MATERIAL IMPACTS

The results of the Materiality Analysis were presented to BoD. They are informed if the views of the stakeholders are changed and assessed to be relevant to company and their implementation requires FORCIT to take measures for which we need funding or resources. The situation is reviewed yearly in BoD meeting.

Based on the double materiality assessment (DMA), FORCIT Group has identified and assessed material sustainability impacts, risks and opportunities across its value chain. Material topics were identified in the following themes: Climate Change (E1), Pollution (E2), Resource use and circular economy (E5), Own workforce (S1), Affected Communities (S3), Consumers and end users (S4), and Business conduct (G1). In addition, material entity-specific topics that are not covered by ESRS were identified.

FORCIT has continued to work with topics recognized in the past, but DMA process named them clearly. In 2025 the Group Leadership team is developing the management practices and policies and will analyze DMA results and considers their implementation. The resources in Group Sustainability department have increased thus the DMA appointed several topics to promote internally (e.g. material efficiency and safety). FORCIT applied and received the fund from Business Finland to promote material recycling.

The results of our DMA reflect FORCIT Group’s sustainability strategy and business model.

Environmental impacts

The results of our assessment highlight negative environmental impacts associated with the manufacture of explosives, including associated greenhouse gas emissions, pollution and resource use. Our sustainability strategy, carbon neutrality roadmap and related actions strives to limit negative impacts across our value chain – from product development, material selection and sourcing to manufacturing, testing, transportation and product use. With our knowledge and expertise, we can train and consult our customers on proper measurement and management of environmental impacts of blasting activities.

Social impacts

Our strong strategic focus on safety across various functions from product development, manufacturing, transportation and storage to product use ensures the safety, health and well-being of our employees, end-users of our products and local communities. It is our priority to ensure that we closely manage and minimize any risk of accidents and safety impacts. Our success depends on our talented employees. Our commitment to providing opportunities for meaningful and motivating work, skills development and long careers creates positive impacts for our employees. It is our duty to also ensure that our employees are treated equally and fairly in the workplace. We want to be involved as an active, transparent and good player in society. Our contribution to local communities promotes well-being on a larger scale.

Governance impacts

Our business is based on strong business ethics and this commitment extends to our relationship with our suppliers. With proper supplier management and due diligence in various matters, including sustainability, we ensure responsible sourcing and contribute to positive impacts in our supply chain.

Resilience analysis has not been executed. It will be done in coming years. The topics, identified in DMA, have been known for years and those topics drives the strategy and business already now. The effort on safety practices and emission free products are strongly included in general practices and programs.

Entity-specific impacts, risks and opportunities

Security was identified as a material topic. It is important that we keep up our successful practices related to physical and information security as well as to management of authorized product use, so that we can ensure that any security-related risks or misuse of our products can be avoided. We also identified material opportunities related to societal impact and reforming the explosives industry. We acknowledge FORCIT Group’s role in Finnish national security, green transition, and collective development of safer and greener explosives industry.

Current and anticipated financial effects of material risks and opportunities

Current and anticipated financial effects of material risks and opportunities is yet to be assessed on a detailed level. Financial materiality was assessed on a rough level during our DMA, but detailed assessments of impacts on financial position, financial performance and cash flows across time horizons have not been conducted. Going forward, FORCIT Group will work to further mature data, quantification and understanding of financial effects of material risks and opportunities.