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Contents 5 Summary 6 Introduction to the Report 8 About the Report 10 Message from the CEO 12 About the Company 14 Kronospan in Ukraine at a Glance 16 Our Values 17 Our Product Portfolio 18 We Empower with Positive Governance 20 Our Organisational Structure 24 Highlights in 2022-2023 26 Sectoral and Global Trends 26 Sectoral Outlook 28 Regional Outlook 30 Risk Management 32 Internal Audit Progress 32 Business Ethics 34 Kronospan in Ukraine Building Blocks 34 Value Chain 36 Value Creation Model 39 Sustainability Management 40 Our Sustainability Understanding and Stakeholder Expectation 40 Our Sustainability Strategy 42 Materiality and Stakeholder Analysis 47 Sustainable Development Goals (SDGs) 48 Our Short, Medium, and Long-Term Targets 52 Stakeholders Priorities 52 Communication with Stakeholders 2 54 We Aim for Carbon Negative Production 56 Environmentally Responsible Production Process 58 Sustainable Production Cycle 60 Sustainable Forest Management 66 Product Quality 68 R&D Activities 70 Emmission Management 76 We Continue to Produce by Adding Positive Value to the Environment 81 Environmental Management Approach 82 Energy Management 86 Waste Management 89 Residual Collection System 92 Water Management 96 We Move Forward by Contributing to Our Stakeholders 98 We Care About Our Employees 100 Human Rights 104 Employee Training and Development 104 Training Journey of Our Employees 108 Employee Development and Career Journey 110 Equal Opportunity and Diversity 114 Contribution to the Community 116 Social Responsibility Projects 120 Customer Management 124 Supply Chain 128 Occupational Health and Safety 132 Appendix 134 Kronospan in Ukraine - Consolidated Environmental Performance Indicators 136 Kronospan UA LLC - Environmental Performance Indicators 138 Kronospan Rivne LLC - Environmental Performance Indicators 140 Kronospan in Ukraine - Consolidated Social Performance Indicators 144 Kronospan UA LLC - Social Performance Indicators 148 Kronospan Rivne LLC - Social Performance Indicators 152 GRI Content Index 3
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To access the content of this report, you can utilise the navigation pane located at the top of each page. You can easily navigate through the pages by clicking on the arrows on each side. These will allow you to move forward and backward smoothly. 4 Summary At Kronospan in Ukraine, we are fully committed to minimising our environmental impact by prioritising both production and energy efficiency and the use of waste timber as a resource. To this end and in line with our global motto “In Touch with Nature” , we actively contribute to the protection of nature. The way we lead sustainable production in collaboration with key stakeholders displays our dedication to responsible practices. Pursuing customer satisfaction through service enhancement demonstrates our commitment to excellence. Our goal is to pursue manufacturing while respecting and maintaining the environment and, for this purpose, we meticulously examine our raw material, energy, and water consumption in all our processes. The efforts we make to reduce our operational carbon footprint and move towards a greener future demonstrate our environmental commitment. This second sustainability report of ours outlines our environmental, social, and governance initiatives as well as highlights our comprehensive approach to responsible business practices, which are of benefit to all stakeholders. Kronospan in Ukraine's commitment to a greener future and dedication to protecting the environment reflect its position as a leader in the industry. We believe our actions will inspire others to follow us in creating a more sustainable future together. Svydovets, Carpathians 5
