Nilfisk

Governance roles

Reference: page 22. Content is largely incorporated by reference from the Corporate Governance chapter of the Management Review (pages 22-30), with sustainability governance detail on page 41.

Nilfisk Holding A/S is governed by a Board of Directors (ten members: six shareholder-elected, four employee-elected) and an Executive Management Board comprising the CEO (Jon Sintorn) and CFO (Carl Bandhold). The Board has appointed three standing committees in 2025: the Audit Committee, the Nomination Committee and the Remuneration Committee, each with two members appointed annually.

The Audit Committee monitors financial and sustainability reporting, internal control and risk management, and the statutory audit and assurance of the sustainability statement; it received "in-depth training sessions in the requirements of the Corporate Sustainability Reporting Directive (CSRD)" during 2025 (page 23). Day-to-day sustainability oversight sits with the Sustainability Steering Committee (three Executive Leaders: CFO, Head of Products & Operations, Head of Specialty Business, Marketing & Sustainability), which reports into the Nilfisk Leadership Team (page 41).

Information provided to and sustainability matters addressed

Reference: page 41.

Sustainability is a standing agenda item across Nilfisk's governance structure. The Audit Committee "oversees compliance with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS)", including "the annual approval of the Double Materiality Assessment (DMA) and Sustainability Statements", and "monitors progress on sustainability targets and oversees compliance with sustainability regulations."

The Sustainability Steering Committee "drives the sustainability agenda by setting priorities, guiding transition, ensuring compliance, and overseeing performance", and "also approves the Sustainability Statements", with responsibility and targets "cascaded to relevant functions with progress reported in quarterly reviews."

The Board of Directors "monitors and ensures progress towards our strategic priorities, covering sustainability and target achievements" and "receives annual updates on targets and progress." A dedicated Group ESG controlling function within Finance supports compliance reviews and internal controls, alongside the Enterprise Risk Management process, which "also includes sustainability risk assessments" (page 41).

Integration of sustainability-related performance in incentive schemes

Reference: page 39.

Nilfisk directly links incentive pay to environmental performance: "the long-term bonus program assigns a 20% weighting to reductions in scope 3 greenhouse gas emissions, while the short-term bonus program incorporates a 10% weighting for achievement across four selected sustainability KPIs."

"Additionally, the interest margin on one of Nilfisk's credit facilities is tied to sustainability targets." The Sustainability Statement notes that more comprehensive detail on the incentive design "can be found in the Remuneration Report and the Financial Statements" (page 39), which is incorporated by reference and not part of the extracted sustainability statement text.

Elsewhere, the transition plan (E1-1) confirms the mechanism is validated at Board level: "Nilfisk's transition plan is validated by the Sustainability Committee and reviewed annually by the Audit Committee" (page 51).

Statement on due diligence

Reference: page 101 (Statement on sustainability due diligence).

Nilfisk maps the five core elements of due diligence to specific pages of the Sustainability Statements:

This concordance table sits at the close of the "Additional information" section of the Sustainability Statements (page 101).

Risk management and internal controls over sustainability reporting

Reference: page 24.

Nilfisk has "established various policies and procedures for sustainability, including ESG accounting manuals and a DMA Playbook." Risk assessment "in the sustainability reporting process are assessed during data collection to ensure the integrity, completeness, and accuracy of the data, including value chain data", with priority given to "areas that involve significant estimates and material risks of errors and misstatements."

Control activities: "Subject matter experts prepare ESG data, which is reviewed and controlled by ESG controllers to ensure compliance. Internal controls are in place to detect, mitigate, and address material misstatements in sustainability reports."

This sits alongside the parallel financial-reporting control framework (Accounting Manual, Risk Management Policy, IT Security Policy, Treasury Policy, Insurance Policy, Tax Policy, Integrity Policy & Business Code of Conduct), which "apply for all subsidiaries" and are tested "at least once every five years" (page 24). Disclosures under sections 99a and 107d of the Danish Financial Statements Act are made in the Sustainability Statements (page 24).

Strategy, business model and value chain

Reference: page 9 (incorporated by reference from the Management Review, pages 9-10, 14-17, 33, 43).

Nilfisk is "a leading global provider of professional cleaning solutions", founded in 1906 and headquartered in Copenhagen. In 2025 the group reported revenue of 996.3 mEUR, approximately 4,500 employees, sales in more than 100 countries through 40+ sales companies, and products spanning floorcare, vacuum cleaners, high-pressure washers and aftermarket parts/service across four business segments (Professional, Service, Specialty, Consumer) (pages 9-10).

Operations: five production sites across three continents (Hungary, Mexico, Italy, China, Denmark) and five distribution centers (page 15). The upstream value chain covers raw material extraction and suppliers; the downstream chain covers product use and end-of-life, including refurbishment and resale (page 43).

On December 11, 2025, Nilfisk Holding A/S announced a takeover agreement with Freudenberg Home and Cleaning Solutions GmbH, an all-cash voluntary recommended offer at DKK 140 per share, subject to shareholder and regulatory review (page 3).

Interests and views of stakeholders

Reference: page 94.

Nilfisk names seven key stakeholder groups and details engagement type, purpose and outcomes for each (page 94): customers (B2B & B2C) via daily engagement and customer-insight-based product development; employees via the annual global engagement survey, development conversations, health & safety processes and the whistleblower mechanism; investors and analysts via external ESG ratings, investor calls and capital markets days; suppliers and workers in the value chain via due diligence, questionnaires and human rights assessments; local communities via local employee activities, donations and partnerships; and interest organizations (civic, non-profit, government) via thought leadership, industry work groups and university collaboration.

"We include views and interests of affected stakeholders regarding our sustainability-related Impacts, Risks, and Opportunities (IROs) in our established business processes. The Sustainability Steering Committee is regularly informed of new insights on the matter." Internal subject-matter experts act as proxies for stakeholder views feeding the DMA (page 94).

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

Reference: pages 45-47 (detailed IRO tables); page 91 (DMA outcome); pages 71, 78, 80, 83 (topical Material IRO call-outs); pages 92-93 (thresholds and resilience).

The 2025 DMA "resulted in 42 material IROs across 8 ESRS topics and 16 sub-topics" (page 91), down from 9 topics and 21 sub-topics in 2024. Material topics are E1, E2, E3, E5, S1, S2, S4 and G1; "From the updated thresholds ESRS S3 - Affected Communities and ESRS E4 - Biodiversity have become immaterial topics" (page 91), and within the remaining topics, "E4 Biodiversity, E5 Waste, S1 and S2 Other work-related rights, and S2 Equal treatment and opportunities for all" were deemed not material (page 42).

"If an IRO receives a total score of medium or higher, it is considered material to Nilfisk." Thresholds were raised in 2025 to "better match the current financial risks and improved data" (page 91). The detailed, topic-by-topic IRO tables (own operations/upstream/downstream, time horizon, description, mapped disclosure requirements) sit on pages 45-47.

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

Reference: pages 90-91 (DMA methodology); page 34 (enterprise risk management); page 42 (outcome).

The DMA process runs through scoping (upstream/downstream/own-operations value chain mapping), stakeholder identification and engagement (workshops and interviews with internal subject-matter experts acting as stakeholder proxies), impact/risk/opportunity assessment, consolidation of material ESRS sub- and sub-sub-topics, and finalization via Sustainability Steering Committee and Audit Committee approval (page 90).

Impact scoring uses scale, scope, irremediable character and (for potential impacts) likelihood, with the salient human-rights principle scored at the highest level regardless of likelihood. Financial materiality scores tangible and intangible financial effects by magnitude and likelihood (page 91).

Governance-related IROs draw on inputs from Compliance referencing the EU Whistleblower Directive, the UK Bribery Act 2010, the Foreign Corrupt Practices Act and OECD Guidelines (page 90). At enterprise level, "sustainability-related risks highlighted in the DMA overlap with those in the enterprise risk management process", and the Board has oversight responsibility for both (page 34).

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

Reference: pages 98-100 (ESRS disclosure overview and data points deriving from other EU legislation).

The ESRS disclosure overview (pages 98-99) is a content-index table mapping each disclosed requirement to its section (Management Review, Sustainability Statements, Remuneration Report) and page(s), with footnoted phase-in options: a general "phase-in option used for value chain data for metrics" (E2-1), for "information on ESRS sectors" (SBM-1) and for "information on anticipated financial effects" (SBM-3) - the last covering E1-9, E2-6, E3-5 and E5-6, each shown with no page reference in the index.

A companion table (page 100) cross-references individual ESRS datapoints to SFDR, Pillar 3, Benchmark Regulation and EU Climate Law references, again with page numbers or "Not applicable" markers for datapoints tied to sub-topics the 2025 DMA found immaterial (S3, most of S1's "other work-related rights" datapoints, G1-1 10(b)/(d), G1-4 24(a)/(b)).

Transition plan for climate change mitigation

Reference: pages 50-51.

In 2025 Nilfisk "strengthened its decarbonization ambition by committing to achieve Net-Zero emissions across our value chain by 2040", validated by the Science Based Targets initiative (SBTi) and recalibrated to a 2021 baseline (extended from a 2030 to a 2040 target year) (page 51).

The plan separates scope 3 levers (99% of emissions: product energy efficiency, switching product energy source, use of low-carbon materials, plus grid decarbonization outside Nilfisk's control) from scope 1 and 2 levers (1% of emissions: electric vehicle fleet switch, site energy efficiency, renewable electricity, grid decarbonization) (pages 49-50). Locked-in emissions are identified qualitatively: "Locked-in emissions at Nilfisk come from natural gas used in the rotomolding machines, which have lifespans of over 20 years" (page 50).

"Nilfisk's transition plan is validated by the Sustainability Committee and reviewed annually by the Audit Committee" (page 51). Nilfisk states it "is not excluded from the EU Paris-aligned Benchmarks" (page 51).

Identification of climate-related risks and scenario analysis

Back-filled from the Climate risk assessment table and Resilience analysis, disclosed in the FY2025 report (pages 92-93). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

Nilfisk's climate risk assessment separately covers physical and transition risk (page 93). Physical risk: own sites are assessed with the "21 Risk platform, Münich-Re's methodology" against RCP8.5, RCP4.5 and RCP2.6 out to 2100, covering all 50 sites with Total Sum Insured above EUR 2,000; the upstream value chain is assessed with S&P Global Sustainable1 Physical Risk Scores against SSP5-8.5 and SSP1-2.6 for 2030 and 2050; downstream physical risk is scored "Immaterial impact." Transition risk: market, policy, reputational and technology risks are each assessed against IEA scenarios (STEPS, APS, NZE), the last being a 1.5°C-aligned scenario, informing revenue, expenditure, emissions and EU Taxonomy exposure (page 93).

"In 2025, the 2024 climate risks results were reviewed and updated" (page 92). The report does not state a global average temperature projection for each scenario or a scope-of-operations breakdown beyond the site/sector counts given [uncertain: temperature-projection detail not stated].

Resilience in relation to climate change

Back-filled from the Resilience analysis section, disclosed in the FY2025 report (page 92, drawing on the Climate risk assessment on page 93). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

"Nilfisk has conducted a resilience analysis based on insights from our climate risk assessment, focusing on both physical and transition-related climate risks." For physical risk: "More than half of the sites in scope of the assessment have a high to extreme climate risk in the current outlook and consequently equally in future time horizons and low and high emissions scenarios." Resilience actions include a dual production strategy, adapted insurance, and emergency plans prioritizing employee wellbeing; in the upstream value chain, a dual sourcing process builds resilience against supply disruption (page 92).

For transition risk, Nilfisk describes market, policy, technology and reputational exposure and corresponding mitigations, including developing low-carbon products ahead of an aggressive future policy scenario and monitoring customer requirements against reputational risk from Net-Zero-aligned scenarios (page 92). "The findings of the resilience analysis have informed Nilfisk's Double Materiality Assessment" (page 92).

Policies related to climate change mitigation and adaptation

Reference: page 53.

Nilfisk's Climate Change and Energy Policy, owned by the EVP, Head of Specialty Business, Marketing & Sustainability, addresses three areas: climate change mitigation (ambition to reduce scope 1, 2 and 3 GHG emissions, targets, governance, activities and GHG accounting approach); energy efficiency (site- and product-level ambitions and activities, accounting principles and governance, updated in 2025 to include the new Net-Zero target); and renewable energy deployment (ambition to deploy renewable energy and prioritize renewable options) (page 53).

Emissions are monitored monthly and reported quarterly to the Sustainability Steering Committee and Audit Committee. A second policy, described on page 54, sets out the annual process for evaluating climate risks and identifying adaptation opportunities, formalizing the link to Nilfisk's Enterprise Risk Management framework. The Code of Conduct rule 6, Climate & Environment, also governs climate-related activities (pages 53-54).

Actions and resources in relation to climate change policies

Reference: pages 53-54; R&D resourcing on page 54.

Scope 3 mitigation actions (2025): the vacuum cleaners VP300/VP400/VP500/VP700 and Thor R, plus SC550/AS530R/SW3000, launched with post-consumer and post-industrial recycled plastics; the new MH3-5 boiler series compatible with HVO biofuel, enabling customers to switch product energy source.

Scope 1 and 2 actions: electric vehicle share in the fleet rose from 9% to 14%; site energy efficiency work targeted rotomolding, door insulation and heating upgrades, including consolidating two Hungarian facilities into a LEED Gold site; on-site solar in Italy and China plus Energy Attribute Certificates lifted the renewable electricity share from 52% to 62%, cutting emissions by 3,062 tonnes in 2025 (page 54).

Adaptation actions: business-continuity and disaster-recovery planning for tornadoes, hurricanes and extreme storms, plus a facility-selection scorecard incorporating climate risk (page 54).

Resources: total 2025 R&D spend of 36.4 mEUR, of which 9 mEUR was product development including scope 3 category 11 reduction initiatives, with a further 2 mEUR planned for 2026 (page 54).

Targets related to climate change mitigation and adaptation

Reference: page 52 (targets); page 55 (progress and accounting policy).

Nilfisk's SBTi-validated Net-Zero targets (2021 base year): scope 1 and 2 emissions down 50.5% by 2030 and 90% by 2040; scope 3 (categories 1 and 11) down 42% by 2030 and 90% by 2040 (page 52).

2025 progress: scope 1 and 2 emissions fell to 11,384 tCO2eq (-50.5% vs. base year, -30% vs. 2024); scope 3 categories 1 and 11 fell to 1,474,962 tCO2eq (-42% vs. base year, -37% vs. 2024) (page 55). "Performance on all GHG targets are aligned with the planned trajectory towards Net-Zero" (page 55).

Both absolute targets were "independently validated by the Science-Based Target initiative", using the absolute contraction method; the scope 3 target "covers 95.3% of the baseline year emissions, as required by SBTi" (page 55). The divested US high-pressure washer business (sold October 31, 2025) remains inside the 2025 target boundary; comparatives will be restated and revalidated from 2026 (page 55).

Energy consumption and mix

Reference: page 56.

Total energy consumption covers sites and fleet (scope 1 and 2). Comparative 2024 figures were restated by 1,017 MWh, reclassifying self-generated non-fuel renewable energy to purchased electricity (page 56). Nilfisk uses no coal. Energy intensity is disclosed because Nilfisk falls within the high climate impact sector "manufacturing"; intensity is calculated as energy from manufacturing sites, cars and an allocated share of non-manufacturing sites, divided by revenue from products manufactured at Nilfisk sites (page 56).

Gross Scopes 1, 2, 3 and Total GHG emissions

Reference: pages 57-58.

"Percentage of GHG scope 3 calculated using primary data" fell from 85% (2021 base) to 75% (2025) (page 56). Scope 3 categories C2-C10 and C12-C15 are excluded as immaterial, representing an estimated 6% of total scope 3 emissions (page 58). Scope 1 and 2 methodology follows the GHG Protocol Corporate Standard, using AIB/Green-e residual mix, IEA and DEFRA emission factors; EAC-covered electricity carries a zero emission factor. Category 1 emissions use Ecoinvent factors on the "Cut-off" approach; category 11 emissions are modelled from technical specifications, estimated usage and product lifetime (pages 57-58).

Policies related to pollution

Reference: page 59.

Nilfisk's material pollution IROs are scoped to substances of concern (SoC) and substances of very high concern (SVHC), including PFAS, arising from manufacture and disposal of products, plus pollution from mismanaged end-of-life products (page 59).

"Nilfisk acknowledges the importance of pollution from substances of concern. Currently we do not have a policy, as we are in the process of building the necessary data structures to set relevant guidelines" (page 59) - a candid statement that a dedicated SoC/SVHC policy does not yet exist. Pollution from end-of-life products is instead governed through the Product Circularity Policy, which "aims to mitigate disposal impacts by enhancing product recyclability, repairability, and durability" (page 60), and through the Code of Conduct rule 6, Climate & Environment, which "governs activities related to hazardous materials" and "pollution" respectively (pages 59-60).

Actions and resources related to pollution

Reference: pages 59-60.

Substances of concern: in 2025 Nilfisk "continued a pilot on establishing data on PFAS at product level, constituting a baseline for Nilfisk's future efforts", prompted by the first formal PFAS-specific regulatory reporting requirement coming into force in one of Nilfisk's markets. Suppliers are required to "avoid using declarable substances in components whenever feasible and declare phthalates and plasticizers above 0.1% concentration" under a new Nilfisk substance-declaration standard (page 59). Nilfisk also upgraded its consumer detergent range to carry the Nordic Swan Ecolabel across all products in scope (page 59).

Pollution from end-of-life products: Nilfisk opened a second refurbishment operation at its Nagykanizsa (Hungary) site in 2025, and centralized refurbishment processes are planned for 2026. New products (VP300, VP400, SC550) were engineered with replaceable cords and parts to reduce breakage and extend product life, directly reducing end-of-life pollution risk (page 60).

Targets related to pollution

Reference: pages 59-60.

Nilfisk does not disclose a quantified reduction target for substances of concern, substances of very high concern, or end-of-life pollution. The report states plainly, in identical wording under both the substances and end-of-life-products subsections: "Nilfisk does not currently have a target, but continuously monitors the relevance of pollution-related targets" (pages 59-60).

In place of a numerical target, Nilfisk describes ongoing actions it treats as the operative response: building the PFAS product-level data baseline, developing the substance-declaration standard, and expanding refurbishment capacity (pages 59-60). This mirrors the MDR-T pattern used elsewhere in the statement where a stated absence of a target is paired with a description of the monitoring or action programme substituting for one.

Substances of concern and substances of very high concern

Reference: page 61.

Substances of concern and SVHC leaving facilities as part of products (tonnes):

"Of the substances reported by Nilfisk, 99% leave the facilities as part of products. Of these, 98% are lead compounds found in batteries." The 13% decrease in SoC leaving as part of products in 2025 reflects lower battery volumes versus 2024 (page 61). 2024 figures were restated: a hazard-class-1 classification error was corrected, adding 551 tonnes to SoC and 779 tonnes to SoVHC totals (page 95).

Entity-specific metrics (page 62): the share of PFAS high-risk suppliers providing PFAS information rose from 38% to 54%; the share of products sold in countries with low waste-management maturity fell from 51% to 46%.

Policies related to water and marine resources

Reference: page 63.

Nilfisk's material water IRO is scoped to water consumption from product usage (an entity-specific downstream impact), rather than operational water withdrawal at Nilfisk's own sites. The applicable policy is the Product Circularity Policy, under which "water usage from our products falls under the Product Circularity Policy, which incorporates relevant circularity initiatives", requiring "specific Nilfisk functions to collect data, set targets, and operationalize strategies to reduce water consumption" (page 63).

The Code of Conduct rule 6, Climate & Environment, also "governs activities related to water" (page 63). Nilfisk additionally reports through CDP Water Security, having expanded its CDP disclosures to include water reporting in 2024, reflecting "our commitment to CDP" and "our broader sustainability priorities" around managing water responsibly as a critical resource (page 63).

Actions and resources related to water and marine resources

Reference: page 63.

In 2025 Nilfisk ran three technology development projects aimed at reducing water consumption in high-pressure washers and floorcare machines; two are expected to complete by end-2026, with the third concluding after 2026 (page 63).

Product launches: the SC550 scrubber dryer, using EcoFlex technology, "consumes up to 40% less water compared to models without EcoFlex technology"; the new SC25 and CS7500 platforms also "support water-conscious operations" (page 63).

Performance recognition: Nilfisk's CDP water score improved from 'B-' to 'B' in 2025, which the company attributes to reporting "on water encompasses various aspects of water consumption, including mitigating the environmental impact, and helping our customers achieve their sustainability objectives while reducing cost from water usage" (page 63). Activities in 2025 covered "both the high-pressure washer and floorcare segments to better understand customer needs and gain efficiency" (page 63).

Targets related to water and marine resources

Reference: page 64.

Nilfisk does not disclose a quantified reduction target for water consumption from product usage. The report states: "Nilfisk does not currently have a target, but continuously monitors the relevance of water-related targets" (page 64).

In place of a numerical target, the company describes the drivers it monitors for a future target - "the ability to reduce use of water through water recycling, and the capacity to collect and share data" (page 63) - and points to ongoing technology-development projects (E3-2) as the current programme of action addressing the material water IRO. This mirrors the same "no target, but monitoring relevance" pattern used for pollution (E2-3) and resource outflows (E5-3 equivalent narrative) elsewhere in the statement.

Water consumption

Reference: pages 63-64.

Nilfisk reports water consumption using an entity-specific downstream metric - "Water consumption from product usage" - rather than the standard operational E3-4 water-withdrawal datapoint, reflecting the DMA finding that the material water impact sits at the product-use stage, not at Nilfisk's own sites.

"The water consumption from product usage increased by 10% in 2025 compared to 2024. This increase is due to changes in mix of high-pressure washers and higher volumes of floorcare machines. Water consumption from high-pressure washers represent 67% of the total water consumption of Nilfisk products" (page 64).

Accounting policy: annual consumption is calculated as hourly product water flow (from technical specifications, using recognized international standards) multiplied by estimated hours in use and units sold; a high degree of estimates has been used for this metric (page 64).

Policies related to resource use and circular economy

Reference: pages 65-66.

The material E5 IRO is Nilfisk's contribution to material scarcity through consumption of "components such as plastics, electronics and some metals" (page 65). The primary governing document is the Product Circularity Policy, owned by the EVP, Head of Products & Operations, covering six key themes aimed at reducing resource inflows and usage. It applies to Nilfisk's own operations and "mandates data collection, target setting, concept operationalization, and roadmap definition for increasing recycled content"; its intent is internal, though "suppliers will be made aware of the effects of the policy in correlation with regular business interactions" (page 65).

The same policy governs resource outflows: it "aims to reduce waste by enhancing recyclability, repairability, and durability" and "mandates data collection, target setting, and roadmap definition to improve resource reuse" (page 66). The Code of Conduct rule 6, Climate & Environment, also governs both resource inflow and outflow activities (pages 65-66).

Actions and resources related to resource use and circular economy

Reference: pages 65-66.

Resource inflows: a project begun in 2024 to bring down the cost of recycled plastics continued in 2025, "addressing technical challenges with recycled plastics and establishing processes to reduce costs and increase availability." Six new products (VP300, VP400, VP500, VP700, Thor R, plus SC550/AS530R/SW3000) launched in 2025 with 20-40% post-consumer recycled plastic content; the consumer detergent range's spray bottles were updated to 70% recycled material (pages 65-66).

Resource outflows: refurbishment activity "accelerated" in 2025, building on 12 countries of CirkEl-project activity in 2024, with deepened focus on Germany and the US, including "integrating refurbished products into rental offerings and piloting take-back contracts." A centralized packaging-waste data infrastructure was implemented in 2025 to support Extended Producer Responsibility (EPR) compliance across all EU markets, enabling "automated tracking, reporting, and fee calculation" (page 66).

Targets related to resource use and circular economy

Reference: page 65 (target); page 67 (progress).

Nilfisk's quantified target: 1,280 tonnes of recycled plastics to replace virgin plastic in products by 2028, "to be achieved by replacing 30% of virgin plastics with recycled plastics in selected products" (page 65).

Progress (tonnes recycled plastics used): 2023 baseline 337; 2024 365; 2025 362 (page 67). "In 2025, the volume of recycled plastics, to replace virgin plastics, decreased by 1% compared to 2024. The development is a combination of lower sales volumes of products with recycled plastics in Europe partly offset by increased sale of products with recycled plastics in APAC. Despite the decrease in 2025, the absolute level remains in accordance with the planned trajectory towards the 2028 target" (page 67).

For resource outflows, Nilfisk again has no quantified target: "Nilfisk does not currently have a target, but continuously monitors the relevance of resource outflow-related targets" (page 66).

Resource inflows

Reference: page 67.

"The percentage of recycled materials consumed is 3 percentage points lower than in 2024, due to different mix of input materials, with a lower share of purchased steel in 2025" (page 67).

Accounting policy: for direct suppliers, weight is derived by converting spend data into tonnage using supplier input where available, with extrapolation for the remainder (high degree of estimates, medium degree of extrapolations). For indirect suppliers, weight is estimated from OPEX data converted using basic price information, covering only laboratory/prototype materials and equipment expenses directly linked to production; no recycled materials are reported for indirect suppliers given a conservative approach to the low tonnage and lack of supplier data (page 67).

Resource outflows

Reference: page 68.

Average expected product durability (years) held broadly flat: floorcare 4.8, high-pressure washers 7.6-7.8, vacuum cleaners 7.4 (page 68). "Repairability index improvements on consumer vacuum cleaners is due to initiative on lowering sales price and increase availability of spare parts" (page 68).

The repairability rating follows the French Repairability Index methodology under Article L. 541-9-2 of the French environmental code, applied to consumer vacuum cleaners and high-pressure washers only, using a low degree of estimation. Packaging recyclability is calculated from material-type weights (wood, cardboard, plastic, metal) multiplied by global average recyclability rates (page 68).

Policies related to own workforce

Reference: page 71 (Working Hour Policy); pages 71-72 (Occupational Health and Safety Policy); page 72 (DE&I Policy); page 82 (Human Rights Policy).

Nilfisk's material own-workforce IROs cover working conditions (health and safety, working time) and equal treatment (diversity, gender pay). Governing policies include: the Working Hour Policy, approved by the EVP Head of People, Organization and Culture, setting "a maximum of 48 hours per week including overtime, with adjustments for local laws" (page 71); the Occupational Health and Safety Policy and Global Health and Safety manual, driven by the Global Head of EHS toward ISO 45001 certification (page 71); the Global Diversity, Equity and Inclusion (DE&I) Policy, reviewed bi-annually (page 72); and in 2025 a new Domestic Migrant Worker Policy for China, ensuring "fair treatment, support, and inclusion" (page 70).

The Human Rights Policy additionally sets out own-workforce commitments on right to life and security, just and favorable work conditions, freedom from discrimination, and right to equal pay (page 82).

Processes for engaging with own workforce and workers' representatives about impacts

Reference: page 70.

"Nilfisk organizes global town hall meetings every quarter, holds yearly engagement surveys, meets with work councils and health and safety committees, and conducts development conversations. These activities encourage open communication between leaders and employees, which boosts engagement, well-being, and performance."

The EVP, Head of People, Organization and Culture "collaborates with the Nilfisk Leadership Team to encourage employee engagement and ensure that employee feedback is considered during decision-making" (page 70). Nilfisk also introduced third-party Sedex sustainability verification audits (SMETA) of its own operations in 2024, focused on major production sites, which "demonstrates our commitment to local sites, employees, and management" (page 70).

At the enterprise level, the annual global employee engagement survey feeds directly into monitoring of work-life balance and working hours concerns, with resulting changes implemented "to enhance employee well-being" (page 70).

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

Reference: page 70; page 85 (whistleblower and investigation process).

"Nilfisk encourages employees to report concerns through our grievance mechanisms, including internal reporting to managers, HR Business Partners Global Compliance, or via Nilfisk's whistleblower system. Each grievance is investigated thoroughly, and retaliation against good faith reporters is prohibited, as outlined in our Code of Conduct and Whistleblower Policy" (page 70).

The multilingual online whistleblower system "ensures confidentiality and anonymity" and "complies with local reporting practices under the EU Whistleblower Directive (2019/1937)." All reports are "directly investigated by the Legal & Compliance team on a case-by-case basis" independently of the management chain involved, with conclusions reported to the Audit Committee (page 85).

"We see it as a strength and expression of trust that grievance mechanisms are used by employees. The effectiveness and trust in Nilfisk's grievance mechanisms are assessed through annual employee engagement surveys" (page 70).

Taking action on material impacts on own workforce

Reference: pages 71-73.

Health and safety: Nilfisk maintained ISO 45001 certification at relevant manufacturing sites in 2025, expanded the Global EHS team, and launched a Compliance Heatmap tool overseeing 80% of employees against Environment, Health and Safety governance practices (page 71). Site safety partners and monthly global EHS meetings drive local action (page 71).

Working time: EU-country time-tracking systems went live in Denmark, Hungary, Germany and Spain in 2025 to monitor deviations from the Working Hour Policy (page 70).

Diversity: more than 1,000 employees completed e-learning training addressing bias and psychological safety, continuing into 2026 (page 72).

Gender pay: the Nilfisk job architecture and pay ranges were reviewed in 2025 "ensuring high data quality," on which gender pay gaps are monitored and corrective actions planned; "Currently, the effectiveness of these actions is not formally tracked" (page 73).

Targets related to own workforce

Reference: page 70 (target statement); page 74 (progress).

Engagement: target of "at least 90% global participation" in the annual employee engagement survey; 2025 actual 86.0%, down from 88.5% in 2024 and below the 90% target (page 74).

Diversity - top management: target of 34% of the underrepresented gender by 2026 and equal representation (40/60) by 2030; 2025 actual held at 31%, "in line with expectations for the overall trajectory" (page 74).

Diversity - Board of Directors: target of 37.5% of the underrepresented gender by 2027; 2025 actual 17%, up from 14% in 2024 (page 74).

Health and safety: target to keep the recordable injury frequency rate (TRIFR) below 10.5; 2025 actual 5.6, "well below the target due to preventive measures in the manufacturing sites" (page 74). Targets were set by the Global Health and Safety Manager and, for engagement/diversity, in consultation with key internal stakeholders (page 74).

Characteristics of the undertaking's employees

Reference: page 75.

Total headcount fell by 358 (7%) in 2025. Hungary and China each account for more than 10% of the workforce, with headcount there down 4% in each country, reflecting "implementation of structural changes and cost reduction measures in the year" (page 75).

Employee turnover: total headcount turnover rose from 17% (2024) to 27% (2025); permanent-employee turnover rose from 15% to 26% (page 75). Headcount is reported on a full-time-equivalent basis and does not reconcile to Note 3.1 of the Financial Statements for that reason (page 75).

Characteristics of non-employee workers

Reference: page 76.

Non-employees are defined as "contingent workers providing work for Nilfisk but not on Nilfisk payroll," counted as the number of individuals contracted by Nilfisk performing work for its entities at period end, irrespective of full-time or part-time status (page 76).

This datapoint is not listed against a dedicated line in the ESRS disclosure overview's ESRS S1 content index (which lists S1-1 through S1-6, S1-9, S1-14, S1-16 and S1-17), but the underlying figures are disclosed as part of the S1 metrics section on page 76, so this entry is reported as a voluntary, supplementary disclosure alongside the material S1 sub-topics.

Diversity metrics

Reference: page 76.

Top management gender distribution:

Employee age distribution, 2025: under 30 years, 513 (12%); 30-50 years, 2,701 (61%); over 50 years, 1,241 (27%) - broadly stable versus 2024 (page 76).

Accounting policy: top-management gender distribution is calculated at period end for the Nilfisk Leadership Team and their direct reports with people-management responsibility, including those on leave. Age is determined from date of birth relative to total headcount (page 76). These figures underpin the S1-5 diversity targets (34% underrepresented gender in top management by 2026; equal representation by 2030).

Health and safety metrics

Reference: page 76.

"The number of work related recordable accidents improved by 10%. This result is well below the target and is due to preventive measures in the manufacturing sites" (page 76). Lost days rose 14% year on year, which Nilfisk frames as "reinforc[ing] the importance of our continued investment in employee health, safety, and preventive risk management" (page 76). All data is sourced from Nilfisk's Safety Incidents application.

Compensation metrics (pay gap and total compensation)

Reference: page 77.

"Salary disparity efforts: In 2025, the unadjusted gender pay gap improved to 18% from 19% (2024) due to efforts in reducing salary disparities during merit processes, recruitments, and promotions" (page 73). The gender pay gap is the difference between average gross hourly earnings of men and women as a percentage of men's earnings, based on total base salary excluding allowances and target bonuses, and excluding employees on leave (page 77).

The annual total remuneration ratio divides the CEO's annualized compensation (base salary, short- and long-term incentives) by median employee compensation (base salary and target incentives) at year end (page 77).

Incidents, complaints and severe human rights impacts

Reference: page 77.

"Other than stated above, no additional complaints have been filed through the designated channels for raising concerns, related penalties, or compensations. Additionally, there have been no severe human rights issues, incidents, or related fines" (page 77).

Cases are reported through the Nilfisk Whistleblower system or internally to a direct manager, HR, or Global Compliance. Nilfisk states plainly that its formal processes have a data gap here: "The Group's formal processes are not currently designed to fully capture the ESRS-required metrics related to S1-17" (page 77) - a limitation the company discloses rather than papers over.

Policies related to value chain workers

Reference: pages 78-79.

The material S2 IRO is "Working conditions" for value chain workers, covering health and safety, adequate wages/working time and rights risk at direct and indirect suppliers (page 46). Governing policies: the Nilfisk Sustainable Sourcing Policy, overseen by the EVP, Head of Sourcing, which "describes ambitions, standards, and processes designed to ensure sustainable social compliance across the supply chain" and "outlines our risk-based due diligence process to ensure ethical, environmental, and social compliance" (page 79); and the Supplier Code of Conduct, introduced in 2024, which "defines the minimum expectations Nilfisk places on all global suppliers of products and services" and "is legally incorporated by reference into supplier agreements" (page 78).

The Whistleblower Policy additionally "provides our value chain workers with a safe reporting mechanism" (page 78), and the Human Rights Policy sets out value chain worker commitments (page 82).

Processes for engaging with value chain workers about impacts

Reference: page 79.

Nilfisk engages value chain workers indirectly, primarily through the supplier due diligence process: "All new direct suppliers go through our Supplier Approval Procedure, which includes a range of tools, such as declarations, questionnaires and audits, designed to evaluate sustainability, legal, and compliance standards."

"We rely on on-site audits conducted by either our own supplier auditor or an independent third party. Such audits generally include interviews with focus groups of suppliers' employees that provide us with insights into worker perspectives, particularly those vulnerable due to the nature of their work or location" (page 79). Internal stakeholders (Customer Care, HR, Regulatory Affairs, Legal) act as proxies for these external voices in the DMA process (page 90). Nilfisk's supplier auditor and third-party auditors together conducted 27 supplier audits in 2025 (page 87).

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

Reference: page 79.

"Workers in Nilfisk's value chain can make use of existing channels to interact with Nilfisk", principally the multilingual whistleblower system, which "is available to all Nilfisk's stakeholders, including customers and end-users, and workers in the value chain" (pages 79, 85).

The Supplier Code of Conduct "requires that their employees can report concerns through the suppliers' grievance mechanisms or Nilfisk's whistleblower system. In 2025, no violations of human rights issues have been reported or identified" (page 79). When an issue is identified through supplier due diligence, Nilfisk "first aim[s] for collaboration with the supplier to remediate the matter and support long-term improvements," reserving the right to terminate the relationship "if we see that long-term improvements are not possible" (page 85).

Taking action on material impacts on value chain workers

Reference: page 79.

In 2025 Nilfisk "continued the newly established process of independent SMETA Audit (Sedex Members Ethical Trade Audit) for selected suppliers" and continued dialogue to secure key suppliers' signature of the Supplier Code of Conduct (page 79). The share of high-risk suppliers that have signed the Supplier Code of Conduct rose to 78% in 2025, from a target of 70% (page 79).

Nilfisk's supplier due diligence process combines signed declarations, in-house questionnaires, supplier-auditor visits and third-party audits; 8 on-site audits were conducted by Nilfisk's own supplier auditor and 19 by third-party auditors in 2025 (27 total, page 87), aimed at collaborating with high-risk suppliers to mitigate negative impacts on employees and the environment while reducing corruption and bribery risk (page 87).

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

Reference: page 78.

Target: share of high-risk suppliers that have signed the Supplier Code of Conduct.

"In 2024, Nilfisk introduced a Supplier Code of Conduct. The Supplier Code of Conduct defines the minimum expectations Nilfisk places on all global suppliers of products and services. It is legally incorporated by reference into supplier agreements. The target for 2025 has been achieved, and a new target is being considered as part of a new supplier management process" (page 78). High-risk suppliers are defined using the Sedex risk assessment methodology, and the target was set with input from key internal stakeholders (page 78).

Policies related to consumers and end-users

Reference: pages 81-82.

Material S4 IROs are security/personal safety of end-users and privacy (GDPR). Governing policies: the Customer Health and Safety Policy, overseen by the EVP Head of Operations and the General Counsel/Head of Legal & Compliance, implemented by Quality Assurance and anchored in the ISO 9001-certified Quality Management System, which "undergoes annual surveillance audits and a comprehensive recertification every three years" (page 81).

For privacy: the IT Security Policy, informed by ISO 27001 principles and owned by the IT Security Steering Committee led by the CIO; and the Information Security Vulnerability Disclosure Policy, overseen by the CISO, which "facilitates external reporting of system vulnerabilities" (page 82). The Code of Conduct rule 10, Quality, and rule 11, Information Security, also govern activities on product certification and data protection respectively (pages 81-82).

Processes for engaging with consumers and end-users about impacts

Reference: page 80.

"On a daily basis we are in contact with both our customers and our end-users. We engage with customers to understand and address their needs. We harvest insight via our sales and service teams in all markets, directly from customers, and from our Customer Insights processes. The insights feed into our product and service design process, as well as our quality assurance processes" (page 80).

Quality and Product teams "monthly oversee quality and safety reports," and the Head of Global Quality and VP of Legal oversee the formal product-incident management process (page 81). New products such as the SC550 and VP300/VP400 were "developed based on collaboration with customers on identifying and solving operating pain points" (page 81), directly linking customer engagement to product design.

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

Reference: page 80.

"Customers and end-users can make use of existing channels to interact with Nilfisk", principally the multilingual whistleblower system, which is available to "all Nilfisk's stakeholders, including customers and end-users" (pages 80, 85).

For product safety specifically, the Head of Global Quality and VP of Legal oversee a formal product incident management process (page 81), and a product recall mechanism exists: "A product recall would be informed by the quality monitoring process; is assessed to put end-user health and safety at risk; we may halt the distribution of the product or initiate a recall campaign" (page 82). No product recalls occurred in 2023, 2024 or 2025, against an annual target of zero (page 82).

Taking action on material impacts on consumers and end-users

Reference: pages 81-82.

Personal safety: the SC550 walk-behind scrubber dryer launched with "an intuitive user interface adapting to a wide range of skill levels and languages"; the Nilfisk Dryft micro-scrubber dryer features an ergonomic design; the VP300 and VP400 vacuum cleaners launched with orange cords "to address the risk of trip hazards while operating the machine," a feature developed directly from customer collaboration (page 81).

Privacy/IT security: in 2025 Nilfisk "added extra mandatory information security training for office workers due to their higher risk," strengthened its Information Security Management System toward NIST 800-53 rev 5 ahead of a 2026 NIS2 audit, and won pilot participation in ENISA's EUCC interplay supporting Cyber Resilience Act compliance (page 82). GPS data from connected/autonomous machines is treated as pseudonymized personal information under CIO/CISO-governed storage terms (page 82).

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

Reference: page 80 (target statement); page 82 (progress).

"Nilfisk has set an annual target of zero product recalls, which was achieved in 2025 in line with ambition" (page 82). For phishing training: "85% of new employees completed phishing training, which was below the target for 2025. The target is monitored and reported to the IT Steering Committee annually" (page 82). Both targets were set in consultation with key internal stakeholders (page 82).

Business conduct policies and corporate culture

Reference: pages 85-87.

Nilfisk's Code of Conduct, approved by the Board of Directors and implemented by Legal & Compliance, "covers our own operation and value chain" and "includes fundamental principles such as our Integrity Policy (honesty, fairness, and accountability) and 11 rules of behavior," spanning anti-corruption, climate and environment, competition compliance, data privacy, foreign trade controls, fraud, health and safety, information security, labor rights and diversity (page 85). It is supplemented by the Nilfisk Governance Framework web portal of operational rules and standard operating procedures (page 85).

Training: by end-2025, 92% of Nilfisk's global workforce had completed the mandatory Code of Conduct training (up from 63% in 2024), against a 90% target (page 87). From 2026, all employees will retake the training every two to three years (page 86). Nilfisk achieved EcoVadis Gold for the fourth consecutive year in 2025 (page 87).

Management of relationships with suppliers

Reference: page 86 (High-risk supplier and due diligence processes).

"Our Sustainable Sourcing Policy outlines our risk-based due diligence process that prioritizes high-risk suppliers for enhanced assessment, collaboration, and remediation to ensure ethical, environmental, and social compliance across the supply chain. The different risk areas, such as sustainability, legal, regulatory or finance, are investigated and managed in collaboration with the respective departments within Nilfisk" (page 86).

The process combines "signing our Supplier Code of Conduct and various regulatory declarations, completing in-house questionnaires, participating in visits by our supplier auditor and undergoing third-party audits." Where an issue is identified, Nilfisk "first aim[s] for collaboration with the supplier to remediate the matter," reserving termination as a last resort (page 86).

This content is not separately tagged under a G1-2 line in the ESRS disclosure overview content index (pages 98-99), so this entry is reported as a voluntary, supplementary disclosure alongside the material G1 sub-topics of corruption/bribery and whistleblower protection.

Prevention and detection of corruption and bribery

Reference: page 88.

"Training of at-risk employees is primarily conducted as online-based training, with exceptions for countries with 50 employees or fewer, where in-person training is provided to optimize training resources. The training covers several topics, including anti-corruption, anti-fraud, conflicts of interest, and competition law. Training related to the detection of corruption and bribery shall be completed once every 2-3 years" (page 88).

High-risk subjects for corruption are evaluated in functions like "transport, logistics, and customs clearance," and high-risk markets are identified using Transparency International's Corruption Perception Index (page 86). Anti-corruption training is embedded within the Code of Conduct training (page 86).

Targets related to business conduct

Back-filled from the business conduct chapter, where targets are addressed as part of the MDR-T/GDR-T disclosures rather than as a numbered disclosure requirement, disclosed in the FY2025 report on pages 85 and 87. G1-3 became a standalone DR only in the 2025/2026 ESRS.

Nilfisk sets three business-conduct targets: sustain EcoVadis Gold in the annual assessment (achieved for the fourth consecutive year in 2025); 90% of employees to receive Code of Conduct training by 2026 (2025 actual: 92%, above target); and 25 supplier audits to be conducted in 2025 (actual: 27, above target - 8 by Nilfisk's own supplier auditor, 19 by third-party auditors) (pages 85, 87).

"A new target is being considered as part of a new supplier management process" for the supplier-audit metric going forward (page 87). Targets were set by the Head of Compliance (Code of Conduct) and are monitored annually (page 87).

Incidents of corruption or bribery

Reference: page 88.

Nilfisk reports no convictions and no fines for violation of anti-corruption or anti-bribery laws in either 2024 or 2025 (page 88). The metric is defined as "the number of reported incidents regarding any convictions or fines for the violation of anti-corruption or anti-bribery laws" (page 88), tracked through the same Legal & Compliance investigation process that handles whistleblower reports on corruption and bribery incidents (page 86).