizons, from the immediate (< 3 months) to the strategic (>7 years)."

Gaps: no temperature projection is stated per scenario, and no 1.5C-aligned transition scenario is named.

Resilience in relation to climate change

Back-filled from ESRS 2 SBM-3 (pages 37, 44). This DR did not exist under the 2023 ESRS the report was prepared against.

Result (page 44): "Our climate change resilience analysis comprises both a physical risk assessment and a transition risk assessment. Climate-related risks... are assessed annually at divisional level as part of the Enterprise Risk Management (ERM) process. This includes an assessment of the resilience of our business model and strategy to such risks, and their potential financial implications. The assessment indicates that currently identified climate-related risks can be managed without substantial changes to our existing business model and strategic direction."

Capacity to adapt (page 44): "The Group's loss prevention program supports the decision-making process for highly exposed sites, including the prioritization of major investments and risk-mitigation measures." "The Group has a global network of suppliers that provides resilience against local or regional disruptions" (page 44).

Uncertainty (pages 44-45): exposure to precipitation, flooding and hail "is expected to intensify in the medium and long term", and "the overall risk levels for the Group are expected to rise toward 2050". No quantified financial resilience range is given.

Policies related to climate change mitigation and adaptation

Reference: page 45; policy scope page 41.

"Atlas Copco Group's Code of Conduct is the central guiding policy underscoring our commitment to reduce the environmental impact from our own operations and along the value chain. It is complemented by our SHEQ policy, which is the overall policy for the environmental area. It addresses climate change mitigation and our commitment to reduce emissions in line with the goals of the Paris Agreement, throughout our own operations, and our upstream and downstream value chain" (page 45).

The policy also covers energy - "Renewable and fossil-free energy deployment is an important lever to reach our targets" - adaptation - "Our policy addresses climate change-related physical risks in our operations to limit potential negative impact" - and opportunities, "such as the Group's development of technologies, products and services that increase energy efficiency" (page 45).

Accountability (page 41): the SHEQ policy "applies to all employees in the Group and is available through the internal handbook The Way We Do Things and on our website. The President and CEO has the overall responsibility of the policy, while divisional presidents are responsible for its implementation. The policy is reviewed regularly by the SHEQ Council."

Actions and resources in relation to climate change policies

Reference: pages 45-46; Environmental Award page 48.

Scope 1 and 2 (page 46): energy efficiency through ISO 14001 and ISO 50001 certification; renewable electricity contracts and power purchase agreements, plus solar - "In 2025, the number of entities reporting direct solar energy increased significantly... its contribution doubled compared with 2024"; heat recovery "to capture waste heat from compressors to heat buildings"; and "Since early 2025, one of our sites in Hungary has significantly reduced its consumption of natural gas by replacing most gas heating with electric AC units". On fuels: "we have been using biofuels such as HVO... for testing on at least half of our sites", and "HVO100 diesel is used for service vans in the Nordics".

Scope 3 (page 46): "All projects for new or redesigned products are required to include targets for reducing carbon impact"; "Specialty Rental... promotes the use of non-fossil diesel by installing HVO pumps at its rental center in Belgium"; "shifting towards more sustainable transport modes such as sea and rail"; and the Power Tools Distribution Center "switching to reusable carton pallets".

The 2025 Environmental Award went to "the site Airpower's power purchase agreement (PPA) project for securing long-term renewable electricity from an offshore wind farm in Belgium... the Group's first long-term corporate PPA" (page 48).

Targets related to climate change mitigation and adaptation

Reference: pages 45, 47.

Group climate targets (page 45):

Basis: "The targets were approved by the Science Based Targets initiative (SBTi) in 2021. The target for scopes 1 and 2 are in line with the 1.5C warming trajectory, and the target for scope 3 is in line with the well below 2C warming trajectory" (page 45). "GHG removals, carbon credits, or avoided emissions are not considered as means toward achieving these targets" (page 47).

Commentary (page 47): the Scope 1 and 2 reduction "was driven by a higher share of renewable electricity and decreased carbon intensity in certain markets"; the renewable share of electricity and district heating "reached 89% (85)". On Scope 3: "This is mainly due to increased sales. Our efforts to drive the product mix in favor of lower emissions... are not yet balancing the increase in sales." No adaptation target is disclosed.

Energy consumption and mix

Reference: page 48.

The company qualifies the disclosure: "While energy consumption in our own operations is not assessed as material, the data provides context for our GHG emissions and is requested by certain stakeholders" (page 48).

Energy consumption, MWh (page 48):

Renewable share, % (page 48): own facilities 68 (64), of which indirect 89 (85) and direct 20 (13); company vehicles 5 (5); total 49 (45). "The share of renewable energy does not include 'renewable of mix' for indirect energy, only fully renewable indirect energy supported by renewable energy certificates or contractual agreements."

"The increase in total energy consumption in 2025 compared to 2024 is largely related to the relocation of a site in China." "The Group does not report cooling or steam separately." Indirect energy is electricity (98%) and district heating (2%). Energy is not split into fossil, nuclear and renewable in the ESRS format, and the high climate impact sector intensity datapoints are marked "NM" (page 80).

Gross Scopes 1, 2, 3 and Total GHG emissions

Reference: page 53; method pages 52-53.

GHG emissions, restated, '000 tonnes CO2e (page 53):

Scope 1 and 2 are -46% against the 2019 base year; total emissions -5% year on year and +9% against the base year. Intensity 1 287 tCO2e/MSEK (1 293). Footprint split: use of sold products 97.8%, other Scope 3 2.1%, Scope 1 and 2 under 0.1% (page 47).

Method (pages 52-53): GHG Protocol; IEA country factors. "Categories 8, 10... and 14... are not applicable." The 2019 Scope 3 base was restated from 170 634 to 199 220 kt, "primarily due to further alignment across business areas on reporting methodology as well as longer assumed lifetimes for certain products".

Internal carbon pricing

Reference: page 47.

"As a Group, we aim to reduce our environmental impacts, lower our carbon emissions, and reduce potential impact from external carbon taxes. Incorporating a financial cost of carbon into investment decisions helps ensure that these aspects are considered" (page 47).

"In 2021, we introduced a guideline for incorporating carbon pricing into capital investment (CapEx) decisions to ensure that climate impacts are taken into account, for example in connection with energy-related infrastructure investments. The guideline was updated in 2024, including a carbon price of 1 500 SEK/tonnes CO2e. The shadow price was selected based on the Swedish carbon tax rate and global carbon-pricing benchmarks, such as the World Bank Carbon Pricing Dashboard, which reflect the chosen carbon price" (page 47).

The disclosure identifies the type of scheme (a shadow price applied to capital investment decisions), the price and the basis on which it was set. It does not state the share of gross Scopes 1, 2 and 3 emissions covered by the scheme, nor the approximate value of capital expenditure decisions to which it was applied in 2025.

Policies related to resource use and circular economy

Reference: page 54; policy scope and implementation page 41.

"Atlas Copco Group's Code of Conduct is the central guiding policy underscoring our commitment to reduce the environmental impact from our own operations and along the value chain. It is complemented by our SHEQ policy, which states that we apply circularity principles throughout the product lifecycle and focus on a responsible use of resources. This includes further exploration of opportunities to transition away from the use of virgin resources, towards resources with higher recycled content, where possible. We are also committed to monitor and avoid any environmental harm caused by our operations, including waste generation" (page 54).

Scope and accountability (page 41): the SHEQ policy applies to all employees in the Group, is available through the internal handbook The Way We Do Things and on the website, is signed by the President and CEO, and is reviewed regularly by the SHEQ Council. The President and CEO holds overall responsibility; divisional presidents are responsible for implementation.

The policy disclosure does not separately address the phasing out of virgin fossil-based materials or a commitment on sustainable sourcing of renewable resources beyond the general statement above.

Actions and resources related to resource use and circular economy

Reference: pages 54-55.

Methodology (page 54): "Since 2024, we have a Group-wide methodology in place to assess the circularity of all new or redesigned products." "We focus on three main circularity strategies - narrow, slow and close... The narrow strategy... includes the circularity principles refuse, rethink and reduce. The slow strategy... includes reuse, repair, refurbish, remanufacture and repurpose. The close strategy refers to closing resource loops by recycling and recovery."

Product life extension (pages 54-55): service agreements, preventive maintenance supported by analytics "such as SmartLink", and refurbishment. "Many of our products are also designed so that they can be returned, refurbished and resold as used equipment... Some of the Group's units also take back contaminated products from customers, which otherwise would be disposed of as hazardous waste, and return them to full operation."

Training and packaging (page 55): "In 2024, a new training focusing on circular economy was launched and made available to all employees, Group management and the Board of Directors." At the Power Tools Distribution center in Belgium the Group is "replacing plastic filling bags with recycled paper". No CapEx or OpEx is separately identified.

Targets related to resource use and circular economy

Reference: pages 54-55.

Targets and results (page 54):

"In 2025, the first year the tool was applied, good progress was made, with 38% of new projects applying the common circularity principles" (page 55). On waste: "our target focuses on the upper levels of the waste hierarchy... In 2025, this share increased to 93% (91), supported by measures taken at some production facilities to divert waste from disposal" (page 55). "The above-mentioned targets have been adopted with consideration to current and future legislation" (page 55).

Stated gaps (page 55): "At present, there are no Group-common targets regarding circular material use rate, minimization of virgin raw material, sustainable material sourcing, or use of renewable resources. However, these aspects are on our agenda... This includes further development of relevant performance indicators, such as the share of recycled content in our products and packaging."

Resource inflows

Reference: page 55; materials context page 54.

Materials named by the company: "Our suppliers and our own operations rely on natural resources as input materials, with the most common ones being iron and steel, aluminum, copper and brass" (page 54). "Our products are largely made of steel, which requires a considerable amount of raw material, water and energy to produce" (page 55). Packaging: "Most often, wooden pallets are used. For smaller products, cardboard boxes and plastic packaging are also used" (page 55).

No quantities are reported (page 55): "We have taken steps to gather information about the total weight of product and packaging materials and the share of recycled content of main categories of material. A majority of the Group's business areas and divisions use an internal tool to identify and quantify the materials of a set of reference products. To present meaningful data, we continue to gather information to establish an accurate baseline. Gathering information about recycled content in purchased materials is also a challenge. While actual data from suppliers on recycled content is the ultimate ambition, other data sources, such as regional averages, will have to be used in the meantime."

The disclosure therefore gives no total weight of materials used, no percentage of biological materials, and no percentage of secondary reused or recycled components.

Resource outflows

Reference: page 56.

"Industry standards for measuring and comparing durability, repairability, and recyclability remain limited. In the absence of broadly accepted frameworks, we take a pragmatic approach and recyclable content can be calculated with the help of the Group-common tool. While our current method offers insight into recyclability potential, we continue to improve data quality and availability to better reflect reality" (page 56).

Durability: "We have a broad product range, with lifetimes that vary significantly between product groups. As a result, presenting an average lifetime or other quantitative information would be of limited relevance."

Repairability: "Our products are designed to facilitate repairability, and service is a significant part of our business. We focus on preventive maintenance to ensure timely repairs and minimize unplanned downtime for our customers."

Recyclability: "Many of our products consist of iron and steel, materials that are recyclable. Our Group-wide circularity tool allows us to calculate an estimate of a product's recyclability; however, data on actual recyclability is currently unavailable."

The product-level disclosure is therefore qualitative; waste from own operations is quantified separately. Resource outflows is a financially material sub-topic, described as "both a business opportunity and a potential competitive advantage in the short- and medium-term" (pages 38, 54).

Waste

Reference: page 56.

Waste from own operations, tonnes (page 56):

Hazardous split (page 56): hazardous diverted from disposal 12 552 (12 445); non-hazardous diverted 47 065 (43 131); hazardous directed to disposal 1 480 (1 530); non-hazardous directed to disposal 3 207 (3 690). Total hazardous waste 14 032 tonnes (13 975; 12 251).

Non-recycled waste (page 56): 14 782 tonnes, 18% of total (11 488 / 22% in 2024; 13 263 / 26% in 2023). Reused, recycled and recovered: 93% (91, 91).

Method (page 56): "Waste is classified as hazardous or non-hazardous in line with ESRS' categorization. The data is reported by local entities and consolidated at Group level... The data is based on direct measurement, typically reported by the waste management company after collection." No radioactive waste is reported. Composition is described qualitatively: "The most relevant waste stream is metal waste... Other materials present in the waste are for example plastics and cardboard from incoming packaging" (page 55).

Policies related to own workforce

Reference: page 61; topic policies pages 63, 65, 67; framework page 41.

"Atlas Copco Group's Code of Conduct is the central guiding policy underscoring our commitment to upholding human rights and labor rights, including fair wages and working conditions, freedom of association, and zero-tolerance for modern slavery or child labor. The Code of Conduct also includes our commitment to maintaining a safe and inclusive working environment, with equal opportunities" (page 61).

The Code endorses the UN Global Compact, the UN International Bill of Human Rights, the UN Guiding Principles for Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work and the OECD Guidelines for Multinational Enterprises (page 41), and is supported by a Human Rights Statement applying to "all employees, including consultants, as well as to all business partners" (page 42).

Topic policies: the SHEQ policy requires "risk assessments and safety procedures, training, appropriate follow-up procedures, and transparent reporting" (page 67); Global Mobility Policies and an Internal Job Market Policy (page 63); the Diversity and Inclusion framework, which "covers all employees, including additional workforce" (page 65); and a Group Travel Policy and Travel Security Policy (page 67).

Processes for engaging with own workforce and workers' representatives

Reference: pages 61-62.

"We engage with employees regularly and continuously through both formal and informal channels... Insights from this engagement inform the identification and assessment of salient human rights impacts. It is also a valued input to the Group's double materiality assessment and target-setting process. In this process, employees were indirectly represented through members of internal councils, including HR and SHEQ functions" (page 61).

Channels (pages 61-62): ongoing feedback and coaching; Insight, the biennial global engagement survey managed by Group HR, which in 2025 had a 90% response rate, above the global benchmark, and 57 000 comments from 34% of employees; local pulse surveys; and global onboarding, internal mobility and offboarding surveys.

Workers' representatives (page 62): "we consult employee representatives, and representatives of additional workforce, in decision-making processes on issues that affect them... The Board of Directors includes two elected employee representatives." In EU countries "the cooperation is strengthened through European Work Councils... through meetings once a year". "In countries where no independent labor unions exist, measures are taken to establish forums for employer/employee relations, through environment and safety committees."

Processes to remediate negative impacts and channels for own workforce to raise concerns

Reference: page 62; whistleblowing detail page 75.

"We strongly encourage our employees to raise issues and to report non-compliance matters to their manager, their manager's manager, or human resources representatives. The Group's global whistleblowing system, SpeakUp, is available for reporters who wish to remain anonymous" (page 62).

SpeakUp (page 75): "hosted by an independent external provider and is accessible to anyone wishing to report actual or suspected legal or ethical misconduct... available 24 hours a day, 7 days a week, allowing voice or text messages to be left in more than 70 languages". "All reports are screened and those in scope are assigned to impartial internal investigators supported by Group Legal. Investigations are handled promptly and objectively, with safeguards against conflicts of interest."

Non-retaliation (page 75): "The Code of Conduct includes a non-retaliation commitment to all concerns raised in good faith, ensuring that reporting individuals will never face adverse consequences, even if the report leads to a loss of business. Anyone who retaliates... will face disciplinary action, up to and including termination of employment."

Reported incidents are quantified under S1-17 (page 66).

Taking action on material impacts on own workforce

Reference: pages 63, 65, 67.

Training and development (page 63): the Group Leadership Portfolio - "In 2025, new modules were introduced, covering topics such as digital transformation, human centric leadership and effective change leadership"; Learning Link, giving access to "more than 24 000 LinkedIn courses in 46 languages"; and a 2025 review of "the Group's employer branding strategy, including the employee value proposition (EVP)".

Diversity and equal treatment (page 65): a Diversity & Inclusion Council chaired by the President and CEO. "In 2025, all four business areas have in place targeted Diversity and Inclusion plans... Each business area has now established clear governance structures... and all have appointed D&I resources." Also "psychological safety and human-centered leadership training" and work on digital accessibility.

Occupational health and safety (page 67): "All companies in the Group must have a Safety, Health, Environment and Quality management system"; online SHEQ awareness training; near-miss and risk-observation reporting; and an annual Safety, Health and Well-being Day held "since 2015".

Resources (page 63): "Actions related to our own workforce are embedded in the overall strategy of our divisions, and therefore the costs cannot be separately identified."

Targets related to own workforce

Reference: pages 61, 63, 65, 67-68.

Diversity targets (pages 61, 65): share of women employees 22.7% (22.6; 22.2) against 30% by 2030; share of women in leadership positions 21.8% (21.4; 20.9) against 25% in 2030. "As of 2025, the US is excluded from the target, and the figures for 2023 and 2024 have been restated for comparability" (page 61).

Engagement survey targets, 0-100 scale, biennial, goal "above global benchmark and continuous increase" (pages 61, 67): sense of belonging 76 (77 in 2023) against a benchmark of 73; work culture of respect, fairness and openness 77 (76) against 76; opportunity to learn and grow 73 (75) against 72; company takes a genuine interest in well-being 71 (74).

Safety target (page 67): recordable injuries per million working hours 4.2 (4.0; 4.5), goal "continuous decrease".

The company reports the misses openly: on learning and growth, "after surveys showing continuous improvement since 2019, the 2025 survey indicated a decline compared with 2023" (page 63); on belonging, "the 2025 survey indicated a slight decline" (page 65); on well-being, "the 2025 survey showed a decline" (page 68). It attributes part of this to context: "our survey provider reported an average 2% drop in engagement levels worldwide" (page 62).

Workers were represented indirectly in target-setting, "through members of internal councils, including HR and SHEQ functions" (page 61).

Characteristics of the undertaking's employees

Reference: pages 69-70; workforce context page 61.

Headcount by gender at year end (page 70): male 44 030, female 12 983, other 9, not disclosed 2 - total 57 024 (55 775 in 2024).

By contract type (page 70): permanent 56 356 (female 12 808, male 43 537); temporary 668 (female 168, male 500).

Geography, FTE % at year end (page 69): Europe 43 (44), Asia/Oceania 34 (33), North America 15 (15), South America 5 (5), Africa/Middle East 3 (3). Countries at or above 10% of Group headcount: China 7 984 (7 577), USA 7 346 (7 237), Germany 5 953 (6 217).

Professional categories, FTE % (page 70): service 28, production 25, administration 16, sales and support 13, research and development 10, marketing 8.

Turnover and recruitment (page 70): 6 175 leavers (6 453); total turnover 11% (12); voluntary leave 5% (6); 5 382 external recruitments (6 940), 10% of the workforce (13), of which 27% female (26).

Method (page 70): "Employee data is reported by local entities, based on the assumption that employees work in the country of the reporting unit." One FTE is "the normal full working hours in the local unit"; overtime is not counted as additional FTE.

The Group reports "more than 57 000 employees and 3 000 additional workforce, located in 73 countries" (page 61). Full-time versus part-time and non-guaranteed hours breakdowns are not disclosed.

Collective bargaining coverage and social dialogue

Reference: page 69.

Coverage, headcount % at year end (page 69): employees covered by a collective bargaining agreement 29% (29 in 2024); employees covered by workers' representatives 32% (33).

A map presents coverage by geography in bands (0-19%, 20-39%, 40-59%, 60-79%, 80-100%) for employees in the EEA, employees outside the EEA, and workplace representation in the EEA. "Only EEA countries and non-EEA regions representing more than 10% of the Group's total employee headcount are presented" (page 69).

Context (page 69): "We operate in countries where unionization and collective bargaining are restricted, suppressed, or not guaranteed. Without appropriate policies and processes in place, this could negatively impact our employees. Labor practices and employee rights, such as collective bargaining, are covered by the Group's Code of Conduct... Employees not covered by collective agreements are protected by standards based on local and international benchmarks."

"In the event of operational changes that may significantly impact employees or lead to redundancies, the Group complies with local laws, regulations and collective bargaining agreements. The need for transition assistance is assessed locally" (page 69).

Because coverage is shown in bands, country-level percentages are not stated numerically, and no separate figure is given for non-EEA employees covered by workers' representatives.

Diversity metrics

Reference: page 70; Board composition page 39; nationality data page 69.

Senior management by gender, headcount at year end (page 70) - "employees at the level of general manager and above":

Employees by age group, FTE % at year end (page 70): under 30 - 20 (21); 30-50 - 61 (60); over 50 - 19 (19). "Based on employees in countries allowing age disclosure. Age is not disclosed for 12% of employees."

Board (page 39): "Of the nine Board members four are women and five are men."

Wider context: more than 57 000 employees "representing around 140 nationalities" (page 65). "The Group has managers on international assignments coming from 42 countries and working in 44. In 2025, a total of 78% (77) of all senior managers were locally employed. 45 (43) nationalities were represented among the most senior managers" (page 69).

Since 2023 the Insight survey "has included a Diversity & Inclusion Index with six key inclusion indicators that are measured and reported" (page 65); the index score itself is not published.

Adequate wages

Reference: page 69.

"As stated in our Code of Conduct, our employees' performance should be fairly rewarded. Legislative minimum wages should always be regarded as a minimum threshold, not a recommended level, and internal audits are conducted to ensure compliance. We are planning to conduct an analysis of adequate wages and are taking steps to secure access to internal compensation data to enable this work" (page 69).

"Within the Group, total rewards consist of both monetary and non-monetary components. According to our total rewards philosophy, compensation and related practices and processes must follow local legislation and be guided by the following principles: they should be performance-based, attractive, transparent, differentiated, and inclusive. Salaries are reviewed annually through the Group's salary review process. Variable compensation is based on objective and measurable targets that reflect both Group and individual performance. To support financial security after retirement, we offer pension solutions tailored to local requirements and regulations" (page 69).

The disclosure confirms compliance with applicable minimum wages and states that an adequate wage analysis is planned. It does not report whether all employees are paid an adequate wage against an applicable benchmark, and gives no country-level percentage for employees paid below one. The company's own framing - that the analysis is still to be done - is the disclosure.

Training and skills development metrics

Reference: page 64; commentary page 63.

Employees with a yearly performance and development discussion, % (page 64): female 89 (85), male 87 (84), other 78 (83), not disclosed 50 (50), total 87 (84).

"Number of employees, at year end, in headcount, who have had an individual performance and development discussion during the past year. Introduction and follow-up meetings are included for new employees in their first year. Exit interviews and termination discussions are included for employees that are still employed at year end" (page 64).

Average training hours per employee (page 64): female 42.5 (42.2), male 43.8 (45.2), other 26.4 (48.8), not disclosed 26.9 (4.6), total 43.5 (44.5).

"We also track the number of training hours, with the ambition of reaching 40 training hours per employee per year. Here, we focus on balancing mandatory training with on-demand training requested by the employees themselves. The number of training hours has increased steadily over the last three years and is well above the ambition of 40 hours" (page 64).

"Training hours are recorded in the Group's Learning Link platform and reflect time spent, during working hours, on internal or external learning activities that enhance skills and performance." For 2024 the year-end headcount was the denominator; for 2025, the average headcount during the year (page 64).

Health and safety metrics

Reference: page 68; coverage page 41.

Work-related health and safety (page 68), number and rate per million working hours:

Sick leave due to diseases and recordable injuries: 2.4% (2.3; 2.3).

Fatalities (page 68): "In 2025, we regrettably experienced two work-related fatalities: one in a traffic-related accident and one during installation work at a customer site... Road safety continues to be a key focus area in our sales and service organizations."

Coverage (page 41): ISO 45001 covers 75% of the units required to be certified and 81% of employees across all Group units.

Method (page 68): working hours are "estimated using an assumption of eight hours per day and 20 working days per month". Recordable work-related ill health is not reported separately.

Compensation metrics (pay gap and total compensation)

Reference: page 66.

Remuneration metrics (page 66): gender pay gap 9%; total remuneration ratio 54. Both are reported for 2025 only, with no 2024 or 2023 comparatives.

Gender pay gap method (page 66): "The global unadjusted gender pay gap is calculated using contractual base and variable pay, expressed as an hourly rate. Data for this metric was extracted from the HR system on November 30, 2025... This is our first year of reporting, and we aim to continuously improve the quality of the data. It is important to distinguish the global unadjusted gender pay gap from equal pay. The metric does not consider factors that may influence compensation, such as job role, position weight, performance, experience, country, or other objective factors."

Total remuneration ratio method (page 66): it "represents the ratio of the President and CEO's annual total remuneration to the median annual total remuneration of other employees... base salaries were extracted from the HR system on November 30, 2025, to identify the median employee; second, the total remuneration for that employee was provided by the local company".

Incidents, complaints and severe human rights impacts

Reference: page 66; channels pages 62, 75.

Incidents of discrimination and working conditions complaints, 2025 (page 66):

The footnote defines the last line: "Includes fines, penalties, and compensation for damages imposed on any Atlas Copco Group company, as finally determined by a court or other competent authority during 2025" (page 66).

The channel is SpeakUp, "hosted by an independent external provider", with impartial internal investigators supported by Group Legal (pages 62, 75). "The fact that reports are received from all regions where the Group operates, and the fairly large volume of reports, indicate strong awareness and trust in the system" (page 75).

The disclosure does not report severe human rights incidents connected to the own workforce separately. For the value chain, "no instances of severe human rights issues or incidents... were reported" in 2025 (page 72).

Policies related to value chain workers

Reference: page 71; framework pages 41-42.

"We are committed to upholding ethical conduct in all business interactions and expect all our business partners to follow our Code of Conduct, which is aligned with international human and labor rights standards, such as the United Nations International Bill of Human Rights, the UN Global Compact, the ILO Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, and the UN Guiding Principles for Business and Human Rights" (page 71).

"All significant business partners, especially those operating in risk countries, are required to commit to the Code of Conduct by signing our Business Partner Criteria document... This includes providing a safe and healthy work environment free from discrimination, with full respect for freedom of association, and a zero tolerance of modern slavery, forced labor, and child labor. If business partners engage subcontractors... they are responsible for applying the same principles" (page 71).

"The Code of Conduct is supported by the Group's Human Rights Statement, last updated in 2024... The statement reflects our corporate responsibility as outlined in the UN Guiding Principles on Business and Human Rights" (page 71).

Processes for engaging with value chain workers about impacts

Reference: page 71; target-setting note page 72.

"We build and maintain close relationships with our business partners, actively promoting human and labor rights through the signing and follow-up of our Business Partner Criteria. We also gain insight into business partners' operations and working conditions through site visits and during the onboarding of new business partners. All Group employees participate in leader-led training on the Code of Conduct... Local entities are responsible for the operational management of supplier relationships, while the divisions hold overall responsibility" (page 71).

"We engage directly with strategic significant suppliers and invite high-risk suppliers to undergo desktop audits by a third party to verify responsible business conduct. Using a risk-based approach, such follow-up typically focuses on markets where the likelihood of adverse impacts is higher and workers may be more exposed or vulnerable. For distributors... actual engagement is carried out through our customer centers" (page 71).

The engagement runs through business partners rather than directly with value chain workers: "While value chain workers were not directly involved in setting these targets, input from the Group Purchasing Council, as a proxy for supplier perspectives, was considered in the process" (page 72).

Processes to remediate negative impacts and channels for value chain workers to raise concerns

Reference: page 71; whistleblowing detail page 75.

"We take concerns regarding the treatment of workers in our value chain seriously and are committed to addressing and remediating negative impacts, identified either through audits or other means. If potential adverse impacts on workers are identified, the responsible sourcing unit collaborates with the business partner through conditional action plans and monitors the implementation and effectiveness of remedial measures" (page 71).

"Our whistleblowing system, SpeakUp, is accessible via our Group website to anyone who wishes to raise a concern relating to our operations, including workers in the value chain. The system is operated by an independent third party and ensures full anonymity for reporters. Each case is handled and followed up by impartial internal investigators, and where applicable we work closely with our business partners to address and remediate any verified allegations of misconduct. One way to assess the effectiveness of our system is by reviewing where in the value chain concerns are raised" (page 71).

"We also receive reports from business partners indicating that they are aware of the possibility to report concerns through SpeakUp" (page 75). The disclosure does not state how value chain workers are made aware of the channel.

Taking action on material impacts on value chain workers

Reference: pages 71-72.

Identification (page 71): "Significant business partners are identified based on their geographic location combined with spend thresholds... supported by externally provided country risk scores from an environmental, social and governance perspective."

Supplier due diligence (page 72): "Since 2024, information about our significant direct material suppliers has been uploaded to an external platform that enables further assessment of their sustainability performance... Strategic significant suppliers are invited and encouraged to undergo a third-party desktop audit. Where needed, corrective actions are agreed upon together with the supplier, after which they are re-assessed. Should a business partner fail to meet our standards... we may ultimately terminate the relationship." A dedicated responsible sourcing workstream has been in place since 2024.

Responsible minerals (page 72): "Our responsible minerals program covers tin, tantalum, tungsten, gold, and cobalt, and includes regular data collection and due diligence, following the guidelines and reporting templates of the Responsible Minerals Initiative (RMI)."

Outcome (page 72): "During 2025, no instances of severe human rights issues or incidents connected to the Group's value chain were reported through the Group's whistleblower system, SpeakUp."

Targets related to value chain workers

Reference: page 72; Group target table page 74.

Commitment target (pages 72, 74): "Our target is that 100% of significant business partners commit to our Code of Conduct, by signing our Business Partner Criteria document. This applies to both suppliers and distributors. Their commitment needs to be reconfirmed at least once every five years. At the end of 2025, 94% (91) of our significant suppliers and 95% (94) of our significant distributors had signed the compliance statement" (page 72). The 2023 figures were 90% and 94% (page 74).

New ESG assessment target (page 72): "From 2025 onwards... we also measure and report the share of strategic significant material suppliers engaged in the assessment on environmental, social and governance aspects. The ambition level was set to achieve 50% by 2027." No 2025 result is reported (page 74).

Supplier audits, % (page 72): audited on safety, health and environmental aspects 12 (15; 14); approved 95 (92; 87); conditionally approved and monitored 5 (8; 13); rejected with the relationship discontinued 0 (0; 0).

"While value chain workers were not directly involved in setting these targets, input from the Group Purchasing Council, as a proxy for supplier perspectives, was considered" (page 72).

Policies related to consumers and end-users

Reference: page 73; policy framework page 41.

"We strive to live up to our customers' expectations, and in line with the product safety principles in our Code of Conduct and SHEQ policy... our products and services are developed to meet the productivity, quality, functionality, safety, and environmental needs of our customers and end users. Our products must also comply with relevant laws and regulations, including those regarding the health and safety of end users. When required, our products are also properly tested for safety prior to introduction, and are delivered with required product, service and safety information" (page 73).

The SHEQ policy "ensures robust standards for the safety and well-being of our employees and others affected by our operations, as well as an environmental and quality perspective on technologies, products and services" (page 41).

Who is covered (page 73): "Our end users include workers at our customers who operate our technologies, products and services in manufacturing and other applications. As such, we contribute to our end users' working conditions related to health, safety and ergonomics."

The policy covers personal safety of end users, the material sub-topic in the DMA. It does not address privacy, access to products and services, or responsible marketing.

Processes for engaging with consumers and end-users about impacts

Reference: pages 73-74.

"As stated in our SHEQ policy, customer focus is a guiding principle for Atlas Copco Group and our ambition is to build close relationships with our customers. In our decentralized business model, the customer centers hold overall responsibility for customer relationship management, while our sales and service teams play a central role as the primary point of contact with customers in the field" (page 73).

"Surveys are conducted regularly to learn from customers' experience and opinions about their interaction with us and about our products and services. Customers are also often engaged directly in feedback discussions to help us identify areas of improvement, including safety aspects. Here, we monitor several customer satisfaction KPIs, which help us track feedback systematically" (page 73).

"At divisional level, a number of key performance indicators on customer satisfaction have been established, which are continuously followed up. That the Group's products and services meet customer expectations in terms of safety and health aspects is a central part of customer satisfaction" (page 74).

No senior role is named as accountable for the engagement, and the customer satisfaction KPI results are not published.

Processes to remediate negative impacts and channels for consumers and end-users to raise concerns

Reference: page 73; whistleblowing detail page 75.

"Questions or concerns related to our products and their handling are typically managed by the responsible customer centers, which maintain direct contact with our customers. Our whistleblowing system, SpeakUp, is also accessible via our global website to customers who wish to raise a concern related to our products or services" (page 73).

"We ensure that potential product-related safety incidents or concerns are reported and thoroughly followed up until resolved. Incidents are carefully investigated by internal experts to identify the root cause and determine appropriate corrective actions. These may include product modifications, retrofit campaigns, recalls, or field service activities. When necessary, performance is monitored, and outcomes are reported to responsible managers" (page 73).

SpeakUp is "hosted by an independent external provider", operates 24 hours a day in more than 70 languages, and reports are "assigned to impartial internal investigators supported by Group Legal" (page 75).

Outcome data appears under S4-5: "In 2025, no personal safety incidents involving end-users were reported through the Group's whistleblower system, SpeakUp" (page 73). The disclosure does not state how end users are made aware of the channels.

Taking action on material impacts on consumers and end-users

Reference: pages 73-74.

"Operator safety and experience is fully integrated into the product development process, including risk assessments and testing to identify potential areas for improvement. Product safety is a shared responsibility across functions, involving engineering, product compliance and our customer centers and service organization. Safety aspects are important for each phase of the product's life cycle, from its design to disposal. By developing solutions that leverage automation and digitalization of products and services, we continuously enhance both efficiency and safety" (page 73).

Training (page 73): "Product safety training is offered to all relevant employees, including field service engineers, as part of their onboarding and continuous competency development. Customer training is available when relevant to secure the safe handling of our products. We also ensure that our products include operating instructions, safety warnings, proper labels and markings."

Certification (page 74): "many of the Group's products hold external certifications and markings, such as CSA, SEMI, ETL, ATEX among others. Obtaining and maintaining these certifications include routine external audits by independent third parties."

Resources are not quantified, consistent with the Group position that costs "cannot always be separately identified" (page 37).

Targets related to consumers and end-users

Reference: pages 73-74.

The company reports the absence of targets plainly: "We do not have any measurable, outcome-related or time-bound targets related to product safety. Instead, our overarching goal is to provide our customers with safe and effective products that help build their trust in us and support long-lasting relationships" (page 73).

Effectiveness tracking in place of targets (pages 73-74):

• "We also track and follow up all safety-related incidents related to our products. In 2025, no personal safety incidents involving end-users were reported through the Group's whistleblower system, SpeakUp"
• "In addition, our operational entities monitor warranty and quality issues through structured follow-up processes"
• "At divisional level, a number of key performance indicators on customer satisfaction have been established, which are continuously followed up"
• External certifications (CSA, SEMI, ETL, ATEX) involve "routine external audits by independent third parties"

No customer satisfaction values, warranty or quality figures, or recall counts are published, so the effectiveness tracking is described rather than quantified, and no timeline is given for setting targets.

Business conduct policies and corporate culture

Reference: pages 74-75; policy framework page 41.

"The Code of Conduct is the Group's central policy document and sets out the fundamental values and principles that apply to all employees, the Board of Directors, and to our business partners. It is based on international frameworks such as the United Nations International Bill of Human Rights, the United Nations Global Compact, and the OECD Guidelines for Multinational Enterprises. Topics covered include anti-bribery and corruption, insider trading, conflicts of interest, fair competition, and trade compliance" (page 74).

"In 2025, the structure and content of the Code of Conduct were updated, with topics including responsible use of technology and AI, and safeguarding cybersecurity. The new edition... will be released in early 2026" (page 41). The anti-bribery and corruption policy, "updated in 2025", "aligns with the principles of the United Nations Convention against Corruption (UNCAC)" (page 75).

Training (page 75): "All employees are required to complete a leader-led ethics training every two years... In addition, all employees must complete annual Code of Conduct e-learning and sign a compliance statement." A trade compliance training launched in 2025; "A fair competition training will follow in 2026.

Management of relationships with suppliers

Reference: page 76; supplier due diligence pages 71-72.

"Atlas Copco Group has a large international supplier base, which presents challenges and risks that can vary greatly between countries. Through a risk-based approach, we prioritize the evaluation of significant suppliers, who represent the majority of our purchase value, as well as suppliers operating in high-risk markets related to corruption, environmental practices, or human rights" (page 76).

"The Group's purchasing strategies are decentralized... Local purchasing creates value in the communities where the Group operates, such as job opportunities and direct and indirect income" (page 76).

"Significant suppliers are evaluated both during the selection process and throughout the business relationship, based on criteria aligned with international frameworks such as the UN Global Compact and the ILO Declaration... Suppliers are evaluated using an ESG assessment tool, complemented by audits when necessary. These audits result in a report that may include corrective actions to be followed up within an agreed timeframe... If a supplier fails to meet the criteria and shows no willingness to improve, the relationship may be discontinued" (page 76).

A customer sustainability assessment tool was piloted in 2025 "at selected customer centers in high-risk markets" (page 76). The disclosure does not address payment practices.

Prevention and detection of corruption and bribery

Reference: page 75; ERM context page 40.

"Atlas Copco Group enforces a zero-tolerance policy toward all forms of corruption and bribery, including facilitation payments. This policy applies to all employees and members of the Board of Directors, and covers all business dealings and transactions in every country where we operate... Corruption risks are part of the Enterprise Risk Management process" (page 75).

Training (page 75): "All employees undergo annual anti-corruption training. Anti-corruption dilemmas are included in the mandatory annual Code of Conduct e-learning, as well as in the biennial leader-led ethics training. In addition, the UN Global Compact anti-corruption e-learning, Doing Business with Integrity, is available to all employees." On targeting: "Rather than identifying functions most at risk for corruption, we train all employees annually on anti-corruption" (page 74).

Internal audit (page 75): "The Group conducts internal audits of all operational entities using a risk-based approach, with each entity typically audited at least once every five years. These audits include an ethical review as well as an assessment of corruption-related risks. In 2025, 20% of all entities were audited and no significant risks related to corruption were identified."

Training completion rates by employee category are not published.

Targets related to business conduct

Back-filled from the business conduct chapter, where targets are disclosed as part of the MDR-T minimum disclosure requirements rather than as a numbered DR. G1-3 became a standalone DR only in the 2025/2026 ESRS.

Atlas Copco Group discloses seven measurable business conduct targets (page 74):

"Employees who joined the Group through acquisitions after September 30, 2025 are excluded from this KPI" (page 74). The targets came out of the 2024 review and were "approved by the business area management teams, Group Management, and finally the Board of Directors" (page 34).

Incidents of corruption or bribery

Reference: page 75.

"In 2025, Atlas Copco Group recorded no convictions or fines for violation of anti-corruption or anti-bribery laws. In the event of any violations, the Group is committed to taking appropriate action, including adjustment of policies or procedures and taking disciplinary measures up to and including termination of employment" (page 75).

The company qualifies the completeness of the figure in a footnote: "The data include convictions, penalties and fines resulting from corruption incidents through Speakup in 2025. We acknowledge that there may be convictions, penalties and fines resulting from corruption incidents not reported through Speakup. We will continue to strengthen and harmonize our reporting processes to support a more complete and reliable data collection over time" (page 75).

The EU legislation table maps "ESRS G1-4 / 24 (a) Fines for violation of anti-corruption and anti-bribery laws" to page 75 and "24 (b) Standards of anti-corruption and anti-bribery" to pages 74-75 (page 81).

The disclosure covers convictions and fines. It does not separately report the number of confirmed incidents of corruption or bribery, the number in which employees were dismissed or disciplined, or the number relating to business partner contracts terminated or not renewed.