Contents 5 Summary 8 Introduction to the Report 8 About the Report 10 Message from Kronospan Serbia 12 About Kronospan Serbia 14 Kronospan Serbia 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 24 Meaning Of Carbon Negative Production in the Sector 25 Meaning of the Circular Economy in the Forest Products Industry 26 Regional Outlook 28 Risk Management 30 Internal Audit Progress 31 Business Ethics 33 Kronospan Building Blocks 34 Value Chain 37 Sustainability Management 37 Our Understanding of Sustainability and Stakeholder Expectation 37 Our Sustainability Strategy 38 Materiality and Stakeholder Analysis 39 Material Issues for Kronospan Serbia and Its Stakeholders 40 Our Contributions to Sustainable Development and Our Targets 42 Our Short, Medium, and Long-Term Targets 46 Communication with Stakeholders 48 Responsible Growth Strategy 2