GRI index

General disclosures

GRI disclosure Description Page Comment

Organisational profile 102-1 Name of the organisation 50 Setra Group AB, corp. ID no. 556034-8483

102-2 Activities, brands, products and services 4, 8–9, 14–17, 34–35 102-3 Location of headquarters 4, 50 102-4 Location of operations 4, 14–17, 50

102-5 Ownership and legal form 4

102-6 Markets served 4, 14–17 102-7 Scale of the organisation 4, 8–9, 41, 44–45

102-8 Information on employees and other workers, broken down by employment type, employment contract, region and gender 4, 9, 40–41 Setra’s business operations are mainly conducted by the company’s own employees, with the majority of these being full-time, permanent employees. The average number of employees at Setra in 2019 was 768, of which 55 were based outside Sweden (UK 43, Poland 2, Germany 1, Spain 2, Austria 1, Tunisia 1, China 3 and Japan 2). 102-9 Supply chain 8–9, 18–23, 36–37, 47 The organisation’s suppliers can be divided into three main groups: suppliers of timber raw material, suppliers of logistics services and other suppliers. Procurement procedures for timber raw material and transport services include sustainability requirements. In 2017, work began on imposing sustainability requirements on other suppliers. 102-10 Significant changes to the organisation and its supply chain See comment The unit in Skutskär was sold in 2019 and the Rolfs unit in Kalix was closed. A new planing mill has started to be built in Hasselfors and construction of a component and crosslam plant is in progress in Långshyttan. Setra’s CEO Hannele Arvonen left and Anders Nordmark, EVP Supply Chain, was acting CEO from July. Katarina Levin was appointed Setra’s new CEO in June. 102-11 Precautionary Principle or approach 10, 20–29, 43, 46–47 The Precautionary Principle is applied in the event of changes being made to business operations, for example the installation of new machines or choice of chemicals. 102-12 Externally developed economic, environmental and social charters, principles or other initiatives to which the organisation subscribes or which it endorses 20–23, 26, 30–33, 46–47 ISO 14001; PEFC™, Programme for the Endorsement of Forest Certification; FSC®, Forest Stewardship Council; Climate report in line with the GHG Protocol. 102-13 Main memberships of industry or other associations and national or international advocacy organisations See comment Setra is a member of the Swedish Forest Industries Federation. Strategy

102-14 Statement from senior decision-maker 6–7

Ethics and integrity 102-16 Description of the organisation’s values, principles, standards and norms of behaviour 2, 6–11, 18–23, 40–43, 46–47 Setra’s vision is to do business that we, as well as others – our clients, society and nature – can profit from. This we call “Grönsamhet”. And we want to create Grönsamhet. Setra has value-based leadership and our values are commitment, innovation and responsibility. The focus areas of the sustainability policy are business ethics, employees, health and safety, environment and climate. Governance 102-18 Governance structure See comment The corporate governance report is available on pages 89–91 of Setra’s Annual Report. Stakeholder engagement 102-40 List of stakeholder groups engaged by the organisation 17, 46–47

102-41 Percentage of total employees covered by collective bargaining agreements See comment 100% of Setra’s employees in Sweden are covered by collective bargaining agreements. 102-42 Identifying and selecting stakeholders 46–47 102-43 Approach to stakeholder engagement 41, 46–47 Setra conducted an employee survey during the year.

102-44 Key topics and concerns raised through stakeholder engagement Reporting practice

46–47

102-45 Entities included in the consolidated financial statements See comment Facts and key financial figures in the report refer to all of the group’s entities apart from Skutskär and Rolfs (parent company and subsidiaries). The business operations of Setra Wood Products are not included in the sections on production, annual climate report and to a limited extent in the section on employees. 102-46 Process for defining the report content and the topic boundaries 10–13

102-47 List of the material topics identified in the process for defining report content 102-48 Effect of any restatements of information given in previous reports 10–11, 46–47

See comment The 2018 sustainability report gave the wrong information for emissions of CO 2 calculated per amount of m 3 sawn timber. The correct figure is 26 and not 25 kg/m 3 sawn timber.

102-49 Significant changes from previous reporting periods in the list of material topics and topic boundaries See comment No significant changes in scope or aspect boundaries. 102-50 Reporting period See comment The report covers 2019. 102-51 Date of most recent report See comment March 2019. 102-52 Reporting cycle See comment Calendar year, annual.

102-53 Contact point for questions regarding the report 50 102-54 Claims of reporting in accordance with the GRI Standards See comment The report has been prepared in accordance with Global Reporting Initiatives Standards for sustainability reporting at the Core level. 102-55 GRI index 48–49

Subject-specific disclosures

GRI disclosure Description Page Comment

GRI 200 / Economic impact

201 Economic performance 103-1 103-2 103-3 Governance See comment See annual report page 53. 201-1 Direct economic value generated and distributed 7–9, 45

205 Anti-corruption 103-1 103-2 103-3 Governance 43, 46–47 Anti-corruption measures promote sound and informed business decisions and form a key part of being a responsible and ethical company. In 2015 the Board adopted a sustainability policy for Setra, in which business ethics are an important element. There are special guidelines for compliance with competition legislation, as well as for gifts, benefits and entertainment and meals provided by other parties.

205-2 Communication and training about anti-corruption policies and procedures 43, 46–47 In 2019 e-learning on business ethics was launched internally.

205-3 Confirmed incidents of corruption and actions taken See comment No incidents reported.

GRI 300 / Environmental impact 103-1 103-2 103-3 Governance Environment 20–23, 26–29, 30–33 Aspects governed are: resource efficiency/materials consumption, responsible forest management, energy consumption, greenhouse gas emissions and compliance. Environmental work is managed on the basis of ISO 14001. Responsibility is delegated from the CEO to site managers. The Sustainability Manager is responsible for the management system, etc., and is the designated expert. Legal compliance is among the issues monitored in internal and external environmental audits.

301 Material 301-1 Amount of material used in production, weight or volume 20, 28, 20–23 Used material, exchange. Responsible forest management

302 Energy 302-1 Energy consumption within the organisation 24–29 Setra has bought in ecolabelled electricity since 1 January 2018. 302-4 Reduction of energy consumption 24–29

305 Emissions 305-1 Direct (Scope 1) GHG emissions 30–33 The whole annual climate report is published at setragroup.com. 305-2 Energy indirect (Scope 2) GHG emissions 30–33 The whole annual climate report is published at setragroup.com. 305-3 Other indirect (Scope 3) GHG emissions 30–33 The whole annual climate report is published at setragroup.com.

305-4 Greenhouse gas intensity 30–33 The whole annual climate report is published at setragroup.com.

307 Environmental compliance 307-1 Breaches of environmental legislation See comment In 2019 Setra Malå received a sanction of SEK 5,000 for failing to check leaks of coolant.

GRI 400 / Social impact 103-1 103-2 103-3 Governance social impact 11, 40–43 46–47 The following aspects are governed: health and safety, training and skills development.

403 Occupational health and safety 403-1 Workers representation in formal joint management-worker health and safety committees

403-2 Types of injury and rates of injury, and number of days of absence due to illness See comment Employees in Sweden are represented by a safety officer and occupational health and safety committees. Systematic health and safety measures at Setra are carried out locally by our units. The site management, safety officers and employees take part in such measures. A group-wide Health and Safety Council headed by Setra’s Sustainability Manager supports overall work with communications, training and exchanging of experiences. The council includes safety officers, managers and HR. The Health and Safety Council was dormant in 2018–2019. 43 In 2019, there were 26 accidents that resulted in sick leave being taken and 208 accidents that did not lead to sick leave being taken. The number of days of absence resulting from work-related injuries amounted to approximately 254 days. Typical injuries include crush injuries, wounds and sprains. We record, manage and follow up work-related accidents and near-misses using SIA, the sawmill industry’s common system for reporting industrial injuries.

404 Training and education 404-3 Annual performance and career development reviews 40

We want to play a part in positive development also outside Setra and our own value chain. Therefore we are a proud sponsor of SOS Children’s Villages.

Transparent and credible reporting To ensure transparent and relevant reporting of work on sustainability, Setra applies GRI Standards, Core level. We have also adapted the content of our annual report to the requirements for Corporate reporting governing sustainability and diversity policies. This publication is the Setra Group’s Sustainability Report for the financial year 2019. The Sustainability Report covers the whole Setra Group unless stated otherwise. The auditors’ statement on the statutory Sustainability Report is on page 92 of Setra’s Annual Report and Sustainability Report, which can be read at setragroup. com. The Sustainability Report has not been the subject of additional external audits. Setra also publishes an annual climate report, which documents our emissions and the carbon footprint of our products. The annual climate report is drawn up based on the guidelines of the GHG Protocol and is published in full at setragroup.com.