OV Sustainability Policies by OV Group

OV GROUP

Sustainability Policies 2023 - 2024

Content

OV Group Sustainability Policies

Sustainable Energy Policy

Sustainable Packaging Policy

Sustainable Raw Materials Policy

Sustainable Travel & Transport Policy

Sustainable Energy Policy

OV Group Sustainability Policies

Introduction

Our Aspirations for 2025:

The key to our energy policy is to reduce our CO2 emissions and source our energy from a renewable source. Reducing our energy consumption is an important means of mitigating climate change. These are our targets we are working towards:

• 100% renewable source of energy. • 65% reduction in Scope 1 and 2 emissions from 2016. • 30% reduction in Scope 3 emissions from 2016. • 30% reduction in energy and water usage (per produced tonne) from 2014.

Renewable Energy Our policy is to work towards sourcing our energy from a renewable source. In terms of electricity we are progressing well. As of 2023 83% of our sites having electricity from a renewable source. Projects are in place to move ourselves to 100% during 2023/24. At OV we are also looking at renewable natural gas which is new to the market with a limited number offering this, but it is something we would like to explore in more detail in due course. For both electricity and gas, we ensure we are working with suppliers that are using regulated Governments certificates.

Effective Energy Procurement The effective procurement of energy is a key part of our policy as there are different ways by which energy can be purchased, and we use the strategy that works for our company and purchase through a third-party Energy Consulting company. We have worked with our supplier for the last 3 year during difficult times.

Our policy is to only have a renewable source of both our electricity and gas.

Centralised Control & Reporting In the UK we purchase energy centrally and for all sites outside the UK we purchase through Orkla ASA. We then ensure we have clear management of our procurement of our energy to achieve our 2025 policy targets. This then also ensures compliance with Government Legislation in each country in question. OV Group Sustainability Policies

Energy Information Systems

Summary

In the UK we have our energy consumption monitored carefully through a dashboard system. We will look during 2023 at the feasibility of rolling that out to all of our sites within OV. Clear data is what is required to ensure we are working towards achieving our 2025 goal.

At OV our key focus is to procure at the lowest possible cost and reduce our consumption. We are making clear progress towards our targets with lots more to achieve in 2023.

Energy Reduction All sites are focused on reducing their energy consumption through site best practice. Clear communication from our team of Sustainability Ambassadors within the group ensures that we are highlighting that all of us at OV play a part in reducing our consumption. Each site is responsible for projects in conjunction with the Procurement and Sustainability Director.

OV Group Sustainability Policies

Effective procurement of energy is a key part of the policy as there are different ways by which energy is purchased.

Sustainable Packaging Policy

OV Group Sustainability Policies

Introduction

Our Aspirations for 2025:

Sustainable packaging must meet the functional and economic needs of the present without compromising the ability of future generations to meet their own needs. Sustainable packaging is the development and use of packaging which results in improved sustainability. This involves increased use of life cycle inventory (LCI) and life cycle assessment to help guide the use of packaging which reduces the environmental impact and ecological footprint. In addition, it needs to show that the packaging used is an appropriate material to link to the high sustainability aims of us at OV. All packaging choices made within the Group shall be guided by the 5R’s: rethink, reduce, replace, recycle and reuse.

• 100% of packaging is designed to be reusable or recyclable. • 75% of packaging to be based on recycled or renewable materials.

Rethink

Recycle

We challenge ourselves to find new packaging types, shapes and formats which significantly reduces the environmental footprint of our products.

We choose packaging solutions which make it easier for consumers to recycle it and use recycled materials wherever it makes sense from an environmental, food safety and commercial perspective.

Reduce We reduce the number of materials used and look for opportunities to eliminate parts of the packaging. We design packaging in a way that leads to less product, packaging, and process waste. Finally, we design the packaging in a way that supports the efficient transportation.

Replace

Reuse We develop smart refill solutions and look for opportunities to reuse packaging in our own production or in other parts of the value chain of our products.

Sustainable packaging is the development and use of packaging which results in improved sustainability.

We do not use packaging that is linked to tropical deforestation or other unacceptable production practices. We substitute potentially unsafe materials with alternatives that ensure complete food and product safety.

OV Group Sustainability Policies

We have clear high-level guidance on our Packaging requirements from our suppliers. Each category has different guidelines and please do discuss this further with the Procurement and Sustainability Director for more guidance. Our guidelines work hand in hand with those of our retailers to ensure that we are all working towards the same 2025 goals. In line with our targets, we are focusing on reducing our plastic packaging, understanding what other packaging formats are available, ensure our packaging can be reused/recycled and seek new innovations to ensure we continually strive to move to a more sustainable option. Top line category packaging guidelines are as an example: Flexible Film: We look to ensure we are using a recyclable format on our films. We look to ensure we are using a recyclable film format. If film is not already in a monomaterial, projects are in place to move to this format. Trials are also being undertaken in 2023 to

OV Group Sustainability Policies

ensure that we stay ahead with new innovations being introduced into the market. Rigid Packaging: For all our rigid packaging we need to ensure we are using PP, PE or PET options. With rPET of 30% content to be introduced as minimum. Paper Based Materials: Paper is always our preferred option and needs to be FSC certified. Biodegradable and Compostable: At OV we do not use material that is Biodegradable or Compostable. On pack Recyclability Logo: At OV UK we have joined the OPRL logo scheme which allows us to use the logo on our packaging for our customers.

Sustainable Raw Material Policy

OV Group Sustainability Policies

Introduction

Our Aspirations for 2025:

At OV we consider it important that the raw materials we use in our products are produced with the interests of people, the environment and animals in mind. That is why we work closely with our suppliers to deal with social and environmental challenges. We are actively engaged in efforts to protect the rainforest and have taken a clear stance in the debate on palm oil.

• 100% verified raw materials by 2025 • 100% suppliers SEDEX approved • 100% signed Supplier Code of Conduct

Since we purchase raw materials from many different areas of the world, we want to make sure that all our suppliers are in line with our Supplier Code of Conduct and that production is carried out in accordance with internationally recognised requirements relating to human rights, working conditions, the environment and anti-corruption. We also recognise the importance of collaboration when working towards more sustainable supply chains, therefore we are members of several initiatives focusing on everything from sustainable agriculture and packaging to human rights. Some examples of our initiatives are SEDEX, SAI Platform, RSPO, AIM-Progress and Plastic Recyclers Europe. OV strives to conduct business in a responsible manner, based on the duty to respect human and labour rights, protect health, safety, and the environment, and in general, apply sound business practices.

OV Group Sustainability Policies

As part of our Sustainability Targets and Aspirations for 2025 we want to ensure that all prioritised raw materials are 100% verified. Internally we have reviewed our raw materials and categorised them as high, medium or low risk. In turn we will focus on high risk and therefore high priority first. Ensuring that all of these high risk materials are 100% verified in accordance with the SAI platform. We undertake this through several steps which are embedded into the way we procure our raw materials: • All supplier to sign and adhere to the Supplier Code of Conduct.

We also recognise the importance of collaboration when working towards more sustainable supply chains.

• All suppliers to be members of SEDEX. • Raw Materials are reviewed, and we use the SAI platform to verify our raw materials. Therefore, where the raw material is high risk or a prioritised raw material, we need to achieve this by 2025.

100% Verified Sustainable Raw Materials Suppliers have to sign and adhere to the Supplier Code of Conduct, a copy of this can be seen at orkla.com/code-ofconduct. To make OV’s position clear to our suppliers, Orkla have developed a Supplier Code of Conduct (SCoC). The SCoC is based on UN declarations, core ILO conventions, the ETI Base code, and UN Global Compact’s 10 principles for sustainable development, to which OSI is committed. It is included in all of our suppliers Manufacturing Framework Agreements. All suppliers need to sign and adhere to this.

and a community network to help companies improve their responsible and sustainable business practices, and source responsibly. All suppliers to OV should be a SEDEX member. We use the SAI Platform to verify our ingredients - saiplatform.org We use the SAI platform to ensure that all our raw materials are benchmarked to a certain level. Guidance is given specifically to a category so please discuss this further with the Procurement and Sustainability Director for more information on how you can support us at OV.

Summary The priority for our raw materials is to ensure that they are 100% verified with small steps in place with our suppliers to ensure that we achieve this by 2025. The raw material supply chain is highly complex but by following these guidelines we will ensure we build these changes into our NPD process and in turn our end products to our customers.

All suppliers must be a member of SEDEX - sedex.com Sedex is a membership organisation that provides one of the world’s leading online platforms for companies to manage and improve working conditions in global supply chains. They provide practical tools, services

OV Group Sustainability Policies

Sustainable Travel and Transport Policy

OV Group Sustainability Policies

Introduction

Our Aspirations for 2025:

We at OV we need to ensure that we are reducing our use of transport and traveling which contribute to increased emissions. These are our OV sustainability targets:

• 65% reduction in Scope 1 and 2 emissions from 2016. • 30% reduction in Scope 3 emissions from 2016. • 30% reduction in energy and water usage (per produced tonne) from 2014.

Therefore, to contribute to these targets we ensure: 1. When selecting our Company cars, we ensure we are selecting a hybrid or electric option. For those that have a Car Allowance then the car of the employee must be hybrid or electric (if they do not fulfill these criteria with their current car then they are required to make this move upon next car selection). 2. We have clear decision-making process when undertaking business travel to ensure we reduce our traveling requirements and in turn our energy reduction. 3. The highlighting of how to organise our fleet of transport to ensure we are utilising our fleet and backhauling where appropriate.

OV Group Sustainability Policies

Company Vehicles Selection At OV our ambitions are to select vehicles with the lowest CO2 emissions and are supporting EU’s Regulation 2019/631 about setting CO2 emission performance standards for new passenger cars. Regulation 2019/631 sets an EU fleet-wide target of 95 g CO2/km for the average emissions of new passenger cars, but the current choices may be limited until the car industry responds to these targets. When OSI companies purchase or lease new company vehicles, the aim should be to select cars with the lowest CO2 emissions as we move towards the ambitious target of 95 g CO2/km over the next three to five years. This target can be achieved by selecting cars in the following order, of course subject to that appropriate infrastructure is in place in the specific country:

1. Battery electric vehicles are powered solely by an electric motor. 2. Plug-in hybrid electric vehicles are powered by an electric motor and an internal combustion engine that work together or separately. 3. Gasoline or diesel cars (shall be avoided) are powered by an internal combustion engine.

Company Travel and the Decision-Making Process This policy is in accordance with the Orkla Travel Policy and booking guidelines and needs to be adhered to. The cost of travel represents a large part of the total costs at OV and at the same time traveling has a large negative environmental impact. The decision-making process should be: 1. Virtual meetings should be held and in turn utilisation of the IT tools. Therefore, avoiding unnecessary travel. 2. Unnecessary travel by car should be always avoided. Cycling, walking and public transport should always be considered as a practical option. The last option shall be travel by car.

OV Group Sustainability Policies

Our Internal Operations As well as reducing our employee internal traveling we need to ensure we are utilising our fleet of lorries. These contribute to: 1. Reduction in traveling ensures less CO2 emissions. 2. By regional organisation and fleet management this optimises back-hauling and route planning including pallet utilisation and in turn a full truck load.

When selecting company cars we ensure we are selecting electric or hybrid.

3. Understanding the external hauliers and their sustainability guidance.

Optimise Route Planning

Optimise Pallet Utilisation

As a group we need to ensure we are optimising the routes. We need to ensure we become more synced in our approach. We are in the process of reviewing:

Our internal box sizes are optimised to increase both MOQ’s and pallet utilisation, optimise pallet fill and save on both packaging and travel miles. We also ensure that we merge our loads to our customers where possible.

(own fleet or external haulier)

• Reduces Transport miles • Optimises back hauling • Reduces Fuel costs • Improves safety • CO2 reduction We look to ensure that we select those hauliers that have new technology and sustainability/green aspirations.

Optimise Sample Distribution Ensure when distributing of samples that we reuse boxes where applicable to the brand guidelines. We also ensure that we are using approved couriers for the distribution of our samples. We are working with partners that have a strong sustainability and green policy in line with ourselves.

Summary At OV we ensure we always put this Policy to the front of mind when we make any decisions with regards to our travel and transport both internally and externally.

OV Group Sustainability Policies