Contents 5 Summary 8 Introduction to the Report 8 About the Report 10 Message from Kronospan HPL 12 About Kronospan HPL 14 Kronospan HPL 16 Our Values 18 Our Product Portfolio 22 We Empower with Positive Governance 22 Our Organisational Structure 23 Structure of Kronospan HPL 24 Highlights in 2022-2023 26 Sectoral and Global Trends 26 Sectoral Outlook 31 Regional Outlook 31 Following Regulations of European Union 32 Risk Management 34 Internal Audit Progress 36 Business Ethics 37 Kronospan Building Blocks 37 Value Chain 40 Sustainability Management 41 Our Understanding of Sustainability and Stakeholder Expectation 41 Our Sustainability Strategy 42 Materiality and Stakeholder Analysis 43 Material Issues for Kronospan HPL and Its Stakeholders 44 Sustainable Development Goals (SDGs) 46 Our Short, Medium, and Long-Term Targets 50 Communication with Stakeholders 51 Responsible Growth Strategy 54 We Produce by Adding Positive Value to the Environment 55 Environmental Management Approach 57 Environmentally Responsible Production Processes 58 Sustainable Production Cycle 60 Sustainable Forest Management 2