Sustainability in Short 2021 - FORCIT Group - ENG

2021

SUSTAINABILITY IN SHORT

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GLOBAL TRENDS AND OUR OPERATIONS CLIMATE CHANGE

Global warming and its consequences are matters that concern each and every person on our planet.

The environmental footprint of the blasting and explosives industry occurs along the value chain, often during several decades, and ranges from natural gas production to production and usage of explosives, finally ending up to metallic products, batteries or construction work of roads and buildings.

The biggest emissions for Forcit result from the production of raw materials – which today are largely based on natural gas. As with other industries, also the explosives industry is seeking alternatives, driven both by the need to get rid of fossil fuels and by the geopolitical crisis.

ACCESS TO ENERGY, CLEAN WATER, FOOD, AND RAW MATERIAL IN A GROWTH ECONOMY

The resources needed for sustainable development (water, energy, food, raw materials) are limited and there is an urgent need for a green shift in energy systems and critical raw material supply. Electrification requires an enormous increase in availability of metals, minerals, and rare-earth elements (REE).

Sustainable mining with a minimised environmental and social footprint is one of the key challenges in this shift.

Today’s blasting technology has a significantly less negative impact on the environment compared to earlier techniques, but a lot of challenges remain in order to reduce these even more. As a key player with explosives products and services in the Nordic countries, we are deeply involved in the mining industry and therefore a part of this necessary shift.

In this report, we present some projects related to these challenges.

SHIFTING DEMOGRAPHICS AND URBANISATION

Increased populations, growing middle class, an aging workforce and urbanisation are changing our societies. Urban planners and policymakers are grappling with the questions of how to make growth at this scale sustainable, and how to tackle the escalating social, economic, and environmental problems linked to more and more people moving to big cities.

Through our services, we contribute to sustainable societies, helping contractors and developers to meet the ever-increasing challenge of managing construction, infrastructure and extraction projects in compliance with tough environmental regulations and, above all, safely towards the surrounding people and environment. Our services range from risk analyses and pre- and post-measurements to online environmental monitoring and damage evaluations.

INTERCONNECTED WORLD ‒ INTERDEPENDENCIES WITH UNFORESEEABLE CONSEQUENCES

Interconnectivity makes it possible for us to be connected all over the world, exchanging technology, goods, products and services. But interconnectivity also brings about both increasing cyber threats as well as technological dependencies with considerable inherent vulnerabilities. Both the pandemic and the current geopolitical crisis have exposed these vulnerabilities.

Due to the geopolitical crisis, cyber risks have increased during recent years, and we have intensified our work related to cyber security and invested in new protective systems. The supply chain and availability of raw materials for explosives will continue to pose clear challenges to the explosives manufacturing industry in coming years.

Altogether, the context where Forcit operates has become more unstable, bringing about a new risk environment where we need to be able to adjust to quick changes overcoming new challenges at short notice while keeping us on track with our long-term ambitions and commitments.

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TABLE OF CONTENTS

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Global Trends and Our Operations........................................2 Greetings from the CEO......................................................4 PROFITABILITY: The Financial Performance of 2021..................6 PEOPLE: Developing Safety is a Long-term Process.................8 PLANET: Sustainability is Everyone’s Business.......................14 Explosives Operations: Norway...........................................21 Explosives Operations: Finland...........................................22 Explosives Operations: Sweden..........................................23 Digitalisation as a Part of Sustainability Targets....................24 FORCIT Consulting – Enabling Sustainable Societies..............26 Consulting Operations in the Nordics..................................27 Sustainable Development and Defence Technology...............30 Code of Conduct / Market and Business Ethics.....................31

We have divided our sustainability perspective into three areas: PEOPLE, PLANET, and PROFITABILITY. Sustainability in short

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GREETINGS FROM THE CEO NAVIGATING OUR OPERATIONS IN A TURBULENT WORLD

RISING IMPORTANCE OF RESILIENCE AND SECURITY OF SUPPLY

HIGH AMBITION LEVEL TO CONTRIBUTE TO THE FIGHT AGAINST CLIMATE CHANGE

2021 will be remembered as a year where one global crisis overlapped the other, throwing Europe straight from the pandemic to the dramatically rising geopolitical tension which escalated into the Russian attack on Ukraine.

Resilience and security of supply are strongly connected to sustainable business, and their significance has intensified during the pandemic and increased even further because of the war in Ukraine.

With growing populations in urban areas, and with even more pressure on the climate transition to proceed and, furthermore, with a healthier focus on the European security of supply related to critical raw materials and energy, our customers operating in the mining and infrastructure construction field in the Nordic countries will have a pivotal role to play.

The new geopolitical and energy market situation requires Europe to accelerate the clean energy transition and increase Europe’s energy independence. In 2021, Forcit set out a strategic target of becoming carbon neutral in our operations by 2035.

This is a commitment in line with our ambition to be the industry leader in sustainability, and in 2021 we started to detail a plan with concrete actions needed to reach this goal.

Throughout the pandemic, our key focus has been to safeguard the health of our employees and to keep our operations up and running. More or less simultaneously with the ‒ at least temporarily ‒ improved Covid-19 situation, the dramatic geopolitical situation as a result of the war in Ukraine has intensified our focus on ensuring our supply chain and our ability to continue to serve our customers in a market situation characterised by rapid changes and considerable uncertainties.

SAFETY REMAINS OUR NUMBER ONE PRIORITY

Despite turbulent times, safety always remains our top priority, and we have continued our determined work towards a zero-accident workplace. However, our safety performance did not meet the set target level in 2021 and our accident frequency deteriorated from the record year of 2020. This has further encouraged us to continue the unwavering work under the ForSafe framework, with the motto that each day without accidents needs to be earned, everywhere and every day.

As a key supplier and partner to these industries, we are an important part of this value chain and have therefore a significant responsibility to ensure the continuity of our business, especially during these turbulent times. We are committed to continue to act as a resilient and dependable partner in line with our vision “A Superior Partner for Demanding Operations”.

In addition, the interest in our Defence technology has increased during recent years as a result of the gradual deterioration of the geopolitical environment. We expect the growth to continue for many years to come.

While writing, the surrounding turbulence fuelled by the war in Ukraine is very high, and it is clear that we are heading into another year of great uncertainty. Continuing our dedicated work to be the industry leader in sustainability is now more important than ever. We are committed to not only continuing to deliver our products and services throughout the crisis, but also to taking further steps in sustainable product and services development.

I hope you will find this year’s sustainability report insightful and interesting.

Joakim Westerlund CEO FORCIT Group

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FORCIT Group’s mission is to enable safe and sustainable society.

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PROFITABILITY: THE FINANCIAL PERFORMANCE OF 2021 GENERAL

FORCIT Group’s operations developed overall positively in 2021, despite the supply chain challenges related to geopolitics and the pandemic. The turnover increased by 18%. The rising revenues contributed positively to the profit, while at the same time,

The development of turnover in 2018‒2021

TURNOVER

rising raw material costs contributed negatively. In 2021, FORCIT Group acquired the Portuguese software company O-Pitblast, a significant player within mining optimisation and especially blasting optimisation.

FORCIT Group’s operations developed overall positively in 2021. All business units grew in comparison to the previous year, the group turnover increasing by 18 % to EUR 150.4 million (127.4).

FORCIT Explosives business unit’s turnover grew in 2021 by 21%, FORCIT Consulting business unit’s by 7% and the Defence business unit by 3%.

FORCIT Group’s turnover developed positively on all our main markets: Finland +15%, Sweden +17% and Norway +32%.

OPERATING PROFITS

FORCIT Group’s operating profit (EBIT) ended up on the same level as in 2020.

The profitability increased with rising revenues, while it was at the same time significantly negatively impacted by rising raw material costs.

SUSTAINABLE PROFITABLE GROWTH

Financial sustainability is based upon long-term financial targets and perspective on financial decisions and actions. The targets address profitable growth and sustainable capital structure, resulting in stable economic value for our owners.

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In recent years, Forcit has invested significantly in expanding its operations in the Nordic countries and in acquiring and maintaining modern equipment.

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PEOPLE: DEVELOPING SAFETY IS A LONG-TERM PROCESS The annual employee well-being survey shows good results regarding sustainability issues, confirming that the overall trend is positive. This encourages us to continue the good work and take further actions and co-operate even more closely with our staff on these matters.

POSITIVE CO-OPERATION

2021 was still, to a high degree, characterised by Covid-19 restrictions. Our top priority was to maintain our production capability and to protect our employees’ health. As a result of this, educational sessions and inspections were postponed or conducted virtually. Despite the difficulties regarding travel, we managed to complete more than one hundred safety-related inspections and internal safety audits, as well as fourteen training sessions related to rescue operations in catastrophic accidents. Forcit leadership team members participated in and organised some of the internal safety audits, showing their commitment to safety issues.

Overall, the coronavirus pandemic put a lot of constraint on our staff and operations. While implementation of remote work for large groups of employees was easier than assumed, it also caused new challenges, such as ergonomic aspects related to home offices, audio digital meetings practices, etc. A lot of effort was put into developing efficient communication and interaction tools and local restrictions helping the staff to stay safe.

FORCIT Group has had a strong period of growth during recent years. In 2021, three big construction projects were completed in a successful way without accidents. Those projects were realised in Trondheim (Norway), Rya (Sweden) and Kevitsa Mine (Finland), increasing our volumes and enabling further business growth. In the beginning of the year, the acquisition of the Portuguese software company O-Pitblast gave us a valuable possibility to develop our safety routines and instructions in a totally different work environment and culture.

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FORCIT GROUP: PEOPLE IN FIGURES 2021 (2020 in parentheses)

* LTIF, Lost time injuries, includes all on-the-job injuries that require a person to stay away from work more than 24 hours or which result in death or permanent disability. LTIF number shows how many of lost time injuries occur in a workplace per 1 million hours worked.

** TRIF, Total recordable injuries, is a measure that encompasses a ​ ll fatalities, lost time injury, cases of substitute work due to ​injury and medical treatment cases by medical professionals. TRIF does not include any first aid injuries. TRIF number shows how many injuries occur in a workplace per 1 million hours worked.

521 (468)

Total amount of employees

18% / 82% (18% / 82%)

TRIF** 15 (12.1)

Age structure: < 25 25-34 35-44 45-54 > 55

4% 26% 27% 28% 15%

(3%) (24%) (29%) (30%) (14%)

Evaluation for occupational safety by employees 8.8/10 (8.7/10)

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LTIF* 7 (1.3)

Sick leave 7.4 (8.1) days/employee

ForSafe reports 784 (626)

Sick leave 2.9 % (3.2%)

First actions in 2.5 (6) days

10 WE NEED TO KEEP UP THE GOOD WORK RELATED TO SAFETY

The overall activity regarding safety observations was high (increased by 25% since 2020), but the result in terms of incidents or accidents was not satisfactory. Six accidents resulting in sick leave (LTIF) were reported in 2021.

When it comes to leading indicators, we focus on carrying out the first corrective actions to reported safety deviations (ForSafe reports) within 14 days.

This encourages people to report observations or near misses when they see that things are progressing.

The lessons learnt meetings were held after every accident, but without being able to identify a common root cause. Focusing on work safety and accident prevention continues by developing work risk assessments on a daily basis. By encouraging staff to make proactive safety observations as a natural part of their daily work and by discussing attitudes and behaviours related to safety, we aim to further strengthen our safety culture.

Forcit’s leadership team members were involved in internal safety audits.

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11 SAFETY STOP CAMPAIGN

As we saw a rising number of accidents resulting in injuries and sick leaves, especially in Finland, we carried out a Safety Stop campaign in FORCIT Explosives business unit. This included training sessions as well as practical guiding of employees on how to make proactive risk observations and share lessons learnt. We have also focused on the further development of our work risk assessment routines, which are scheduled for responsible persons. The sustainability function has also an important role in spreading information and good practices when it comes to safety. All near misses have been investigated in detail and corrective actions have been carried out.

Risk assesment, personal protective equipment and safety equipment form the basis of safe work.

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e you ac for

ETY F A S P STO

t!

In 2021, the number of overall sick leaves was even lower than the previous year, which reflects the good working conditions, work well-being and preventive health care, as well as wise policies during the pandemic.

Think be

We have challenged ourselves and have set an even more ambitious safety target for 2022. Our Safety Roadmap, which consists of a systematic approach on the overall safety topics, will guide us when taking decisions on preventive technical investments and help us to focus on the most relevant actions.

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Rescue training at the Hanko factory site in September 2021.

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CASE EXAMPLE: CENTRALISED BLASTING IN KEMI MINE

Forcit co-operates with a supplier of electronic detonators and the Kemi mine to implement a Centralised Blasting System (CBS) to ensure safer and more economical blasting. The system enables controlled implementation of blasts using the Wi-Fi network of the mine.

Operators do not need to be present in the mine tunnel during the blasting, as each separate blast is fired from a centralised blasting location in a controlled manner.

Centralised blasting system enables the ignition of blast rounds at the same explosion time frame regardless of the type of detonators used in the charging. Only one electronic detonator is needed in each blasting round. The system also enables two-way communication with all blast rounds up to the moment they are blasted, increasing quality and safety. It is possible to implement the whole procedure with just a push of a button if all blast rounds are verified and charged to be ready for blasting. The actual firing of the blast can be done either manually or automatically blast-by-blast at pre-agreed intervals.

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In addition, the CBS system informs if there is a faulty detonator in a round while performing the test phase after charging. By doing this, the risk of undetonated detonators or explosives in blasted rock piles is minimised. The system also programmes and initiates every detonator connected to the firing line, even if for some reason a single detonator has not been programmed. In case of a major fault in a blast, the system will not give permission to fire. Overall, with the centralised blasting system the risks related to blasting are reduced. In 2021, more than 2,000 remote blasts were conducted successfully.

One of Forcit’s latest investment and construction projects, Rya service station in Sweden.

CASE EXAMPLE: ONGOING WORK ON SECURITY IN EXPLOSIVES STORAGES

Several new investments have been made in 2021, further strengthening the security of storage facilities. Most of these relate to our operations in Sweden and comprise for example new types of camera and surveillance systems .

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PLANET: SUSTAINABILITY IS EVERYONE’S BUSINESS In our previous Sustainability report, the focus was on defining our values and targets and evaluating emissions. In this report, we describe the progress and report on some key projects related to more sustainable products and services. In 2021, we con-

centrated on the already ongoing development projects, thus the percentage of new green investments remained the same as in 2020. In addition, we have put a lot of effort to calculating our CO2 emissions and to defining reduction activities.

ENGAGING STAFF TO SUSTAINABILITY ISSUES

In 2021, we launched sustainability targets and strategic values internally, visiting different sites in the countries where we operate. We arranged country-specific work groups and appointed local representatives to promote sustainability co-operation.

The meetings were held under the theme “Sustainability Workshop Round”. After presenting the strategic targets and focus areas, the discussions led to many positive findings and good practices regarding both possibilities to reduce local emissions as well as other good suggestions within sustainable business practices in general. As travelling has become easier, and meeting people has become safer, this work will be completed in 2022.

The R&D department of FORCIT Explosives focuses strongly on material recycling, plastics minimisation, and new raw materials as an integrated part of the total CO2 reduction plan.

Sustainability workshop round in Gevingåsen.

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FORCIT GROUP: PLANET IN FIGURES (2020 in parentheses)

DID YOU KNOW? COMPENSATION IS A WAY TO INVEST IN PROJECTS TO BIND CARBON DIOXIDE FROM THE ATMOSPHERE, EQUIVALENT TO THE COMPANY’S EMISSIONS

As today’s ADR regulations prohibit electrical drive motor technology for transportation of explosives, FORCIT Group offers customers a possibility to compensate logistics emissions. The carefully chosen projects are certified and verified to permanently add CO2 binding capacity. We have evaluated the reliability of compensation models and suppliers and made a compensation contract, giving our customers the possibility to choose compensated transportations.

FORCIT Group cooperates with verified and sertified actors.

Energy 17,100 MWh (15,000 MWh)

Total Waste 650 ton (860 ton)

Recycled & Energy Waste 26% (28%)

Evaluation for Responsible & Sustainable Development 8,1/10 (8,1/10)

Electricity 7,800 MWh (7,000 MWh)

Renewable Electricity* 68 % (79%)

Fuel Data 1,080,000 l (780,000 l)

Total Energy 169 kWh/ton (186 kWh/ton)

Heating Oil 21,000 l (19,000 l) Product Transportations 3,100,000 km** (1,800,000 km)

* Please note that the figures shown for 2021 are calculated for Renewable Energy, which includes energy sources such as wind, solar, hydro, biomass and geothermal energy. In 2020 nuclear energy was, however, included in the figures for Explosives Sweden. When renewable and nuclear energy are combined, the percentage for Carbon-Free Electricity is 89% and Carbon-Free Energy 77% for 2021. ** Does not include personal cars.

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Renewable Energy* 67% (73%)

16 CARBON FOOTPRINT

There are some challenges in defining the carbon footprint on group level, mostly related to collection and reliability of data sources, as well as to defining which data is most relevant to our total footprint.

Scope 1 Carbon Footprint Contributors

Scope 2 Carbon Footprint Contributors

Adapting a step-by-step approach on this challenge, we conducted the first evaluation and carbon footprint calculation only for Oy Forcit Ab, which presents the mother company’s functions in Finland, including explosive manufacturing, offices, and services. We aim at expanding the carbon footprint calculation to group level operations during 2022.

This preliminary study clearly shows the need for more reliable data as a basis for future investments and decisions on the allocation of resources. Developing the data collection process is therefore a key focus area for the coming year, as well as establishing co-operation and partnerships with customers, suppliers and partners regarding sustainability.

RESULTS OF THE FIRST STUDY

When talking about CO2 scopes, we have committed to being CO2 neutral at the latest by the year 2035 within Scope 1 and 2.

Scope 1 comprises direct emissions from operations at our own sites and services (fuel consumption in facilities and vehicles) as well as emissions to air when producing or destroying explosives at the site.

In our operations, it is obvious that logistics stands for the biggest part of our direct emissions.

Scope 2 summarises the CO2 emissions of purchased electricity and energy (heating, cooling) needed at sites, facilities and processes. District heating is used at the Hanko and Vihtavuori factories.

The results show the importance of shifting to green energy and of focusing on energy-saving activities and technologies. Renewable electricity is utilised at all sites where we have had a possibility to influence the origin and the contracts. In coming years, we will investigate possibilities to shift to green energy in all our locations.

Scope 3 emissions usually play a major role in footprint calculations and represent up to 95% of the total industrial business footprint. Also Forcit’s biggest carbon footprint emission sources originate from Scope 3 emissions.

Ammonium nitrate ‒ the main raw material in explosives production ‒ has the biggest negative impact and accounts for approximately 80% of our total Scope 3 emissions.

While production of raw materials causes the biggest footprint, also the usage of our products (at blasting sites) is clearly seen in our calculation results.

The results clearly show the great influence of Scope 3 emissions along the value chain, urging us to develop co-operation and partnerships to reduce these. Logistics and fuels are the third biggest CO2 source in the Scope 3 data.

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CARBON FOOTPRINT SCOPES 17

SCOPE 3

SCOPE 2 Production of electricity Production of heat/steam/cooling

Purchased goods and services

SCOPE 1 Use of leased and owned company vehicles Stationary combustion: Energy production for heating and processes Emissions of the on-site waste handling

Emissions of fuel production and losses in transformation and distribution of district heating and electricity Upstream transportation and distribution

Waste generated in operations

Use of sold products

EoL treatment of sold products * Employee commuting

Business travel

In the carbon footprint calculations, emissions are categorised as shown in the picture above.

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Downstream transportation and distribution

* End of life cycle emissions are partly included in figures at scope 1 & 3.

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CASE EXAMPLE: ENERGY SAVING

BY OPTIMISATION OF VENTILATION AND HEATING AT THE HANKO FACTORY

To reduce energy usage at the Forcit factory in Hanko, Finland, we invested in automation systems, that allow us to follow the electricity usage in real time and control the need for heating and ventilation. Dynamite production consumes a lot of energy, as the nitrogen fumes need to be ventilated out of the working area. In summer, we need energy both during daytime to control the humidity at production sites, and at night for warming.

The new automated system minimises energy Heating and heat recovery are adjusted automatically. consumption by using lights. When lights are in the “off” position, the system automatically changes the warming and ventilation parameters to “away from home” mode. The flow of ventilation is minimised when there is no production. The parameters are CASE EXAMPLE: WASTE MINIMISATION preset for each building separately according to the features of the building, chemicals, and processes.

The consumption data shows up to a 40% deForcit has a strong focus on reducing waste, and in crease in energy consumption in buildings which are 2021 the development has been very positive. The equipped with this control system. amount of waste in our production continued to decrease on the company level, and in some parts zero-waste level was accomplished. The increased emphasis on quality control of raw materials, production processes, and end products starts to pay back in regard to both emissions and profitability.

In addition to waste reduction activities, an innovative solution where a part of our emulsion waste stream is recycled as raw material for a totally different field of business was implemented together with a new partner. This has a direct impact on waste volumes going to the burning process, thus reducing our greenhouse gas emissions.

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19 DID YOU KNOW?

In addition to the above-mentioned recycling initiative, we have recently launched a project in co-operation with Business Finland aimed at developing processes to recycle our explosives wastes to raw materials.

VEHICLE TRACKING AND REMOTE READING OF DIGITAL TACHOGRAPHS

Forcit has invested in a new vehicle tracking system, which enables us to see the online data and exact location of all Forcit’s vehicles in real time. All digital tachographs and data analysis can be seen remotely. Checking the route and speed helps drivers in precise driving and accuracy, encouraging economical driving.

The system also gives online data on fuel consumption.

In the manufacturing of emulsion explosives, small amounts of non-usable emulsion containing ammonium nitrate and oil blend is formed. This emulsion has potential to be used as a secondary raw material but currently the non-usable emulsion is disposed of for safety reasons by burning. Recycling of these by-products in the emulsion explosives manufacturing process or for other industries would greatly minimise the greenhouse gases.

Greenhouse gas emissions would be reduced especially because of the reduced burning, but also with reduced waste transports, virgin raw material manufacturing and transportation. There is no commercial method for decomposition of emulsion explosives and recycling of valuables. For ammonium nitrate, the goal is to achieve a 90% recycling rate.

In addition, the project also aims to find an appropriate concept for recycling the oil phase, which is the other main component in emulsion.

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View from the interface of the vehicle tracking system.

Through this tracking, we are developing our driving culture to a more sustainable and economical direction by monitoring speed, idling, coasting, acceleration, and braking.

DID YOU KNOW? A4 TOOL GIVES MORE ACCURATE DATA OF DELIVERIES

It is now possible to evaluate site-specific emissions of the deliveries. In addition to verified Environmental Product Declarations (EPD), a calculation tool for evaluating site specific logistics emissions has been developed. The calculation tool registers the transported volumes and load size, the engines, the fuels, roads, and the return of the goods.

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Technological University (LTU) in Sweden, followed by an evaluation of the results and further development of the formula.

Forcit has initiated a project for developing greener explosives, aimed at replacing ammonium nitrate as raw material in bulk explosives with hydrogen peroxide, leading to less nitrogen emissions in blasted rock and later in surface and ground waters.

Even though the target is to innovate a nitrogen free option for mining explosives, the safety of the product is still the number one priority. Hydrogen peroxide is an aggressive chemical requiring a high level of handling safety procedures in many ways, which are being developed and planned along with the project.

Today, there are strict restrictions for water-soluble nitrogen emissions in the environmental permits of mines, leading to optimisation, alternative explosives, or denitrification processes.

The Kemiitti HP explosive does not contain nitrogen.

In the ground, it decomposes into oxygen and water and other biodegradable components. Ammonium nitrate explosives always produce some nitrogen oxides in blast fumes, which must be considered in occupational safety routines. Hydrogen peroxide explosives do not form any nitrogen oxides, which will lead to shorter re-entry time in underground blasting, improving the efficiency in mining and tunnelling operations.

In the next phases we will get CE certification and, after this, permission from the authorities for testing. A pilot scale production and loading unit is under construction and we plan to conduct the first field scale tests in 2022. The next steps consist of blast fume analysis and stability testing with Luleå

As hydrogen would be produced by natural gas today, the carbon footprint of this production method would still be considerable, which is the case also with ammonium nitrate. But provided that the electricity required for hydrogen production would originate from green energy sources, also the total CO2 footprint from explosives production could be very low. Obviously, the origin of the energy is a big challenge for our societies and involves many other sectors.

Testing of nitrate-free emulsion explosive.

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EXPLOSIVES OPERATIONS: NORWAY 2021 NORWAY IN FIGURES (2020 in parentheses)

RODSKJÆR Turnover 17.5 M€ (13.5 M€)

Employees 37 (36)

Sick leave 7.5% (6.1%)

Total fuel 210,000 l

AUSTVIKA

GEVINGÅSEN

Production 6,700 ton (6,000 ton)

Total driven 790,000 km (530,000 km)

Waste 26 ton (50 ton)

Recycled & energy waste 34% (18%)

SVELGEN

BERGEN

HARTMANN

JELSA Sustainability in short

ForSafe reports

238

(83)

Safety observation Near Miss Accident no TRI TRI Authority notice

92.0% 3.4% 0.4% 1.3% 2.9%

(80.7%) (9.6%) (6.0%) (3.6%) (0.0%)

Energy total 1,100 MWh (1,300 MWh)

Renewable energy 100% (100%)

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EXPLOSIVES OPERATIONS: FINLAND 2021 FINLAND IN FIGURES (2020 in parentheses)

KEVITSA

Turnover 56.5 M€ (43 M€)

Employees 254 (197)

Sick leave 2.1% (2.8%)

Production 49,000 ton (33,000 ton)

Total driven 1,200,000 km (1,000,000 km)

Energy total 14,000 MWh (12,000 MWh)

Renewable energy 66% (71%)

Carbon-free energy 74%

KEMI Total fuel 470,000 l (390,000 l)

Heating oil 21,000 l (19,000 l)

LAPUA VIHTAVUORI URJALA TUUSULA

ForSafe reports

317

Safety observation 71.6% Near Miss 16.7% Accident no TRI 6.6% TRI 2.8% Authority notice 0.6%

(300) (69.3%) (15.3%) (13.7%) (1.3%) (0.3%)

Water 190 t m³ (170 t m³)

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Recycled & energy waste 31% (35%)

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EXPLOSIVES OPERATIONS: SWEDEN 2021 SWEDEN IN FIGURES (2020 in parentheses) PAJALA AITIK Turnover 49 M€ (41 M€)

Employees 82 (74)

Sick leave 3.5% (3.1%)

Total fuel 400,000 l (260,000 l)

Waste 150 ton (240 ton)

Production 45,000 ton (40,000 ton)

LYCKSELE

Total driven 1,100,000 km (280,000 km)

Recycled & energy waste 10% (15% )

ENKÖPING KARLSKOGA ForSafe reports

RYA

150

Safety observation 70.7% Near Miss 17.3% Accident no TRI 9.3% TRI 0.7% Authority notice 0.7%

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(206) (61.7%) (28.6%) (8.3%) (1.0%) (0.5%)

Energy total 1,900 MWh (1,700 MWh)

Renewable energy 59%

Carbon-free energy 90% (69%)

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DIGITALISATION AS A PART OF SUSTAINABILITY TARGETS Digitalisation is one of the biggest drivers of change in the industrial sector, extending to the productivity and sustainability performance of drilling and blasting operations as well. In FORCIT Group, we have strong focus on developing a wider portfolio of digital services and products. Recent innovations and R&D drivers have concentrated on questions of

how we can serve our customers to achieve their sustainability targets.

FORCIT Group provides digital tools like O-PitSurface and O-Pitdev, and those can be used in many ways to reduce the environmental impact of drilling and blasting operations. The efforts to optimise

the blasting results using digital products can have multiple positive implications on the sustainability performance of downstream processes.

OPTIMISATION IS KEY FOR SUSTAINABILITY

By optimising the fragmentation curve, muck pile shape, and diggability, it is possible to influence the fuel and electricity consumption of loading and thus decrease carbon footprint. At the same time, the need for secondary breakage is also reduced.

Digital 3D scanning of the blasted face together with hole deviation measurements can be used to adapt the blast design to field conditions and ensure the quality of the operation and the results. The picture below presents a typical situation encountered on the bench, where two holes are extremely close to each other as a result of drilling inaccuracies. From a sustainability point of view, this phenomenon has some clear risks, such as malfunctions of the explosive, which may lead to unproper fragmentation and increased emissions to the air and water.

Hole deviation control and burden relief analysis with O-PitSurface blast design software.

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INNOVATIONS ARE NEEDED AND ADAPTED INTO PRACTICES

According to several studies, 5‒20 % of used explosives will not follow ideal detonation behaviour in traditional operations, due to reasons related drilling, blasting and geology. As described earlier, this affects the carbon footprint of the drilling and

blasting operations. By utilising digital optimisation tools, it is possible to minimise the number of poorly detonating blastholes and amount of undetonated explosive. This improves sustainability performance across all its dimensions (i.e., environment, safety and profitability) and overall efficiency of the production, which will lead to cost savings.

As a new innovation Forcit – O-Pitblast is planning to launch a tool (O-PitEco) to calculate, evaluate and track CO2 emissions of the drilling and blasting operation on each site and on each blast. This tool will also give an opportunity to evaluate amounts of waste and theoretical post blast fumes (NOx and CO2) in drilling and blasting. This tool provides practical approach to choose the best solution for both blasting execution and for the nature.

DID YOU KNOW?

O-PITBLAST • • •

• O-PitEco for the carbon footprint calculations in a drilling and plasting operations.

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Established in 2016 in Porto, Portugal +20 employees with background in mathematics, programming, designing, and engineering Develops design and measuring technologies and tailor-made solutions for optimising drilling and blasting operations Products are in use in every continent; the biggest market areas are South America, Nordic countries, and Australia

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FORCIT CONSULTING – ENABLING SUSTAINABLE SOCIETIES CASE EXAMPLE: REDUCING RISKS FROM EXCESSIVE NOICE

Acoustics is everything related to sound, but all unwanted sound is noise. Every day, we are surrounded by background noise ‒ most of it such that we no longer think about it. Long-term exposure to excessive noise can cause serious health problems, affecting people’s everyday life and well-being. To be able to control the noise levels in projects related to city planning (construction of houses, tunnels, roads. etc.) is therefore important in order to reduce excessive and harmful noise levels.

This is why noise investigations are today an integrated part of almost all bigger construction projects and noise levels are also regulated in legislation. FORCIT Consulting is involved in many big infrastructure projects, helping customers to keep track of their noise levels and reduce them as much as possible. Some of these projects are carried out close to very sensitive environments, where excessive noise and vibration could potentially lead to serious disturbances – such as hospitals or laboratories – but there are also often projects where extraordinary acoustics is a prerequisite for the object, good example is a church.

Excessive noise from different construction activities is today subject to regulations regarding noise levels. But the human ear is complicated. For example, a sudden shift in noise level is perceived as much worse than constant higher levels.

Noise and acoustics consultants at Forcit raise consciousness about noise as a phenomenon and how excessive and harmful noise can be reduced.

DID YOU KNOW?

A decibel is the unit used to measure the intensity of a sound, whereas Hertz explains the frequency. The human ear can hear from 20 to 20000 Hertz. The highest sound that exists is 194 decibels. A quiet place is under 30 decibels – and is a legal requirement for bedrooms in many countries.

Negative health effects from excessive noise range from concentration difficulties and a general feeling of inconvenience to hearing loss, insomnia, and long-term negative health effects. Psychoacoustics is a branch of psychology concerned with the perception of sound and its physiological effects.

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CONSULTING OPERATIONS IN THE NORDICS 2021 CONSULTING IN FIGURES (2020 in parentheses)

OSLO

Turnover 16.9 M€ (16.1 M€)

Employees 125 (122)

Sick leave 2.8% (2.4%)

Batteries 44,000 pcs (17,000 pcs)

Total driven 1,600,000 km (1,650,000 km)

Paper 175,000 pcs (200,000 pcs)

Energy total 380 MWh (375 MWh)

Renewable Energy 61% (60%)

HELSINKI STOCKHOLM

ForSafe reports

79

Safety observation 49% Near Miss 38% Accident no TRI 11% TRI 1% Authority notice 0%

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(37) (3%) (24%) (29%) (30%) (14%)

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CASE EXAMPLE: ACOUSTIC CONTROL IN A SENSITIVE INDUSTRIAL CULTURE BUILDING FOR KOSTA BODA

An example of a fascinating project is Kosta Boda, the famous glass industry in Sweden with roots going back to 1742. The factory is today the oldest glass production factory in Sweden, with a strong focus on handicraft techniques. The factory allows visitors to study the special environment where the glass is produced.

The purpose of the project was to map the work environment for glass production and to find suitable noise reduction activities ‒ while not substantially affecting the cultural value of the building. The outcome of the noise model was excellent, leading to lower noise levels and, thus, a better work environment for people working in the building.

Blasting in a tunnel in Stockholm.

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DIGITALISATION

Along with urbanisation, sustainable city planning is a growing challenge for city planners.

FORCIT Consulting is involved in many projects for new residential areas, where keeping track of vibrations during the project is very important.

After implementation of a digital cloud-based solution, our inspectors can immediately keep track of the vibration measurements and document any damage directly on their mobile device by marking it easily in an illustration on the device. Also, they save a lot of time as they do not need any transport to the office and as documentation is immediately available for both the Forcit project team and the customer. Also reusing material from previous inspections in earlier stages of a project is easy and saves time and money.

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SUSTAINABLE DEVELOPMENT AND DEFENCE TECHNOLOGY Today, Forcit is a global supplier operating as a prime contractor for our own systems and as a partner for other international system providers within defence technology. FORCIT Defence is one of the leading suppliers of Insensitive Munition Defence Systems and delivers key capabilities to Finland and can also export technology and capabilities to countries approved by the Finnish government.

The product portfolio ranges from Land and Naval Systems to Breaching and Demolition Solutions and Warheads Design and Development.

Interest in FORCIT Defence’s technologies has increased during recent years as a result of the general deterioration of the geopolitical environment.

This development is expected to continue due to the current European security situation.

Our philosophy within Defence is focused on developing insensitive munitions technology, which is as safe as possible to use and activate, minimising the risk of accidents and third-party damage. All issues related to defence technology are subject to strict national regulations and the Finnish government decides upon the list of countries to which Finnish companies are allowed to export defence technology and products. In order to maintain our position as a trusted partner within the defence field, it is necessary to conduct our business in strict accordance with current export control laws, regulations and authorisations.

National legislation and decisions therefore form the basis for all our activities regarding export and defence technology. We will always, without exception, comply with export control laws and regulations applicable to our business. In addition to complying with all applicable laws and regulations of the countries or territories where we operate, our defence products are fully compliant with international regulations and treaties (e.g., Ottawa, Geneva).

The operations of the Defense business unit are managed from Forcit’s head office in Hanko, Finland.

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CODE OF CONDUCT / MARKET AND BUSINESS ETHICS FORCIT CODE OF CONDUCT

• Non-discriminatory treatment of employees • Occupational safety and health • Respecting human rights • Anti-corruption and bribery • Trade restrictions • Avoiding conflicts of interest • Competition law • Confidentiality

Our policy is to conduct all our business in an honest and ethical way, as well as to implement trans-parency and traceability in business operations and practices. The Forcit Code of Conduct addresses market and business ethics issues and obligates both employees and partners and suppliers to respect this policy. The Code of Conduct is important to follow in Forcit generally, but especially important for the Defence business unit and all their business transactions and relationships.

In all our operations, we comply with current legislation. Applicable legislation includes use of labour and employment contracts, occupational safety, environmental protection, anti-corruption and bribery, competition, and product safety as well as laws related to chemical and explosives safety.

In addition to the regulations of licensing authorities, Forcit has implemented internal guidelines and assesses each potential export case thoroughly.

Forcit is committed to observing and respecting universal human rights as defined in the United Nations (UN) Universal Declaration of Human Rights and other international human rights agreements and to promoting the realisation of universal human rights.

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DID YOU KNOW? NOTIFICATION CHANNEL

Forcit has a notification channel where it is possible to report any suspicion of a crime, misconduct, or other activity contrary to our company values. The notification can be submitted anonymously and also discussed anonymously with the notification handler.

The channel can be found at https://forcitgroup.ilmoituskanava.fi/#/?lang=en.

FORCIT Group >> forcitgroup.com

Published: 19.5.2022