Sustainability Report 2022

2022

SUSTAINABLE COPPER SOLUTIONS

With an annual production of 300 000 tons Elcowire is one of the largest manufacturers in Europe of copper wire rod, wires, stranded conductors, profiles and overhead catenary systems made from copper, copper alloys and aluminium. The profiles can be formed into virtually any shape and dimension.

THE YEAR 2022 IN BRIEF

NEWS 2023:

• Increased market demand for Low-carbon Copper

• Increased order intake for Low-carbon Copper

ELCOWIRE’S LOW-CARBON COPPER SOLUTIONS:

LESS THAN HALF OF THE GLOBAL AVERAGE CO2 PER KG OF COPPER, READ MORE ON PAGE 8

400 EMPLOYEES

1 265 MEUR NET SALES

EPD– ENVIRONMENTAL PRODUCT DECLARATIONS READ MORE ON PAGE 33.

CEO Paul Gustavsson comments on 2022, the outlook for 2023, and on the strong ambition to make Elcowire an outstanding and sustainable partner for companies that are key to the ongoing energy transition and electrification in our society.

With a challenging 2022 behind you, could you comment on the outcome and give Your expectations for the year 2023?

Our operations are energydemanding, and as we all know these costs skyrocketed in 2022. We did our best to transfer cost increases to the market, but did not succeed entirely, which affected the outcome of the year. However, energy cost-related

risks have now been eliminated with a new price strategy which has been accepted by our customers.

With our offering of Lowcarbon Copper solutions, and our range of products and solutions supporting electrification as well as the transition into renewable energy, Elcowire has a very solid platform to act from in 2023. We see clear indications of strong

demand, far better than in 2022. Mostly, this demand is about products for infrastructural projects, and from the energy and cable industries, but also within solar, wind and in general electrification.

CEO PAUL GUSTAVSSON

”OUR OBJECTIVE IS TO BE THE MOST SUSTAINABLE COPPER PARTNER FOR THE CUSTOMER, WITH PRODUCTS THAT HAVE THE LOWEST CARBON FOOTPRINT IN THE MARKET”

What is your idea about the rate of progress for Low-carbon Copper, which is a strong feature in Elcowire’s offering?

The Dogger Bank project, currently the world’s largest offshore windfarm, has become a real breakthrough for Low-carbon Copper. The project has generated further inquiries for sustainable copper solutions, such as for charging stations in the UK and for transformers for renewable energy projects.

Building on this progress, we want our customers to be aware of the size of the CO 2 footprint for the products we supply, what we are doing to reduce it and by how much, year by year. This is why we are preparing environmental product declarations for our copper products and solutions. Our target is to be the most sustainable copper partner for the customer, with products that have the lowest carbon footprint in the market. I think we should learn from other industries such as aluminium and steel, where there has been a lot of attention and focused work on reducing the carbon footprint.

How has the integration of the Hettstedt operations (former KME) developed since the acquisition last year?

Yes, since March 1, 2022, we have added a new entity to our group with around 200 employees and a modern rod mill. By covering good parts of central and eastern Europe, this acquisition strengthens our Business Unit Rod considerably, as well as adding a large capacity of Wire & Strands solutions, also the basis for a new business unit.

Overall, the Hettstedt team has integrated well in our group and there have not been any changes

with regard to customer coverage, since we did not have any overlaps – hence the acquisition has added one to one to what we did have before the acquisition. During the year, we have built up a local management team and initiated best practice sharing initiatives between the Helsingborg site and both our Hettstedt sites.

And what is there to add about the new business unit?

With the acquisition, we added the Business Unit Wire & Strands to our group, headed by Christoph Busch, who has more than 25 years of experience in the company. The most important benefits we have identified are a large potential both in terms of efficiency gains in the operations, and in increasing capacity in the areas which serve the solar power and charging cable markets.

Where do you see the best market opportunities for Elcowire, in the short/medium term?

In 2023 and for the coming years, we see an increased demand for all our Business Units driven by the ongoing transition in the infrastructure and energy sectors. In particular, BU High Voltage serving the large cable manufacturers should be taking a big step forward in the years to come, BU Rail will maintain the market leadership and BU Specials is developing its pipeline which, if it materializes, will grow substantially.

And where do you see the biggest challenges?

We are a very operations-driven company and will therefore need to increase our productivity to be able to really thrive from the increased demand situation.

Together with securing access to raw material, these are our main priorities for the time being.

Beside Low-carbon Copper solutions, where else does sustainability fit into the Elcowire agenda?

Our Group sustainability work is no news to us, and in fact has its origin about ten years back. In Elcowire, we have high ambitions across the whole sustainability agenda and are already starting to prepare for the upcoming EU regulations and standards.

With regard to reducing our carbon emissions, we have a focus on all three scopes. And, we are implementing the same sustainability agenda in the new Hettstedt operations as we have been pursuing in Helsingborg and Hettstedt Rail.

On a general level, we should notice that the copper industry takes sustainability seriously and is starting to really mature in this aspect. This is good for the industry. However, beside the general frameworks, I think the copper industry will also need its own acknowledged standards to relate to, such as The Copper Mark, promoting a responsible production of copper. These are industry initiatives in which Elcowire plays a vital and influential role.

CEO PAUL GUSTAVSSON

COMPANY OVERVIEW

OUR BUSINESS UNITS

BU ROD

BU Rod has an annual production capacity of 300 000 tons of pure and silver, tin- and magnesium-alloyed copper wire rod.

BU Rod is one of the largest manufacturers in Europe with continuous cast and upcast in rod dimensions 8–30 mm.

BU WIRE & STRANDS

Our drawn wire products cover a diameter range between 8 mm and 0,05 mm. They are made from Elcowire continuous cast wire rod.

BU Wire & Strands manufactures our wires in compliance with European and international standards.

BU RAIL

BU Rail serves the worldwide market for overhead conductor material, including catenary and contact wires, feeder, stitch, jumper and earthing wires.

Our products are suitable for all speeds of operation and support sustainability in railway design.

BU HIGH VOLTAGE

BU High Voltage’s conductor materials are being used in cables for interconnections, off shore wind parks, underground power links and other applications.

BU High Voltage offers our extensive knowledge and products primarily to manufactures of high voltage and extra high voltage cables.

BU SPECIALS

BU Specials is a leading provider of drawn and extruded profiles used in various applications for energy transmission.

BU Specials is supporting our customers to build up renewable energy transmission systems.

OUR PRODUCTION SITES

HELSINGBORG, SWEDEN

We specialise in producing wire rod with high surface quality suitable for extruded products.

• Casting & Rolling

• Extrusion

• High voltage cable conductors

HETTSTEDT, GERMANY

We specialize in production of cast wire with very high drawability and for special applications such as oxygen-free, highly conductive copper wire

• Casting & Rolling

• Single and multiple wire

• Stranded wire

We are also the specialists and have the complete processes for production of overhead contact lines

• Casting & Rolling

• Drawing and Stranding

• Contact wires

• Catenary wires

• Dropper wires

• Earthing wires

OUR HISTORY

Our roots date back to the early 1800s as a mechanical workshop. In 1918, there was a new focus on electrical products and the manufacturing of motors and transformers, in particular. This included the addition of new manufacturing technologies.Together with our main customers and suppliers, we have built up a strong and consistent reputation for innovation. We call this the power of continuous improvement.

MANNHEIM HETTSTEDT

HELSINGBORG HETTSTEDT

1799 Count Eric Ruuth establishes a foundry in central Helsingborg

1800 First cast of iron

1920 Division of Elektromekano

1953 Independent company Elektrokoppar; 75% ASEA, 25% Ericsson

2007 Acquired by Liljedahl Group

1899 Isolation AG, Insulated Wire Factory

1970 Becomes a part of the new founded Kabel und Draht Group under Brown Boveri & CIES’ ownership

2007 Acquired by Liljedahl Group

2020 Production and products relocated to Helsingborg and Hettstedt

1990 Founded as Joint Venture between Walzwerk Hettstedt and Felten & Guillaume Cologne as HFB GmbH

2009 Integration of HFB into the NKT cables/ NKT organization

2019 Acquired by Elcowire Group to be operated as business unit: Elcowire Rail

2022 The wire business of KME Mansfeld (MKM) acquired by Elcowire Group and to be operated as a new business unit: Wire & Strands

”LESS THAN HALF OF THE CO2 EMISSIONS PER KG COPPER COMPARED TO STANDARD COPPER”

Low-carbon Copper plays an important role in the transition to achieve the goal of net-zero CO 2 emissions by 2050 set by the EU.

ACCELERATE YOUR JOURNEY TOWARDS A LOWER CARBON FOOTPRINT

The reduced CO 2 emissions of our Low-carbon Copper have been validated scientifically, see details on p. 33, and will help our customers to achieve their emission reduction targets faster and more efficiently.

As one of Europe’s leading provider of copper wire products Elcowire is devoted to supporting our planet’s shift to greener energy sources and raw materials. We focus on developing solutions that enable electrification of transport, expanding solar and wind power sources and the widespread growth of a modern and sustainable infrastructure. The use of Low-carbon Copper in our production is a great move towards that goal.

HOW IT IS ACHIEVED

The copper cathodes that we use in our production come from mines and smelters mainly in

Scandinavia but also from other parts of Europe. In our responsible sourcing, we only cooperate with contractors that has a proven agenda for sustainable operations.

The new Low-carbon Copper has been made possible by a very efficient ore concentration

process and a world-class green energy mix.

Elcowire wants to set an example by producing semifinished and finished products that have a low impact on nature and the climate. And we are proud to be on board in that transition.

Our EPDs can be downloaded from our website, elcowire.com

THE CORE COMPONENT

THE BUSINESS UNIT TODAY

The BU Rod business is totally focused on rod for electrical current purposes supplying to:

• Leading cable customers, serving mainly construction, installation, automotive and power transmission markets.

• Leading enamelled and winding wire producers.

• Other Business Units within Elcowire.

Rod 8 mm – Continuously casted and rolled, high conductivity, produced from Grade A copper cathodes according to EN-1977 and ASTM B 49 standards or according to customer specifications.

ROD, STANDARD 8 MM ROD, ABOVE 8 MM OXYGEN FREE COPPER

FREDRIK ADLERCREUTZ HEAD OF BUSINESS UNIT ROD DELIVERED TONS

How does BU Rod look right now and how do you want it to develop in the next few years? With its wire rod products in pure copper as well as alloys, BU Rod is one of the largest rod producers in Europe, something that has been further accentuated with the acquisition of the Hettstedt North operations.

Wire rod can be further processed into drawn or stranded wires or extruded into rectangular wires and profiles. The main external customers for BU Rod are large cable producers, and the demand for rod products reflects the strong market needs from the ongoing electrification in society and in other industrial applications, as well as the large cables needed for infrastructural projects, such as for wind and offshore windpower generation. Of course, BU Rod’s large cable producing customers are involved in these kinds of projects. There is also a strong trend for finer dimensions of wire present in Automotive and Healthcare & Medical, where the wire can be used in pacemakers and other precision instruments.

What are your BU’s greatest advantages creating value for customers?

We have the quality, the dimensions, the alloys – such as with silver or tin – and the sustainability properties that customers are already asking for and will continue to demand.

The acquisition of Hettstedt has added rod capacity to BU Rod, but maybe even more importantly, sales capacity, technical competence and experience. For customers in Central and Eastern Europe especially, this has made a lot of difference. Capacity is important, but even more so is the knowledge of new Elcowire colleagues in Hettstedt that we will be able to benefit from going forward.

Any challenges to the vision? What is your strategy?

With 2022 having been a challenging year on various levels: energy price spikes, war in Europe, and supply chain ruptures, from 2023 things will improve. Business models have been updated and we will manage energy price changes transparently with customers.

Gradually, BU Rod delivers

ROD FOR SUSTAINABILITY

more and more to internal customers such as BU Wire & Strands, and BU High Voltage, something which also is very positive, as it means that Elcowire advances up the value chain.

How does sustainability come into your strategy?

We will continue to develop and show how Low-carbon Copper has a much lower carbon footprint than standard copper. We have delivered it to the Dogger Bank C wind farm project and other customers, and we expect low-carbon copper sales to step up considerably with large ongoing similar projects in Germany, Austria and finally also here in Sweden. I also want to emphasize another less obvious sustainability aspect: to have sustainable relationships with your customers. It’s really important and essential on our sustainability journey.

Elcowire’s ”Low-carbon Copper” or “Recycled copper” rod products have been produced using copper cathodes enabling a significant reduction of CO2 emissions – more than 50 percent per kg, see pages 8-9 for more facts. Copper will play an important role in the sustainability transition to achieve the goal of net-zero CO2 emissions by 2050 set by the EU.

POWER ENGINEERING

THE BUSINESS UNIT TODAY

THE BUSINESS UNIT TODAY

Elcowire’s conductor materials are being used in cables for interconnections, offshore wind parks, underground power links and other applications.

Elcowire’s production plant for wire & strands enables us to manufacture cast wire for special applications such as oxygen-free, highly conductive copper wire with a copper content of more than 99.95%. This is used in cables employed in the electrical and automotive industry as well as telecommunications.

Typical areas of use:

• Primary material

• The company has long experience with conductor material for these types of high voltage applications, with capabilities for both copper and aluminium conductors in various shapes and sices.

• Lightning protection / earthing

• Power engineering

• Heavy current engineering

• Solar power

• Wind power

• BU High Voltage counts the leading cable manufacturing companies as customers. In collaboration with the customer, Elcowire produces various types of conductors depending on the requirements of the cable, its specification and installation environment (AC or DC, insulation, laying depth etC.

• Offshore / submarine cables

• Automotives, rail, aviation, space

• Low and high-frequency cables

• Packaging industry (copper welding wire)

How does BU Wire & Strands look right now and how do you want it to develop in the next few years?

BU Wire & Strands comprises a large spectrum of wire products ranging from single wire (diameter between 0.30 and 8 mm) to multiwire starting at a wire diameter of 0.05 mm and variants where wire is grouped or twisted into bunches and strands. Such strand configurations add physical flexibility to the final cable product. Although BU Wire & Strands is the “newcomer” among Elcowire’s business units, and one of the outcomes of the acquisition of Hettstedt activities in March 2022, the capacity to produce similar electric conductor products has existed in Helsingborg long before that. However, the wide product portfolio in Hettstedt provides synergies and additional opportunities to the whole Elcowire Group.

So, cable manufacturers are the main customers, and the end applications vary between automotive/mobility solutions to building infrastructure solutions as well as various “green” or sustainable solutions for the ongoing transition into renewable energy sources, such as solar applications, and a

SINGLE & MULTIPLE WIRES, BUNCHES AND STRANDS

lot of other industrial applications. Geographically, our main markets are in Europe: Central Europe, Scandinavia, Switzerland and the Balkan countries.

What are your BU’s greatest advantages creating value for customers?

One great advantage is our capacity covering a large wire product portfolio to make solutions made to customer’s order and individual product specifications with their benefits for the final product, such as tin-plated wire for green energy solutions, although bare copper solutions are still an obvious need, for example for cars.

Any challenges to the vision?

What is your strategy?

Production capacity is still a limitation for us. With the ongoing energy transition there is certainly a strong and growing demand where we may be able to advance from low-margin products to those with better margins.

Our aim is to further develop being the basic supplier or partner of drawn wire for current and future cable manufacturers. Historically, we have also been a gap filler for them, or adding extra capacity to do

SUSTAINABLE ENERGY GENERATION

the job customers temporarily couldn’t do themselves.

Looking at how we actually meet or will meet new customers, we get a lot of customer inquiries over the Internet, otherwise we meet them at exhibitions or by looking at and addressing competing products and relationships.

How does sustainability come into your strategy?

Of course, Elcowire’s development of Low-carbon Copper solutions is a positive thing, and does get more and more attention including customer inquiries, especially from bigger customers.

In general, solar applications and applications for the development of the energy grid are moving fast at the moment, which is good for us. This industry’s demand for our products has been positive but at the same time really volatile in the past.

Automotive customers are at the forefront of the energy transition and are often asking for the best of the best from their suppliers. The electric car revolution is here but it still has some hurdles to pass. Charging infrastructure is one of them, very visible for example here in Germany.

CHRISTOPH BUSCH HEAD OF BUSINESS UNIT WIRE & STRANDS

DELIVERED TONS

Elcowire plays an important role to satisfy the market demand, mainly with our tin coated wires or solar- and charging cable applications, to generate and transfer energy more efficiently and sustainably in order to reach global CO2 targets. ”

INNOVATIVE PRODUCTS AND PROCESSES

Our unique Valcond and Valthermo alloy-based contact and messenger wires are both economically and ecologically smart solutions. The choice between materials is typically dependent upon train speed – up to 250 km/h (Valthermo) and high-speed above 250 km/h (Valcond).

THE BUSINESS UNIT TODAY

Elcowire Rail offers both standard materials and customized solutions for efficient overhead contact line systems for electrically powered rail and electrified road traffic.

• Active worldwide, with a strong foothold in the central European region, the BU Rail business is focused on a portfolio of efficient overhead contact line systems, the base for electrically powered rail and road traffic.

• BU Rail also offers a wide range of product-related services, such as technical consulting, training material, product investigations, calculations, on-site measurements, recommendations for material, drum selection and installation.

• Contact wires are used in rigid overhead conductor rail systems, but also in promising e-highway and e-mobility systems such as for trolley buses or trucks.

JAN SIEBERT HEAD OF BUSINESS UNIT RAIL

How does BU Rail look right now and how do you want it to develop in the next few years?

Elcowire’s BU Rail is a truly international player with a delivery history in more than 50 countries. Our contact wires, catenary wires, dropper wires and earthing wires are in commercial service around the world supporting our customers to achieve their performance, availability and sustainability targets in public and freight transportation.

From 2012, we have successfully introduced our groundbreaking innovative alloy material under the brand “Valthermo” which has been adopted by numerous infrastructure owners around the world. Key benefits of Valthermo are extended useful life in combination with increased conductivity.

It is our ambition to contribute to a more sustainable environment by offering advanced materials and processes to reduce CO 2 emissions and energy consumption. Our second material “Valcond” for application in high-speed train systems, combining increased mechanical strength and

CONTACT WIRE STRANDED CONDUCTORS

conductivity, has been launched already and will soon be followed by “Valflex” with increased fatigue resistance.

What are your BU’s greatest advantages creating value for customers?

We offer our service and support to infrastructure owners, designers, planners and installation companies regarding standard and advanced materials to improve the environmental performance of transportation systems. Based on this, superior material properties form the basis to efficiently increase useful life, systems reliability and availability and the overall environmental performance. Significant savings can be realized by our customers, which is based on proven data provided by Elcowire.

Any challenges to the vision?

What is your strategy?

Historic and proven specifications of older solutions are often preventing the introduction of innovation. Our vision and plans for a greener transportation set-up are, however, strongly supported by

megatrends, such as increasing urbanization, mobility of people and the societal need to reduce energy consumption and greenhouse gas emissions. To support introduction of our innovation, it is our plan to actively provide potential customers with specification support and tools to calculate environmental benefits and effects on total cost of ownership.

How does sustainability come into your strategy?

The societal need to handle energy with increased effiency and effectivity is obvious. Politicians around the world therefore prioritize passenger and freight transport on railroad systems. The electrification of rail as well as road transportation is a safe and efficient way to reduce energy consumption and CO 2 emissions. We will therefore continue to innovate our materials and processes and to support our global customers on the common journey towards greener transportation.

ELECTRIFIED RAILWAY FOR SUSTAINABILITY

Elcowire’s overhead contact line solutions are part of tomorrow’s sustainable rail traffic. They have the potential to significantly contribute to reaching ambitious climate targets. By selecting the right alloy and product performance – electric and mechanical – rail operators are getting prepared for the sustainability transition to achieve the goal of net-zero CO2 emissions by 2050 set by the EU.

DELIVERED TONS

LARGE INFRASTRUCTURAL PROJECTS

THE BUSINESS UNIT TODAY

THE BUSINESS UNIT TODAY

Elcowire’s conductor materials are being used in cables for interconnections, offshore wind parks, underground power links and other applications.

Elcowire’s conductor materials are being used in cables for interconnections, offshore wind parks, underground power links and other applications.

• The company has long experience with conductor material for these types of high voltage applications, with capabilities for both copper and aluminium conductors in various shapes and sizes.

• The company has long experience with conductor material for these types of high voltage applications, with capabilities for both copper and aluminium conductors in various shapes and sices.

• BU High Voltage counts the leading cable manufacturing companies as customers. In collaboration with the customer, Elcowire produces various types of conductors depending on the requirements of the cable, its specification and installation environment (AC or DC, insulation, laying depth etC.

• BU High Voltage counts the leading cable manufacturing companies as customers. In collaboration with the customer, Elcowire produces various types of conductors depending on the requirements of the cable, its specification and installation environment.

• Examples of projects that we delivered to during 2022: Sydlink, Champlain, Dogger bank, Hertel, Neuconnect, Adnoc.

How does BU High Voltage look right now and how do you want it to develop in the next few years?

In general, Elcowire’s BU High Voltage serves a well established and quite consolidated market of HVDC cable producers. It is all about copper and aluminium extruded and drawn profiles for large power transmission cables used in the ongoing green energy transition, for example, windpower projects where cables are either buried underground or in offshore environments.

The green energy transition is a global trend, and it will drive industry growth for a rather long time ahead. In this market Elcowire is well positioned, especially in Europe which we consider being our home market.

What are your BU’s greatest advantages creating value for customers?

We keep very close relationships with our customers, to

COPPER CABLE CONDUCTORS ALUMINIUM CABLE CONDUCTORS

show the required flexibility and agility they need in ongoing business. Further to this our development and production processes allow us to be very quick in cases of new or updated product demands. Be it dimensions material quality, resistivity or other key properties, we are there to capture those needs and develop solutions accordingly.

Any challenges to the vision? What is your strategy?

Our main strategy is to follow our customers in their development, keep very close to them and to grow together with them. So, we need to continue being their credible partner. Having that said our business is, as most are, always challenged and we need to stay on top of our game to maintain relevant and competitive, in every aspect.

How does sustainability come into your strategy?

The main sustainability factor

SUSTAINABLE ENERGY GENERATION

for us is the product carbon footprint. We have brought Low-carbon Copper into our offering, and we will see a lot more of this sustainability requirement coming from the customer side in the future. It is certainly a competitive advantage for us.

Another aspect becoming more and more visible is on recycling policy – how we will be able to recycle end-of-life products, keep track of what is in them and be able to sort them for recycling into bulk materials and special purpose materials respectively. There are of course some thought processes and work to go through before we are actually there.

MIKAEL JOHANSSON HEAD OF BUSINESS UNIT HIGH VOLTAGE

DELIVERED TONS

Elcowire plays an important role to satisfy the market demand to generate and transfer energy more efficiently and sustainably, to reach global CO2 targets.

SUSTAINABLE COPPER FOR AN ELECTRIFIED FUTURE

THE BUSINESS UNIT TODAY

BU Specials is developing and delivering extruded and drawn profiles in various shapes, sizes and variants.

• The BU develops and delivers extruded and drawn profiles in various shapes and sizes, often custom-made to customer requirements for use in their applications for energy transmission in vehicles, machinery and components. Current customers include automotive and health & medical industries, as well as energy producers and others involved in the green transition of society

• The product offering comprises a standard set of products as well as custom made designs, dimensions and materials.

How does BU Specials look right now and how do you want it to develop in the next few years?

BU Specials is our most recent business unit. The BU develops and delivers extruded and drawn profiles in various shapes and sizes, often custom-made to customer requirements for use in their applications for energy transmission in vehicles, machinery and components. Current customers are automotive and health & medical industries, as well as energy producers and others involved in the green transition of society. We have an established stock of customers, and many prospects.

Being a newly established business unit the primary focus lays at business development activities that aims to map and further define the market boundaries for the BU. Our home market so far is Europe, but we do have important partners in the US that we will maintain and develop further.

What are your BU’s greatest advantages creating value for customers?

Our proximity to the customer

and our ability to turn their needs into solutions are the most important parts. We always need to demonstrate flexibility in our way of producing their desired type of solution.

A great advantage is our ability to serve customers with unique conform shapes using own machines and our own casted pre-material and tooling. This allows us to have full control of the process from raw material to finished product, including machine and tool design.

Any challenges to the vision? What is your strategy?

The main challenges are all about how well we can adapt to future customers needs. In health & medical, just to give an example, you must sometimes for super conductor solutions use special cathodes as raw material, with high requirements on the purity of the material. To be able to deliver according to such requirements, some of our production processes will have to be refined and adjusted.

The primary focus of the strategy is to continue the

RENEWABLE ENERGY SYSTEMS

business development activities and further build the customer base in chosen segments.

How does sustainability come into your strategy?

The CO 2 footprint is of course an important factor, which includes solutions made from recycled raw material and cathodes produced with a very low CO 2 footprint, so called Low-carbon Copper. Market interest for these solutions is high and we see more and more specific requests related to Low-carbon Copper. Further to this, Business Unit Specials, just as Elcowire Group, is constantly striving for sustainability in every aspect of our operation. Focus for sustainability tends be on the environmental aspects but to us it has a much broader meaning. We strive for sustainability in the whole value chain, and not least we strive for sustainable and long lasting relationships with all our stakeholders (suppliers, employees, customers, owners and other business partners).

We are supporting our customers to build up renewable energy transmission systems. Given the green transition and ongoing electrification of many industries the business unit has an interesting growth plan going forward.

MIKAEL JOHANSSON HEAD OF BUSINESS UNIT SPECIALS

DELIVERED TONS

WIRES, ALLOYS, PROFILES

A BREAKTHROUGH FOR LOW-CARBON COPPER

Dogger Bank C, the world’s largest offshore windfarm

FIRST DELIVERIES OF LOW-CARBON COPPER STARTED DURING THE YEAR

Dogger Bank, once a land mass uniting Britain with continental Europe, but since the last Ice Age a well-known sandbank, is the stage for an impressive renewable energy project, the world’s largest offshore wind farm. After completion the wind park will power the equivalent of 6 million British homes.

Low-carbon Copper will be used for the high-voltage cables at connecting the windfarm to mainland. Since Low-carbon Copper causes less than half of the carbon emissions over its production processes, compared to the global average footprint for standard copper, the overall CO 2 reductions (23 000 tons) are equivalent to 7 700 average family cars driven for one year*.

*an average family car emits about 3 tonnes of CO 2 every year.

The carbon emissions reductions from using Low-carbon Copper include:

Step 1: From copper mines using electrified production

Step 2: Producing the copper wire within Elcowire’s lean production methods

Step 3 & 4: Producing the highvoltage cable and placing it on the seabed

WHAT IS LOW-CARBON COPPER AND HOW IS IT ACHIEVED?

The copper cathodes that Elcowire uses in its production come from mines and smelters in Sweden, Finland and Norway.

Production there has undergone a substantial transformation due to electrification and automation of various stages of

ACCELERATE YOUR JOURNEY TOWARDS A LOWER CARBON FOOTPRINT

the process.

The Low-carbon Copper has also been made possible by a very efficient ore concentration process and a world-class green energy mix. ”Elcowire sets the example by producing semifinished and finished products that have a low impact on nature and the climate. We are proud to be in the lead for this transition,” says Paul Gustavsson, Elcowire’s CEO.

The reduced CO 2 emissions of Elcowire’s Low-carbon Copper have been validated by third party, and will help customers to achieve their emission reduction targets faster and more efficiently. Paul Gustavsson comments: ”As Northern Europe’s leading provider of copper wire products Elcowire is devoted to supporting our planet’s shift to greener energy sources and raw materials,” he says. ”We focus on developing solutions that enable electrification of transport, expanding solar and wind power sources and the widespread growth of a modern and sustainable infrastructure. Offering Low-carbon Copper solutions from our production is a great move towards that goal.”

CO2 reductions from using Low-carbon Copper is equivalent to 7 700 average family cars driven for one year.

SUSTAINABLE OPERATIONS

Many ways forward for Elcowire operations

Eszter Dean, COO and General manager for the Helsingborg site and Carsten Hohmann, Operations Manager for the Hettstedt describes an exciting development on many frontiers: efficiency, safety, circularity and learning.

The year 2022 had many different faces for Eszter Dean: a new site in Hettstedt, Germany to start integrating into the vision of bringing the whole supply chain staff under one roof, energy challenges leading to new plans and potential solutions for the production, safety work progressing as well as general sustainability and circularity – the agenda seems full.

“We still look for someone to head the supply chain work at the new Hettstedt site,” Eszter says. In Helsingborg, her home site, the plans to get logistics, transports management, inventory, production planning and sourcing under one roof have worked out well. And Hettstedt are on the same track, once the management issue is solved.

With regard to energy there are interesting ideas for the future in

Hettstedt: the municipality wants to analyse the option of using hydrogen to run industrial processes, mainly replacing natural gas as the energy source. This is a project that Elcowire takes part in. It is of course a long-term option: “Realis -

on the building roofs are already in the capex budget for the 2-year perspective. In Hettstedt, step 1 is to actually replace the current roof, mainly for safety reasons, and solar panels will be the next step to be discussed.

“We have several smaller energyrelated projects as well,” Eszter says, “reducing our need for natural gas beside electricity.”

HEALTH & SAFETY

tically, it takes 3 to 5 years or more before that could turn into reality for us,” Eszter admits. Still, it is an exciting opportunity that needs to be investigated.

More short-term, there are solar panel options available that could, up to a certain extent, be a solution to reach carbon emissions reductions and renewable energy ambitions. In Helsingborg, solar panels

On the safety side, Eszter is pleased that health & safety has now really become a fixed part of the agenda in the daily factory meetings, which is a start for comparisons and improvements. She also mentions a “one-pager” safety sheet practiced in Hettstedt that maps all incidents, makes them visible and helps address the risks behind the incidents to be able to solve them systematically. “We are starting to introduce these one-pagers as a general Group tool for safety work,” she says.

CIRCULARITY

Circularity is another area where activities will increase. In general, Elcowire will strive to recycle

Analysing the option of using hydrogen to run our processes is currently being investigated.

Image: Melted copper at 1,085 degrees Celcius

ESZTER DEAN, COO & SITE MANAGER

even more copper materials, and gradually also more and more of those alloys or contaminated materials that today are still technically demanding to recycle. Long-term planning will be about how to get the customers into a closed loop where end-of-life products are sent back to Elcowire to be recycled.

WATER

Water in the factories could also be looped and recycled with the help of new equipment, which would reduce the current water use considerably.

NEW TRAINING METHODS

Finally, learning: Eszter has taken pride in Elcowire adopting new training methods that, for example, get new machine operators up to speed in much shorter time than older methods, which of course is good for everyone involved and for productivity. Another obvious method improvement is digitalization: “We are investigating which Learning Management System to convey digital training that is right for our needs,” she concludes. No doubt this will be in the pipeline very soon.

HETTSTEDT OPERATIONS – Energy and circularity options

The year 2022 was special in many ways for Elcowire’s two Hettstedt plants. The energy situation in Germany was difficult both regarding natural gas and electricity, something which demanded a lot of management attention to avoid any costly shortages for the production lines.

“If there was indeed an electricity shortage, we had a brief 2-hour-window to clean all our equipment in the electricity-dependent production lines, so it was a real challenge,” says Carsten Hohmann, Site Manager .

But, by the end of 2022,

although the energy prices were still high, the acute energy supply crisis in Germany seemed over, and the Hettstedt management perspective could change over from short-term to medium and longterm planning, including highly important sustainability aspects.

Of course, the planning on energy and resource use was colored by the fact that since the acquisition of the Hettstedt site was completed in March 2022, it therefore was its first year under Elcowire operations. “Initially, we were working to gain a better

Regarding material use and circularity, there are several investments being evaluated. For high-quality scrap in the foundry, the current manual work of storing and cutting scrap sold to external partners could be replaced by a machine for processing of the scrap, enabling internal recycling. And for the tinning lines, the currently non-usable liquid/solid waste fraction is of value for the right partner.

A GOOD OVERVIEW

Some other topics on the list for Carsten Hohmann and the Hettstedt management are about reducing the need for purchasing of pressurized air, as well as improving water use and wastewater emissions. With the recent acquisition of the Hettstedt North operations, Elcowire is still dependent upon solutions for these resources which made sense historically when there was one common owner of the whole Hettstedt site.

CARSTEN HOHMANN, SITE MANAGER HETTSTEDT

understanding of the whole energy situation,” In mid-2023, we will have an energy management system in place, certified according to ISO 50001, if all plans go well,” says Carsten.

CONSIDERABLE SAVINGS

Considerable savings are identified and an energy reducing project will be executed in the coming year. The project has started its first learning phase, with a production area without machines in it, and with the main office area.

In a later phase, a promising option is to add solar panels to be used either for electricity generation or for hot water – both things would improve the energy situation on site.

“In all, during our first year, our understanding of the energy and resource use situation really has improved, and we now have a good overview of our sites,” says Carsten Hohmann.

OUR COMMITMENTS

V ISION

Together with all our stakeholders; our employees, our custom ers, our suppliers, our owner and our partners, Elcowire wants to contribute to a sustainable society which is based on our history, know-how and passion.

MISSION

One of the leading suppliers in Europe of products and services based on wire rod for the electrical and infrastructure industry with copper and aluminium solutions. By challenging ourselves and continuously improving our processes, we provide solutions for a sustainable world.

VALUES

RESPONSIBILITY. We build on a nd nurture long-term relationships and we act responsibly towards customers, co-workers, partners, our owner and society.

RESPECT. We listen to and show consideration for one another. We recognise each other’s differences.

TRUST. We are committed and dedicated to fulfilling our promises. We act in a trustworthy and reliable manner.

PASSION. Our customers’ success is our passion. It is our priority to meet the needs and challenges of our customers.

PEOPLE & SOCIETY

A great step forward

CEO Paul Gustavsson and Head of Human Resources Melissa Kommas, describes Elcowire’s progress with regard to training and development, diversity, code of conduct and social engagement.

TRAINING AND DEVELOPMENT

During 2022, the Elcowire people development model with yearly reviews for all employees has landed really well at the Helsingborg site, says Paul Gustavsson, Elcowire CEO. High achievers are now being identified, as well as those in need of development support.

“We feel that we are really able to take care of our people in an improved way and help carry on their professional development through

the use of individual training plans,” he explains. This positive development has been facilitated by the fact that a general Human Resource Management system is also now in place. So, the whole inventory of competence and people has taken a great step forward, says Paul. Systematic people development supported by IT tools will step by step be implemented also at the sites in Germany. A great help will be the forthcoming Elcowire

Academy initiative – the Groupwide learning based on a common Learning Management System digital platform, from 2023. The ambition is that a Key Performance Indicator tracking the number of training hours per employee and year will also be introduced in the next few years.

ground, religion and world views, with and without disabilities, young and older people or with different sexual orientations.“

CODE OF CONDUCT

The Elcowire Code of conduct is part of every new employee’s onboarding kit. It states what the company expects from its team as well as from its suppliers. Anticorruption policies that ensure fair competition are at the core of the Code. It also outlines human rights practices, including an anti-discrimination paragraph and zero tolerance for forced and child labour.

CEO PAUL GUSTAVSSON

DIVERSITY

As for any company within the technical/engineering sector, Elcowire is male dominated. However, there is definitely work ongoing toward change: “We have strived to get more women on board in the production in Helsingborg and in Hettstedt, and it has yielded good results. Also regarding ethnicity, we do see to that we are getting a better mix and that we become gradually less Swedishdominated in our workforce,” Paul says, indicating that this diversity direction is a strong ambition for the future.

“In Hettstedt, too, we are moving step by step towards a diversityfriendly workforce,“ says Melissa Kommas, HR Head in Hettstedt. “It is not up to others, but directly to all of us, to continue and develop our positive working atmosphere so that our employees can fully develop their potential and actively participate in shaping our company - regardless of their ethnic back-

To ensure that the Code of conduct-aligned behaviour can be upheld, there is a whistleblower system in place that allows every employee to safely report any observed breach of policy. From 2023, a new reporting system will be in place, managed by an external vendor that will further guarantee employee integrity and anonymity in the whistleblower system.

LOCAL COMMUNITY INVOLVEMENT

For Elcowire, serving the local communities is just as important as the Group’s global impact on environment and society. In Helsingborg, the partnership with

the local handball club continued, supporting young people in the area in various activities, giving the kids a chance to try handball, and also afterschool support such as homework assistance. “This is of course based on employee engagement in pro bono work for the local youth,” says Angelika.

Melissa adds: “In Hettstedt we support the youth work of the city, and in particular the kindergartens located there. It is very important to us that our support aid is used to promote creativity in children. We want to give them every opportunity to develop creatively, to try things out, to develop ideas, to test limits, to find solutions and, of course, to experience success. We see our future in the children of our city. They are our future employees who will accompany our company into a successful future.“

“WE HAVE STRIVED TO GET MORE WOMEN ON BOARD IN THE PRODUCTION IN HELSINGBORG AND IN HETTSTEDT, AND IT HAS YIELDED GOOD RESULTS”

RESOURCES HUMAN

HEAD OF HUMAN RESOURCES, HETTSTEDT MELISSA KOMMAS

SUSTAINABILITY PERFORMANCE 2022

REPORTING SCOPE

The Group comprises three manufacturing facilities. All facts and data represent the companies Elcowire AB, Helsingborg, Sweden, Elcowire Rail GmbH, and, from March 2022, Elcowire GmbH, both the latter situated in Hettstedt, Germany.

SITE DESCRIPTIONS

Elcowire Group has two wire rod mills – one in Helsingborg and one in Hettstedt North – and several casting machines for oxygen-free copper. The wire rod mills are not using the same casting technology which leads to some differences, for example in regard to which energy is used.

The wire rod product can be transformed into various products such as drawn wire, stranded conductors, extruded strips and profiles. For railway purposes, contact wire is also manufactured. Within the group, also purchased wire rod made from aluminium can be processed into drawn wire and extruded profiles. Water is used at all sites, mainly for cooling purposes and for on-site production of lubricating emulsions.

Elcowire AB in Helsingborg, Sweden, consists of a wire rod mill with in-line casting and rolling. The shaft furnace and holding furnace in the rod mill are powered by natural gas. There are also three casting machines for oxygen-free copper using electricity to melt the copper. The wire rod from the rod mill and the oxygen-free copper products are drawn to wire as well as extruded into various other products. Drawn wire is also stranded.

The rod capacity is approximately 145 000 tons per year. For extrusion the capacity varies depending on labour planning but is approximately 30 000 tons per year.

Elcowire Rail GmbH in Hettstedt, Germany , is specialized in products

for the railway business. This includes transformation of copper wire rod into contact wires and stranded conductors, used for catenary systems within the railway sector. The site has capacity to cast oxygen-free copper. In total approximately 8 500 tons per year are processed at Elcowire Rail.

Elcowire GmbH in Hettstedt, Germany, consists of a wire rod mill with in-line casting and rolling. The shaft furnace is powered by natural gas, and the holding furnace is powered by electricity. The capacity of the rod mill is 125 000 tons per

year. The wire rod from the rod mill as well as oxygen-free copper are drawn into wire. Drawn wire is also stranded. The capacity for drawing and stranding is 30 000 tons per year.

RAW MATERIALS

The principal raw materials in Elcowire’s processes are metals: copper and aluminum, but also metals used for alloys, such as silver, tin and magnesium, used in special products.

The alloying metals are used in low concentrations (below 1 percent) to

PERFORMANCE SUSTAINABILITY

improve the products’ mechanical and electrical properties. By reducing the energy use and extending the service time and product life, this improvement supports the idea of sustainable products with lower environmental footprint.

Process chemicals are used for various purposes depending on process. In the rod mills, emulsions are used as lubricants in different rolling steps. In addition to lubricating substances such as acetylene, also oils and alcohols are used. In wire drawing, emulsions are used as lubricants. Alcohol is used for reducing oxides on the surface of copper wire, mainly wire rod.

ENVIRONMENT

Elcowire’s environmental approach involves minimising and reducing any impact on the environment, such as emissions to air, land or water. The operations should not harm nature and any impact should be minimised. Consequently, environmental aspects are assessed in respect to a life-cycle perspective and associated risks. Risk assessments are a part of the daily work – as well as when changes to the processes are made, or when a new investment is considered. Best available technology should always be the first choice.

ENVIRONMENTAL MANAGEMENT

Certified environmental management systems according to ISO 14001 are mandatory for sites in the Elcowire Group. Elcowire AB in Helsingborg and Elcowire Rail in Hettstedt are already certified according to ISO14001, whereas Elcowire GmbH, Hettstedt, acquired by Elcowire in 2022, is expected to be certified during 2023. The former company now called Elcowire GmbH was certified before the acquisition.

RESPONSIBLE SOURCING

Responsible sourcing is an area still under development in Elcowire. While compliance with conflict minerals framework is already in place, the general supplier review addressing compliance with Elcowire’s code of conduct - including human rights due diligence - is integrated into the ongoing work with a full review of the corporate sourcing strategy.

ELCOWIRE RECEIVES ECO-VADIS RATING

Third party rating organization EcoVadis has made a first rating of Elcowire AB, landing at the level 62 of a maximum 100 points scale. This corresponds to the level “Good” and will be a stable starting point for further improvements. Elcowire is already on a 70 level for its environmental work, corresponding to the level “Advanced.”

JONAS CIARDI SUSTAINABILITY OFFICER, HELSINGBORG

ULRIKE STANDKE SUSTAINABILITY OFFICER, HETTSTEDT

PERFORMANCE SUSTAINABILITY

CIRCULARITY AND WASTE

Circularity has a long tradition in metal-based industry, and internal metal waste in Elcowire facilities is, to a very high degree, recycled. If the metal scrap cannot be recycled internally, it is taken care of by sub-suppliers to ensure that the metal is recycled back into new high-grade material.

Outcome 2022: The total volume waste has increased due to the aquisition of Elcowire GmbH.

Other waste water is originated from tinning at the production of drawn copper. Waste water is treated at an external part.

The Waste hierarchy model (see figure left) is important as a guide to apply in Elcowire’s manufacturing, as the main target should be to reduce waste, sand second best is to reuse.

Hazardous waste consists mainly of oil emulsion from fluids used in rolling and drawing operations.

The waste hierarchy is also applied on our sustainability agenda which well suits our intention to be more sustainable.

Elcowire’s waste management and processing of materials are focused on going from linear flows to circular flows, supporting the idea of circular economy.

Discussions are ongoing with customers to enable Elcowire processing high quality scrap coming from their facilities, and investi-

gations are planned to look for such possibilities to use scrap from end-of-life products, thus closing the loop.

A circularity options map for Elcowire was outlined in 2022 and illustrates the potential of both already existing and future material flows:

Metals are extracted with lowest possible impact from suppliers’ mines

End-of-life materials can be sent back to smelters to be re ned in several process steps

End-of-life copper can be sent back to Elcowire to be recycled.

Internal metal scrap is recycled

Mines Suppliers (smelters) – Cathode (raw material) manufacturing

Elcowire – Wire, rod and conductor material manufacturing

Customers – Cable and other copper-based solutions manufacturing

End-of-Life – At the material end of life there are several possibilities for the material to get a new life

Process scrap from customers can be recycled at Elcowire

ENERGY

Energy consumption for production purposes is based on fuel combustion (natural gas) mainly for melting in shaft furnaces but is also based on purchased electricity. Purchased electricity is used for melting in the oxygen-free copper production and for subsequent processes such as rolling, drawing, stranding and extrusion.

At the site in Helsingborg, Sweden, energy is recovered from flue gases in the shaft furnace for copper rod production. The recovered energy is used in two ways: internally for heating purposes and externally, distributed to the district heating network of the city of Helsingborg for heating of homes, industry and for producing district cooling.

After heat recovery, the flue gas is cleaned in a bag-house filter.

From the beginning of 2022, the operations in Elcowire Rail, Hettstedt, have been run on renewable electricity. The operations in Helsingborg are using fossil-free energy from September 2022. See the section on Carbon footprint on page 33.

WATER

The water consumption increased in 2022 and was 662 213 m 3 (102 661), mainly due to the acquisition of Elcowire GmbH. Different types of cooling systems explain the higher use of process water.

At Elcowire GmbH and Elcowire AB there are improvement programmes to lower water consumption, which includes improving the cooling systems and improving water treatment. Water consumption is mainly for cooling and for make-up water.

At the Helsingborg site, a water cleaning facility has earlier been installed, which makes it possible to clean the water and thus decreasing the water consumption since pollutants, such as soot and copper, can be removed. The cleaning facility also lowers the emissions from discharged water to recipients.

Elcowire AB uses drinking water from own wells which is treated by softening of the water. Elcowire Rail uses drinking water for its processes. At Elcowire GmbH, there are two types of water being used, drinking water and process water. Which type is used depends on the application. For demanding applications such as emulsions, drinking water is used to ensure high quality of the emulsions enabling a proper lubrication in the

Outcome 2022: Total energy consumption rose considerably in 2022, due to the addition of a new site, Hettstedt Wire & Strands, and due to increased production volumes at the other sites. In total the consumption was 122.1 GWh (2021 revised: 65.6).

Direct energy consumption (mainly natural gas) was 87.3 GWh (2021 revised 48.7), and the indirect consumption (electricity) was 34.8 GWh (2021 revised: 17.0). Once again, the increase was mainly due to the additional facility Hettstedt Wire & Strands (from March 2022). Thus, the use of direct energy (natural gas) is more significant than the indirect energy (purchased electricity).

The intensity figures for energy related to processed material volumes have increased in 2022, mainly due to a higher energy base load and lower capacity utilization in the period in the new entity Elcowire Wire & Strands. This is currently under review in order to bring the acquired unit closer to the other Elcowire units’ performance.

rolling and drawing processes. Process water is used for cooling.

Water consumption in the wire rod mills is quite similar and based on closed cooling circuits which leads to fairly low water consumption as the water can be circulated to a certain extent. Evaporisation due to the hot processes is substantial. Evaporisation also takes place in cooling towers. The cooling system at the wire drawing and stranding of Elcowire GmbH is based on an

open system which requires more water resulting in a higher water consumption.

For cooling of the wire rod casting process, the Helsingborg site has installed a cooling tower with several benefits compared to earlier solutions: lower energy use, lower noise to the surroundings, easy maintenance with access to important parts during operation which means reduced downtime and improved productivity.

Outcome 2022: The extreme water use figure for 2022 is completely due to the obsolete cooling system in place in the newly acquired Hettstedt Wire & Strands site. For the coming years it is a High priority to find a new cooling water solution to be implemented.

PERFORMANCE SUSTAINABILITY

SAFETY

Safety is a high-priority area for Elcowire: the inhouse program for safety management aims to prevent injuries at all units and avoid recurrence of a certain type of incident. In general, progress for occupational health and safety is tracked along three key parameters:risk alerts, accidents, and absence.

All sites have safety and risk evaluation initiatives according to local needs and conduct reporting monthly to establish common standards across the group.

Elcowire has a groupwide zeroaccident vision that guides the risk assessment strategy. Since 2012, focus has been set on preventing incidents by continuously identifying, documenting, and analysing risks. Safety is a collective effort, and each employee is involved with pinpointing at least one potential risk each year.

In line with its high-priority ambitions for safety, Elcowire has appointed a safety manager at both sites, and introduced the measurement standards used by most large industrials in their sustainability

Despite the intense work on safety, there is still room for improvement and to reach the zero-accident vision within Elcowire Group – Safety First!

Outcome 2022: 8 LTI cases/accidents (8) - see LTI explanation below, and 14.4 LTIFR (23.9). To be noted is that at Elcowire Rail, zero accidents were reported during 2022. The number of accidents has decreased from 2021 by, in total, 3 accidents of Elcowire Group.

NOTE: A work-related accident is counted as leading to a Lost-time injury (LTI) case as soon as the injured person cannot work the following full working day. The Lost-time injury frequency rate (LTIFR) indicates how many such injury cases an organization has per 1,000,000 working hours, which corresponds to a work year for 500 full-time employees.

OPERATIONS CARBON FOOTPRINT

(Scope 1 & 2)

Elcowire aims to be a sustainability leader in its business, and therefore the carbon footprint is of course strategically important. See below and page 33 for the verification process of the carbon footprint of Elcowire’s Low-carbon and Recycled Copper products.

The calculation of CO 2 emissions from Elcowire operations is based on energy figures and approved conversion factors.

Outcome 2022: The total emissions in 2022 were 30 593.6 tons (2021 revised: 16 677.2), a considerable absolute increase from 2021 caused by increased energy use related to the addition of Hettstedt Wire & Strands in 2022.

Scope 1 emissions are calculated from the use of natural gas and diesel were

19 159.4 tons (2021 revised: 10 679.3). Scope 2 emissions from electricity, were

11 434.2 tons (2021 revised: 5 997.9).

Also for CO2 emissions, the intensity figures related to processed material volumes have increased, due to a higher energy base load and lower capacity utilization in the period for the new entity Elcowire Wire & Strands. This is currently under review in order to bring the acquired unit closer to the other Elcowire units’ performance.

PRODUCT CARBON FOOTPRINT

The calculated emissions from 1 kg of Low-carbon copper from Elcowire is 1.7 kg. This compares to less than half of the global average emissions from 1 kg of copper.

This statement is based upon comparison per kg of copper quoted by the International Copper Association (ICA). When calculating the footprint, Scope 1, 2, and 3 emissions

ENVIRONMENTAL PRODUCT DECLARATION

has been developed during 2022 for Elcowire’s products including Low-carbon Copper with the market’s lowest environmental footprint. This footprint is verified through a mass balance-based self-declaration according to ISO 14021.

EPDs are standardized documents for displaying the environmental impacts of the company’s copper products across its entire lifecycle. They provide a base for accurate environmental and climate calculations in customer operations.

With the use of Low-carbon Copper products, Elcowire becomes a crucial partner for the customers’ achievement of their sustainability goals. Also, spreadsheets containing data in

have been included, i.e. all categories in the Greenhouse Gas Protocol with a relevant impact on the final carbon footprint, from cradle to Elcowire AB gate.

The calculations have been made by consultancy WSP in accordance with the GHG Protocol Product Standards (Product Life Cycle Accounting and Reporting).

The calculations have been reviewed by third party DNV according to the general principles in the ISO 14064-3 Standard (Greenhouse Gases – Part 3: Specification with Guidance for the Validation and Verification of Greenhouse Gas Assertions).

Excel format will be made available by Elcowire, making it easier for customers to implement relevant data into their product calculations.

The aim of Elcowire’s EPD and self-declaration is to help clarify the environmental performance of a product from a life-cycle perspective, in a transparent, objective and standardized way. It will include not only a climate declaration, but are also detailing greenhouse gas emissions and acidification, as well as resource consumption etc.

Elcowire uses mass balance in its self-declaration

The Mass Balance calculations to be used by Elcowire in the self-decla -

ration according to ISO 14021 is an approach that enables manufacturers to increase the circularity of products without making complicated changes of their production infrastructure.

In a typical mass balance calculation, sustainable materials as well as other materials are mixed within the production environment, causing them to no longer be traceable directly to the source. However, by tracking the amount of each input material and the amount of product output, it is possible to estimate the amount of each input material that is used in the production of the final product.

Elcowire Low-carbon Copper benchmarked against global average and aluminium regarding CO2-emissions (kg CO²/kg copper)

PERFORMANCE SUSTAINABILITY

SDG 4 Quality education

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Elcowire focus: Read more in People and Society on page 26.

SDG 8 Decent work and economic growth

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

Elcowire focus: Read more in the CEO interview on page 4 and in Sustainable operations on page 22.

SDG 9 Industry innovation and infrastructure

Build resilient infrastructure, promote sustainable industrialization and foster innovation.

Elcowire focus: Read more in each Business Unit’s description of ”The business unit today,” including solution and innovation on focus, pages 10–19.

SDG 12 Responsible consumption and production

Ensure sustainable consumption and production patterns.

Elcowire focus: Read more about Sustainability performance on page 28, Sustainable operations on page 22, and in each Business Unit’s description of ”The business unit today,” including solution and innovation focus, pages 10–19.

SDG 16 Peace, justice and strong institutions

Promote just, peaceful and inclusive societies.

Elcowire focus: Read more about in People and Society on page 26.

AT THE HEART OF ELCOWIRE’S MISSION AND BUSINESS ACTIVITIES

Elcowire’s sustainability efforts are focused on contributing to the agenda of the global society for the year 2030.

Since 2015, the most advanced framework to describe this agenda is the UN Sustainable Development Goals (SDGs). These goals, symbolized by 17 colorful icons, recognize that ending world poverty and other human challenges must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests.

“The SDGs represent a shared commitment in society to sustainability,” says Elcowire’s CEO Paul Gustavsson. “For Elcowire, it is important to center our sustainability efforts around this global collaboration between the 193 member states of the UN.”

CLEAN ENERGY

While clean energy and electrification are clearly at the heart of Elcowire’s mission and business activities, this is just a start for what the company wants to achieve. Providing reliable energy and fighting global warming includes continuous reduction of the carbon footprint from Elcowire products and solutions, combined with improved energy efficiency and carbon footprint in the internal production processes as well as in the entire supply chain.

RESPONSIBLE MANAGEMENT

But the SDG-inspired agenda of Elcowire is much broader than that:

“The obvious energy and climate improvement profile of our company is what you see from the outside. However, internally, a responsible management of resources and a strong culture rooted in a safe and positive work environment for all employees are the strongest basic elements of our sustainability focus,” says Paul Gustavsson.

As one of the leading European suppliers of copper products, we are committed to sustainable copper sourcing. We are developing advanced technologies to provide outstanding energysaving products with maximum useful life to enable sustainable solutions.”

PAUL GUSTAVSSON, CEO

”SUSTAINABILITY, PEOPLE AND CUSTOMER SATISFACTION IS THE WAY FORWARD ”

What types of changes have been made in 2023 to address the situation? And how do you ensure a good development?

Focus has been on the continued integration of the acquired business in Hettstedt, bringing financial stability by developing and improving processes and optimising production, with a clear focus on improving profitability.

Elcowire’s journey toward creating a sustainable business has a direct impact on the cost side and has the potential to deliver further significant cost savings. In general, our sustainability strategy will also improve financial performance through its boosting of innovation, sales & marketing, operational efficiency etc.

In the short term, we monitor the positive development by using a combination of financial and non-financial measures such as EBIT and ROI. Always of importance is of course to keep track of working capital and liquidity.

CFO Lilian Hegg started officially in the position as CFO for Elcowire January 1, 2023. In her summary of 2022, she highlights improving profitability as well as preparing Elcowire for the future by strengthening our own people and measures for improving customer satisfaction in terms of supporting their electrification and energy transition.

How would you summarise the financial year 2022 for Elcowire?

The year was characterised by considerable uncertainty and macro-economic challenges. The post-pandemic situation and Russia’s invasion of Ukraine affected the global community in various ways, one of them being an inflationary environment driving energy prices, transport costs as well as other costs, also for Elcowire of course.

At the same time, it was a very exciting year for the company due

to the large acquisition completed in March 2022 in Hettstedt, Germany. This almost doubled the company’s production capacity. The new unit, a carve-out from the company KME, still has to improve its profitability to live up to our expectations.

• Net sales increased with 20% mainly related to the acquisition.

• The operating result deteriorated in comparison with previous year due to increasing costs and then primarily energy costs but also related to low profitability and one off write down related to the new acquisition.

• Financial costs increased significantly related to higher interest rates.

• Focus will be to continue to drive efficiency and increase the profitability.

What are your priorities in the next three-year period with regard to investments?

I want to emphasize both our own people and our customers.

One major priority for us is investing in people sustainability, which means giving our people the tools and knowledge they need to develop and perform in the best way possible. I believe strongly in creating an enjoyable as well as interesting workplace where you have fun and like your work. It is an in important part in attracting the younger generation to an exciting business dedicated to a sustainable, electrified future.

Another priority, this time with our customers in mind, is further investments in our factories, increasing the efficiency to fulfil customer expectations on Elcowire to support electrification and the transition toward renewable energy, now and in the future.

CFO Lilian Hegg comments on 2022

Elcowire Group’s profit/loss

NET SALES

1 265 472 EUR IN THOUSANDS

386 EMPLOYEES SOLIDITY 28%

Elcowire Group’s financial position

The Annual Accounts and the Group report are based on Swedish Accounting standards.

Elcowire Group’s cash flow

The Annual Accounts and the Group report are based on Swedish Accounting standards.

DIRECTORS BOARD OF

BENGT LILJEDAHL

Chairman of the Board of Directors, Elcowire Group

President, CEO and founder of Liljedahl Group

Education

MSc in Economics and Business Administration at the University of Gothenburg.

Other active board membership

Chairman of the Board of Liljedahl Group AB, Bufab Group, Dahrén Group AB. Board member of Finnvedens Lastvagnar AB, Hörle Wire Group AB, Pronect AB.

FREDRIK LILJEDAHL

Board member of Elcowire Group

Deputy CEO of Liljedahl Group

Education

MSc in Mechanical Engineering, Lund University.

BSc in Business Administration and Economics, Lund University.

Other active board membership

Chairman of the Board of Pronect AB. Board member of Liljedahl Group AB, Hörle Wire Group AB, Dahrén Group AB, Liljedahl Group Fastighets AB. Nominating committee of Bufab Group.

TORBJÖRN PERSSON

Board member of Elcowire Group

CFO of Liljedahl Group

Education

Degree of Master of Science in Business and Economics and Executive MBA from School of Business, Economics and Law at the University of Gothenburg.

Other active board membership

Chairman of the Board of Liljedahl Group Fastighets AB. Board member of Hörle Wire Group AB and Dahrén Group AB.

DAN BROSTRÖM

Board member of Elcowire Group

CEO Koncentra Verkstads AB

Education

MSc in Mechanical Engineering, Chalmers University of Technology, Gothenburg.

Other active board membership

Chair: JTK Power Oy, Koncentra Pistons Oy, Aiab Energy, Malmstens Verkstads AB, Finmec Oy, Koncentra Invest, Koncentra Fastighets AB.

Director: Oxymetal SAS, Koncentra Verkstads AB.

SVANTE NILSSON

Board member of Elcowire Group

Consultant and Board Director

Education

MSc in Industrial and Management Engineering.

Other active board membership

GISAB Gällivare Industriservice AB.

Elcowire Group AB

Box 914

SE-251 09 Helsingborg

Tel +46 (0)42 19 53 00

Visiting address: Elektrogatan 20

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