Side 22
At A Glance Our business Perfomance Highlights ESG Corporate governance Financial statements ESG Statements TCM Group Annual report 2023 22 ESG review Environmental performance, Ambition and progress Emission reduction TCM Group has defined year 2021 as our baseline year for measuring our progress in terms of reduction of emission. In 2023 TCM Group committed to emission reduction following the guidelines from the Science based Iniatives (SBTi) target of 1.5 degree. Direct green- house gas emissions (scope 1) and emissions related to purchased energy (scope 2) should be reduced by 42 per cent in absolute terms by 2030. Our target exceeds our commitment to SBTi as we want to a achieve zero emision scope 1 and 2 by 2028. For scope 3 it is our aim to establish a baseline during 2024 and set reduction target in alignment with SBTi guidelines during 2024. Ton CO 2 e scope 1+2 2020 2021 2022 2023 committed SBTI 42% reduction by 2030 Achieved 2028 Expected 2030 SBTi target Commited to SBTI In 2023 TCM Group committed to SBTi and had its reduction target for scope 1 + 2 approved. Only renewable electricity In 2023 TCM Group was only using renewable electricity at our production site, and will continue to going forward. 2023 100% 2022 82% 2021 82% UN Sustainable development goals (SDG) Responsible forestry TCM Group ambition is only to source 100% certified responsible forestry. In 2023 sourced certified responsible timber. 79 % *the emission and baseline has been adjusted in 2023 to include Aubo Social performance, ambition and progress Gender equality TCM Group has a target of representation of the underrepresented gender on the Board of Directors of at least 40% before 2026. As of 31 December 2023 this target is achieved. Diversity Our aim to secure a sensible balance in terms of gender in all level of our organization. Where the underrepresented gender makes up for at least 40% 43% 57% Board of directors 44% 56% Management 36% 64% employees Towards zero accidents Our safety vision aims at having zero accidents. Number of accidents: Women Men 20 22 awbisthenocuet zero accidents 13 12 2025 target 7 2021 8 2022 2023 with absence SGD, 5 Gender equality (target 5.5), 8. Decent work and economic growth (target 8.5 and 8.8), 12. Responsible consumption and production, 13. Climate action, 15. Life on Land.
Side 23
At A Glance Our business Perfomance Highlights ESG Corporate governance Financial statements ESG Statements TCM Group Annual report 2023 23 ESG strategy & Approach Our ESG strategy sets the direction to embed sustainability ever deeper in the way we do business. A strategy that is guided by the UN Sustainable Development Goals and builds on our core values and brands - and integrating sustainability throughout our value chain from raw materials to after-sales and service. Our ESG strategy sets out transformative targets to drive decisions and actions within four areas of priority: • Sustainable work • We take responsibility • New ways ahead • Together we improve These are the areas where we believe we have the greatest impact on sustainable development through our business activities. Our systematic approach to sustainability makes us capable of strengthening our relationships with all key stakeholders and supporting business growth while continuously mitigating negative impacts by continuous learning and improvement. TCM Group has been a signatory to the UN Global Compact for more than a decade and commit to the Ten Principles of the UN Global Compact on human rights, labor, environment, and anti-corruption. sustainable work UN Global Compact principle 1, 2, 3, 4, 5, 6, 10 TCM Group’s continued success relies on employing the most qualified people, and we are committed to ensuring a safe and healthy working environment, characterized by mutual trust and respect. We work actively to create sustainable work characterized by the following principles • A safe and secure work environment that also enhances personal development. • Flexibility to support a clear balance between work/private life, between individuals, teams, and organization. • Diversity and social commitment. Human and labor rights Our signatory to the UN Global Compact more than a decade ago testify to our long track record of working with human and labor rights. The primary risk we face in connection to non- compliance of human and labor rights are discrimination of employees and cases where specific conditions at our suppliers do not comply with these principles. Our Employee Handbook and Code of Conduct guide our employees and suppliers in terms of human and labor rights. Our focus is to have the right mechanisms, systems, and programs in place to ensure no violations and promote responsibility toward others. We meet Danish and international standards regarding human rights as well as laws regarding equality and offer fair and equal conditions in employment and working conditions, regardless of gender, ethnic origin, religion, and other personal circumstance. Our whistleblower hotline and internal controls make up key instruments for controlling and reporting potential violations by employees and third parties. Furthermore, we conduct arbitrary supplier audits to monitor compliance with human and labor rights standards. Read more on our whistleblower hotline and supplier management in specific sections (page 27 and page 31). Safe working environments In TCM Group, we continually strive to provide the very best working environment. At our production sites, safety is our number one priority, and a lot of focus is on building and maintaining a safety culture to ensure that all our employees are safe while working. This means minimizing risks and enabling the best circumstances to provide a healthy and safe workplace for all our employees. Work safety has a great impact on employees and their families, as well as communities and the business. Sickdays and absence #sickdays caused by work accidents 2023 57 2022 125 2021 58 3.21 % Absence ratio related to sickness in 2023 In 2023, we have included Aubo Production in our work to secure safe working conditions and with focus on increased knowledge sharing across locations and a reinforced focus on behavior and safety culture based on zero accidents. We monitor the occupational health and safety of our employees by measuring data on accidents, near-miss work accidents, as well as sickness absences. In 2023, we had a total of 22 accidents. 12 accidents have resulted in a total of 57 days of absence after the accident. The other ten accidents did not result in absence, but in some cases required the employee to perform a less strenuous job for a period after the accident. Even though the number of work-related accidents has increased in 2023, the number of abence related to accidents is significantly lower than the previous year. The accidents were primarily related to behavior, where employees in their eager to do a good job disregarded safety instructions. We use near-missed work accident report to ensure a contiues awareness of incidents that could lead to an accident, to share learnings and as a mean to take preventive actions. The number of near-miss reports is considerably higher in 2023 and we use this an an indication to the fact that our efforts has an positive effect. Nevertheless, we are determined Reported near miss work accidents #of reported near miss work accidents in TCM Group 2023 1232 2022 937 2021 896 0.09 % Absence ratio related to work accidents in 2023
