Elanders Ab

Governance of sustainability is anchored in the Board of Directors and Group Management, cascaded through three Group-wide councils (People & Culture, Environment & Climate, and IT) that "usually meet on a quarterly basis" and include sustainability managers, HR managers and heads of finance from subsidiaries (p.63). "At each regular Board meeting, as well as meetings of the Audit Committee, sustainability is a standing item on the agenda, presented either by the CFO, the Compliance Officer or the Head of Sustainability. All members of the Board have experience working with one or more areas of sustainability, encompassing environmental, social and governance matters" (p.63). Support functions (Group Finance, Corporate Sustainability, People & Culture, IT, Environment & Climate) implement and monitor the strategy the Board approves (p.63 governance chart). Full role detail is cross-referenced to the Corporate Governance Report on pages 107-111.

Sustainability matters reach the Board through a standing agenda item at every regular Board meeting and Audit Committee meeting, presented by the CFO, the Compliance Officer or the Head of Sustainability (p.63). "In 2025, the Board addressed all material topics, risks and opportunities related to sustainability by reviewing and updating the double materiality assessment. Both the Board and Group Management are committed to ensuring that the company's strategic direction and processes are aligned with the identified risks, impacts and opportunities" (p.63). Group-wide councils report to Group Management, which in turn reports to the Board (p.63). Further detail is cross-referenced to the Corporate Governance Report, pages 107-111.

Sustainability targets are not yet linked to variable pay. "Translating the targets to concrete, measurable key indicators and measures is also a prerequisite for including sustainability targets in senior officers' variable remuneration, which is an ambition for the Group. However, for 2025 sustainability was not a parameter for variable remuneration within Elanders" (p.62). This is a stated intention rather than an implemented incentive link for the reporting year.

Elanders states plainly that it has not yet formalised a due diligence process: "At the time of conducting the double materiality assessment, Elanders did not have a specific due-diligence process in place to inform the analysis (see the EU's CSDDD). The need for such a group wide process is now being evaluated" (p.66). Separately, the Group notes it has prepared for the Corporate Sustainability Due Diligence Directive but that, following the EU's 2025 Omnibus Package raising the CSDDD threshold, "based on its current size, Elanders will not be directly subject by the CSDDD" (p.62), and that German operations already apply the domestic "LkSG" due-diligence law (p.62).

Risk management and internal control cover both financial and sustainability reporting. The Corporate Governance Report states its scope is "the management and the administration of the company operations as well as internal control over both financial and sustainability reporting" (p.107). "The Board also has an audit committee that is responsible for ensuring that established principles in financial reporting, sustainability reporting and internal control are complied with and developed. It also maintains regular contact with the external auditors" (p.111). "The Board of Directors is responsible for identifying and managing material risks and risks of error in the financial and sustainability reporting" (p.111). An internal control function reporting to the CEO and CFO "performs audits of the entities within the Group," testing "the entities' internal controls" (p.111).

Elanders is described as "a global logistics company offering a comprehensive range of integrated solutions within supply chain management," supporting customers "throughout a product's entire life cycle, from the production of components to recycling once the product has reached the end of its useful life" (p.20). Customers span six segments (Automotive, Electronics, Fashion, Health Care, Industrial, Other) and operations run through two business areas, Supply Chain Solutions (more than four-fifths of the Group) and Print & Packaging Solutions (p.20, 23-24). The Group corresponds to "the ESRS sector groups Road Transport and Other Transport" (p.61). Group revenue for 2025 was MSEK 12,201, with Supply Chain Solutions contributing 79% of EBITA and Print & Packaging Solutions 17% (p.23-24).

Elanders identifies five stakeholder groups with named engagement channels: shareholders and investors (analyst conferences, AGM, investor meetings), suppliers (dialogues, procurement negotiations, supplier visits), employees (surveys, the People & Culture Council, EWC, whistleblower function), customers (dialogues, surveys, events) and society (partnerships, sponsoring, industry organisations) (p.64). "Stakeholder dialogues are a central part of Elanders' risk analysis process and double materiality assessment. They have influenced both the identification of the Group's material sustainability topics and the other areas of priority for sustainable development" (p.64). Results of these dialogues are "regularly communicated to both Group Management and the Board of Directors" (p.64).

The 2025 double materiality assessment found Elanders' material sustainability topics "in the categories E1, E5, S1 and G1, divided into eleven material topics" (p.67): climate change mitigation, energy, resource inflows, resource outflows, secure employment, health and safety, gender equality and equal pay, training and skills development, corporate culture, protection of whistleblowers, and corruption and bribery (p.67 table). "The results show that Elanders' main impacts are found in its own ongoing operations but also affect both the up- and downstream value chain in the environmental impact and risk areas," driven mainly by "the Group's dependence on non-renewable energy for transportation and emissions in relation to the production of paper" (p.67). E3 (water and marine resources) and S3 (affected communities) were not identified as material.

The double materiality assessment followed five steps: (1) preparation and planning, with a central working team of the CEO, CFO and representatives from Group Finance, Sustainability and Risk & Compliance; (2) mapping of value chains, business context and external regulatory/industry trends; (3) a top-down assessment of impacts, risks and opportunities based on "the ESRS pre-defined impact areas (ESRS 1, Appendix A, AR 16)," impact first, then risks and opportunities; (4) review with stakeholders, management, the Board and external auditors; and (5) documentation and reporting (p.66). Impact materiality was scored on scale, scope and irremediability (with likelihood for potential impacts); financial materiality on magnitude and likelihood (p.66). The assessment "is based on both Elanders' own operations and the value chain," covering both of the Group's primary supply chains (p.65-66). The process was first run in 2024 and reviewed in 2025, with no changes identified to the evaluation process itself (p.65).

Elanders publishes its ESRS content index as a "List of disclosure requirement" table at the head of each chapter: general ESRS 2 disclosures (p.60), E1 - Climate change (p.71), E5 - Resource use and circular economy (p.71), S1 - Own workforce (p.86) and G1 - Business conduct (p.94), each naming the disclosure requirement and the page(s) where it is addressed. A further "ESRS 2 Appendix B - List of data points that derive from other EU legislation" table (pp.98-103) marks individual cross-cutting datapoints as Material/Not material with page references. This filing's classification of every disclosure requirement below is built from those company-published indexes.

Elanders' transition plan is under active development rather than finalised: "During the year, the Group and its subsidiaries initiated the development of transition plans to reduce their climate emissions in line with the Group's climate targets, as well as to quantify expected reductions in the primary emission sources... The work to establish transition plans, which includes descriptions of strategies, resource and investment needs, and operating expenditures for implementation, is expected to be completed during 2026" (p.72). In the interim, "Elanders introduced climate impact as an evaluation parameter in the Group's investment decisions in 2025" (p.72). The plan is anchored on gross, SBTi-validated targets of a 50% reduction in Scope 1+2 and a 25% reduction in Scope 3 by 2030 (2021/2022 base years) and net-zero across the value chain by 2050 (p.73).

Climate-related commitments sit inside the Group's Code of Conduct: "Climate-related responsibility is incorporated into Elanders' Code of Conduct. It establishes fundamental guidelines for how the company shall be operated in an ethically, socially and environmentally sustainable manner. The Code of Conduct covers all of Elanders' identified material topics" (p.72). "Reducing the Group's negative climate impact is a strategic priority, both to mitigate business and sustainability-related risks and to maintain and enable new revenue streams" (p.72). No standalone, dedicated climate change mitigation and adaptation policy document is separately named; climate is instead addressed through the Code of Conduct and the sustainability strategy's "Reduced emissions" priority (p.62).

Actions during 2025 span the Group's own fleet and buildings and its value chain: continued investment "in energy-efficient lighting and e-savers," a growing share of renewable electricity, and two electric trucks introduced "for transport on behalf of a customer in Germany" (p.72-73). CloudX, Elanders' logistics platform, "enables Elanders' customers to use several logistics points located closer to the customer or end customer," reducing transport distances "particularly for returns but also for deliveries" (p.72). The Group is "actively working to stay informed through ongoing dialogues with customers and suppliers" on the shift to fossil-free fuels and electrification, while noting new risks such as "larger investments needs" and "increased reliance on electricity" (p.72-73).

Elanders' climate targets, validated and approved by the Science Based Targets initiative (SBTi) during 2025, are: Scope 1+2 absolute emissions reduced 50% by 2030 and 90% by 2050 from a 2021 base year (~52,000 tonnes CO2e); Scope 3 absolute emissions reduced 25% by 2030 and 90% by 2050 from a 2022 base year (~229,000 tonnes CO2e); and net-zero across the value chain by 2050 (p.73-74). "In the second quarter, Elanders' Board of Directors updated the Group's climate targets for greenhouse gas emissions. These climate targets were subsequently validated and approved by the Science Based Targets initiative (SBTi) during 2025" (p.73), aligning them "with the Paris Agreement's goal to limit global warming to a maximum of 1.5 degrees Celsius" (p.73).

Total energy consumption fell to 170,267 MWh in 2025 from 192,887 MWh in 2024 (p.78). The mix was 77% fossil (131,170 MWh), 2% nuclear (2,661 MWh) and 21% renewable (36,435 MWh), up from 19% renewable in 2024 (p.78). "In 2025, the share of renewable electricity purchased increased by 3 percent compared with the previous year. The amount of self-generated renewable electricity increased by approximately 49 percent" (p.78). "100 percent of the Group's revenue, as well as 100 percent of the Group's energy consumption, derives from activities within sectors with high climate impact" under the EU's Delegated Regulation 2022/1288 classification (p.79); energy intensity from those activities was 14 MWh per MSEK of net revenue, unchanged year on year (p.79).

Scope 1 emissions were 26,817 tonnes CO2e in 2025 (2024: 29,678, -10%); Scope 2 market-based 9,547 tonnes CO2e (2024: 10,118, -6%); Scope 3 184,949 tonnes CO2e (2024: 202,759, -9%); total market-based GHG emissions 221,312 tonnes CO2e (2024: 242,555, -9%) (p.77-78). Scope 3 is reported for "ten of the fifteen upstream and downstream categories," the largest being upstream transportation and distribution (140,564 tonnes CO2e) and purchased goods and services (48,025 tonnes CO2e) (p.76-77). "No deductions are made for avoided emissions, carbon offsets or carbon credits" (p.77). Biogenic CO2 outside Scopes 1-3 was 959 tonnes CO2e (p.77). GHG intensity per net revenue was 18 tonnes CO2e/MSEK (market-based) (p.78).

Back-filled from Elanders' climate DMA/E1 chapter, where this content is disclosed in the FY2025 report (pages 71-72). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against. "In 2025, Elanders conducted a climate resilience analysis to assess how the company's assets, business operations, and upstream value chain may be affected under different future climate scenarios. The analysis was performed as a desktop study" (p.71), using three IPCC Shared Socioeconomic Pathways: "1. ≤1,5 degrees Celsius, 2. 2-3 degrees Celsius, and 3. >3 degrees Celsius" (p.72). Three risk types were assessed - acute physical, chronic physical and transition risks - covering "vehicles and buildings" as the most exposed assets and freight forwarding services by road, air and sea as major emission sources requiring reduction (p.72). No global-average-temperature figure per scenario beyond the named ranges, and no explicit business-unit/geography scope statement, is given.

Back-filled from Elanders' climate DMA/E1 chapter, where this content is disclosed in the FY2025 report (pages 71-72). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against. "Conclusions: Both the level of risk, the need for resilient systems, and the costs of climate adaptation increase in line with rising temperatures across the scenarios. Physical risks also intensify after 2060 in scenarios 2 and 3. The material assets most exposed to climate-related risks are vehicles and buildings" (p.72). Adaptation capacity is described qualitatively: "contingency plans for extreme weather and resilience assessments among suppliers may be examples of actions that can reduce physical risks for the Group," and "the conclusions from the resilience analysis will, where relevant, be incorporated into the upcoming assessment of the double materiality assessment" (p.72). No quantified financial flexibility or asset-redeployment analysis is given; the analysis is stated to be a desktop study, not confirmed as annually refreshed.

"Elanders' Code of Conduct regulates material efficiency and responsible waste management. This entails more circular and sustainable resource flows" (p.79). There is no standalone resource-use policy: "There are no directions or regulations concerning the extraction or origin of materials in the Code of Conduct or other policies, instead, environmental impact is assessed at Group level. An evaluation is underway to determine whether responsible resource management should be included in future climate and environmental policies" (p.79).

Within Print & Packaging Solutions, Elanders "has continued its transition from traditional offset printing to more digital printing," offering "greater material efficiency and reduced energy consumption" (p.79). The Group is "increasing the share of environmentally certified and recycled paper" ahead of the EU Deforestation Regulation, expected "no earlier than December 2026" (p.79), and is "participating in a multi-year development project aimed at optimizing packaging sizes to reduce material consumption, waste, and transportation needs" (p.79). Small-scale internal reuse projects are also under way, for example refurbishing "used pallets... to be used for new uses, such as furniture" (p.79). Elanders is also "working on a number of initiatives related to resource outflows and circularity" within Life Cycle Management, aiming to expand beyond mobile phones and IT equipment "into additional customer segments and product categories" (p.79).

"Elanders has no individual targets regarding material consumption or resource efficiency; instead, these areas are prioritized within the framework of the Group's overarching climate targets" (p.80). "To improve the ability to report outcomes and key figures relating to resource use within the Group, continuous efforts are being made to enhance data quality, including improved quality controls" (p.80). This is a nil-return disclosure: no dedicated circular-economy or resource-use target is set, with the Group's 2030/2050 GHG targets serving as the closest proxy.

Total purchased biological material was 44,029 tonnes in 2025 (2024: 48,172), of which 40% (2024: 43%) came from sustainable sources certified under "FSC, PEFC, EU Ecolabel, German Blue Angel or Nordic Swan Ecolabel" (p.80). Purchased recycled paper was 9,161 tonnes (2024: 5,842), 24% of all paper purchased (2024: 14%) (p.80). Environmentally certified paper made up 47% of paper purchased in 2025 (p.79-80). Purchased biological material "primarily consist of paper, cardboard, and wood in the form of wooden pallets used in the Group's warehouse facilities" (p.80).

Through the Life Cycle Management business concept, "just over 253,000 (189,000) units were refurbished and sold in 2025 within the operations in Sweden and Germany," a 33% increase, "calculated to avoided emissions of a total of approximately 74 thousand tonnes of CO2e" (p.80). "The average expected lifespan of refurbished products from Life Cycle Management is currently estimated at four years... The refurbished products are 100 percent recyclable and repairable, and the packaging used for these products is also 100 percent recyclable" (p.80). Refurbished categories are "laptops, mobile phones, monitors, and servers" (p.79).

Workforce-related commitments run through the Group Code of Conduct: "Elanders has committed to respecting human rights, in line with the UN Guiding Principles on Business and Human Rights (UNGPs), the UN Declaration on Human Rights and the ILO's declaration on fundamental principles and rights in working life... clearly stated in the Group's Code of Conduct, which also includes a strict prohibition against all forms of forced labor, human trafficking and child labor" (p.85-86). Elanders' own ESRS 2 Appendix B table rates the workplace-accident-prevention-policy datapoint (S1-1, para 23) as "Material," page 89, while the human-rights-policy, ILO-due-diligence and trafficking-prevention datapoints under S1-1 are separately rated "Not material" (pp.100-101) - i.e., a health-and-safety policy exists and is material; broader standalone human-rights-policy datapoints were assessed as not material given "the double materiality analysis did not identify any significant impact, risk, or opportunity related to human rights" (p.85).

"Elanders has a continuous and constructive dialogue with employee representatives," anchored by the European Works Council (EWC), which "consists of employee representatives from every country in Europe that Elanders operates in" and convenes annually "with the participation of Elanders' Group Chief Executive Officer" (p.86-87). "Elanders also has three employee representatives on the Board of Directors, where one of the representatives is a deputy member" (p.87). The Group-wide "People & Culture Council," with representatives from subsidiary HR functions, meets quarterly to "ensure the implementation of management's strategy within the material social sustainability areas" and "share experiences among the companies" (p.87).

"Elanders has a whistleblower function for the Group's stakeholders to report suspected violations of laws and regulations within the Group's operations or in its value chain," covering "IT security, data privacy, environmental offences, corruption, human rights violation, discrimination or financial fraud," with the reporting person "guaranteed anonymity and complete confidentiality" (p.64). "Elanders has established processes for addressing situations in which the Group has caused or contributed to a material negative impact on employees. This includes the investigation of incidents, dialogue with affected parties, and the implementation of corrective actions. The effectiveness of these actions is assessed through follow-up activities, documented action plans, and feedback from affected employees" (p.90-91).

Actions taken on material workforce impacts are described topic by topic: on health and safety, "continuous safety assessments," "procedures for incident reporting and investigation" and "regular health and safety training" (p.89); on gender equality, active dialogue through the EWC, People & Culture Council and whistleblowing function, plus established "processes for addressing potential violations of human rights" including "support and remediation to affected individuals" (p.90); on training, local dialogue between employees and managers as the primary delivery mechanism (p.92). Effectiveness is monitored via a defined set of Group-wide indicators - gender equality, corruption/bribery, accident frequency, whistleblowing cases and mandatory-training completion (target: at least 98%) - reported quarterly to Group management and the Audit Committee (p.92).

"At present, Elanders has not adopted any specific targets related to the material social topics; however, the Group is continuously working to develop governance structures and monitoring processes to strengthen its efforts in these areas" (p.86). The Group's stated 2025-onward social ambitions are qualitative: "An accident-free and healthy Elanders" (p.62). Monitoring ambitions functioning as proxy targets include "no accidents or fatalities shall occur" and "at least 98 percent of relevant employees complete the required training" (p.92). "Furthermore, the Group is investigating the need to develop specific targets linked to material social topics" (p.92-93).

Total headcount at year-end was 7,252 (2024: 7,637), of which 2,740 women and 4,512 men; full-time equivalents totalled 6,708 (2024: 7,175) (p.87-88). By contract type (FTE): 5,963 permanent and 745 temporary, with "data with regards to not-guaranteed-hours not available for 2025" (p.89). Employee turnover was 21% (2024: 21%) (p.87-88). Germany is the largest single-country workforce (3,287 employees), followed by the United States (938) and the United Kingdom (835), with the Group spread across roughly 20 countries (p.87-88).

"In addition to Elanders' own employees, the Group also hires seasonal workers who are employed by employment agencies. Around 87 (86) percent of the total employees are employed directly through Elanders" (p.86). In FTE terms, the Group "had 963 (1,143) non-employees (FTE), who were instead employed by employment agencies" (p.87). "Established staffing agencies are used for other employees to ensure good working conditions" (p.85-86). No further characteristics (contract type, work pattern) are broken out separately for this non-employee population.

The Group's share of women was 37% of all employees (unchanged from 2024), 44% of the Board of Directors, 14% of Group Management and 27% of management positions overall (2024: 29%) (p.90-91). "For 2025, Elanders reports remuneration indicators for the first time, including gender pay differences between male and female employees" (p.90). Elanders' own ESRS 2 Appendix B table cross-references this datapoint directly: "ESRS S1-9 66 a" - "Percentage of female supervisors" - reported in "Note 5 Group - Personnel," page 124 (p.60), matching the "Percentage of female supervisors 27% (2024: 29%)" key ratio given on the report's summary page (p.60).

Elanders' own S1 content index lists "S1-11 Social protection" without giving it a distinct discussion under its own heading; the closest supporting text sits within the Secure employment section (pp.86-87), which states that employees are hired under "transparent and lawful terms and conditions of employment," governed by "the laws and regulations" of each country in which Elanders operates (p.86), and that seasonal and agency workers are engaged through "established staffing agencies... to ensure good working conditions" (p.85-86). No coverage percentage or named statutory scheme (sickness, unemployment, employment injury, disability, parental leave) is given, so this disclosure is thin relative to its listing in the index.

"The average number of training hours for an Elanders employee during the year was 11 (11) hours. The number of training hours is considered to be in line with the company's expectations" (p.92). By gender: 11 hours for all employees, 10 for women and 11 for men in 2025 (2024: 11/10/12) (p.92-93). "The reporting covers training offered to employees in the Group and includes both external and internal training. The reporting excludes on-site supervision. Average training hours are calculated per employee corresponding to FTE" (p.92).

Elanders recorded 131 work-related injuries in 2025 (2024: 128), with no fatalities in either year (p.89). "The accident rate has been calculated based on number of accidents per 1,000,000 hours worked," giving 10.4 in 2025 (2024: 9.5) (p.89). Workdays lost rose to 1,313 (2024: 868) on total hours worked of 12,630 thousand (2024: 13,476 thousand) (p.89). "The share of people in own workforce covered by the Group's health and management system is 100 (100) percent" (p.89). Elanders' Appendix B table separately rates the fatalities/accidents and days-lost datapoints as "Material," page 89 (p.101).

"The gender pay gap for 2025, based on base salary for employees, amounted to 16 percent... primarily attributable to the underrepresentation of women in senior roles" (p.90-91). "The remuneration ratio of the highest-paid individual compared to the median annual total remuneration for all employees amounted to 59 for 2025" (p.91). "For 2025, Elanders reports remuneration indicators for the first time, including gender pay differences between male and female employees and the annual total remuneration ratio" (p.90).

"Elanders' corporate culture is founded on the company's Code of Conduct that defines fundamental guidelines and values for how the company should operate in an ethically, socially and environmentally sustainable way... It applies to all employees, the Board of Directors and other individuals who act on behalf of Elanders" (p.94). "The CEO has the overall responsibility for the Code of Conduct. It is reviewed regularly and approved by the Board" (p.94). "All employees sign the Code of Conduct upon employment," with mandatory refresher training "every other year"; at the 2025 assessment, "99 percent of all concerned employees completed the Code of Conduct training, compared to 99 percent in 2023" (p.94-95). A separate "Code of Conduct for Suppliers... defines the basic requirements and the responsibility that suppliers should take towards their stakeholders" (p.94).

"Elanders assesses that the overall corruption risks within the Group are relatively low, considering the nature of its operations," while noting operations "in part... in countries with a high Corruption Perceptions Index" (p.95). "The biggest identified risk for corruption is assessed to be pertaining to inappropriate types or levels of gifts presented to subsidiary employees from potential or actual suppliers or customers... The functions considered to have the highest risk are roles with direct customer or supplier contact, as well as senior positions" (p.95). The Group's "anti-corruption policy is in line with the UN Convention against Corruption and establishes zero tolerance for all types of fraud, bribery, money laundering and other types of irregularities" (p.95); the CEO holds overall responsibility for the policy (p.95).

Under the Group's 2025-onward sustainability strategy, the stated Governance ambition is "All employees comply with Elanders Code of Conduct" (p.62). Effectiveness is tracked via named monitoring ambitions rather than a single numeric target: "Corruption and bribery - the ambition is that no lawsuits, convictions, or other sanctions related to violations of laws on corruption and bribery shall occur" and "Whistleblowing cases - the ambition is to ensure effective handling, transparency, and continued protection of whistleblowers," both reported quarterly to Group management and the Audit Committee (p.92). This report is prepared under the 2023 ESRS, which had no standalone business-conduct targets DR; this content is drawn from the MDR-T-equivalent ambition and monitoring statements above.

"In 2025, Elanders received 26 reports through the whistleblowing channel. One case was considered material and related to misconduct. The case was investigated in accordance with the company's established whistleblowing process. Apart from this, no material incidents related to fraud, corruption, bribery, or money laundering were reported through the Group's whistleblowing system during the year" (p.95). Elanders' own ESRS 2 Appendix B table rates both related datapoints as "Material," page 95: "ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a)" and "ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b)" (p.103); no separate fines figure is quoted in the narrative text captured.