Hållbarhetsboken engelska 2020

Built to last.

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V7 · 2020-01

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CONTENT Introduction................................................................6-9 Our basic circumstanses.........................................10-11 EAB worldwide.......................................................12-15 Our brand.............................................................. 16-17 Our organisatione.................................................. 18-21 Our interests.......................................................... 22-27 Our foundation to sustainability.................................. 28 • Production and technology...................................... 29 • The market............................................................... 30 • Environment........................................................ 31-33 • Quality..................................................................... 34 • Know-how and intellectual property rights............... 35 • Cartels and competition legislation.......................... 36 • Respect/equality..................................................... 37 • Work environment..............................................38-41 • Economy.............................................................42-43 Sources and more information...............................44-45

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At EAB, sustainability is our hallmark. It is a promise that we make to our clients, employees and business associates. For us, sustainability is therefore something that permeates our company’s actions and should also be synonymous with our impact on the environment, on the market and on people. It is relevant for us here today and it is relevant for future generations.

The future begins today and we must always, therefore, be a responsible company and set a good example. What begins at EAB in Smålandsstenar will last for life.

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We are

a responsible company and must set a good example

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Our sustainability presentation is designed to provide an overview of how we, as a company and as employees, can think about and act to make EAB a sustainable company from a broader perspective than what is traditionally associated with sustainability. By viewing all parts of our business as parts in an overall sustainable approach, we will ensure our company’s position today and in the future.

WE ARE A RESPONSIBLE COMPANY AND MUST SET A GOOD EXAMPLE EAB affects the community and the environment that people will inherit, both now and in the future, in that they must live with the results of what we deliver in the form of Storage equipment, Doors and Steel Buildings. We are also an employer that is anchored in the local community, and we take that responsibility very seriously. We take responsibility by fulfilling the requirements that are placed on us in our various roles. Long-term relationships with customers and suppliers lead to better financial, social and environmental projects that benefit the entire community. In our role as business partner, we are opposed to all types of corruption. With stable profitability, EAB can ensure funds for developing and expanding the business further and become a reliable workplace regardless of the economy.

LONG-TERM ACTION. DIVERSITY ENRICHES EAB is a long-term, secure employer which prioritises a good social environment or our employees, where health, diversity, a safe working environment, human rights and personal development are important issues. All in a corporate culture built on respect for everyone’s equal value, and characterised by our core values and the promise we give – Built to last.

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Our basic circumstances and focus areas We will continue as a family business We will continue to rund EAB as a family business with active owners.

We will gradually begin the work of integrating the new generation into the company in various ways and thereby also secure the role of family business forthe future.

We will continue to focus on our three core areas: Storage Equipment, Doors and Steel Buildings, but through new expertise, technology, etc. develop the range of products and services we offer within these three areas.

We will maintain the entrepreneurial spirit within the company.

Knowledge all the way We will use the strength we have established within the company in the form of a stable economy, strong brand image and a high level of expertise.

As a result we will take further steps from a more traditional production company to assume the role of industry expert within the areas we operation.

We will always carefully maintain the long-term aspect of all working relationships and projects.

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1289 SEK 1289 million in sales

250 employees

EAB worldwide

7 separate companies.

Sweden, Holland, Norway, Finland, North America, Czech Rep., and Denmark

7 separate companies EAB AB · Sweden EAB Storage Systems · Netherlands EAB Lagerteknikk A/S · Norway EAB Finland OY · Finland EAB North America Inc · Canada EAB Storage Solutions s.r.o. · Czech Rep. EAB Lagerindretning · Denmark

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Our market EAB actively collaborates with individual companies and partners in Asia, Australia, Europeand North America. Our products can be found throughout the world, see the countries highlighted in green on the map.

EAB Lagerteknikk A/S EAB Finland OY EAB AB EAB North America Inc

EAB Storage Systems

EAB Lagerindretning A/S EAB Storage Solutions s.r.o.

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Our business concept

Our vision

EAB aims to be passionate in its entrepreneurial spirit and dedication to selling, constructing, manufacturing and assembling storage equipment, doors and steel buildings adapted to meet our customers’ specific requirements, at a recognised quality level. The customer is king, and must go away satisfied.

EAB aims to be the client’s go-to choice when they are looking for storage equipment, doors and steel buildings. We also aim to be the best place to work in the region.

Our mission

Our role

EAB’s mission is for every customer to go away a satisfied customer, and for every employee to be a satisfied employee.

EAB will demonstrate corporate responsibility and set an example when it comes to responsibility for social, economic, environmental and commercial issues. We will also encourage diversity and see this as an important part of the company’s development.

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Built to last.®

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Our brand By consistently following our motto, we provide added value to our customers and create a unique position in the market.

Client focus

Dedication

Our product development and our actions must always be focused on the client’s requirements and problems.

100 % commitment, from the first contact to the signed off project, must be the hallmark of EAB’s collaboration with the customer at all times. This dedication must also be shown to our employees and suppliers. A horizontal hierarchy within the organisation, together with a high level of employee responsibility, makes this possible.

Built to last.® The sums of our core values is the essence of our brand.

Expertise

Quality

Adapting to the customer and dedication to the job require certain expertise. With a broad range of experience over many years plus ongoing professional training within the company, we ensure that all of our employees have a high level of expertise.

In addition to a high and consistent level of quality in all our products, quality at EAB is the result of client focus, dedication and expertise.

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Our organisation A horizontal organisation is an effective organisation.

EAB has a horizontal and cost-efficient organisation in three sectors: Storage equipment, Doors and Steel buildings.

CEO

Marketing

Data and IT

Finance

HR

Purchase

Quality

Production

Repairs and maintenance

STORAGE EQUIPMENT

Sales

Design

Production

Sales

Design

Production

Welding

STEEL BUILDINGS

DOORS

Installation

Environment

Installation

Sales

Design

Production

Installation

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A flexible organisation We endeavour to achieve a high level of flexibility, while at the same time retaining the community spirit we have within the company. The management at EAB has always had a lot of faith in their employees and it has therefore felt only natural to give them a lot of responsibility. Through the employees feeling the support of the company, they feel dedication and become good representatives for EAB, to the company’s suppliers and clients alike. Our horizontal organisational model unites this responsibility, flexibility and endeavour to maintain minimally centralised decision-making. It is suitable because most of the work is done in project form.

A STRONG CORPORATE CULTURE A strong corporate culture, where everyone is aware of their responsibility and the value of what EAB sells and represents, means that we can use this type of organisation as efficiently as possible.

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Company’s interests It’s about long-term vision in all of our relations Industry organisations

Schools and students

The media Suppliers

Employees

Clients

Governmental authorities and administration

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Competitors

The local community

Employer and Employee organisations

Business associates | Employees Through our comprehensive sustainability mindset, EAB is a safe and secure employer. We maintain a high standard of working and recreational environments and have a mentorship programme to ensure induction into our company is as positive and secure as possible. We encourage individual development and opportunities to make a career within the organisation regardless of the employee’s initial position. This is achieved through things like in-house training and various development programmes. EAB is the result of its human capital and the employee´s health and well-being is a prerequisite for a healthy growth.

We encourage and create conditions for employees to take care of their health and well-being, by, among other things, offering gym and sports center at the company and access to massage and occupational health. We also believe that a healthy balance between working life and private life creates a stabil foundation to employees well-being and development at EAB. Our aim is to be able to offer our employees a social environment in which health, diversity, a safe working environment, human rights and personal development are important issues. As a result we create the best conditions for making every employee a satisfied employee.

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Business associates | Clients At EAB we have close and long-lasting working relationships with our clients and together we look after both parties’ benefits and opportunities for growth.

We are attentive and offer a flexible organisation in order to meet every client’s specific wishes. Customisation is one of EAB’s strengths and is therefore an important factor in achieving client satisfaction. Through constant development within environment, technology, material and safety, our clients should feel that EAB is always the right choice and we are thereby achieving our mission of making every client a satisfied client. We carry out regular research surveys to measure client satisfaction.

Business associates | Suppliers We strive for openness, high ethical standards and long-term working relationships with our suppliers and contractors. We select suppliers according to quality and delivery reliability to put us in the best position to deliver the right products or services at the right time to our clients. The choice of suppliers is based on EAB’s values, in other words, our suppliers should fully understand the values EAB represents. A sustainable supply chain is built on quality and expertise at every level and a joint responsibility for following international conventions and laws, as well as other client requirements. A prerequisite for shared value creation is increased interaction. We should look after our suppliers, but at the same time avoid ending up in a dependency situation that makes us vulnerable as a company.

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Business associates | Competitors At EAB we should always treat our competitors with respect by following the relevant applicable laws, rules and regulations. Through sound finances and profitability we will focus on continual investments, expertise, positive working environment and product and production developments that create high competitive barriers and thereby make us a strong market contender. We value the long-term partnerships we have with our clients, which creates mutual loyalty.

Business associates | The local community EAB is an open and welcoming company with strong local ties. We support and encourage local businesses and nurture the locality in which we operate with genuine dedication. Through continual growth and a well-established sustainability mindset, we positively affect the local economy. We have a goal-oriented and well-integrated environmental responsibility in the organisation and follow laws and regulations relating to emissions, etc. in order to minimise the environmental impact of our operations. At EAB, we want to be a good representative for the area in which we operate.

Business associates | Schools and students EAB collaborates with schools on different levels with the purpose of establishing contact with students and reinforcing our brand image. These collaborations provide us with an opportunity to establish a network as well as the opportunity for a constant influx of new expertise into our company. We also offer a trainee programme that give students the opportunity to join our company in a positive and lastingly secure manner.

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Business associates | Industry organisations At EAB we have an established and well-functioning cooperation alliance with the industry organisations that represent our three product categories. Through these alliances, EAB has the opportunity firstly to influence development within each industry, but also gains access to expertise within these areas, nationally as well as internationally.

EAB Doors | Door group The door group participates and is represented in European Standardisation efforts by CEN (European Committee for Standardisation) and in the European industry within the structure of EDSF (European Door and Shutter Federation).

For EAB Steel buildings | SBI (Steel Building Institute) SBI provides a vision of the future of steel construction and steel profiles in modern society. SBI provides advice and competency development in an international network. SBI provides decision-makers and governmental agencies with information about sustainable steel construction.

EAB Storage Equipment | Materials Handling group The association works on both technical, standardisation and legislative issues and represents the industries in societal debate and dialogue with Swedish and foreign governmental bodies.

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Business Associates | Employer and employee organisations We are affiliated with Svenskt Näringsliv (the Confederation of Swedish Enterprise)/Svemek (the Swedish Association of Industrial Employers). In the first instance we use them for union agreement services. IF Metall has a local club at EAB with whom regular meetings are held. We are conscientious about always conducting an effective dialogue with these organisations, with a high level of respect for all parties.

Business Associates | Authorities and administrations We follow applicable laws and regulations and have an open attitude and transparency towards the general public and authorities. We run a licensable operation of which the Gislaved local council is our regulatory body. We send them our environmental report on an annual basis. We hold regular meetings with the Gislaved local council about environmental issues and with the emergency services about fire safety.

Business Associates | Media As an open company, EAB gladly communicates with the world around us in various ways. We are proud of what we create and the expertise we offer, and communicate this in various ways through regular communication with the press, social media and other media channels.

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There are no shortcuts to sustainability.

OUR FOUNDATION:

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Sustainability | Production and technical development In order to foster the sustainable development of the company over time and protect our position as a leading company within the sectors that we are active, EAB works continuously on technology and production development. We expand our own expertise, but we are also looking for partners who can offer additional skills and knowledge so that our concept can achieve the highest technical level possible. Our business model also includes constant improvements to the efficiency of our design and production chain. This is achieved through proactive efforts during the design stage, a high degree of material usage, a high level of automation and optimal workflows. This allows us to produce as resource efficient a product as possible, without having to sacrificing function and quality. In order to increase the understanding and value of our knowledge, this is packaged and communicated in an attractive way to the market through our marketing efforts.

EXAMPLES OF TECHNOLOGY AND PRODUCT DEVELOPMENT IN RECENT YEARS

New generation Radioshuttle™

New generation supporting beam Omega

New roll forming line

New modelling technique FEM

Engineering Principles™

Flow optimisation in production

Thermoport

New configuration program

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Sustainability | The market

We will grow Through flexibility, knowledge and sensitivity to our customers’ needs and adapting to emerging markets, EAB has created a strong position that is constantly expanding as demand increases and needs change in these markets. We are currently a leading supplier within sectors such as central warehousing, e-commerce, 3PL and 4PL, and car dealership-, shopping- and other commercial centres, areas that are under continual growth, nationally as well as internationally. We have a wide variety of customers so that we are not dependent on individual industries and therefore we reduce our vulnerability to changes in the economy. We are also increasing the share of projects where EAB provide solutions for all three of our product areas: Storage equipment, Doors and Steel buildings, which strengthen our customer relationships further. We see opportunities for expanding our core activities Our with ancillary services such as service, know-how and safety.

International growth

goal is

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growth per By strengthening our role and our brand in international markets, we year distribute our risks over a wider area and create additional opportunities to grow and expand in a stable manner. We are currently represented across large parts of the world with our products, and we are actively looking for partners in countries where we see the potential for becoming established/growing. The choice of suppliers is based on EAB’s values, in other words, our suppliers should fully represent the values of EAB. Our most recent investment in a separate company in the North American market is a part of our growth strategy for the export market. Overall, our expansion strategies will result in achieving our goal of 10 % growth per year.

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Sustainability | Environment

We want to leave a green footprint behind EAB supplies products which, thanks to their design and long lifespan, are economical in their use of resources and help to prevent pollution. We also aim to contribute to sustainable development by minimising the impact our operations have on the environment, both locally and globally. We can achieve this via ongoing improvement founded on the commitment and motivation of all staff. Processes and environmental work should be reviewed alongside other requirements when selecting and evaluating suppliers. Current rules and regulations should be observed and an open mind kept in terms of the public and authorities.

Our environmental work complies with and is certified according to ISO 14001.

Material that is 99 % recyclable EAB primarily uses steel as the material of choice in our constructions. The degree of recycling for this material is 99 %, which means that in terms of a lifecycle, the material has a minimal impact on the environment.

99 %

recyclable

Optimisation in production Utilisation of machinery and materials must be optimised and streamlined to minimise the need for materials and energy. The company will try to use as few resources as possible when choosing packaging and transport.

Sustainability | Environment · Continued next page

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97 % reduction of landfall waste.

From 70 to 2,2 tonnes per year.

Reduced solvent emissions by 50 %.

WATERBASED COATING

Surface treatment By using water-based coatings as much as possible we have reduced our solvent emissions by 50 %. The greatest change in terms of reducing our environmental impact is that we now paint corrosiveness class I steel pylons with water-based paint (previously solvent-based). We are following technical trends in the field in order to be able to apply new innovations to our business.

Waste and sorting of waste Our hope is to consistently reduce the amount of waste generated and to sort the waste as much as possible. Expansion and maintenance of our production processes, as well as other steps we have taken, have resulted in a decrease in the amount of landfall waste by 97 %, which involves a reduction from 70 to 2,2 tonnes per year.

Travel We have a traffic/travel policy which involves business trips being taken economically, safely and in an environmentally-friendly way.

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Green electricity We think at EAB, you can never be green enough. Therefore we have decided to make the world a little greener by only using electricity that comes from origin-labelled hydropower. In other words, it involves investing in the spirit of EAB where we defend sustainability at all levels.

In terms of numbers, this means that we are reducing our CO2 emissions by 1,962 tonnes/ per year based on information from 2019.

-1.962 tonnes of carbon dioxide emissions

Examples of environmental issues that we are continuously working on to improve our business: Scrap/discarded steel Natural gas consumption per the amount of steel used Solvents per amount of steel used Landfall waste per amount of steel used Percentage of transports with environmentally-certified companies

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Sustainability | Quality

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EAB works in sectors where the ability to meet the needs and requirements, explicit or implied, of customers and authorities is a prerequisite for success. To ensure this ability is kept in the long term, EAB’s goods and services must come out on top when the customer is weighing up their qualities, cost, delivery time, etc. Each shipment should be a recommendation for future business. Our approach to quality must penetrate every detail of everything we design, manufacture and sell and how we do that.

Working on quality involves all employees.

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We have 250 employees in our ”Quality Department”

Quite directly Close collaboration between our departments for sales, design and production provide us with excellent conditions for avoiding errors in any of our processes. By doing it right the first time, we can meet our delivery times, reduce bills, ensure the quality of our work processes and avoid expensive additional costs.

We comply with and are certified according ISO SS EN 9001 and SS EN 1090-1

WE FOLLOW UP! Customer satisfaction Secure delivery Quality control in production Quality assurance in purchasing

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Sustainability | Know-how and intellectual property rights

Knowledge all the way At EAB we have developed broad and deep knowledge capital that is growing and developing the entire time as a result of the experience we have in designing, manufacturing and installing customised projects for customers. We have created our own methods, production processes and developed unique products that have also been patented. We have developed a very strong brand that is currently in a unique and very strong position on the market. Our combined knowledge and our intellectual property is critically important to EAB’s strong position on the market, and therefore constitutes one of our most important components in terms of a sustainable business concept over time.

Therefore, we have created procedures to protect these values in the company by • Applying for patents for those products that have a unique level of technology.

• We have registered and obtained protection for our brands in those countries where we are active.

• We have also created internal procedures in terms of confidential information and how documents, methods may be used and must be protected.

Confidential information can include ideas, designs, techniques and production processes, drawings, formulas, procedures, business and sales plans, pricing information, financial information, employee qualifications, customer and supplier lists, trade secrets, inventions and patent applications.

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Sustainability | Cartels and competition legislation

We maintain a good and healthy business morale EAB follows laws regarding cartels and competition as well as the local regulations in the countries where we are operating. Through our corporate culture and clear vision, we will live up to our customer promises and therefore eliminate all of the risks involved with unhealthy businesses. We work with customers, suppliers and other partners who have the same foundational values as EAB in terms of ethics and good business practices.

In this way we counteract all types of corruption, cartel formation and non-businesslike competition.

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Sustainability | Respect/Equality

EAB should always be considered as a safe workplace Everyone should feel safe and comfortable when working at EAB. The time we spend at work should be pleasant and meaningful. Our satisfaction at work increases if our work colleagues and workgroups provide each other with support and assistance. It is therefore important that steps are taken to counter and eliminate all types of discrimination, harassment and bullying at the workplace.

Zero tolerance EAB has zero tolerance for all forms of bullying, such as discrimination and harassment based on the seven faces of discrimination: The employee’s gender, gender expression or identity, ethnic origin, ability, sexual orientation, age, religion or other faith.

This means that all employees must have the same rights and opportunities within EAB as well as the same responsibility to follow applicable guidelines.

In order to achieve the above, we have created EAB’s Equality Policy against discriminatory harassment. It includes goals and strategies for maintaining a safe and accepting workplace, with respect and sensitivity to human rights.

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We care about diversity.

It helps us to develop and gives us a positive working environment.

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Sustainability | Work environment

Our goal is for all employees to feel satisfied EAB manages and develops the work environment in conjunction with their employees.

Enjoying one’s work and having opportunities for growth in a pleasant environment is important for us. Prior to decisions regarding new investments, new buildings or renovations, or other changes to the business, issues regarding the work environment and general environment are discussed, risks are examined and the consequences are carefully assessed in conjunction with our employees. When purchasing equipment or making changes to production facilities or offices, ergonomics are also considered an important criterion in the decision.

EAB – a healthy company EAB encourages all of its employees to keep healthy by providing access to a gym, recreation facilities with massage, taking part in various athletic events, etc. We also ensure an active free time for employees through sponsoring various teams, for example football, tennis, hockey, volleyball, fitness facilities, etc.

EAB grows as our employees grow We want to take advantage of each employee’s knowledge and experience and thereby encourage and motivate everyone to feel committed, take initiative and grow within the company. When our employees grow into their job, this improves the level of competency within the entire organisation. At EAB, there is an opportunity for growth in all areas, both theoretical as well as practical.

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Introductory training for everyone Regardless of the position that a new employee is hired for, everyone must undergo introductory training, including documentation. The length of the introductory training varies depending on what job is involved. The goal is for everyone to understand EAB’ values and culture and thereby feel a sense of responsibility, community and motivation.

GOALS

Every employee should be a happy employee

EAB the best place to work

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”Through 100 % dedication, together with a high level of technology and the ability to find rational and efficient design and production solutions, we will achieve profitability for each project without sacrificing on quality or client benefits.”

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Sustainability | Finance

Profitability generates growth opportunities For EAB, sustainability is our path to sound finances and profitability. We keep to our promises and are well aware that our latest deliveries are the start of the next order.

That is how we build long-term relationships with our clients. These relationships are crucial for our success.

Growth enables us to develop Our goal is to increase sales by 10 % per year and maintain good profitability. If we are running a profitable business, this gives us the power to expand, develop, invest and thereby create high competitive barriers. It also gives us the opportunity to act swiftly and efficiently when new opportunities for development of the company arise. When we expand in a financially stable manner, we also create new jobs and ensure stability for our employees by becoming resilient even when the market is experiencing a recession. It is a simple equation: profitability generates growth, growth generates profitability.

Turnover

Employees

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Sources and more information Our sustainability guide is a summary of the policies, plans and values that we work on daily and which are described in our corporate handbook.

Sources of information were collected from the following documents: 04-02-01 Quality policy 04-09-01 Traffic safety/travel policy 05-00-01 Work environment policy 06-01-01 Environmental policy (ISO14001 4.2) 04-10-01 05-16-01 Equality plan and Organisational and social environment Minutes for management review 2018-02-02 EAB Business plan Environmental certificate for origin-labelled electricity Environmental certificate for renewable energy source

Tack för att ni har gjort ett val för miljön!

Härmed intygas att

EAB AB köper 7 600 MWh biogas under avtalstiden, vilket minskar utsläppen med 1 559 ton koldioxid.

Intyget gäller för tiden 2019-01-01 - 2020-12-31.

Emma Tronarp Trawén Head of Energy Sales E.ON Energilösningar AB

Biogas innebär: Biogas bildas när organiskt material bryts ned. Avräkningen sker per årsbasis. Biogas är ett förnybart bränsle och ger därför inget netto-tillskott av koldioxid vid förbränning. Kolet i biogasen finns redan med i naturens kretslopp.

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Built to last.® is a registered trademark owned by EAB.

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STORAGE EQUIPMENT | DOORS | STEEL BUILDINGS SMÅLANDSSTENAR, SWEDEN P H O N E + 4 6 3 7 1 - 3 4 0 0 0 | W W W. E A B . I N F O

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