sustainability book - 2022

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Built to last.

2022

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V8 · 2022-01

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CONTENT Introduction............................................................................... 6-9 Our basic circumstanses................................................... 10-11 EAB worldwide..................................................................... 12-15 Our brand............................................................................... 16-17 Our organisation..................................................................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 customers, 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 therefore always, 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 for 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 run EAB as a family business with active owners. The next generation is already a part of the company to secure the role of the family business in the future. We will continue to focus on our three core areas: Storage equipment, Doors and Steel buildings, but through new expertise and technology 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 experts in the areas in which we operate. We will always carefully maintain the long-term aspect of all working relationships and projects.

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EAB WORLDWIDE EAB has an active cooperation with own companies and partners in Asia, Australia, Europe and North America. Our products are represented in large parts of the world, see the countries highlighted in green on the map.

300 1400 employees

million SEK in sales

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own companies

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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


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. Every customer shall be a satisfied customer.

EAB aim to be the customer’s first choice when it comes to storage equipment, doors and steel buildings. We shall also be the most attractive employer in the region.

Our mission

Our role

EAB’s mission is to make every customer a satisfied customer and to make every employee 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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ATION + Q

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Built to last.®

E X PE R T I S E

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BUILT TO LAST.® THE SUM OF OUR CORE VALUES AND THE ESSENCE OF OUR BRAND.


OUR BRAND PROMISE ’Built to Last’ summarises the way we think and work at EAB. The origin is, of course, the solid design of our products, but over time, the words have become a promise we give our customers, employees, suppliers and partners. Sustainability is something that permeates our entire company’s actions and should also be synonymous with the impressions we make in the environment, in the market and in people. The promise is so important to us that we have made it a registered trademark: EAB Built to last.®

In the environment

In our products

Through the very high recycling rate of our material, our processes and the way we work, we act on the basis of a circular economy - all to consume less of our earth’s resources and reduce our waste. The future begins in the present and we must therefore always be a responsible company and a sound role model.

EAB’s products are the result of an in-house developed concept, which includes the entire process, from selecting materials to installing the finished product. EAB’s Engineering Principles play an important role in this concept.

In the long term

At EAB, we always think in the long-term when we invest, begin collaborations, build, employ, or begin something new where we are the consignor.

It begins as an idea, grows to a vision, results in a drawing, a design, a building and a finished solution for your company. EAB is with you all the way from idea to reality - a reality that is built to last for years to come. That is what we call sustainability.

In time

In relationships Through mutual commitment, responsiveness, flexibility and quality requirements, we look after our relationships with customers, employees, suppliers and the world around us. 17


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OUR ORGANISATION An entrepreneur-driven organisation is an organisation that works strategically and goal-oriented with dynamism and flexibility. EAB’s organisation operates in three business areas; 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

Welding

STEEL BUILDINGS

DOORS

Installation

Environment

Production

Installation

Sales

Design

Production

Installation

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A FLEXIBLE ORGANISATION We endeavor to achieve a high level of flexibility, while at the same time retaining the entrepreneurship and 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. When the employees feel the support of the company, they feel dedication and become good representatives for EAB, to the company’s suppliers and clients alike. Our goal-oriented model unites this responsibility with flexibility and strive to take quick decisions. 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 in the most efficient way possible.

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COMPANY’S STAKEHOLDERS IT’S ABOUT LONG-TERM VISION IN ALL OF OUR RELATIONS Industry organisations

The media

Schools and students Employees

Suppliers

Clients

Governmental authorities and administration

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Competitors

The local community

Employer and Employee organisations


Stakeholder | 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 programe to ensure introduction 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 programes. 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 stable 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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Stakeholder | Customers At EAB we have close and long-lasting relationships with our customers 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 customer’s specific wishes. Customisation is one of EAB’s strengths and is therefore an important factor in achieving customer satisfaction. Through constant development within environment, technology, material and safety, our customer should feel that EAB is always the right choice and we are thereby achieving our mission of making every customer a satisfied customer. We carry out regular research surveys to measure customer satisfaction.

Stakeholder | Suppliers We strive for openness, high ethical standards and long-term 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 customers. 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. We work, for example, on the basis of SCIP, where we carefully follow up on suppliers registration of products and materials in cases where they contain substances according to ECHA’s list of chemicals. 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. 24


Stakeholder | 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 customers, which creates mutual loyalty.

Stakeholder | The local community EAB is an open and welcoming company with strong local ties. We support and encourage local businesses and nurture the local community in which we operate with genuine dedication. Through continual growth and a well-established sustainability mindset, we positively affect the local economy. This includes everything from our large investment in sponsorship of local sports associations to the fact that we build private homes to attract new residents. We encourage and see it as positive that employees get involved as part-time firefighters, which creates security for both our operation and our local community. 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.

Stakeholder | 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 internships and degree projects that give students the opportunity to join our company in a safe and long-term way.

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Stakeholder | 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). 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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Stakeholder | Employer and employee organisations We are affiliated with Svenskt Näringsliv (the Confederation of Swedish Enterprise)/Svemek (the Swedish Association of Industrial Employers). Foremost, 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.

Stakeholder | 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.

Stakeholder | 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.

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OUR FOUNDATION:

Sustainability | Production and technical development In order to foster a 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, high level of automation and optimal workflows. This allows us to produce as resource efficient a product as possible, without having to sacrifice 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 energyefficient heat ventilation system

New modeling technique FEM

Engineering Principles™

New configuration program

New shot blasting machine

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Sustainability | The market

We want to 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, 4PL, 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 with related services such as service, know-how and safety.

International growth By strengthening our role and our brand in international markets, we 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 establishment and growth. 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 company in the Danish market is a part of our growth strategy for the export market. Overall, our expansion strategies should lead to a continuous, annual growth, while maintaining a good margin.

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Sustainability | Environment

We want to leave a green footprint EAB supplies products which, thanks to their design and long lifespan, are economical in their use of resources and help to prevent pollution. Thanks to the steel’s high recycling rate, we are part of a circular economy by taking part in raw materials that come from scrap and take care of the same from our own operation. We also aim to contribute to a sustainable development by minimising the impact our operations have on the environment, both locally and globally. We take our responsibility for climate change by adapting our operation and implementing continuous improvements based on the commitment and motivation of all staff. 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, which limits climate change.

99 % recyclable

Optimisationand adaptation in production Utilisation of machinery and adaptation 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 and we are connected to FTI (organisation collecting packages and newspapers). Sustainability | Environment · Continued next page

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Surface treatment 95 % reduction of landfall waste. From 70 to 3,3 tonnes per year.

We use, among other things, powder coating, which is a durable, protective and environmentally friendly surface treatment method where we reuse leftover powder. To limit climate change, we choose the color that lasts and gives the least impact on the environment. We follow technological developments in the field to be able to apply new innovations in our business.

Waste and sorting of waste Reduced solvent emissions by 50 %.

Our hope is to consistently reduce the amount of waste generated and to sort the waste as much as possible. Further development 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 95 %, which involves a reduction from 70 to 3,3 tonnes per year.

Travel We have a traffic and travel policy which means that when travel can not be avoided at work, it must take place in an economical, environmentally friendly and safe manner. Covid-19 has brought new, digital opportunities, which will lead to reduced travel also in the future.

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Green electricity and energy source We think at EAB, you can never be green enough. Therefore we have adapted our operation to make the world a little greener by only using electricity that comes from origin-labelled hydropower. In addition, we use biogas, a completely renewable fuel produced from biomass. 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 3,249 tonnes/per year based on information from 2020.

-3.249 tonnes of carbon dioxide emissions

Washing hall The washing hall, where EAB’s cars, among other things are washed, is adapted and built to today’s requirements with a treatment plant to protect the stormwater. It is part of EAB’s environmental work to prevent environmental pollutants.

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 33 33


Sustainability | Quality

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Built to last.®

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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.

S+

We have 300 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

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WE FOLLOW UP! Customer satisfaction Delivery safety Quality controlls in production Quality monitoring of purchases


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 are 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 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. 36


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 is also considered an important criterion in the decision.

EAB – a healthy company EAB encourages all 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 and fitness facilities.

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, competence is also developed throughout the 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 employed 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.

GOA L S

Every employee should be a satisfied 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 costumer 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 custumers. These relationships are crucial for our success.

Growth enables us to develop Our goal is to have a continuous growth every year, while maintaining good profitability. If we are running a profitable business, this gives us the power to expand, develop, invest and thereby create highly 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 job opportunities 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 MSEK

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-labeled electricity Environmental certificate for renewable energy source Environmental certificate for origin-labeled gas 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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EAB 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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