PG Indutri - ESG report 2024

ESG

REPORT 2024

At PG Industri in Tarm, we work with advanced CNC machining of metal and plastic for a wide range of industries. We combine modern technology with craftsmanship expertise to deliver tailor-made components that meet the highest market demands.

Our customers choose us for our fast delivery, consistent performance, and strong commitment to quality – from the first piece to the finished product Interested in learning more about our work with ESG? We are happy to share insights into our sustainability approach and how we document our efforts. Please don’t hesitate to contact us if you would like to learn more about our ESG report or specific initiatives. www.pgindustri.dk +45 20 40 63 58 pg@pgindustri.dk

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TABLE OF CONTENTS Preface 5

PG Industri ApS 6 Vision, Mission & Values 8

Sustainable Development Goals 10

EEnvironmental 12 SSocial Conditions 14 GGovernance 16 ESG Key Figures 18 Stated Goals 20

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PREFACE At PG Industri ApS, we have been supplying precision-machined metal and plastic components to a wide range of Danish and international industrial customers for more than a decade.

This ESG report is our first comprehensive report on how we work with sustainability, well-being, and good governance in practice.

It reflects not only where we are today, but also where we want to go.

Based on modern CNC technology, professional pride, and a strong focus on quality, we have established ourselves as a reliable and flexible subcontractor in an industry where precision and delivery capability are crucial.

For us, ESG is a natural continuation of how we do business: with care, integrity, and a constant desire to improve. Through this report, we want to share our values and approach with customers, partners, and other stakeholders – and open the door to continued dialogue on how we can meet the challenges ahead together.

We are a company where daily work is deeply rooted in responsibility and practical action.

Our employees take ownership of their tasks, our solutions add value to our customers’ products, and we aim to contribute to a healthy and future-proof business environment environmentally, socially, and economically.

At a time when responsibility and transparency are becoming increasingly important, we are committed to playing an active role in the green and social transition.

We are still at the beginning of our ESG journey, and we recognize that we do not yet have all the answers. However, we have a clear ambition to improve – step by step – while remaining curious and open to learning.

That is why we see this report as both a tool for reflection and a driver of progress, forming part of the foundation on which we are building the future of PG Industri.

We look forward to continuing the journey – and to taking it together with those of you who want to join us.

Per Grøn CEO, Owner

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ABOUT PG INDUSTRI For more than 17 years, PG Industri has been a trusted partner to industry when it comes to supplying precision-machined metal components. Headquartered in Tarm, we have developed into a strong and flexible subcontractor with customers in Denmark and abroad – from smaller specialized companies to larger production environments with high demands for quality, documentation, and delivery reliability.

Our strength lies in our technical expertise, robust production facilities, and flexibility in meeting customer needs – from small series to large-scale production. Our core competencies include CNC long turning, automatic turning, and milling. With modern machinery and dedicated professionals, we can ensure high precision, consistency, and flexibility in all stages of the process.

We offer total solutions, handling the entire value chain – from the purchase of raw materials and technical sparring to machining, finishing, quality assurance, and delivery. This holistic approach means that our customers can trust that their tasks will be solved efficiently and correctly – every time.

At PG Industri, we believe that close relationships produce the best results. We therefore place great emphasis on close collaboration, clear communication, and mutual respect. We are known for short decision-making processes, high availability, and a solution-oriented approach to every task

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Our employees are the core of our business.

With their experience, professional pride, and commitment, they help ensure that we can deliver the quality we stand for. That is why we continuously invest in skills development, the working environment, and training – both for new colleagues and apprentices, whom we see as an important part of the future workforce.

At the same time, we take responsibility for the world we are part of. We have therefore taken concrete steps towards more sustainable operations, such as reusing cutting oil and metal shavings and investing in equipment with a stronger focus on energy efficiency in production. Our ambition is to grow responsibly – in line with society’s expectations and our own values.

At PG Industri, we believe that responsibility starts in everyday life – in the way we treat each other, our materials, and our surroundings.

- Per Grøn At PG Industri, we do not see sustainability, quality, and partnership as separate concepts – but as mutually reinforcing elements. It is the combination of precision, flexibility, and responsibility that makes us the partner our customers can count on – today and in the future.

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VISION, MISSION & VALUES VISION

PG Industri strives to be a reliable and sustainable partner in CNC machining.

We want to be recognized for our ability to deliver high-quality solutions tailored to our customers' needs, while acting responsibly towards the environment, our employees, and our partners.

We believe that it is possible to combine efficient industrial production with sustainable principles and long-term value creation. Our vision is to create value through precision, integrity, and partnerships - and help build a stronger and more responsible manufacturing industry.

MISSION

Our mission is to be a value-adding subcontractor that understands and meets customer needs through technical know-how, flexible solutions, and close collaboration.

We take responsibility for the entire process - from material selection and processing to quality assurance and delivery - and we strive to accomplish this by creating value for our customers while reducing our environmental footprint.

We aim to run a business where professionalism, integrity, and respect for people and the environment walk hand in hand.

Through continuous improvement, investment in technology, and commitment to our employees, we work to ensure a healthy and sustainable business - today and in the future.

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At PG Industri, we believe that quality and responsibility go hand in hand – we create value through precision, integrity, and strong relationships - Per Grøn

VALUES Quality and Precision We never compromise on quality. Every single component is manufactured with care and precision, and we work systematically with quality assurance at every stage from raw materials to finished product. Our customers can rely on consistent results, regardless of batch size or complexity.

Responsibility We take responsibility - for our products, for our employees, and for the community and environment we are part of. This means that we incorporate sustainability into our production, prioritize a healthy and safe working environment, and always strive to act with integrity and propriety.

Cooperation and Adaptability We believe that strong results are achieved through collaboration.

That is why we emphasize openness, dialogue, and flexibility in our collaboration with customers, suppliers, and colleagues.

With short decision-making processes and a solution-oriented approach to tasks, we create value - together.

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SUSTAINABLE DEVELOPMENT GOALS At PG Industri, we want to play an active role in the global effort to achieve sustainable growth.

The UN's 17 Sustainable Development Goals serve as an important framework for both our current efforts and future ambitions. Although we are a small manufacturing company, we believe that all companies – regardless of size – have a responsibility and potential to contribute.

We have selected the Sustainable Development Goals where we have the greatest opportunity to make a real

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difference through our operations, our values, and our relationships with employees, customers, and partners.

The focus areas range from responsible production and resource consumption to employee development and decent working conditions.

By integrating the global goals into our strategy and daily work, we want to create value, not only for the company and our customers, but also for the community and environment we are part of.

SDG 4: Quality Education

We see it as a natural part of our responsibility to contribute to the development of the skilled workers of the future. That is why we prioritize training and apprenticeship programs, and we offer both young people and adults the opportunity to develop through practical experience and professional sparring. At the same time, we encourage our experienced employees to share their knowledge and act as mentors.

SDG 8: Decent Work and Economic Growth

At PG Industri, we prioritize a healthy working environment with a focus on safety, flexibility, and respect. We offer stable job opportunities - including for apprentices and people in flex jobs - and support professional development through training and responsibility. Our flat structure and our trust-based management create the framework for a good working life with freedom and meaningful tasks.

SDG 12: Responsible Consumption and Production

We actively work to reduce waste and resource consumption in our production. Through systematic recycling of metal shavings, oil recovery, and investment in environmentally friendly washing facilities, we minimize our environmental impact. We focus on efficient resource utilization and want to contribute to a more circular production model.

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E - ENVIRONMENTAL At PG Industri, we recognize that our production has a direct impact on the environment – through energy use, material consumption, and waste generation. That is why we work systematically to integrate environmental considerations into our daily operations, investments, and decision-making processes.

Resource Optimization and Waste Management We produce large quantities of metal components annually, which naturally generates a significant amount of chip waste. To reduce resource consumption and our overall environmental footprint, we have established systematic solutions for collection and recycling. In 2023/24, 99.84% of all waste was sent for recycling, while only 0.16% was sent for incineration or landfill.

At the same time, we are actively working on oil recovery. Turning chips are sorted into fractions, centrifuged, and drained of cutting oil, which is then filtered and reused.

This process ensures cleaner metal chips for reuse and reduces the consumption of new cutting oil.

In addition, all lighting in production and warehousing has been replaced with LED, and we are actively working to reduce our energy consumption. In 2023/24, the company's total energy consumption amounted to 309.14 MWh, corresponding to an energy consumption per employee of 81.35 MWh. A full 71.16% of our energy consumption came from renewable sources.

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Washing Equipment with Eco-friendly Technology We have invested in a modern alcohol washing system that uses modified oil instead of traditional solvents. This ensures high surface quality on our products while avoiding the use of chemicals that are harmful to health and the environment. The solution contributes to both a safer working environment and a reduced environmental impact.

As part of our ongoing development, we will work towards concrete documentation of our CO2 footprint in the coming years, and we will increasingly use data to measure and highlight our improvements. We are aware that environmental responsibility is an ongoing process, and therefore we are working on continuous improvements rather than quick fixes.

Cooperation and Requirements in the Supply Chain Our responsibility extends beyond the factory. We are raising expectations for our suppliers and partners by requiring environmental certifications, traceability, and responsible conduct. By choosing suppliers who share our ambitions, we amplify our joint efforts towards a greener industry.

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There is a good atmosphere and good cooperation. I help out where needed – and everything is under control – Jesper

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SICK LEAVE 0.33% IN 23/24 INDUSTRY AVERAGE 3.8%

S - SOCIAL CONDITIONS At PG Industri, we recognize that our employees are the foundation of our success.

We are committed to creating a safe, healthy, and inspiring work environment where everyone is respected and encouraged to grow professionally and personally.

A Safe and Responsible Work Environment Safety and well-being are an integral part of everyday life. The production environment is designed with clear procedures for machine safety, correct use of protective equipment, and regular maintenance of equipment.

Work environment efforts are carried out in close collaboration with employees, and we conduct ongoing risk assessments to prevent accidents and wear and tear.

The results show that in 2023/24 we had zero workplace accidents and an absenteeism rate of only 0.33%, which is significantly below the industry average of 3.8%.

In addition, we have established a structured onboarding process for new employees, so that everyone gets a safe and thorough introduction to the workplace - both professionally and socially.

Development and Retention We believe in the value of long-term relationships and actively work with training, upskilling, and knowledge sharing. Despite this, in 2023/24 we had an employee turnover rate of 78.95%, which is significantly higher

than the industry average of 20.8%. This development is linked to the fact that the company has grown rapidly in recent years and has continuously adapted its workforce to new tasks.

At PG Industri, we have an informal and collaborative working environment that encourages dialogue and mutual respect.

We see diversity as a strength and strive for an inclusive culture where everyone feels valued - regardless of age, background, or seniority.

There is a lot of freedom with responsibility, and it is always possible to take time off if you have a private appointment that falls within the normal working day. I have never doubted that Per has faith in you. That faith is one of many reasons why I wake up every day, get up, and am happy to go to work, says Ivan Engholm.

Local Commitment and Responsibility As a locally based company in Tarm, we also take responsibility for the surrounding community. We work with technical schools and educational institutions, offer internships and apprenticeships, and actively contribute to developing the professional skills of the future.

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G - GOVERNANCE At PG Industri, good management is the foundation of our daily operations and longterm development. We practice a flat, handson management structure where trust, responsibility, and open dialogue are key elements.

Ownership and Governance Structure The company is owned and managed by Per Grøn, who has been part of PG Industri since its establishment in 2007. His direct involvement in both strategic decisions and day-to-day operations ensures a close link between the company's values and actions.

Employee Involvement and Responsibility We place great emphasis on involving our employees in decision-making processes and giving them responsibility in their areas of work. This creates a culture where employees feel ownership and commitment to the company's success.

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PG Industri is committed to conducting business with integrity and in accordance with applicable laws and industry standards.

We have clear guidelines for ethical conduct, and we are constantly working to strengthen our management culture to ensure transparency and accountability in all aspects of our business.

Focus on Sustainability Management takes a proactive approach to sustainability and works purposefully to integrate environmental and social considerations into the company's strategy and operations. We strive to minimize our environmental impact and contribute positively to society through responsible business practices.

A good boss who is completely down to earth. At the same time, he is a calm person, which also helps to make me feel secure – Marcus Andersen

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ESG KEY FIGURES To ensure transparency and document our progress in sustainability, we present our ESG key figures for the financial year 01.07.2023 – 30.06.2024. The figures provide an overview of the most important results and indicators within the environment (E), social conditions (S), and governance (G).

The key figures enable customers, partners, and employees to follow our efforts, measure our progress, and hold us accountable in the areas where we want to make a difference. We see the ESG key figures as a management tool that helps us maintain focus, create value, and work purposefully toward our ambitions.

Environmental

Unit

2023/24

CO2e emissions within scope 1

Ton CO2e

19.82

CO2e emissions within scope 2 (environmental declaration)

Ton CO2e

12.83

CO2e emissions within scope 2 (electricity declaration)

Ton CO2e

79.27

CO2e emissions within scope 3

Ton CO2e

14.05

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

Ton CO2e

46.70

Ton CO2e/employee

12.29

MWh

309.14

Energy intensity, total energy consumption per employee

MWh/employee

81.35

Share of renewable energy in total energy consumption

%

71.16

Water consumption*

m

Handling of hazardous waste**

kg

-

Percentage of waste sent for recycling in relation to total amount

%

99-84

Incineration and landfill

%

0.16

CO2e intensity Total CO2e emissions (scope 1 + 2 + 3) per employee Total energy consumption

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*Not measured, private water supply shared with household **Not reported, no significant hazardous waste

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Social

Unit

2023/24

Average number of full-time employees

Count

3.80

Apprentices

Count

0

Employees in Flex Job Scheme

Count

0

Sick leave (industry average of 3.8%)

%

0.33

Workplace accidents (industry average of 1.9%)

%

0

Employee turnover (industry average of 20.8%)*

%

78.95

Employee satisfaction

-

No

Gender diversity in the organization (F/M)

%

0/100

Count

1

Nationalities

*The company has grown rapidly in recent years and has increased and adapted its workforce to the new tasks.

Governance

Unit

2023/24

Board of Directors

Yes/no

No

Gender diversity on the board

%

–

Attendance at board meetings

%

-

Pay gap between CEO and employees*

-

1,09

Other

-

No

*Pay gap between CEO and employees = CEO compensation/median employee salary.

Calculation Practices The environmental data has been compiled on the basis of calculations from utility companies and suppliers and converted to CO2e using emission factors in the Climate Compass, which is based on the Greenhouse Gas Protocol (GHG Protocol). According to the GHG Protocol, electricity (scope 2) must be calculated as location-based (environmental declaration, annual average emissions) and market-based (electricity declaration, adjusted for green certificates).

Social and management data has been compiled on the basis of records in payroll and financial systems, as well as other internal records. The calculations have been checked against statistics from DA and otherwise follow the guidelines from the Danish Finance Association/CFA Society Denmark, FSR – Danish Auditors and Nasdaq Copenhagen.

Scope Calculation In connection with the preparation of our first ESG report, we have worked to clarify what data we had available and what data has been challenging to collect. As a starting point, we have chosen to focus on the data that contributes to the calculation of scope 1 and 2 in the climate account.

Scope 3 The majority of a company's total climate footprint is usually found in scope 3, and these are typically factors over which the company has limited and often only indirect influence. The report is not verified by an independent third party. We have focused on ensuring that the content of the report is accurate, but we do not guarantee its accuracy and/or completeness. We therefore disclaim any liability for any damage or loss that may arise as a result of decisions made on the basis of the report.

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STATED GOALS & FUTURE FOCUS At PG Industri, we see this ESG report as more than just a status update – it is also a tool for setting direction. We want to continuously improve our efforts in the areas of climate, social responsibility, and governance. With this in mind, we have defined a number of specific goals to actively pursue in the coming years. These goals will help us turn our ambitions into action and make our progress measurable and transparent.

Focus on Resource Responsibility and Sustainable Production

We will strengthen our focus on reducing waste and optimizing the use of materials and energy in production. This means that we will continue to work on solutions such as recycling chips and oil, and be open to new initiatives that can reduce our overall environmental impact.

An Attractive Workplace with Room for Diversity

We will continue to develop a workplace that embraces professionalism, flexibility, and humanity. We want to be a place where both young apprentices and experienced employees thrive, and where people are allowed to take responsibility and develop themselves.

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Work Satisfaction and Trust in Everyday Life

We will maintain a work culture where dialogue, mutual respect, and trust are key elements. This means that, as management, we listen to our employees, provide flexibility where possible, and value the freedom with responsibility that many of us appreciate.

Transparency and Propriety in Decision-Making

We want to strengthen our internal structures and processes so that our values are also reflected in the way we manage and develop the company. It's about being transparent, taking responsibility, and working with ESG as a natural part of management – not as an add-on.

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Blåkildevej 39 6880 Tarm www.pgindustri.dk +45 20 40 63 58 pg@pgindustri.dk CVR 33375484