Sustainability Story 2024 - Proton Group

Positive change through sustainable growth POSITIVITY

A SUSTAINABILITY STORY FROM THE PROTON GROUP

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Proton stands for positive change. With clever industrial solutions we create meaningful jobs and conserve the earth’s resources.

Together we can contribute to a better world for the next generation.

Photo: Martin Johansson, Martin Andersson, Anna Hållams och Erik Sundwall

The Proton Group is a family-owned corporate group with businesses within six areas; surface treatment, pipe bending, machine safety, corrosion testing, pipe installations and lighting.

Pipework and infrastructure are an important factor when the process industries switch to sustainable production methods. Weldin Gothenburg has specialist expertise in the field.

Proton Finishing sets its sights on enhanced personal safety in production

Proton pursues locally targeted sustainability measures in a global context. Caring about the people and environment around us is the first step to contributing to a more sustainable world.

DAVID GUSTAFSSON, CEO OF THE PROTON GROUP

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It’s easy to get caught up in global thinking, but we see great opportunities to make a difference on a local plane.”

The Proton Group’s sustainability story is the first step of a long journey that never ends. A journey with many challenges – and even more opportunities,” David Gustafsson says.

“Sustainability offers a fantastic opportunity to develop a company.”

The Proton Group focuses on growth. Is it really possible to combine growth with sustainability?

”Customers, consumers and demanders want sustainable solutions. In general, public awareness has increased to the point where clearly documented sustainability measures are often a requirement for doing business. Companies that want to grow in the future will have to offer sustainability as a part of their business model.

If we can develop a surface finishing method that has less environmental impact but protects the components just as well, there’s a good chance the customers will choose us. And that means we’ve contributed to a sustainable solution – and grown our business at the same time. When it comes down to it, it’s a matter of survival. If we can’t turn things around, there’s no tomorrow for any of us.

How does the Proton Group weigh in sustainability when making acquisitions?

“We have a checklist of about 15 points. One of them expressly states that the company must have a sustainable business concept. JL Safety in Skara, which we acquired a few years ago, is a good example. It’s an engineering safety consulting company that saves lives by helping to make our customers’ working environments safe and secure.”

What sustainability issues does the Proton Group prioritise?

“We are inspired by the Global Compact, mainly because it has a high recognition factor and is easy to communicate. Using the same terms with all of our different stakeholders simply makes our sustainability measures more effective. We focus on three perspectives: Social, Environment and Economy. During 2021, we conducted a stakeholder and risk

analysis that allowed us to select several focus areas to prioritise.”

How do you develop the different perspectives?

“Our aim is to become carbon neutral by reducing emissions. For example, we are working to convert energy sources and reduce our dependency on LPG (liquefied petroleum gas).

It is easy to get caught up in global thinking, but we see great opportunities to make a difference on a local plane. We can contribute to well-being in the community and for individuals in the long and short term by creating job opportunities. It is also important that we can offer all types of jobs; society needs different jobs for different people, which is important for society and the economy. We can give that first important job to someone who is far away from the labour market, for example through our cooperation with Samhall. But we can also give our existing employees the opportunity to develop. Over the past year, we have several good examples of employees who have stepped into a new role.

Financially, we aim for long-term stability and resilience. In our world, that means profitability of about 6–8 percent and indebtedness no less than 35 percent. We also have a modest dividend policy. This allows us to invest in our business, in our employees and in our sustainability measures.”

The Proton Group does not have to report on its sustainability efforts, does it?

“No, there is no requirement for mandatory sustainability reporting according to the Swedish Annual Accounts Act. Naturally, we must meet all the legal and societal requirements, but customers also demand that we can describe our sustainability measures before they will do business with us. Doing this work also gives us a picture of our strengths and weaknesses and what we need to develop in the future. We have chosen not to call this a report because we have only been producing this type of summary for two years and are aware that we have some way to go. We want to be clear and transparent about our activities to our customers, staff and other stakeholders. In a way, we have to do it anyway, for our own sake. However, from the 2025 financial year, Proton Group will be subject to the EU’s new Corporate Sustainability Reporting Directive (CSRD). By starting to produce this type of sustainability story a few years ago, we have established working methods and are more prepared for this type of reporting than if we had not done this work.”

What achievement in sustainability are you most proud of?

“The climate calculations we did in Proton Finishing is an important starting point for our continued efforts.

It helped us to crystallise what to focus on when we continue with our other business areas. I’m also very proud of having set aside the resources we need to pursue ambitious sustainability efforts through a new organisation and new hires.”

”The greatest challenge is the switch to a low-carbon economy and how to create new, circular business models in which everyone is prepared to contribute.

Have you had any setbacks?

“Yes. Late in 2021 we discovered that a person in a managerial position at one of our manufacturing units had been taking advantage of people in a vulnerable position and demanded money in exchange for job offers. The person was fired and we reported it to the police. It was a terrible disappointment to discover that such things was happening in our organisation, but it was also a very important lesson that resulted in us now working more actively with our core values and code of conduct. All employees in the Group have undergone thorough training in our Code of Conduct during the year, and last year work began on developing a completely new set of values for the entire Group, to create behaviours that can carry us forward.”

What is your greatest sustainability challenge and what will it take to achieve it?

”The big challenge is climate change and how to create new, circular business models where everyone is prepared to contribute. Sometimes there are no financial incentives in business. If we, as a subcontractor, go further in our sustainability work than what the procurement requires, it is still very difficult to get a return on that added value. Anyone who invests heavily in a carbon-neutral factory cannot currently expect the investment to pay off. We need to solve that

problem. My personal view is that we all need to start making demands on each other throughout the value chain. Customers need to make demands on us and we in turn need to make demands on our subcontractors. Authorities could also simplify regulations - it is not easy to navigate over time and make investments because conditions are constantly changing. For example, changes in taxation of different energy sources create caution in investments. More collaboration between society, business and consumers is needed to make real change happen.”

What do Proton’s stakeholders think of the work that’s going on?

“We have been very clear that we see our sustainability work as a way of creating a positive difference for the coming generations. My perception is that many stakeholders – customers and employees alike – appreciate this, that we’re doing something meaningful, it’s not just about having a job here and now. I sometimes hear from new employees that they applied to work for us specifically because we take sustainability seriously.”

Global growth – together

Organisation and business model

The Proton Group is a family-owned business group with the Malveholm family as the largest owners.The business is divided into six areas: surface treatment, lighting, pipe bending, pipe installations, machine safety and corrosion testing. They operate in a variety of industries that are all linked to industrial production. A number of companies operate within the framework of the various activities, all of which have the freedom to run their business and their sustainability work under their own responsibility. To support the operations, Proton Group has set up a special service company, Proton Services, which provides expertise in finance, HR, IT, marketing communications, sustainability and management.

In their specific fields of expertise, the companies in the five business areas have customers in an array of industries, which serve as suppliers, product owners or consultants to the automotive, construction, property and furniture sectors. Proton Group customers are primarily located in Europe, but some are in Asia, North and South America. Some long-term customers include names such as Ahlsell, Alfa Laval, Autoliv, Gunnebo Fastening, Hestra Inredningar, IKEA, Kockums Maskin, Koenigsegg, Kongsberg, MAN, Nevs, Renault, Rexel, Scania, Shiloh, Tesla, Thule, Volvo Trucks and Volvo Construction Equipment.

One of the core ideas of the Proton Group is that the business areas can benefit from each other’s strengths by working together on sustainability, sharing of skills and business development. The wide range of business activities also helps to make the group somewhat recession-proof and allows it to move sustainability investment funds between businesses where needed.

Strategic presence in the Nordics and Baltics

SWEDEN FINLAND

Eskilstuna

Skara

Gothenburg

Hillerstorp

Anderstorp

Forsheda

Bankeryd

Skillingaryd

Värnamo

Proton Group head quarters

Vantaa

LITHUANIA

Klaipèda

Skövde

Growth strategy

The Proton Group pursues an active growth strategy with the aim of doubling sales every ten years. The sales target for 2030 is SEK 1.3 billion. This growth is to be achieved organically and through acquisitions, and through an increased global presence.

• We develop companies with unique abilities that are, or have reasonable potential to be, leading in their field.

• We invest in companies that have, or have the potential for, good dividends, long-term growth and limited risk.

• We have a healthy financial base that is stable in the long term.

• We are long-term owners with no ultimate time limit.

• We have operations in a variety of industries to reduce vulnerability and increase resilience.

• The dedication and knowledge of our staff are crucial to our development. This makes a decentralised organisation natural to us.

These strategies are steps towards these goals:

1. Strong business areas with their own, motivated management and clear focus on results.

2. Long-term resilient financial basis:

No single industry is to make up more than 1/3 of sales at the aggregate group level.

3. We actively seek new acquisitions based on our primary strategy.

4.The group supports the business areas and their subsidiaries with funding,analysis and resources in finance, HR, IT, marketing communications, sustainability and management.

History

The Proton Group was founded in 1990 when a number of stakeholders, including Leif Malveholm, bought out a group of ten industrial companies and delisted them from the stock exchange. The aim was to build an industrial group with several pillars to stand on. The existing base was the surface finishing companies that currently make up the company Proton Finishing. The strategy was to invest in environmental improvement measures, as the group owners expected that tighter environmental regulations would make it harder for smaller companies in the business to compete. Part of that strategy involved creating synergies between the surface finishing business and the construction business, which is now is the company Proton Engineering. Throughout its history, the Proton Group has faced both opportunities and setbacks, but it has always succeeded in offering stability to its customers and employees. The Proton Group has maintained an AAA credit rating for more than 25 years. After a series of significant investments in environmental and other measures, as well as divestments of non-strategic assets, the Proton Group is well-equipped for future growth.

1990

The Proton Group is founded.

2012

Transition to buying fossil-free electricity.

2018

2018

Transition from fossil natural gas to renewable biogas.

2011

Generational shift –ownership passes to Leif Malveholm’s children

2017

TIA – incident management system for risks, incidents and accidents is implemented.

2018

Soil remediation of property in Markaryd where previous surface treatment business operated.

2019

Proton Group acquires JL Safety and CEDOC

Daniel, Marcus and Sanna.

2020

Proton Group acquires Gunnar Hansson Svetsteknik and Teknikrör i Kinna, which have now merged to form Weldin Gothenburg.

2020

Transition to purchasing environmentally declared hydropower.

2021

Proton Group acquires surface treatment company in Anderstorp.

2022

Proton Group publishes its first sustainability story.

2023

Producing our own renewable electricity through our first solar panel installation.

2023

JL Safety och Cedoc becomes separate companies.

2022

Report of climate footprint, CO2 emissions from all surface treatment businesses..

2024

Climate footprint for the whole Group.

Exaktor Exlite

Lighting solutions for a sustainable society

Proton Lighting is one of Scandinavia’s most experienced suppliers of energyefficient lighting for healthy, productive environments. The luminaires are developed and manufactured with innovative light sources and lighting control to meet stringent demands for sustainability. The products are marketed under the brands Exaktor and Exlite.

COMPANIES

Proton Lighting, Värnamo

Proton Lighting, Helsingfors Finland

NUMBER OF EMPLOYEES 2023

SALES 2023 (SEK MILLIONS)

SUSTAINABILITY FROM A BUSINESS PERSPECTIVE

By offering energy-efficient LED lighting in combination with intelligent control systems, Proton Lighting can help its customers reduce their energy consumption and their carbon footprint. The current energy crisis and rising electricity prices also highlight clear business benefits from a financial perspective. In addition, more and more customers are demanding good ergonomic lighting for improved employee health, wellbeing and safety. Public environments with good, energy-efficient lighting also make people feel safer, which provides greater benefit from a societal perspective.

Värnamo

Vantaa

Proton Engineering

PIPE BENDING

Supplier to leading vehicle manufacturers

Proton Engineering focuses on high-quality components for the automotive and manufacturing industries. Currently the organisation consists of two companies: Proton Engineering in Skillingaryd and in Klaipèda. The companies perform pipe and tube bending, end forming and welding and have a long tradition of deliveries to leading vehicle manufacturers in Sweden and the world.

COMPANIES

Proton Engineering, Skillingaryd

Proton Engineering Lithuania, Klaipèda, Litauen

NUMBER OF EMPLOEES 2023

SALES 2023 (SEK MILLIONS)

SUSTAINABILITY FROM A BUSINESS PERSPECTIVE

As a supplier to the heavy vehicle industry, Proton Engineering’s ability to deliver well-designed, durable components is crucial to the life cycle of the finished vehicle. Proton Engineering’s sustainability measures create added value for its customers by providing resource and energy-optimised solutions and products that were created under good working conditions with stringent demands for suppliers both upstream and downstream.

Skillingaryd

Klaipèda

Cotec Labs

Services in quality and testing

Cotec Labs is a highly specialised company with a focus on quality. The company is a market leader in corrosion and surface testing for the international automotive and furniture industries.

COMPANIES

Cotec Labs, Bankeryd

NUMBER OF EMPLOYEES 2023

SALES 2023 (SEK MILLIONS)

SUSTAINABILITY FROM A BUSINESS PERSPECTIVE

Cotec Labs’ services provide quality assurance of surface-treated parts, helping to extend the lifecycle of products reaching the market. Cotec Labs’ services are also strategically important in the development and quality assurance of new, more environmentally friendly surface treatment technologies.

Bankeryd

MACHINE SAFETY

JL Safety Cedoc

Services in risk assessment and safety

The field of operation of machine safety comprises two highly specialised companies focused on risk assessment and machinery safety. JL Safety specialises in machinery safety and CE marking, helping manufacturing companies to create safe workplaces. Cedoc develops software for risk assessment and documentation of machinery.

COMPANIES

JL Safety, Skara Cedoc, Skövde

NUMBER OF EMPLOYEES 2023

16

SALES 2023 (SEK MILLIONS)

15

SUSTAINABILITY FROM A BUSINESS PERSPECTIVE

Within their respective businesses, JL Safety and Cedoc contribute to creating safer and healthier working environments and reducing the risk of injury in industry.

Skövde

Skara

Building the industrial infrastructure of the future

Weldin Gothenburg, develops safe, efficient infrastructures for the distribution of materials and media. The company represents unique expertise in advanced pipe and tube installations for industries such as pharmaceuticals, food and the process industries.

COMPANIES

Weldin Gothenburg, Gothenburg

NUMBER OF EMPLOYEES 2023

SALES 2023(SEK MILLIONS)

Gothenburg

SUSTAINABILITY FROM A BUSINESS PERSPECTIVE

As consultants for companies in fields such as food, process industries and chemical industries, the company in this field of operation is part and parcel of these customers’ transition to more energy and resource-efficient production. Many customers are building new or completely renovating their facilities to meet future demands for sustainable production, and Weldin Gothenburg assists them with providing complete solutions, from planning and design to construction.

Proton Finishing

SURFACE TREATMENT

Experts in surface treatment

Proton Finishing consists of six companies that specialise in various surface treatment processes – primarily in the form of corrosion protection, but also decorative coating for customers in the automotive, construction, furniture and other industries.

COMPANIES

Proton Finishing, Forsheda

Proton Finishing, Hillerstorp

Proton Finishing, Eskilstuna

NUMBER OF EMPLOYEES 2023

Proton Finishing, Stansgatan 1B, Anderstorp

Proton Finishing, Stansgatan 8, Anderstorp

Proton Finishing, Grand Prixgatan, Anderstorp

SALES 2023 (SEK MILLIONS)

Anderstorp Forsheda

Eskilstuna

Hillerstorp

SUSTAINABILITY FROM A BUSINESS PERSPECTIVE

Surface treatment is an industry that involves extensive handling of chemicals that are hazardous to humans and the environment. By developing new, sustainable processes for reduced environmental impact, and by pursuing active personal safety measures, the companies in Proton Finishing can be seen as innovative, attractive business partners as sustainability becomes an increasingly important aspect in procurement.

MARIA THOM, SUSTAINABILITY MANAGER PROTON GROUP

Determination is the biggest opportunity ”

Maria Thom is Sustainability Manager at the Proton Group and has worked with environmental issues in the industry for nearly 20 years. She started working at Proton Finishing as quality and environmental manager in 2014 and now also has strategic responsibility for sustainability at group level.

Why did you choose to get involved in sustainability issues?

“I studied chemical engineering and physics at Chalmers. At the end of my programme, when it was time to specialise, I chose a focus on energy and the environment, and my interest in the field grew more and more as I entered the professional world. I’m driven by the idea of contributing to long-term sustainability – for Proton, of course, but also for my family, my children, my friends and community, and also for myself.”

You’ve worked professionally with environmental issues for almost the whole of the 2000s. How has the situation changed?

“The most important change is that demands from all sorts of stakeholders have increased.

It isn’t just the legislators – the customers, suppliers, the media and the neighbours across the street all care more about the environment these days. Not to mention all the young people who prioritise the environment and sustainability.

I’ve had the pleasure of working with companies that have had a strong environmental focus over the years, where these issues are taken very

seriously, but the biggest difference now is that so many really care about what we do!”

Why is sustainability so important to the Proton Group?

“It isn’t more important to Proton than to anyone else. Working consciously with sustainability-related issues is extremely important to any company that wants to stay relevant on the market. Sustainability is a matter of survival from many perspectives.”

What do the stakeholders think is most important right now?

“What they care about most right now is the climate. Proton’s stakeholders are very clear that they want us to show progress in our efforts to reduce our climate impact and our carbon dioxide emissions.”

What is the greatest sustainability challenge for the Proton Group?

“Carbon dioxide emissions and reduction of emissions are a very important issue, and our stakeholders will demand even more in this area in the future. Another major challenge is to go even

deeper into the supply chain and ensure that our sustainability demands are met the whole way – not just in terms of climate sustainability but also other sustainability-related requirements. The challenge is that we often have complex supply chains. For example, Exaktor and Exlite work with many components from different parts of the world.”

What is the greatest opportunity?

“The drive and will in the organisation and from the owners. We have an opportunity to show that we are forward-thinking and we make things happen. In some areas, we’ve got a bit of a lead on our competitors, especially in surface treatment. And having the whole Proton Group behind us also gives us extra muscle and investment

opportunities. The fact that we have such breadth in different business areas, which are not always synced in the business cycle, can sometimes be an advantage.”

What do you look forward to working further with?

”We have just started work on producing a sustainability report under the new European CSRD directive for the entire Proton Group. This is exciting work where I will learn a lot more about and get closer to our businesses and companies.

It’s really exciting. Within the framework of this work, climate calculations are also underway for all companies in the group. The work will give us a good basis for real and important improvement work going forward.”

“I’ve had the pleasure of working with companies that have had a strong environmental focus over the years, where these issues are taken very seriously, but the biggest difference now is that so many really care about what we do!”

Sustainability policy

For Proton Group, sustainability means that we take active responsibility for the impact our operations have on society. Being a sustainable company is fundamental to the long-term development of our operations and business. Our ambition is to develop solutions that contribute to a sustainable world for future generations.

Proton Group sees sustainable business as a social, ethical, environmental and economic responsibility where we in all our businesses work purposefully to live by our core values of being proactive, working as a team, challenging ourselves and collaborating. We transparently assess and report our impact on society.

Enjoy succeeding together

Collaboration

Challenge

Independent individuals knitted together by one strong belief: that real success is created through collaboration. The journey towards the goal, the challenges along the way and our pride in our everyday work are the things that motivate us.

Proton’s Sustainability Strategy

Employees

We want to contribute to safe, secure working environments that allow our employees to grow. We want to make it possible for people with different backgrounds to work under good conditions. Through our products and services, we also contribute to greater safety for our customers’ employees.

ANSTÄNDIGA

Society

We want to contribute to a community where children and young people have meaningful free-time activities and where we can help young people to get an education, internships and jobs. So we participate in many activities with schools and associations. We also want to ensure a good working environment and consideration of the environment in our value chains, including the supplier and customer links.

Climate impact

We want to contribute to the Paris Agreement by reducing our climate footprint. As our first step, we are doing climate calculations on each part of our operations, after which we will establish a plan for how to achieve our goal of being climate neutral by 2045.

SOCIA

Our sustainability strategy is based on three perspectives: Social, Environment and Economy. Within the frameworks of each perspective, we have two focus areas where we work towards clear goals, which we monitor using key figures. The choice of perspective and focus areas is based on a risk and materiality assessment.

Development

ECONOM

We want to contribute to inclusive industrialisation and promote sustainable innovations. By developing sustainable solutions, we can add value to our customers’ sustainability measures. With our own innovative development projects, we can also make our own operations more circular.

We want to contribute to sustainable growth, where we can continue to invest in new technology, develop new products and services and develop our employees’ skills through profitable operations.

We want to contribute to a better use of resources by reducing our use of materials and preventing, reducing, reusing and recycling our waste. We also work to handle chemicals responsibly to reduce negative consequences to human health and to the environment.

Local footprint

Risk analysis

Climate impact (CO2 emissions)

Our operations contribute to CO2 emissions, which have a negative impact on the climate. It would be a business risk not to reduce our CO2 emissions, because of increased demands from our customers.

Reource use

Reckless use of raw materials, electricity and water negatively impacts the environment and the economy. These risks also embrace the raw materials used, waste in production and the handling of waste in manufacturing and end use.

Materials and chemicals

Exposure to certain materials and chemicals during use can occur throughout the value chain and impact the natural environment, the working environment and people’s living environments.

Reduced faith in the brand

Not living up to legal requirements, our Code of Conduct and our stakeholders’ expectations in sustainability matters can harm our brand

Risks in the working environment

Within our business operations, there is a risk of accidents, injuries and illness among our employees. This can negatively affect our employee brand and our ability to recruit skills.

Culture of silence

The existence of a culture of silence creates a risk that employees don’t dare to discuss problems or report breaches of policy or our core values.

Hazardous emissions

Our operations generate noise and emissions of pollutants into the air, water and soil, which are subject to specific conditions through permits from authorities. At incidents there is a risk that we will iolate these permits.

Decline of biodiversity

In and around our properties are land areas that risk constraining biodiversity and nature’s provisioning capacity if they are not used properly.

Climate-related consequences

Heavy rain can lead to a risk of flooding of production facilities, leading to a risk of long-term production loss.

Business with countries at war

Conducting business with companies in countries at war leads to both social and financial risks throughout the value chain. Risk area/description

The risk analysis shows risks that have great impact on individuals, the environment and our ability to conduct business. The identified risks are general for our business and apply to the whole Proton Group. The individual companies in the group are each responsible for making detailed risk analyses of their own operations.

Risk level * Risk management Opportunities

We work with tools such as our sustainability policy, climate calculation, energy audits, renewable electricity and supplier assessments.

We work strategically and practically with sustainable solutions and reduced use of resources through our sustainability policy, purchasing policy, various labels and certifications, permit terms and conditions and management systems.

We work with tools such as chemical management systems, risk assessments, replacing materials and chemicals, and supplier assessments. We also demand information on chemical content based on IMDS, REACH and SCIP.

We monitor legislation and maintain continuous dialogues with suppliers and customers.Tools such as our core values, supplier assessments and ranking, our sustainability policy, business strategy and Code of Conduct help us in this.

We continuously develop our health and safety policy and systematically develop our routines, risk analyses and assessments, safety rounds, incident reporting, employee satisfaction surveys, employee appraisals, internal training and key figure monitoring.

We use tools such as our core values, Code of Conduct, NMI tools with action plans and a reporting tool for whistleblowing.

Our operations are subject to authorisation, which means that we follow a control programme, emergency routines and a non-conformance system with regular audits and inspections.

We work in the framework of our sustainability policy, but we currently have no established routines for working in this area.

We work with risk analyses, preventive measures, emergency preparedness and crisis scenarios.

We use tools such as our core values and our Code of Conduct, which includes business ethics.

Opportunities to reduce climate impact through choice of materials, energy solutions, transports, suppliers and increased resource efficiency and circularity.

Opportunities to reduce our own use of materials, increase circularity and ensure long life cycle of our products.

Opportunities for increased dialogue with customers and suppliers and offer more sustainable products and processes.

Opportunities for further development of a sustainable business strategy. Cataloguing of the value chain as regards to sustainability criterias. Clearer supplier agreements and monitoring. Training of employees.

Opportunities for continuous improvement.

Opportunities for continuous improvement.

Opportunities for continuous improvement.

Opportunity to analyse how we can contribute to increasing biodiversity.

Opportunities to update risk analyses with climate-related risks for all facilities.

Opportunities for continuous improvement.

Stakeholder analysis & Stakeholder dialogue

Stakeholders

Customers

Employees

Owners & board

Type of dialogue

Sales organisation and customer support, annual customer satisfaction index (CSI), customer meetings, customer reviews, development projects, trade fairs and customer events, annual reports, interim reports, the sustainability story, website, web portals and social media, Protonen magazine.

The annual employee satisfaction index (ESI), annual performance reviews, various meeting forums in the business, safety inspections and safety committee, intranet and the Ernest business system, annual report, interim reports, the sustainability story, Protonen magazine.

Board meetings and regular reporting.

Suppliers & partners

Orders and supplier meetings, annual supplier assessments and ranking, industry associations and network meetings, customer surveys, inspections and audits, trade fairs and customer events, annual reports, interim reports, the sustainability story, the website, web portals and social media, Protonen magazine.

Authorities

Local community

Verification and reporting based on permit requirements, inspections and information transmissions, projects, workshops and seminars, regulations and updates of regulations, agreements and permits, inquiries and surveys, annual reports, interim reports, the sustainability story, web portals.

Discussions when needed, sponsorship activities, internships, study visits and open houses and events in the local area. Annual reports, interim reports, the sustainability story, website, web portals and social media, Protonen magazine.

The stakeholder analysis was conducted based on all of the Proton Group’s business activities. The prioritisation of the stakeholders takes into account both how we influence the stakeholders and how they influence us. In the coming year, we plan to conduct several stakeholder dialogues focusing on sustainability, to collect comments and expectations from our stakeholders. For businesses covered by ISO certification -Cotec Labs, Proton Engineering, Exaktor, Exlite och Proton Finishingstakeholder analyses are done for each business.

Essential questions

Industry and business requirements, fulfilment of requirements and expectations, business ethics and the Code of Conduct in the supplier chain, improvements and development, climate impact, life cycle and life time, partnership and long-term relationships, competence and knowledge sharing.

Satisfaction, fellowship and activities, the attractiveness of the workplace, various benefits and work-life balance, environmental and health-and-safety issues, skills enhancement, professional and personal development, employee spaces, tools, equipment and clothing, community involvement and security through stability and a long-term perspective.

Strategic direction, development and change, competence, growth, profitability and cash flow, satisfied workers and customers and ambassadorship, business ethics.

Sustainable value chains, long-term thinking and partnership, financial stability for the reduction of financial risks, active collaboration for improvements and development, business ethics through the Code of Conduct.

Sustainable value chains, long-term thinking and partnership, financial stability for the reduction of financial risks, active collaboration for improvements and development, business ethics through the Code of Conduct.

Adherence to laws and permits, improvements and development, long-term thinking and stability, sustainable operations and conservation of resources, measurement data and statistics.

Good to know about our sustainability story

MATERIALITY ASSESSMENT

In 2021, we worked to provide a structure to our sustainability measures. Among other things, we conducted a risk analysis (see page 34) and a stakeholder analysis (see page 36). Along with the other efforts we carried out in health and safety, environmental and quality work, these analyses formed the basis of our sustainability strategy (see page 32). Our sustainability and sustainability measures focus on three perspectives: social, environment and economy. Within these perspectives we have identified six focus areas that lie within our influence and our stakeholders’ expectations. Our sustainability strategy contains long-term goals for each focus area as well as a link to the global sustainable development goals. Short-term goals are continuously set within the framework of each business area’s business plan.

ORGANISATION AND GOVERNANCE

The Proton Group’s sustainability measures are based on the organisation’s sustainability policy and Code of Conduct, both of which have been established by the Board of Directors. The Code of Conduct covers matters such as business ethics, anti-corruption and human rights. Health and safety measures are a continuous focus based on a shared health and safety policy. We also have an equal treatment policy. The majority of the group’s policies are shared; however, each business area has its own environmental policy based on its own operations.

SUSTAINABILITY-RELATED POLICIES:

• Sustainability Policy

• Code of Conduct

• Health and Safety Policy

• Environmental Policy

• Equal Treatment Policy

• Guidelines for Purchasing and Procurement

• Company Car Policy

CERTIFIED TO:

• ISO 9001

• ISO 14001

• IATF 16949

• ISO/IEC 17025

• Safe Water

• ISO/IEC 17020 C

• SS-EN ISO 9606-1

• SS-EN ISO 14732

The Proton Group’s work is governed and monitored using certified management systems (ISO 9001 and 14001). This governance and monitoring structure also includes sustainability measures and during 2022 a sustainabiliy forum was established.The aim with the sustainability story for the group is to be able to report its sustainability measures in the future according to the Swedish Annual Accounts Act.

” Sustainability offers a fantastic opportunity to develop a company

David Gustafsson, CEO

SOCIAL

Within this perspective, we work actively with ethical and social issues, primarily from a local perspective, as this is where we are able to have an influence. Our employees are important to us, and their commitment and wellbeing is a necessity for us to develop and contribute to sustainable growth. We also care about the society where we operate, and we want to be a credible actor that provides jobs and activities that enhance the quality of life for many. A large part of this is simply good common sense and is a requirement for finding the right employees and selling our products and services.

Employees

We want to contribute to safe, secure working environments that allow our employees to grow. We want to make it possible for people with different backgrounds to work under good conditions. Through our products and services, we also contribute to greater safety for our customers’ employees.

OUR OBJECTICE

Ambassadors . In 2030 we will have satisfied employees, corresponding to a score of 25 eNPS* in the employee survey.

Safe workplace. The goal is zero workplace injuries resulting in absences. In 2030 we will have achieved 10 risk observations per incident.

Personal growth. In 2030, all employees will be offered 16 hours of training a year.

Whistle blowers. Our long-term goal is to have zero deviations leading to whistle-blowing.

GOVERNANCE AND MONITORING

This work is governed by our policy documents

Sustainability Policy, Code of Conduct, Health and Safety Policy and Equal Treatment Policy, and through our management system. The group CEO and the business area managers are ultimately responsible, and each manager is responsible for the work at their own level of the organisation. Our follow-up tools are our annual employee survey and performance reviews, as well as regular reviews and key figure follow-ups on scorecards. Health and safety is monitored daily through safety inspections, risk assessments and incident reports, which are summarised monthly in the key figures.

COMPLETED ACTIVITIES AND EVENTS

Over the past few years, we have built a solid foundation to ensure the development and health of our staff. We have reviewed and updated our Code of Conduct so that it is now more clearly aligned with our sustainability policy. We have also introduced the TIA system

for managing accidents, incidents and risks, as well as a whistleblowing system at Group level. First aid training, installation of defibrillators, an increased wellness allowance and an option to recieve a bicycle benefit have also been implemented at Group level. In connection with a company-wide leadership development programme that started in 2023, the core values were revised, resulting in four new value words. As part of the work with the core values, we train in and discuss our code of conduct, victimisation and whistleblowing. The Year of Health, initiated at Proton Lighting in 2022, has been made permanent and involves daily walks around the factory building and a monthly joint health breakfast. Work to refresh and improve staff facilities is ongoing.

CHALLENGES AND OPPORTUNITIES

As we work with industrial production in our operations, there are risks of workplace accidents and exposure to chemicals. The fact that we are a multicultural organisation with many different nationalities also poses a challenge socially and ethically, where we must constantly work to create a common understanding and be aware of language challenges and cultural differences. During the year, Proton Finishing initiated the language initiative Yrkessvenskan, where employees who are not native speakers of Swedish are given training in Swedish during working hours. The ability to work persistently with safety and the Code of Conduct is a challenge for us. Making employees aware of the issues and getting them involved in the organisation will take time and effort, and during the year we will work through and anchor our new core values in all parts of the business. We also have an extensive leadership development programme underway to strengthen the conditions for a prosperous and developing culture in our companies. We see a challenge in ensuring the working environment for our employees who carry out work at our customers’ premises and will continue to work to improve it by strengthening appropriate protective, high-visibility and first-aid equipment.

AMBASSADORS

eNPS (the Net Promoter Score) measures the company’s attractiveness, brand and popularity among employees by answering the question: On a scale of 0 to 10, how likely is it that you would recommend this organisation as an employer to a friend or acquaintance? Index from -100 (worst) to 100 (best).

SAFE WORKPLACE

Accidents and risk observations, where the number of risk observations is seen as a tool for reducing the risk of accidents.

Society

We want to contribute to a community where children and young people have meaningful free-time activities and where we can help young people to get an education, internships and jobs. So we participate in many activities with schools and associations. We also want to ensure good health and safety and environmental conditions in the workplace.

OUR OBJECTIVE

Contribute resources to community development. The goal is that by 2030 we will contribute to or participate in 100 different community development activities per year. Sustainable value chains. We will define a goal for our work with sustainable value chains for measuring according to Amfori, BSCI or a similar system. This work is underway, with the goal of having a system implemented in 2024.

GOVERNANCE AND MONITORING

This work is governed by our policy documents Sustainability Policy, Code of Conduct, Health and Safety Policy and Equal Treatment Policy, and through our management system. The group CEO and the business area managers are ultimately responsible, and each manager is responsible for the work at their own level of the organisation. Certain environment-related issues related to the immediate community are governed in part by our environmental policies and in part by the revisions and inspections linked to our permits. Currently we do not have any established systems for measuring and monitoring our goals in the Society focus area. Therefore, we do not show any key figures for them. We plan to design a system for measuring the number of community involvement activities and the value of these contributions during the course of 2024. The work of ensuring health and safety and environmental consideration in our value chains requires a careful analysis of our value chains to identify what system we need to use. This is a long-term project that will take several years.

COMPLETED ACTIVITIES AND EVENTS

Already today, the various activities of the Proton Group have a strong commitment to the local community. Primarily, we sponsor various types of activities at both Group and business level that benefit children and young people. We have also supported those in need in Ukraine through contributions to the UNHCR. We also actively collaborate with universities, vocational training programmes and primary schools by offering opportunities for internships and thesis projects of various kinds, being involved in teaching and engaging in the design and delivery of training programmes. For example, there is an ongoing collaboration with Vandalorum’s Design School for children and young people, where participants can visit Proton and take part in and try out various work steps in the manufacturing industry. Cotec Labs has a collaboration with the IF Hallby association and their active work to make football accessible to all children and young people regardless of their circumstances.The club also works actively to create a safe and inclusive environment both on and off the pitch. Exaktor has a well-established collaboration with Samhall, where people who otherwise have difficulty entering the labour market are offered jobs in production. Proton Engineering Lithuania locally supports ”Red Noses Clowndoctors International”, a non-profit organisation that spreads joy to those who need it a little extra, including children in hospitals. Proton’s commitment was recognised by the award of the ”Collaboration Company of the Year 2024” prize presented by Värnamo Näringsliv.

CHALLENGES AND OPPORTUNITIES

The fact that Proton Group is seen as an active and valuable force in society strengthens our brand among customers and stakeholders and makes it easier to find attractive labour. During the year, we will work through and anchor our new core values in all parts of the organisation. To strengthen the possibility of taking environmental, social and ethical social responsibility, work is under way on a double materiality analysis in connection with the organisation’s work on adapting to the new sustainability legislation (CSRD), where risks and opportunities from a sustainability perspective throughout the value chain will be identified.

ASSOCIATIONS AND ORGANISATIONS THAT THE PROTON GROUP CONTRIBUTES TO

• The Confederation of Swedish Enterprise

• The Swedish Electroplaters and Surface Finishers Society (SYF)

• The Scandinavian Automotive Supplier Association (FKG)

• Lagans Vattenvårdsförening (River Lagan water conservation association)

• Forsheda business association

• The Hillerstorpare community association

• Nissans Vattenvårdsförbund (River Nissan water conservation association)

• Anderstorp business association

• Interior Cluster Sweden/Föreningen svenska möbelklustret

• SPF (Svensk Pulverlackteknisk Förening) (Swedish powder coating association)

• Halland’s entrepreneurs’ network

• El-kretsen

• Sveriges Elgrossisters Service (Swedish electrical wholesalers’ network)

• SIS Standards Institute

• Värnamo Näringsliv business association

• Säker vatten (Safe Water)

• The Confederation of Swedish Enterprise Service

• FTi (Förpacknings- och tidningsinsamlingen)

• IFK Värnamo’s football school

• Värnamo Hockey

• Värnamo Tennis club

• Värnamo GIK (hockey club)

• HC Hockey Lidköping

• Skara Handbollsförening (handball club)

• Lundsbrunns golf club

• IF Hallby Football club

• Götaströms Golf club

• Gislaved Hockey club

• Lions Club

• Active school

• Hjärta för barn

• Lidköpings Riding club

• Vandalorums Design school

The collaboration between Proton Group and Vandalorum’s Design School gives students a unique insight into manufacturing and design.

JL Safety wants to contribute to the quality of life of young people through physical and social activities and therefore supports young people at Lidköpings Ridsklubb.

Behaviours that move us forward

A journey for positive change

Over the past year, a new set of values has been developed for the entire Proton Group. The work includes the entire corporate group and means that all operations and companies have been highly involved in developing the new values and behaviours that will carry the group forward.

“The background to a new set of values is that Proton has set very ambitious growth targets to meet future needs and challenges in our rapidly changing world. Strategic and operational work will fail if we do not have the right attitude and behaviour within the organisation. By living the values and letting them permeate our operations, I am convinced that we will get closer to the vision – which includes achieving

the ambitious targets we have set. Through this, we will double our turnover over the next ten years and significantly increase profitability,” says David Gustafsson, CEO of Proton Group.

From current to new situation

Around 50 leaders gathered for a few days in September last year. Theoretical and practical exercises

in groups and individually were interspersed with discussions about the current situation – with the common denominator of finding the way forward for a new situation. What we came up with was documented and compiled – to finally result in four concrete value words, where each of the words is linked to some specific behaviours.

Back to the core

Our leaders identified a number of behaviours that we need in our operations to move towards our goal. It’s about our winning attitude, our will to perform and to be first on the ball. It’s about job satisfaction, how we care for each other and energise each other. It’s about challenging our courage, daring to innovate, seeing no limitations and constantly wanting to evolve.

And it’s about how we communicate, co-operate and make each other better, how we win together. We summarise these behaviours in four words: Proactive, Team Spirit, Challenge, Collaboration. In Swedish, they form the word PLUS – which is the essence of where we come from. A positively charged particle, a proton, that wants to make a positive difference.

– What got us here won’t get us where we want to go, so we have adopted this new set of values and behaviours that we believe are the recipe to get us to the vision and goals we have set. This is a journey that all 440 Proton employees need to help with, and everyone is therefore highly involved in the work. All leaders in the Group were involved in setting the values and behaviours that would help us on this journey. And right now, work is underway with several exercises where all employees are involved and contribute,” says Mari Lundqvist, HR Manager at Proton Group.

Practise, practise, practise

Putting the new values on boards is not enough. Once the new values were agreed, the next step was to come together again – this time in smaller groups – to practice working with our new behavio-

urs. All to provide all leaders with the tools to put the exercises into play in their respective organisations and functions. At each session, we focused on two words and carried out exercises around them. When the exercises were carried out in the teams at home, a focus area was set linked to each word on which the exercise was based.

From project to process

It was a bunch of inspiring, energetic, and certainly somewhat tired, Proton leaders who went back to their organisations to set the game of exercises in motion.

– What a force it is when you gather so many competent and committed leaders. I am very hopeful about what we can achieve together through this work. Imagine several hundred employees, each of whom will contribute to Proton’s growth journey. That’s awesome! It is also important to realise that this work is not a project that we implement now and then can check off, it is an ongoing process that we should live in every day,” points out Mari Lundqvist, HR Manager at Proton Group.

The exercises resulted in a variety of ideas and plans for the future. Here from one of the exercises at Proton Finishing in Hillerstorp.

If the unthinkable happens

”Want to be the best in the industry in personal safety”

The surface treatment industry is considered heavy, dirty and dangerous. That’s why a new safety project was initiated in 2021. The goal is for the employees to have the latest personal protection equipment – and the knowledge to use it. “We want to be the best in the business at personal safety,says COO Henrik Dyberg.

Proton Finishing is currently overhauling its sustainability measures as part of its long-term strategy. Occupational safety is a top priority, Henrik Dyberg says.

“It’s part and parcel of the job. When you workwith surface treatment, harmful chemicals are used daily. Many of them can be lethal if not used correctly. That’s why we’ve launched a project focusing on personal safety.”

In collaboration with our supplier Medical Care System, Proton Finishing has taken stock of all units to investigate whether our routines and PPE (Personal Protective Equipment) can be improved even more. All employees will also take a training course.

“This isn’t about doing the bare minimum – we want to be the best in the business at personal safety,” Dyberg says. “Our aim is to have zero incidents and to make sure that everyone feels safe and secure at work.”

Immediate response is crucial

The top priority is to prevent accidents by having the right training, the right handling of

materials and the right PPE, says Markus Wahren, marketing manager at Medical Care System.

“We’ve assessed all of Proton Finishing’s facilities and examined safety when handling chemicals. For example, we made sure that staff have the right PPE: gloves, coveralls, safety glasses, facemasks and visors.”

And should anything happen, the latest equipment must be on-site to neutralise the threat or minimise the damage.

“These chemicals can penetrate the skin or the eye and get into tissues, so it is extremely important to eliminate spills and splashes immediately and use a hypertonic rinse. This means that the rinsing solution extracts the chemicals from the tissues even if they have penetrated deeply. Chemicals that can penetrate the skin or eye can otherwise continue to destroy the tissue for days.”

Carrying a personal eyewash with you that will neutralise the chemicals saves valuable time because it can be used immediately.

Vital knowledge

It is not enough to have safety equipment on site. The employees must also have the knowledge to

use it correctly.

“You need different kinds of protective gloves for different types of chemicals. You can’t just put on any glove and assume you’re protected – you need the right glove. Another detail that many people miss is that all gloves that have been subjected to chemicals must be considered single-use gloves. You can’t put them down somewhere andlet the next person use them, because they may have had a breakthrough. Many people who develop skin conditions have used old gloves where chemicals have broken through.

Everyday safety

Marie Askestam is a process and maintenance manager at Proton Finishing in Forsheda, one of the facilities with the most hazardous working environments.

“Our chemical baths range from corrosive to hot, alkaline and acidic, so you need excellent safety procedures and emergency preparedness. In our facility, safety glasses, gloves and the new eye washes are mandatory as soon as you enter the production line. It’s very important to us to know that we have the absolute best equipment.”

The production line is now also equipped with a Diphoterine® solution in the form of a portable full-body shower, not unlike a fire extinguisher.

“If you get splashed, you can strip down and wash it off immediately, instead of having to run off to an emergency shower. This type of solution can make all the difference. Because even if we know what to do to work safely, accidents do happen.”

Beautiful factories

“Personal safety is one of the most important elements of sustainable entrepreneurship,” says Maria Thom, quality and environment manager.

“We must be able to stand tall when we talk to our customers, end users and other stakeholders, and show that our work is sustainable and that

the people working in our factories are healthy and happy.

In our strategy, we talk about wanting ‘beautiful factories’ – which doesn’t just mean attractive on the surface, it means that everyone who works here is thriving.

Now, we are equipping our factories with the absolute best emergency preparedness, while our employees are being specially trained in how to act if the unthinkable happens. Being able to offer a safe and secure workplace where staff enjoy working is vital in order for us to be able to recruit and keep employees. Having a good reputation is very important to us.”

Hazardous fluids and chemicals are handled both in Proton Finishing’s lab and out in production. Here Tomas Sceponavicius is working in the lab in Forsheda. The picture was arranged for the photo shoot, when only harmless fluids were used.

The eyewash is easily accessible in a holster.

”The focus has been on advanced control for high energy efficiency”

90 percent energy savings in Malmö harbour

One control system – all the solutions. When Elinstallationer S ö dra Sverige’s “ Johan Olsson was commissioned to improve the energy efficiency of lighting in a complex project in the Port of Malm ö, the choice was obvious: Koolmesh from Exaktor

Elinstallationer Södra Sverige handles electrical installations for properties and offices throughout Skåne. The focus is on installations related to power, energyefficient lighting, IMD, data, control and regulation. At present, the company has eight employees, which means that they can easily take on larger projects while maintaining the close relationships their customers value. Johan Olsson, who founded and runs the business, says that his customers’ interest in energy-efficient lighting has increased exponentially.

“Often we deal with updating older lighting installations where you need to increase light levels but but also save energy and reduce the energy consumption at the same time.”

Collaboration is key

For several years now, Johan Olsson has been working closely with Exaktor’s Rickard Bengtsson. Together, they can keep up with the rapid technological development in their field and ensure that customers get a lighting installation that is truly optimised in terms of both energy consumption and functionality.

“For us, it’s important to have a partner who can do lighting calculations and planning that meet

my customers’ wishes. My goal is for us to exceed expectations, but also not to overshoot the target so far that we over-install,” says Johan Olsson.

The sky’s the limit

The Port of Malmö has many attractive premises with a focus on warehousing and logistics. Here, Johan Olsson and Rickard Bengtsson have won the trust of several landlords with tenants in different industries. What do they all have in common? A focus on advanced control for high energy efficiency.

“With the help of the Koolmesh control system and the Tage LED luminaire, we’ve been able to meet a wide variety of lighting needs spread over two businesses and a total of 5,500 square metres. The incredible advantage of this system is that it’s really only your imagination that limits what you can do with it,” explains Rickard Bengtsson.

Koolmesh makes it possible to cater for every possible solution in a lighting installation. The unique thing about Koolmesh is that there is a sensor in each luminaire, which provides great flexibility. The system also reacts at lightning speed, because it targets individuals instead of groups.

Foresight with a forklift

This is particularly evident at the logistics

company Nordanå Transport AB, one of the port’s tenants. Nordanå offers a complete, climate-smart logistics set-up that includes transport and warehousing. In its 4,000 square metre premium warehouse, it stores and reloads groceries for the food industry.

“Our transports are 100 percent fossil- free. Our deliveries are made with heavy, modern trucks in southern Sweden, with a focus on sustainability. A sustainable working life is part and parcel of sustainability as a whole; our drivers always come home to their families every evening,” says Anders Clarén, head of the company’s operations.

Since the facility handles food,it is BRC-classified. Among other things, this entails lighting requirements. For example, there can be no risk of glass splinters.

“Since we’re certified and have a pronounced sustainability profile, it’s important for us to also have energy-efficient lighting that can minimise our

carbon dioxide emissions. In Nordanås’ warehouse, the control system really comes into its own. The fact that there’s a sensor in each luminaire ensures faster and safer ignition, while maintaining energy efficiency,” Rickard explains.

“As soon as a sensor is affected, it signals to the next luminaire, which gives the lamps time to illuminate in tandem with the forklift. You never have to worry about the lights not being able to keep up just because the forklift is driving too fast. There will always be a wave of light that follows you as you drive.”

Work light for the atelier

Another tenant is Rekomo, which sells new and used office furniture. They also have an atelier where they renovate and reupholster used furniture, so-called “refurbishing”. Here, too, there was a wide range of lighting needs – from showrooms to warehouses and office lighting. As a circular company, it was only natural that Rekomo also wanted an energy-efficient solution.

Johan Olsson at Elinstallationer Södra Sverige and Exaktor’s Rickard Bengtsson know all about energy-efficient lighting

”

The atelier is a very good example of how it is possible to combine light ergonomics with energy efficiency.

“Rekomo’s atelier is a great example of how you can combine lighting ergonomics with energy efficiency. Here, they wanted to have a 1,000 lux work light on the work surface so that the employees would have a good light in which to do their sewing work. That’s twice as bright as the standardised office levels. But Koolmesh control keeps them energy-efficient, because the lighting is turned off when you leave the workplace,” says Rickard Bengtsson.

Energy savings of 90 percent

Because the new lighting replaced old T8 luminaires, and these often lacked any control system at all, the overall energy savings in the premises is

around 85-90 percent. But Elinstallationer Södra Sverige’s Johan Olsson also sees many other advantages.

“Since the control system is wireless, installing it is a snap and requires less material and labour. That means lower installation costs and less environmental impact. Once the luminaires are up, it’s easy to programme and control them with the app on your phone.

Safety is another important aspect

“For us, it’s crucial that a supplier can be trusted in terms of the aftermarket and warranty. Whoever supplies our luminaires and control devices has to take on their share of the responsibility.”

In Rekomo’s atelier, staff have been provided with extremely good working light, 1,000 lux on the work surface, while maintaining energy efficiency

In Rekomo’s showroom and office, Exaktor’s LED luminaire Moln has been installed, naturally with Koolmesh control.

ENVIRONMENT

If we destroy the earth and deplete our natural resources, entrepreneurship and growth will be meaningless. Within the confines of this perspective, we have chosen to focus on our climate impact for the obvious reason that it is crucial to the future of mankind. The climate is also the single most important question to our stakeholders. If we do not take our responsibility, then we won’t do business. In the near perspective, we are working on our local footprint and what we can influence in our local environment, with the aim of reducing the negative effects of our operations and creating positive change. We are sweeping in front of our own door.

Climate impact

We want to contribute to the goals of the Paris Agreement by reducing our climate footprint. As our first step, we are doing climate calculations on each part of our operations, after which we will establish a plan for how to achieve our goal of being climate neutral by 2045.

OUR OBJECTIVE

Climate-neutral. Our goal is to be climate neutral as regards scope 1 (direct emissions) and scope 2 (indirect emissions from electricity) by 2035. In 2045 we will also be climate neutral as regards scope 3 (indirect greenhouse gas emissions outside the realm of the company’s operations). Goal fulfilment will be measured using the key figure CO 2 per work hour. Energy consumption. The proportion of purchased electricity will have decreased by 40% by 2035. This goal will be measured in purchased kWh per work hour.

GOVERNANCE AND MONITORING

This work is governed by our policy documents Sustainability Policy and Environmental Policy, and through our management system. The group CEO and the business area managers are ultimately responsible and each manager is responsible for the work in their organisations. For a monitoring tool, we use key figures that are monitored annually, with the aim of doing so at shorter intervals. The key figures on electricity consumption and CO2 emissions are primarily based on purchasing data. The intent is to do climate calculations on all businesses in the Proton Group, after which we will establish an action plan for how to achieve our goal of climate neutrality.

COMPLETED ACTIVITIES AND EVENTS

Where we have control over purchasing, the entire Proton Group has used only fossil-free electricity since 2012, and since 2020 all electricity has come from renewable sources. In 2022, Proton contributed to the signing of a new contract for renewable electricity for Proton Finishing Stans 1 (operations in rented premises). Energy audits have been carried out at group

level and for organisations with significant energy consumption. We have installed electric car charging points outside most of our operations to facilitate electric car use for both employees and visitors. Cotec Labs, which handles many samples from international customers, has reduced the number of outbound freights for which it also offsets. A first very important step in our climate work is the climate calculations that have been carried out and finalised for all of Proton Finishing’s operations. This provides a good basis for improvements and the opportunity to report the climate footprint to customers per surface treated. The lessons learnt from this work form the basis for the ongoing work to make climate calculations for other Proton companies. These will be completed during the year.

CHALLENGES AND OPPORTUNITIES

Carbon dioxide emissions from our operations make up the lion’s share of our negative environmental impact, but it is also the area where we have the greatest opportunity to make changes. The energy transition is a major challenge and at Proton Finishing in Forsheda we have decided to shut down the most energy and power consuming flakes production in 2024. This creates great opportunities for alternative energy supply going forward. At Proton Finishing in Eskilstuna, a decision has been made to convert from LPG to biogas. Energy meters have been installed in the Proton Engineering, Proton Finishing and Proton Lighting operations to identify energy efficiency opportunities. Climate calculations will be carried out during the year for the entire Proton Group, which will give us a good basis for identifying opportunities to reduce the Group’s total climate footprint. Several heat recovery projects are underway to reduce our energy needs, but reducing the amount of purchased energy requires not only energy efficiency improvements, but we also need to start producing our own energy. This year, our first solar installation, at Proton Finishing Anderstorp Stans 8, is planned to be commissioned. At Group level, we will introduce guidelines for sustainable investments and carbon offsetting. We will continue to install charging points for charging electric cars in connection with all Group sites.

Key figures

CO2 FOOTPRINT (CLIMATE NEUTRALITY)

CO2 footprint, emissions per work hour.

8,1*

5,6

5,1

OUTCOME 2021 kg CO2 per work hour** (Scope 1 and 2)

OUTCOME 2022 kg CO2 per work hour** (Scope 1 and 2)

* Adjusted value from previous 6.7 due to new knowledge about emission factor biogas ** Cotec Labs, Cedoc and JL Safety not included

ENERGY

Energy, purchased per work hour.

OUTCOME 2023 kg CO2 per work hour** (Scope 1 and 2) -40%

2035

0

GOAL 2035 kg CO2 per work hour** (Scope 1 and 2)

OUTCOME 2022*

OUTCOME 2023*

* Starting position 2021: 68 kWh per working hour -28% -27%

Local footprint

We want to contribute to a better use of resources by reducing our use of materials and preventing, reducing, reusing and recycling our waste. We also work to handle chemicals responsibly to reduce negative consequences to human health and to the environment.

OUR OBJECTIVE

Waste. Our goal is to have operations that by 2035 do not generate any waste that is sent to landfill or energy recovery. Instead, we will be able to recover materials, recycle, reuse or eliminate the waste.

Candidate chemicals. Our goal is that no listed substances will be included in the chemical products we use or in the products we sell as of 2035.

Company cars. Our goal is that all purchased company cars will be of the highest environmental class by 2025.

GOVERNANCE AND MONITORING

This work is governed by our policy documents Sustainability Policy and Environmental Policy, and through our management system. The group CEO and the business area managers are ultimately responsible and each manager is responsible for the work at their own level of the organisation. For a monitoring tool, we use key figures that are monitored annually, with the aim of doing so at shorter intervals. Governance also occurs through checks and inspections regarding various environmental permits from authorities.

COMPLETED ACTIVITIES AND EVENTS

A large part of the activities carried out so far have taken place within the framework of Proton Finishing. This is in part because Proton Finishing works intensively with chemicals, and also because the company very actively pursues change measures with the aim of transforming the entire industry. These measures include soil remediation of a previously owned, now divested property in Markaryd,renovated water treatment plants and improved management of processes and water treatment plants. Investments in more resource-efficient membrane technology in the plating baths in the hanging lines

in Forsheda have resulted in a process with lower resource consumption and reduced waste. Optimisation of the process at the treatment plant in Forsheda has been implemented, which has meant that more water streams can be handled in the internal treatment plant instead of being sent away as hazardous waste. During the year, a collaborative project with a supplier resulted in the installation of purification equipment for our ZnNi rinses, which are currently sent as hazardous waste, continued tuning and adjustment is underway, which will lead to a significant reduction in hazardous waste. Exaktor has reduced water consumption in its paint shop and reduced the dust content in the exhaust air. The Group’s policy on the use of company cars has been adjusted with new conditions to increase the share of electric cars and plug-in hybrids.

CHALLENGES AND OPPORTUNITIES

The major risks in the focus area are linked to chemical management in the operations of Proton Finishing and, to some extent, Proton Lighting and Proton Engineering. Here, however, we have made some progress in creating even more efficient processes and control. Among other things, we will take stock of the use of listed substances in these three business areas and work on their substitution. For example, work is underway to change all remaining cobalt-containing passivations to cobalt-free ones, and during the year we switched to cobalt-free processes in another line. In order to create change, it is important that we are persistent and constantly implement projects that take us forward. One example is the improvement planned at Proton Finishing, which will establish a process with only passivation in the drum for zinc castings, which means a reduction in the number of process steps that the goods go through, resulting in reduced resource consumption and waste. We continue to work hard to be able to treat additional water streams in our treatment plants, recirculate streams back into the processes and increase the performance of the treatment plants to reduce emissions, hazardous waste and water consumption. Even the smaller measures are important, for example JL Safety and Cedoc will digitise their customer training materials to reduce paper consumption.

8,3% 3,9 %

COMPANY CARS

3,6%

Percentage of purchased company cars that are electric..

LIsted substances in used chemical products

CEDOC / JL SAFETY

Machine safety on the menu

Cabbage rolls, meatballs and Karin’s lasagne... The dishes from Dafgårds in Källby in Västergötland are many. Homemade and familiar is the feeling that has always characterised the company - and this is also reflected in the work environment. Working at Dafgårds should be safe and secure, which is why extra focus is placed on machine safety.

Dafgårds was the first in Sweden to prepare and sell pre-packed meatballs and is now a global food company.

”We want to get even better and Cedoc and JL Safety are obvious partners on that journey.”

Robert Johansson is responsible for machine safety and is part of Dafgård’s newly formed work environment group:

”Machine safety is crucial for us to be able to create a good working environment where employees feel safe, which ultimately contributes to a prosperous company. In this work, we have chosen JL Safety and Cedoc as our partners.”

The heart of the business

A safe working environment is at the heart of JL Safety and Cedoc’s business. Together they help their customers to create safe workplaces. JL Safety trains and consults companies in risk assessments and machine safety and Cedoc complements the offering with its risk assessment software.

Engineer Dan Assarsson co-founded JL Safety in the mid-1990s after training in the then new CE marking at Chalmers.

”Many companies found it complicated to understand and implement the new legislation and that’s where we found our niche. To make things easier for our customers, we developed a checklist that they could follow to ensure compliance with CE marking,” says Dan Assarsson.

The checklist eventually grew into a complete risk assessment software, Cedoc, which has now been spun off into its own company.

”JL Safety has extensive knowledge of machine safety and provides support when our own expertise is insufficient, in day-to-day operations and through training

programmes.

”We feel safe”

The relationship with Dafgårds goes back more than 20 years. JL Safety supports with training and risk assessment on site, both for new and rebuilt machines, and Dafgårds uses Cedoc for support.

”We feel very confident in this co-operation.

JL Safety has extensive knowledge of machine safety and supports us in our daily operations and through training programmes. We receive ongoing support in interpretation issues, for example when it comes to arbitrary guards, distances to dangerous moving parts and different types of tables. JL Safety

is also involved in driving us forward. Together we have designed a safety pyramid that visualises the current situation and the targets we have for improvement work,” explains Robert Johansson.

The food industry is very different from the manufacturing industry.

”The main difference is the hygiene requirements, which means that machines must be designed to be easy to clean. For example, maintenance staff must be able to safely access machines in all nooks and crannies.”

However,

Dafgårds has been cooking since 1937 and knows that recipes, flavours and trends change over the years.

it must be safe to work at the company and therefore great emphasis is placed on machine safety.

Ensuring compliance

Risk inventory is done on an ongoing basis with the Cedoc software as support.

”We think it works really well because everything we need is gathered in one tool. The software is structured and provides a good overview with tabs for the different areas we work with. If we just follow the document, we don’t miss anything and know that we comply with the Machinery Directive at every point. As soon as there is a new version of the directive, the software is updated. We also sometimes use Cedoc as an encyclopaedia, because the Machinery Directive and the explanations of the clauses are in the software itself.”

This is a view confirmed by Max Dahlbom, key account manager at Cedoc:

”Many of our customers appreciate that Cedoc has a structure and flow that is easy to work with. Then you can focus on the actual machine safety work and also avoid making mistakes just because it is complicated. You really know that you are ensuring compliance.”

New cooperation agreement

Conducting continuous machine safety work is crucial in order to keep up to date and comply with all new standards and directives on the market, says Robert Johansson. To ensure long-term machine safety work, Dafgårds has therefore signed a co-operation agreement, a so called Safety Concept, with JL Safety.

”This is part of our major investment in the work environment. We want to become even better and JL Safety and Cedoc are our obvious partners on that journey.”

Food, bread and coffee are made from scratch in the kitchen in Källby.

The next step towards climate neutrality

Proton Finishing is the Proton Group’s pioneer in climate calculations. In the winter of 2021, the first climate calculation was completed at Proton Finishing in Forsheda. Since 2023, all Proton Finishing companies offer climate calculations.

- ”In addition to knowing in black and white where to take action, we can now give our customers detailed information about how the surface treatment they choose affects the climate,” says process developer and team leader Joel Pierre.

Joel Pierre works as a process developer and team leader at Proton Finishing. His mission is to improve Proton Finishing’s work in the areas of occupational health and safety, environment and energy, and to run various development projects, including the organisation’s climate calculations. In the winter of 2021, work began on producing climate calculations for all of Proton Finishing’s units. At the beginning of 2023, all GHG protocols were ready and are used by customers in their sustainability reporting, for Proton Finishing’s own improvement work and are also included in quotations.

What is a climate calculation?

-”We calculate our carbon footprint by converting all the climate impacts of our activities into CO2 equivalents*. These calculations cover all our processes both upstream and downstream of the plant. They also take into account energy sources and what the products emit in CO2 before they reach us, as well as the climate impact of our waste”.

That sounds complex?

”Well, it is. The tricky thing is that climate calculations are fairly new to everyone, there is not much

* Conversion of the impact of all greenhouse gases, expressed in a converted common unit.

Joel Pierre is process developer and team leader for Proton Finishing’s development department.

to go on. But now that climate calculations have been made for all companies in Proton Finishing, we have set a structure that works and that we can continue to work from, for other businesses in Proton Group. What we have learned is that a close dialogue with our suppliers is required; the purchase of chemicals and energy constitutes a large part of the climate impact for us. Many of our suppliers have not had this information but have produced it at our request. And that takes some time and patience. By making these demands on our suppliers, we are also helping to drive development. Several of our customers have also started to make the same demands on us.”

How do you handle questions about climate footprint from your customers?

-”We use the climate calculations to produce key figures per surface-treated surface and line. This means that the customer not only gets to know the average for the whole plant, but can get detailed information about what differentiates the different processes and base their decisions on this. It’s great to be able to provide customers with climate calculations already at the quotation stage, and sometimes even earlier, which customers appreciate.”

What do the climate calculations show now that they are all done?

”The use of LPG is a huge culprit, even if we knew it before, we may not have realised what proportion it actually accounts for. But powders and zinc balls are also heavy items, partly because they are the main products but they also have the highest emission factors, so this is something we will continue to work on. We have already changed the supplier of zinc balls and made climate benefits through that change.”

Do you have any other projects underway?

-”Because gas is such a large part of our climate impact, we are looking at alternative solutions, such as electric boilers and district heating. We also have several energy efficiency projects underway at the moment, for example, we have installed electricity meters and heat meters on all lines where we can plan and control the electricity load and heat use in a smarter way and thus reduce energy use. We are also working on a project where we can reuse the heat from our curing ovens to heat the process and since powder coating requires a lot of energy, we are also testing low temperature curing powder where we hope that we will be able to cure the powder at a lower temperature to save energy.”

Surface treatment is in some cases an energy-intensive process.

”We aim to secure the Swedish energy system and increase the resilience of society and businesses to disruptions, while promoting independence from fossil fuels.

Magnus Kranz, project manager at Weldin together with Martina Wettin, founder of Nilsson Energy.

WELDIN

Collaboration that generates positive energy

Green hydrogen will play an important role in the transition to a fossil-free society. But the technology is still in its infancy and success requires many experts to work together. Hydrogen pioneer Nilsson Energy and pipe specialist Weldin have found the way forward, together.

NNilsson Energy started as a classic ‘napkin idea’ in 2016.

– We – Hans-Olof Nilsson, Pontus Lundgren and I – stopped for coffee at Café Nordpolen in Vara after a business meeting in Mariestad. As we sat there with our coffee, we started talking about the role of hydrogen in the green transition. We saw its potential and started sketching out the structure and vision for Nilsson Energy on a napkin. Since then, we have worked night and day to realise our vision,’ says Martina Wettin, who, in addition to being one of the founders, also works with strategic business and partnerships.

Today, the company has 35 employees with specialised expertise and also works with sub-consultants to create robust and safe hydrogen solutions.

– Green hydrogen and hydrogen solutions outside the industrial fence are a young industry, which means that we and the industry have had to learn everything from scratch – both what works and what does not.

But now the technology is maturing, and hydrogen has become accepted as an important solution for

the climate transition. Society and businesses have realised that hydrogen will be relevant, both as a storage medium for renewable energy and as a fuel to phase out fossil fuels.

The portable fuel cell generator generates electricity where it is needed.

Hydrogen turnkey solutions

Nilsson Energy’s business concept is as simple as it is complex: design and delivery of turnkey hydrogen solutions, including hydrogen plants for small-scale and local production to large-scale hydrogen plants for hydrogen factories. The company’s offering covers the entire spectrum from consulting services and feasibility studies to customised design solutions, construction, installation, operation and service. Customers include industrial companies currently using fossil gas in their operations, transport companies seeking their own hydrogen production for fuel supply, the automotive industry and research activities seeking their own hydrogen production for testing or fuel supply, and public organisations seeking to secure their energy supply, both in the short and long term.

Decentralisation is a key word

– We aim to secure the Swedish energy system and increase the resilience of society and businesses to disruptions, while promoting independence from fossil fuels. By implementing many smaller localised systems using hydrogen as an energy source, we create a secure energy supply and reduce vulnerability to external influences. Our focus is therefore on developing robust and safe local systems for both business and society, explains Martina Wettin.

High standards of documentation

Nilsson Energy has its development and design department in Lindholmen and an assembly plant in Säve, just outside Gothenburg. In Säve, components, control and regulation systems are assembled for hydrogen production in modular cabinets or in 20-foot containers. - ‘Installation and welding on site at the customer’s premises is carried out by us at Weldin, who also support the development of new solutions and documentation,’ says Magnus Krantz, project manager at Weldin.

Quality and traceability is a critical point because hydrogen is transported under high pressure. The pressure in the pipes can be up to 500 bar, which places high demands on materials, assembly, welding

The hydrogen detector can be used to detect and measure the presence of hydrogen gas in a space.

At the Säve assembly plant, details are finalised before being sent to the construction site for final assembly and welding.

and documentation. Everything must be traceable down to the smallest detail. We have a slight advantage here because we have extensive experience of working with the pharmaceutical and food industries, which also have high documentation requirements. Because the technology is so new, each project can be considered a pilot.

– ‘Working closely together, combining our competences, is not only a prerequisite for success. It will also be our joint contribution to driving development forward,’ says Magnus Krantz

“Good partnerships”

This is a view shared by Martina Wettin:

’The facilities we build are surrounded by complex legislation regarding fire and safety, so it feels safe to have access to Weldin’s expertise. As we operate in an area affected by climate policy, it is important that we work at a strategically high level and in good partnerships with our suppliers. For us, it is extremely important that we have a good dialogue and can follow each other’s technology development. Generosity and long-term relationships are the prerequisites for us to succeed together,’ concludes Martina Wettin.

Green hydrogen

Hydrogen is an energy carrier, just like electricity. As such, it can be used to transport, store and provide energy.

Hydrogen can be produced from many different energy sources: fossil, fossil-free or renewable. From a climate perspective, hydrogen has great potential when it is produced from solar, wind or water and can therefore be part of a renewable energy system. Today, however, almost all hydrogen used in industry is produced from fossil gas.

A more climate-friendly way to produce hydrogen is to use electrolysis, where water is converted into hydrogen and oxygen using electricity. If the electricity used comes from renewable sources, the hydrogen is then called ’green’ because it is fossil-free.

Source: Swedish Society for Nature Conservation

”One future use for hydrogen is as energy in fuel cells. A fuel cell is an energy converter that can be efficiently used to convert the chemical energy of hydrogen into electricity and heat. The residual product is clean water.”

Source: Energigas Sverige

Martina Wettin is one of the co-founders of Nilsson Energy and passionate about the green transition.

ECONOMY

Having a healthy financial base is a necessity for us to pursue our sustainability measures. This is why we work with developing our operations and services from a economic perspective to make them more circular and attractive on the market. Having sustainable growth with expanding operations and finances is also a necessity for us to offer secure, rewarding jobs, contribute resources to society through taxes and fees, and last but not least, have the muscle to pursue change projects to benefit the environment and climate.

Development

We want to contribute to inclusive industrialisation and promote sustainable innovations. By developing sustainable solutions, we can add value to our customers’ sustainability processes. With our own innovative development projects, we can also make our own operations more circular.

OUR OBJECTIVE

Sustainable products and services . In 2030 100% of the products and services we offer will be sustainability declared.

Sustainability-promoting development projects from a brand and business perspective. By offering our customers circular solutions, we make sustainability measures a natural part of our business development. In 2024, a new brand strategy will be implemented.

GOVERNANCE AND MONITORING

Through internal development and improvement projects, we can contribute to improved sustainability for our customers and our employees alike. With more circular, resource-efficient and ergonomic solutions, we can integrate the sustainability perspective in our business concept and create sustainable growth for ourselves and others. However, we cannot report any key figures today for any of our focus areas, as we lack any tools for systematic monitoring. The goal is to reflect the internal information flows that already exist at management level in our business areas and see how far we can build them up. One such example is Proton Lighting, which currently performs light and energy calculations for its customers that concretely show the link between development, customer benefit and climate impact.

COMPLETED ACTIVITIES AND EVENTS

Proton Group’s businesses currently have many established activities in this area. Proton Engineering’s development team supports automotive customers in developing new solutions for fuel conversion, Proton Finishing’s development team has been created to design new solutions for sustainability in all areas of the business and through this initiative, for example, customers of Proton Finishing now receive the climate footprint from their surface treatment directly on their quote. During the year, a collaborative project with a supplier resulted in

the installation of purification equipment for our ZnNi rinses, which are currently sent as hazardous waste, which will lead to a significant reduction in hazardous waste. Proton Lighting is developing more ergonomic and energy efficient working environments through lighting control combined with innovative LED products, effectively saving energy for customers. Within the framework of JL Safety’s activities, we offer safer working environments and machine safety. Cotec Labs, a leader in corrosion testing, ensures through its work that customers can develop products with better resistance and longevity, which in the long run can contribute to reduced material consumption and better resource management. Weldin helps its customers with solutions for energy transition and energy and raw material efficiency. The new brand strategy decided for the group has been implemented during the year. To further strengthen the Group’s sustainability work, the organisation has been strengthened in recent years with sustainability managers in Finishing, Lighting, Engineering and Group.

CHALLENGES AND OPPORTUNITIES

Being able to declare products and services as sustainable is a strong competitive advantage. We will therefore begin work on developing a system for sustainability declarations in the various operations. Examples of individual activities that can be mentioned are that Exaktor will further develop the use of light control for lower energy consumption and increased comfort and work on the development of products with more circular thinking. Proton Finishing intends to develop a more environmentally friendly pre-treatment for ED powder and a process with only passivation for zinc castings. In parallel, Proton Finishing will also implement automation and AI projects for a more sustainable business process. Within the framework of Proton Engineering’s operations, we intend to introduce requirements for recycled materials in the metal raw material, increase prototyping activities and review the washing process to be able to take on new business. JL Safety has developed a concept, Safety Concept, where customers are given prioritised resources to create the best conditions in machine safety. In order to equip the entire group for future challenges, a change of business system to Microsoft’s Dynamics system is underway.

Growth

We want to contribute to sustainable growth, where we can continue to invest in new technology, develop new products and services and develop our employees’ skills through profitable operations.

OUR OBJECTIVE

Profitability. We have a profitability goal of 6–8% over the business cycle.

Growth. We have an annual growth goal of at least 7.2%.

Solidity. We have a solidity goal of at least 35%.

Ambassadors. We aim to measure customer satisfaction in all of our business areas and to achieve a cNPS* of 25 by 2030

GOVERNANCE AND MONITORING

Our profitability is measured monthly, because the operating profit is measured the current month and the cumulative value is measured throughout the year. In the future we will measure all figures monthly, but always rolling. Until now, growth has been measured via a monthly report that compares with the previous year sales and budget. From January 2023 we will measure growth rolling over the last 12 months and in relation to the vision in the group strategy of a doubling of sales every ten years. Solidity is measured once a year.

COMPLETED ACTIVITIES

AND EVENTS In 2019-2020, Proton Group made a series of acquisitions aimed at driving the Group’s growth by broadening its offering to customers. These included the acquisition of JL Safety and Cedoc, which specialise in consulting and software in machine safety, and Anderstorps Lackeringsservice, Alsab, which is now part of Proton Finishing. With the acquisitions of Teknikrör in Kinna and Gunnar Hansson Svetsteknik, we entered a completely new area of operation, focusing on advanced pipe installations and infrastructure for the process industry. We believe that demand for qualified services in this area will increase as customers rebuild their facilities and reorganise their processes as part of their sustainability efforts. In 2023, the two companies were merged into Weldin Gothenburg AB to create better conditions for growth. In 2021, Proton Group initiated a project in collaboration with the University of Gothenburg and growth researcher

Jonas Fasth to actively drive and develop the The Group’s management team and business area managers have participated in workshops and strategy development, and work is now underway to implement the lessons learned in the organisation. Our key figures for growth and equity ratio in 2021 require a comment as they should be put into perspective with the pandemic. Growth in 2021 is strong in relation to the targets, but should be seen in the light of the loss of turnover in 2020 and the recovery that took place the following year. The strong equity ratio in 2021 can also be related to the pandemic, among other things, the government support meant a dividend freeze, which had a positive impact on the equity ratio. Projects have been conducted together with customers and end customers to jointly find opportunities for better solutions and growth. Proton Finishing’s customer event ’Sustainable together’ was a successful activity that we will continue and develop further.

CHALLENGES AND OPPORTUNITIES

Proton Group’s strategic growth target is to double turnover every ten years. We can’t do this on our own; the shift must be made in collaboration with our customers. Our challenge right now is therefore to get closer to customers in order to develop new sustainable offerings that support them both in their profitability and in their sustainability development. Among other things, we need to get involved earlier in the customers’ product development process to be able to meet and fulfil their needs through development. In order to gain an understanding of how well we fulfil our customers’ expectations, we will carry out measurements of customer satisfaction via NPS* in all companies. To grow and develop, we need to strengthen our sustainability profile through, for example, increased information and communication via customer meetings, social media and events. Based on the dialogue with our customers, we will then allocate the development resources necessary to move forward with our growth-promoting measures. Sustainable growth will not be achieved alone, but in collaboration and partnership, so a challenge going forward will be to find more partners in many different areas to strengthen our capabilities for sustainable solutions, products and services. The Group’s new brand strategy will clarify our offer and create better conditions for growth.

Key figures

PROFITABILITY As a percentage over a business cycle.

Growth researcher: Change makes companies and individuals grow”

Growth is a priority in the Proton Group’s strategy – and is also part of the group’s sustainability strategy. In 2021, a growth project was initiated in collaboration with the School of Business, Economics and Law at the University of Gothenburg. The aim is to create the change needed to achieve the group’s growth goal.

Jonas Fasth is a researcher and lecturer at the Gothenburg School of Business, Economics and Law, where he focuses on strategy and change processes in growth companies. In his research, Jonas studies the dynamics of growth to develop knowledge about the activities and processes that created it. His focus is on the actions of the managers and employees of growth companies.

In his collaboration with the Proton Group, Jonas was in charge of workshops and discussions that will form the basis of our future change work. The project was conducted at management level and resulted in a change project for which we will build support in the organisations in each of the business areas.

“The core question I’m trying to answer is: What defines a growth company?” he explains. “Growth companies are good at handling change and thinking outside the box. These are insights that greatly benefit both employees in the company and private individuals. Change makes companies and individuals grow.”

What is change?

“Change is learning. Imagine a company, or person, for that matter, being able to make maximum use of all the available resources – both those within the company and those in the world around them. The possibilities would be endless. It is theoretically possible, but in real life no one manages it, because there is something in the way. I call it the ‘understanding gap’. The understanding gap is the difference between where we are now and what we have the potential to achieve. It affects the way we think and our mental map, which is what we base our actions on as individuals and as groups. When we realise that we can do things differently, that we can change things, we reduce the gap and get a bit closer to that optimal situation.”

What does it take to succeed with change?

“If you run a business, it’s important that you have the right people. It doesn’t matter how good your ideas are if you don’t have staff who can carry them out. But with the right people you can succeed, even

if the idea is only semi-good. As a business, you need to recruit, and keep, employees who have that energy. Then, of course, not everyone has the same energy levels, and they don’t have them all the time.

Some people are going through a difficult period in their personal lives, or have other reasons to resist change. If 100 employees participate in a change process, you can bet that there are 100 different perceptions of what’s going on. All people act based on their understanding and do their very best. It’s very unusual that someone resists out of sheer spite. To create change and energy, we also need a clear framework that gives us the best conditions to work in. So we need to paint a clear picture of what goal we want to achieve and create a game plan that shows how we work and according to what values. Then all employees need to have the right conditions to act based on what they can and want to achieve. This is not about comparing performances, who does more and who does less, it’s about eve-

ryone contributing in their own way. And finally, the company must have the energy, the skill, the time and the money it takes to implement the changes. In a learning organisation, you create time and space for people to think, but unfortunately time is often lacking in organisations.”.

Jonas Fasth is a growth researcher at the University of Gothenburg.

It is our values that carry us forward”

Our core values are the foundation of Proton Engineering’s sustainability measures. “From a pure business perspective, our sustainability measures can contribute to giving our customers added value. And here, our values carry us forward and have given us a certain advantage,” says Proton Engineering’s CEO Per Petterson.

Proton Engineering is registered with NQC Supplier Assurance, a self-assurance questionnaire (SAQ) system for sustainability reporting. The system specialises in handling supplier risks in the automotive industry and according to Supplier Assurance is the most frequently used self-assurance system in the automotive sector.

Global advantage

In the latest report, Proton Engineering shows a total score of 82%, a strong result in national comparisons and even globally. The industry average in Sweden is 54% and the global average is 57%.

Proton Engineering’s CEO Per Petterson thinks that the good results are due to the company’s core values.

“We have a strong grounding in our values, and sustainability is a natural part of this. Our goal was not to get bogged down in internal measures. We have taken it a step further and begun to measure and understand our footprint on the world with the assistance of our suppliers.”

One of the areas in which Proton Engineering has succeeded particularly well is in the use of materials, prioritising recycled and traceable metal.

“Being able to procure and offer our customers recycled materials is an effective way of reducing our

and our customers’ carbon dioxide footprint, without in any way affecting the quality of the finished component,” says Per Petterson

“We do not use any environmentally hazardous chemicals in our production and we monitor the lists of harmful substances.”

The stringent requirements Proton Engineering has for their suppliers apply across the board.

“Naturally we require that they follow all conventions, laws and regulations. But we also want them to select at least three areas under the Global Compact in which they regularly measure and demonstrate improvements. We are still in the early stages of these efforts, but we have begun doing regular follow-ups of our suppliers on site.”

No management system

What brings down the total score of Proton Engineering is the working conditions, human rights and health and safety in the workplace, says Per, explaining that they do not have a management system for these issues yet.

“For companies operating in Sweden, where we have exemplary labour laws, health and safety legislation and strong unions, it has not been deemed necessary to establish management systems for monitoring these things. Everything works well

anyway. But the lack of a management system brings down our points, so we plan to establish one, such as ISO 45001, which is the management system for health and safety. But I can’t say when it will happen; nothing has been decided yet.”

Per points out that Proton Engineering has a long tradition as an industrial company with strong roots in the local community.

“The people in and around the company are extremely important to us, and we have a long tradition of offering our employees growth opportunities, both in the form of CPD and in the form of new tasks. We also work closely with the region’s universities and host at least one degree project a year.”

Future challenges

During the course of the year, Proton Engineering conducted an energy audit and identified opportunities to save energy and reduce our climate impact.

“The result is that we are currently replacing our old T8 fluorescent tubes with energy-efficient LED

“We have a long history of offering our internal talents the chance to have a career or try out new fields.”

lighting. We have carried out a major investment to recover heat from automatic welders and can thus use the heat to heat the building. The next step is to see what opportunities there are around our compressors and recover waste heat.”

Other improvement opportunities that Proton Engineering has identified are in IT security, although this is an issue related to group-level management.

From a financial sustainability perspective, Proton Engineering, like many other companies, faces major challenges.

“There is great uncertainty, with worries about rising inflation and prices of everything from materials to energy and transports. This is unfortunately a situation we can’t remedy just by saving; for us it’s about working efficiently and balancing our costs according to what is reasonable. We have to find a way to ensure that everyone in the supply chain, all the way to the end customer, has the opportunity to generate a profit and we can share the increased costs. This is a giant challenge now, for us and everyone else.”

CEO Per Petterson

NQC Supplier Assurance, SAQ

Self assurance system, 2023 result

Company management

Working conditions and human rights

Health and safety

Business ethics

Environment

Supplier dialogue

Responsibility when purchasing raw material

COTEC LABS

Our skills contribute to products that last longer”

The

ability to create change through others is Cotec Labs’ most important contribution to sustainability.

“With our tests, we contribute to reducing the throw-away mentality worldwide,” says CEO Stefan Gustafsson-Ledell.

“Globally, corrosion damage in industry is said to correspond to about three per cent of a country’s GDP; the same is true in Sweden,” says Stefan Gustafsson-Ledell. “That’s a huge amount of money, and a massive environmental impact, when all those parts need replacing.”

Great

demands and tough conditions

Cotec Labs in Bankeryd is considered one of the leading laboratories in the industry for corrosion testing. The business is based on the concept of testing according to applicable requirements regardless of where in the world the product is used, whether for high temperatures and humidity or cold climate and salted roads.

The business is accredited to ISO/IEC 17025, certified to ISO 9001 and 14001, and a member of the international ILAC network. The facility in Bankeryd has the equipment and expertise to conduct tests using over 200 different methods corresponding to a variety of industry standards and requirements. Cotec Labs has customers in many of the world’s leading truck and vehicle manufacturers and their customers worldwide. It also has customers in the furniture and manufacturing industries.

Lasts longer

For Stefan and his colleagues, the core operations – the services – are Cotec Labs’ significant contribution to a more sustainable society.

“If we can verify the effect and the requirements for the surface treatment, we contribute to ensuring that our customers’ products last longer. Many of our customers have also started looking at their surface treatment methods to see if there are more environment-friendly processes that give the same or better results. Our tests help them with that. I also like to think that our flexible attitude and stringent requirements contribute to spreading knowledge and changing attitudes and methods on other markets around the world.”

And Cotec Labs’ customers confirm this. Patrik Gustafsson is Head of Cab & Bus Body, Materials Technology, YTMR, at Scania:

“The market today has zero tolerance of corrosion damage, both aesthetically and in terms of corrosion affecting function. Scania is a premium brand, so we do not permit any kind of corrosion on our products. Corrosion testing our components in different environments is necessary to ensure the quality of our products over time, and therefore also

”With our tests, we contribute to reducing the throw-away mentality worldwide.

an important part of our sustainability measures. By making sure that our components meet the requirements of our standards, we can achieve the premium level we strive for. Scania has approved Cotec Labs to conduct corrosion tests because they meet our extremely high demands for quality, reliability and delivery.”

Thomas Rönnblom, Global Test Manager at IKEA, has similar thoughts:

“Regularly testing the quality of our products’ surfaces as regards corrosion and adhesion is a necessity for maintaining high quality, no matter where in the world the product will be used. There is also a strong sustainability argument, because high quality means a long lifespan.”

People in focus

Environmental impact in the operations is limited.

“We use chemicals in some of our tests, but a very small volume and the handling is well documented and regulated under our ISO 14001 certification. Salt water is our biggest consumable,” Stefan continues. The transport of samples from Swedish and international customers to the lab in Bankeryd is the part of

the operations that generates the greatest climate footprint, but there are no precise calculations of how great it is.

“However, we do have established methods for limiting transport emissions as much as possible. We have extensive information routines to ensure that our customers send us the right samples and the right number of them to avoid unnecessary transports. As standard, we do not send the samples back; we take it upon ourselves to recycle the materials. All transports are carried out by logistics companies that offset their climate impact.”

Because Cotec Labs is a service company, its employees and their skills are a priority element of sustainability.

“We have a major focus on the people in our organisation and work hard to be able to offer a good, safe working environment for the individual to be able to develop. We want our employees to stay and contribute for a long time.”

CEO Stefan Gustafsson-Ledell

Cotec Labs in Bankeryd is considered one of the leading labratories in the industry for corrosion testing. It has the equipment and expertise to conduct tests using over 200 different methods corresponding to a variety of industry standards and requirements.

Box 1002, 331 29 Värnamo, Sweden +46 370-69 56 20, info@protongroup.com protongroup.com