ICA Gruppen

The role of the administrative, management and supervisory bodies

Board composition and governance structure

The excerpts provided do not contain detailed disclosure on the composition of ICA Gruppen's administrative, management and supervisory bodies in terms of executive vs non-executive members, percentage of independent directors, or gender split. The annual report references a "Board of Directors" section on page 178 and "ICA Management Team" on page 180, but these sections are not included in the excerpts provided.

Sustainability oversight and committees

The excerpts reference that "ICA Gruppen works at the Group level to systematically identify and manage the risks associated with its operations. The risk management process is an integrated part of the strategy and planning work of each unit. Risks are consolidated, and risk management is reported to and monitored by the ICA Management Team (IMT) and the Board of Directors."

No specific sustainability, ESG, CSR, risk or audit committees with sustainability oversight are described in the excerpts provided.

Board expertise and training

The excerpts do not contain information on sustainability-related expertise of board members, skills matrices, training programmes, or external advisory arrangements.

Frequency of sustainability discussions

The excerpts do not specify the frequency of sustainability discussions at board level.

Specific sustainability roles

No specific roles such as Chief Sustainability Officer or Sustainability Champion are identified in the excerpts provided.

Independence and effectiveness arrangements

The excerpts reference a "Corporate Governance Report" on pages 172-184, including sections on "ICA Gruppen's model for internal control" (page 173) and "The Board's report on internal control over financial reporting" (page 184), but these sections are not included in the excerpts provided.

The excerpts note: "In accordance with Chapter 6 Section 8 and Chapter 6 Section 11 of the Annual Accounts Act, ICA Gruppen AB (publ) has chosen to prepare the statutory Sustainability Report and Corporate Governance Report as separate documents to the Annual Report required by law."

Science-based climate targets governance

The excerpts indicate that ICA Gruppen became "one of the first grocery retail businesses in the Nordics to have its science-based net zero climate targets approved by the Science Based Targets initiative (SBTi)" in 2024. The targets "apply to ICA Gruppen as a whole and cover the climate impact of all of the companies in the Group as well as their value chains," suggesting board-level oversight of these commitments.

Risk management oversight

The excerpts state that the Board of Directors receives reporting on risk management: "Risks are consolidated, and risk management is reported to and monitored by the ICA Management Team (IMT) and the Board of Directors." More detailed information is referenced as being "provided on pages 185–190 of this document."

Integration of sustainability-related performance in incentive schemes

Overview

ICA Gruppen's long-term bonus programmes include performance requirements linked to the Group's climate targets.

Roles covered

The incentive schemes apply to participants in ICA Gruppen's long-term bonus programmes. The terms and conditions of the incentive schemes are approved by the Board of Directors.

Sustainability KPIs tied to remuneration

The performance requirements linked to the reduction of greenhouse gases in ICA Gruppen's value chain pertain to emissions from ICA Gruppen's own operations, i.e., emissions from:

• Offices
• Warehouses
• Stores
• Goods transport
• Business travel

Weighting

The performance requirements linked to the reduction of greenhouse gases comprise 15% of the total long-term bonus programme.

Performance period and structure

For the programme for 2024, the targets pertain to emissions from ICA Gruppen's own operations.

Type of incentive

The sustainability-related performance requirements are included in the long-term bonus programmes.

Governance

The terms and conditions of the incentive schemes are approved by the Board of Directors.

Strategy, business model and value chain

Description of products/services and key markets

ICA Gruppen operates in a number of areas important to people's everyday lives, including groceries, pharmacies, banking and insurance. The core business is grocery retail. The other operations support the core business, but they may also be developed further to embrace new business opportunities and themselves contribute to profitability and continued growth.

ICA Sweden: With almost 1,300 stores, ICA Sweden is the leading grocery retail actor in Sweden. The independent ICA retailers own and operate their own stores, but have agreements with ICA Sweden in areas such as coordinated sourcing, logistics, market communication and store development.

Rimi Baltic: Retail operations in the Baltic countries (Estonia, Latvia and Lithuania).

Apotek Hjärtat: With almost 400 pharmacies, extensive online operations and a market share of over 32%, Apotek Hjärtat is the largest company in the Swedish pharmacy market. Pharmacy operations complement grocery retail and play an important role in ICA Gruppen's efforts to achieve a leading position in health.

ICA Real Estate: ICA Real Estate segment is a real estate business focusing on properties located in Sweden.

ICA Bank: Banking operations, including insurance operations.

Significant groups of products/services and their share of revenue

ICA Sweden's revenue in 2024:

• Wholesale: 83%
• Store subsidiaries and non-food sales at Maxi ICA Stormarknad: 9%
• Other sales/revenue: 8%

Apotek Hjärtat 2024 (SEK million):

• Prescription drugs: 16,000
• OTC drugs: 1,811
• Other products and services: 3,043

Significant markets/geographies

ICA Gruppen conducts operations in all of the Group's areas in Sweden, in grocery retail in the three Baltic countries (Estonia, Latvia, Lithuania) and has a purchasing office in Asia.

Revenue by geography (SEK million):

Property, plant and equipment and intangible assets by geography (SEK million):

Number of employees by geography

Average number of employees 2024:

• ICA Sweden: 8,997
• Rimi Baltic: 9,821
• Apotek Hjärtat: 3,299
• ICA Real Estate: 85
• ICA Bank: 508
• Other: 191
• Total: 22,901

Employees in ICA Gruppen are located primarily in Sweden and the Baltic countries, with the majority of employees located in markets with well-functioning social safety nets and regulated working conditions.

Total revenue by significant ESRS sustainability matter

Not explicitly disclosed by ESRS sustainability matter.

Sustainability-related goals embedded in the business model

Vision: Making every day a little easier for customers.

Group strategy through 2030 sets the ambition to make every day easier for customers to:

• Find personalised solutions
• Save time and energy
• Make sustainable choices
• Get value for money

Within sustainable choices, ICA Gruppen's ambition is to:

• Be the recognised industry leader in all markets and to drive development towards reduced climate impact and a more modern and sustainable food system
• Be the best in markets at helping and inspiring customers to make sustainable choices

ICA Gruppen's science-based climate targets:

• Reach net zero GHG emissions across the entire value chain by 2050
• Short-term targets for 2030:
  • Energy and industry (Non-FLAG): In Scope 1 and 2, reduce absolute GHG emissions 42% by 2030, compared with base year 2022. In Scope 3, reduce absolute GHG emissions 42% within the same timeframe.
  • Forest, Land and Agriculture (FLAG): In Scope 3 FLAG, reduce absolute GHG emissions 30.3% by 2030, compared with base year 2022. Meet anti-deforestation requirements for all goods that can be linked to deforestation by no later than December 2025.
• Long-term targets for 2050:
  • Energy and industry (Non-FLAG): In Scope 1 and 2, reduce absolute GHG emissions 90% by 2050, compared with base year 2022. In Scope 3, reduce absolute GHG emissions 90% within the same timeframe.
  • Forest, Land and Agriculture (FLAG): In Scope 3 FLAG, reduce absolute GHG emissions 72% by 2050, compared with base year 2022.

Food waste target: Halve food waste from warehouses and stores by 2025 compared with 2016. In 2024, food waste decreased 30% relative to base year 2016.

Description of upstream and downstream value chain

ICA Gruppen has several, diversified value chains. Upstream, all of these chains are global, but are concentrated downstream in the Group's home markets in Sweden and the Baltics.

Upstream value chain

Banking & Insurance:

• IT & Treasury
• Insurance-related service providers

Wholesale, Grocery Retail and Pharmacy Operations:

• Raw material extraction & farming
• Processing & manufacturing
• Finished production assembly
• Sourcing & concept development

Properties & Property Development:

• Construction & new building
• Land & property transactions

Key inputs upstream:

• The most central component of ICA Gruppen's upstream value chain is based on the production of the goods purchased for sale in the grocery retail and pharmacy operations.
• The breadth of products and raw materials in the assortment, combined with complex and often global supply chains, results in limited direct control for the Group.
• Setting and monitoring relevant supplier and product requirements is central to ICA Gruppen's sustainability work, as is focus on increased traceability and transparency in the supply chain.

Own operations

Banking & Insurance: Bank services, Insurance services

Wholesale, Grocery Retail and Pharmacy Operations: Concept development, Sales & customer support, Wholesale, grocery retail & pharmacy operations

Properties & Property Development: Property management, renovation & reconstruction

Key activities in own operations:

• Resource use for the operation of offices, warehouses, stores (mainly in the Baltics) and pharmacies comprises a key issue.
• Goods transport between warehouses and stores.
• Reducing food waste.
• The pharmacy operations in Sweden and the grocery retail business conducted through Rimi in Estonia, Latvia and Lithuania are both wholly owned by ICA Gruppen.
• Most ICA stores in Sweden are owned by independent ICA retailers.

Downstream value chain

Banking & Insurance: Financing & investments

Wholesale, Grocery Retail and Pharmacy Operations: Consumption and customer use, End of life

Properties & Property Development: Tenants

Key activities downstream:

• Material matters include stores' work with climate and food waste.
• Consumers' choice of goods.
• The role of stores in the local community.

Key outputs

Products and services:

• Groceries through almost 1,300 ICA stores in Sweden
• Grocery retail through Rimi stores in Estonia, Latvia and Lithuania
• Pharmacy products and services through almost 400 Apotek Hjärtat pharmacies
• Banking and insurance services
• Real estate services

Sustainability outcomes:

• Emissions from own operations (Scope 1 and 2): 82,441 tonnes CO2e in 2024 (0.52 tonnes CO2e/SEK m turnover)
• Climate impact from food sold in ICA stores: 1.87 tonnes CO2e/kg of food sold in 2024
• Food waste in warehouses and stores: 1.27% by weight in 2024
• Food waste reduction relative to base year 2016: -30% in 2024

Social impact:

• Presence in 286 out of 290 municipalities
• Jobs and tax revenue
• Robust rural communities
• Infrastructure for the supply of groceries and medicines as well as banking and insurance services
• Coordination of environmental, health and quality initiatives
• Grants for areas including research, youth sports and support activities such as the NGO Mind

Business model description

ICA Gruppen's business model is built on collaboration between:

Free retailers in cooperation: The combination of individual drive and collective strength forms the basis of ICA Gruppen's operations (the ICA Idea).

Coordination between businesses:

• Offering: Coordination between the businesses makes it possible to provide strong, relevant customer offerings.
• Customer insights: Access to data-driven customer insights from loyalty programmes provides valuable information on preferences and behaviours.
• Marketplaces: Co-location strengthens local marketplaces.
• Online: Coordinated online solutions and development of food ecosystems.
• Investments: Coordinating investments benefits all operations and promotes financial efficiency.
• Sourcing: Coordinated sourcing ensures good prices and the right quality. It also enables the Group to have coordinated social and environmental requirements for suppliers.

Advantages for stakeholders:

Customers:

• Making every day a little easier
• Attractive and relevant offerings adapted locally based on the ICA retailer's entrepreneurship
• Co-locating operations and coordinated online solutions
• Integrated loyalty programmes (Stammis) covering all phases of life
• Quality and value for money

The businesses:

• Strong brand loyalty
• Opportunities for synergies and economies of scale
• Making marketplaces more attractive through co-location
• Access to customer insights

ICA retailers:

• Strong brands
• Good prices and the right quality
• Broad assortment
• Structures for e-commerce
• Less administrative burden
• Financing options
• Stable supply chain

Employees:

• Helps make life easier and more sustainable
• Exciting opportunities to move between different types of operations within the same group
• An entrepreneurial culture with great opportunities to make a difference

Society in general:

• Coordinated environmental, health and quality initiatives
• Grants for research, youth sports and support activities
• Jobs and tax revenue
• Robust rural communities
• Presence in 286 out of 290 municipalities
• Infrastructure for the supply of groceries and medicines as well as banking and insurance services

Revenue and earnings model

ICA Sweden's revenue that contributes to profits:

• Revenue from wholesale sales
• Sales in stores owned by ICA Sweden
• ICA Sweden's non-food sales in Maxi ICA Stormarknad hypermarkets
• Revenue from add-on services in competitive environments
• Performance-based revenue in the form of royalties and profit shares

ICA Sweden's revenue that provides cost coverage:

• Revenue from ICA subscriptions (fees from ICA retailers to finance the joint organisation)
• Compensation for logistics, infrastructure
• Add-on services not exposed to competition

ICA Sweden's earnings come largely from wholesale sales. The size of the mark-up is set out in an agreement with ICA-handlarnas Förbund. Other compensation with a direct impact on profits includes royalties and profit shares from the stores. Profits are also generated from non-food products, store subsidiaries and add-on services.

Interests and views of stakeholders

Obtaining the views both of internal and of external actors' on ICA Gruppen's operations is an important aspect of ongoing efforts to develop ICA Gruppen. The goal is to balance various interests, expectations and wishes through constant dialogue.

Stakeholder engagement in due diligence process

Involving stakeholders is central to all stages of the due diligence process:

• Step 1: Understand our stakeholders' expectations of ICA Gruppen in terms of governance (policies, strategies, requirements, etc.).
• Step 2: Receive feedback and input to identify and better understand ICA Gruppen's impact on people and the environment, and to validate impact assessment.
• Step 3: Receive input on actions that can effectively help with due diligence, thereby helping us prevent, avoid and stop negative impacts.
• Step 4: Have the opportunity to follow up, together with stakeholders, whether our actions are effective and improve the lot of people and the environment.
• Step 5: Understand what kind of information stakeholders wish to receive and in which areas they want increased transparency.
• Step 6: Gain insight into the type of actions and recompense needed to compensate rights holders who have been adversely impacted.

Key stakeholder groups and engagement

Integration of stakeholder views into strategy

Both ICA Gruppen and the individual OpCos pursue ongoing dialogues with their most important stakeholders. Moreover, in cases where a need has been identified to create a deeper understanding of the company's impact in any area, separate dialogues are conducted in conjunction with each company's materiality assessment.

The findings of the stakeholder dialogues are taken into consideration in ICA Gruppen's assessment of material sustainability matters as well as in the management of identified impacts, risks and opportunities. Stakeholder perspectives and views are shared with ICA Gruppen's administrative, management and supervisory bodies as part of ICA Gruppen's materiality assessment.

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

Full list of material IROs

ICA Gruppen has conducted a double materiality assessment encompassing both impact materiality (actual and potential impacts on people and the environment) and financial materiality (risks and opportunities). The assessment covers ICA Gruppen's own operations as well as upstream and downstream value chains.

Materiality assessment outcome ICA Gruppen:

Neg. = potential/actual negative impact in the value chain or risk for ICA Gruppen Pos. = potential/actual positive impact in the value chain or opportunity for ICA Gruppen

Description of material IROs by topic and value chain location

E1: Climate change

Upstream:

• Impact: Emissions from agriculture (e.g. methane gas from ruminants) and extraction of raw materials (e.g. fertilisers and plastics). Emissions in the manufacture of building materials (e.g. steel and cement), pharmaceuticals and non- and nearfood products. Emissions from goods transports, incl. transport to warehouses.
• Risks/opportunities: Impact of extreme weather conditions and reduced harvests on primary production. Disruption to logistics chains due to extreme weather and floods.

Own operations:

• Impact: Emissions from goods transports between warehouses and stores. Emissions from the use of energy and refrigerants in offices, warehouses, and stores/pharmacies. Emissions from business travel.
• Risks/opportunities: Increased fuel costs. Access to renewable energy for new establishments. Disruption to logistics chains due to extreme weather and floods.

Downstream:

• Impact: Climate impact from customer travel to stores, and last mile deliveries to customers. Emissions from the use of energy and refrigerants in retailer-owned stores. Emissions from the use of products.

E2: Pollution

Upstream:

• Impact: Pollution and impacts on nature due to the use of pesticides and fertilizers. Release of chemicals (e.g. PFAS) in the production of non-food and near-food products, and pollution from pharmaceutical production. Pollution from the production of construction materials, e.g. steel.

Own operations:

• Impact: Pollution from synthetic refrigerants used in ICA Gruppen's warehouses and wholly owned stores.
• Risks/opportunities: Increased costs and resources to ensure compliance with product traceability and transparency regulations.

Downstream:

• Impact: Pollution from synthetic refrigerants used in retailer-owned stores. Spreading of pharmaceutical residues and chemicals from e.g. hygiene, cleaning and laundry products to water and nature. Positive impact through advice on pharmaceutical use.

E3: Water and marine resources

Upstream:

• Impact: Water consumption in agriculture and food production, with bigger impact from certain raw materials (e.g. cotton and avocado), and in certain regions. Risk for overfishing and unsustainable exploitation of fish stocks.
• Risks/opportunities: Risk for lack of supply of seafood.

Downstream:

• Impact: Spreading of pharmaceutical residues to water and nature.

E4: Biodiversity and ecosystems

Upstream:

• Impact: Biodiversity loss and impacts on nature due to, e.g. pesticide use, eutrophication, water consumption, overfishing and deforestation. Loss of biodiversity and other negative impacts on nature, such as the release of chemicals in the production of non-food and near-food products, and pollution from pharmaceutical production.
• Risks/opportunities: Risk for disruption in the production of raw materials and shortages of goods due to challenges related to ecosystem services such as soil fertility, pollination, viable fish stocks and water.

Own operations:

• Impact: Impact of property development on local nature values.

Downstream:

• Impact: Spreading of pharmaceutical residues to water and nature.

E5: Resource use and circular economy

Upstream:

• Impact: Food waste due to e.g. quality issues, inferior processing/storage or damage during transport. Resource use for the production of e.g. construction materials, packaging, and non-food products (e.g. electronics, textiles and toys).

Own operations:

• Impact: Food waste from ICA Gruppen's warehouses and stores.
• Risks/opportunities: Increased costs and resources to ensure compliance with product traceability and transparency regulations. Opportunity to reduce costs by reducing waste in warehouses and stores.

Downstream:

• Impact: Food waste from retailer owned stores, and household food waste. Waste from e.g. packaging, used non-food products and construction waste.

S1: Own workforce

Own operations:

• Impact: Violence and harassment in stores and pharmacies. Employee health, safety and work-life balance.
• Risks/opportunities: Dependence on qualified and motivated staff. Legal and brand risks linked to possible workplace accidents. Lack of equality or inclusion leads to poorer skills access as well as to brand risks. Active gender equality, inclusion and diversity efforts provide opportunities to attract talent to the Group.

Time horizons

The materiality assessment has taken short- (<3 years), medium- (<10 years) and long-term (<2050) perspectives into consideration. The time horizons have been set to align with ICA Gruppen's business plan (<3 years), with sufficient time spans to materially differentiate between the different time perspectives, and in relation to key years for, e.g., global, European and Swedish climate targets (2050).

Linkage between IROs and strategy and business model

ICA Gruppen's Group strategy builds on the companies' shared strengths and sets the direction for all operations within the Group. The Group strategy through 2030 sets the ambition to make every day a little easier for the Group's customers to:

• Find personalised solutions
• Save time and energy
• Make sustainable choices
• Get value for money

Within sustainable choices, ICA Gruppen's ambition is to:

• Be the recognised industry leader in all our markets and to drive development towards reduced climate impact and a more modern and sustainable food system
• Be the best in our markets at helping and inspiring customers to make sustainable choices

The Group strategy identifies three key strategic areas to strengthen the Group's ability to realise its ambition, several of which have a bearing on work with sustainability:

• Operating with high efficiency and speed
• Deploying next generation technology
• Attracting and empowering people

How material IROs interact with the business

Impact observations: The summary of ICA Gruppen's material impacts, risks and opportunities shows that ICA Gruppen's own operations have relatively limited impact, whereas material impacts in most areas exist upstream in ICA Gruppen's value chain, primarily linked to the products and services that ICA Gruppen purchases.

The downstream impact pertains in part to the impact of the retailer-owned ICA stores in Sweden, and in part to the impact arising from the consumption of the goods and services ICA Gruppen retails.

Risk and opportunity observations: Material risks are linked, for example, to the impacts for global food production as a result of climate change and biodiversity loss, while significant opportunities can be seen linked to ICA Gruppen's ability to provide communities in its domestic markets with groceries, services and utilities based on its store and pharmacy network in Sweden, Estonia, Latvia and Lithuania.

Integration of material IROs into strategy

The results of ICA Gruppen's materiality assessment are communicated and anchored with the relevant Group functions within finance, strategy and risk, to ensure that identified impacts, risks and opportunities are taken into consideration in recommendations and decisions in these areas.

ICA Gruppen has also integrated sustainability-related risks into its risk assessment process. The risk register is reviewed annually and short-term sustainability-related risks that exceed an acceptable level for the Group will be followed up in the same way as other risks in the Company.

Resilience commentary

A process is currently ongoing to further integrate the results of the double materiality assessment into ICA Gruppen's strategy and business model, the implementation of which will continue in the coming year. ICA Gruppen will update the double materiality assessment on an annual basis.

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

Materiality assessment instruction and governance

ICA Gruppen's process for identifying and assessing material impacts, risks and opportunities is set out in the Group's materiality assessment instruction, which was prepared in 2024 and will be subject to annual review going forward. To the extent possible, the mapping and assessment is performed as part of the Group's regular work with due diligence and risk (see pages 185–191).

Within ICA Gruppen, each company applies shared principles to map its impacts, risks and opportunities, and the Group's material impacts, risks and opportunities are then determined based on the company-specific assessments.

ICA Gruppen's materiality assessment 2024

In 2024, ICA Gruppen conducted its double materiality assessment (DMA) in preparation for the 2025 sustainability statements. The analysis was conducted pursuant to the European Sustainability Reporting Standards (ESRS) and the requirements of ESRS 1.

Step-by-step methodology

Identifying potential material matters

To identify the material matters, ICA Gruppen used:

• The ESRS list of sustainability matters (topics, sub-topics and sub-sub-topics)
• Sustainability statements from previous years
• Comparable companies' previous reports

While ICA Gruppen's gross list of material matters essentially corresponds with the areas in the ESRS, in a few areas, ICA Gruppen has also defined its own material matters.

Materiality has then been assessed based both on impact and on financial materiality (risks and opportunities). Both analyses have taken short- (<3 years), medium- (<10 years) and long-term (<2050) perspectives into consideration. The time horizons have been set to align with ICA Gruppen's business plan (<3 years), with sufficient time spans to materially differentiate between the different time perspectives, and in relation to key years for, e.g., global, European and Swedish climate targets (2050).

Impact materiality assessment

To assess the potential and actual impact of ICA Gruppen on sustainability matters, the sustainability-related impact on people and the environment in ICA Gruppen's value chain has been described, based on:

• A large number of internal and external documents
• Stakeholder dialogues

Using these descriptions, impacts were scored and assessed pursuant to the ESRS requirements on the basis of:

• Scale
• Scope
• Irremediable character
• Likelihood

For positive impacts, aspects were identified that improve conditions both for people and for the environment. Activities to mitigate negative impacts do not count as positive impacts.

Financial materiality assessment

ICA Gruppen's general risk framework combined with the ESRS assessment criteria has been used as the basis for assessing financial materiality. Risks have been assessed on the basis of:

• Scale, i.e., potential financial impact
• Likelihood

The assessment criteria and scales used in ICA Gruppen's work with risk have been used as the basis for the evaluation of scale. However, the actual assessment differs, as unlike risk assessments in ICA Gruppen's regular work with risk, the assessment within the framework of ICA Gruppen's double materiality assessment does not take into account any mitigating actions.

ICA Gruppen has also integrated sustainability-related risks into its risk assessment process. The risk register is reviewed annually and short-term sustainability-related risks that exceed an acceptable level for the Group will be followed up in the same way as other risks in the Company.

Assessment of materiality for ICA Gruppen

ICA Gruppen's overall assessment of materiality is based on a compilation of each company's identified impacts, risks and opportunities as described above. The following perspectives have been taken into account in the overall assessment:

• Relationship between identified impacts and risks/opportunities
• The relative importance of the operations' different value chains in relation to the Group's overall impact and financial position (e.g., based on the proportion of turnover derived from different economic activities)
• Importance of each company in relation to its market and value chain (e.g., market share)

Inputs to the assessment

Stakeholder dialogues

In the impact-based materiality assessment, existing documentation and dialogues with internal experts have been used as a starting point, together with input from dialogues conducted by ICA Gruppen's companies, on an ongoing basis, with their prioritised stakeholder groups and within their respective sectors. Where existing knowledge bases and established forms of dialogue have been deemed inadequate for the assessment of materiality, additional stakeholder dialogues have been conducted.

Scoring criteria

Thresholds for materiality

Impact materiality

Significant negative or positive impacts have been identified for each OpCo based on the following thresholds:

Negative impact

• Actual negative impacts are assessed as material if the severity is 21 or higher
• Potential negative impacts are considered material if the severity is 21 or higher and the likelihood is high (7–9)
• For human rights, potential negative impacts are considered material if the severity is 21 or higher, regardless of the likelihood

Positive impact

• Actual positive impact is considered material if the scale and scope together are 14 or higher
• Potential positive impacts are assessed as material if the combined scale and scope is 14 or higher and the likelihood is high (7–9)

Financial materiality

Risks and opportunities have been assessed for ICA Gruppen as a whole, based on ICA Gruppen's risk matrix. Risks and opportunities have been assessed as material if they have a value of high, very high or extreme in the matrix.

Validation and anchoring

The full results of the materiality assessment have been shared with:

• The internal functions in each contributing company
• Management teams and key functions within ICA Gruppen
• The strategy, risk and finance functions within ICA Gruppen
• Employee representatives

The results have been anchored with:

• All OpCo management teams
• CR Group Management
• ICA Gruppen's Management Team (IMT) - approved
• Board of Directors - approved

The results of ICA Gruppen's materiality assessment are communicated and anchored with the relevant Group functions within finance, strategy and risk, to ensure that identified impacts, risks and opportunities are taken into consideration in recommendations and decisions in these areas.

Frequency and review

ICA Gruppen will update the double materiality assessment on an annual basis.

Once yearly, the Board receives a review of ICA Gruppen's double materiality assessment, as well as how material impacts, risks and opportunities are managed in the Group's and the companies' policies, strategies and goals. The Chief Corporate Responsibility Officer is responsible for the provision of information, which in 2024 was provided in Q4.

ICA Management Team (IMT) receives an annual review of ICA Gruppen's material impacts, risks and opportunities based on ICA Gruppen's double materiality assessment.

Use of value chain mapping

ICA Gruppen conducts operations in all of the Group's areas in Sweden, in grocery retail in the three Baltic countries and has a purchasing office in Asia. The breadth of operations conducted by ICA Gruppen's companies means that the Group has several, diversified value chains. However, upstream, all of these chains are global, but are concentrated downstream in the Group's home markets in Sweden and the Baltics.

The breadth of goods offered means that the value chain starts with a large number of raw materials and materials as well as various processes for preparation and final manufacture. Grocery retail and pharmacy products account for the vast majority of ICA Gruppen's sales.

Value chain diagrams are presented for different topics showing:

• Upstream activities (raw material extraction & farming, processing & manufacturing, IT & treasury, insurance-related service providers, finished production assembly, sourcing & concept development)
• Own operations (concept development, sales & customer support, bank services, insurance services, wholesale operations, wholesale/grocery retail & pharmacy operations, property management)
• Downstream activities (consumption, financing & investments, tenants, end of life)

Future actions

A process is currently ongoing to further integrate the results of the double materiality assessment into ICA Gruppen's strategy and business model, the implementation of which will continue in the coming year.

ICA Gruppen's ambition is to continue to reduce its climate footprint in line with what is needed to reach the Paris Agreement's 1.5°C goal and achieve net zero emissions. ICA Gruppen's climate targets for 2030 and 2050 have been approved by SBTi and encompass all emissions in the value chain (Scope 1, 2 and 3).

Short-term targets for 2030

• Energy and industry ("Non-FLAG"): In Scope 1 and 2, ICA Gruppen will reduce absolute GHG emissions 42% by 2030, compared with the base year 2022. In Scope 3, ICA Gruppen will also reduce absolute GHG emissions 42% within the same timeframe. • Forest, Land an Agriculture ("FLAG"): In Scope 3 FLAG, ICA Gruppen will reduce absolute GHG emissions 30.3% by 2030, compared with the base year 2022. ICA Gruppen is also to meet anti-deforestation requirements for all goods that can be linked to deforestation by no later than December 2025.

Long-term targets for 2050

• Energy and industry ("Non-FLAG"): In Scope 1 and 2, ICA Gruppen will reduce absolute GHG emissions 90% by 2050, compared with the base year 2022. In Scope 3, ICA Gruppen will also reduce absolute GHG emissions 90% within the same timeframe. • Forest, Land an Agriculture ("FLAG"): In Scope 3 FLAG, ICA Gruppen will reduce absolute GHG emissions 72% by 2050, compared with the base year 2022.

The long-term target is net zero. Any remaining emissions in 2050 are to be compensated for through capturing an equivalent amount of carbon dioxide through technological or natural means.

Policies related to climate change mitigation and adaptation

ICA Gruppen has established several policies and guidelines that govern its approach to climate change mitigation and adaptation.

Sustainability Policy

• Scope: All ICA Gruppen employees, suppliers and business partners are expected to follow this policy
• Governance: Adopted by the Board of Directors
• Key content: The Sustainability Policy describes ICA Gruppen's overall position on sustainability matters over and above those requirements set through legislation. The policy states that climate aspects must be taken into account in investment decisions and be an integral part of day-to-day operations, including factors such as transportation, energy consumption and refrigerants
• Oversight: The Board of Directors decides ICA Gruppen's Sustainability Policy and conducts an annual review of sustainability work, including governance model and KPIs. The ICA Management Team (IMT) prepares the annual review of the Sustainability Policy

Sustainability Guideline

• Scope: All ICA Gruppen employees, suppliers and business partners
• Governance: Adopted by the ICA Gruppen Management Team
• Key content: Describes ICA Gruppen's overall position on sustainability matters over and above legislative requirements
• Business-specific guidelines: The sustainability guidelines for stores and pharmacies state that local sourcing should be prioritised, along with seasonality and quality. Air transport shall only be used when required to meet legal requirements or in exceptional cases, and then with the prior approval of ICA Gruppen

Code of Conduct

• Scope: All employees in ICA Gruppen
• Governance: Adopted by the Board under the Governance of Steering Documents Policy
• Key content: Describes the core values, business principles and commitment to conducting sustainable operations that are responsible, efficient and transparent

Climate Transition Plan

• Scope: Encompasses all emissions in the value chain (Scope 1, 2 and 3) in line with SBTi Corporate Net-Zero Standard
• Governance: Developed by ICA Gruppen's sustainability team and approved by ICA Gruppen's Management Team and Board of Directors. The Board's Sustainability Committee specifically addressed strategic implications of identified climate risks, business plans for reducing climate impact of food sold, alignment of net zero targets with SBTi standard, and ICA Gruppen's climate transition plan
• Key content: ICA Gruppen's long-term ambition is to reduce the climate footprint of the entire value chain in line with what is needed to reach the Paris Agreement's 1.5°C goal and to achieve net zero climate emissions by 2050. The plan covers GHG emissions from own operations (Scope 1, 2 and parts of Scope 3) as well as key categories in the broader value chain including raw materials, packaging material, logistics and end-of-life management. The plan does not include the purchase of carbon credits to reach short-term greenhouse gas reduction targets
• International alignment: Climate targets for 2030 and 2050 have been approved by Science Based Targets initiative (SBTi) and are in line with the Paris Agreement's 1.5°C goal. The targets align with SBTi's Corporate Net-Zero Standard
• Monitoring: The Board of Directors, CEO and IMT receive regular training in prioritised sustainability areas. Climate and sustainability risks are included in regular risk management and in twice-yearly reporting of risks to the IMT and Board of Directors

Sustainability appendices for suppliers

• Scope: All suppliers and partners
• Governance: Decided on by Corporate Responsibility Group Management, with exceptions decided by CEO
• Key content: ICA Gruppen's sustainability-related requirements for suppliers and partners are compiled in a sustainability appendix that is attached to sourcing agreements. The appendix includes specific requirements concerning environmental and social aspects and product-specific requirements for physical products. It states as a requirement that suppliers adopt science-based climate targets that are in line with the Paris Agreement

ICA Real Estate's sustainability strategy

• Scope: ICA Real Estate operations
• Key content: Sets out objectives for sustainability work in a sustainability strategy for 2030 as well as sustainability plans prepared for each construction project and property

People Policy

• Scope: All employees in ICA Gruppen and in operating companies (OpCos)
• Key content: Describes the framework within which employees and managers must operate to live up to shared values and achieve set targets. Aims to create a work environment that supports employees in delivering good service to customers while promoting a sustainable and healthy work-life balance

Actions and resources in relation to climate change policies

ICA Gruppen's net zero targets approved by Science Based Targets initiative (SBTi)

Scope: Entire value chain (Scope 1, 2 and 3)

Time horizon: Near-term targets for 2030; Long-term targets for 2050

Action: ICA Gruppen had its science-based net zero climate targets approved in 2024 by SBTi. Overall target is net zero GHG emissions across the entire value chain by 2050.

Near-term targets (2030):

• Energy and industry (Non-FLAG): Reduce absolute Scope 1 and 2 GHG emissions 42% by 2030 from 2022 base year; reduce absolute Scope 3 GHG emissions 42% within same timeframe
• Forest, Land and Agriculture (FLAG): Reduce absolute Scope 3 FLAG GHG emissions 30.3% by 2030 from 2022 base year; no deforestation across primary deforestation-linked commodities by December 2025

Long-term targets (2050):

• Energy and industry: Reduce absolute Scope 1 and 2 GHG emissions 90% by 2050 from 2022 base year; reduce absolute Scope 3 GHG emissions 90% within same timeframe
• FLAG: Reduce absolute Scope 3 FLAG GHG emissions 72% by 2050 from 2022 base year

Link to policy: Aligns with Paris Agreement's 1.5°C goal; integral part of ICA Gruppen's long-term strategic direction

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Refrigerants and energy

Continued conversion of refrigerants

Scope: Own operations (stores)

Action: Survey completed in 2024 showing continued good pace in transition to refrigerants with less climate impact.

Outcome (2024): Climate impact from refrigerant leakage decreased 30% compared with 2022; total installed refrigerants measured as CO2e decreased 16%

Target: ICA Real Estate aims to have no synthetic refrigerants by 2030

Optimising operations and investments to reduce energy use

Scope: Own operations (stores, buildings)

Action: ICA Real Estate control and operational monitoring project for store buildings, aimed at meeting EU Energy Performance of Buildings Directive requirements. Includes operational optimisation for one year after buildings are connected.

Time horizon: Project concludes in 2025 when all properties are planned to have been connected

Outcome: Energy use has been significantly reduced thanks to operational optimisation

Additional investments: Ongoing investments in stores and pharmacies to reduce energy consumption, including:

• Apotek Hjärtat replacing all lighting in pharmacies with LED lighting

Targets:

• ICA Gruppen's operations in Sweden: reduce energy consumption 20% by 2030
• Rimi Baltic: reduce energy consumption 24% by 2030

Solar panels for more renewable energy

Scope: Own operations (logistics centre)

Action: Installation of solar panels at Rimi Baltic logistics centre in Riga (one of the largest solar panel installations in the Baltics)

Resources allocated: EUR 1.6 million invested

Time horizon: Inaugurated in 2024

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Transport

Fossil-free transport for heavy goods transport (hydrogen)

Scope: Own operations (logistics/transport)

Action: Investment in hydrogen-powered heavy goods transport. Hydrogen-powered heavy transport is locally emission-free, allows for higher load, longer range and faster refuelling compared with battery-powered alternatives.

Target: Fossil-free goods transport in Sweden 2030; in major cities (Stockholm, Gothenburg, Malmö) by 2025

Continued investment in vehicles and infrastructure for electric goods transport

Scope: Own operations (logistics/transport)

Action: Development of infrastructure, vehicles and services for electric heavy goods transport. ICA Sweden continued partnership with Volvo Trucks that started at end of 2020. ICA Sweden will also continue to participate in E-Charge project (phase 2: 2025-2028) together with Volvo and Scania.

Resources allocated: Purchase or lease of light and heavy lorries powered by electricity, hydrogen or biogas; investments in charging infrastructure for electric vehicles; purchase or lease of electric or biogas passenger cars

Link to Taxonomy: Investments help increase Taxonomy-aligned proportion of CapEx under Freight transport services by road (CCM 6.6)

Target: Fossil-free goods transport in Sweden 2030; in major cities by 2025

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Carbon offsetting

Scope: Entire value chain

Action: Since 2020, all emissions from ICA Gruppen's own operations have been carbon offset in full by investing in carbon offsets for the corresponding amount of CO2e. Projects carefully selected in collaboration with South Pole and Climate Partner. All projects are third-party certified to at least one independent standard.

Geographic scope (2024): Carbon offset projects in countries that are part of the Group's own supply chain: Peru, China, India and Türkiye

Project types: Geothermal and wind energy expansion, forest conservation and planting, biomass utilisation and biogas creation from waste

Policy link: Projects selected based on additionality, confidence in expected climate benefits, and positive contribution to local communities and sustainable development

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Internal carbon pricing

Action: ICA Gruppen is exploring how an internal price on carbon could be used to support decisions, investments and proactively move the business towards lower climate emissions.

Time horizon: Under exploration

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Collaboration and engagement in the value chain

Swedish roadmap for a sustainable food chain

Scope: Upstream and downstream value chain

Action: Launch of Swedish roadmap for sustainable food chain in March 2024, result of multi-year collaboration within the Hållbar livsmedelskedja (Sustainable Food Chain) initiative started in 2015 by ICA Sweden. Roadmap signed by CEOs of major grocery chains, food producers and restaurant wholesalers.

Climate objectives:

• Overall goal: reduce climate footprints throughout value chain in line with 1.5°C target
• Production targets: reduce methane footprint of meat and dairy products; increase use of fossil-free plant nutrition
• Customer offering targets: increase share of plant-based foods sold

Time horizon: Goals for more sustainable food supply chain by 2030

Swedish Pharmacy Association roadmap

Scope: Downstream value chain (pharmacy sector)

Action: In December 2024, Swedish Pharmacy Association decided on industry-wide roadmap (Apotek Hjärtat helped develop), focusing on holistic approach to climate, environment and social responsibility.

Consumer Goods Forum Net Zero Coalition of Action

Scope: Global value chain

Action: ICA Gruppen's CEO co-chairs Consumer Goods Forum's Net Zero Coalition of Action, dedicated to delivering and accelerating consumer goods industry's commitments to reduce GHG emissions.

Engagement with suppliers on science-based targets

Scope: Upstream value chain

Action: Ongoing dialogue with suppliers to adopt science-based climate targets in line with Paris Agreement. Stated as requirement in sustainability appendix attached to all supplier agreements.

Target: By 2025, suppliers representing 70% of upstream climate impact are to have adopted science-based climate targets

Policy link: Sustainability appendix to supplier agreements; Sustainability Policy requirement

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Product assortment and customer engagement

Easier to choose climate-smarter food

Scope: Downstream (customer offering)

Action: ICA launched ICA Hushållsfärs (30% pea-based mince, 70% minced beef) with approximately 28% lower climate footprint compared with traditional minced beef (calculated based on RISE climate database).

Time horizon: Launched in 2024

Klimatknuffen (Climate Nudge) AI service

Scope: Downstream (customer offering)

Action: ICA Sweden launched AI service Klimatknuffen to make it easier for customers to choose products with lower climate footprint. Pilot project tested in ICA's e-commerce operations. Customers confirm if they want personalised tips about which goods they can switch to in online shopping basket to reduce carbon footprint. AI model tailors suggestions based on customer's previous purchasing behaviour and habits.

Focus: Initially focuses on dairy and meat

Developer: Impact X, ICA's innovation hub focusing on innovations in sustainability

Time horizon: 2024 pilot

Rimi Baltic climate footprint pilot

Scope: Downstream (customer offering)

Action: Rimi Baltic conducted pilot project on climate footprint of online shopping together with Carbon Cloud climate data platform.

Time horizon: 2024

Target: Climate impact of customers' food purchases to be reduced 30% by 2030

Pharmacy products

Action: Apotek Hjärtat's ambition is to reduce climate impact of customers' purchases of pharmacy products. Working together with others in industry to increase knowledge and transparency about climate impact of products.

Challenge noted: Significant challenges remain in terms of measurability and follow-up

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Construction and buildings

Green buildings and NollCO2 certification

Scope: Own operations (real estate)

Action: Construction based on certification to NollCO2 standard, requiring carefully thought-out construction process from start. This means significantly reducing GHG emissions in production of building components and construction processes used, and choosing materials with lowest possible climate footprint for additional construction. Energy use is to be reduced, and remaining climate impact balanced through climate action to net zero.

Resources allocated: Investments in green buildings

Link to Taxonomy: Investments help increase Taxonomy-aligned proportion of CapEx under Acquisition and ownership of buildings (CCM 7.7)

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Local food production for increased resilience

Promoting local and national production

Scope: Upstream value chain

Action: Initiatives by ICA Sweden and Rimi Baltic to promote locally and domestically produced foods. Help to reduce vulnerability to climate-caused disruption in global supply chains by reducing transport distances. Also meet consumers' growing interest in locally produced food.

Policy link: Sustainability guidelines for stores and pharmacies state that local sourcing should be prioritised, along with seasonality and quality. Air transport shall only be used when required to meet legal requirements or in exceptional cases (with prior approval of ICA Gruppen).

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Packaging

Target: All plastic food packaging for ICA Gruppen's corporate brand products must be recyclable into new materials by 2025 and come from renewable or recycled raw materials by 2030.

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Financing the transition

Green financing framework and bond issuance

Action: Green financing framework established by ICA Gruppen in 2023. Areas covered: green buildings, renewable energy, fossil-free transport, sustainability-labelled products in private label assortment.

Resources allocated (2024): Green bond issued totalling SEK 2 billion as part of Swedish MTN programme. Bonds of SEK 500 million and SEK 1.5 billion with respective maturities of 3 and 5.5 years, both with variable interest rates (longer maturity also with fixed interest rate).

Allocation (2023 data):

• 42% green buildings
• 39% purchase of environmentally labelled products
• 18% fossil-free transports
• 1% renewable energy
• Total allocated funds for green investments: SEK 7,721 million (2024), SEK 3,500 million (2023)
• Of which fossil-free transport: SEK 1,405 million (2024), SEK 637 million (2023)

Expected outcome: For every million SEK invested through ICA Gruppen's green bonds, emissions equivalent to 4.86 tonnes CO2e are estimated to have been avoided

Concrete investments to date:

• Transition to sustainable transport (purchase or lease of light and heavy lorries powered by electricity, hydrogen or biogas)
• Investments in charging infrastructure for electric vehicles
• Purchase or lease of electric or biogas passenger cars
• Investments in green buildings
• Investments in renewable energy production

Note: Significant effort made to develop assortment/range and market to stores and consumers within framework of ICA Gruppen's regular assortment development, therefore does not burden Group in form of monetary investments.

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Governance and policy framework

Governance: Climate issue is integral part of ICA Gruppen's long-term strategic direction. Board and management are responsible for sustainability matters. CEO has ultimate responsibility; day-to-day work delegated to Chief Corporate Responsibility Officer (part of ICA Management Team). Management team for sustainability consists of all sustainability managers at Group's various companies.

Risk management: Climate and sustainability risks included in regular risk management and in twice-yearly reporting of risks to IMT and Board.

Policies:

• Sustainability Policy states that climate aspects must be taken into account in investment decisions and be integral part of day-to-day operations (transportation, energy consumption, refrigerants)
• Sustainability guidelines for stores and pharmacies: local sourcing should be prioritised, along with seasonality and quality; air transport only when required to meet legal requirements or exceptional cases (with prior approval)
• Sustainability appendix to all supplier agreements requiring suppliers to adopt science-based climate targets aligned with Paris Agreement

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Climate risk management (TCFD)

Action: Since 2021, ICA Gruppen implementing TCFD guidelines. General survey of climate risks carried out and strategies for managing risks identified.

Action (2024): Drawing inspiration from TNFD framework methodology, comprehensive mapping of nature-related risks for ICA Sweden initiated in autumn 2024. Identification of strategies for managing mapped risks will continue in coming financial year.

Mitigation: Many risks mitigated by strategies and ambitions ICA Gruppen has adopted, such as climate ambition, fuel strategy and energy strategy. Focus on strengthening resilience against climate risks in operations, addressing risks related to properties and supply chain risks, reducing climate impact within own operations through energy efficiency measures, transitioning to renewable electricity and refrigerants with lower climate impact, reducing emissions from transport and building materials.

Climate risks identified:

• Physical risks: impact on long-term conditions for food production; extreme weather disrupting crops and deliveries; impacts on properties/infrastructure
• Transition risks: regulatory risk; impacts on supply and demand
• Supply chain risks: geopolitical risks, commodity price risk, climate risks

Supply chain management: Proactive measures to identify, assess and manage potential risks, ensuring resilience of supply chain in face of future disruptions.

ICA Gruppen's science-based climate targets

ICA Gruppen to reach net zero GHG emissions across the entire value chain by 2050

ICA Gruppen's ambition is to continue to reduce its climate footprint in line with what is needed to reach the Paris Agreement's 1.5°C goal and achieve net zero emissions. ICA Gruppen's climate targets for 2030 and 2050 have been approved by SBTi and encompass all emissions in the value chain (Scope 1, 2 and 3).

Short-term targets for 2030

• Energy and industry ("Non-FLAG"): In Scope 1 and 2, ICA Gruppen will reduce absolute GHG emissions 42% by 2030, compared with the base year 2022. In Scope 3, ICA Gruppen will also reduce absolute GHG emissions 42% within the same timeframe. • Forest, Land an Agriculture ("FLAG"): In Scope 3 FLAG, ICA Gruppen will reduce absolute GHG emissions 30.3% by 2030, compared with the base year 2022. ICA Gruppen is also to meet anti-deforestation requirements for all goods that can be linked to deforestation by no later than December 2025.

Long-term targets for 2050

• Energy and industry ("Non-FLAG"): In Scope 1 and 2, ICA Gruppen will reduce absolute GHG emissions 90% by 2050, compared with the base year 2022. In Scope 3, ICA Gruppen will also reduce absolute GHG emissions 90% within the same timeframe. • Forest, Land an Agriculture ("FLAG"): In Scope 3 FLAG, ICA Gruppen will reduce absolute GHG emissions 72% by 2050, compared with the base year 2022.

ICA Gruppen is to halve food waste from warehouses and stores by 2025

Food accounts for approximately one quarter of total human impact on the climate. It is therefore crucial to take care of food that is produced. ICA Gruppen's target is to halve food waste by 2025 compared with 2016. The target includes warehouses and stores in the Swedish and Baltic operations.

Energy consumption and mix

Energy consumption in stores and pharmacies

¹ Deviations have been identified with regards to reported data for energy in Estonia and Lithuania, wherefore outcome should be interpreted with caution.

Energy consumption in warehouses and offices

¹ Deviations have been identified with regards to reported data for energy in Estonia and Lithuania, wherefore outcome should be interpreted with caution.

Distribution of electricity sources, 2024

(Electricity consumption in warehouses, offices, stores and pharmacies)

Total energy consumption

Total energy consumption: 1,032,757 MWh (2024)

• Stores and pharmacies: 921,693 MWh
• Warehouses and offices: 111,064 MWh

Calculation methodology and scope

Sweden stores: Based on actual electricity use in stores covered by the central electricity agreement. Total consumption is extrapolated by number of stores using standard formulas per store format (Maxi ICA Stormarknad: 97% renewable and 3% non-renewable; ICA Kvantum: 91% renewable and 9% non-renewable; ICA Supermarket: 92% renewable and 8% non-renewable; ICA Nära: 92% renewable and 8% non-renewable). Breakdown established and updated following a review in 2022.

Rimi Baltic stores: Actual consumption for all Rimi Baltic stores is used.

Apotek Hjärtat pharmacies: Based on actual electricity used by pharmacies covered by central electricity agreement. Total consumption extrapolated using number of pharmacies. For pharmacies with no central electricity agreement: 88% renewable and 12% non-renewable energy.

Renewable energy sources: Energy from renewable sources such as wind, solar and hydro power.

Non-renewable energy: Energy from fossil sources such as coal and oil, and nuclear energy.

Emission factors:

• Nordic residual mix for non-renewable energy in Sweden: 0.00007600 tonnes CO2e/kWh (Source: Grexel/Swedish Energy Markets Inspectorate, 2022)
• Renewable energy in Sweden: 0 tonnes CO2e/kWh (Source: Bixia, 2023)
• Renewable and nuclear electricity in Baltic countries: 0 tonnes CO2e/kWh
• District heating Sweden: Previous year's emission factor from district heating supplier used; for Apotek Hjärtat, Swedish average of 0.056 kg CO2e/kWh (Source: Swedish National Board of Housing, Building and Planning)
• District heating Baltics: Lithuania 0.0002097 tonnes CO2e/kWh, Latvia 0.0001988 tonnes CO2e/kWh, Estonia 0.00026 tonnes CO2e/kWh (Source: EU Joint Research Centre, 2023)
• Gas heating Baltics: 0.00024 tonnes CO2e/kWh
• Diesel heating: 0.000306 tonnes CO2e/kWh

ICA Global Sourcing: Previous year's reported data used for current year's quarterly calculations.

Note: Data excludes retailer-owned ICA stores. Energy mix in non-renewable electricity within Sweden based on Swedish Energy Markets Inspectorate's residual mix. Within the Baltics, exact amount of electricity per type of energy is reported.

Gross Scopes 1, 2, 3 and Total GHG emissions

Emissions from own operations

ICA Gruppen reports emissions from own operations (Scopes 1 and 2) with multi-year data:

The report states: "Our own operations have continued to reduce emissions, only since 2022 with –19%." This represents a 19% reduction in own operations emissions between 2022 and 2024.

Scope 1, 2, 3 breakdown

The report does not provide a detailed breakdown of Scopes 1, 2, and 3 in the excerpts. The "emissions from own operations" metric appears to encompass Scopes 1 and 2.

Science-based targets (SBTi approved)

ICA Gruppen's climate targets have been approved by SBTi. The targets are divided into two categories:

Short-term targets for 2030:

• Energy and industry ("Non-FLAG"): In Scope 1 and 2, reduce absolute GHG emissions 42% by 2030, compared with base year 2022. In Scope 3, reduce absolute GHG emissions 42% within the same timeframe.
• Forest, Land and Agriculture ("FLAG"): In Scope 3 FLAG, reduce absolute GHG emissions 30.3% by 2030, compared with base year 2022. Meet anti-deforestation requirements for all goods that can be linked to deforestation by no later than December 2025.

Long-term targets for 2050:

• Energy and industry ("Non-FLAG"): In Scope 1 and 2, reduce absolute GHG emissions 90% by 2050, compared with base year 2022. In Scope 3, reduce absolute GHG emissions 90% within the same timeframe.
• Forest, Land and Agriculture ("FLAG"): In Scope 3 FLAG, reduce absolute GHG emissions 72% by 2050, compared with base year 2022.

Climate impact from food sold

The report also tracks climate impact from food sold in ICA stores:

Overall ambition

The goal is to reach net zero climate impact across the entire value chain by no later than 2050, with significant reductions by 2030.

Methodology notes

The report does not provide detailed Scope 1, 2, and 3 disaggregation in the excerpts. Emissions from own operations appear to cover Scopes 1 and 2. The SBTi targets indicate that Scope 3 is divided into "Non-FLAG" and "FLAG" categories. Base year for targets is 2022. The sustainability report section (pages 76–171) likely contains more detailed methodology and breakdowns.

Policies related to pollution

ICA Gruppen does not disclose a specific named policy dedicated to pollution in the excerpts provided. However, the company describes several policy-related requirements and frameworks:

ICA Gruppen's sustainability appendix on the purchase of services

• Scope: Suppliers of ICA Gruppen
• Key content: Suppliers must conduct internal environmental work, including:
  • An environmental policy
  • Environmental targets
  • Follow-up of the operation's environmental impact
  • Certification/registration in accordance with a third-party standard
• Specific requirements for suppliers handling hazardous chemicals: Suppliers who handle hazardous and controlled chemicals in or adjacent to properties at the disposal of the Group must:
  • Prepare and maintain a list of all chemicals used in the business/operations
  • Provide safety data sheets for all chemicals as required
  • Ensure all personnel who handle hazardous and controlled chemicals have adequate competence and, where required, personal protective equipment

Product-specific requirements

• Scope: Essentially all product categories purchased by ICA Sweden, Apotek Hjärtat and Rimi Baltic
• Key content: Specific requirements are set for chemicals, pesticides and antibiotics
• Reference: Further information on ICA Gruppen's product-specific requirements on page 81

Adherence to regulations and industry frameworks

The company references compliance with several external standards and regulations:

• REACH Regulation: European Parliament and Council's regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals, with requirements on users of chemicals and rules on information to customers
• CLP Regulation: EU regulation on classification, labelling and packaging of chemical substances and mixtures
• The Swedish Food Retailers Federation's banned list for pesticides: Compilation of pesticides to be phased out in production of fresh fruit and vegetables in non-EU countries (ICA Sweden)
• The Swedish Food Retailers Federation's industry agreement on the use of antibiotics in animal husbandry: Common criteria for purchase of meat, charcuterie, dairy products and seafood to reduce antibiotic use (ICA Sweden)
• Välvald labelling system: The pharmacy industry's shared requirement for responsible production of over-the-counter (OTC) medicines (Apotek Hjärtat)

Aim on substances of concern

• Key content: ICA Gruppen's aim is to limit the use of chemicals that are harmful to health and/or the environment, both in products sold and in their production
• Specific requirement: Products and packaging must not contain substances of very high concern (SVHC), in accordance with the REACH Candidate List, nor other SVHCs as defined under the REACH criteria

Pollution of air, water and soil

Materiality and governance

ICA Gruppen has identified pollution of air, water and soil as material negative impacts in its value chain, primarily upstream in agriculture and production. The materiality assessment covers:

• Pollution of air: Material negative impact
• Pollution of water: Material negative impact
• Pollution of soil: Material negative impact
• Pollution of living organisms and food resources: Material negative impact
• Substances of concern: Material negative impact

Impacts in the value chain

Emissions to air primarily derive from:

• Upstream: Use of fertilisers and chemical pesticides in agriculture, pollution from pharmaceutical and construction materials production, and emissions from home electronics, textiles and household utensils production
• Own operations: Transport, construction, and risk of refrigerant leakage from refrigerators and freezers in stores, pharmacies and warehouses
• All stages: Particle pollution from transport (tyre, road and brake wear, fuel combustion)

Emissions to water and soil occur primarily:

• Upstream: Use of fertilisers and chemical pesticides in agriculture, emissions from pharmaceutical manufacturing, risk of oil and wastewater emissions from sea-borne transport
• Downstream: Emission of pharmaceutical substances from use and handling of surplus medicines, spreading of chemicals from hygiene, cleaning and laundry products, release of PFAS substances from consumer products (e.g. frying pans)

Refrigerants: PFAS is included in synthetic refrigerants partly used in refrigerators and freezers in stores, pharmacies and warehouses.

Pollution of living organisms and food resources: Emissions of harmful substances to air, water and soil may have direct negative impact on animals, plants and crops that comprise food ingredients. This includes effects on pollinators and ecosystem resilience. Pharmaceutical substances in water and soil can lead to increased antibiotic resistance and hormonal effects on wildlife. PFAS substances are extremely difficult to break down and effective cleansing methods do not exist in treatment works.

Risks and opportunities

For ICA Gruppen, emissions to air, water and soil comprise potential risks:

• Short term: Increased costs related to compliance with traceability and transparency regulations; direct brand risk if substances subject to limits/restrictions are identified in goods sold
• Medium and long term: Shortages of crops and raw materials may result in higher costs or inability to provide desired assortment

Governance framework

ICA Gruppen's sustainability guidelines state that the Group shall:

• Restrict use of hazardous chemicals in products sold and in their production
• Ensure products and packaging do not contain substances of very high concern per REACH Candidate List
• Avoid PVC in purchased products
• Be part of effort against antibiotic resistance; restrictive with chemicals proven to contribute to antibiotic resistance in private label goods
• Require suppliers not to use antibiotics preventively in animals, only if prescribed by a vet

Suppliers must:

• Prepare and maintain a list of chemicals used in production
• Ensure personnel handling chemicals have adequate competence and protective equipment
• Conduct internal environmental work including environmental policy, targets and follow-up
• Be certified/registered per third-party standard for handling hazardous and controlled chemicals

External standards and partnerships

Quantified emissions data

No specific quantitative data on emissions to air, water or soil (kg or tonnes per year) is disclosed in the excerpts provided. The report references that "For a description of ICA Gruppen's GHG emissions, including emissions from e.g. refrigerants, goods transports and business travel, see pages 91–92 and 100–102" (E1: Climate change section).

The company states that measurement and monitoring of impacts is challenging as impact on ecosystems is mainly locally linked to raw material processing and production, while the assortment consists of a large number and variety of products and raw materials. Challenges relate to access to geodata and how data flows and is aggregated in the food value chain.

ICA Gruppen participates in projects to drive transparency and access to data and metrics related to biodiversity and pollution impacts, including the European research programme CircHive and RISE's work on developing a biodiversity database for food.

Substances of concern and substances of very high concern

Governance

ICA Gruppen's sustainability guidelines for grocery retail and pharmacy operations state, inter alia, that ICA Gruppen is to restrict the use of hazardous chemicals in the products that are sold and in their production. Products and packaging must not contain substances of very high concern in accordance with the REACH Candidate List. In addition, they should not contain other substances, such as those defined by the REACH criteria. Purchased products must not contain PVC, since they may contain environmentally hazardous substances or result in the development of harmful substances upon incineration or landfill.

Regarding antibiotics, ICA Gruppen is to be part of the effort against antibiotic resistance and support the safe and healthy use by people and in animal husbandry. In terms of private label goods, ICA Gruppen is restrictive with chemicals that have been scientifically proven to contribute to antibiotic resistance. ICA Sweden requires all its suppliers not to use antibiotics to treat animals preventively, but rather only if prescribed by a vet.

ICA Gruppen's sustainability appendix on the purchase of products states that suppliers must prepare and maintain a list of chemicals used in production or other activities. All personnel who handle chemicals must have adequate competence and, where required, personal protective equipment.

ICA Gruppen's sustainability appendix on the purchase of services states that suppliers must conduct internal environmental work. Suppliers who handle hazardous and controlled chemicals in or adjacent to properties at the disposal of the Group must have prepared and maintain a list of all chemicals used in the business/operations. Safety data sheets must be provided for all chemicals as required. All personnel who handle hazardous and controlled chemicals must have adequate competence and as required, personal protective equipment.

For essentially all product categories purchased by ICA Sweden, Apotek Hjärtat and Rimi Baltic, specific requirements are set and include requirements for chemicals, pesticides and antibiotics.

External standards, frameworks and partnerships

Strategy and focus

The production of food, groceries, medicines, building materials and packaging uses different types of chemicals of concern, including substances of very high concern (SVHC). If not properly managed, these have both actual and potential impacts on health, the environment and climate. Use is regulated through numerous laws and regulations, including the CLP Regulation and the REACH Regulation. ICA Gruppen's aim is to limit the use of chemicals that are harmful to health and/or the environment, both in products sold and in their production. Products and packaging must not contain substances of very high concern, in accordance with the REACH Candidate List. Nor should they contain other SVHCs, as defined under the REACH criteria.

Actions and activities

Monitoring of supplier and product requirements for chemicals and pesticides in ICA Gruppen's corporate brand products

To monitor compliance with ICA Sweden's product requirements for clothes, toys and electronics, for example, testing is conducted, primarily in conjunction with production, since it is important to identify any deviations as early as possible, before goods reach stores and customers. This testing is complemented by risk-based analyses of finished products, known as "spot checks."

Risk-based testing of the food assortment is also conducted, such as in relation to pesticide residues in fruit and vegetables, with all new products being tested for pesticides prior to inclusion in the assortment. During 2024, 52 such analyses were conducted for ICA Sweden, and 30 for Rimi Baltic.

For the pharmacy assortment, thorough screening is performed of content specifications and ingredients. All suppliers of cosmetic products must also complete a self-declaration about their compliance with current legislation and Apotek Hjärtat's internal requirements for ingredients in Apotek Hjärtat's Restricted Cosmetic Ingredients list.

Phase-out of PFAS substances

It is primarily in the assortment offered by ICA Special, meaning different home and household items, that there is a risk of PFAS occurring. ICA Sweden is a member of PFAS Movement, which has the goal of phasing out PFAS. PFAS is not permitted according to ICA's product criteria. If PFAS is identified in a product, the supplier must inform ICA immediately and have a plan for phasing it out in order to continue supplying goods to ICA.

There is a risk that PFAS may also occur in cosmetic products. All PFAS substances are now prohibited in Apotek Hjärtat's assortment, which is stated in Apotek Hjärtat's list of Restricted Cosmetic Ingredients, and all cosmetic products that contain PFAS have been removed from the assortment.

Supplier requirements to reduce antibiotic use in animal husbandry

In 2020, the most recent update was made to the Swedish Food Retailers Federation's industry agreement on the use of antibiotics in animal husbandry, with the aim of reducing overuse of antibiotics in food-producing animals. The criteria in the agreement are incorporated in ICA Sweden's supplier requirements.

Policies related to water and marine resources

ICA Gruppen has established several policies and requirements related to water and marine resources:

ICA Gruppen's sustainability guidelines for grocery stores and pharmacies

• Scope: Suppliers who use a significant amount of water in their operations
• Key content/principles:
  • Suppliers must have a plan for the reduction of water use
  • Suppliers must ensure emissions with the lowest possible environmental impact
  • Suppliers must comply with global management systems, such as the Alliance for Water Stewardship

ICA Handlarnas Förbund's Store Policy ("ICA's Good Business for Stores")

• Scope: Stores
• Key content/principles:
  • Stores should follow the applicable WWF Seafood Guide to contribute to more sustainable fishing and water use
• Link to standards: WWF Seafood Guide
• Relevant operations: ICA Sweden, Rimi Baltic

ICA Gruppen's sustainability appendix on the purchase of products

• Scope: Suppliers of goods with significant water consumption
• Key content/principles:
  • Suppliers must measure water consumption
  • Suppliers must have targets for how consumption is to be reduced and monitored

ICA Gruppen's product-specific requirements

• Scope: Suppliers delivering fish and shellfish to ICA Gruppen's companies
• Key content/principles:
  • Fish and shellfish must be MSC-, ASC- and/or KRAV-certified, or listed green or yellow in the WWF Seafood Guide
  • Fish and shellfish from endangered stocks should not be sold by Rimi or in ICA stores
  • All seafood must be traceable to stock, fishing zone/farming location and fishing method
• Link to standards: Marine Stewardship Council (MSC), Aquaculture Stewardship Council (ASC), KRAV, WWF Seafood Guide
• Monitoring: Close collaboration with suppliers and active efforts to continuously increase the proportion of MSC- and ASC-certified fish and shellfish
• Relevant operations: ICA Sweden, Rimi Baltic

Water consumption

Impact materiality assessment

ICA Gruppen has identified water consumption, water withdrawals, and water discharges as having negative impact materiality. Financial materiality was assessed as not material for water-related topics.

The materiality assessment (pages 85-87, 153-154) confirms:

(N = Negative impact, – = Not material)

Impact location

Upstream (primary impact area):

• Water consumption in agriculture and food production, with bigger impact from certain raw materials (e.g. cotton and avocado), and in certain regions

Own operations:

• Not identified as material (marked as "–" in impact assessment table)

Downstream:

• Spreading of pharmaceutical residues to water and nature

Geographic and sector context

The company notes that:

• Purchases of fruit and other water-intensive crops are made from regions and areas that are periodically affected by water stress, such as southern Spain, Italy and Latin America
• Water consumption in own operations is more limited
• The European Environment Agency (EEA) estimates that about a third of EU territory risks being affected by water stress

Governance and supplier requirements

ICA Gruppen's sustainability guidelines state that:

• Suppliers who use a significant amount of water in their operations must have a plan for the reduction of use and to ensure emissions with the lowest possible environmental impact
• Suppliers must comply with global management systems, such as the Alliance for Water Stewardship
• Suppliers of goods with significant water consumption must measure this water consumption
• There must be targets for the way in which consumption is to be reduced and monitored

Quantitative data

No quantitative water consumption, withdrawal, or discharge data is disclosed for ICA Gruppen's own operations or value chain.

The company states on page 113:

"Water consumption: Outcome for water consumption is not reported as water consumption is only assessed as material upstream."

Related targets

While no water-specific consumption targets are disclosed, the company has set targets for water-intensive raw materials:

Cotton (water-intensive crop):

• Target: 100% "More sustainable cotton" in ICA Gruppen's corporate brand products by 2025
• Outcome 2024: 42% in Sweden, 84% in the Baltics

Seafood:

• Target: 100% sustainability-certified seafood in ICA Gruppen's corporate brand products by 2025 (MSC, ASC or KRAV)
• Outcome 2024: 71% in Sweden, 36% in the Baltics

Transition plan and consideration of biodiversity and ecosystems in strategy and business model

Biodiversity in corporate strategy and business model

ICA Gruppen has followed the development of the TNFD and SBTN frameworks, and has begun to apply parts of them in work with the double materiality assessment.

To further these efforts, ICA Sweden also conducted workshops with its operations in autumn 2024 aimed at supplementing and developing the analysis of financial risks and opportunities linked to nature-related issues. The starting point for the workshops was the Company's dependency and impact on nature, based on the scenarios available in the TNFD guidance.

The dialogues confirmed that ICA Gruppen has material risks and dependencies, but also opportunities, related to biodiversity and ecosystem services. The results will be compiled and taken further as part of the development and deepening of ICA Sweden's double materiality assessment in all environmental areas, and in the preparation of an action plan for biodiversity.

In 2025, ICA Gruppen intends to clarify how the Group's and its companies' targets, strategies and action plans are consistent with respect for planetary boundaries and global/European frameworks to protect and restore biodiversity. Within ICA Sweden, work is also underway preparing targets and an action plan for biodiversity, in line with the Sustainable Food Chain's joint roadmap to 2030.

Specific biodiversity targets

Certified or sustainability-labelled high-risk ingredients

During the year work continued on identified high-risk ingredients in ICA Gruppen's corporate brand products. The aim is to have all identified high-risk ingredients certified by 2025. This requirement is based on third-party labelling for certified cultivation and sustainable sourcing, such as KRAV, EU organic, Fairtrade, MSC, ASC, Rainforest Alliance, RTRS, RSPO and GOTS.

ICA Gruppen has identified soy, palm oil, coffee, tea, cocoa, seafood, and cotton as prioritised high-risk ingredients, in part based on their impact on biodiversity and ecosystems. The aim is that these will be sustainability certified by 2025.

Share of products with sustainability label or certified raw material, percent

Deforestation

As part of efforts to further prevent deforestation in line with the Deforestation Regulation, ICA Sweden focused during the year on developing the ability of the business' traceability in relation to raw materials.

Organic products

Research shows that organic production has a beneficial effect on biodiversity, and promoting the sale of organic food is therefore an important component of ICA's efforts to reduce biodiversity loss.

ICA Gruppen has no quantified target for increasing the proportion of sustainability-certified goods in general, but presents the proportion of organic and sustainability-labelled goods:

Geographic and value-chain scope

The plan covers ICA Gruppen's corporate brand products across its operations in Sweden (ICA Sweden, Apotek Hjärtat) and the Baltics (Rimi Baltic).

The biodiversity work focuses on high-risk ingredients in the supply chain, with certification requirements based on third-party labelling for certified cultivation and sustainable sourcing.

Measuring and monitoring impacts on biodiversity from the grocery perspective is challenging, as the impact on ecosystems is mainly locally linked to raw material processing and production, while the assortment consists of a large number and variety of products and raw materials. The challenges relate both to access to geodata, for example, and to how this data flows and is aggregated in the food value chain.

Use of TNFD and other frameworks

ICA Gruppen has followed the development of the TNFD and SBTN frameworks, and has begun to apply parts of them in work with the double materiality assessment.

ICA Sweden conducted workshops in autumn 2024 aimed at supplementing and developing the analysis of financial risks and opportunities linked to nature-related issues. The starting point for the workshops was the Company's dependency and impact on nature, based on the scenarios available in the TNFD guidance.

Drawing inspiration from the methodology of the TNFD framework, comprehensive mapping of nature-related risks for ICA Sweden was initiated in autumn 2024. The identification of strategies for managing the mapped risks will continue in the coming financial year.

Linkage to nature-related risk assessment

The dialogues confirmed that ICA Gruppen has material risks and dependencies, but also opportunities, related to biodiversity and ecosystem services.

ICA Gruppen works with a number of defined high-risk ingredients based on the risk of negative impact on people or the environment, with sustainability certification being sought where such raw materials are used in ICA Gruppen's corporate brand products.

Comprehensive mapping of nature-related risks for ICA Sweden was initiated in autumn 2024 using the TNFD framework methodology. The identification of strategies for managing the mapped risks will continue in the coming financial year.

Climate risks were identified during the year in order to minimise the risk in property development.

Data and key performance indicators

ICA Gruppen participates in a number of different projects and initiatives to drive and develop transparency and access to data and metrics related to biodiversity. These include the European research programme CircHive, as well as RISE's work on developing a biodiversity database for food.

Supporting initiatives

Campaigns and product launches

During the year, a number of ICA stores participated in the "Eco-September" campaign organised by Organic Sweden, and ICA Sweden Falun was named Sweden's best Eco-September store. To increase knowledge about organic production within ICA Sweden's own operations, employees from ICA Sweden's purchasing organisation also participated in a study visit to a KRAV farm.

In September, organic meat was also launched in unit packs, to enable more consumers to choose organic in this category. The ambition in 2025 is to continue working to develop the assortment and offer commercial support to stores to promote increased sales of organic products.

Rimi is also seeking to promote the organic assortment, and took part in an autumn campaign organised by the Latvian Association for Organic Agriculture with in-store displays of organic products and information about organic production.

Local biodiversity initiatives

ICA offers a number of plants in its "Loved by Bees" assortment that are not only attractive to bees and other pollinators, but are also subject to especially stringent chemical requirements. During the year, the assortment was expanded to include varieties such as Lilac, Jasmine, Lavender and Dahlia, all grown in Sweden. Part of the revenue from the assortment goes to the ICA Stiftelsen foundation, where associations can apply for grants to create insect parks.

Rimi launched a partnership during the year with the start-up Goodbag, whereby Rimi's customers automatically collect "seeds" each time they bring a reusable bag to the store, which are then converted into tree plantings. The collaboration is implemented in partnership with environmental organisations in the three Baltic countries to ensure local contribution to biodiversity.

Impact metrics related to biodiversity and ecosystems change

Deforestation-related commitments

ICA Gruppen has committed through the Swedish Platform on Risk Commodities to demand more verified sustainable soy and palm oil by 2025, including in feed value chains. The company aims for all cocoa, coffee, palm oil and soy in ICA Gruppen's corporate brand products to be sustainability certified by 2025.

Product-specific requirements

• No products from red-listed species may be sold
• Palm oil and soy must be certified
• Wood must be FSC-labelled
• All corporate brand products made from tropical wood, including all charcoal, must be FSC-labelled

Property portfolio biodiversity measures

ICA Real Estate has a goal that all buildings in the property portfolio are environmentally certified by 2030. Environmental certification standards (Miljöbyggnad, Miljöbyggnad iDrift, BREEAM, BREEAM In-Use and NollCO2) require actions that take into account and develop the site and property's contribution to local ecosystems and biodiversity.

Miljöbyggnad standards include:

• Requirements to take into account site-specific values in design
• Calculation of green area factor
• Property management procedures to maintain and develop biodiversity and ecosystem services

Sustainability plans for all new construction projects include proposals for biodiversity and ecosystem services actions, which could include:

• Ensuring diversity in flora
• Stimulating pollination
• Surface water management

Climate and vulnerability analyses for properties

In 2024, climate and vulnerability analyses were conducted for 15 properties within ICA Real Estate's joint venture properties identified as high-risk. In 2025, the same analysis is planned for 22 owned properties and 4 joint venture properties.

Materiality assessment outcome

Impact materiality for biodiversity and ecosystems (E4) shows negative impacts across all Group companies:

Identified risks

The company identifies impacts throughout the value chain, primarily:

• Deforestation due to growing agricultural areas
• Large-scale cultivation of palm oil and soy destroying forests, grasslands and savannahs
• Use of agrochemicals with negative environmental and human health impacts
• Transformation of green spaces for warehouse, store and neighbourhood construction
• Impact on fishing and marine species affecting food chains and ecosystems

Note: No quantitative land use footprint (hectares), deforestation footprint (hectares converted), specific number of operations in protected areas/KBAs, or species impact metrics (number of Red List species affected) are disclosed.

Targets related to circular economy

Target 1: Food waste reduction

Target metric: Food waste from warehouses and stores

Target value: 50% reduction (halve food waste)

Target year: 2025

Baseline year: 2016

Baseline value: Not disclosed

Scope: Warehouses and stores in Sweden and the Baltics

Type: Not specified (absolute or intensity)

Methodology: Food waste is calculated as a percentage by weight, in line with the Food Loss & Waste Protocol (FLW Protocol)

Validation: Aligned with international standard (FLW Protocol)

Progress to date: Not disclosed

Target 2: Plastics - recyclability

Target metric: Plastic food packaging for ICA Gruppen's corporate brand products

Target value: 100% recyclable

Target year: 2025

Baseline year: Not disclosed

Baseline value: Not disclosed

Scope: ICA Gruppen's corporate brand products

Type: Not specified

Validation: In accordance with the grocery industry's plastics target

Progress to date: Not disclosed

Target 3: Plastics - material composition

Target metric: Plastic food packaging for ICA Gruppen's corporate brand products

Target value: 100% made from recycled or renewable raw materials

Target year: 2030

Baseline year: Not disclosed

Baseline value: Not disclosed

Scope: ICA Gruppen's corporate brand products

Type: Not specified

Validation: In accordance with the grocery industry's plastics target

Progress to date: Not disclosed

Target 4: Construction waste reduction (qualitative ambition)

Target metric: Construction waste in construction projects

Ambition: Reduce construction waste and increase the proportion of recycling and circularity (no quantified target disclosed)

Target year: Not disclosed

Baseline year: Not disclosed

Scope: ICA Real Estate construction projects

Type: Qualitative ambition - work with suppliers

Validation: Not disclosed

Progress to date: Not disclosed

Waste

Food waste in warehouses and stores

ICA Gruppen has set a target to halve food waste by 2025 compared with 2016. The target includes warehouses and stores in the Swedish and Baltic operations. The food waste is calculated in line with an international standard produced by the Food Loss and Waste Protocol (FLW Protocol).

Food waste performance (Group level):

Waste management approach

Preventative work is the focus of ICA's food waste agenda and includes data-driven methods to improve purchasing forecasts. However, sales and processing in stores as well as various types of partnerships to donate edible food to those in need also play an important role.

ICA Sweden has continued efforts to improve data collection and analysis to reduce waste, and Rimi Baltic has accelerated the pace of waste reduction both in stores and in warehouses through partnerships and data-driven solutions.

AI-powered waste reduction tools

At the end of 2024, some 120 ICA stores were connected to an AI-driven tool (Whywaste partnership) that provides store-specific, data-based recommendations in real time on how the store can prevent and reduce its food waste. Based on the waste reductions achieved, future reductions in waste are expected to be around 20–40% per store.

Rimi Baltic is using AI-driven tools to introduce automatic price reductions on goods approaching their expiration dates.

Downstream waste impacts

Downstream impacts include waste from packaging, used non-food products and construction waste. The report notes that "Waste from e.g. packaging, used non-food products and construction waste" is part of downstream impacts, but specific quantitative data for total waste generated across all categories is not disclosed.

Policies related to own workforce

ICA Gruppen discloses several policies and guidelines that relate to its own workforce under ESRS S1-1.

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Code of Conduct

Scope:

• Applies to all ICA employees, including all operating companies (OpCos)
• Applies to all employees, internal consultants, managers and Board members of ICA Gruppen and its direct or indirect subsidiaries or associated companies

Key content:

• Describes the core values, business principles and commitment to conducting sustainable operations that are responsible, efficient and transparent
• Consists of shared values and business principles

Governance:

• Adopted by the Board of Directors
• The Board endorses the Code of Conduct and makes revisions to it

Links to international standards:

• Not explicitly stated in the excerpts for the Code of Conduct itself

Public availability:

• Not explicitly stated in the excerpts

Monitoring:

• Monitored through ICA Gruppen's established process for monitoring compliance with policies and guidelines
• Non-compliance can be reported via ICA Gruppen's whistleblower service or to the immediate supervisor
• Employees who breach the Code of Conduct may be subject to disciplinary action up to and including dismissal

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People Policy

Scope:

• Applies to all employees in ICA Gruppen and in operating companies (OpCos)
• All ICA employees, including all operating companies

Key content:

• Describes the framework within which employees and managers must operate to live up to the shared values and to achieve the set targets
• Aims to create a work environment that supports employees in delivering good service to customers, while promoting a sustainable and healthy work-life balance
• Serves as a guide for behaviour, expectations and responsibilities
• Promotes a culture of respect, diversity and inclusion

Governance:

• Adopted by the Board of Directors
• Each CEO is responsible for the implementation of and compliance with this policy within their respective business
• Each member of the ICA Management Team is responsible for ensuring that work within ICA is conducted in accordance with this policy within their areas of responsibility

Links to international standards:

• Designed in accordance with international and local laws and regulations
• Aligned with the UN Guiding Principles on Business and Human Rights (UNGP)
• Aligned with the ILO Declaration on Fundamental Principles and Rights at Work
• Aligned with the UN Children's Rights and Business Principles
• Aligned with the OECD Guidelines for Multinational Enterprises

Public availability:

• Not explicitly stated in the excerpts

Monitoring:

• All employees are responsible for familiarising themselves, and acting in compliance, with the content of this governing document
• Employees who breach this policy may be subject to disciplinary action up to and including dismissal, depending on the facts and circumstances

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Sustainability Policy

Scope:

• All ICA Gruppen employees, suppliers and business partners are expected to follow the Sustainability Policy
• Covers the entire ICA Gruppen

Key content:

• Describes ICA Gruppen's overall position on sustainability matters over and above those requirements set through legislation
• Clarifies ICA Gruppen's positions on sustainability, including the principle of due diligence

Governance:

• Adopted by the Board

Public availability:

• Not explicitly stated in the excerpts

Monitoring:

• Not explicitly detailed in the excerpts

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Sustainability Guideline

Scope:

• Applies to all employees and operating segments
• Covers the entire ICA Gruppen

Key content:

• Describes ICA Gruppen's overall position on sustainability matters over and above those requirements set through legislation
• More detailed and operational with the aim of ensuring compliance with the policies
• Describes the requirements and rules that govern the activities
• Clarifies ICA Gruppen's positions on sustainability, including the principle of due diligence

Governance:

• Adopted by the ICA Gruppen Management Team
• The management team and managers are responsible for ensuring that the guidelines are known and complied with

Public availability:

• Not explicitly stated in the excerpts

Monitoring:

• Non-compliance can be reported via ICA Gruppen's whistleblower service, or to the immediate supervisor

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Health and safety guidelines

Scope:

• Not explicitly stated in the excerpts

Key content:

• Aims to promote health and prevent work-related injuries and ill health
• Sets out the visions, guidelines and targets for health and safety management
• Makes it clear that ICA offers safe and secure workplaces that enable a sustainable work life
• Promotes health and life balance, and fosters an open and inclusive work environment
• Covers continuous work to reduce work environment risks
• Health and safety management takes place in collaboration with employers, employees and safety officers

Governance:

• The management team and managers are responsible for ensuring that the guidelines are known and complied with

Public availability:

• Not explicitly stated in the excerpts

Monitoring:

• Non-compliance can be reported via ICA Gruppen's whistleblower service, or to the immediate supervisor

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Remuneration guidelines for senior executives

Scope:

• Applies to senior executives

Key content:

• Aims to ensure that remuneration promotes the business strategy, long-term interests and sustainability of the Company and the Group
• The Group strives to offer its senior executives terms and conditions that are market-based and motivating as well as well-balanced and reasonable in relation to the executives' skills, responsibilities and performance

Governance:

• Determined by the Board
• Prepared by the Remuneration Committee

Public availability:

• Not explicitly stated in the excerpts

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Alcohol and drug guidelines

Scope:

• All employees working at ICA Gruppen's workplaces

Key content:

• States that no one may be under the influence of alcohol or drugs at work
• Includes procedures in case of suspected abuse and/or positive results for alcohol and/or drug use
• Goal is to react and act early when appropriate
• Employees with problems should dare to seek support and help

Governance:

• The management team and managers are responsible for ensuring that the guidelines are known and complied with

Monitoring:

• To ensure that no one is under the influence of alcohol or drugs at work, alcohol and drug tests are performed
• ICA Gruppen follows the negotiation process and collaborates with trade unions when conducting alcohol and drug tests
• Everyone working at ICA Gruppen's workplaces must be prepared to undergo drug and alcohol testing

Public availability:

• Not explicitly stated in the excerpts

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Business Ethics Guideline

Scope:

• All employees, internal consultants and board members within ICA must comply with ICA Gruppen's Business Ethics Guideline

Key content:

• Describes ICA Gruppen's business principles and anti-corruption guidelines, including how to approach gifts and benefits, conflicts of interest and fair competition

Governance:

• Approved by the CEO
• Members of the ICA Management Team are responsible for ensuring that the Group's Business Ethics Guideline is implemented in their respective areas of responsibility
• Managers within the Group are in charge of oversight and compliance

Public availability:

• Not explicitly stated in the excerpts

Monitoring:

• All employees are responsible for familiarising themselves with the content of ICA's governing documents and acting in compliance with them
• ICA Gruppen provides internal online training to ensure that all employees are familiar with the Business Ethics Guideline and act accordingly
• The training is mandatory for all salaried employees within the Group
• The number of employees who have completed the online training is monitored and reported internally to the Board
• Classroom-based courses are provided to the groups of employees who are the most exposed to business conduct dilemmas
• Employees also have access to local information through a digital platform for information and training in the area of business conduct

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Data Protection Policy

Scope:

• Covers the entire ICA Gruppen

Governance:

• Adopted by the Board

Key content:

• Not explicitly detailed in the excerpts

Public availability:

• Not explicitly stated in the excerpts

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Communication Policy

Scope:

• Covers the entire ICA Gruppen

Governance:

• Adopted by the Board

Key content:

• Not explicitly detailed in the excerpts

Public availability:

• Not explicitly stated in the excerpts

Taking action on material impacts on own workforce

Random alcohol and drug testing

What it does: Extension of random drug and alcohol testing to all workplaces and all employees in Sweden.

Scope: Own operations (Sweden)

Time horizon: Started in 2024

Resources allocated: Not disclosed

Expected outcomes/KPIs: Not disclosed

Link to policy/target: Not explicitly linked

Prevention of threats, violence and harassment

What it does: Special focus on training initiatives for managers in Apotek Hjärtat with a focus on safety and security for pharmacy employees, in response to increasing threats, harassment and unpleasant behaviour with racist overtones in pharmacies.

Scope: Own operations (Apotek Hjärtat)

Time horizon: Ongoing

Resources allocated: Not disclosed

Partnerships: Collaboration with Apoteksföreningen (the Swedish Pharmacy Association)

Expected outcomes/KPIs: Not disclosed

Link to policy/target: Related to security risk management

Diversity and inclusion initiatives

What it does: Multiple initiatives to create and support an inclusive and diverse culture:

• Launch of new digital inclusion training course
• New training programme for teams based on complementary teams concept that benefits from collective strengths

Scope: Own operations

Time horizon: Ongoing (continued during the year)

Resources allocated: Not disclosed

Expected outcomes/KPIs: Not disclosed

Link to policy/target: Not explicitly linked

Talent development programmes

What it does: Multiple talent development programmes:

• Specific talent programmes for future pharmacy managers at Apotek Hjärtat
• Specific talent programmes for future group managers at ICA Logistics
• Several initiatives to develop talent for more senior leadership positions
• Updated framework for talent development for the most critical leadership roles (tested during the year)

Scope: Own operations

Time horizon: Continuous

Resources allocated: Not disclosed

Expected outcomes/KPIs: Build talent for pharmacy manager and group manager roles

Link to policy/target: Related to gender balance in critical positions target (50% ±10% women)

AI upskilling - AI Greenhouse

What it does: Launch of the AI Greenhouse concept, offering all employees ways to enhance their AI skills and shape their own learning journey in AI.

Scope: Own operations (all employees regardless of role)

Time horizon: Launched during 2024

Resources allocated: Not disclosed

Expected outcomes/KPIs: Understanding of AI possibilities, implications for roles, and how to benefit from the technology

Link to policy/target: Strategically important area for ICA Gruppen

Goals, Accountability and Personal Development (MAP) dialogue

What it does: Annual development dialogue programme implemented across the company.

Scope: Own operations

Time horizon: Annual

Resources allocated: Not disclosed

Expected outcomes/KPIs:

• Target: Implementation rate of at least 90%
• Outcome 2024: Sweden white collar 89%, Baltics 72%, Asia 100%

Link to policy/target: Explicit target of 90% implementation rate

Security procedures and support for stores

What it does: In-house security procedures with multiple components:

• Strengthened background checks during recruitment
• Processes to detect and reduce risk of improper influence
• Review and strengthening of processes to prevent organised crime use of ICA structures
• New training programmes for stores
• Advanced support when sudden incidents occur

Scope: Own operations

Time horizon: Ongoing

Resources allocated: Not disclosed

Partnerships: Collaboration with Group companies and ICA-handlarnas Förbund

Expected outcomes/KPIs: Reduce employee exposure to threats and violence; improve wellbeing and security

Link to policy/target: Related to security risk management and employee safety

In 2024, ICA Gruppen had around 27,000 employees, mainly in Sweden and the Baltic countries. Converted to full-time equivalents (FTEs) on an annual basis, the average number of employees was 23,891 (23,900).

ICA Sweden

Diversity metrics

Gender distribution on the Board and among senior executives

Note: Gender distribution on the Board refers to the AGM-elected members and not the employee representatives.

Gender distribution by management level

| Gender distribution, % | 2024 | 2023 | 2022 | |---|---|---|---|---| | | Men | Women | Men | Women | Men | Women | | Total¹ | 34 | 66 | 34 | 66 | 34 | 66 | | All management levels | 29 | 71 | 27 | 73 | 28 | 72 | | Business-critical positions | 47 | 53 | 47 | 53 | 52 | 48 | | Board and IMT | 64 | 36 | 65 | 35 | 64 | 36 |

¹ Outcome based on full-time equivalents (FTE).

High management gender distribution (2024)

| High Management¹ | Head count | Percentage | |---|---|---|---| | | Men | Women | Men | Women | | ICA Gruppen total | 31 | 34 | 48 | 52 |

¹ High Management refers to ICA Management Team and the level below.

Age distribution (2024)

All employees, 2024, %

• <30 years: 19%
• 30–50 years: 50%

• 50 years: 31%

Board and ICA Management Team, 2024, %

• <30 years: 0%
• 30–50 years: 36%

• 50 years: 64%

ICA Management Team remuneration (2024)

¹ The amounts presented in the table also include remuneration for which a provision was made in 2023 but that was paid out in 2024. This remuneration includes salary, benefits, pension costs and severance pay for individuals with whom agreements were signed in 2023 regarding ending their employment.

Adequate wages

ICA Gruppen identifies adequate wages as a material negative impact in its value chain under S2 (Workers in the Value Chain). The topic is listed in the materiality assessment tables with negative impact across ICA Sweden, Rimi Baltic, Apotek Hjärtat, and ICA Real Estate operations.

Disclosure in value chain context

The company acknowledges challenges in the supply chain related to "unfair wages" particularly affecting women and migrant workers in primary production. The report states:

"There are challenges in the supply chain in terms of compulsory overtime and unfair wages, with a particular impact on women and migrant workers in primary production."

ICA Gruppen requires suppliers to guarantee "fair wages" through its Code of Conduct and sustainability appendices. The guidelines state:

"Workers at suppliers are to be guaranteed fair wages, freedom of association, working hours and the right to vacation and leave."

Minimum wage reference (Rimi Baltic)

The only quantitative wage reference in the excerpts relates to Rimi Baltic operating expenses, mentioning "personnel expenses arising from higher minimum wages" but this appears to be a market commentary on cost increases rather than a disclosure of wage adequacy assessment.

Benchmark and methodology

No living wage benchmark is disclosed. The company references "fair wages" and compliance with supplier requirements but does not specify:

• Use of any external living wage benchmark (Fair Wage Network, WageIndicator, Anker Methodology, etc.)
• Internal living wage calculation methodology
• Assessment of wage adequacy against basic living needs
• Coverage percentage of workforce assessed
• Geographic scope of any wage assessment

Targets and commitments

No forward-looking targets or commitments related to adequate wages or living wage coverage are disclosed in the excerpts.

Value chain coverage

The adequate wages materiality applies to workers in the value chain (S2) rather than own workforce, with focus on suppliers in high-risk countries. However, no specific wage assessment data, coverage percentages, or geographical scope are provided.

Social protection

ICA Gruppen provides limited disclosure on social protection coverage for employees in the ESRS S1-11 sense.

Food insurance for bank customers

The company discloses a food insurance plan launched in January 2024, included in the card fee for approximately 600,000 bank and credit card customers. This insurance provides:

• Coverage for loss of income due to sick leave or unemployment
• Benefit amount: up to SEK 10,000 to shop at ICA and Apotek Hjärtat
• Described as unique in the Swedish market

This insurance appears to cover bank customers rather than employees specifically, and the disclosure does not indicate percentage coverage of the employee workforce, scheme type (public/private), country breakdown, or exclusions for employee populations.

Persons with disabilities

No quantitative data on the percentage of employees with disabilities is disclosed.

The excerpts mention qualitative initiatives related to disabilities:

• Rimi Baltic's work on disabilities and handicaps was recognized at the Annual Award for Supporting People with Disabilities, organized by the disability organization Apeirons
• Rimi Baltic's diversity work was recognized by the Society Integration Foundation and the Agency for the Protection of the Rights of Persons with Disabilities
• ICA Gruppen's diversity and inclusion initiatives included the launch of a new digital inclusion training course and training programmes for teams based on complementary teams

No specific metrics, methodology for identification, or country exclusions are provided.

Health and safety metrics

Coverage by health and safety management system

Fatalities

Work-related injuries and ill health

¹ Excluding Lithuania.

Sickness-related absence

¹ Corrections have been made to the previous year's figures.

Reporting principles

The number of fatalities, the number of work-related injuries and the number of cases of recordable work-related ill health refers to the number of cases reported as of the end of the year in the Incident Reporting System (HIA), excluding Apotek Hjärtat and IGS, which refers to the number of cases reported manually, and the Baltic operations where the number of cases are reported in SAP Kronos. Sickness-related absence is calculated as the number of hours of sickness-related absence in relation to the number of scheduled working hours. Sickness-related absence is calculated on a rolling 12-month basis up to and including November of the current year.

Work-life balance metrics

Entitlement to family-related leave

Coverage: ICA Gruppen total

Percentage of employees that took family-related leave

Note: Excluding care of relatives.

Breakdown of family-related leave taken by gender

Note: Excluding care of relatives.

Return-to-work rates

Not disclosed.

Methodology notes

Percentage of employees that took family-related leave refers to the number of employees who took some form of family-related leave during the year. Data excludes care of relatives.

Compensation metrics

Pay gap

Gender pay gap by country (2024)

The difference in average pay levels between female and male employees, expressed as a percentage of the average pay level of male employees. For example, a value of 5% should be interpreted as women having an average salary level of 5% lower than men, while a value of –5% should be interpreted as women having an average salary level of 5% higher than men.

Note on Latvia: The gender pay gap in Latvia is influenced by two drivers. Firstly, as there are less men than women in store jobs, average salary for men is influenced by a smaller relative impact by store salaries. Secondly, in office key expertise and leadership jobs, where Latvia has a high number due to regional HQ location, the relative portion of men is comparable to that of women, impacting the total average.

Remuneration ratio

Annual total remuneration ratio (2024)

The annual total remuneration ratio of the highest paid individual in relation to the average annual total remuneration for all employees.

Methodology

The pay gap refers only to salary and the calculation is based on the salary structure after salary audits in 2024. Data is taken from the payroll and HR system with the current status in October for Swedish operations and in December for Baltic operations.

The annual total remuneration ratio is calculated as the annual total remuneration of the highest paid individual to the average annual total remuneration for all employees.

Taking action on material impacts on value chain workers

The excerpts provided contain limited information specifically on actions taken on material impacts on value chain workers. The following approaches are mentioned:

Implementation and governance measures

a. Implementation of requirements in ICA Gruppen's Sustainability Guideline - including:

• Sector-specific guidelines
• Sustainability appendices for suppliers
• Product requirements for ICA Gruppen's corporate brand products
• ICA Sweden's Store Policy
• Scope: Upstream value chain (suppliers) and own operations

b. Collaboration in the industry and value chain

• Including relevant NGOs
• Scope: Value chain collaboration

c. Direct dialogue with suppliers

• Engagement with suppliers and suppliers' trade associations
• Supplier audits where appropriate
• Scope: Upstream value chain

d. Setting relevant strategies, targets and KPIs

• For reducing negative impact, with examples given for:
  • Climate impact (pages 94–102)
  • Food waste (pages 119–123)
  • Percentage of certified high-risk ingredients in ICA Gruppen's corporate brand products (pages 115–117)

Resources allocated

No specific financial resources (capex/opex amounts) or non-financial resources (people, partnerships) are quantified in the provided excerpts for actions on value chain workers.

Time horizons and outcomes

No specific time horizons or expected outcomes are disclosed in the provided excerpts.

Taking action on material impacts on affected communities

Local community initiatives

Scope and description:

• The ICA stores have an important role to play in their local communities
• Community engagement and substantial focus on expanding the range of local products are helping to build trust in ICA as a good member of society
• ICA Gruppen's collective efforts to support refugees and vulnerable groups in society – centrally, at individual retailers and through fundraising from customers

Type of impact:

• Identified as positive impact in materiality assessment
• Categorized under "Communities' economic, social and cultural rights" (S3)

Value chain scope:

• Own operations (ICA stores)
• Community-level engagement

Resources allocated:

• Not quantified in the excerpts
• Involves central resources, individual retailers, and customer fundraising

Expected outcomes:

• Build trust in ICA as a good member of society
• Support for refugees and vulnerable groups

Adequate food provision

Scope and description:

• Significant opportunities linked to ICA Gruppen's ability to provide communities in its domestic markets with groceries, services and utilities based on its store and pharmacy network in Sweden, Estonia, Latvia and Lithuania
• Strategic focus areas include reducing food waste, lowering climate impact, innovation within product assortment, and encouraging people to eat more fruit and vegetables

Value chain scope:

• Own operations (store and pharmacy network)
• Downstream impact

Resources allocated:

• Not quantified in the excerpts

Expected outcomes:

• Ensure access to groceries, services and utilities across domestic markets
• Improve food quality and nutrition

Policies related to consumers and end-users

ICA Gruppen has several policies and guidelines that relate to consumers and end-users, though the disclosure does not always specify complete governance details for each policy.

Sustainability Policy

• Scope: Applies to all employees and operating segments. The sustainability guidelines for grocery retail and pharmacies clarify positions in the overall Sustainability Policy and apply to ICA Sweden, Rimi Baltic and Apotek Hjärtat.
• Key content: Defines the framework for governance of sustainability matters, including the principle of due diligence. The policy addresses material impacts, risks and opportunities related to consumers.
• Approval and oversight: The Board of Directors receives an annual review of ICA Gruppen's double materiality assessment and how material impacts, risks and opportunities are managed in policies, strategies and goals. The Chief Corporate Responsibility Officer is responsible for providing information to the Board.
• Linkage to international standards: Due diligence work follows the OECD Due Diligence Guidance for Responsible Business Conduct.
• Monitoring: The work is continuously followed up and evaluated through KPIs and dialogue forums. The mapping of ICA Gruppen's impact and actions are reported annually in sustainability statements.

Data Protection Policy

• Scope: Applies across the Group.
• Key content: Describes the Company's objectives for data protection work, ICA's guiding principles and the GDPR's basic principles. The policy states that the Company shall have an organisation for data protection governance and management as well as systematic data protection management to enable compliance.
• Approval and oversight: The Data Protection Committee monitors compliance, advises on risk management and is responsible for long-term strategy. The Chief Privacy Officer reports on data protection work regularly to the ICA Management Team. CEOs of ICA companies are responsible for implementing the policy.
• Monitoring: Compliance is monitored through the Data Protection Committee and Privacy Office. The Company has a process based on ISO 27035 for dealing with personal data breaches.

ICA Bank's instruction for sustainability work

• Scope: Based on ICA Gruppen's Sustainability Policy.
• Key content: The Bank must strive to encourage customers to make sustainable choices and enable economic activities that create increased prosperity for current and future generations. Specific provisions include:
  • Applying good lending practices to reduce the risk of over-indebtedness
  • Having fair and sound forbearance management in the event of payment difficulties
  • Having a fair, sound and effective complaint handling system
  • Working actively to prevent money laundering and terrorist financing
  • Working actively to prevent customers from being exposed to fraud
  • Informing and providing advice on sustainability and sustainable choices
• Linkage to international standards: Based on the UN Principles for Responsible Banking (PRB), which ensure signatory banks align their strategy and practice to contribute to the Sustainable Development Goals and the Paris Agreement.

ICA Handlarnas Förbund's Store Policy

• Scope: Applies to ICA stores in Sweden.
• Key content: Emphasizes that the ICA store's information and communication must be factual, correct and relevant. Customers should be treated well and have their views taken into account. Sets out how stores should act in relation to sale of age-restricted products. All ICA stores must comply with the Swedish standard for food handling in stores.

Code of Conduct

• Key content: Defines the basis for conducting business with ICA Gruppen and internally within ICA Gruppen. Suppliers and partners are expected to follow the Code and act ethically and responsibly.
• Monitoring: Online training is provided to all salaried employees within the Group to ensure familiarity with business ethics and the Code of Conduct.

Communication Policy

• Listed among ICA Gruppen's policies but specific content related to consumers not detailed in the excerpts.

Product-specific requirements and sourcing agreements

• Scope: All product categories for ICA Gruppen's corporate brand products.
• Key content: In addition to general requirements in the sustainability appendix to sourcing agreements, product-specific requirements apply regarding product safety, chemicals, environmental considerations and sustainability certification of specific raw materials. Requirements include:
  • Corporate brand food suppliers must be third-party certified to a product safety standard approved by the Global Food Safety Initiative (GFSI)
  • Suppliers of cosmetics and hygiene products must be certified to BRC Global Standard Consumer Products or equivalent
  • Standards include food safety management systems, HACCP and good manufacturing practices
• Monitoring: Quality tests and follow-up inspections are carried out regularly. Routines include risk-based sample testing and examination of products to ensure compliance with product specifications and internal requirements.

Swedish standard for food handling in stores

• Scope: Applied by Swedish ICA stores. Rimi Baltic uses its own standards based on Swedish standards covering all store formats in Estonia, Latvia and Lithuania.
• Key content: Guidelines for quality management systems and certification of suppliers. Based on industry guidelines 'Säker Mat i din butik' (Safe Food in your store), approved by the Swedish National Food Agency.
• Monitoring: Continuous internal audits of stores are conducted regarding food handling. Each ICA retailer is responsible for ensuring employees have required knowledge through continuous training.

Animal welfare requirements

• Scope: ICA Sweden sets standards for Swedish and imported meat for both private label and other supplier products. In 2024, Rimi Baltic developed an animal welfare policy.
• Key content: Requirements based on Swedish animal welfare legislation. Animals must be treated well, protected from unnecessary suffering and kept in an environment that promotes their health and natural behaviour. Suppliers of fresh and frozen meat must be approved following an animal welfare audit.
• Monitoring: Audits conducted by ICA Sweden's quality specialists or third parties to verify how animals are reared, treated during transport and slaughter.

Medical product safety provisions

• Scope: Applies to Apotek Hjärtat.
• Key content: Apotek Hjärtat shall offer medicines in a safe manner while promoting effective and cost-efficient use. The pharmacy's mission is to provide responsible supply of medical products and basic pharmaceutical advice, including pharmacological assessment of prescriptions to identify risks. All pharmaceuticals are subject to quality assurance by the Swedish Medical Products Agency.
• Monitoring: Products go through quality control performed by Apotek Hjärtat before being added to the assortment.

Business conduct policies and corporate culture

ICA Gruppen's business conduct is governed by several Group-wide policies and guidelines that promote a sound corporate culture, responsible supplier relations, and prevention of corruption throughout the value chain.

Code of Conduct

Scope: All employees, internal consultants, managers, and Board members within ICA Gruppen and its direct or indirect subsidiaries or associated companies. Suppliers and business partners are also expected to follow this.

Approval and oversight: Endorsed by the Board of Directors (makes revisions as needed).

Key content: Describes core values (simplicity, commitment, entrepreneurship), business principles, and commitment to conducting sustainable operations that are responsible, efficient, and transparent. Establishes fundamental requirements where non-compliance could entail serious consequences for the Group.

Public availability: Available at icagruppen.se (referenced in context of whistleblowing service).

International standards: Aligned with UN Global Compact, UN Guiding Principles on Business and Human Rights (UNGPs), ILO Declaration on Fundamental Principles and Rights at Work, UN Children's Rights and Business Principles, and OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. Also complies with the Code of Business Conduct from the Swedish Anti-Corruption Institute.

Implementation: Launched and implemented during 2024. Applies across all ICA Gruppen companies.

Sustainability Policy

Scope: All ICA Gruppen employees, suppliers and business partners.

Approval and oversight: Decided by the Board of Directors. CEO has ultimate responsibility for sustainability matters within the Group, with day-to-day management delegated to the Chief Corporate Responsibility Officer (part of ICA Management Team).

Key content: Describes ICA Gruppen's overall position on sustainability matters over and above legislative requirements. Clarifies the principle of due diligence.

International standards: Based on UN Global Compact and its ten principles on human rights, labour, environment and anti-corruption, UN Sustainable Development Goals, and ICA Gruppen's internal policies.

Implementation: The ICA Management Team (IMT) is tasked with developing and monitoring the Group's application of the Sustainability Policy. Application is supported by a management team for sustainability (CR Group Management).

Sustainability Guideline

Scope: Entire ICA Gruppen. Adopted by the ICA Gruppen Management Team.

Key content: Makes concrete the positions in ICA Gruppen's overall Sustainability Policy. Implementation is required through sourcing agreements with sustainability appendices.

Sector-specific guidelines: Business-specific governing documents exist, including Sustainability Guidelines for grocery retail and pharmacies (applies to ICA Sweden, Rimi Baltic, and Apotek Hjärtat).

Implementation: Suppliers must have a due diligence process to ensure negative impacts on human rights, climate and environment are identified and proactively addressed. Requirements are communicated through sustainability appendices to sourcing agreements.

Business Ethics Guideline

Scope: All employees, internal consultants and board members within ICA Gruppen.

Approval and oversight: Approved by the CEO. ICA Gruppen's legal department prepares matters related to business conduct. Members of ICA Management Team are responsible for ensuring implementation in their respective areas.

Key content: Describes ICA Gruppen's business principles and anti-corruption guidelines, including how to approach gifts and benefits, conflicts of interest, and fair competition. States that neither ICA Gruppen nor its management accepts any form of bribery.

Public availability: Not specified.

International standards: Based on external frameworks including applicable laws and regulations, industry practice, UN Global Compact, UN Guiding Principles on Business and Human Rights, ILO's core conventions, OECD Guidelines for Multinational Enterprises, and the Code of Business Conduct (Swedish Anti-Corruption Institute).

Implementation: Mandatory online training for all salaried employees within the Group. Supplemented with classroom-based courses for employees most exposed to business conduct dilemmas. Compliance is monitored through established processes and reported to the Board. Employees have access to a digital platform for information and training. Number of employees who completed training is monitored and reported internally to the Board.

People Policy

Scope: All employees in ICA Gruppen and in operating companies (OpCos).

Approval and oversight: Each CEO is responsible for implementation and compliance within their respective business. ICA Management Team members are responsible for ensuring work is conducted in accordance with the policy within their areas. All employees are responsible for familiarising themselves and acting in compliance.

Key content: Describes the framework for employees and managers to live up to shared values and achieve set targets. Aims to create a work environment supporting sustainable work-life balance while promoting health. Serves as guide for behaviour, expectations and responsibilities, promoting respect, diversity and inclusion.

International standards: Designed in accordance with international and local laws and regulations. Aligned with UN Guiding Principles on Business and Human Rights (UNGP), ILO Declaration on Fundamental Principles and Rights at Work, UN Children's Rights and Business Principles, and OECD Guidelines for Multinational Enterprises.

Implementation: Breach of policy may result in disciplinary action up to and including dismissal. Supported by health and safety guidelines and alcohol and drug guidelines.

Other Governing Documents

Communication Policy: Ensures external communication is transparent, accurate, relevant and reliable, meeting requirements for companies with listed securities. Financial information provided through annual reports, interim reports, press releases and website.

Data Protection Policy: Related to data protection.

Insider Policy: Addresses insider trading regulations.

Tax Policy: Governs tax matters.

Risk Management Policy: Establishes acceptable risk levels and reporting procedures.

Finance Policy: Governs financial matters.

Authority and Approval Policy: Ensures clear decision paths and distributed responsibilities.

Information Security Policy and Guideline: Protects assets from threats, ensures business continuity and meets regulatory requirements.

Governance and Oversight Structure

Board of Directors: Determines sustainability focus, has established a Sustainability Committee to support work in responsible business conduct, quality-assure sustainability reporting and governing documents, and follow up on business conduct efforts. Receives annual review of double materiality assessment and how material impacts, risks and opportunities are managed.

Sustainability Committee: Prepares strategic matters relating to responsible business conduct, quality-assures sustainability reporting and governing documents, follows up on business conduct and sustainability efforts. In 2024, addressed climate risks, business plans for reducing climate impact, net zero targets alignment with Science Based Targets, and climate transition plan.

CEO and ICA Management Team: CEO has ultimate responsibility for sustainability matters. Day-to-day management delegated to Chief Corporate Responsibility Officer (part of IMT). IMT develops and monitors application of Sustainability Policy, proposes new/revised policies to Board, suggests sustainability priorities, monitors management of material impacts/risks/opportunities, and receives annual review of double materiality assessment.

Whistleblowing: Online whistleblowing service (WhistleB) available for employees and others subject to Sweden's whistleblower act to anonymously report irregularities. Available via icagruppen.se and through dedicated internal channels for companies in Sweden, Baltic countries and Asia. Workers at suppliers in Vietnam, Türkiye, Bangladesh, India and Cambodia subject to amfori BSCI audits have access to "amfori Speak for change" grievance mechanism.

ICA Accountability Committee: Jointly created by ICA Gruppen and ICA-handlarnas Förbund to address matters relating to commitments and responsibilities of ICA retailers. Can issue reminders, warnings, and expel members. In 2024, expelled a retailer for the first time due to serious health and safety concerns.

Integration with Business Strategy

Sustainability priorities are integrated with overall Group strategy (Ambition 2030). Performance requirements linked to climate targets comprise 15% of long-term bonus programmes for reducing greenhouse gases in ICA Gruppen's value chain.

Supplier Requirements

Sourcing Agreements with Sustainability Appendices: All sourcing agreements include sustainability appendices compiling ICA Gruppen's requirements for suppliers and partners. Include requirements on environmental and social aspects, anti-corruption, and reference to product-specific requirements. Suppliers must communicate requirements to subcontractors and inform ICA Gruppen of subcontractors involved. ICA Gruppen has right to visit or audit suppliers. In case of non-compliance, suppliers must provide detailed written description of breach.

Product-Specific Requirements: Apply for all product categories (e.g. product safety, chemicals, environmental considerations, sustainability certification of raw materials). Requirements vary slightly between operating companies but are largely common for products offered by multiple OpCos.

High-Risk Country Suppliers: All ICA Gruppen corporate brand suppliers in high-risk countries (defined per amfori BSCI definition based on political stability, regulatory quality, rule of law, corruption control, government effectiveness) must be checked and approved. In 2024, 95% of suppliers in high-risk countries had undergone social audit and 92% had approved social re-audit. Four supplier agreements were terminated in 2024 due to non-compliance with human rights requirements or failure to make necessary improvements.

Due Diligence

ICA Gruppen applies OECD Due Diligence Guidance for Responsible Business Conduct:

1. Positions clarified in Sustainability Policy and Guideline
2. Impact analysis conducted as part of double materiality assessment
3. Actions to cease, prevent and mitigate adverse impacts include implementation of requirements, collaboration in industry and value chain, direct dialogue with suppliers and audits where appropriate, and setting relevant strategies, targets and KPIs
4. Continuous follow-up through KPIs and dialogue forums/partnerships
5. Mapping and actions reported annually in sustainability statements
6. Ambition to collaborate and remediate negative impacts when necessary; procedures to be clarified in coming years

Animal Welfare

ICA Sweden: Sets standards for Swedish and imported meat for private label and other suppliers' products, based on Swedish animal welfare legislation. All fresh and frozen meat suppliers in central assortment approved following animal welfare audit. Does not sell eggs from caged hens in central assortment. Conducted one animal welfare audit in 2024. Ongoing discussions with chicken suppliers regarding slow-growing breeds and monitoring development of purchasing criteria. Chose not to support European Chicken Commitment (ECC) as it omits general requirement for outdoor access.

Rimi Baltic: Developed animal welfare policy in 2024 defining requirements and expectations for assortment. Policy forms basis for education in sourcing organisation and with suppliers. Working toward transition to cage-free eggs; initiated activities including open meeting with producers and animal rights organisation, began phasing out eggs from caged birds in thirteen centrally located stores, and conducted social media awareness campaign.

Compliance with Legislation

Act on Prohibition of Unfair Trading Practices: ICA Gruppen complies with Act (2021:579) protecting suppliers of agricultural and food products from unfair trading practices. Key provisions include payment within 30 days, prohibitions on late order cancellations and unilateral changes to terms.

Payment Practices: Complies with Interest Act (Section 2a: claims due within 30 days unless otherwise agreed), Code of Conduct for Swedish SME companies (30-day payment terms for SMEs), and reporting requirements on payment times for companies with fewer than 250 employees.

Competition Regulations: Management of supplier relationships ensures adherence to competition regulations given ICA Gruppen's market position.

Political Engagement

ICA Gruppen maintains contacts with relevant decision-makers through dialogue to inform about consequences of proposed policies and legislation. Transparent approach showing components of ICA system to increase understanding. Collaboration primarily through Svensk Handel (Swedish Commerce) and Swedish Food Retailers Federation in Sweden, and EuroCommerce and Independent Retail Europe at European level. Included in EU Transparency Register. Non-partisan; does not make financial or other donations to political parties.

Training and Communication

Board of Directors, CEO and IMT receive regular training in prioritised sustainability areas related to identified impacts, risks and opportunities. 2024 focus areas: updated climate targets based on Science Based Targets, climate transition plan, increased traceability requirements (Deforestation Regulation and Corporate Sustainability Due Diligence Directive).

Monitoring and Reporting

Annual review to Board of double materiality assessment and how material impacts, risks and opportunities are managed. IMT receives annual review plus regular updates on progress toward shared sustainability goals. Chief Corporate Responsibility Officer responsible for providing information to both Board and IMT. Results of materiality assessment communicated to relevant Group functions (finance, strategy, risk). Internal Control function to implement processes for monitoring sustainability reporting in 2025. Internal Audit performs risk-based assessment of effectiveness and reliability of internal governance and controls.

Risk Management

Significant risks in supply chain: corruption and bribery, non-compliance with environmental and social standards, and animal welfare requirements. Complex supply chains often involve suppliers in high-risk countries with elevated corruption risk. Sound business culture important both upstream and downstream (independent ICA-retailers).

Incidents and Actions

One attempted bribery case confirmed at supplier in ICA Global Sourcing (IGS) in 2024, followed up with action plan. In 2024, ICA Accountability Committee expelled ICA retailer for first time due to serious health and safety concerns. 36 total whistleblower cases received in 2024, of which 6 classified as whistleblower cases by law.

Incidents of corruption or bribery

Confirmed incidents

ICA Gruppen reports incidents of corruption or bribery only for its operations in Asia, within ICA Global Sourcing (IGS).

In 2024, IGS confirmed one case of attempted bribery at a supplier. The incident was followed-up with an action plan.

Convictions and fines

Not disclosed.

Disciplinary actions

Not disclosed.

Contracts terminated

In 2024, ICA Gruppen decided to terminate agreements with four suppliers because they did not meet the Group's requirements on human rights or they had not made the necessary improvements since the first audit.

Investigation procedures and speak-up mechanisms

Whistleblower service: ICA Gruppen's online whistleblower service allows employees and other people subject to Sweden's whistleblowing law to anonymously report any irregularities that they believe contravene laws or rules applicable to the business. Anyone at ICA Gruppen can raise concerns about irregularities without risking any negative reaction from the company. The service is available – via internal separate whistleblower channels – for ICA Gruppen's companies in Sweden, the Baltic countries and Asia.

Confidentiality and independence characterize any investigations of reported incidents.

The whistleblower service has clear procedures and processes for how to handle any issues reported.

Whistleblower cases reported:

Workers in the value chain have the opportunity to report irregularities through the whistleblower service, WhistleB, which is available at icagruppen.se.

Workers at ICA Gruppen's suppliers in Vietnam, Türkiye, Bangladesh, India and Cambodia that are subject to amfori BSCI audits have access to the "amfori Speak for change" grievance and redress mechanism.

Political influence and lobbying activities

Political engagement approach

ICA Gruppen has an interest in maintaining good contacts with decision-makers relevant to the different operations within the Group. Through dialogue, decision-makers are made aware of the consequences of proposed policies and planned legislation.

A key element of this work entails being transparent and showing the various components of the ICA system, from warehouses and logistics to the retailer-owned stores, to thereby increase knowledge and understanding of ICA Gruppen's operations as well as their preconditions and social function. A large part of this work is performed in collaboration with sector and business associations at national and European level.

ICA Gruppen is non-partisan.

Trade association memberships

In Sweden, the Group mainly collaborates within:

• Svensk Handel (Swedish Commerce)
• Swedish Food Retailers Federation
• Svenskt Näringsliv (Confederation of Swedish Enterprise)

At European level, collaboration with others takes place through:

• EuroCommerce
• Independent Retail Europe

Note: No membership fees or dues amounts are disclosed.

EU Transparency Register

ICA Gruppen is included in the EU Transparency Register, which lists organisations that seek to influence legislation and policy implementation of EU institutions through dialogue and meetings with legislators. In the case of ICA Gruppen, this mainly concerns Swedish Members of the European Parliament.

Political contributions

ICA Gruppen does not make financial or other donations to political parties.

Materiality context

The materiality assessment identifies political engagement and lobbying activities as financially material (risk). The impact of political decisions on ICA Gruppen's operations means that political influence and lobbying – by the Group itself or through industry organisations – are clearly linked to the ability to act on material sustainability matters.

Payment practices

Regulatory framework and commitments

ICA Gruppen is subject to the following legislation and industry agreements with regard to payment practices:

The Interest Act

Section 2a of the Interest Act stipulates that a claim falls due for payment no later than 30 days after the creditor has demanded payment of the claim. Longer payment terms can be arranged between traders when expressly agreed between the parties.

Code of Conduct for Swedish SME companies

An industry agreement joined by ICA, among others, with the aim of combating excessive payment times. This entails payment terms for small and medium-sized enterprises of not more than 30 days from receipt of invoice. The code includes prohibitions on cancelling orders later than 30 days and unilateral changes to terms and conditions, such as price, payment, volume and location.

Law on the reporting of payment times

ICA is required to report annually on average agreed and actual payment times, as well as the proportion of invoices paid late, for companies with fewer than 250 employees.

Quantitative metrics

No specific quantitative data on average payment times, actual payment performance, or late payment statistics are disclosed in the provided excerpts.