ESG rapport Pronamic 2024

ESG REPORT

2024

Pronamic ApS is a small company located in Skjern, West Jutland. Since its founding in 1984, the company has specialized in developing and producing measurement devices for rainwater and irrigation. Pronamic has manufactured more than 350,000 water measuring units for various customers globally, exporting to 65 countries worldwide. The products are delivered with the highest quality and reliability for customers. Pronamic has a strong local presence and collaborates with subcontractors in the surrounding area. This helps ensure security and flexibility in production. The company focuses on maintaining its core business while exploring growth opportunities, always with an emphasis on preserving its core values.

If you would like to learn more about our ESG report, you are more than welcome to contact CEO and co-owner Søren Ostersen directly at mobile +45 2055 4420. You can also find our ESG report online at: www.pronamic.com

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5 Preface 7 Pronamic ApS 8 Vision, Mission & Values 11 Sustainable Development Goals 12 Environmental 15 Social 16 Governance 20 ESG Key Figures 23 ESG Goals 3

In Pronamic, we are proud to deliver first-class solutions and services to our customers every day, – Søren Kjær Ostersen, CEO and co-owner

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PREFACE At Pronamic, we take pride in delivering firstclass solutions and services to our customers every day. Quality is an integral part of our company culture, and we continuously strive to maintain and improve our high standards through skilled employees and collaboration with reliable partners. It is our commitment to ensure the continued healthy development of the company.

Sustainability is a central element of our strategy. We are engaged in ESG initiatives and work with environmental, social, and governance aspects to promote a more responsible and sustainable approach. With this report, we hope to provide an in-depth insight into our efforts in these areas. The report will not only highlight our strengths but also uncover areas with potential for improvement – this is part of our growth.

We are dedicated to developing Pronamic with a greater focus on sustainability and innovation. We believe that this approach will ensure our long-term success and create value for our customers and partners. We thank everyone contributing to our journey, and we

Søren Kjær Ostersen CEO and co-owner

look forward to continuing this development together.

The report covers the financial year 2024, spanning from 2024-01-01 to 2024-12-31. An integral part of our ESG initiatives is our commitment to the Sustainable Development Goals (SDGs), particularly those that best reflect our core values and focus areas. We have selected the following three Sustainable Development Goals to guide our efforts: SDG 8 Decent Work and Economic Growth SDG 11 Sustainable Cities and Communities SDG 12 Responsible Consumption and Production We hope that our first ESG report will be received with great interest and contribute to a deeper understanding of our commitment to sustainability and responsibility. We look forward to sharing our progress and insights on this important journey toward a more sustainable future.

Jonas Kruse Søltoft CTO and co-owner

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Pronamic ApS is a small company with strong local roots in Skjern, West Jutland. Pronamic has built a solid foundation for the development and production of measurement devices for rainwater and irrigation, supplying customers in 65 countries worldwide. The company was founded in 1984 and has since produced more than 350,000 water measuring units for customers across the globe.

durability of our products, the demand for our measuring units continues to grow as rainwater becomes an increasingly valuable resource for our customers. The need for accurate rainfall data is rising.

At the heart of it all is our small measuring unit. In terms of size, it can be compared to the measuring spoon often found in flour and sugar containers at home. The installed unit fills with rainwater and tilts when full. A microprocessor connected by the customer registers this movement and counts how many times the spoon tips. Many of our customers rely on this data to document the amount of rainfall their fields receive. This knowledge enables them to determine the precise amount of irrigation needed to achieve optimal water levels for their crops. Our product is an intelligent measuring device that creates value for our customers every day.

As an essential cornerstone of both our company and product, we place great importance on sourcing as much as possible locally. For example, the electronics are assembled in Herning, the plastic spoon is molded in Ans, the magnets are supplied by a company in Hobro, and all brackets are sourced from Lambæk in Lem. By working with suppliers in our local area, we ensure security and flexibility in production.

The oldest one we have received back for service was manufactured in 1999, demonstrating the product’s long lifespan. Despite the

Sustainability is also about creating a product that lasts for many years” – Søren Kjær Ostersen, CEO and co-owner.

We are looking at opportunities for further growth, but we want to expand at a pace that preserves our core values. In a few years, Pronamic will have more employees than today, though we do not expect a significant increase — just a steady, sustainable expansion.

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VISION, MISSION & VALUES VISION

We aim to be the leading provider of intelligent water measurement solutions worldwide. We want to be recognized for our expertise in precision measurement.

A continued focus on innovation and quality will drive our ongoing development and expand our global reach.

MISSION

At Pronamic, we develop and manufacture high-quality, innovative measurement solutions for rainwater and irrigation, helping our customers optimize their water consumption. We strive to deliver reliable products that create value for our customers and contribute to the responsible use of water resources on a global scale.

VALUES Quality We are committed to delivering products and services of the highest quality and reliability to ensure customer satisfaction and trust.

Local Commitment We value our strong ties to the local community and collaborate with local subcontractors to ensure flexibility and security in production.

Innovation We continuously seek improvements and advancements in our technologies and processes to remain at the forefront of our industry.

Responsibility We take responsibility for the lifespan and quality of our products, as well as our commitment to ensuring that our solutions provide customers with the best results and long-term value.

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Full customer customization is a central focus area for Pronamic,

– Jonas Kruse Søltoft, CTO and co-owner

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SUSTAINABLE DEVELOPMENT GOALS SDG 8 – DECENT WORK AND ECONOMIC GROWTH We are committed to creating a workplace that promotes both decent jobs and economic growth. Our focus on community, inclusivity, and integrity forms the foundation of our company culture, ensuring that all employees feel valued and part of a strong team. Diversity strengthens our workforce, fostering knowledge sharing and innovation.

SDG 11 – SUSTAINABLE CITIES AND COMMUNITIES At Pronamic, we highly value our collaboration with local suppliers, as it ensures security, maintains quality, and provides flexibility in our production. We have high quality standards, and we have chosen to use local suppliers as it creates greater flexibility and better quality.

SDG 12 – RESPONSIBLE CONSUMPTION AND PRODUCTION At Pronamic, we actively work to promote sustainable production and responsible consumption. We are committed to reducing our environmental footprint and integrating environmental considerations into our business – from product development to daily operations.

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E - ENVIRONMENTAL At Pronamic, we have a strong commitment to reducing our climate footprint and promoting sustainable solutions. Our approach to climate and the environment is integrated into everything we do – from product development to daily operations. The total energy consumption for 2024 was recorded at 5.95 MWh, equivalent to 1.17 MWh per employee.

We ensure quality and durability in our materials. Our products are designed to last for many years, using materials such as UV-resistant ASA plastic and cables with an expected lifespan of up to 20 years in outdoor environments. High-quality stainless steel screws further emphasize our focus on longevity and robustness.

Green Action Plan To support traceability and life cycle analysis (LCA), we integrate QR codes on our products.

This is the first step in providing customers with deeper insights into the environmental impact of our products throughout their life cycle. We will continue to develop our LCA efforts, as it provides valuable insights for customers regarding the product’s environmental footprint.

We prioritize local partnerships and work with

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local suppliers whenever possible to reduce transport distances and support Danish businesses. The components for our main products come from suppliers in cities such as Herning, Ans, and Esbjerg. We also optimize the packaging of our measuring devices, ensuring they take up less space during transport.

For example, we can pack 20 Professional Rain Gauges into a single box, minimizing space requirements and transport costs.

Recycling and reuse play a key role in our operations. We use refurbished equipment where it makes sense – everything from IT equipment and workbenches to kitchen appliances – helping us reduce waste and resource consumption.

Our facility is shared with other businesses, and we actively work to minimize energy consumption in collaboration with them. The lighting in our section of the building has been upgraded to energy-efficient LED bulbs, and heating comes from a local district heating plant, where over 93% of the energy is sourced from renewable sources. Additionally, we have strict procedures to turn off machines, lights, and other equipment outside working hours.

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S - SOCIAL At Pronamic, our core focus is our team. The right combination of skills and competencies, along with workplace flexibility, is crucial. Additionally, maintaining strong local partnerships is an important part of our business.

Strong Local Collaboration Collaboration with local suppliers is a key part of our value creation. It ensures high quality and reliable deliveries, providing security throughout the entire process. In the past, we have received product components manufactured abroad that did not meet our quality standards.

For example, our local supply chain includes: • Electronics assembled in Herning • Plastic spoons molded in Ans • Supplier of magnets from Hobro • Brackets sourced from Lambæk in Lem Having suppliers nearby ensures security and flexibility in our production.

As part of our commitment to the local community, we collaborate with a social enterprise, Erhvervsskolen Vestjylland, where various components are assembled, processed, and packaged. The work is of high quality, and we appreciate this partnership. It aligns with our focus on contributing positively to the local community.

A Great Workplace At Pronamic, we are a small team consisting of four salaried employees and four hourly paid workers. Among them, we have two em-

ployees in flex jobs, one on early retirement pension, and one employee of a nationality other than Danish Our sick leave rate in 2024 was 3.03%, which remains below the industry average of 3.80%, despite having a long-term sick leave case during the year. Many of our employees are employed under Section 56 (a Danish labor regulation for employees with chronic illness).

We focus on minimizing absenteeism while preserving workplace flexibility.. Our company culture ensures that everyone supports each other, allowing us to balance special needs while ensuring that all tasks are completed efficiently.

It is a priority to create an environment that accommodates different needs and competencies, allowing work to come together in the best possible way,” – Søren Kjær Ostersen, CEO and co-owner.

When we moved to new production facilities, we focused on improving work conditions and creating room for business development. The Kaizen mindset and workplace safety were major priorities during this transition. We took the opportunity to enhance working conditions further and continuously strive for improvements. We are always mindful of refining work processes and are open to meeting employee needs to ensure they can perform their tasks in the best possible way.

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G - GOVERNANCE Strong, Inclusive, and Supportive Leadership At Pronamic, leadership is not just a function but an approach based on trust, collaboration, and inclusivity. We operate with a flat management structure, fostering proximity and openness in communication. This ensures that the entire team feels heard and engaged in the company.

Inclusivity is a core value in our leadership approach. We have created a workplace where there is room for everyone, regardless of background or individual needs. Every employee contributes valuable skills to our production. It is our leadership responsibility to ensure that tasks are tailored to match employees’ strengths and competencies while also providing flexible working conditions that allow everyone to thrive and perform.

Our leadership philosophy also reflects our commitment to strong collaboration — both internally and externally. Our partnerships with local suppliers and the social enterprise Erhvervsskolen Vestjylland exemplify how we integrate responsible leadership into our daily operations. It’s about creating valuable relationships that benefit the company, employees, and the local community.

By combining a flat structure, inclusivity, and a strong focus on collaboration, we strive to be a company that not only delivers results but also inspires through responsible and inclusive leadership.

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At Pronamic, we view leadership as a responsible and inclusive approach based on trust, collaboration, and openness. By establishing a flat structure and flexible working conditions, we ensure that each employee thrives, contributes, and feels heard – benefiting both the company and the local community – Jonas Kruse Søltoft, CTO and co-owner

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ESG KEY FIGURES

ESG embraces three areas: environmental, social and governance. Below are selected ESG key figures for the period January 1, 2024, to December 31, 2024.

As this is our first ESG report, no key figures from previous periods are included.

Environment

Unit

2024

CO2e emissions within Scope 1

Tonnes CO2e

12,24

CO2e emissions within Scope 2 (electricity declaration)1

Tonnes CO2e

2,64

CO2e emissions within Scope 2 (environmental declaration)

Tonnes CO2e

0,63

CO2e emissions within Scope 3

Tonnes CO2e

5,62

Total CO2e emissions per employee (Scope 1, 2 and 3)

Tonnes CO2e

20,50

CO2e intensity – total CO2e emissions (Scope 1 + 2 + 3) per employee

Tonnes CO2e/ employee

4,02

MWh

5,95

Energy intensity – total energy consumption per employee

MWh/employee

1,17

Share of renewable energy in total energy consumption2

%

n/a

Water consumption3

m3

n/a

Handling of hazardous waste4

Kilo

n/a

Kilo

n/a

Kilo

n/a

Total energy consumption

Handling of recyclable waste5 Incineration and landfill disposal

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1

GHG Protocol: Electricity (Scope 2) is reported using both location-based (environmental declaration, annual average emissions) and market-based (electricity declaration, adjusted for green certificates) methods.

Not specified.

3 Water consumption is unknown due to shared billing for the building, which houses multiple tenants.

4 Hazardous waste is not measured, as it consists of only a small amount (e.g., spray cans), which are disposed of at the local recycling center.

5 Recyclable waste is not measured.

6 Incineration and landfill waste is not measured. Waste is disposed of at the local recycling center or collected with household and office waste.

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Social

Unit

2024

Number of employees1

Count

5,1

Number of apprentices

Count

0

Sick leave (industry average 3,8 %)

%

3,03

Workplace accidents (industry average 0,4 %)

%

0

Employee turnover (industry average 20,9 %)

%

19,61

Employee satisfaction survey3

-

No

Gender diversity in the organization (women)

%

24,51

Gender diversity in other management levels

%

0

Gender pay gap4

-

n/a

Unit

2024

Board of Directors

-

No

Pay gap between CEO and employees1

-

Not measured

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1 2 3 4

Number of employees is calculated as a full-time equivalent (FTE) value.

Sick leave percentage includes all employees, with industry average provided for comparison.

Employee satisfaction surveys were not conducted during this period.

Gender pay gap data is not available (n/a).

Governance

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The pay gap between the CEO and employees is not measured.

Reporting Practices Environmental data has been compiled based on reports from utility providers and suppliers and converted to CO2-eusing emission factors from the Climate Compass, which is based on the Greenhouse Gas Protocol (GHG Protocol). According to the GHG Protocol, electricity (Scope 2) must be reported as both location-based (environmental declaration, annual average emissions) and market-based (electricity declaration, adjusted for green certificates).

Social and governance data has been compiled based on records from payroll and financial systems, as well as other internal records. The data has been benchmarked against Danish Employers’ Association (DA) statistics and follows the guidelines of the Danish Finance Society/CFA Society Denmark, FSR – Danish Auditors, and Nasdaq Copenhagen.

Scope Definition As part of preparing our first ESG report, we have worked to clarify which data was available and which data posed challenges in collection. For this report, we have primarily focused on Scope 1 and 2 data in our climate accounts.

Scope 3 The majority of a company’s total climate footprint typically falls within Scope 3, addressing areas where the company’s influence is limited or indirect. This report has not been verified by an independent third party. While we have ensured that the report is as accurate and reliable as possible, we do not guarantee the accuracy and/or completeness of the data. We therefore disclaim liability for any damages or losses arising from actions taken based on the report.

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ESG GOALS E – ENVIRONMENTAL

We will continue working to ensure traceability for our products. As mentioned, we have started integrating QR codes, marking the beginning of our Life Cycle Assessment (LCA) efforts. We will continue to strengthen this process, as knowledge about a product’s life cycle is crucial for our customers.

We are already focused on energy consumption, but since the company is located in a rented building shared with other businesses, and heating is collectively sourced, we have limited influence over the choice of energy provider. Instead, we prioritize production optimization, energy efficiency, and cost reduction. For example, we are working strategically to optimize shipping by maximizing packing capacity, allowing for the transportation of more units per shipment. This reduces packaging waste, shipping costs, and CO2 emissions.

Machinery and materials are sourced as locally as possible, which supports local businesses while minimizing transportation needs—an approach that aligns with our sustainability strategy.

We remain committed to strengthening local partnerships and reducing transportation requirements.

Our core focus, both now and in the future, is to develop and manufacture high-quality products with long lifespans. We prioritize using high-quality materials to ensure that our products are recyclable—without compromising quality or functionality. Our products are designed to withstand demanding outdoor environments, requiring precision and durability — standards we meet through our dedication to innovation and quality.

S – SOCIAL

It is important for us to continue creating the right framework for our employees by aligning work conditions with their competencies and needs, ensuring a healthy work environment. In 2024, our sick leave rate was influenced by a long-term sick leave case. Over the coming years, we will work actively to reduce absenteeism by focusing on key factors that contribute to a healthy and supportive workplace.

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Farverivej 10

6900 Skjern, Denmark www.pronamic.com Tlf. +45 20 55 44 20

sales@pronamic.com CVR 34080623

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Made by:

JVR Consult