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Contents 5 Summary 8 Introduction to the Report 8 About the Report 10 Message from Kronospan Croatia 12 About the Company 14 Kronospan Croatia at a Glance 16 Our Values 17 Our Product Portfolio 20 We Empower with Positive Governance 20 Our Organisational Structure 22 Highlights in 2022–2023 24 Sectoral and Global Trends 24 Sectoral Outlook 27 Regional Outlook 28 Risk Management 30 Internal Audit 32 Business Ethics 33 Kronospan Croatia Building Blocks 33 Value Chain 36 Sustainability Management 37 Our Understanding of Sustainability and Stakeholder Expectations 37 Our Sustainability Strategy 38 Materiality and Stakeholder Analysis 39 Material Issues for Kronospan Croatia and Its Stakeholders 40 Our Contributions to Sustainable Development and Our Targets 42 Our Targets 44 Communication with Stakeholders 45 Responsible Growth Strategy 2

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48 We Aim for Carbon Negative Production 48 Environmentally Responsible Production Processes 49 Sustainable Production Cycle 50 Sustainable Forest Management 50 Raw Material Management 51 Sustainable Packaging Management 52 Product Quality 54 R&D Activities 56 Emission Management 62 We Produce by Adding Positive Value to the Environment 62 Environmental Management Approach 64 Energy Management 66 Waste Management 68 Water Management 72 We Make Progress by Contributing to Our Stakeholders 72 We Care About Our Employees 74 Human Rights 76 Employee Training and Development 76 Training Journey of Our Employees 78 Employee Development and 78 Career Journey 80 Equal Opportunity and Diversity 82 Contribution to the Community 82 Social Responsibility Projects 84 Customer Management 86 Supply Chain 88 Occupational Health and Safety 91 Appendix 92 Environmental Performance Indicators 94 Social Performance Indicators 98 LCA Reports 102 GRI Index 3

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