Gränges AB

Reference: page 78 (Corporate Governance Report pages 61, 65-67; diversity data page 116).

The Board of Directors is "the highest governing body for sustainability" (p.78). It has 10 members, including employee representatives and deputies, 40% women and 60% men (p.78). Composition, experience, employee representation and independence sit in the Corporate Governance Report (pp.65-67; the independence column is on p.61).

• Audit Committee: assigned follow-up of sustainability reporting under its rules of procedure (p.78).
• Board skills: members have held board seats at other companies working with sustainability, and external specialists are available (p.78).
• Group Management Team (GMT): checks that the global sustainability plan, long-term targets and policies fit the company's vision and strategy, and reviews regional performance against sustainability targets (p.78).
• SVP Sustainability: heads the Group Sustainability function, sits on the GMT and chairs two cross-regional teams: Sustainability, and Source Green & Recycle (p.78).
• Regional Presidents: develop and run local sustainability targets and plans (p.78).

Reference: page 78.

Board: 8 scheduled meetings in 2025. The CEO presents sustainability performance at each one as part of the business update. The SVP Sustainability reports on performance, progress and plans against the long-term goals once a year. 2025 topics included decarbonization, the sustainability value proposition, responsible sourcing and sustainability engagement. Regional Presidents present their plans, sustainability included, once a year (p.78).

Audit Committee: the SVP Sustainability and the Director Sustainability Reporting attend the quarterly meetings. In 2025 the updates covered progress against the limited assurance scope and progress towards CSRD compliance (p.78).

Group Management: sustainability is part of the GMT meetings and agenda, and financial and sustainability performance are reviewed monthly. Regional Business Boards, chaired by the CEO and held twice a year, follow up each region. The GMT also acts as a Sustainability Board for the two cross-regional teams, which present twice a year (p.78).

Reference: page 78 (remuneration guidelines page 73).

Senior managers receive an annual short-term incentive (STI) and several parallel long-term programs (LTI), both paid in cash (p.78). 80% of the STI is linked to financial objectives and 20% to non-financial ones. The non-financial objective is "linked to the total carbon emission intensity (scope 1+2+3) performance" (p.78).

The GMT designs the incentive program and proposes outcomes, and the Board of Directors approves them (p.78). The guidelines on p.73 require the non-financial STI objective to be linked to the carbon footprint of the business, and state that "All LTI programs must have a clear connection to the Group's business strategy and long-term sustainability goals" (p.73).

Reference: page 79.

The due diligence procedures are guided by the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights, the ILO declaration on Fundamental Principles and Rights at Work, the eight fundamental ILO conventions and the International Bill of Human Rights (p.79).

The statement carries a table that maps the core due diligence elements to pages (p.79):

• Embedding due diligence in governance, strategy and business models: p.80
• Engaging with affected stakeholders: p.82
• Identifying and assessing adverse impacts: pp.83-84, 124
• Taking actions to address those impacts: pp.79, 110-114, 119
• Tracking effectiveness and communicating: pp.82, 110-119, 121-123

A sustainability evaluation of environmental and social impacts, qualitative and quantitative on key metrics, is required for new projects, large expansions and other investments under the Investment Policy (p.79).

Reference: page 79 (Risk Management pages 45-54; Audit Committee page 61).

Sustainability risks are identified and evaluated in the Enterprise Risk Management (ERM) process. Regional management teams review, rank and prioritize risks each year and keep mitigation plans current. The Group Management Team does an annual risk review and a summary goes to the Board (p.79). Risks are quantified on financial impact (EBIT) and likelihood, and risks from the double materiality assessment and the scenario analysis are reflected in ERM with matching definitions and thresholds (p.79).

Sustainability reporting has been added to the Internal Control Policy, following the COSO recommendations (p.79). The company says the framework "will be further developed to ensure same level of accuracy as the financial control framework" (p.79). Internal audits check controls at each location and report to the Audit Committee (p.79). In 2025 internal control reviews were carried out at Finspång, Sweden and in the US (p.61).

Reference: pages 79-81 (strategy page 80; value chain page 81).

Gränges describes itself as a global leader in aluminium rolling and recycling in selected niches (p.79). It has three business areas: Americas (915 employees), Asia (1,194) and Europe (1,447), with production in the US, Sweden, Poland and China and the head office in Stockholm (p.79). Customers are in automotive, HVAC, specialty packaging and batteries, plus niches such as transformers and wind turbines. The company "did not have any banned products" in the year (p.79).

Own operations are re-melting, casting, rolling and slitting. Upstream are primary aluminium suppliers and recyclers; downstream are product manufacturers and end-users of vehicles, building HVAC systems and packaging (p.81).

The datapoint list on p.125 points to pp.87 and 102 for involvement in fossil fuel activities and marks chemical production, controversial weapons and tobacco "Not applicable". The Navigate plan builds on three trends: sustainability, electrification and regionalization (p.80). The sustainability plan has three areas with 2030 goals: net-zero (net-zero emissions by 2040), circular (500 ktonnes of sourced recycled aluminium) and responsible (100% sustainable suppliers) (p.80).

Reference: page 82 (dialogue as part of the materiality assessment pages 83-84).

Gränges holds structured dialogues each year with five stakeholder groups: customers, employees, investors, suppliers and society (p.82). The table on p.82 lists the forums and outcomes for each. Examples: customer questionnaires and in-depth interviews led to product development; employee surveys every two years and internal trainings led to a review of global trainings and policy reviews; supplier assessments and the Supplier Code of Conduct led to an updated Responsible Sourcing Program (p.82).

The company states that "No amendments of Gränges' business strategy or business model have been made as a result of the 2025 stakeholder dialogues and input" (p.82). All regions also run local dialogues, and a comprehensive stakeholder dialogue was part of the double materiality assessment (pp.82-83).

Reference: pages 83-84, 81; topic chapters pages 87, 102, 104, 106, 111, 119, 121.

The double materiality assessment (DMA) results are on p.84, which lists 17 material issues by standard: E1 climate change mitigation, adaptation and energy; E2 air pollution; E3 water resources; E5 resource inflows and resource outflows; S1 working conditions, health and safety, employee wellbeing, equal treatment, training and leadership, and other work-related rights; S2 labor and human rights in the value chain; G1 corporate culture and corruption/bribery; and responsible sourcing as an entity-specific matter reported within G1 (pp.83-84). Each row gives the value chain location and time horizon.

Page 81 maps material topics to upstream, own operations and downstream. Each topic chapter then lists the impacts, risks and opportunities (IROs) with their type.

The DMA informs the sustainability strategy and business model. "No amendments to material topics, nor the sustainability strategy have been made as a result of the 2025 revision" (p.83).

Reference: pages 83-84.

Gränges ran its first DMA in 2022 on draft ESRS, updated it in 2023 for the final ESRS with quantified impacts, risks and opportunities, and finished validation in 2024. The 2023 update looked at 37 sub-topics and identified 23 as potentially material (p.83). The DMA is revised each year using the annual stakeholder dialogues; the 2025 revision added the Shandong facility (p.83).

Impact materiality: scored on scale, scope, irremediability and (for potential impacts) likelihood, each 0-5 (p.83).

Financial materiality: the VP Business Control & Risk Management and the Group Sustainability function scored likelihood (0-5) and effect on Group EBIT (0-5), consistent with the ERM definitions (p.83).

Sign-off: the SVP Sustainability and Group CFO validated the results, materiality thresholds were set, and the results went to the GMT and the Board (p.83). No extra screening of assets or sites, and no consultation with affected communities, was judged necessary (p.83).

Reference: pages 83, 125-126 (datapoint list), 127-130 (content index).

The ESRS content index (pp.127-130) lists the disclosure requirements "complied with in preparing the sustainability statement, following the outcome of the materiality assessment" (p.127). It covers ESRS 2 and the topical standards E1, E2, E3, E5, S1, S2 and G1. E4, S3 and S4 do not appear.

The index flags E1-9, E2-6, E3-5 and E5-6 as "Omitted in the reporting year in accordance with the ESRS phase-in provisions" (pp.127-128), and G1-2 as "Omission: G1-2 14. Reason: Not material" (p.130). On p.77 the company says it adopted the July 2025 "Quick Fix" amendments where applicable.

Pages 125-126 list the datapoints derived from other EU legislation (SFDR, Pillar 3, Benchmark Regulation, EU Climate Law) with a page reference or a "Not applicable" or "Not material" marker. The index shows incorporation by reference to the Corporate Governance Report (GOV-1, GOV-3) and Risk Management (GOV-5) (p.127), and to the G1 chapter for S1-3, S1-4, S2-2, S2-3 and S2-4 (pp.129-130). Responsible sourcing is an entity-specific matter reported within G1 (p.83).

Reference: pages 89-91.

Goals: net-zero carbon emissions by 2040, a 42% cut in scope 1 and 2 emissions and a 57% cut in scope 3 emissions intensity by 2030, both against a 2021 baseline (p.89). SBTi approved the 2030 and 2040 goals, which the company says match the 1.5-degree pathway (p.89). It is not excluded from the EU Paris-aligned Benchmark (p.89).

Plan: five pathways: net-zero fuels, renewable electricity, recycling growth, net-zero primary aluminium, and net-zero solutions and sectors (pp.89-90). Named investments: the casting and recycling centre in Huntingdon, the Yunnan joint venture and green bond financing (p.89).

Governance: each business unit reports progress and investment needs twice a year to regional boards chaired by the CEO. The plan "has been presented to and approved by the Board of Directors" (p.89).

Locked-in emissions: grid-dependent electricity use (some sites still buy coal-based power), natural gas furnaces, and primary aluminium from high-emission smelters (p.89).

Progress: emissions down 46% against 2021 including Shandong. No GHG removals or carbon-credit projects were used (p.89).

Reference: pages 88, 83.

Back-filled from ESRS 2 SBM-3 (the E1 scenario analysis section), where this content is disclosed in the FY2025 report (page 88). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

In 2024 Gränges ran a scenario-based climate risk and opportunity analysis following the TCFD recommendations. It covers all facilities, transition and physical risk, and three horizons: 2025-2030, 2031-2050 and 2051-2100 (p.88).

Scenarios (p.88): Green road (SSP1-1.9, limiting warming to 1.5°C), Middle of the road (SSP2-4.5, warming of 2.1-3.5°C by 2100) and Fossil-fueled development (SSP5-8.5, warming of 3.3-5.7°C by 2100).

Risks (p.88): transition: policy and legal, technology, market. Physical: acute (cyclones, floods) and chronic (precipitation, temperature, sea level). Opportunities: resource efficiency, energy source, products and services, partnerships.

Method (p.88): qualitative and quantitative assessment using sector datasets, benchmarks and IPCC projections to estimate severity, likelihood and financial effect, with assumptions consistent with the discount rates, energy costs and impairment tests in the financial statements. The report dates the analysis to 2024 and does not mention a 2025 update.

Reference: pages 88, 83.

Back-filled from ESRS 2 SBM-3 (the E1 scenario analysis and resilience text), pages 83 and 88. This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

Results (p.88): transition risk is highest in the SSP2-4.5 and SSP5-8.5 pathways (rising carbon costs, shifting customer expectations, higher investment needs for low-emission technology) and lower under 1.5°C. Physical risk rises in the higher-warming scenarios. Opportunities from resource efficiency, low-carbon energy and new products are strongest under 1.5°C and weaken as warming rises.

Uncertainty (p.88): the assessment names future carbon prices, grid decarbonization, technology availability and long-term physical climate impacts.

Capacity to adapt (p.88): the strategy "remains adaptable through flexible sourcing, phased investments and the ability to scale recycling, energy-efficiency measures and low-carbon technologies as conditions evolve".

The company adds that the strategy "undergoes continuous valuation through the company's annual business planning and review" (p.83).

Reference: pages 89, 85.

The Global Environmental Policy governs climate. For climate change it "sets clear principles on reducing emissions across scope 1, 2 and 3, lowering energy consumption, improving energy intensity and promoting the use of renewable energy" (p.89). The SVP Sustainability owns it, and it covers all legal entities, employees and contracted workers (p.85).

The Supplier Code of Conduct mirrors those environmental principles and requires suppliers to cut emissions in their own operations and value chains, improve energy efficiency and use more renewable energy (p.89).

The policy table on p.85 adds two related documents: the Greenhouse Gas Accounting Procedure (owner: Director Sustainability Reporting) and the Investment Policy (owner: CFO). The Investment Policy requires every expansion investment to support the sustainability ambitions and decarbonization plan, and maintenance investments must do no harm to them (p.85).

Climate change adaptation is a material topic (p.84). The policy text on p.89 describes mitigation principles only.

Reference: pages 90, 77, 96.

Five drivers, each with an ambition and 2025 activities (p.90):

• Net-zero Gränges (scope 1): 100% net-zero fuels by 2040. No net-zero fuels were used in 2025.
• Net-zero electricity (scope 2): 100% renewable electricity by 2030. Shanghai buys 100% renewable electricity and Finspång 100% hydro power; Konin sourced 72% hydro through guarantees of origin; Newport, Salisbury and Huntingdon use solar power through renewable energy credits (100%, 27%, 16%). Renewable electricity share: 60%.
• Recycling growth (scope 3): 500 ktonnes by 2030. Sourced recycled aluminium reached a record 300 ktonnes (249); the Huntingdon casting and recycling line came online.
• Net-zero primary aluminium (scope 3): 100% by 2040. 16% of purchased primary aluminium was low-carbon; supply from the Yunnan joint venture; a supplier summit in Stockholm.
• Net-zero solutions and sectors: customer and OEM work, including a circularity plan with Federal Metals and Daikin for end-of-life HVAC units.

Financial resources: the MDR-A entry (p.77) points to Sustainable financing (p.96) and the EU Taxonomy report (pp.97-101). A SEK 600 million green bond issued in 2025 is due in 2030 (p.96).

Reference: page 91 (also pages 94, 96).

Targets are SBTi-approved. The base year is 2021, restated to include Shandong, and the goals cover about 91% of total emissions in the SBTi inventory (p.91).

• Net-zero across the value chain by 2040.
• 2040: absolute scope 1+2 down 90%; scope 3 down 97% per tonne of packed product.
• 2030: absolute scope 1+2 down 42%; scope 3 down 57% per tonne of packed product.
• 2025 targets against a 2017 base (Shandong excluded): scope 1+2 intensity down at least 25% (result 0.60 tonnes per tonne, down 37%); scope 3 intensity down at least 30% (5.7, down 46%); renewable share at least 20% (23%); energy intensity down 17% (3.3 MWh per tonne, "in line with the energy intensity in 2017").

Outcomes (p.91): total emissions rose 10% to 4,191 ktonnes while intensity fell 12% to 6.6 tonnes per tonne. Against the 2021 baseline, total emissions are down 46%, absolute scope 1+2 down 19% (440 ktonnes) and scope 3 intensity down 48%.

Scope 2 uses the market-based method (p.91).

Reference: pages 92-93.

Total energy consumption was 2,044,239 MWh in 2025 (1,784,187 in 2024), up 15% on higher production and more remelting of recycled aluminium (p.92).

• Fossil: 1,588,936 MWh, 78% of the total: natural gas 1,232,416 MWh, crude oil and petroleum products 64,386 MWh, and purchased non-renewable electricity, heat, steam and cooling 292,135 MWh. Nuclear is 75,465 MWh, 4%.
• Renewable: 455,303 MWh, 22% (23% in 2024). Self-generated non-fuel renewable energy was 2,405 MWh, from solar panels at Shanghai.
• Renewable share by area (p.93): Europe 49%, Asia 22% (40%), Americas 7%. Asia fell because the Shandong plant buys coal-based electricity.
• Intensity (p.93): 3.2 MWh per tonne (3.5), and 72.1 MWh per SEK million of net revenue (75.9) for activities in high climate impact sectors.

The report defines renewable sources as wind, solar, hydro, geothermal, tidal and biomass (p.92).

Reference: pages 94-95.

Market-based total GHG emissions were 4,191 ktonnes CO2e in 2025 (3,823 in 2024), up 10%; location-based 4,309 (3,980) (p.94). The report ties the rise mainly to adding the Shandong plant (p.91).

• Scope 1: 266 ktonnes (239); 26% from regulated emission trading schemes.
• Scope 2: 174 ktonnes market-based (88), 292 location-based (245). 55% of electricity is covered by purchased energy attribute certificates (p.95).
• Scope 1+2 market-based: 440 ktonnes (327), 0.70 tonnes per tonne of product (0.64).
• Scope 3: 3,751 ktonnes (3,496), 5.9 tonnes per tonne (6.9): purchased goods and services 3,606; fuel- and energy-related 60; upstream transport 49; business travel 0.4; downstream transport 35 (p.94).
• Total intensity: 6.6 tonnes per tonne (7.5); 148 per net revenue, market-based (163), unit printed as "tonne CO2e/SEK" (p.95).

7% of scope 3 rests on primary data. Scope 3 categories left out are listed on p.94. The company reports no biogenic emissions (p.95).

Reference: page 102.

The governing policy is the Global Environmental Policy. On air pollution it contains principles on reducing negative impacts on biodiversity, climate and water, preventing local pollution and phasing out hazardous substances (p.102). Internal stakeholders' views were included when the principles were set (p.102).

All sites and employees must comply with environmental laws and regulations, draw up action plans for non-compliance and run management systems consistent with ISO 14001 and ISO 50001 as well as Aluminium Stewardship Initiative (ASI) certification (p.102). Every site has local plans and procedures for avoiding incidents and emergencies, including pollution incidents (p.102).

The material E2 topic is air pollution, with one actual negative impact and one risk (p.102).

Reference: page 102.

Sites keep their production facilities under regular maintenance so that emission levels stay within environmental permits. Measurements under local legislation are made at all sites at least once a year (p.102).

Other reduction measures: monitoring systems and bag house filters to cut dust and other gases from industrial processes (p.102). Huntingdon and Finspång use air wash systems that recover mill oil from the rolling operations, which lowers total organic carbon (TOC) and volatile organic compound (VOC) emissions (p.102). Each year the company carries out activities under its local environmental control programs (p.102).

Reference: page 102.

The index lists E2-3 on p.102 (p.128), and the answer is a nil one: "Gränges does not have global targets relating to pollution" (p.102).

The company's reasoning: emissions to air are regulated and monitored in daily operations at all sites and regularly controlled by local authorities to keep them within acceptable limits. Compliance "is a prerequisite for Gränges' continued license to operate" (p.102).

Reference: page 103.

Other emissions to air in 2025, with 2024 in brackets (tonnes, group total):

• Nitrogen oxides (NOX): 172.1 (134.2)
• Sulphur dioxide (SO2): 12.5 (7.4)
• Particulate matter (PM): 40.7 (15.9)
• Volatile organic compounds (VOC): 1,275.8 (1,214.9)

Gränges Americas accounts for 1,249.2 tonnes of the VOC total. The company ties the rise in NOX, SO2 and PM to the Shandong plant, and the VOC rise mainly to higher production on coating lines at Newport (p.103).

NOX and SO2 are calculated from fuel use with local emission factors or taken from continuous measurement. PM and VOC are tracked with monitoring systems such as dust sensors, measured at least once a year by local authorities through external measurements, or calculated from emission rates and metal charged in melters (p.103). The report says Gränges "did not generate nor use any microplastics during 2025" (p.103).

Reference: page 104.

The governing policy is the Global Environmental Policy. On water it sets principles for reducing negative impacts on water and water consumption (p.104). Facilities are expected to cut water consumption and waste-water generation and prevent local water pollution (p.104).

The policy applies to all production facilities regardless of water-risk area. Water sourcing is handled in each facility's local water management plan, not in the policy (p.104).

Reference: page 104.

Local conditions: Huntingdon uses groundwater; Salisbury, Newport, Shanghai and Shandong use municipal water; Konin uses both groundwater and municipal water; Finspång uses surface water from two lakes. The company states that "No water sources are significantly affected by the water withdrawal or discharge from Gränges" (p.104).

Risk: water risk is reviewed each year with the World Resources Institute Aqueduct Water Risk Atlas. Finspång and Newport are low-to-medium risk, Saint-Avold and Huntingdon medium-to-high, Salisbury high, and Shanghai, Shandong and Konin extremely high (p.104). Local water management plans exist at all facilities (p.104).

Reuse: Huntingdon, Salisbury, Newport and Shanghai have closed-loop cooling systems. Americas has installed cooling water towers, Shanghai uses water-efficient cleaning equipment, and Finspång installed a cooling tower during the year (p.104).

Reference: page 104.

Target: implement local water management plans in all facilities by 2025, Shandong excluded (p.104). Outcome: reached for all facilities except Shandong, which is planning implementation (p.104). The Newport site is certified under the Alliance for Water Stewardship International Waters Stewardship Standard (p.104).

The target was set on a voluntary basis and internal stakeholders took part in setting it (p.104). The E3-4 water metrics on p.105 give the quantified follow-up.

Reference: page 105.

Water withdrawal was 4,429 thousand m3 in 2025 (3,631 in 2024), up 22%, mainly from Finspång where a new production line, new meters and higher volumes raised withdrawal (p.105). Surface water 3,041, groundwater 958 and third-party water 430. 501 thousand m3 was withdrawn in water-stressed areas (511 in 2024).

Water consumption (withdrawals minus discharges) was 245,137 m3 (248,561), down 1%; 231,897 m3 of it in areas at water risk. Recycled and reused water was 13,419,942 m3 and stored water 2,000 m3, first-year data covering Finspång and Shanghai (p.105).

Intensity: 7.9 m3 per tonne (7.1). Consumption per net revenue was 8.6 m3 per SEK million (10.6), down 18% (p.105).

Shandong is left out of the water data for insufficient data quality, and the measurements are "not validated by an external body" (p.105).

Reference: page 106.

The governing policy is the Global Environmental Policy, which aims to minimize adverse operational impact on the environment (p.106). On resource use and circularity it sets principles on using more third-party verified low-carbon primary aluminium and recycled aluminium, on waste management and reducing process waste, and on phasing out hazardous substances (p.106).

Suppliers face the same environmental principles through the Supplier Code of Conduct (p.106).

Reference: pages 106-108.

Increase the use of recycled aluminium (p.106): recycling is a key part of the 2030 plan. To reach 500 ktonnes of recycled aluminium by 2030 the company invests in recycling capabilities, capacity and circular business models. It sources pre-consumer scrap from customers and recycling companies and post-consumer scrap from recycling partners, and recirculates processed aluminium from its own operations. Gränges Shandong has added to recycled volumes through a product mix with a higher share of scrap content, and the casting and recycling center in Huntingdon, Tennessee, ramped up. In 2025 the company set up a long-term partnership for recycled sourced ingots (RSI) in Europe and scrap-based slab partnerships in Asia.

Low-carbon primary aluminium (p.107): the Yunnan joint venture with Shandong Innovation Group supplies Shanghai, which received its first deliveries in 2025. Challenge: clad automotive heat exchanger alloys are hard to separate for remelting.

Outflows (p.107): alloy design for recyclability, third-party verified carbon footprint certificates, and local waste handling procedures at all sites.

Reference: page 107.

Targets cover all business areas and production facilities (p.107):

• Recycling: 500 ktonnes of sourced recycled aluminium by 2030 (2017 baseline). 2025 outcome: 300 ktonnes.
• Recycled share: at least 30% of total sourced metal inputs by 2025 (2017 baseline). 2025 outcome: 45.1%.
• Circular alloys: 100% of products with third-party verified sustainability information by 2025. Outcome: all products have it.

The 2017 baseline does not include Shandong. The targets were set on a voluntary basis and internal stakeholders took part in setting them (p.107). The company states "Gränges does not have a Group target related to waste" (p.107).

Reference: pages 106-108.

Sourced metal inputs were 665 ktonnes in 2025 (540 in 2024; 505 in 2023), made up of primary aluminium 350 ktonnes (279), recycled aluminium 300 ktonnes (249) and alloys 16 ktonnes (13) (p.108). The recycled share was 45.1% (46.2%): Europe 43.8%, Asia 26.7%, Americas 63.5%.

16% (14%) of sourced primary aluminium was defined as low-carbon, based on supplier-specified, third-party verified carbon footprint certificates, and all facilities bought some (p.108). The company still relies on primary aluminium (p.107).

Metrics are not validated by an external body (p.108). The metrics table names only primary aluminium, recycled aluminium and alloys as inputs (p.108).

Reference: pages 107-108 (waste on page 109).

The index lists E5-5 as "Resource outflows - Products and materials/waste" (p.128).

Products (p.107): the company designs alloys to raise the recycling ratio and recyclability so that pre- and post-consumer scrap can be remelted. All Gränges products have third-party verified sustainability information available, and all facilities except Shandong use a carbon-footprint assessment tool.

Recyclable content (p.108): the rate of recyclable content in products was 45.1% (46.2% in 2024; 41.6% in 2023). The company says this reflects externally sourced recycled aluminium used in its products and that data on the rate of recyclable content in packaging are not available.

Waste (p.107): the aim is to cut waste by recycling and reusing in production where possible, minimize landfill and reduce hazardous waste. Hazardous waste includes dross from remelting and rolling oil. Waste quantities are in the E5-5 waste table on p.109.

Reference: page 109.

Total waste generated was 52,920 tonnes in 2025 (44,382 in 2024), up 19%, driven by adding Shandong and by higher volumes at Newport and Salisbury in the US (p.109).

• Diverted from disposal: 43,496 tonnes, of which hazardous 8,610 (7,403 recycled) and non-hazardous 34,886 (34,172 recycled).
• Directed to disposal: 9,425 tonnes, of which hazardous 1,134 (642 incinerated, 288 landfilled, 204 other) and non-hazardous 8,291 (233 incinerated, 8,057 landfilled).
• Hazardous waste in total: 9,744 tonnes (4,803). Non-recycled waste: 9,425 tonnes, 18% of the total (11%).

Non-hazardous landfill rose on refractory bricks, bag house solids and filter media in Gränges Americas. A 167 tonne waste categorization error in 2024 was restated. The company says it has no radioactive waste (p.109).

Reference: pages 112, 114, 85.

The governing policy for the own workforce, including human rights commitments, is the Code of Conduct. It is based on the UN Global Compact, the Universal Declaration of Human Rights, the UN Sustainable Development Goals and the OECD Guidelines for Multinational Corporations (p.112). It aims at a workplace with openness and diversity, and works against discrimination, harassment (including sexual harassment) and retaliation. It also covers modern slavery, forced labor and child labor (p.112).

Health and safety are governed by the Occupational Health and Safety (OHS) Policy, which sets expectations for a safe and healthy workplace and is available to all employees on the intranet (p.112). The policy table on p.85 names the Always Safe cross-regional team as its owner.

The company has no employees under 18, and sees the risk of child and forced labor as low in its own operations and greater in its supply chain (p.114).

Reference: pages 112-114.

Safety (pp.112-113): the GMT and regional Presidents hold overall safety responsibility; each facility has an Environmental Health and Safety manager and a safety committee. 100% of employees were covered by an OHS management system, and all facilities have a system in line with ISO 45001. Global Safety Standards cover mobile equipment, fire suppression, machine safety, molten metal handling, confined spaces and fall protection, with annual self-assessments and action plans. A cross audit was carried out in Konin. In 2025 the OHS system was set up at the Shandong facilities, with job safety analysis, Walk Observe Communicate observations and extensive training. Training happens at least annually for employees, temporary staff, managers and on-site contractors. The index lists "ESRS G1: Business conduct" as incorporation by reference for S1-4 (p.129).

People (pp.113-114): the People Plan, onboarding of over 600 Shandong employees, first-line manager and senior leadership programs, and an annual performance and development discussion (82% of employees in 2025; 100% excluding Shandong, where reviews are planned for early 2026).

Reference: page 114.

Targets and 2025 outcomes (p.114):

• Total Recordable Rate (TRR): at most 3.0 by 2026. 2025: 7.6.
• Severity rate: below 50 by 2027. 2025: 174.
• Women in senior management: at least 30% by 2025. 2025: 27%.
• Employee Engagement Index: at least 85 by 2026. Latest result: 82 (the 2024 survey, scale 0-100).

Health and safety performance is tracked monthly in cross-regional teams and quarterly at Group level. Diversity and inclusion and employee wellbeing targets are tracked annually. Internal stakeholders were involved in setting the targets (p.114).

Reference: page 115 (also pages 79, 111).

At 31 December 2025 Gränges had 3,556 employees by head count (2,890 in the prior year): 2,983 men and 573 women, with no head count reported for other or undisclosed gender (p.115). The increase is mainly from adding the Shandong plant (p.115).

• By country: China 1,194, United States 915, Poland 841, Sweden 571. By business area: Europe 1,447, Asia 1,194, Americas 915.
• Contract type: 2,740 permanent and 816 temporary (Asia 712 of the temporary); 3,544 full-time and 12 part-time; no non-guaranteed employees.
• Turnover: 11.6% (13.9% in 2024).
• Contracted workers: 165, giving 3,721 people in total, 96% directly employed and 4% contracted (pp.111, 115).

Country figures cover countries with at least 50 employees representing at least 10% of the total (p.115).

Reference: page 115 (index entry on page 129).

The ESRS content index lists S1-7, characteristics of non-employees in the own workforce, against p.115 (p.129). On that page the company reports 165 contracted workers, defined as "individuals working on-site or off-site on behalf of Gränges", and states that "Gränges has no non-employees or non-guaranteed workers" (p.115).

Contracted workers are 4% of the 3,721 people working for the company (p.111), and the health and safety figures on p.118 include them. Contracted workers are left out of the employee wellbeing KPIs on p.117.

Reference: pages 116, 114.

The total collective bargaining coverage rate is 63% (76% in 2024) (pp.114, 116). The fall comes from including the Shandong plant, which currently has no collective bargaining coverage (p.116).

By country (p.116): Sweden and Poland above 80%; China above 40%; Gränges Americas above 20%. Workplace representation (EEA only) is in Sweden and Poland. Employees not covered by collective bargaining agreements get "corresponding levels of protection, benefits, and employment standards" (p.116). The company notes that collective bargaining agreements are not represented by any European working group (p.116).

Reference: page 116.

Women are 16% of the workforce (14% in 2024) and 27% of senior management (25%) (p.116). Senior management means members of the Global Leadership Team (p.116).

By group, share of women (p.116): Board of Directors 40% (4 of 10), Group Management 17% (1 of 6), senior management 27% (16 of 60), white-collar 30%, blue-collar 11%, total 16% (573 of 3,556).

Age split of the total workforce: under 30, 17%; 30-50, 59%; over 50, 24% (p.116). Senior management has no one under 30 (47% aged 30-50, 53% over 50).

The company names high turnover in some regions, traditional gender roles in some countries and shift work as obstacles to better gender balance (p.116).

Reference: pages 113-114 (index entry cites page 113).

The report gives a statement rather than a metric. The company "ensures fair working hours, adequate wages, appropriate rest periods, and time off for all employees" (p.114). On p.113 it says it offers a competitive compensation package and is implementing "competitive wages" among measures to hold on to employees in the Americas.

The text reviewed gives no adequate wage benchmark and no share of employees paid below one. The index lists S1-10 against p.113 (p.129).

Reference: page 113 (index entry on page 129).

The only treatment is a sentence on p.113: employees receive occupational health services on and off site, "including flexible work options, wellness grants, regular health checks, and social protection against loss of income".

No breakdown by country or by type of life event (sickness, unemployment, work injury, parental leave, retirement) is given. The index lists S1-11 against p.113 (p.129).

Reference: page 117 (also page 113).

82% of employees took part in regular performance and career development reviews in 2025 (100% in 2024): women 72%, men 84% (p.117). The fall is because reviews for Shandong employees were not held in 2025 and are planned for early 2026. Excluding Shandong, participation was 100% for women, men and total (p.117).

Average training hours per employee were 15.9 (11.7 in 2024): women 18.1, men 15.5 (p.117).

Training data is based on average number of employees and is limited to training run by or with an external party plus the group-wide Code of Conduct, anti-corruption and IT security trainings (p.117).

Reference: page 118.

• Coverage: 99% of own workers are covered by the health and safety management system; 96% by a system that is internally audited or externally certified (46% in 2024), after ISO 45001 certification at Finspång, Shandong and all Americas facilities (p.118).
• Fatalities: 0 (0 in 2024).
• Recordable accidents: 55 (57), a rate of 7.6 per million hours worked (10.1).
• Days lost: 1,262 (1,390). Severity rate 174 lost workdays per million hours (245).
• TRR by area: Europe 13.9 (11.1), Asia 1.7 (3.9), Americas 8.7 (13.8).

Europe's TRR rose on accidents in the last quarter that were behavior and PPE related (p.118). Data includes contracted workers, and all own employees and contracted workers at company sites are covered by the management system (p.118).

Reference: page 117 (data limitations note on page 129).

Total gender pay gap: 2.18 (unit as printed, no % sign). Annual total remuneration ratio: 34 (p.117). 2025 is the first year the company collects remuneration metrics, so there is no comparison (p.117).

Method: the pay gap uses all employees' gross hourly pay, calculated from total basic salary and total hours worked, with basic salary excluding variable compensation. The ratio compares the total annual remuneration of the highest-paid individual with the average total annual remuneration of all other employees (p.117). The index notes the same data limitations (p.129).

Reference: page 114 (also page 112).

"During the year, no incidents of discrimination or human rights breaches were reported" and no related fines, penalties or compensation were payable by Gränges (p.114). The same statement appears under the grievance channels on p.112.

On human rights and labor conditions the company says it upholds international standards, does not tolerate forced or child labor and has no employees below 18. It describes the risk of child and forced labor as low in its own operations and greater in its supply chain, especially in the extractive industry (p.114).

Reference: page 119.

The Code of Conduct sets the base for responsible business conduct. It rests on the UN Global Compact, the UN Universal Declaration of Human Rights, the UN Sustainable Development Goals and the OECD Guidelines for Multinational Corporations (p.119).

The Responsible Sourcing Policy sets group-wide procedures and requirements for responsible sourcing. The Supplier Code of Conduct sets requirements on suppliers, with principles on a non-discriminatory workplace, health and safety, human rights and fair working conditions: forced labor, minimum age, working hours, freedom of association and the right to collective bargaining (p.119). Both policies appear in the policy table on p.85 with the SVP Sustainability as owner.

Reference: pages 119, 124.

Actions run through the Responsible Sourcing Program (p.124); the index lists "ESRS G1: Business conduct" as incorporation by reference for S2-4 (p.130). Each business unit must run a local program covering suppliers with annual spend above 500 kSEK. Six steps: pre-check and risk screening; supplier onboarding with a commitment to the Supplier Code of Conduct; desktop or onsite assessment or audit; analysis and corrective actions; continuous development including supplier training; and re-assessment or re-audit at least every three years (p.124).

If a supplier refuses to sign the code, declines a third-party assessment or fails to improve, an escalation process starts, which can end in blocked purchase orders and terminated relationships (p.124). In 2025 high-risk suppliers were identified and followed up, and training was prioritized for scrap suppliers in Europe (p.124). Effectiveness is tracked through supplier assessments, re-evaluations of high-risk suppliers and checks that corrective-action plans hold (p.124).

Reference: pages 119, 124.

"Gränges does not have a Group target related to workers in the value chain" (p.119). The company treats this as part of a responsible supply chain and points to its responsible sourcing target on p.124.

That target is a 2030 goal of 100% sustainable suppliers, measured as the share of purchase value from active suppliers approved as sustainable in the Responsible Sourcing Program (p.124). The report states that 70% of suppliers were sustainable in 2025 (p.72; shown on p.120).

Reference: pages 121-122, 85.

Culture: the core values (Sustainable, Action oriented, Committed) are reviewed annually: activities across the Group are assessed, employee commitment is measured and focus areas are set. In 2025 they were promoted through workshops, recognition programs and a sustainability quiz in Asia (p.121).

Policies (p.121): the Code of Conduct (UN Global Compact, Universal Declaration of Human Rights, OECD guidelines), the Anti-Corruption Policy, the Whistleblower Policy, the Responsible Sourcing Policy and the Supplier Code of Conduct. Local HR functions make sure managers hand out the Code of Conduct and that training is held every year. The Code applies to employees, board members, temporary staff and others acting on behalf of the company.

Whistleblowers (p.122): the Whistleblower Function is run by an external, independent party, and the company is subject to the Swedish Whistleblower Protection Act (2021:890), which implements EU Directive 2019/1937.

Reference: page 124 (index MDR-T entry lists page 124).

Back-filled from the business conduct chapter. The report was prepared under the 2023 ESRS, where business conduct targets fall under MDR-T. G1-3 became a standalone targets disclosure only in the 2025/2026 ESRS.

The G1 chapter sets one target, under the Responsible Sourcing Program: "As part of the new program, Gränges has committed to a 2030 goal of 100 percent sustainable suppliers" (p.124). It is measured as the share of purchase value from active suppliers approved as sustainable in the program (p.124). The report states 70% in 2025 (p.72; shown on p.120).

No target is stated for corruption or bribery. The chapter reports outcomes: 100% participation in Code of Conduct and anti-corruption training, and no confirmed corruption incidents in 2025 (p.123).

Reference: page 123.

Incidents (2025, with 2024 in brackets): convictions for violation of anti-corruption and anti-bribery laws 0 (0); confirmed incidents of corruption or bribery 0 (1); confirmed incidents where own workers were dismissed or disciplined 0 (1); confirmed incidents where contracts with business partners were terminated or not renewed 0 (1) (p.123). "No confirmed corruption incidents were detected during 2025" (p.123).

Training: 100% of white-collar employees took the anti-corruption training in 2025 (100% in 2024). Code of Conduct training reached 100% in total, with Europe at 99.6% (p.123). Incident data is collected through the Whistleblower Function (p.123).