Sustainability Report 2022

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The Be-Ge Group

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022 - THE BE-GE GROUP 2 Company Presentation 3 Values 4 Customer value 4 Long-term view ............................................................... 4 Collaboration 4 Assuming responsibility 4 The Group and sustainability 5 Environment .......................................................................... 6 Risks 6 Efficient resource management 8 Efficient resource management goals 8 Consumption of electricity and district heating......9 Water consumption 9 Responsible resource management 10 Responsible resource management goals 10 Amount of waste broken down by type 10 Promotion of Innovation 11 Innovation goals 11 New cars sold 11 Social factors and personnel 12 Health and safety 13 Risks 13 Total absence 14 Gender equality and diversity 14 Employment category ................................................ 15 Qualified and competent personnel 17 Sponsorship and community involvement 17 Human Rights 18 Risks ................................................................................ 18 Sustainable supply chain 18 Anti-corruption 19 Risks 19 Code of Conduct ........................................................... 19 Whistleblower policy 20 TABLE
CONTENT
OF

Company Presentation

The Be-Ge Group

Bror Göthe Persson established the Be-Ge Group’s operations in 1934 by taking over a company 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 industrial painting.

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

In addition, the Group owns several commercial properties in central Oskarshamn. Sustainability 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 availability, 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, honesty and close collaboration with the customer.

Long-term view

With its long history and stable ownership structure, Be-Ge stands for reassurance, tradition and reliability. The long-term view means that our employees feel a sense of pride in being part of the Be-Ge family. Be-Ge is characterised by a strong entrepreneurial 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 respect for the individual, we develop both our employees 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 stakeholders. “Collaboration brings success” is a motto that pervades the whole business.

Assuming responsibility

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

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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 2022, which covers the eight-month period 2022/05/012022/12/31, 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 processes 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 responsibility and personnel, human rights and business ethics that combat corruption are, therefore, an important part of achieving the goals without conflicting 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 operations. There are also risks related to the environment 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.

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Environment

7. AFFORDABLE AND CLEAN ENERGY

Ensure access to affordable, reliable, sustainable and modern energy for all.

9. INDUSTRY, INNOVATION AND INFRASTRUCTURE

Build resilitent infrastructure, promote inclusive and sustainable industrialization and foster innovation.

12. RESPONSIBLE CONSUMPTION AND PRODUCTION

Ensure sustainable consumption and production patterns.

13. CLIMATE ACTION

Take urgent action to combat climate change and its impacts.

UN Global goals

Risks

ENVIRONMENTAL LEGISLATION

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

ENERGY COST

Increased energy costs in combination with increased 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, damage to plants and infrastructure. But access to raw materials and changed customer behaviour can also affect operations.

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The material aspects of "efficient resource management, responsible resource 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 sustainability, 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, responsible resource management and innovation promotion”

Efficient resource management

Natural resources, such as energy and water, raw materials and input materials, are used in the Be- Ge 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 resources 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 reusing 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 construction 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 processes 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 measuring the number of MWh consumed in the Group per financial year. For heating the Group’s properties, 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 increasingly larger part of the business.

The outcome for the last four financial years 2019- 20, 2020-21, 2021-22 and 2022 *) is shown below. Consumption of electricity and district heating decreased in 2022 compared with the base year 2019-2020. The financial year 20202021 was affected by the coronavirus pandemic, which resulted in lower economic activity and consequently 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 emissions from selfowned or leased vehicles/machines. Scope 3 refers to emissions from the purchase of goods and services.

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*) The financial year 2022 covers an eight-month period between 2022/05/01 - 2022/12/31.

Consumtion of electricity and district heating according to Scope 2:

*) CO2 equivalent for electricity is calculated according to the Swedish residual mix, which is 54 kg/ MWh. CO2-equivalent 30 kg/MWh is used for district heating. Both of the equivalents are those used.

Water consumption also decreased compared with the base year 2019-2020. The lower level of consumption in 20202021 was affected by the coronavirus pandemic and the reduced scope of the activities that this caused.

**) The financial year 2022 covers an eight-month period of time.

Water usage Water consumption
0 5000 10000 15000 20000 0 5 10 15 20 25 20-21 19-20 21-22 22 *)
Electricity MWh 20-21 19-20 21-22 22 **) 0 2000 4000 6000 8000 10000 12000 0 5 10 15 20 KWh / SEK thousands MWh District heating MWh 0 1000 2000 3000 4000 5000 6000 7000 8000 0 3 6 9 12 15 20-21 19-20 21-22 22 **) KWh / SEK thousands MWh Electricity CO2* 0 100 200 300 400 500 600 0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 20-21 19-20 21-22 22 **) CO2 kg / SEK thousands CO2 , ton District heating CO2* 0 50 100 150 200 250 0,0 0,1 0,2 0,3 0,4 0,5 20-21 19-20 21-22 22 **) CO2 kg / SEK thousands CO2 , ton liter / SEK thousands m³

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.

Amount of waste by type:

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.

The amount of total waste also decreased in 2021-22 compared with the base year. During the year 2022, an extra volume of landfill has arisen due to environmental work in connection with the expansion of the truck workshop in Vetlanda. During the year, ISO audits were conducted at a couple of the Group’s companies that are certified in accordance with ISO 14001. In all cases, the audits were approved and resulted in only a few minor remarks.

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Unit Hazardous waste Turnover Recycling Recycling Landfill Landfill Non-hazardous waste Tonnes Kg/SEK thousands Total Total Tonnes Recycling Landfill TOTAL 2019-20 370 2,2 83 0 2 279 71 453 2 350 2 803 1 701 99 2020-21 81 1,6 371 0,4 452 1 800 2 252 1 452 2022 *) 161 1,4 1 171 83 0,1 37 244 1 932 2021-22 174 1,5 1 649 83 0 31 252 1 680 1 208
*) The financial year 2022 covers an eight-month period of time.

Promotion of Innovation

The automotive industry is often a focal point when discussing innovation; autonomous electric vehicles increasingly appear in the news and alternative transport services such as Uber and Bzzt are increasing their presence in major cities. Be-Ge Vehicle Division believes that many of the solutions of the future entail more efficient resource management and increased driver safety.

Innovation goals

The objective within Be-Ge Vehicle Division is to reduce climate impact by increasing the proportion of chargeable and electric vehicles from year to year. The decline in the number of rechargeable vehicles sold is explained by the suspension of the environmental bonus in autumn 2022. It is mainly the sale of rechargeable vehicles to private individuals that has decreased.

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New cars sold 0 50 100 150 200 250 300 2020-2021 2019-2020 2021-2022 2022 *) 49 130 261 223 15 21 27 14 Rechargeable vehicles Gas vehicles % Rechargeable and Gas vehicles of total sales 8,3 24 46,5 36,9 SUSTAINABILITY REPORT 2022 - THE BE-GE GROUP
*) The financial year 2022 covers an eight-month period of time.

Social factors and personnel

5. GENDER EQUALITY

Achieve gender equality and empower all women and girls.

8. DECENT WORK AND ECONOMIC GROWTH

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

UN Global goals

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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 suitability 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 regarding accommodation and recruitment. Another way for the Group to make a positive contribution to society is sponsorship, and we have chosen to primarily focus our support on local sports associations.

Training with the right quality and focus is important 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 create 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 operations. The safety of our employees at the workplace is closely monitored and controlled/regulated by our health and safety policy, legislation, safety committee, 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.

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Total absence

To encourage our employees to participate in physical activity, which has a number of positive effects on well-being and thus reduced absenteeism, the Group offers a wellness allowance.

Men (%)

Women (%)

Total (%)

The average absence is still at a level below the base year 2019-2020.

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 diversity goals. We see the value of equal workplaces and actively promote them in our day-to-day operations.

The Be-Ge Group embraces a working climate in which all employees are treated equally and with respect, consideration and appreciation for the 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 discrimination policy, systematic work is carried out to achieve equality and diversity. The policy sets out the measures to be taken in confirmed cases of discrimination.

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0 % 2 % 4 % 6 % 8 % 10 % 12 % 2019-2020 2020-2021 2021-2022 2022 7,5 10,7 8,4 6,1 7,2 6,4 6,1 6,8 6,3 6,7 5,3 6,3

The table below presents the Be-Ge Group’s personnel data based on diversity and equality factors.

Employment category

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White-Collar Employees Blue-Collar Employees 0 50 100 150 200 2019-2020 2020-2021 2021-2022 2022 0 50 100 150 200 250 300 350 400 2019-2020 2020-2021 2021-2022 2022 0 20 40 60 80 100 Age <30 Age 30-50 Age >50 0 50 100 150 200 Age <30 Age 30-50 Age >50 Total Men Women Total Men Women 2019-20 2020-21 2021-22 2022 2019-20 2020-21 2021-22 2022 Of which
which TOTAL NUMBER 528 541 542 545 2019-20 2020-21 2021-22 2021-22 Men Women White-Collar Employees Blue-Collar Employees 370 158 182 346 374 384 390 167 180 361 158 171 371 155 165 380
Of

Total number of employees: White-Collor and Blue-Collor Employees

Board of Directors

SUSTAINABILITY REPORT 2022 - THE BE-GE GROUP 16 Age <30 Age <30 Age 30-50 Age 30-50 Men Age >50 Age >50 Women Total Total number Total number 2019-20 2019-20 2019-20 2020-21 2020-21 2020-21 2021-22 2021-22 2021-22 2022 2022 2022 62 0 58 0 64 0 75 0 268 0 7 198 7 0 528 7 7 258 0 7 242 0 6 240 0 5 225 7 0 236 7 1 230 6 1 541 7 7 542 7 7 545 6 6

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 employers. Training in companies also contributes to lower staff turnover. The Be-Ge Group also believes that competent personnel are a prerequisite for providing the very best service to our customers. During the eightmonth period of 2022, the Group’s employees had 4,257 hours of training compared with 4,671 hours the previous financial year 202122. Of these, 1,757 hours were invested in our White-Collor employees and 2,500 hours in our Blue-Collor employees.

Sponsorship and community involvement

Ice hockey and football are big sports in Oskarshamn, 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 Oskarshamn ice hockey club, we also helped to organise a substantial contribution to the Swedish Childhood Cancer Fund. During the financial year 2022, 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 Oskarshamn 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.

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Human Rights

16. DECENT WORK AND ECONOMIC GROWTH

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

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 important 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 certifications, 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 ensure 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 suppliers, e.g. within Be-Ge Vehicle Division Scania and Volkswagen, take a clear position on human rights. Both work closely with the European Automotive 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.

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Anti-corruption

16. PEACE, JUSTICE AND STRONG INSTITUTIONS

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.

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 business decisions.

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

The work to combat corruption is based on continued 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 individuals 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.

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Whistleblower policy

Whistleblowing means reporting irregularities or problems that have caused or may cause serious harm to the business. Our whistleblowing procedure provides the opportunity to report anonymously if something is not being done correctly. With our whistleblowing service, Be-Ge Företagen AB strives to create a transparent business climate and high ethical standards.

Our whistleblowing service is a system designed to pick up indications of potential problems as early as possible, and thereby reduce our risks. It is important to protect good corporate governance and to maintain the trust of customers and the general public in us. The service is open to employees, contractors, trainees etc. in the Group’s companies and to persons with a similar position in the Group’s subcontractors and suppliers.

In the first instance, we encourage employees to reach out to their manager or their manager’s manager. If this is impossible because of the nature of the irregularity, or if the information provided is ignored, our whistleblowing procedure should be applied. The same applies if you are unwilling or unable to be open about your identity.

The whistleblowing service can be used to provide information if there is any suspicion of something that is not in line with the Group’s Code of Conduct and that could seriously affect our organisation or a person’s life or health. The same applies to attempts to conceal these kinds of actions.

Whistleblowers who have reported irregularities under this policy in good faith have statutory protection against reprisals. Any negative treatment will have disciplinary consequences for those concerned. This applies regardless of whether or not an investigation confirms the reported suspicions or allegations.

If internal reporting, in accordance with the above procedure or otherwise, is not acted upon, or if there are reprisals, the Swedish Work Environment Authority is the supervisory authority for these issues.

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