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