HAV Group ASA - Sustainability report 2023

HAV G roup ASA

REPORT 2023 A SUSTAINABLE FUTURE AT SEA

ABOUT THIS REPORT

This is HAV Group’s second sustainability report and applies to the reporting period 1 January to 31 December 2023. The report was published on 30th April 2024 and complements HAV Group’s 2023 financial report. The company publish sustainability reports on an annual basis.

The data and information in this report is provided on an aggregated level and include all HAV Group subsidiaries (Norwegian Electric Systems AS, HAV Design AS, Norwegian Greentech AS and HAV Hydrogen AS).

The report has been prepared in accordance with the Global Reporting Initiative Standards (GRI) and the Euronext Guidelines for sustainability reporting.

This report has been read and approved by HAV Group’s Board of Directors. It has not been externally assured by a third party.

We welcome feedback. For questions or comments, please contact:

Lene Moen Karlsen

Marketing and Communications Advisor lene.moen.karlsen@havgroup.no

Holmefjordvegen 1 6090 Fosnavåg

Norway

+47 70 08 01 80 office@havgroup.no

THIS IS HAV GROUP:

An enabler of the green transition at sea

HAV Group is an international provider of technology and services for maritime and marine industries. Although the group was formally established as late as 2021, it comprises four subsidiaries – HAV Design, HAV Hydrogen, Norwegian Greentech and Norwegian Electric Systems – that have several decades of combined industry experience. The company possesses special expertise in guiding the marine and maritime industries towards zero emissions.

HAV Group’s services and solutions include:

• SHIP DESIGN: Supplier of innovative ship design, pioneering the design and construction of zero and low-emission vessels

• ENERGY DESIGN AND SMART CONTROL SYSTEMS: Supplier of sustainable energy systems, electric propulsion, automation and NavCom systems for a wide range of vessels

• HYDROGEN-BASED ENERGY SYSTEMS: Supplier of zero-emission, hydrogen-based energy systems for vessels

• WATER TREATMENT SYSTEMS: Supplier of ballast water treatment systems and other water treatment systems for aquaculture and maritime use

Our experience and expertise, as well as the focus on efficiency, safety, and sustainability, lay the foundation for developing and delivering high-quality innovative solutions to our customers in the seafood, energy, and transport sectors.

HAV Group is a privately owned company listed on Euronext Growth (ticker: HAV). The company is headquartered in Fosnavåg, Norway, with offices in Bergen, Ålesund and Egersund (Norway), Sopot (Poland), Matulji (Croatia) and Istanbul (Turkey).

Ålesund

Fosnavåg

Matulji

istanbul

Membership organisations

HAV Group and the company’s subsidiaries are members and play an active part in the following organisations:

• ÅLESUND KUNNSKAPSPARK (ÅKP): ÅKP is located on campus in Ålesund and the hub’s core goal is to contribute to creating tomorrow’s jobs and building a more attractive region to live and work in. ÅKP is a regional center for innovation and economic development, including one of the country’s most complete incubator systems, the cluster programs BLUE Maritime – Global Centre of Expertise, Legasea and Norwegian Rooms and several other national and international projects.

• MARITIMT FORUM (NORDVEST ): Maritimt Forum is an interest organisation that brings together the entire Norwegian maritime industry. Its 700 members contribute to developing a world-leading and holistic maritime cluster. Maritimt Forum brings together both the employee and employer side of the industry, and represents common interests of the cluster.

• NÆRINGSLIVETS HOVEDORGANISASJON (NHO): The Confederation of Norwegian Enterprise (NHO) is Norway’s largest organisation for employers. Its current membership of 32.000+ companies ranges from small family-owned businesses to multinational companies in most sectors. NHO is the leading spokesperson on behalf of business and industry in Norway. Having expert knowledge and an extensive business network, NHO plays an important and constructive role in Norwegian society.

• GCE BLUE MARITIME CLUSTER: The Norwegian maritime cluster is a world leader in design, construction, equipment and operation of advanced vessels for the global ocean industries. In 2014, due to its unique global market position and its important contribution to Norwegian value creation, the cluster was granted the status of a Global Centre of Expertise.

• OCEAN HYWAY CLUSTER: Ocean Hyway Cluster is Norway’s leading network for hydrogenbased solutions for the maritime sector. The cluster work closely with the industry to exploit the commercial opportunities of new hydrogen technology solutions to make Norway a global leading hydrogen player.

Sustainability strategy

Sustainability is core to our success and an integral part of HAV Group’s overall strategy and way of work. Our vision is a sustainable future a sea, a future that is Paris aligned, energy efficient, ocean friendly and safe, fair and inclusive for all.

HAV Group has a key role to play in the green transition for the marine and maritime industries, by:

• Developing and supplying integrated low and zero emissions solutions

• Guiding the marine and maritime industries towards zero emissions

• Driving sustainability throughout our value chain and across our entire product life cycle

• Developing sustainability expertise and engagement across all members of staff

• Excelling through partnerships

In 2023 we started a process to revise our sustainability strategy, involving all subsidiaries to help redefine our key goals, commitments and priorities going forward.

The HAV Group’s sustainability strategy supports and aligns with our business strategy, following our overarching vision and values:

ENVIRONMENT : SOCIAL:

Enabling the green shift at sea

• Technologies and services for the maritime green transition

• Becoming a net zero company

• Limiting environmental impacts across product life cycle

Making people and our local communities thrive

• Safe and healthy work environments

• Diverse and inclusive workplace

• High job satisfaction and continuous development

• Supporting our local communities

GOVERNANCE:

Trusted and responsible partner

• Ethical business conduct

• Sustainability throughout our value chain

• Transparent reporting and open stakeholder dialogue

From visions to actions

As part of the 2023 strategy project, HAV Group identified overall risks and opportunities, as well as drivers and material topics among key stakeholders, before defining ambitions, long-term goals and short-term targets.

Continuing in 2024, we will finalise the updated ESG key performance indicators (KPIs) and responsibilities. Key actions and initiatives are already well implemented, but we will spend 2024 to improve our data collection processes and continue to report on our progress as transparently as possible.

UN Sustainable Development Goals

HAV Group is committed to the Paris Agreement goal to limit global warming to well below 2 degrees Celcius, preferably 1.5 degrees Celsius, compared to pre-industrial levels, and the entire UN 2030 Agenda.

All 17 Sustainable Development Goals are interconnected. We have decided to focus specifically on the following goals and targets, where we consider our impact to be greatest:

SDG 7: Ensure access to affordable, reliable, sustainable and modern energy for all.

Target 7.3: By 2030, double the global rate of improvement in energy efficiency.

SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.

SDG 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development.

Target 14.1: By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution.

Stakeholder dialogue and materiality assessment

In 2022, HAV Group conducted a stakeholder mapping, which identified the following stakeholder groups and how HAV Group engages with them:

Stakeholder group

Investors

Board of Directors (BoD)

Employees, including management

Suppliers and business partners

Customers

Industry associations

Government & regulatory authorities

Definition

Any person or other entity who have invested in HAV Group with the expectation of receiving financial returns.

The governing body of HAV Group, elected by shareholders to set strategy and oversee management.

A person with employment at HAV Group.

Engagement activities

• Quarterly and annual reports

• Quarterly webcast presentations

• Company presentations

• ESG survey

• Board meetings

• HAV Academy activities

• Monthly dialogue meetings with employee representatives

• Annual employee interview an Questionnaire

• ESG survey

• Social events

Vendors and businesses whom HAV Group procures goods or services from.

A person or company buying goods or services from HAV Group.

Organisations that support the industries in which HAV Group operates within.

• ESG survey

• Common R&D projects

• Sales and design processes

• Customer services.

• ESG survey.

• Regular meetings

• Seminars and conferences

• ESG survey

• NHO membership

• Third party validation

• Local political dialogue

• Audits

Local communities

People or communities who are licing within the area of HAV Group’s operations.

• Sponsoring activities

In January 2022, an interdisciplinary group representing owners, employees, customers, and suppliers carried out a systematic stakeholder dialogue with selected external and internal stakeholders. The group included investors, employees, board members, management, suppliers, clients, and innovation clusters. These groups were emailed an ESG survey that comprised of 18 questions about sustainability and HAV Group. The intention was to map respondents’ perceptions of the company on different sustainability topics, the importance of each topic, and improvement points for HAV Group.

While the company did not undertake a systematic dialogue with local communities or government and regulatory authorities in 2022, the company engaged with these groups through other activities, such as quarterly presentations and participation at conferences.

The findings from the 2022 stakeholder dialogue were gathered for discussion by HAV Group, and the company’s actual and potential impact on each topic was evaluated. The result of the 2022 materiality assessment can be seen in Figure 3 below:

10. Ethical business conduct

Product and service-related health and safety

. Talent attraction, development, and retention

Employee diversity and inclusion

Products, solutions, and services for the green transition

Energy efficiency

Product lifecycle management

Emissions to air (entire supply chain)

Technology and system innovation

11. Responsible supply chain

12. Responsible marketing and communication

13. Data security and privacy

14. Office environmental management

15. Waste and wastewater management

16. Energy management (own operations)

17. Hazardous materials management

18. Impacts on local communities and services

These were then summarised in three overarching categories, which constitute our material topics:

• Environmental protection, including products, solutions, and services for the green transition, energy efficiency, emissions to air, and responsible supply chain.

• People, including occupational health and safety, product and service-related health and safety, talent attraction and development.

• Ethics and transparency, including ethical business conduct and responsible supply chain.

HAV Group plans to build further on the stakeholder dialogue and update the materiality assessment in future reports. 1. Occupational health and safety risks

AMBITIONS :

Enabling the green shift at sea through solutions and actions for low and zero emissions, improved energy efficiency and limited environmental footprint across products’ life cycle.

Our environmental approach: Enabling the green shift at sea

2024 priorities

• Finalise first Scope 3 assessment / develop methodology for in-use emissions from products (Scope 3, category 11)

• Finalise 2023 climate assessment

• Develop roadmap to become climate neutral by 2030

• Pilot first EPD for ballast water system

• Assess and disclose waste generation (incl. ratio of non-recycled waste)

Background

Shipping is considered a hard-to-abate sector, meaning that it is more difficult to decarbonise this industry compared to many others. The current greenhouse gas (GHG) emissions strategy of the International Maritime Organization (IMO) has a target of a 40% reduction in CO2 intensity by 2030, a reduction of 50% of total GHG emissions by 2050, and zero emissions as soon as possible within this century. The need for new and greener solutions seems more important than ever, and we therefore see the high potential that our technologies and designs can have on reaching IMO’s objectives.

Our ambition is to enable the green shift at sea through solutions and actions for low and zero emissions, improved energy efficiency and limited footprint across products’ life cycle.

Impact assessment

As a technology and service supplier for maritime and marine industries, HAV Group has the opportunity and responsibility to positively contribute to the global green energy transition and accelerate the shift towards zero-emission operations. Our work on vessel design, electrification, and hydrogen systems is part of the solution for the shipping sector. We are passionate about using our knowledge to solve these challenges by creating energy efficient products and cutting emissions, while at the same time increasing our customers’ profitability, competitiveness, and value creation by giving them a tool for the future.

Despite our positive contribution to GHG emission abatement, all our systems involve industrial manufacturing, which have can also have a potential or actual negative environmental impact

from the sourcing of materials to the disposal of the products. To counter these impacts, HAV Group values a circular approach to our business, which aims to reduce negative impact, reuse where we can, and recycle the rest. In general, we place sustainability high when we select suppliers and purchase system components, as well as in the crucial vessel design process.

HAV Group considers itself to be an enabler of the green transition at sea. This claim is backed up by the provision of numerous products and services that support the marine and maritime industries towards the goal of zero emission, including:

• Ship design: HAV Group advises customers regarding selection of vessel parameters and technologies that allow them to increase their competitiveness and enable the green transition at sea. The company provides pioneering innovations in the design and construction of low and zero-emission vessels and energy-optimised ship designs. This entails developing the most efficient vessels possible, covering every aspect of the vessel’s functionality and performance, including environmental performance, through concept development, detail design, equipment selection, procurement, system engineering and integration. Further, innovative simulation-based ship design enables analysis and documentation of reallife performance of a vessel – before it has been built. In total, HAV Group possesses the competence and tools available to help shipowners design, develop and construct low and zero emission vessels, thereby supporting the global maritime industry in reaching its emission targets.

• Energy design and smart control systems: HAV Group supplies low and zero emission energy, propulsion, and control systems for the global marine market. Detailed knowledge about vessel operations – from bridge to propeller – and specialist competence in integrating energy sources, including electric propulsion, and charging systems, allow design of optimal power and propulsion systems that keep emissions to a minimum. Smart control systems and software platforms for navigation, automation and control ensure even more fuel-efficient operations. These products and systems are key enablers to achieve low and zero emissions, and can be applied to newbuilds or retrofitted on board existing vessels, making it easier for shipowners to reduce emissions from their fleets.

• Hydrogen-based energy systems: HAV Group is a supplier of complete and scalable zero-emission hydrogen-based energy systems for vessels. The systems are suitable for both vessel newbuilds and retrofits. The company has developed maritime-based energy systems with liquid hydrogen tank below deck and a container-based hydrogen system to be installed on deck. Adoption of hydrogen as ship fuel is considered a vital part of the transition to more sustainable shipping. HAV Group is one of the global frontrunners in offering approved hydrogen-based energy systems for ships. Installed effect can be used for the main propulsion systems, or for additional power supply on board the vessel to comply with green operation standards. Quayside, hydrogen systems can ensure sufficient green power supply to the vessel, which does not need to rely on onshore charging infrastructure to achieve zero emission status.

• Water treatment systems: HAV Group is a supplier of ballast water treatment systems for ships and other water treatment systems for the aquaculture industry. The spread of invasive species is recognised as one of the greatest threats to the ecological and the economic wellbeing of the planet. Efficient treatment of ballast water prevents the unwanted spread of invasive species. The ballast water treatment system is available for retrofit. Process water treatment for aquaculture production is key to maintain fish health and avoid detrimental effect on local environment. Further, HAV Group’s water treatment products have a chemicalfree system that does not pollute the marine environment.

In total, the products, systems, and services that HAV Group provide can have a substantial positive effect on the climate and the environment as they are enablers to achieve sustainable, low and zero emission transport at sea. Any negative environmental effects are associated with emissions from the manufacturing of the products, but these emissions are very limited compared to the massive emission reductions that can be realised through their use.

Policy commitment

HAV Group operates in accordance with relevant national and international environmental legislation. Additionally, we have established an HSEQ Policy which outlines the company’s approach to environmental topics. We strive to have the most energy efficiency products at any time, and the company’s activities shall not expose persons, equipment, property or environment for risk or damage. We shall assess our influence on the environment, minimise waste, discharge to water, soil and air and ensure an effective and responsible use of energy.

We also expect suppliers to comply with international and national environmental legislation, standards, and discharge permits, as stated in our Supplier Code of Conduct. Suppliers are expected to minimise their environmental impact through continuous improvement. Chemicals and other hazardous substances are to be identified, managed, and disposed of safely. The supplier is encouraged to use environmentally friendly technologies, materials, products, and services and to minimise harmful discharge, emissions, and waste. When asked, the supplier should report on its environmental performance, with particular emphasis on evaluating the potential risks of present and future assets and operations.

It is the Health, Environment, Safety and Quality (HSEQ) manager in each subsidiary and the HSEQ Director at group level who are responsible for following up our environmental policies. Employees in HAV Group shall act with respect and attention to the environment

Actions

In 2023, HAV Group started developing the company’s sustainability strategy, focusing on all topics considered material to the company, including our environmental approach. In this process we decided that our most important long-term ambitions are to:

• Enable our customers to succeed in the maritime green transition,

• Become a net-zero company, and

• Minimise negative environmental impact throughout our products’ life cycle.

We then established relevant KPIs and actions, pointed out a responsible person for follow-up, and developed a 2024-2026 plan to meet our objectives.

In October 2023, we decided to move our carbon accounting (which was previously done manually) over to CEMAsys’ online platform, to get a better understanding and overview of the group’s emissions, in particular our Scope 3 emissions. While it is our ambition to report on all actual emissions, we realise that it will take some more efforts to improve our data collection processes, and it is therefore important to start with where our impact is most significant. We arranged several workshops with our subsidiaries, which identified the following Scope 3 categories as our first priority:

• Category 1 (spend-based): Purchased goods and services

• Category 3: Fuel- and energy related activities

• Category 4: Upstream transportation and distribution

• Category 6: Business travel

• Category 7: Employee commuting

Based on this, we started collecting relevant data from all subsidiaries, which led to an improved carbon accounting for 2023.

Performance

Scope 1 covers emissions from sources that an organisation owns or controls directly. As the nature of our business does not require us to burn fuels, this means that our Scope 1 emissions are low. HAV Group’s Scope 1 emissions are mainly linked to our four company-owned cars.

Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling. HAV Group’s Scope 2 emissions are linked to electricity consumption at our offices in Norway, Poland, Croatia, and Turkey.

We do not manufacture the systems we sell, so most of the GHG emissions linked to our operations fall under Scope 3 (other indirect emissions).

1 This includes all subsidiaries.

Gases includes CO2, while CH4 is considered in the electricity emission factors. We have not measured refrigerant injections in the offices we operate. We do not have any biogenic CO2 emissions.

2021 is the base year for our Scope 1 and 2 emissions (the year HAV Group was established) and 2023 is the base year for our Scope 3 emissions (first time available data). We have used an operational approach for emissions consolidation.. See appendix 4 for detailed information regarding emission factors used for 2023.

Making people and our local communities thrive by creating a safe, attractive and empowering workplace for all and supporting our local communities

Our social approach: Making people and our local community thrive

2024 priorities

• Develop a safety protocol and procedures

Establish an employee health service

• Develop an action plan to achieve our ‘40 by 30’ diversity goal

• Continue our collaboration with NAV

• Conduct another employee survey

• Continue our collaboration with schools and universities

Impact assessment

Through HAV Group’s materiality assessment, the company has defined talent attraction, development and retention, occupational health and safety and product and service-related health and safety as material topics for the company to work and report on, as we can have an actual or potential direct or indirect impact on all of these topics.

Policy commitment

HAV Group shall ensure a happy and healthy working environment for employees. Our goal is to be considered an attractive employer that people would like to pursue a career with and that have a low turnover. We shall also facilitate for learning and development among our employees. Our ambition is also to provide a safe working environment, and we have a zero-incident approach and seek to limit occupational illnesses.

We have several policy documents linked to the People focus area, including:

• Recruitment Policy

• Personnel handbook (“personalhåndbok”)

• HSEQ Policy

• Stop-work-policy (describing the process for workers to remove themselves from work situations that can cause injuries or ill health)

• Supplier Code of Conduct

While every employee is expected to contribute to a good working environment, HAV Group’s Chief Human Resource Officer (CHRO), together with the HR manager, are the main responsibles for this topic in both the parent company and most subsidiaries. For NES specifically, the Managing Director is responsible. Furthermore, HAV Group have established a Working Environment Committee (“AMU”), and all subsidiaries have appointed their own safety representatives (“verneombud”). HAV Group (the parent company) will appoint its own safety representant in Q1 2024. Employees have elected union representatives, who regularly communicate with the management group.

Actions

Talent attraction, development and retention

Our recruitment policy shall ensure that we employ qualified personnel who are dedicated and skilled to fulfil the company’s goals. Our workforce consists of people with a background mainly within engineering, logistics and project management.

Because we work in a highly competitive environment, it is important for HAV Group to early position ourselves and to be seen as an attractive employer for young employees. We therefore take part in annual career fairs at relevant universities and colleges, and we have established internship and apprentice programmes aimed at recruiting candidates for future positions. Both programmes run throughout the year, including the summer. Additionally, we are in the process of establishing a programme that will offer students the possibility to write their master’s thesis with us.

HAV Group is also part of the JA-Bedrift initiative (“YES-initiative”), a project initiated by the Fosnavåg municipality with the objective of making school more varied for students and introduce them to future employment opportunities.

Furthermore, we have established a collaboration with the Norwegian Labour and Welfare Administration (NAV) to look at how we can offer jobs to people that for various reasons have ended up outside the workforce. We are also an active participant in the “Bli med hit!” (“Joinus!”) project, which is a collaboration between Molde Næringsforum, Kristiansund and Nordmøre

Næringsforum and Næringsforeningen in the Ålesund region, that aims to recruit and retain workers in the region.

Our goal is to keep valuable competence and experience within the firm, to motivate workers to stay in the workforce beyond 62 years of age. Therefore, maintaining a good work-life balance is important to the company. Employees can use flexible work hours or reduced working hours to meet other important obligations in their daily lives.

There have been no significant fluctuations in HAV Group or its subsidiaries in 2023, except from in NES. NES went through a challenging restructuring process in 2023, which led to a significant change in the company’s leadership team.

It is important for us to facilitate professional and personal development for our employees. HAV Group regularly sponsor learning courses for employees. However, HAV Academy is our most important learning area. The HAV Academy consists of two different training programmes – one for all employees and one for leaders:

Through our basic training programme , we offer employees an arena for learning, inspiration, and motivation. In the basic training programme, employees share their experiences across business areas and roles and gain extended knowledge about the different companies in the group, their system and procedures.

Through our leadership training programme , we seek to strengthen relational competence and become more confident in leadership roles. The participants’ work with concepts such as vision, values, culture, and business models, getting basic understanding of topics such as accounting and finance.

Occupational health and safety

We work every day to maintain and develop a strong health and safety culture. Managers are responsible for establishing procedures and routines regarding health and safety, while employees are expected to comply with these guidelines. We encourage staff to actively contribute with suggestions that can improve occupational health and safety, and to stop work which may cause accidents, damage, or unsafe situations.

Some of HAV Group’s subsidiaries are certified according to ISO 9001 (Quality Management Systems). All employees (100%) are covered by the health and safety management system, which is referred to as TQM. Workers who are not employees are not covered by the system.

We continuously work to identify work-related hazards and risks, for example through the Safe Job Analysis. Our management system is based on findings from these assessments, which are conducted on a routine and non-routine basis. Regular communication and employee involvement are essential elements of our safety system.

The occupational health service assists us with, among other things, risk assessments, safety rounds and health examinations. We hold regular meetings with union representatives and safety representatives where health and safety are on the agenda.

All employees receive information about health and safety as part of the onboarding process, this also include an introduction to proper use of equipment and safety gear if relevant. Safety representatives undergo a basic course related to the working environment. A first aid course is held annually, and all employees are required to participate.

HAV Group and subsidiaries have installed defibrillators in every office. Every other year, a defibrillator course is organised, and fire exercises are also held annually. A crisis plan has recently been developed, and a crisis exercise will be arranged for HAV Group in in 2024.

Few high-consequence risks have been identified but work that our service engineers carry out on board boats at foreign shipyards can potentially pose a risk of high-consequence injury (0 in 2023). The main type of work-related injury is musculoskeletal injuries. To improve this, all offices have installed desks, chairs and screens that can be raised / lowered, depending on each employee’s individual needs.

If work-related incidents do occur, we will use case handling in TQM to describe the incident, what measures we took to prevent the incident from developing further and investigative measures. Employees can also report work-related hazards or dangerous situations through the TQM or our Integrity Channel (anonymous whistleblowing system). In 2023, two HSE injuries (one with absence) were registered among NGT’s service engineers, up from zero in 2022. The injuries were caused during the instalment phase of a newbuild and were due to a failure of the lifting device. The injuries were reported in the TQM system and to NAV, and we have reviewed our routines for improvement.

We offer comprehensive benefits to all employees, including an insurance package with personal insurance that goes beyond the statutory occupational injury insurance, in addition to recreational accident, group life, illness/disability and travel insurance. We also offer treatment insurance, preventive health checks and individual follow-up. Temporary and part-time employees have access to the same health/insurance benefits as full time employees.

Product and service-related health and safety

We expect our suppliers to ensure a safe and healthy working environment for their employees, and to minimise workers’ exposure to potential safety hazards through design, preventative maintenance, safe work procedures, safety training and the use of protective gear. Suppliers shall also have procedures and systems in place to prevent, manage, track, and report occupational injuries and illness, as outlined in our Supplier Code of Conduct.

Incidents and injuries that happens during instalment of products shall be reported to HAV Group, who investigates and follow-up with appropriate measures. Injuries or incidents that are related to HAV Group’s products but that happens after the product have been installed are reported back to the company on a voluntary basis (so far, the company has not received any such reports).

A risk assessment has been conducted for the use of HAV Group’s products. However, no risks have been identified. For example, none of HAV Group’s products contain chemicals or other hazardous materials, and there are no pinch-points hazards related to use.

Performance1

Table 1: Gender distribution for different employee categories

Table 2: New hires by gender and age 1

1 Only employees in Norway included.

Table 3: Employee turnover 1

1 Only employees in Norway included.

Table 4: Parental leave 1

1 Only employees in Norway included.

Table 5: Work-related injuries (all employees)

1 All numbers in head-count at the end of the reporting period

AMBITIONS:

HAV Group shall be the preferred partner for suppliers, clients and commercial and financial partners through ethical business conduct, ensuring sustainability across our value chain and by providing transparent reporting and engaging with stakeholders

Our governance approach: Trusted and responsible partner

2024 priorities

• Make sure that all employees receive information about anti-corruption

• Conduct an annual supplier risk assessment on human rights, decent working conditions and environment and climate

Continue to deliver annual reports that corresponds to international standards

• Conduct a double materiality assessment as per the CSRD recommendations

• Continue our collaborations with key stakeholders

Background

Corruption is broadly linked to negative impacts, such as poverty in transition economies, damage to the environment and abuse of human rights. It is vital for HAV Group to maintain an invaluable reputation for corporate trustworthiness, consistently conducting business with integrity and in compliance with the laws and regulations governing the company´s activities.

Employees must practice fair dealing, honesty, and integrity in every aspect in dealing with other employees, business relations and customers, the public, the business community, shareholders, suppliers, competitors, and government authorities. The company’s corporate values and commitment to sustainable development shall be reflected, promoted, and implemented in policies, decisions, and actions.

Impact assessment

HAV Group delivers products and services worldwide within ship design and equipment. Thus, there are several risks linked to corruption that the company needs to be aware of and monitor. Since HAV Group aims to sell its products worldwide, it is occasionally expedient or necessary to use intermediaries or agents to open doors to new markets and establish relations with new customers. Such intermediaries are normally only paid if their endeavours are successful (signature of a contract), and they therefore have a strong closing incentive.

The group will usually have limited knowledge of and control over the intermediary’s operations, and it is therefore a risk that corruption can occur in connection with such contracts. Intermediaries who operate on their own are deemed to entail a greater risk than intermediaries or agents that are employed by recognised brokerages.

Some countries entail a greater risk of corruption than others. Since the HAV Group have international presence, a concrete assessment must be conducted to determine if more detailed investigations or measures are necessary.

Additionally, persons with decision-making powers in relation to third parties may be exposed to corruption risk. Within the Group, this applies to the management, procurement personnel, sales personnel, and the Board.

Policy commitment

HAV Group shall adhere to integrity, governance, and responsible business practices in all our operations. The group is committed to conduct its businesses with integrity, in accordance with internationally proclaimed human rights and with the aim of furthering sustainable development. In this respect, the group recognises the importance of its suppliers, contractors, subcontractors, distributers, agents, consultants, and joint venture partners in achieving this pursuit.

HAV Group expects that members of the Board and employees act in a fair and honest manner and demonstrate integrity in all their dealings with other employees, business associates and clients, the public, the business community, shareholders, suppliers, competitors, and public authorities. The group’s core values and commitment to sustainable development shall be reflected, promoted, and implemented through the guidelines, decisions, and actions. As such, HAV Group believes that it has a positive impact on anti-corruption.

HAV Group follows Norwegian anti-corruption laws. In addition to the company Code of Conduct and Supplier Code of Conduct, HAV Groups has established an Anti-Corruption Policy for the Group and its companies. These documents are available on the Group’s website and are included in all employment contracts.

Actions

Risk of sanctions and corruption shall always be examined and assessed in relation to new markets, customers, and partners. Risk assessments are conducted using online indicators or indexes. The Head of Legal Affairs in HAV Group has the overall responsibility to develop and maintain appropriate guidelines in this area. All employees, partners and other stakeholders shall be informed about the Group’s policies regarding business ethics and anti-corruption. Updates to the policies are communicated in internal messages in the company.

All suppliers are requested to comply with the Supplier Code of Conduct and warrant that it conducts and will continue to conduct its business in a responsible and ethical manner and in accordance with the provisions of the Code. Agreements with intermediaries or agents and suppliers must include adequate anti-corruption provisions. These provisions must ensure that the contract can be terminated should corruption be found to exist with the counterpart and must include an obligation to cover any financial loss suffered by the relevant company in connection with termination of the contract. The relevant company Board shall be informed about the use of agents or intermediaries in connection with the approval of contracts.

HAV Group believes that openness and good communication throughout the organisation promotes a better work culture. The company has previously organised an anti-corruption training for employees with the assistance of an external course provider and will offer refreshment training for both employees and board members in 2024.

HAV Group acknowledges the risk of violations of the Code of Conduct and depends on the willingness of employees and external parties to raise concerns to uphold high ethical standards. Examples of violations include, but are not limited to, fraud and corruption, harassment and discrimination, and violations of environmental and human rights.

The group facilitates internal notifications should circumstances be found to exist that are subject to penal sanctions (including corruption), or that are in violation of statutory obligations or prohibitions, or in breach of the company’s Code of Conduct or generally accepted ethical standards.

Employees are encouraged to use their right and responsibility to report concerns. This also applies to external parties, including employees of associated companies. The whistleblower decides what information is to be provided. There is no requirement that the whistleblower can prove the event, act, or omission. However, to allow HAV Group to perform adequate follow-up actions, the report should include as much detail as possible and, if available, supporting evidence.

Reports of concerns can be made to HAV Group’s Integrity Channel, managed by the Head of Legal Affairs and the Senior Vice President Human Resources. The Integrity Channel offers the whistleblower the possibility to report anonymously. It is of utmost importance for HAV Group to ensure predictability measure corruption risk. For sanctions matters, external advisors perform integrity due diligence when found necessary and confidence for all those who raise a concern. HAV Group’s core principles for handling reports of concerns are:

• Fair and objective process

• Protection of the whistleblower against retaliation

• Protection of the legal rights of the individual who is the subject of the report

• Confidentiality

• Protection of sources

• Protection of personal data

HAV Group published its first sustainability Human Rights and Transparency Act report in April 2023 and has updated the report in 2024 (see appendix). The company has also established a full corporate governance report that address NUES (The Norwegian Code of Practice for Corporate Governance) recommendations that can be found in the annual report and on the company’s website.

Total no. of fines for instances of non-compliance with laws and regulations that were paid during the reporting period

Total no. of confirmed incidents in which employees were dismissed or disciplined for corruption

Total no. of confirmed incidents when contracts with business partners were terminated or not renewed due to violations related to corruption

HAV Group’s subsidiaries

We design energy-efficient ships

Established 2005 Offices 3

Headquarter Fosnavåg, Norway

Employees 61

Managing Director Stig Magne Espeseth

HAV Design is a global leader within energy efficient and competitive ship designs with zero emission ambitions. With a proven track-record of more than 100 ship designs, state-of-the-art know-how, and virtual design tools, HAV Design accommodate low and zero-emission solutions.

Sustainability highlights

Our experience and expertise, as well as our focus on efficiency, safety, and sustainability, lays the foundation for developing and delivering highquality innovative solutions to customers in the seafood, energy, and transport sectors.

Construction begins on Crowley-Esvagt wind farm service vessel

In 2023, Fincantieri Bay Shipbuilding began construction on a 289-foot service operation vessel (SOV) for a Crowley-ESVAGT joint venture that will house and transport technicians to maintain U.S. offshore wind farms. The vessel will be built using the cutting-edge HAV 832 SOV design, and this is the 12th SOV that ESVAGT is developing together with HAV Design.

This vessel, for the joint venture CREST Wind, will operate under a long-term charter with Siemens Gamesa Renewable Energy. 2023 marked the ceremonial start of construction for the vessel, and senior leaders from the partner companies around the country came to Door County to witness the first pieces of steel being cut and welded. “We are excited to get started on this important vessel,” said Marco Galbiati, CEO of Fincantieri Marine Group. “The work that this vessel will support is critical to energy solutions here in the United States.”

“This vessel will support America’s goals of cleaner, renewable energy by providing an innovative, reliable and safe environment for those servicing the wind turbines off the U.S. coast,” said Bob Karl, senior vice president and general manager of Crowley Wind Services. “We congratulate the women and men who led us to this milestone for this modern, high performing vessel that will help support next-generation energy solutions.”

SOVs are purpose-built vessels used to accommodate and transport wind-farm technicians to service and maintain wind turbines at sea. Crowley is an innovative U.S. maritime, energy and logistics solution company serving the offshore wind market, while Denmark-based ESVAGT is the leading provider of SOV services in Europe.

“We are delighted to help bring a leading SOV concept to the US market together with our partners and are looking forward to supporting the high-quality construction of this innovative vessel.” said Kristian O. Jakobsen, ESVAGT’s deputy CEO and head of operations.

The SOV will feature state-of the art technologies to augment safety, workability and comfort to support the operation and maintenance of wind installations. It will have modern accommodations for 80 crew and technicians. Consistent with federal law, the vessel will be U.S.- built and flagged. The ship will utilize the HAV 832 SOV design, made by HAV Design AS, of Norway, and it is considered one of the best in the industry. The vessel is scheduled to enter service in 2026, when it will support the Coastal Virginia Offshore Wind Project.

We are a total supplier of hydrogen-based energy systems for vessels

HAV Hydrogen delivers complete and scalable hydrogen systems for both new vessels and retrofit vessels. We are a complete supplier of hydrogen energy systems for integration in vessels, pre-studies, energy optimization studies and

Sustainability highlights

cooperation with the policy instrument system, and use advanced computer technology to create energy-efficient ships with a lower environmental impact.

Successful test of hydrogen fuel cell with control system

Successful test of hydrogen fuel cell with control system

HAV Hydrogen and Norwegian Electric Systems (NES) have completed a successful laboratory test of a hydrogen fuel cell in combination with a maritime control system. The successful test is a continuation of the FreeCO2ast project that has developed a high-capacity hydrogen-based energy system that can be retrofitted onboard ships.

“This brings us another step closer to realizing our objective of making the first commercial delivery of a fully integrated hydrogen-based energy system for ships,” says Kristian Osnes, managing director of HAV Hydrogen.

The scope of the project was to test NES’ proprietary control system and interface with a hydrogen fuel cell and associated drives, including validation of the system design, software and hardware. In addition, control, safety systems and barriers for the integration of the fuel cells were tested.

In the test, the hydrogen fuel cell was benchmarked against a meticulously simulated load profile, developed using advanced simulation tools from the ground-breaking FreeCO2ast project.

“Securing a robust interface between the hydrogen fuel cell and the control system is normally a complex and challenging task. We made it work in a short space of time, which is something we are very proud of,” says Siv Remøy-Vangen, managing director of NES.

Both HAV Hydrogen and Norwegian Electric Systems are subsidiaries of Norway-based provider of low and zero emission maritime technologies, HAV Group ASA.

The successful test was conducted in cooperation with Clara Venture Labs, hosted by Sustainable Energy at its Energy House test facility at Stord, Norway. Independent research institute Sintef Ocean, which developed the test’s simulation model, was also project partner.

The test is a continuation of the FreeCO2ast project which has developed a high-capacity hydrogen energy system that can be retrofitted onboard one of Havila Kystruten’s coastal cruise ships.

“This test was an important milestone, providing valuable learning for the future development of a largescale hydrogen-based energy system,” concludes Kristian Osnes.

The FreeCo2ast project is supported by the Norwegian Research Council and Innovation Norway. Major project partners include Havila Kystruten and HAV Group’s subsidiaries HAV Design, Norwegian Electric Systems and HAV Hydrogen, in addition to the research institutions Sintef Ocean and Clara Venture Labs.

Established

Expert in energy design and smart control

Managing Director Siv Remøy Vangen

Norwegian Electric Systems (NES) is a world leading supplier within energy efficiency and zero emission operations. Since 2007, NES have installed and proposed solutions for a wide range of vessels for the global marine market. The company have in-depth knowledge about different energy solutions and design optimal propulsion systems

Sustainability highlights

for different vessel types. The company also have extensive experience from Automation and Control systems and through flexible software platforms and new solutions for navigation, automation, and control, NES ensure efficient, safe and easy operations.

Successful test of hydrogen fuel cell

HAV Hydrogen and Norwegian Electric Systems (NES) completed a successful laboratory test of a hydrogen fuel cell in combination with a maritime control system. The successful test continues the FreeCO2ast project, which has developed a highcapacity hydrogen-based energy system that can be retrofitted onboard ships.

“This brings us another step closer to realizing our objective of making the first commercial delivery of a fully integrated hydrogen-based energy system for ships,” says Kristian Osnes, managing director of HAV Hydrogen.

The scope of the project was to test NES’ proprietary control system and interface with a hydrogen fuel cell and associated drives, including validation of the system design, software and hardware. In addition, control, safety systems and barriers for the integration of the fuel cells were tested. In the test, the hydrogen fuel cell was benchmarked against a meticulously simulated load profile, developed using advanced simulation tools from the ground-breaking FreeCO2ast project.

“Securing a robust interface between the hydrogen fuel cell and the control system is normally a complex and challenging task. We made it work in a short space of time, which is something we are very proud of,” says Siv Remøy-Vangen, managing director of NES.

Both HAV Hydrogen and Norwegian Electric Systems are subsidiaries of Norway-based provider of low and zero emission maritime technologies, HAV Group ASA. The successful test was conducted in cooperation with Clara Venture Labs, hosted by Sustainable Energy at its Energy House test facility at Stord, Norway. Independent research institute Sintef Ocean, which developed the test’s simulation model, was also project partner.

The test is a continuation of the FreeCO2ast project which has developed a high-capacity hydrogen energy system that can be retrofitted onboard one of Havila Kystruten’s coastal cruise ships.

“This test was an important milestone, providing valuable learning for the future development of a largescale hydrogen-based energy system,” concludes Kristian Osnes.

The FreeCo2ast project is supported by the Norwegian Research Council and Innovation Norway. Major project partners include Havila Kystruten and HAV Group’s subsidiaries HAV Design, Norwegian Electric Systems and HAV Hydrogen, in addition to the research institutions Sintef Ocean and Clara Venture Labs.

Eco-friendly ballast tech

Established 2010

Offices 1

Headquarter Fosnavåg, Norway

Employees 23

Managing Director Håvard Gjelseth

Norwegian Greentech

Norwegian Greentech (NGT) is the leading provider of compact highly energy-efficient ballast water treatment systems (BWTS) for small and mediumsized vessels, where innovative solutions, space efficiency and reliably meets the international discharge standards.

Based on Norwegian heritage, experience, quality focus and innovative solutions, our insights provide customers with a head start, increases their

Sustainability highlights

competitiveness, and enables them to realise the green shift towards a sustainable future at sea.

NGT focus on water treatment systems for the maritime industry and the main products are ballast water treatment systems and process water treatment systems for live fish carriers and land-based aquaculture. NGT BWMS make use of the latest UV & filter-technology commercially available today and the company has sold more than 700 treatment systems so far.

Norwegian Greentech has been approved as an apprenticeship provider

We are thrilled to announce that Norwegian Greentech has been approved as an apprenticeship provider at OTEK Sunnmøre in the fields of Logistics and Industrial Mechanics.

”We are excited to embark on this new journey, shaping the future for young talents in these industries. In the time ahead, we will be making plans on how best to welcome and guide students in their educational paths”, says Håvard Gjelseth, Managing Director at NGT.

Being part of this process and contributing to the development of the next generation of professionals is something we look forward to with great enthusiasm. We would like to express our gratitude to OTEK Sunnmøre for the trust they have placed in us, and we anticipate an exciting collaboration that will assist young talents in thriving and building a brighter future for sustainable technology.

Appendices

Human Rights and Transparency Act Report 2023

1. About

1.1 The Norwegian Transparency Act

The Norwegian Transparency Act entered into force on 1 July 2022. According to the Transparency Act, larger enterprises are required to carry out due diligence of fundamental human rights and decent working conditions. The Transparency Act is based on the UN’s Guiding Principles on Business and Human Rights (UNGP) and the OECD’s guidelines for multinational enterprises.

1.2 Our policy for handling requests of information

According to the Transparency Act, HAV Group is required to provide information on the handling of actual and potential adverse impacts to fundamental human rights and decent working conditions in its supply chains. Any enquiry for information will be answered as swiftly as possible and within the deadlines set out in the Transparency Act.

1.3 HAV Group ASA

HAV Group ASA, together with its main subsidiaries HAV Design AS (“HDE”), HAV Hydrogen (“HHY”), Norwegian Greentech AS (“NGT”) and Norwegian Electric Systems AS (“NES”) is an international provider of technology and services for maritime and marine industries. Although formally established in 2021, HAV Group has several decades of industry experience. The Group possesses special expertise in guiding the marine and maritime industries towards zero emissions. The Group’s services and solutions includes:

• SHIP DESIGN: Supplier of innovative ship design, pioneering the design and construction of zero and low-emission vessels

• ENERGY DESIGN AND SMART CONTROL SYSTEMS: Supplier of sustainable energy systems, electric propulsion, automation and NavCom systems for a wide range of vessels

• HYDROGEN-BASED ENERGY SYSTEMS: Supplier of zero-emission hydrogen-based energy systems for vessels

• WATER TREATMENT SYSTEMS: Supplier of ballast water treatment system and other process water treatment systems for aquaculture and maritime use

Our experience and expertise, as well as the focus on efficiency, safety, and sustainability, lays the foundation for developing and delivering high-quality innovative solutions to our customers in the seafood, energy, and transport sectors.

HAV Group is a privately owned company listed on Euronext Growth Oslo (ticker: HAV). The Group is headquartered in Fosnavåg, Norway, with offices in Bergen, Ålesund and Egersund (Norway), Sopot (Poland), Matulji (Croatia) and Istanbul (Turkey).

2. Guidelines and routines

Good corporate governance forms the basis for the Group’s value creation. Our corporate culture is founded on good business practice, openness, honesty, and respect for other people. The Group shall adhere to integrity, governance, and responsible business practices in all our operations.

At HAV Group, we strive to ensure that our internal control mechanisms, organisation, and management structures comply with good corporate governance principles. The Group has implemented guidelines (policy documents) related to fundamental human rights and decent working conditions within the enterprise and throughout the supply chain. The guidelines are part of the Group’s efforts to embed responsible business conduct into policies and management systems.

Our main governing documents for dealing with ethical business conduct and human rights specifically are the Group’s Code of Conduct for Business, Ethics and Corporate Social Responsibility (the “Code of Conduct”) and the Supplier Code of Conduct. Both documents are available on https://www.havgroup.no/about/corporate-responsibility/

2.1 Code of Conduct

The Code of Conduct has been adopted to underscore the principles by which HAV Group conduct its relations with employees, business partners and other stakeholders. The Code of Conduct applies to all Board members and employees. We encourage suppliers, consultants and other business partners within our sphere of influence to adopt the principles of the Code of Conduct, and in the assessment of potential and current suppliers, the principles described in the Code of Conduct shall be applied.

Figure 1: HAV Group’s value chain.

2.2 Supplier Code of Conduct

We are committed to conducting our businesses with integrity, in accordance with internationally proclaimed human rights and with the aim of furthering sustainable development and we recognise the importance of our suppliers, contractors, subcontractors, distributers, agents, consultants, and joint venture partners in achieving this pursuit.

The Supplier Code of Conduct communicates the Group’s expectations for suppliers and business partners, and any supplier of the Group is required to comply with the Groups Supplier Code of Conduct. The Supplier Code of Conduct includes information about compliance with legislation, respect for human and labour rights, decent working condition, child labour, working hours, wages, non-discrimination, freedom of association, health and safety, etc.

The supplier is required to report on potential and actual adverse impacts, and if any potential or actual adverse impacts are detected, the Group has the right to demand efforts from the supplier to rectify the situation. The Group takes a partnership approach in relation to suppliers by proactively seeking continuous improvement also on the part of suppliers, but in severe cases the Group has the right to terminate the contract.

2.3 Whistleblowing – the Integrity Channel

The Group has established reporting systems and procedures to facilitate internal and external notifications if circumstances can be found to exist that are subject to penal sanctions, or that are in violation of statutory obligations or prohibitions, or in breach of the company’s Code of Conduct or generally accepted ethical standards. Examples of violations include, but are not limited to, fraud and corruption, harassment and discrimination, and violations of environmental and human rights laws. There is no requirement that the whistleblower can prove the event, act, or omission.

Reports of concerns can be made through the Group’s Integrity Channel (available on HAV Group’s website), which offers the whistleblower the possibility to report anonymously, and where the whistleblower’s identity will be kept confidential to the extent permitted by the applicable personal data regulations. Employees and external parties are encouraged to use their right and responsibility to report concerns.

The Group has not received any complaints linked to actual or potential negative impact on human rights and decent working conditions in the reporting period.

3. Impact assessment

3.1 Negative consequences

The Global Economy’s Human Rights and Rule of Law Index considers the relationship between the state and its population insofar as fundamental human rights are protected and freedoms are observed and respected. The higher the indicator’s value, the less protected are the human rights and the rule of law in the country.

Although the Group has offices in Poland, Croatia and Turkey, the Group’s main operations take place in Norway, where the risk of human rights violations is perceived to be low (0.5 as per the Human rights and Rule of Law Index). However, the Group is also dependent on suppliers that operate globally, which makes human rights violation and decent working conditions important topics for us.

The Group has implemented guidelines to identify and assess adverse impacts, prevent and mitigate such impacts, track improvements and communicate any findings and results. The Group regularly carries out due diligence, proportionally to the size of the Group enterprises, the nature of the businesses, the context of the operations, and the severity and probability of adverse impacts on fundamental human rights and decent working conditions.

As part of its due diligence processes, the Group has created an initial overview of its areas of operations and type of relationship with suppliers and business partners. Based on the initial scoping process, the Group performs a risk and impact assessment of prioritised operations, suppliers and business relationship in order to identify and assess specific actual and potential adverse impacts. Where significant risks or impacts are detected, the company will consider how to cease, prevent or mitigate the adverse impacts and/or risks in accordance with its guidelines. The Group will track implementation and results, and report on this in accordance with the Transparency Act.

Assessments (‘due diligence’) of the potential adverse impact on human rights and decent working conditions are always made when entering into contracts with new suppliers, and entails for instance that the supplier receives information about our ethical guidelines, request for more information from the supplier itself and some suppliers also have to fill out our ESG questionnaire where we request information on topics such as:

• Due diligence and supply chain management

• Human rights and decent working conditions

• Use of short-term employment

• Forced labour

• Child labour

• Working hours, wages, and benefits

• Non-discrimination

• Freedom of association

• Health and safety

Based on previous assessments, we have found terms of employment, wages and workhours, discrimination, health and safety, data privacy and sexual harassment to be the main risk areas that should be considered when choosing suppliers and business partners.

In 2023, the Group conducted additional assessments of existing suppliers. In these assessments, we have listed all of the Group’s suppliers (more than 100) based on for example size, industry, and country of operations. We have also looked into whether the supplier itself was subject to the Transparency Act as well as the Norwegian law on collective bargaining agreements, which many of our suppliers are.

The assessment confirms that the risk of human rights breaches in the Group is generally low. Main risks are however related to some of NES’ and NGT’s suppliers which are operating in countries where the risk of human rights breaches is higher, where the supplier has a lot of sub-suppliers, is dependent on a high degree of foreign workers, and/or are operating in risk-related industries such as textile, cleaning, and transport (where wages and occupational health and safety can be a risk). The Group have a long-term cooperation with several of our suppliers, which is likely to further reduce risks.

3.2 Measures taken

In addition to implementing relevant policy documents, a channel for reporting irregularities and distributing a supplier questionnaire, the Group has taken a number of measures in order to mitigate risks in our supply chain.

KPIs

Based on the findings of the risk assessment conducted in 2023, we have collected additional information about selected suppliers, such as certifications obtained, the company’s sustainability/CSR report or other relevant documentation, which is saved and evaluated/discussed. Several of our suppliers have implemented their own ethical guidelines, are members of the UN Global Compact (UNGC) and/or are certified according to the ISO 9001 certification (Quality Management System).

3.3 Going forward

Going forward we will continue to look closer into selected suppliers, in particular those that are using a significant number of subcontractors or a high degree of foreign workers, to make sure that payments and decent working conditions are considered. In this connection we will establish an online supplier questionnaire that helps us to further identify risks, and also make sure that all suppliers receive and sign the Supplier Code of Conduct. These measures are likely to further reduce the risk of negative consequences and halt present activities that might have negative impact.

Report on equality and non-discrimination

1. Introduction

According to the Norwegian Equality and Anti-Discrimination Act §26, Norwegian employers shall make active, targeted, and systematic efforts to promote equality and prevent discrimination in the workplace 1 . Under the Act, all public and private companies that employ more than 50 persons are required to investigate and analyse risks of discrimination or other barriers to equality and implement and evaluate measures suited to counteract discrimination and promote greater equality and diversity in the workplace.

As of 31 December 2023, HAV Group (the parent company) had a total of 20 employees which means that we are not legally required to issue a public statement regarding our work on equality and non-discrimination. However, this is an important focus area for us, and we are therefore reporting with reference to the recommendations from The Norwegian Directorate for Children, Youth and Family Affairs (Bufdir).

In the rest of this document, HAV Group refers to both the parent company and its subsidiaries 2

2. State of gender equality and pay gaps3

In 2023, the Group had a total of 159 employees, where 34 (21%) are women and 125 (79%) are men. All employees are based in Norway, Poland, Croatia and Turkey.

At the end of the reporting period, HAV Group had 159 permanent employees, where 34 (21%) are women and 125 (79%) are men. In the same reporting period, the Group had 157 full-time employees, with 33 (21%) being female and 124 (79%) being men. The big difference in the number of male and female permanent and full-time employees is because more men than women choose to pursue a career within our sector. In terms of part-time, temporary, and nonguaranteed hour employees, there are no significant differences between men and women.

1https://lovdata.no/dokument/NLE/lov/2017-06-16-51

2 In addition to this aggregated report, HAV Design and NES

Both women and men are entitled to parental leave. In 2023, 1 woman and 6 men took out parental leave across the Group.

Equal pay for equal work is an important principle in HAV Group. In 2023, women earned 98% of men’s salary.

3. Work for gender equality and non-discrimination

3.1 Principles, procedures and standards for equality and anti-discrimination

HAV Group aims to be a workplace where there is full equality between women and men. The working environment shall be fair and inclusive, with equal opportunities for all. Our policy commitment (principles and procedures) relating to this topic is referenced in the company Code of Conduct, which can be accessed on our website.

We want to attract the right competence regardless of nationality, gender, sexual orientation, nationality or language and this is reflected in our HR strategy as well as an important factor in all our recruitment processes.

HAV Group does not tolerate any form of discrimination, harassment, or degrading treatment of employees. We respect and support basic human rights and labour rights, including the UN’s Declaration of Human Rights, the OECD’s guidelines for multinational enterprises and the ILO’s declaration on fundamental principles and rights in the workplace. When recruiting new employees, every candidate will be evaluated based on their qualifications and skills only.

We expect employees and others to report unwanted and undesirable behaviour. Reports can be made to HAV Group’s Integrity Channel, managed by the Head of Legal Affairs and the Senior Vice President Human Resources, and relevant personnel are required to determine corrective actions or improvements needed in the occupational health and safety management system. All reports will be handled with discretion and without reprisals for the person reporting.

3.2 This is how we work to ensure equality and non-discrimination in practice

We have established several initiatives across the Group to prevent obstacles to equality. HAV Group (the parent company) is for example a member of the Women’s International Shipping & Trading Association (WISTA International). Its objective is to attract and support women at the management level, in the maritime, trading and logistics sectors. As a member, HAV Group (the parent company) have committed to the ‘40 by 30 Initiative’, meaning that we will promote diversity and strive towards increasing the share of women in leading positions to 40% by 2030.

To monitor progress and to make sure that we have an equal and inspiring working environment free of any discrimination, we keep a close dialogue with employees through personnel and all-hands meetings. We also conduct an employment survey every year where we specifically ask about equality and non-discrimination. We also conduct development talks with employees annually, where questions or concerns regarding diversity and inclusion can be raised.

Our efforts are made to accommodate working conditions to the extent possible, particularly concerning parental leave arrangements. We also emphasise that leave periods do not hinder career development in our company. In 2022, we gained further experience in working from home and collaborating through digital tools. We also offer flexibility when it comes to part time work or reduced working hours. This makes it easier for employees to combine their work at HAV Group with other obligations in their life, such as caring for parents or small children.

We are committed to ensuring that our employees receive compensation and conditions following laws, agreements, and guidelines. Our compensation framework is reviewed annually during salary negotiations. This ensures that all employees receive a market-competitive pay following their competence, experience, and professional level, and this goes for both our male and female employees.

When recruiting new employees, we make sure that the job advertisement is aimed at attracting both men and women. All employees – including those who work part time, temporary or contracted – are informed about job vacancies through the Intranet. We also participate at career fairs and similar events where we highlight the industry opportunities for both male and female talents. Diversity and equality is also a topic of discussion in our collaboration with TEKNA (the Norwegian trade union for scientist, technologist and students), FLT (a trade union for engineers, production managers, middle managers, team leaders and technical staff in the private sector) and NITO (Norway’s largest trade union for engineers and technologists).

3.3 General risks for discrimination and obstacles to gender equality

The Union representatives and management have identified the following potential risks and barriers regarding gender equality:

• Hard to combine work and sound family life

• Male-dominated industry

3.4 Objectives

To minimise risks for discrimination and obstacles to gender equality, HAV Group have decided to prioritise the following activities / set the following objectives:

1. Conduct employee interviews and satisfaction surveys annually.

2. Attend career fairs, etc. to change a traditional mindset indicating that certain professions are only for men or women. Our goal is to attend at least 2-4 career fairs each year.

3. Be proactive in conveying the exciting industry we have and the job opportunities we can offer to students before they make choices about their educational path after lower secondary school. It is therefore a goal to participate in ”career days” held during the last year of lower secondary school.

4. We are continuously working on the content in our job advertisements. We aim to have a conscious approach to our use of images, for instance by using more pictures of women in our digital campaigns.

5. Continue the HAV Group Basic Training programme for all employees and both men and women.

6. Ensure that the Group have an inclusive work culture and polices that support work-life balance.

7. Develop and establish a mentoring program for female employees, where women are both participants and mentors.

8. Be visible and talk about our commitment to diversity and inclusion, and show it by participating in conferences, seminars and on other relevant arenas.

9. Have a system for securing equal pay and have objectives to increase the proportion of women at management level. Publish the figures to show progress.

10. Ensure that the Group has flexible work time arrangements and that employees are offered the possibility to work from home.

Develop and establish a zero-tolerance policy for gender-based discrimination and harassment in our workplace. Make sure employees are aware of the policy and know how to report any incidents.

3.5 Results of the work and expectations for the work going forward

We have not received any reports of misconduct or discrimination in the reporting period.

3.6 Action overview and action plan

We have reviewed the diversity work together with the Union representatives, as well as updated the action plan in this area. This has formed the basis for new targets for 2024, and the status of this work shall be reviewed at the quarterly collaboration meetings that the management has with the union representatives and safety representatives.

Generally speaking, the status of this work is good and no areas have been identified to require special focus in the coming year. It is nevertheless important to have a good awareness of the relevant topics and that these are handled in all areas where it is relevant.

All measures that are defined have the purpose of contributing to the achievement of the goal of equality at work.

Appendix 3: GRI content index

HAV Group ASA has reported the information cited in this GRI content index for the period 1st January to 31st December 2023 in accordance with the GRI Standards.

1. The Organization and its reporting practices

2. Activities and worker

2-1 Organizational details

2-2 Entities included in the organization’s sustainability reporting

2-3 Reporting period, frequency and contact point

2-4 Restatements of information

2-5 External assurance

2-6 Activities, value chain and other business relationships

2-7 Employees

3. Governance

2-8 Workers who are not employees

2-9 Governance structure and composition

2-10 Nomination and selection of the highest governance body

This is HAV Group

About this report

About this report

About this report

About this report

This is HAV Group + Human rights and Transparency Act Report + Membership organisations

Our social approach (performance, table: gender distribution for different employee categories) + (performace, footnote) + Actions) + (performance, table: Employee turnover)

N/A: The report has not been externally assured.

The work of the board of directors + The board of directors’ composition and independence

Nomination Committee + The board of directors’ composition and independence

2-11 Chair of the highest governance body ”The board of directors’ composition and independence”

2-12 Role of the highest governance body in overseeing the management of impacts

2-13 Delegation of responsibility for managing impacts

2-14 Role of the highest governance body in sustainability reporting

2-15 Conflicts of interest

The work of the board of directors

The work of the board of directors

About this report + The work of the board of directors

The work of the board of directors

Information incomplete: The company is reporting employee categories by gender, but not by region.

Information unavailable: We do not report information about workers who are not employees.

N/A; No specific committees responsible.

N/A: The Chair is not e senior executive in the company.

N/A: The Board is responsible for reviewing and approving the reported information.

4. Strategy, policies and practices

2-16 Communication of critical concerns Our governance approach (actions)

2-17 Collective knowledge of the highest governance body

2-18 Evaluation of the performance of the highest governance body The work of the board of directors

2-19 Remuneration policies

5. Stakeholder engagement

2-20 Process to determine remuneration

Implementation and reporting on corporate governance + The work of the board of directors + Remuneration of the board of directors + Remuneration of executive personnel

Implementation and reporting on corporate governance + The work of the board of directors + Remuneration of the board of directors + Remuneration of executive personnel

Information unavailable: As HAV Group is not listed on a regulated market, the Company is not required to prepare an annual remuneration report. The Company has therefore not deemed it necessary to develop specific guidelines for remuneration of executive personnel. Instead it follows established company practice when deciding executive management remuneration.

Information unavailable: As HAV Group is not listed on a regulated market, the Company is not required to prepare an annual remuneration report. The Company has therefore not deemed it necessary to develop specific guidelines for remuneration of executive personnel. Instead it follows established company practice when deciding executive management remuneration.

2-21 Annual total compensation ratio

2-22 Statement on sustainable development strategy

2-23 Policy commitments

2-24 Embedding policy commitments

CEO letter (annual report)

Our governance approach (policy commitment) + Human rights and transparency act report (Guidelines and routines)

Our governance approach (policy commitment + Actions) + Human rights and transparency act report (Guidelines and routines)

2-25 Processes to remediate negative impacts  Human rights and transparency act report (3.1 Negative consequences) + Our governance approach (actions) + Human rights and transparency act report (2.3 Whistleblowing – the Integ rity Channel)

2-26 Mechanisms for seeking advice and raising concerns

2-27 Compliance with laws and regulations

2-28 Membership associations

2-29 Approach to stakeholder engagement

2-30 Collective bargaining agreements

Our governance approach (actions) + Human rights and transparency act report (2.3 Whistleblowing – the Integrity Channel) + Compliance and anti-corruption (table)

Membership associations

Stakeholder dialogue and materiality assessment

Information unavailable: The company does not have the percentage of employees covered by collective bargaining agreements.

N/A: There have been no significant instances of non-compliance with laws and regulations during the reporting period.

3-1 Process to determine material topcis

3-2 List of material topics

Stakeholder dialogue and materiality assessment

Stakeholder dialogue and materiality assessment + Sustainability strategy

GRI 3: Material topcis

OUR ENVIRONMENTAL APPROACH

GRI 305: Emissions 2016

3-3 Management of material topics

305-1 Direct (Scope 1) GHG emissions

305-2 Energy indirect (Scope 2) GHG emissions

305-3 Other indirect (Scope 3) GHG emissions

OUR SOCIAL APPROACH

GRI 3-3 Management Approach 2021

3-3 Management of material topics

Our environmental approach (Performance)

Our environmental approach (Performance)

Our environmental approach (Performance)

Our environmental approach (Impact assessment) + Our environmental approach (Policy commitment) + Our environmental approach (Actions) + Our environmental approach (Perfomace) + Stakeholder dialogue and materiality assessment

GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018

403-1 Occupational health and safety management system

403-2 Hazard identification, risk assessment, and incident investigation

403-3 Occupational health services

403-4 Worker participation, consultation, and communication on occupational health and safety

403-5 Worker training on occupational health and safety

403-6 Promotion of worker health

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

403-8 Workers covered by an occupational health and safety management system

Our social approach (Actions, Occupational health and safety)

Our social approach (Actions, Occupational health and safety, product and service-related health and safety)

Our social approach (Actions, Occupational health and safety, product and service-related health and safety)

Our social approach (Actions, Occupational health and safety)

Our social approach (Actions, Occupational health and safety)

Our social approach (Actions, Occupational health and safety)

Our social approach (Actions, Occupational health and safety)

Our social approach (Actions, Occupational health and safety)

Information incomplete: The company does not report on fatalities or injuries for workers who are not employees. We are not reporting the number of hours worked.

GRI 401: Employment

GRI 405: Diversity and Equal Opportunity

403-9 Work-related injuries

403-10 Work-related ill health

401-1 New employee hires and employee turnover

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

405-1 Diversity of governance bodies and employees

GRI 406: NonDiscrimination 2016

OUR GOVERNANCE APPROACH

GRI 3-3 Management Approach 2021

406-1 Incidents of discrimination and corrective actions taken

Our social approach (Actions, occupational health and safety + Performance)

Our social approach (Actions, occupational health and safety + Performance)

Our social approach (Performance)

Our social approach (Actions, Occupational health and safety)

Appendix 2: Report on equality and non-discrimination (2. State of gender equality and pay gaps, table)

Information incomplete: The company does not report on ill-health for workers who are not employees.

Information incomplete: The company does not report on ill-health for workers who are not employees.

Information incomplete: We do not report new employee hires and turnover per age group or region.

GRI 205: Anti-Corruption 2016

3-3 Management of material topics

Appendix 2: Report on equality and non-discrimination (3.5 Results of the work and expectations for the work going forward)

Information incomplete: We do not report on other indicators of diversity, in accordance with Norwegian legislation. We also do not provide a breakdown on age for Board members and employee categories.

N/A: There have been no incidents of discrimination in the reporting period.

205-2 Communication and training about anti-corruption policies and procedures

205-3 Confirmed incidents of corruption and actions taken

Our environmental approach (Impact assessment) + Our environmental approach (Policy commitment) + Our environmental approach (Actions) + Our environmental approach (Perfomace) + Stakeholder dialogue and materiality assessment

Our governance approach (table: compliance and anti-corruption)

Our governance approach (table: compliance and anti-corruption)

Information incomplete: We do not provide a breakdown on anti-corruption information and training per region or employee category. We do not provide the number and percentage of Board members or business partners that have receieved information and training in anti-corruption.

N/A: There have been no incidents of corruption in the reporting period.

Appendix 4: Emissions factors 2023

Field & factor 2023

Scope 1 & 2

Field name Unit Sources

Diesel (NO) liters

Calculated based on DEFRA 2023 and Norwegian Environmental Agency 2023

Electricity Norway kWh 1) IEA (2023), Emission Factors

2) AIB (2023), European Residual Mixes 2022

3) IEA (2023), Energy Statistics Data Browser

Electricity Poland kWh 1) IEA (2023), Emission Factors

2) AIB (2023), European Residual Mixes 2022

3) IEA (2023), Energy Statistics Data Browser

Electricity Turkey kWh 1) IEA (2023), Emission Factors

2) No residual mix EF available, location-based EF applied in market-based calculation

3) IEA (2023), World Energy Balances (database)

Field & factor 2023

Scope 3

Field name Unit Sources

Air travel, continental tCO2e

Car, petrol (avg. biomix WTW) km DEFRA 2023

Car, Hybrid Electric Vehicle (HEV) (WTW) km DEFRA 2023

Car, diesel (avg.) (WTW) km DEFRA 2023

Electric car Nordic (WTW) km Based on IEA 2023 and avg energy consumption per km.

Air travel, domestic, incl. RF (WTW) pkm DEFRA 2023

Air travel, continental, incl. RF (WTW) pkm DEFRA 2023

Air travel, intercontinental, incl. RF (WTW) pkm DEFRA 2023

Truck avg. tCO2e

Sea ship avg. (WTW) tCO2e

Purchased goods tCO2e

Diesel (WTT) liters DEFRA 2023

Electricity Norway (upstream) kWh IEA (2023), Emission Factors

Electricity EU 27 (upstream) kWh IEA (2022), Emission Factors and DEFRA 2022

Electricity Poland (upstream) kWh IEA (2023), Emission Factors

Electricity Turkey (upstream) kWh IEA (2023), Emission Factors

Software NOK EPA 2023

Metal plumbing drains, faucets, valves NOK EPA 2023

Motor vehicle, parts and supplies NOK US EPA (2020); Supply Chain Greenhouse Gas Emission Factors for US Inudstries and Commodities

Technical consulting services NOK US EPA (2020); Supply Chain Greenhouse Gas Emission Factors for US Industries and Commodities

Real estate, other NOK EPA 2023

Building, repair and maintenance NOK EPA, 2020

Light fixtures NOK EPA 2023

Steel products, secondary NOK EPA 2023

Batteries NOK EPA 2023