HMS Networks AB

The role of the administrative, management and supervisory bodies

Reference: page 52. Board and management composition datapoints are incorporated by reference to the Corporate Governance Report (pages 36-37, 42-45) and the risk section (pages 129-132) (page 51).

The Board of Directors holds ultimate responsibility for sustainability matters: strategic direction, approval of sustainability targets and oversight of impacts, risks and opportunities. It has eight non-executive members and formally approves the annual sustainability statement. The Audit Committee monitors regulatory compliance, internal controls and the quality of sustainability reporting.

Group Management, led by the CEO, turns the Board's direction into operations. Accountable executives by material topic: E1 and E5, COO; S1, CHRO; S2, COO; G1, CFO. Progress on targets, KPIs and risks is reviewed in monthly management meetings.

The Global Sustainability Department coordinates the work with Finance, Supply, Legal and HR. An ESRS reporting reference team, coordinated by the Head of Sustainability and Quality, sets the procedures for data quality, documentation and internal control.

Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies

Reference: page 54.

The Board hears about sustainability matters once a year and as needed: reporting progress, double materiality assessment (DMA) results, IRO performance and progress on strategic objectives. Group Management gets quarterly and bi-annual updates on sustainability indicators, regulatory changes and initiatives, with extra briefings when a new risk or rule needs a quick response.

During the year both bodies considered the material IROs and trade-offs when they looked at strategic direction, investment decisions and risk management. The report gives three examples: DMA results feed strategy updates and are tracked through KPIs reported to management and the Board; financial sustainability risks go into the normal risk process (pages 129-132); and IROs that fall below the financial materiality threshold are reported to the Board on a regular basis.

At the end of 2024 Group Management reviewed the material IROs, and the Board and Group Management approved them. The DMA was updated in the first half of 2025 and presented to Group Management at the mid-year review.

Integration of sustainability-related performance in incentive schemes

Reference: pages 54-55. Remuneration guidelines are incorporated by reference to the Corporate Governance Report (page 37) and notes 9 and 10 (pages 146-149).

HMS runs three types of incentive: short-term plans (the Annual Incentive Plan and the Sales Incentive Plan), long-term incentives for key positions, and a four-year Share Saving Program open to all employees.

The 2025 incentive program includes four sustainability targets:

• submission and validation of climate targets with the SBTi
• an absolute reduction in Scope 1 and 2 greenhouse gas emissions in line with the SBTi targets
• higher employee engagement (Engagement Index or eNPS)
• higher customer satisfaction (cNPS)

For Group Management, 10% of variable compensation is tied to these targets. The Board decides the targets, metrics and payout criteria each year.

Statement on due diligence

Reference: page 55.

HMS maps the five core elements of due diligence to sections of its statement in a table:

• Embedding due diligence in governance, strategy and business model: GOV-1, GOV-2, GOV-3, SBM-3
• Engaging affected stakeholders: GOV-2, SBM-2, IRO-1, Appendix 1
• Identifying and assessing adverse impacts: IRO-1, SBM-3
• Taking action to address adverse impacts: SBM-3, E1-3, E5-2, S1-4, S2-4, G1-3
• Tracking effectiveness and communicating: E1-4, E5-3, S1-5, S2-5, G1-4

The section is the table alone. The supplier due diligence process itself (self-assessments, audits, conflict minerals reviews and corrective actions) is described under IRO-1 (page 60) and S2-4 (pages 102-104).

Risk management and internal controls over sustainability reporting

Reference: page 55. Risk and risk management (pages 129-132) is incorporated by reference.

HMS describes four control components:

• Accuracy, completeness and compliance: training for reporters and guidance documents for climate data, which the report calls a high-risk area because of the data volume and earlier discrepancies
• Central system tools: a global HR system, a whistleblowing system and a sustainability reporting platform with supplier monitoring and climate calculation tools
• Controls inside certified processes: the ISO 14001 and ISO 9001 management systems
• Internal and external verification: the Global Sustainability Team validates climate data quarterly with at least one extra reviewer, and external assurance covers greenhouse gas emissions linked to the SBTi targets

Sustainability risks are assessed every year in the group risk process. DMA results are mapped against it, so financially material sustainability risks sit inside the existing risk framework.

Strategy, business model and value chain

Reference: pages 56-57. Segment information is incorporated by reference to the Directors' Report (page 124) and note 4 (page 142).

HMS has 1,134 employees in more than 20 countries (726 in Europe, 290 in North and South America, 113 in Asia, 5 in Oceania). Its products let industrial equipment share data with software and systems. Net sales in 2025 split across three divisions: Industrial Data Solutions 46%, Industrial Networking Technology 30% and New Industries 24%. The company states it earns no revenue from fossil fuels, chemicals production, controversial weapons or tobacco.

The 2030 strategy has three pillars. Planet: SBTi-approved climate targets and a goal to rank in the top 5% on EcoVadis. People: at least 30% female managers and an engagement index above 80. Growth: a customer NPS above 50.

Value chain (page 57): component suppliers and contract manufacturers (43% of electronic equipment in 2025), HMS production and warehouses, then distributors (52% of revenue) and direct sales (48%). Cloud services are under 5% of revenue and are left out of the diagram. Energy used by customers when running HMS products is over 70% of the value chain carbon footprint (page 56).

Interests and views of stakeholders

Reference: page 58.

HMS names five stakeholder groups: owners and investors, employees, customers, suppliers, and authorities and society. A table gives for each group why HMS engages, how (for example capital markets days and rating dialogues for investors, employee surveys and safety committees, customer surveys and trade fairs, supplier assessments, audits and conflict minerals reporting, consultations and industry initiatives for authorities), the outcome and how results are communicated.

Dialogue with stakeholders feeds the DMA, and management and the Board hear the results. The report ties stakeholder input to four changes: stronger priority on climate targets and SBTi-validated targets, more circular design in product development, the Responsible Sourcing Framework, and a global health and safety policy with a new incident and near-miss reporting system at the Halmstad and York production sites.

Affected communities were not consulted (page 59).

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

Reference: pages 62-67.

Material topics are E1, E5, S1, S2 and G1 (page 52). The IRO table (pages 63-67) gives each item's value chain position, time horizon, policies and financial effect. Financial effects are scored 1 to 5 as a share of EBIT, from minimal (below 0.25%) to critical (above 5%).

Rows by topic: E1 three (emissions from own operations, value chain emissions, energy consumption); E5 three (resource inflows, resource outflows, waste); S1 three (competence development, gender balance in leadership, health and safety); S2 four (labor rights and working conditions, treatment of value chain workers including forced labor risk, living wages and fair hours, health and safety); G1 two (corporate culture, corruption and bribery).

In the 2025 DMA revision Pollution (E2) came off the material list: volumes of substances of very high concern in HMS products are very low and enter upstream (page 62). The report expects no significant change to its business model or strategy, and says resilience is built into its risk process (page 62). The DMA will be reviewed again in 2026 after the Molex industrial communications acquisition at the end of 2025 (page 62).

Description of the processes to identify and assess material impacts, risks and opportunities

Reference: pages 59-61.

The DMA has four steps: understanding (business model and value chain mapping), identification (ESRS, EU Taxonomy, GHG Protocol and Responsible Minerals Initiative requirements, peer benchmarking, supplier assessments, audits, employee surveys, whistleblowing reports and stakeholder interviews), assessment (cross-functional workshops led by the Sustainability team) and review and approval (Group Management, then the Board).

Impact materiality uses EFRAG guidance: scale, scope and irremediability, plus likelihood for potential impacts. Financial materiality follows the group risk process (pages 129-132) on size of effect and likelihood. External advisors helped set the thresholds of the scoring model. IROs are rated over short (under 1 year), medium (1-5 years) and long (over 5 years) horizons (page 60).

Climate risks and opportunities come from a separate climate scenario analysis (pages 68-69). E2 pollution, E3 water and marine resources and E4 biodiversity were assessed as not material, based on life cycle assessment screenings and product composition analysis (page 59). Affected communities were not consulted. The DMA is reviewed each year, or sooner after events such as acquisitions (page 60).

Disclosure requirements in ESRS covered by the undertaking's sustainability statement

Reference: page 62; Appendix 2 (pages 112-113); Appendix 3 (pages 114-117).

Appendix 2 is the company's content index, with a page number for each disclosure requirement: ESRS 2 (BP-1 to IRO-2), E1-1 to E1-7, E5-1 to E5-5, the EU Taxonomy (pages 89-93), S1-1 to S1-6, S1-8, S1-9, S1-11, S1-13 and S1-14, S2-1 to S2-5, and G1-1, G1-3 and G1-4. E5-6 appears with "-" in place of a page number, and the index carries a "Phase-in" note in its additional information column (page 112). Appendix 3 lists datapoints from other EU legislation and marks each Material (with a page), Not material or Not applicable.

HMS says it applied phase-in provisions and chose not to report voluntary datapoints where data availability and quality are not yet sufficient (page 62). This is its first report under the ESRS; earlier sustainability reporting followed the GRI Standards (page 50). The numbering follows the 2023 ESRS.

Öhrlings PricewaterhouseCoopers AB gave limited assurance on the statement (pages 118-119).

Transition plan for climate change mitigation

Reference: pages 70-74 (index); plan on pages 71-74.

HMS targets net zero by 2050, in line with the Paris Agreement's 1.5 °C ambition, with targets approved by the SBTi in 2025. The plan is new and in early implementation, and the report says it is too early to measure its progress. Group Management approves it and the Global Sustainability department coordinates it (page 71).

Scope 1 and 2 (page 72): emissions are about 59% below the 2022 base year. Planned measures cut about 87% by 2030: electrification (fleet 100% electric by 2030; 10%, 157 tCO2e), fossil-free energy with 100% renewable electricity by 2030 (69%, 1,058 tCO2e) and biofuel heating at the York and Bilbao factories (8%, 121 tCO2e).

Scope 3 (pages 73-74): responsible sourcing (about 1%), climate-smart logistics (about 1%), sustainable product design (about 21%) and the global energy transition (about 23%, on the Stated Policies Scenario) give about 46% by 2030. A gap remains to the 2030 intensity target.

Locked-in emissions in own operations are not material; use-phase emissions depend on customers' energy (page 74). The needed resources are not expected to have a material effect on OpEx or CapEx (page 74).

Identification of climate-related risks and scenario analysis

Back-filled from ESRS 2 IRO-1 and the climate scenario analysis section (pages 59, 68-69), where this content is disclosed in the FY2025 report. This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

HMS ran a climate scenario analysis in 2025 and says it will review it regularly (page 68). Scenarios: IPCC SSP1-1.9 (low emissions, in line with net zero ambitions) and SSP5-8.5 (high emissions, no significant mitigation). Time frames: 2030, 2050 and 2100.

Physical risk: hazards were rising temperatures, heavy precipitation, flooding and sea-level rise. Production facilities were assessed with regional climate projections; sales offices were left out because their exposure is minimal. The material physical risks for the factories are precipitation, flooding, sea level rise and heat (page 68).

Transition risk: regulation, customer expectations, energy markets and technology trends. Scenario drivers included policy, carbon pricing, energy system change, technology adoption and market conditions (page 68). Page 69 sets out risks and opportunities by scenario with a time horizon for each.

The report gives no global average temperature figure for either scenario. It notes simplified assumptions and some data gaps (page 69).

Resilience in relation to climate change

Back-filled from ESRS 2 SBM-3 (page 62) and the climate scenario analysis (pages 68-69), where this content is disclosed in the FY2025 report. This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

HMS says resilience is built into its single risk management process, which it describes as letting the company handle challenges and keep operations running (page 62). For the supply chain it names alternative supplier sources, operations closer to its markets, capacity buffers, safety stocks for critical components and alternative suppliers. For the workforce it points to policies and processes for a safe, skilled and inclusive workplace. The resilience of the strategy and business model was a key part of the DMA, and the report expects no significant change to either (page 62).

The scenario matrix (page 69) says transition risks dominate up to 2030, physical risks grow towards 2050, and long-term effects call for major adaptation and investment in resilience. It lists weather-resistant technologies such as remote monitoring as an opportunity. The report gives no figure for the financial effect of the scenarios, and it names simplified assumptions and data gaps as limits (page 69).

Policies related to climate change mitigation and adaptation

Reference: page 74.

Three group-wide policies cover climate: the Environmental Policy, the Code of Conduct and the Supplier Code of Conduct. The Environmental Policy has three priority areas: climate, circularity and responsible value chain.

Under climate, HMS commits to cut its impact in line with the Paris Agreement and its SBTi-approved targets, through electrification, energy efficiency and more renewable energy, and to develop products that help customers reduce their own impact. Adaptation is handled by identifying physical risks such as extreme weather and value chain disruption and strengthening facilities, IT environments and logistics flows.

A Travel Policy asks staff to minimize travel, choose digital meetings first and pick trains or electric vehicles over air travel where feasible. Appendix 1 (pages 110-111) is the policy matrix, with the scope, owner and approval of each policy.

Actions and resources in relation to climate change policies

Reference: page 75.

Long-term actions and their financial effects sit in E1-1. This section reports what changed in 2025.

• Scope 1: a global vehicle policy requires all new leased vehicles to be electric. Electric vehicles were 71% of the fleet in 2025 (57% in 2024), with 100% targeted by 2030.
• Scope 2: renewable electricity rose from 86% to 89% through certificates, supplier agreements and solar panels.
• Scope 3: a supplier assessment tool went live (see S2-4); work began on recyclable or certified packaging; direct deliveries from the China logistics hub to customers in Asia shortened transport distances; and Sustainable Aviation Fuel cut upstream air freight emissions, where HMS pays for transport, by about 5%.
• Data and training: a system tool for emissions monitoring, staff training and unified reporting guidelines are in place, and own operations are now monitored quarterly.

HMS says the 2025 measures needed no significant CapEx or OpEx.

Targets related to climate change mitigation and adaptation

Reference: page 76.

HMS commits to net zero across its value chain by 2050, validated by the SBTi in 2025 and adopted by Group Management and the Board.

Long term (2022 base year): absolute Scope 1 and 2 emissions down 90%; Scope 3 emissions intensity down 97% per MSEK of gross profit.

2030: Scope 1 and 2 down 55.84%; Scope 3 intensity down 51.60%, covering purchased goods and services, upstream transport and distribution, business travel and use of sold products. Targets include land-related emissions and removals from bioenergy feedstocks.

Progress against 2022: Scope 1 and 2 are down 59% (1,534 to 633 tCO2e), which is already below the 2030 target level of 677 tCO2e. Scope 3 intensity is down 5%. Scope 3 is almost 99.5% of the total footprint, mainly use of sold products and purchased goods and services.

Base-year emissions are recalculated when changes exceed 5% of the base year.

Energy consumption and mix

Reference: pages 77-78.

Own-operations energy use was 6,289 MWh in 2025 (6,545 MWh in 2024). Renewable sources supplied 4,012 MWh, or 64% (63% in 2024): 3,783 MWh purchased and 229 MWh self-generated. Fossil sources were 1,520 MWh (24%): 670 MWh of crude oil and petroleum products, 93 MWh of natural gas and 757 MWh of purchased electricity, heat, steam and cooling from fossil sources. Nuclear sources were 757 MWh (12%). Total non-renewable energy was 2,277 MWh (36%). Renewable electricity was 89% of electricity use.

Purchased energy counts as renewable only with guarantees of origin or energy certificates. Where that cannot be shown, HMS uses the national mix and splits it 50/50 between fossil and nuclear.

Energy intensity for high climate impact sectors was 2.2 MWh per net sales MSEK in 2025 (1.9 in 2024). Part of the product range is made by contract manufacturers whose energy use is not in the figure (page 78).

Gross Scopes 1, 2, 3 and Total GHG emissions

Reference: pages 78-82.

Gross emissions in 2025, tCO2e (2024 in brackets), GHG Protocol, operational control:

• Scope 1: 228 (294)
• Scope 2 location-based: 1,148 (1,264); market-based: 405 (620)
• Scope 1 and 2 market-based: 633 (914), down 31% (2022 base year: 1,534)
• Scope 3: 118,750 (104,918), up 13%
• Total market-based: 119,383 (105,831); location-based: 120,126 (106,476)

The largest Scope 3 categories were use of sold products at 88,032 (68,008) and purchased goods and services at 21,950 (29,647). Categories 8, 10, 13 and 14 are assessed as not relevant (page 80). Primary supplier data covers 81% of categories 4 and 9, about 2% of Scope 3. Scope 3 intensity was 33 tCO2e per net sales MSEK (29).

Method (page 81): Scope 1 now includes refrigerants, using a 5% leakage estimate. Scope 3 now covers Red Lion Controls and PEAK-System Technik. The auditor's limited assurance applies, and the SBTi has validated the categories in the target.

GHG removals and GHG mitigation projects financed through carbon credits

Reference: page 82.

HMS reports 10 tCO2e removed through carbon offsetting, using carbon credits bought from one of its transport suppliers. It says it chose to stop offsetting transport emissions with credits and to pay for direct reductions through sustainable fuels instead.

In 2025, investment in Sustainable Aviation Fuel avoided 73 tCO2e, about 5% of upstream air transport emissions where HMS pays the freight.

Carbon credits may still be considered for areas where direct cuts are harder, and the company will judge the need and fit as it goes. Appendix 3 lists the E1-7 datapoint as Material with a page reference of 82 (page 115).

Policies related to resource use and circular economy

Reference: page 83.

The policy framework covers material selection, recycled and recyclable content, waste management, resource-efficient product design, packaging, product quality and product lifetime. It adds requirements for responsible sourcing and material provenance through the Responsible Sourcing Framework, and guidelines to minimize hazardous substances.

Circularity principles are meant to reach product development through lower material use, better reparability and better recyclability, while weighing resource scarcity, price swings, regulation, waste streams and supplier dependencies. Indicators on resource and material use, waste, recycling rates and product design are reported to management and the Board.

The three material items listed under E5 (page 83): two actual negative impacts (high use of virgin raw materials; materials lost at end of life in product lines with little circularity) and one financial risk (electronic waste, with high regulatory and financial exposure). Appendix 1 (pages 110-111) is the policy matrix.

Actions and resources related to resource use and circular economy

Reference: page 84.

HMS names the material composition of its products as a key area, in particular for resource inflows and outflows and a higher share of recycled content. It also works on product quality, repair and refurbishment, and less scrap and waste in its own operations. The planned design work covers material selection (more recycled and recyclable material, fewer hazardous substances), resource-efficient design (lower weight, fewer components), designing for long life, repair, upgrades and recycling, and lower energy use in the use phase.

The report calls this work early-stage: processes and ways of working are still being set up. In 2023 HMS ran life cycle assessment screenings on representative product lines, which showed material content, confirmed long product lifetimes and pointed to upstream impacts from mining of metals and minerals. A packaging project aims to raise recycled content in packaging. Material weight charts are shown for two products (Anybus Communicator and Ewon Cosy+). The Responsible Sourcing Framework supports the work (see S2-4).

Targets related to resource use and circular economy

Reference: pages 85-86.

• Overall: apply sustainable design principles to more than 80% of the active product portfolio by 2030, covering all newly developed hardware. Group Management adopted it. The report says no framework or action plan exists yet and no data is monitored.
• Packaging (base year 2025): by 2030 all purchased packaging is at least 90% recycled content or from certified sources (FSC, PEFC, SFI). In 2025, 34% met the standard.
• Repair: by 2030, 60% of returned products repaired. The 2025 base-year figure is 64%. Returns handled by distributors are excluded.
• Waste: no target. The scrap rate is only partly monitored and a target will come later (page 86).

ISO certification: 100% of manufacturing sites were certified to ISO 9001 and 75% to ISO 14001 in 2025, with 100% targeted for 2030 (page 85).

Resource inflows

Reference: pages 86-87.

HMS tracks inflows by weight from procurement data in twelve material groups, with small groups combined into an electronics group (antennas, cables, components, circuit boards, SIM cards and others). It applies the cascade principle to biobased materials.

Inflows in 2025 were 1,496 metric tons: metals 523, electrical items 560, plastics 145, batteries 0.1 and paper and packaging 268. Secondary materials were 20 tons (1.3%). Reused or recycled components and secondary intermediate products were zero. Sustainably sourced biological materials were 2 tons (0.1%).

Packaging counts as recycled above 90% recycled content or with FSC or PEFC certification. For all other materials recycled content is not tracked and is assumed to be zero. Two production sites with 88% of purchases are monitored in detail; other sites are estimated from purchasing costs and production volumes. The report calls inflow data partly estimated (pages 50, 87).

Resource outflows

Reference: pages 87-88.

HMS products are electronic modules that join hardware and software for data transfer in industrial and building automation. The target product lifetime is 10 years, backed by hardware design, upgradable software and long-term support. The report says no industry benchmark for durability exists.

A returns process supports repair, reuse and end-of-life handling. Returned units are sorted as "failed during use" or "defective on arrival" and analyzed for root causes. An internal non-conformance process repairs defective circuit boards before shipment instead of scrapping them.

Recycled content is measured for paper packaging only: 22 tons of 64 tons of packaging in 2025 (34%), from supplier estimates. For products the recycled share is reported as 0 of 180 tons because no verified data exists and no date is set for tracking it. HMS plans formal guidelines to raise recycled content. Waste data is under E5-5-Waste.

Waste

Reference: page 88.

Waste streams HMS monitors: electronic waste, hazardous waste (production chemicals, batteries and other by-products), metal, plastic, paper and cardboard, and wood (pallets). Data comes from waste management partners and covers production sites; sales offices are excluded.

Waste in own operations, metric tons (2024 in brackets):

• Total: 150 (188)
• Hazardous: 2 (8), all recycled
• Non-hazardous: 149 (181)
• Recycled: 89 (121)
• Non-recycled: 61 (67), or 41% of total (36%), all treated by combustion
• Landfill: 0; radioactive waste: 0

Non-hazardous waste: recycling 87, preparation for reuse 1, combustion 61.

A global IT equipment take-back program with Atea reuses or recycles devices; HMS says it avoided about 6.3 tCO2e in 2025, calculated to GHG Protocol Scope 3 guidance with EPA factors and a method built with IVL Swedish Environmental Research Institute.

Policies related to own workforce

Reference: page 95.

The Code of Conduct and the Health & Safety Policy set expectations for ethical conduct, respect for human rights, non-discrimination and safe working conditions in all operations. The report says they follow the UN Global Compact, the Universal Declaration of Human Rights and ILO conventions. HMS has been part of the UN Global Compact since 2021.

The global Health & Safety Policy has a zero-incident vision and a "See it, stop it" rule that asks everyone to act. It sets clear roles, emergency procedures and learning from incidents, and it applies to all employees. All employees and non-employees are expected to follow the commitments, which are communicated through training, onboarding and internal communications. The policies prohibit discrimination, forced labor, child labor and harassment, and they are public.

Appendix 1 (pages 110-111) lists the policies with owners and approvers.

Taking action on material impacts on own workforce

Reference: pages 96-97.

• Values: Heart, Mind & Soul was relaunched in 2025 and built into the new global performance management and talent process and into onboarding.
• Systems: the Heartbeat survey started in 2025, and a Human Resources Information System (HRIS) went live to cover master data, onboarding, performance and talent management and job profiles. A learning management system is planned.
• Safety and well-being: four pillars (competence, communication, risk management, safety culture), safety committees, regular inspections and an occupational health and safety tool (IA). A digital health platform launched in Sweden in 2025. The work-life balance score rose to 75% from 71%.
• Diversity: work to raise the share of women in leadership, plus volunteer time during working hours with the WOW Foundation's OneGoal program for migrant women.
• Training: a global onboarding process, a global talent and performance process and a global job mapping exercise. Full HRIS integration of job profiles is planned for Q1 2026, and a global learning management system by 2030.

HMS says the action plan needs no significant OpEx or CapEx.

Targets related to own workforce

Reference: page 97.

Targets follow the 2030 strategy and are tracked centrally:

Both indexes come from an anonymous survey run twice a year by an external provider. Female manager data comes from HRIS. The targets were set in dialogue with employees and management.

The report says it exceeded its target for female managers. The table shows 25% against a target above 35%, and SBM-1 gives the goal as at least 30% (page 56), so the statements conflict.

Characteristics of the undertaking's employees

Reference: pages 97-98.

HMS had 1,134 employees (headcount) at 31 December 2025: 360 women, 773 men and 1 other. Of these, 1,098 were permanent, 34 temporary and 2 on non-guaranteed hours; 1,049 worked full time and 85 part time.

By region: Europe 726, North America 290, Asia 113 and Oceania 5. The largest countries are the United States (287), Sweden (245), Germany (212), Spain (111) and Belgium (72).

Employee turnover was 11% in 2025, with 122 employees leaving. Turnover is all terminations divided by the average workforce. Data comes from the HRIS for all sites, with no assumptions, as headcount including permanent and temporary employees.

Collective bargaining coverage and social dialogue

Reference: page 98.

All employees have the right to join a trade union, and no one may be treated worse for using it. The principle is also in the Supplier Code of Conduct.

Under the ESRS transitional provisions, HMS does not report collective bargaining and social dialogue for countries outside the EEA. For the EEA it reports coverage for countries where it has more than 50 employees and where they are more than 10% of the workforce, in percentage bands. The tables list Belgium, France, Italy, the Netherlands, Romania, Spain, Sweden and Germany. Information comes from HR managers in each country and is consolidated at group level.

BP-2 lists collective bargaining agreements among the items HMS says it temporarily omitted under the ESRS quick-fix delegated act (page 50).

Diversity metrics

Reference: page 99.

Top management is the Group Executive Leadership Team: 6 people, 1 woman (17%) and 5 men (83%), unchanged from 2024.

Managers: 43 women (25%) and 130 men (75%), compared with 46 women (27%) and 123 men (73%) in 2024.

Age: under 30, 166 employees (15%); 30-50, 628 (55%); over 50, 340 (30%). In 2024 the shares were 14%, 57% and 29%.

Figures are headcount at 31 December 2025, taken from the HRIS without assumptions. The report points to the governance report (pages 44-45) for the members of the leadership team.

Social protection

Reference: page 99.

HMS offers benefits that add to national systems, so that employees have social protection when income stops because of illness, unemployment, work-related injury, acquired disability, parental leave or retirement. The benefits named are health insurance, paid parental leave and bereavement leave, among others.

HR managers at each site oversee local social protection measures, and the information is consolidated centrally. The statement gives no country-by-country list of benefits or coverage rates.

Training and skills development metrics

Reference: page 99.

Training needs are reviewed once a year for each employee. HR drives the overall competence work and individual training follows performance reviews.

Share of employees in regular performance and career development reviews: 96% in 2025 (83% in 2024); 91% of women and 98% of men. Local HR teams validate participation and central HR consolidates it. Follow-up is largely manual today and is planned to move into the HRIS.

Average training hours per employee are not reported (shown as "n.m.", not measured), under the ESRS transitional provisions. A global learning management system is planned to give fuller training data in later years. BP-2 lists training and skills development among the items HMS says it temporarily omitted under the quick-fix delegated act (page 50).

Health and safety metrics

Reference: page 100.

HMS reports zero recordable work-related accidents (LTI/LTA), a zero accident rate per million hours worked, zero cases of recordable work-related ill health, zero days lost to work-related injuries and ill health, and zero fatalities.

Coverage: 55% of employees are covered by a structured occupational health and safety management system, with 100% coverage of all production sites. Monitoring follows ISO 45001 and national law. Office roles are treated as low risk. Each production site runs safety inspections and chemical assessments.

The report also tracks minor incidents, near misses and risk observations. Sickness absence monitoring is limited by employee privacy rules. There is no central monitoring of individuals working on assignment for HMS but employed by outside partners, and their data is not reported.

Policies related to value chain workers

Reference: page 101.

Group-wide policies approved by Group Management follow the UN Guiding Principles on Business and Human Rights, the ILO Core Conventions and the OECD Guidelines for Multinational Enterprises. The Supplier Code of Conduct applies to all suppliers and business partners and asks them to respect human rights, provide fair working conditions and engage with their own employees, unions and communities. Violations go through a formal non-conformance process with corrective actions, follow-up and, where needed, remediation or ending the relationship.

A Conflict Minerals Policy rests on a due diligence process that follows the OECD Due Diligence Guidance for minerals from conflict-affected and high-risk areas. Both policies sit in the Responsible Sourcing Framework (S2-4). They are shared through supplier onboarding and training and are published on the HMS website.

The four S2 items in the SBM-3 table cover labor rights, treatment of workers, living wages and fair hours, and health and safety (page 101).

Taking action on material impacts on value chain workers

Reference: pages 102-104.

HMS reports no severe human rights issues or incidents in the upstream or downstream value chain in 2025 (page 102).

The Responsible Sourcing Framework has four pillars: expectations (Supplier Code of Conduct), supplier qualification (self-assessment), follow-up (supplier evaluation, internal risk assessment, audits) and corrective actions. It covers over 90% of procurement of materials used in production. A Human Rights Due Diligence form was added in 2025.

Conflict minerals: manufacturers above a defined spend threshold send a Conflict Minerals Reporting Template. In 2025 HMS received information from 82% of the defined scope, and 17% of the assessed scope was rated high risk and followed up. HMS joined the Responsible Minerals Initiative and invested in an external supplier assessment tool. Red Lion Controls and PEAK-System Technik joined the program. Seven on-site audits were done in 2025 (page 104).

The plan needs no significant OpEx or CapEx (page 104).

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

Reference: pages 104-105.

Three 2030 targets cover strategic suppliers and preferred manufacturers (2025 baseline in brackets):

• evaluated on sustainability: 100% (50%)
• meeting sustainability criteria: 100% (48%); the 50% that have not responded count as not meeting the criteria
• audits carried out for those not meeting the criteria: 100% (0%); no audits of high-risk suppliers took place in 2025

By the end of 2025, 73% of suppliers had signed the Supplier Code of Conduct and 50% had completed the assessment on the new platform. Of those assessed, 96% met the criteria. Targets were built from supplier self-assessments and audits. HMS does not consult workers directly.

From 2026 the focus moves from coverage to supplier performance, with a "medium high" risk class added. Remote document reviews start in 2026-2027.

Business conduct policies and corporate culture

Reference: page 107.

The culture rests on the values Heart, Mind & Soul, written into the Group Code of Conduct and backed by the Anti-Corruption Policy, which sets zero tolerance for bribery and corruption. HMS relaunched the values in 2025 and presented them to all managers at the Leadership Summit. The Anti-Corruption Policy was developed in 2025 and approved by the Board.

Speak up: concerns go to the manager or to an external, independent whistleblowing service that takes anonymous or named reports, with confidentiality and protection from retaliation. Suspected irregularities are investigated by clear, impartial procedures.

Business conduct training is mandatory from the first day, including for the Executive Team. Roles with higher corruption exposure, such as strategic decisions, finance, sales channels and outside contacts, are rated high, medium or low risk, and high-risk roles get more training.

Appendix 3 marks the G1-1 datapoints on the UN Convention against Corruption and whistleblower protection as "Not material" (page 117).

Targets related to business conduct

Back-filled from the G1-4 section, where the targets are stated. G1-3 became a standalone disclosure requirement only in the 2025/2026 ESRS, and this report was prepared under the 2023 ESRS.

HMS says it has set permanent, company-wide objectives for ethics and anti-corruption that cover all employees (page 109). The G1-4 table shows each target next to the 2025 result:

• employees completing Code of Conduct training: target 100%, 2025 result 88% (90% in 2024)
• employees completing anti-corruption training: target 100%, 2025 result 91%
• suppliers and manufacturers that signed or accepted the Supplier Code of Conduct: target 100%, 2025 result 73% (86% in 2024)

The anti-corruption training target applies to employees in defined risk categories. The Code of Conduct training target applies to all employees. 113 employees in risk-related functions were trained in 2025, 17 of them in management and supervisory bodies (page 109).

Incidents of corruption or bribery

Reference: page 109.

HMS reports zero confirmed incidents of corruption or bribery in 2025 and in 2024, zero convictions under anti-corruption and anti-bribery laws and zero fines (SEK 0).

Training in 2025: Code of Conduct 88% of employees (90% in 2024), anti-corruption training 91% (not measured in 2024), 113 employees trained in risk-related functions, including 17 from management and supervisory bodies. Suppliers and manufacturers that signed or accepted the Supplier Code of Conduct: 73% (86% in 2024).

The section also reports 3,767 confirmed information security incidents in 2025. Two were major, and neither caused harm or data loss. The report says the recording process became more detailed in 2025, so the figure cannot be compared with earlier years and none is given for 2024.

Data on confirmed cases comes from the whistleblowing system, an external tool. Appendix 3 marks fines under G1-4 paragraph 24(a) and anti-corruption standards under 24(b) as Material (page 117).