Sustainability Report 2021-2022

SUSTAINABILITY REPORT

Company presentation

The Be-Ge Group

Bror Göthe Persson established the Be-Ge Group’s operations in 1934 by taking over a compa ny active in the import and sale of Ford cars in Oskarshamn.

From a handful of employees at the time the company was taken over, the Group now employs > 540 people. The Group operates in six countries, with business activities organised in three divisions:

• Be-Ge Seating Division, which develops, manufactures and markets driver and passenger seats for various types of vehicles and construction machinery, as well as work and office chairs.

• Be-Ge Component Division, which manufactures components for the engineering industry and production tools, carries out industrial sewing and assembly, as well as car and indu strial painting.

• Be-Ge Vehicle Division, which is a dealer for Scania trucks, as well as VW and Skoda pas senger cars and commercial vehicles within its market area.

In addition, the Group owns several commercial properties in central Oskarshamn. Sustainabili ty issues are handled by the respective companies and coordinated via Group management.

Values

Bror Göthe Persson started his business in 1934. The principles that Bror Göthe worked so successfully when the business was built up under his leadership form the basis of the corporate culture and the “Be-Ge spirit” that characterises the Group.

Customer value

By means of professional contact characterised by engagement, knowledge and a high level of avai lability, solutions are offered that are adapted to meet each customer’s needs. Deliveries are of high quality, with each employee assuming responsibility for his or her part of the delivery. Be-Ge’s business relationships are characterised by simplicity, hone sty and close collaboration with the customer.

Long-term view

With its long history and stable ownership structure, Be-Ge stands for reassurance, tradition and relia bility. The long-term view means that our employ ees feel a sense of pride in being part of the Be-Ge family. Be-Ge is characterised by a strong entre preneurial approach that results in growth within existing businesses, curiosity about innovations and an interest in developing new business areas.

Collaboration

Through openness and with consideration and res pect for the individual, we develop both our employ ees and our customer relationships. We always see the big picture, and our guiding principle is to always resolve any loose ends that arise, both internally within the Group and externally with other stakehol ders. “Collaboration brings success” is a motto that pervades the whole business.

Assuming responsibility

We make sure we assume responsibility for the sus tainable development of the environment, society and our employees. Be-Ge stands for quality at all le vels, where every single employee feels responsible for doing the right thing. The business is characteri sed by an awareness of risk and cost, which creates the conditions for continued development of the Group.

The Group and sustainability

The Group has been in business for more than 85 years, and the Group’s first sustainability report was produced in the financial year 2019-20. The report was based on the financial year 2019-20, and the intention is that this will serve as the base year for following up on the outcome for future years. The sustainability report for the financial year 2021–22 shows not only what work has been done during the year, but also how the Group’s sustainability work has developed based on the key indicators used. The sustainability report has been prepared on the basis of the requirements set out in the Swedish Annual Accounts Act.

The report describes the Group’s objectives within the different areas of sustainability: environment, social factors and personnel, human rights and corruption. The report also presents the risks and impacts of operations in relation to these areas. The sustainability report also describes how the Group’s sustainability aspects have been developed, as well as quantitative or qualitative information. To present a clear picture of the organisation’s impact under each sustainability area, key figures and pro cesses in the areas are presented.

Be-Ge Företagen AB’s and its subsidiaries’ most important objectives are to create added value for customers, partners, employees and owners. Responsibility for the environment, social respon sibility and personnel, human rights and business ethics that combat corruption are, therefore, an important part of achieving the goals without con flicting with the Group’s ambitions for sustainable development.

Operational risks associated with sustainability were mapped out prior to this sustainability report. More stringent environmental legislation, taxes, charges and other environmental requirements can cause significant costs for our industrial opera tions. There are also risks related to the environ ment and social responsibility from a commercial perspective. If we do not operate as a company that works actively with sustainable business processes, there is a major risk that the Be-Ge Group will not succeed in attracting and retaining skilled workers. There is also a risk of being out-competed by other players who work more on sustainability. Not being at the forefront also entails a risk of the Group not meeting requirements and legislation in the areas of the environment, health, safety and corruption.

Environment

Risks

Environmental legislation

The Group’s production units have the permits required for the operations. Energy audits in accor dance with EU directives are carried out at a num ber of production sites, which should lead to more efficient use of resources and reduced costs.

Energy costs

Increased energy costs in combination with increa sed taxes and charges can have a negative impact on the profitability of the companies. The Be-Ge Group aims to reduce energy consumption, and the energy audits make up part of the work for achieving this.

Climate risks

Changes in the climate can have a negative impact on operations. This can involve, for example, dama ge to plants and infrastructure. But access to raw materials and changed customer behaviour can also affect operations.

“Efficient resource management, responsible resource management and innovation promotion”

The material aspects of "efficient resource management, responsible resour ce management and innovation promotion" are particularly relevant, as all three aspects can be linked to both increased economic growth and a more sustainable planet, both today and in the future. The challenge for the Be-Ge Group as a profitable business may be to combine growth and sustainabi lity, but with the help of our material aspects we have found an accessible way that we believe leads to success with satisfied customers and a healthy society. It is, therefore, particularly important that we focus correctly, so that economic growth is maximised when implementing our sustainability work.

Efficient resource management

Natural resources, such as energy and water, raw materials and input materials, are used in the BeGe Group’s various business areas. Within Be-Ge Seating Division and Be-Ge Component Division, energy is consumed in the manufacturing and assembly processes, and transport to and from the units affects greenhouse gas emissions. Heating of the Group’s properties also affects greenhouse gas emissions. More efficient use of these resour ces has a positive impact on both the environment and costs. In addition to this, investments have been made in photovoltaic systems at some of the Group’s properties.

Water is used for cooling, production processes, cleaning and plumbing purposes. Systems for reu sing water for production processes are installed in several of the Group’s units.

Be-Ge Vehicle Division sells both new and used vehicles, creating a risk of waste when these assets reach the end of their life cycle. The used car trade entails an optimised life cycle, where each car is utilised to its full potential over decades; instead of going to scrap and making space for the construc tion of a new vehicle on the market, the vehicle is repaired and sold on. For the Be-Ge Group, it is important that we focus on our sustainable proces ses where we really have the opportunity to make a difference.

Efficient resource management goals

The aim is to reduce energy consumption within the Group’s various divisions without changing the scope of operations. This is followed up by mea suring the number of MWh consumed in the Group per financial year. For heating the Group’s proper ties, the aim is to cease using fossil fuels. The Group is already striving to reduce the consumption of water in our operations.

In addition, one of the aims for efficient resource management within Be-Ge Vehicle Division is for the proportion of used car repairs in total operations within Be-Ge Vehicle Division to become an increa singly larger part of the business.

The outcome for the last three financial years 201920, 2020-21 and 2021-22 is shown below. Consump tion of electricity, district heating and electricity de creased in 2021-2022 compared with the base year 2019-2020. The previous financial year 2020-2021 was affected by the coronavirus pandemic, which resulted in lower economic activity and consequent ly lower resource consumption.

Scope 2 is reported in accordance with the GHG protocol’s division of emissions into different scopes (GHG = Greenhouse Gas Protocol). Scope 2 refers to the consumption of electricity and district heating. Scope 1 refers to the combustion of fossil fuels for e.g. production in self-owned factories or emis sions from self-owned or leased vehicles/machines. Scope 3 refers to emissions from the purchase of goods and services.

Responsible resource management

Waste issues are important and improved waste sorting, reduced scrapping and increased recycling are issues that are important for the Be-Ge Group’s various operations. The largest companies in the Group are certified in accordance with ISO 14001 and the processes in the operations are designed to support ISO work.

Responsible resource management goals

The Be-Ge Group’s objective is to reduce the amount of waste from one financial year to the next, in order to contribute to more efficient resource utilisation.

waste

year, and also compa

year, ISO audits were

a

of

that are certified in accordance with ISO 14001.

resulted in only a few mi nor remarks.

all cases,

Social factors and personnel

Without our 540 employees, the business stops, which is why we value our employees extremely highly. The Be-Ge Group recognises the value of safe and satisfied employees, and therefore works continuously to improve working conditions within each division. In the case of recruitment, the aim is always to recruit according to competence and sui tability in order to ensure that the right person ends up in the right place. The majority of our employees are covered by collective agreements.

Be-Ge is one of the major employer in several locations in Sweden where the Group conducts its business, and the business affects these locations in many ways. We, therefore, have a mutual and rewarding dialogue with the municipality in each location. Being one of the major employer in each location makes it important that it is perceived as attractive to live and reside in the location. Be-Ge, therefore, participates in various networks regar ding accommodation and recruitment. Another way for the Group to make a positive contribution to so ciety is sponsorship, and we have chosen to primari ly focus our support on local sports associations.

Training with the right quality and focus is im portant for the development of both society and companies, and, in order to contribute to this, Be-Ge has been involved in Teknikcollege, a collaborative project that will increase the quality of technical training courses in the local area. In addition to this, the Group participates in various initiatives to cre ate better conditions for skills provision and skills development of employees.

Health and safety –

Systematic occupational health work

The Be-Ge Group’s various companies embrace employees’ terms and conditions and safety, which is why we work carefully with safety in our opera tions. The safety of our employees at the workplace is closely monitored and controlled/regulated by our health and safety policy, legislation, safety commit tee, safety representative and union involvement. This work means that our employees can feel safe in the workplace, that their rights are upheld and that injuries are minimised.

Risks

If Be-Ge is not perceived as an employer that cares about employees’ health and safety and strives for gender equality and diversity, there is a risk that the Group will not succeed in attracting or retaining skilled employees.

encourage

employees

activity,

has a number

absenteeism, the Group offers a wellness allowance.

positive effects

absenteeism continues to decrease for the Group’s employees.

Gender equality and diversity

The industries in which Be-Ge’s various divisions operate are still male-dominated. This means that we have a lot to work on to achieve our gender equality and diver sity goals. We see the value of equal workplaces

actively promote them in our day-to-day operations.

all employees are treated equally and with respect,

Be-Ge Group embraces a working climate

individual. By taking advantage of our differences, we gain access to a wide and varied range of experience, which is a major asset in our work. In accordance with the Group’s dis crimination policy, systematic work is carried out to achieve equality and diversity.

policy sets out the measures to be taken in confirmed cases of discrimination.

Total

2019-20

Board of Directors

Men Women

2020-21

Qualified and competent personnel

Training lays the foundation for future expansion. Without skills being continuously brought up to date, it is easy to be out-competed by other employ ers. Training in companies also contributes to lower staff turnover. The Be-Ge Group also believes that competent personnel are a prerequisite for pro viding the very best service to our customers. In 2021-22, the Group’s employees had 4,671 hours of training compared with 2,946 hours the previous year. Of these, 1,350 hours were invested in the BeGe Vehicle Division in order to be able to handle the rapid development that is taking place in the auto motive business.

Sponsorship and community involvement

Ice hockey and football are big sports in Oskars hamn, and this has resulted in both the ice rink and the indoor football hall bearing the Be-Ge Group’s name. In recent years, together with the IK Oskars hamn ice hockey club, we also helped to organise a substantial contribution to the Swedish Childhood Cancer Fund. During the financial year 2021-22, the Group has shown its support for Ukraine in the conflict with Russia through gifts to UNICEF and UNHCR. In addition to donating money to benefit Ukraine, the Group’s companies in Lithuania have also helped with transport activities and housing for refugees from Ukraine.

In addition to supporting major sports, we also contribute to other associations such as the Os karshamn Swimming Club, Lions, Hela Människan and the Oskarshamn Chamber Music Association. In our foreign businesses, subsidies have been given to other organisations such as shelters for women and organisations that protect children’s rights in society.

Human Rights

UN Global Goals.

Risks

The fact that goods are purchased from an external party and may originate from places where human rights are not taken into account to the same extent as in Sweden is another risk. It is therefore impor tant when purchasing new goods to ensure that suppliers do not negatively impact the environment or human rights. This is achieved by ensuring that the products have the correct markings and certi fications, and by training our staff regularly in the origin of products, sustainable supply chains and sustainability.

Respect for the individual is important within the Be-Ge Group. The Group’s Code of Conduct states that we must support and respect the protection of internationally proclaimed human rights and ensu re that the Group is not involved in human rights abuses.

Our employees in Sweden, Denmark, Lithuania, the UK, the Netherlands and Germany are located in countries where levels of occupational health and safety and suchlike are relatively high. The Be-Ge Group’s Code of Conduct sets out our requirements for suppliers to Be-Ge. Nor does the Group accept child labour or forced labour.

Sustainable supply chain

The requirements for the Group’s suppliers are set out in our Code of Conduct. The Group’s major supp liers, e.g. within Be-Ge Vehicle Division Scania and Volkswagen, take a clear position on human rights. Both work closely with the European Automoti ve Working Group on Supply Chain Sustainability (EAWG). EAWG has developed a questionnaire that both general agents use at the procurement stage to ensure that the supplier’s working conditions meet the minimum requirements. Volkswagen has a code of conduct which all suppliers must sign and which also covers the supplier’s suppliers. The code covers subjects such as human rights, prohibition of child labour and forced labour, anti-corruption and pollution of the environment.

Anti-corruption

UN Global Goals.

Risks

Inadequate business ethics can damage Be-Ge’s reputation and business operations. The Group’s Code of Conduct sets out how corruption and other irregularities are to be prevented.

Code of Conduct

The Be-Ge Group’s various companies shall act fairly and honestly in all situations. The expectations and requirements of our employees are set out in the Code of Conduct. This states that representatives of the Be-Ge Group shall not offer customers, potential customers, suppliers, consultants, governments, government departments or any representative of such entities, gifts or benefits in conflict with applicable laws or established business practices, in order to obtain or retain operations or any other undue advantage. Nor shall the Group’s employees accept gifts or other types of remuneration from a third party that could affect the objectivity of busi ness decisions.

The Code of Conduct also sets out the requirements for the Be-Ge Group’s business partners. Competi tion shall be fair and with integrity.

The work to combat corruption is based on continu ed training in our Code of Conduct, zero tolerance for bribery, sanction systems for violations and on internal guidelines regarding the size of gifts and business entertainment.

Our follow-up has shown good commitment from the companies within the Group, and to the best of our knowledge our Code of Conduct has not been breached.

Personal data management, as a result of GDPR, has resulted in a changed way of handling the personal data within the Group’s various business areas. The purpose of the GDPR is to give private in dividuals greater control over where and how their personal data is stored and places greater demands on companies to only process personal data to the extent necessary. Work is currently under way in the Group’s various businesses to update and maintain our processes in order to comply with the rules of GDPR.