Sustainability Report 2023

Sustainability Report

Aura Light is ISO-certified in quality, environmental management, and occupational health and safety (9001, 14001, and 45001) and a member of SBTi (Science Based Targets initiative).

We have conducted a materiality analysis and set clear goals to reduce our carbon footprint across the entire value chain by 2030.

90% of our products’ carbon footprint occurs during the usage phase, which is why it’s important for us to develop sustainable lighting solutions and guide the customer towards solutions that are sustainable over time.

Sustainability is the way forward

In a world facing environmental challenges, it is essential for companies to take responsibility and contribute to sustainable development. As a lighting provider with in-house manufacturing in Sweden, we can make a significant impact, both in terms of the company’s carbon footprint and by guiding our customers toward sustainable choices. This involves energy-efficient lighting and sustainable material selection, as well as creating good lighting for health and well-being.

In 2023, we established clear goals for our sustainability efforts, encompassing economic, social, and environmental sustainability. It’s crucial that our partners and suppliers adhere to our code of conduct, that our employees have a safe working environment, and that our products contribute to reduced energy consumption. We have integrated some of the UN’s Sustainable Development Goals in Agenda 2030 into our long-term work, focusing on green energy, innovation, and sustainable consumption and production. For example, we have a goal to increase the energy efficiency of our products from an average of 120 lumens per watt to 140 until 2030, as well as to increase the proportion of products with smart controls to ensure that they are not unnecessarily lit. Our most significant opportunity to make a difference lies in ensuring that the market offers as energy-efficient and smart lighting solutions as possible, as 90% of our climate impact occurs during the products’ use phase. With our own production facility in Vimmerby, Sweden, and close relationships with our customers, we have also contributed to renovation projects over the past year where customers have retained parts of their lighting solution but upgraded to the latest technology. This enables reuse while making lighting more energy-efficient. We are at the beginning of our sustainability journey, and we look forward to sharing our work and progress continuously.

Henrik Håkansson CEO Aura Light

Lower carbon footprint with sustainable material

By choosing recyclable materials with low carbon dioxide emissions, we actively contribute to reducing global emissions.

For us, it’s important to choose materials that last over time and leave as small climate footprint as possible. Thanks to energy-efficient technology, we contribute to our customers reducing their energy consumption, sometimes by as much as 80 percent. We also choose our material with care when creating new luminaires. Collaborating with multiple suppliers challenges us to test new and more sustainable materials. Today, we have a partnership with Hydro, which manufactures some of our aluminum profiles using either low carbon dioxide or recycled aluminum.

Hydro REDUXA

Hydro Reduxa is carbon dioxide-efficient aluminum when renewable energy sources such as water, wind and solar are used in the production. Thanks to the use of renewable energy sources, carbon dioxide emissions per kg of aluminum are

reduced to less than a quarter of the global average. Hydro thus produces aluminum with one of the lowest emission levels in the world. Hydro Reduxa has a maximum CO2 of 4.0 kg per kilo of aluminum. Aura Light’s luminaire Helags is manufactured with Hydro Reduxa.

Hydro CIRCAL

Hydro Circal is recycled aluminum made with at least 75% recycled aluminum scrap after consumption. The 75% recycled materials are exclusively from aluminum which has reached its service life and which is used and returned to the loop via recycling. The aluminum can, for example, come from demolished construction projects, food and beverage containers and scrapped cars. Using recycled aluminum in the production process also means lower heat, which in turn contributes to the need to generate less energy. Hydro uses only the finest and least polluted scrap materials to ensure that no additional energy is used to recycle it. The luminaires Sevede, Exzite and Kvill are manufactured by Hydro Circal.

Step by step towards a sustainable production

With knowledge of lighting, the potential to manufacture our own products and a long-term approach, we want to take an active role in creating sustainable lighting alternatives, from raw material to finished product.

With a factory and production line in Vimmerby, Sweden, we are close to our customers. Here, we work on various aspects including design, product development, testing, and upgrading of lighting products. Our entire production is also located here, where we manufacture, assemble, package, and dispatch our products. This means we have the flexibility to develop a production line that is both sustainable and clean. It all started with the decision to go green and, among other things, choose green electricity. With an offshoot of the UN’s global sustainability goals and target nine: Sustainable industry, innovations and infrastructure, we go step by step towards a more sustainable lighting production. All to meet the UN’s global sustainability goals.

Small efforts that make difference to the environment

At Aura Light, we have reduced waste from cardboard with over 30 percent by converting corrugated cardboard into filling material that can be reused for deliveries. The cardboard become shock absorbing mats that replace bubble wrap, paper and other packing material. An excellent way to reduce the use of plastic and reduce our costs for purchasing packaging materials. Simply good, cheap and environmentally friendly!

Recycling for circularity

Together with Stena Recycling we can give old material new life and all our waste is handled in a safe way.

Minimal spillage, reduced transports and a safe environment

We have a large machinery park that has served us well for many years. As the old ones are replaced, we take the opportunity to choose energy-smart machines that provide minimal amount of waste and enable us to produce lighting in durable materials and in a greener way. Our goal is for all machines to be examined from a sustainability perspective before purchasing for the best possible environmental choice.

Much of our sustainability work results in one and the same positive profit - reduced transport. Long and heavy transport is a major environmental obstacle today and we want to pull our straw to the stack to reduce unnecessary transports. By continous work with smart packaging, logistics and less waste, we aim to transport greener.

With all the production in one place, we can easily monitor it step by step and ensure safe and minimal handling of chemicals, smarter and more energy efficient production and that all our employees can work in a safe, healthy and pleasant environment.

One step in the right direction

Aura Light has joined the Science-Based Targets initiative and clear goals have been set to reduce our company's direct emissions by 2030.

This is SBTi

The Science Based Targets initiative (SBTi) is a framework that assists companies and organizations in establishing science-based climate targets aligned with the objectives of the Paris Agreement, which aims to limit global temperature rise to 1.5 degrees. As a member, it is our responsibility to actively reduce greenhouse gas emissions, we have therefore set specific targets to reduce our emissions by 50 percent in both Scope 1 and Scope 2 by 2030.

The SBTi is a collaborative effort between the Carbon Disclosure Project (CDP), The United Nations Global Compact (UNGC), the World Resources Institute (WRI) and the World Wide Fund For Nature (WWF).

Scope 1 covers emissions that directly originate from our operational activities, such as those from own factories.

Scope 2 encompasses indirect emissions resulting from the consumption of purchased electricity, steam, heating, and cooling by the reporting company.

Certifications for sustainability

Aura Light is ISO-certified in quality management, environmental management, and occupational health and safety management system. Sustainability is fundamental to the company’s long-term success and an integral part of our management systems and good business practice. Therefore, sustainability is included in the job descriptions within our organization. We also work with social responsibility based on ISO 26000.

ISO 9001 Quality Management.

ISO 14001 Environmental management.

ISO 45001 Occupational health and safety management systems.

CO ²-emissions 2022

CO ²-emissions 2023

Materiality analysis 2023

We have identified four areas where we have the greatest opportunity to influence within the sustainability field. These areas involve our impact in our product development, our work in logistics and procurement, our employees’ health and well-being, and finally, influencing the customer to choose sustainably.

Product Development Supply Chain Operation Customer Choice

Area Production facility and development as well as in collaboration with strategic suppliers.

Questions

∙ Energy efficiency

∙ Conscious choice of materials

∙ Climate footprint

∙ Product lifetime

Value adding

∙ Reduced impact from products in use

∙ Contribute to circular flows

∙ Sustainable material choices to contribute less virgin material that needs to be extracted from the ground

∙ Long service life of the installation

Products are purchased from third parties as well as components for own production.

∙ Efficient transport

∙ Reduced energy consumption and reduced CO2 emissions

∙ Code of conduct and quality requirements for our suppliers

∙ Reduce emissions and waste management of products and components

∙ Production/deliveries in our nearby area

∙ Reduced CO2 emissions good for the climate

∙ More cost effective and climate-friendly transportation

∙ Ensured social sustainability

∙ Reduced waste and less emissions lead to better economic and ecological sustainability

About 150 employees in 4 countries, one production unit.

∙ Systematic work environment work

∙ Health and well-being

∙ Competence development

∙ Diversity and inclusion

∙ Energy efficiency and travel

Sales of sustainable lighting to the the professional market.

∙ Communicate and retrain sustainable lighting solutions

∙ Guide the customer to energy efficient choices with long life

∙ Economy and sustainability go hand in hand

∙ Safety in the work environment

∙ Employee engagement

∙ Increased knowledge

∙ Inclusion and diversity boost innovation and decision-makin

∙ CO2 savings

∙ Loyal customers

∙ Customers who install sustainable lighting solutions reduce their carbon footprint over the life of the product

∙ Educated customers and coworkers

∙ The sustainable solution is also economically beneficial during the period of use

Our goals for sustainability

Product Development

To increase our average product portfolio from 120 lm/W to 140 lm/W by the year 2030.

Supply Chain

Ensure that all our suppliers have signed the Code of Conduct by 2024.

Operations

Improve well-being within the organization by establishing a health year in 2024.

Halve energy consumption in our premises by 2030. Halve emissions from our vehicles by 2030.

Customer Choices

Increase sales of smart lighting controls by 10% annually until 2030.

Host two sustainability seminars per year.

Product Development

With our own production facility in Sweden, we have the opportunity to develop our product range as sustainably as possible. Sustainability is integrated as a common thread throughout the entire process from concept to finished product. We strive to develop luminaires that are as energyefficient as possible, using as little virgin material as possible. The product should also be as lightweight as possible. The design and packaging should enable environmentally friendly shipping. By ensuring a long lifespan for our products, we reduce the number of products entering the market, and through careful material selection, we aim to develop materials that can be reused, with only the technology in the luminaire itself being upgradeable.

Supply Chain

It’s important for us that our suppliers adhere to our code of conduct, something we actively work on together with our partners. To learn more about our code of conduct we refer to our brochure Code of Conduct. Through good delivery reliability, we can streamline shipments and reduce waste. Long-term, the goal is to have most of our partners in Europe

and in our immediate vicinity. We already collaborate with several local actors for materials and components.

Operations

Our employees are our company! We will actively work on leadership development in the coming year and initiate healthpromoting activities together. We have a systematic work environment management system in place at our production facility in Vimmerby according to ISO 45001:2018. As part of our SBTi work, we have goals to halve our energy consumption in our premises and halve emissions from our company car fleet by 2030.

Customer Choices

90% of our climate impact occurs during the products’ usage phase. By offering the market as energy-efficient products as possible, we contribute to a reduced carbon footprint. Education and knowledge make it easier for the customer to choose a sustainable solution. We continuously organize seminars and training sessions to disseminate information about sustainable lighting.

The United Nations’ Sustainable Development Goals

The global goals for sustainable development have the power to create a better world, and we at Aura Light have embraced these to our business to be a part of creating a sustainable tomorrow. We have set goals to increase the energy efficiency of our products and to increase the products with smart lighting control to ensure that they do not shine unnecessarily. These three are our selected goals.

Energy smart lighting

7.3 By 2030, double the global rate of improvement in energy efficiency.

Innovation as a core value

9.4 By 2030, upgrade infrastructure and adapt industries to make them sustainable, with more efficient resource utilization and increased use of clean and environmentally friendly technologies and industrial processes.

Sustainable consumption

12.4 By 2030, achieve environmentally friendly management of chemicals and all types of waste throughout their life cycle.

12.5 By 2030, significantly reduce the amount of waste through measures to prevent, reduce, reuse and recycle waste.

12.8 By 2030, ensure that people everywhere have the information and awareness needed for sustainable development.

“By offering the market as energy-efficient products as possible, we can contribute to a reduced carbon footprint.”

Transport purchases

Regarding shipments, we collaborate with the transportation company Fraktus. This collaboration means that we minimize emissions through carefully selected modes of transportation. The goal is efficient deliveries, competitive prices, and minimal environmental impact. Air and express deliveries are only used on rare occasions. In 2023, we transported goods with emissions equivalent to 150,724 kg of CO2. The table below shows our total CO2 emissions from freight.

Connected to systems for collection of electrical products

We are connected to collection systems in the markets where we are active, by that we ensure that old electrical products are managed and recycled in an environmentally and legally compliant manner according to applicable laws. Examples of these organisations that we are members of is Elkretsen and NPA in Sweden, RENAS in Norway and Lars and Interzero in Germany.

“The supplier must follow the local laws and regulations in the countries where the supplier is operating.”

Aura Light Supplier Policy

We shall always comply with laws and regulations concerning emissions and social conditions in our operations. Our key suppliers must share our view on this, and therefore Aura Light requires suppliers to meet the following minimum requirements:

Legality of Operations and anti-corruption

The supplier must follow the local laws and regulations in the countries where the supplier is operating. Aura Light does not accept any form of corruption. This includes, but is not limited to, bribes, blackmailing and unfair competition.

Basic Employee Rights

The supplier must comply with the below international conventions set by the UN and the ILO. This means minimum standards for the following 5 issues:

• Human Rights

Our suppliers shall comply with the UN Declaration on human rights.

• Child labor and forced labor

No child labor or forced labor at Aura Light´s suppliers or sub-suppliers is accepted. The use of such labor is a material breach to the supply agreement with Aura Light.

• Discrimination

The supplier shall not discriminate with regards to employees based on race, creed, sex, marital or maternal status, age, political affiliation, national origin, sexual orientation, or any other basis prohibited by law.

• Freedom of association

Freedom of labor unions and association rights as well as right of collective bargaining shall be respected. In countries

where the right of association is limited or under development, the supplier shall support that development and ensure that employees can meet the top management to discuss salary and working condition issues without any negative consequences.

• Employment contracts

The supplier shall follow local legislation. The employees shall have written employment agreement. Working hours and salaries shall be clearly recorded and salaries shall be duly paid.

Health and Safety issues

The suppliers must secure that the workplace is safe and that necessary precautions has been made to prevent accidents. Measures to prevent and minimize the impact of fires and other risks shall be taken. The employees shall receive education on the safety regulations and proper use of machines and safety equipment.

Environmental issues

The supplier shall comply with environmental standards applicable to the field of operations. This means following local laws and regulations as a minimum requirement. It also means that the supplier shall be aware of sustainable aspects and the impact that their activities have on them. The supplier should have an action plan for reducing this impact.

Supplier status and continuous improvements

Aura Light expects the supplier to be able to show us, or a third-party auditor, proof of the status of above demands. Aura Light also expects the supplier to work in a structured and documented way with improvement of the issues covered by this Policy. Aura Light also requires the supplier to communicate this policy to sub suppliers to create awareness about Aura Light requirements throughout the whole supply chain.

Employee well-being drives success

We strive to support a work environment that stands for entrepreneurship, autonomy, and efficiency, grounded in respectful and honest relationships. Our aim is to be a company where our people are empowered and motivated to make meaningful contributions, and we use the force of our differences as our strength to create a constant movement in our changing everyday life.

Our people are the heart of the company, and therefore, we place a strong emphasis on health. We work with focus on the relationship part of health and more specifically a common view on our leadership, co-workership and team. In our commitment to sustainability, we measure amongst other things the perceived well-being of our people through anonymous surveys on a regular basis.

The results of these surveys contribute to a key performance indicator - the Co-worker Engagement Index that we follow and analyze. Our relationships, both internal and external, are governed by our Code of Conduct, providing clear guidelines for ethical and respectful interactions. It's crucial for us to foster a company culture of equality, embracing inclusion and diversity at every level. Achieving a balanced workplace where everyone feels valued and included is a key priority for our success.

Additionally, we make promises to our customers centered around our core values of Quality, Engagement, Flexibility, and Speed, ensuring that we consistently deliver on our commitments.

“We have set clear goals for our sustainability efforts, encompassing economic, social, and environmental sustainability.”