Raute

Reference: page 17.

Raute's key sustainability governance bodies are the Board of Directors, the Executive Board (RXB) and their supporting committees. The Board has seven members: Chair Laura Raitio and members Ari Harmaala, Ari Piik, Jenni Virnes, Julius Manni and Mikko Kettunen are independent of the company, while Joni Bask is dependent, having served on the Board for more than ten years. The Board has two committees: the Audit Committee (chaired by Mikko Kettunen, with Jenni Virnes, Joni Bask and Julius Manni), which oversees the double materiality assessment, risk management and external assurance; and the People Committee (chaired by Laura Raitio, with Ari Harmaala and Ari Piik), which handles remuneration and succession planning. The Executive Board (RXB) has seven members, chaired by President and CEO Mika Saariaho, with CFO Ville Halttunen responsible for sustainability matters. The ESG Steering Group has sixteen members (four women, twelve men) chaired by the CFO. The CFO's skills are focused on E1 and G1 topics, the Chief People Officer's on S1 topics, and Kurt Bossuyt has in-depth supply chain and G1 skills.

Reference: page 19.

The Chief Financial Officer updates the Executive Board, Board of Directors and Audit Committee on sustainability topics and progress. Sustainability matters were reported to each of the six Audit Committee meetings in 2025 and at all Executive Board meetings; the Board held 14 meetings and the ESG Steering Group two. The Audit Committee was informed of material impacts, risks and opportunities (IROs) and the sustainability statement preparation process on five occasions, discussed updates to the double materiality assessment, and reviewed risk mitigation actions. The Board discussed and oversaw ESG targets, the double materiality assessment, remuneration and incentive schemes, whistleblowing cases, occupational safety and the climate transition plan, and approved a new circular-economy sustainability target during the year. The Executive Board held eleven meetings, approved the double materiality assessment results and related actions, and approved key sustainability policies including the Supplier Code of Conduct. The ESG Steering Group reviewed emissions calculation results, the climate transition plan and a proposal for the circular-economy target.

Reference: page 21.

Raute's total remuneration comprises fixed base salary, short-term incentives (STI) based on financial and/or individual performance criteria, and long-term incentive (LTI) schemes, applying to the President and CEO and the Executive Board. The LTI scheme is share-based, linked to value creation and growth, and currently comprises three rolling three-year performance periods: 2023-2025, 2024-2026 and 2025-2027; the 2022-2024 programme ended and its reward was paid in 2025. A complementary conditional share-based plan is time-based only, with no financial or sustainability criteria. On sustainability, Raute has integrated safety as a performance metric: the Executive Board has a safety objective based on the Lost Time Injury Frequency (LTIF), carrying a 10% weighting within the STI scheme for top management. Climate-related greenhouse gas emission reduction targets are not currently included in executive remuneration, and the Board's own remuneration carries no sustainability-related performance criteria.

Reference: page 21.

Raute's due diligence covers the identification, assessment and management of impacts, risks and opportunities, stakeholder consultation and reporting transparency. The Board of Directors holds overall responsibility and approves the key policies that frame the approach (e.g. the Code of Conduct); the Audit Committee oversees the design and effectiveness of the process, including integration of sustainability risks into enterprise risk management and follow-up on remediation plans. Due diligence is implemented through daily operations, policies and codes, training, whistleblowing and grievance mechanisms, and risk identification, with outcomes consolidated by management and reported to the Executive Board, Audit Committee and Board of Directors on their respective cycles: monthly to the RXB, at each Audit Committee meeting, and at least annually and around key approvals to the Board. The double materiality assessment has been integrated into Raute's overall risk assessment process. A table maps the core elements of due diligence to specific disclosures, including GOV-1 to GOV-3, SBM-1 to SBM-3, IRO-1, S1-2, S1-4, E1-3, E5-2 and G1-3.

Reference: page 24.

Raute's sustainability manager is responsible for sustainability reporting processes together with the CFO, who reports progress to the Board's Audit Committee. Identified risks to the reporting process include limitations in internal resources and in-depth knowledge of evolving ESRS requirements, and challenges in the availability, consistency and quality of underlying data, compounded by dependencies on manual, non-integrated data collection systems. Risks were identified and prioritised through practical experience during preparation of the statement and ongoing collaboration between the sustainability team, finance and other functions; no separate documented risk assessment model was used. To mitigate these risks, Raute appointed named data owners for each disclosure, introduced standardised data collection templates, and systematically documented methods, sources and assumptions. During 2025 it further strengthened oversight by documenting the overall reporting process and improving primary data quality, with initial data validation, documentation and retention processes now progressively being strengthened for auditability. The status of reporting-related risks and controls is reviewed annually by management and reported to the Board.

Reference: page 24.

Raute is a Finnish technology company offering complete mills, production lines, equipment and service solutions for producing veneer, plywood, laminated veneer lumber (LVL) and other engineered wood products, organised into three business units: Wood Processing, Analyzers and Services. According to Raute's 2024 competitor analysis, it is the market leader and the only full-scope supplier worldwide offering mill-scale technological solutions for veneer, plywood and LVL. Main markets are Europe, North America and Asia. Production relies mainly on reprocessed steel and other raw materials, components and industrial supplies, with metal accounting for roughly 95% of the materials used in equipment sold; upstream actors are suppliers of goods and services, and downstream actors are wood products manufacturers, distribution channels and end-users. Raute's strategy rests on three focus areas guiding operations and capital allocation, aiming to grow faster than the market, improve profitability, reduce earnings volatility and make sustainability a source of competitiveness, with ESG elevated to the top strategic priority following the 2025 double materiality assessment.

Reference: page 25.

The materiality assessment was updated in 2025, covering both impact and financial materiality. Raute's own personnel were among the key stakeholders alongside customers, suppliers, partners and financiers, engaged primarily through interviews conducted in 2023-2024 with employees, customers, Executive Board and Board members, and financiers, complemented by internal workshops. As stakeholder interests in Raute's core sustainability topics had not materially changed, the 2023-2024 insights were validated and carried forward into the 2025 update rather than re-collected. Views were documented in a dedicated stakeholder table, submitted to the Audit Committee for review and approval, and considered when assessing positive impacts and business opportunities and each IRO's affected stakeholder groups and time horizon (short-, medium- or long-term). A table sets out discussion topics, engagement channels and operational impact by stakeholder group: personnel (occupational safety, ethical conduct, DEI, whistleblowing, the climate transition plan), customers (product carbon footprint, energy efficiency, ethics) and business partners/suppliers (sustainability risk, ESG data, supply chain sustainability). The 2025 assessment did not indicate an immediate need to change Raute's strategy or business model.

Reference: page 28.

The 2025 double materiality assessment identified climate change (E1), resource use and the circular economy (E5), own workforce (S1) and business conduct (G1) as Raute's material topics, largely unchanged from the prior assessment, with limited refinements to the description, scope and classification of certain impacts, risks and opportunities reflecting improved methodological clarity and more precise value-chain and time-horizon definitions; these changes did not require changes to strategy or business model. Raute has considered the resilience of its strategy and business model at a high level as part of strategic planning and the double materiality process, assessing its capacity to manage identified material impacts and risks and respond to opportunities within its current strategic framework; it has not conducted a separate quantitative resilience analysis or scenario-based assessment across defined time horizons, and this will be developed further alongside the climate transition plan. On this qualitative basis, Raute considers its current strategy and business model resilient in the short to medium term, supported by its market position, long-term customer relationships and continuous product development. Financial effects of the identified risks and opportunities have not yet been quantified.

Reference: page 32.

Raute's process for identifying and assessing material impacts, risks and opportunities is integrated into its strategy and risk management. An extensive double materiality assessment carried out in 2023-2024 was reviewed in 2025 across all ESRS sub-topics and sub-sub-topics, applying the CSRD directive, ESRS standards and EFRAG guidelines, drawing on existing risk assessments, sustainability performance data, compliance reviews and policies, plus interviews and workshops with customers, financiers, analysts, employees, suppliers, and Board and Executive Board members. Impacts were scored on scale, scope and (for negative impacts) irremediable character, each 1-5, with actual positive impacts material above the average of scale and scope, actual negative impacts material above 3.5, and any driver scored 5 automatically making an impact material. Financial risks and opportunities were scored by magnitude and likelihood (multipliers from 90% down to 10%), material if the product exceeded 1.8 or if both scored 3 or higher. The methodology itself was unchanged from the prior period; the next review is planned as part of the regular annual cycle. Human rights impacts prioritised severity over likelihood per ESRS 1 paragraph 45.

Reference: page 36.

Raute's sustainability statement covers ESRS 1 general requirements, ESRS 2 General disclosures, and, where material, ESRS E1 Climate change, ESRS E5 Circular economy, ESRS S1 Own workforce and ESRS G1 Business conduct. E1 is covered comprehensively, except E1-7 and E1-8, which are not applicable as Raute does not use emission trading schemes or internal carbon pricing. For E2 Pollution, E3 Water and marine resources, and E4 Biodiversity and ecosystems, no material impacts, risks or opportunities were identified and these standards are not covered. E5 Circular economy is covered in full. For S1 Own workforce, disclosure requirements S1-7, S1-8, S1-10, S1-11, S1-12, S1-15, S1-16 and S1-17 were not identified as material and are not included; S1-13 is separately omitted under the Quick Fix transitional provisions (see BP-2). Within G1 Business conduct, G1-2, G1-5 and G1-6 were not identified as material and are not covered. The statement also applies phased-in disclosure requirements under ESRS 1 Appendix C and the Quick Fix Delegated Regulation, covering SBM-3 48(e), E1-9 and E5-6.

Reference: page 52.

Raute had previously communicated that its climate transition plan would be prepared and approved in 2025, but during the year it became evident that developing the plan required a higher level of granularity and methodological robustness in GHG data, particularly for Scope 3, than initially anticipated; a substantial part of 2025 was therefore devoted to improving Scope 3 calculation methodologies, data quality, documentation and accounting practices, and preparation and approval of the transition plan has been postponed. Raute currently estimates that the transition plan and the related resilience analysis will be completed by the end of 2026. Key elements of transition planning advanced during the year, including identification of material climate-related risks and opportunities and a preliminary assessment of use-phase emission-reduction potential. Neither Raute nor its sector is excluded from the EU Paris-aligned Benchmarks. Raute has set numerical Scope 1 and Scope 2 GHG emission reduction targets (see E1-4) but states its climate mitigation and adaptation targets "do not yet meet all minimum disclosure requirements under ESRS E1-1" pending the formal transition plan. A qualitative assessment of locked-in GHG emissions has not yet been conducted and will be carried out alongside the transition plan.

Back-filled from the ESRS 2 IRO-1 double materiality process and the E1 climate DMA narrative, where this content is disclosed in the FY2025 report (pages 33, 52). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

During 2025, Raute identified climate-related transition risks and opportunities as part of its double materiality assessment and transition-plan preparation, but "has not conducted a separate quantitative climate resilience analysis or a scenario-based assessment across defined time horizons" (page 33). It used scenarios only as "high-level reference inputs": "IPCC Representative Concentration Pathways (RCP 2.6-8.5) and global climate models were primarily used to identify relevant physical climate hazards" (page 33), and states plainly this "did not constitute a formal climate scenario analysis" (page 33). No 1.5C-aligned transition scenario or temperature projection is named; a dedicated Paris-aligned (1.5C) scenario analysis and asset-level exposure assessment "have not yet been conducted," targeted alongside the transition plan by end-2026 (page 52). Material physical risks identified include extreme weather, flooding and forest fires; transition risks include regulation and carbon pricing.

Also presented under ESRS 2 IRO-1 and E1 climate change (2023 ESRS numbering).

Back-filled from ESRS 2 SBM-3, where this content is disclosed in the FY2025 report (page 28). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

Raute states it "has considered the resilience of its strategy and business model at a high level as part of its strategic planning and double materiality assessment processes," assessing its "capacity to manage its identified material impacts and risks and to respond to related opportunities within its current strategic framework" (page 28). It is explicit about the limits: "At this stage, Raute has not conducted a separate quantitative resilience analysis or scenario-based assessment across defined time horizons. The resilience analysis will be further developed as part of the company's ongoing risk management and strategic planning processes" (page 28). On this qualitative basis, "Raute considers its current strategy and business model to be resilient in the short to medium term," citing its market position, engineered-wood focus, long-term customer relationships and product development, plus the opportunity from low-carbon construction and the circular economy (page 28). No significant uncertainty areas or capacity-to-adjust analysis are quantified.

Also presented under ESRS 2 SBM-3 and E1-1 (2023 ESRS numbering).

Reference: page 53.

Raute's environmental policy covers emission reductions, resource efficiency and the circular economy, and complies with the ten principles of the UN Global Compact. It commits Raute to minimising adverse environmental impacts; ensuring operations meet or exceed environmental laws; improving environmental performance through energy and material efficiency and reduced waste; setting ambitious environmental targets and reporting on progress; developing strategies to mitigate climate impacts and improve resilience; promoting the circular economy through long-lasting, repairable, upgradable and energy-efficient products; and supporting customers with resource-optimising solutions. The policy addresses material climate impacts (own emissions, non-renewable energy use, energy use in the product use phase), material risks (physical climate events, regulatory change, decarbonisation investment costs) and material opportunities (renewable materials in construction, demand for energy-efficient machinery). Raute has identified SDGs 8, 11, 12 and 13 as most relevant. The Executive Board approved the policy in 2024, with no revision since; the CFO is responsible for implementation, and the policy is publicly available and was reinforced by training across all production sites in 2025.

Reference: page 54.

Scope 1 and 2 actions remained focused on renewable energy, electrification and efficiency; Scope 3 work prioritised refining the Category 11 (Use of sold products) calculation methodology to establish a reliable baseline. Ten 2025 actions were implemented, including transition-plan groundwork covering a full review of Scope 1-3 emission sources; enhanced GHG data collection and calculation methodologies; electrification of vehicles and equipment with preparatory work for HVO biodiesel; increased renewable electricity and heating, including 100% renewable electricity and heating at the Lahti site; a full life-cycle assessment of the R7 Peeling Line; new MillSIGHTS energy-reporting features and a VOC treatment technology for dryers; training for approximately 60 designers on GHG reduction and circularity; and a dual-sourcing strategy for supply chain resilience. Actions planned for 2026 include finalising the climate transition plan, integrating regulatory risk into resilience assessments, and fuel switching to HVO biodiesel at Lahti. Raute has no longer-term climate investment or funding plan and finances operations primarily through cash flow, with cost tracking practices still under development.

Reference: page 57.

Raute set its first quantitative Scope 1 and Scope 2 GHG emission reduction targets in December 2024, using the SBTi target-setting tool as a methodological reference and designed to align with a 1.5°C pathway, though the targets have not been submitted to or validated by SBTi and so are not formally approved science-based targets. From a 2024 baseline, Raute commits to reducing Scope 1 emissions by 50% and Scope 2 emissions by 80% by 2030, a combined reduction of 725 tCO2e (62 tCO2e Scope 1, 663 tCO2e Scope 2). No Scope 3 reduction target has been set; Scope 3 targets are intended once the transition plan and a more granular calculation baseline are complete. 2025 is the first year Raute can report progress: Scope 1 emissions fell 36% to 64 tCO2e and Scope 2 fell 34% to 557 tCO2e, driven partly by the closure of the Changzhou site (which reduced Scope 2 by 265.76 tCO2e) and 100% renewable heating at Lahti for the first time. The 2024 baseline was not recalculated for the Changzhou closure, which is treated as an organic change.

Reference: page 58.

Energy consumption figures cover all Raute production and service sites across all countries of operation, sourced from Raute's own measurements, energy suppliers and property managers (with leased-office data allocated by floor area). Total energy consumption fell from 9,196.8 MWh in 2024 to 8,304.5 MWh in 2025, while the renewable share rose from 59.2% to 72.1% and the fossil share fell from 40.8% to 27.9%. The Lahti and Kajaani sites operate on 100% renewable-electricity contracts backed by guarantees of origin, and Lahti uses 100% renewable heating; the Delta site draws roughly 98% renewable electricity reflecting the regional mix. Fossil fuel consumption (petroleum products and fossil-sourced purchased electricity/heat) fell from 3,750.6 MWh to 2,319.4 MWh year-on-year. Raute operates in a sector classified as high climate impact under NACE 28.99 (manufacture of other special-purpose machinery); energy intensity per net revenue rose 5.25%, from 44.95 to 47.31 MWh/MEUR. Climate-related impacts from energy use are addressed through the actions described in section E1-3.

Reference: page 60.

Scope 1, 2 and 3 emissions are calculated under the GHG Protocol using Raute's internal tools with external methodological support, covering the same operations as the financial statements. Scope 1 covers fuel use in facility maintenance vehicles, leased cars and forklifts; Scope 2 covers purchased electricity and heat, calculated on both location- and market-based methods (0% covered by unbundled guarantees of origin in 2025, 100% supplied under GO-linked contracts). Scope 3 covers eight material categories: purchased goods and services, capital goods, fuel- and energy-related activities, upstream and downstream transportation and distribution, waste, business travel, use of sold products and end-of-life treatment; Category 9 (downstream transportation) was included for the first time in 2025. Gross Scope 1 emissions were 64 tCO2e (2024: 100), Scope 2 market-based 557 tCO2e (2024: 844), and total gross Scope 3 105,870 tCO2e, not comparable to 2024 (877,300) following a comprehensive Category 11 methodology overhaul. Total market-based GHG emissions per net revenue fell 86% to 606.7 tCO2e/MEUR, driven substantially by the Category 11 methodology change rather than operational reductions.

Reference: page 66.

Raute's Environmental Policy, approved by the Executive Board, sets the framework for minimising environmental impact across operations and the value chain, emphasising circular economy principles alongside the climate commitments described under E1-2. It commits Raute to promoting the use of renewable resources where possible and sustainable procurement of renewable natural resources, though it does not yet include a quantitative target for increasing secondary (recycled) resource use or reducing primary resource use. The policy addresses material negative impacts from Raute's dependence on non-renewable natural resources, particularly metals, and the material footprint of its own operations; material risks from regulatory developments and rising resource- and material-related costs, particularly for steel, cast iron and aluminium, including exposure to mechanisms such as the Carbon Border Adjustment Mechanism (CBAM); and material opportunities in Raute's product and service offering, which can directly improve resource efficiency and reduce emissions and resource consumption at customer sites.

Reference: page 66.

Actions on circularity and material efficiency are driven across business units, with Procurement and category managers coordinating supplier-related activity supported by the ESG team, and resources allocated through annual budgeting. Twelve actions were implemented in 2025 (labelled A/C), including the R7 Peeling Line life-cycle assessment; training on emission reduction and circularity for approximately 60 engineers; supply-chain resilience through dual-supplier arrangements and nearshoring; piloting bio-based adhesives with research partners; modernisation and upgrade projects extending equipment lifetime; digital monitoring solutions supporting raw-material yield and energy-efficiency measurement; integration of circularity criteria into investment decision-making; and a preliminary plan to embed circular-economy principles into R&D and product development. Actions planned for 2026 (labelled B/D) include a regulatory impact assessment on material costs, enhanced supplier engagement and data transparency, and expanded digitalisation across product lines. Financial resources primarily comprise operating expenses for product development, supplier engagement, digitalisation and modernisation, with some modernisation and upgrade expenditure capitalised.

Reference: page 68.

Raute had not set measurable, result-oriented and time-bound targets related to resource use and circular economy for the 2025 financial year; targets have instead been defined starting from the beginning of 2026, focused on improving resource efficiency through increased data availability, digitalised production monitoring, and the development of service-based business models that support extended equipment lifecycles. During 2025 Raute focused on establishing the foundations for target setting and implementation, including the actions disclosed under E5-2. Once the 2026 targets are implemented, Raute will monitor the effectiveness of its actions against the identified material impacts, risks and opportunities related to resource use and the circular economy.

Reference: page 68.

Based on project-level gross weight data for shipped deliveries, Raute estimates the total weight of technical materials used in products during 2025 at approximately 8,100 tons, up from 3,900 tons in 2024. Steel remained the dominant input, at 7,500 tons (93% of materials used) in 2025 versus 3,600 tons (91.7%) in 2024. According to suppliers, purchased steel contained around 27% recycled content in both years, equating to roughly 2,025 tons of recycled steel in 2025 (969 tons in 2024); this recycled-content figure is Raute's own estimate based on supplier information and does not cover other technical materials such as cast iron, aluminium, electronics or plastics. Other materials used include iron, aluminium, electrical and electronic components, and plastic and rubber. Raute states that the level of detail available for material inflows does not fully meet ESRS granularity requirements owing to system and supplier data limitations across the value chain, and that reaching the required detail would require substantial changes to item-level data management.

Reference: page 69.

Raute's key resource outflows are industrial machinery, analysing equipment, production lines, software solutions and related services; because of the nature of these products, circular economy principles are realised primarily through durability, repairability, upgradability and extended use at customer sites rather than through waste reduction or material reuse within Raute's own operations. Machinery can be upgraded or modernised to extend service life, with materials recovered and recycled at end of life; the product life cycle spans decades (typically 15 to 40 years), and Raute applies a reference service life of approximately 25 years for internal calculations, including climate assessments. Estimated life cycles by product line range from 25 to 35 years (e.g. Composers: average market life 25 years, Raute 35 years; Dryers, Lathe, Lay-up and pressing, and Analyzers: 30 years each). Raute does not use secondary reused components in new deliveries, as components are manufactured to customer-specific technical requirements, and there is a secondary market for used machines.

Reference: page 70.

Raute's most significant waste streams from its own operations are metal and wood waste, generated primarily at the Lahti site and directed to recycling, alongside energy, hazardous and mixed waste streams handled per applicable regulations. Total waste generated fell from 910 tons in 2024 to 551 tons in 2025, with 493 tons (89%) diverted from disposal, of which 455 tons was non-hazardous recycling. Non-recycled waste fell from 119 tons (13%) to 96 tons (17% of the smaller total), and hazardous waste fell from 49 to 30 tons. Waste figures for the Delta site are included for the first time in 2025, estimated using a cost-to-volume correlation method based on waste management invoices and container/compactor volumes, so the total is not directly comparable to 2024. Waste is sorted and treated in compliance with EU waste legislation and applicable local rules, with the aim of maximising recycling and reuse; Raute intends to improve the completeness and accuracy of waste data over time through closer cooperation with waste management providers.

Reference: page 72.

Raute's own workforce comprises all directly employed personnel (permanent, part-time, fixed-term and zero-hour contract employees) and is treated as a single group in the double materiality assessment; non-employees such as temporary agency workers and subcontractors' staff (e.g. in packaging and logistics) were assessed as non-material given their limited number and scope, and fall outside the S1 disclosures. Workforce-related matters are governed by three group-level policies applying across all operations and geographies: the Code of Conduct (approved by the Board, covering ethics, human rights, non-discrimination, and prohibition of forced and child labour, aligned with the UN Global Compact and ILO principles); the Occupational Health and Safety Policy (a zero-tolerance approach to unsafe conditions, with the right to stop unsafe work); and the Respect in the Workplace Policy (globally applicable, committing to DEI and zero tolerance for discrimination, harassment or bullying). Draft policies are circulated internally for input from relevant functions and HR before approval, and workforce human rights concerns can be raised through HR, safety channels or the confidential whistleblowing channel.

Reference: page 74.

Raute engages its own workforce and workers' representatives through established recurring channels, both directly and, where applicable, through representatives, in line with local practices and legal requirements. Direct engagement includes regular line manager discussions, performance and development reviews, personnel information sessions, training events, internal communications and company-wide meetings; the "Employees' Voice" concept structures feedback gathering through broad annual personnel surveys complemented by more frequent Pulse surveys covering working conditions, well-being, diversity and inclusion, with results reviewed at team, unit and management level to identify development actions. Engagement with workers' representatives follows applicable local labour laws and collective bargaining agreements: in Finland, through technology industry collective agreements and shop steward practices; at sites outside Finland, through locally applicable cooperation and consultation arrangements. These channels inform Raute's assessment of actual and potential workforce-related impacts and support workforce management decision-making.

Reference: page 74.

Raute promotes an open, transparent culture under its Code of Conduct, supported by whistleblowing channels, defined sanctions against retaliation, training, and measures to protect whistleblowers. Personnel are encouraged to report potential misconduct early, first through their supervisor or HR, or otherwise through an electronic whistleblowing channel operated by a third party, described further under G1-1; anonymous reporting is supported. Raute has not identified employee groups requiring dedicated or additional protection measures beyond its group-level policies, based on its assessment of workforce composition and the nature of its operations. Issues raised are documented, tracked and handled per established internal procedures, with the functioning and effectiveness of reporting channels monitored regularly through Ethics team oversight of reported cases, resolution processes and channel awareness; feedback from employees, training sessions and internal dialogue is used to assess whether channels are accessible, trusted and effective and to identify potential improvement needs.

Reference: page 74.

Raute addresses material workforce impacts, risks and opportunities through structured HR, occupational health and safety, and people-development processes, coordinated through a Group-level safety function working with local safety officers, site management and HR. Fourteen actions were implemented in 2025 (labelled E1-E8), including strengthening safety leadership and culture through management training and coaching; implementing Life Critical Standards and Golden Safety Rules; site-level preventive risk management through safety rounds, 5S audits and hazard assessments; embedding safety-by-design principles into machinery and production solutions; training and competence development under a 70-20-10 learning model; rollout of a Performance Development Framework and job rotation; and DEI capability building including the "Achieve Together Through Inclusion" campaign and inclusive recruitment practices. Actions planned for 2026 (labelled F1-F5) include expanded safety reporting and travel/project safety practices, strengthened machinery safety compliance, and continued DEI awareness. Financial resources primarily relate to operating expenses in personnel and other operating expense lines.

Reference: page 76.

For the 2025 reporting year, Raute established selected measurable and time-bound workforce-related targets for the first time, set by HR and occupational health and safety functions in a limited internal working group; employees and workers' representatives were not directly involved in target-setting. Targets, with a 2024 baseline and 2028 horizon, include: increasing global female representation to 15% (12% baseline, 11% in 2025); an Inclusion Index score of at least 75 (71.1 baseline, 71.9 in 2025); a "Good" to "Very Good" employee engagement rating and an improving Employee Net Promoter Score (baseline eNPS 8, -4 in 2025); at least 93% completion of annual performance and development dialogues (79%/76% baseline, 68%/63% in 2025); a 50% reduction in the Total Recordable Injury Frequency Rate (11.3 baseline, 11.6 in 2025); increased safety observations per employee (0.93 average in 2025); and annual new safety-enhancing product features (13 actions in 2025). Progress is monitored by the responsible functions through regular review of workforce metrics; 2025 is the first year with reportable progress against these targets.

Reference: page 79.

Employee data was collected from Mepco in January 2026 and reflects headcount as of 31 December 2025; almost all employees are permanent, full-time staff. Total headcount fell from 783 in 2024 to 698 in 2025 (619 male, 79 female), reflecting the closure of the Changzhou, China production facility, which reduced China headcount from 47 to 0 while the wider "China" line in the country table (largely the former Changzhou site) shows the year-on-year change. By country, 2025 headcount was distributed as Finland 538, USA 23, Canada 98, and other APAC/EMEA/AME locations 39. Of the total, 607 male and 78 female employees were permanent, with 12 male and 1 female temporary employees, and 3 employees on non-guaranteed hours (used only in Finland). Employee turnover rose from 15.6% (122 departures) in 2024 to 23.1% (161 departures) in 2025, a change substantially attributable to the Changzhou site closure.

Reference: page 80.

Raute's total headcount by age band was 72 employees under 30, 387 aged 30-50, and 239 over 50 in 2025, out of 698 total (2024: 97, 441 and 245 of 783). In top management (defined as including Line Managers but excluding the Executive Board), gender distribution shifted from 13 women and 74 men (14.9%/85.1%) in 2024 to 8 women and 75 men (9.64%/90.36%) in 2025, a decline in female representation at this level against the S1-5 target of 15% overall female representation by 2028.

Reference: page 80.

Raute has an ESRS-aligned systematic approach to occupational health and safety, covering the organisational structures, responsibilities, practices and procedures needed, though it does not hold a certified safety management system; 100% of the workforce is covered by this approach in both 2024 and 2025. There were zero work-related fatalities in both years. The number of recordable accidents fell from 16 in 2024 to 14 in 2025, with the recordable accident rate improving from 6.3 to 5.8 (per million hours worked) and the Lost Time Injury Frequency (LTIF) rising from a corrected 11.3 to 11.6. Days lost to work-related accidents, injuries or ill health fell from 153 to 83. A calculation error affecting the 2024 LTIF and TRIF (working-hours normaliser, based on an estimate later replaced by primary data) led to a restatement of the 2024 comparative figures; from 2026, Raute will use TRIF as its primary external safety indicator. Non-employee safety metrics are not included, under transitional provisions.

Reference: page 81.

Raute's governance-related material impacts, risks and opportunities relate to business ethics, anti-corruption, legal and regulatory compliance, whistleblower protection and responsible conduct across own operations and the value chain, addressed through the Code of Conduct and supporting policies including the Anti-Corruption Policy, Respect in the Workplace Policy, Environmental Policy and, newly implemented in Q3 2025, the Supplier Code of Conduct. The Code of Conduct is approved by the Board and updated by the Board; implementation responsibility sits with the Board, President and CEO, CFO and Chief People Officer. Raute's corporate culture is set from the top and reinforced through ethical principles embedded in daily operations, internal communications, leadership practices and regular training; in 2025, 90% of employees completed the basic Code of Conduct e-learning (against a 95% target) and 84% of employees in roles exposed to bribery or corruption risk received targeted Anti-Corruption training. Effectiveness is monitored via policy compliance, whistleblowing reports and investigations, with material issues escalated to the Executive Board and Board.

Reference: page 86.

Raute applies a zero-tolerance approach to corruption and bribery under its Code of Conduct, reinforced by mandatory annual Code of Conduct e-learning (91.3% completion in 2025) that includes anti-corruption content, plus targeted training for employees in roles exposed to such risks. In 2025 Raute conducted a corruption exposure assessment covering all departments and roles for the first time (none was carried out in 2024), and identified high-risk functions such as sales, procurement, project execution, service operations, finance and customer-facing roles; of these individuals, 84% received the mandatory Code of Conduct training and, where applicable, role-specific additional training, delivered through three 1.5-hour instructor-led sessions by an external expert. No separate anti-corruption training was organised specifically for the Board of Directors. Raute's whistleblowing channel is a key detection tool alongside internal controls; the company performs thorough internal investigations of any reported or discovered potential incident and cooperates with authorities, though the number of reports received is not disclosed publicly to protect confidentiality.

Reference: page 87.

Raute's sustainability statement is prepared under the 2023 ESRS, which had no standalone business conduct targets DR; business conduct targets are instead addressed via MDR-T. During 2025, Raute introduced selected quantitative targets and began monitoring progress for the first time, with 2025 as the first reportable year against a 2024 baseline: maintaining Code of Conduct training coverage of at least 95% of employees (97.6% baseline, 91.3% in 2025); delivering annual ESG-related training to own personnel (covering environmental policy, anti-corruption, circularity and safety training, no prior baseline); by 2028, having 80% of key suppliers by procurement spend committed to Raute's Code of Conduct or an equivalent standard (47.8% in 2025); and conducting at least ten supplier audits annually including ESG aspects (13 completed in 2025). For other material business conduct topics without a quantitative target, including anti-corruption and bribery mitigation, corporate culture and whistleblowing, Raute states these "are managed through policies, internal controls, and actions" rather than formal targets (page 87), consistent with MDR-T's alternative of describing how effectiveness is tracked in the absence of one.

Reference: page 86.

No convictions or fines for violations of anti-corruption or anti-bribery laws were recorded against Raute or members of its personnel or supervisory bodies in either the 2025 reporting year or the prior comparative period (2024); the number of convictions and the number of fines are both zero for both years. Potential cases of corruption and bribery were monitored throughout both years through Raute's whistleblowing channel and internal control processes, and no cases of corruption or bribery were identified through either channel in 2024 or 2025.