Optimar Sustainability Report 2022

Sustainability Report 2022 Optimar Sustainability Report 2021

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Sustainability Report 2022

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Optimar Optimar Sustainability Sustainability Report Report 2021 2021

Contents Our Company..............................................................................................................................................................2, 3, 4, 5, 6, 7 About Optimar in 2022...................................................................................................................................................... 4, 5 CEO Statement................................................................................................................................................................... 6, 7 Sustainable and Profitable Growth (G).................................................................................... 8, 9, 10, 11, 12, 13, 14, 15 Our ESG Strategy...................................................................................................................................................................8

How we work with ESG in our company.......................................................................................................................8 Our defined stakeholders..............................................................................................................................................9

Our commitment..........................................................................................................................................................10

Our ethical responsibility.....................................................................................................................................................13 Ethical guidelines and Whistleblower Policy......................................................................................................................13 Our contribution to the Industry..........................................................................................................................................14 Sustainable and scalable Operating Platform (E)............................................................................16, 17, 18, 19, 20, 21 Our Environmental policy....................................................................................................................................................17 Green House Gas Emissions...............................................................................................................................................17

Scope 1.........................................................................................................................................................................18

Scope 2.........................................................................................................................................................................18

Scope 3.........................................................................................................................................................................19

Sustainable Operating Platform Initiatives........................................................................................................................21 People (S)....................................................................................................22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33 Our social responsibility......................................................................................................................................................22 Organization of our equality, diversity and inclusion work................................................................................................22 Equality, diversity and inclusion at Optimar.......................................................................................................................23 www.optimar.no

Gender equality............................................................................................................................................................23 Parental leave...............................................................................................................................................................24 Part time and temporary positions.............................................................................................................................25 Age Diversity................................................................................................................................................................25 Equality, diversity and inclusion-related activities.......................................................................................................26, 27 Health, Safety and Work Environment................................................................................................................................29 Sick leave and work-related injuries...........................................................................................................................29 Employee engagement................................................................................................................................................29 Competence, Skills development and Training..................................................................................................................30 Supply Chain Responsibility................................................................................................................................................31 Supplier risk management.....................................................................................................................................32,33

Optimar Sustainability Report 2021

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Our company

Optimar is a global leader in automated fish processing systems for use on board fishing vessels, on land and in the aquaculture sector. Aside from its headquarters and manufacturing facility in Ålesund, on Norway’s west coast, Optimar operates other facilities in Norway, the United States, Spain and Romania. The company delivers to international customers in more than 40 countries.

Our vision Fish handling with care – we improve the sustainability of food production by enabling our customers to process fish and other aquatic species more effectively, safely and with higher quality.

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Optimar Optimar Sustainability Sustainability Report Report 2021 2021

About Optimar in 2022

Carbon footprint (scopes 1&2)

307 tCO2e

Workforce from

20+

SINCE 2020 UN Global Compact Signatory

LTIs in 2021

4 SDGs where our business has the greatest impact

40+

7

Countries served

Production sites

Administrative sites

ࣽ Norway ࣽ Spain ࣽ Romania

ࣽ Norway ࣽ Spain ࣽ Romania ࣽ USA

nationalities

Workforce

334 people

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Our company

CEO Statement - We are stepping up!

The challenges of our time are becoming even greater, and we are convinced that there is no alternative to focusing on sustainability. For Optimar, this means taking a holistic view of our actions and thinking through their consequences from beginning to end. There is no option but to step up and focus on our mission to create value for present and future generations.

Animal health and welfare, human working conditions, raw material utilization, energy consumption and carbon emissions are important considerations in sustainable food production. Consumer awareness of and emphasis on these considerations is changing how our industry operates. We have used 2022 to take a step back and see where and in what areas we can do the most, and make real changes in the industry.

The situation in 2022 made it extremely difficult for us to achieve the ambitious targets we set ourselves in the year before. The fallout from the ongoing war in Ukraine,

combined with supply chain issues and rising prices, also had a major impact on our market. In response to the uncertain economic outlook, many of our customers were reluctant to embark on major new investment projects. For this reason, we were forced to make far-reaching organizational changes and concentrate our limited resources entirely on stopgap adjustments. But by taking action at an early stage, we were able to secure a sustainable financial footing for our business and secure the jobs of over 300 employees in Norway, Spain, Romania and the USA. Optimar’s dedicated and highly skilled workforce is our

Sustainability is no longer a project or initiative; it is the core of our business and will continue to set the future course of both the industry and the people involved in it.

Georg Saint-Denis | CEO, Optimar

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Optimar Sustainability Report 2021

most valuable resource. For us, it is important to value each and every team member. We know that it takes people, engagement and considerable effort to make the changes necessary to develop in the right direction.

Our people and their engagement in Optimar gave us the strength to ride out the rough water we faced in 2022.

Our role in the industry By taking advantage of our position, we can influence a great part of the industry. Our value chain – from initial idea to complete delivery – affects many different sub-suppliers and partners. By setting high standards concerning working conditions, safety, emissions and environmental impact, Optimar, along with its suppliers and business associates, has the opportunity to positively impact not only the industry but also those who more broadly depend on it.

As a system integrator, we offer complete factory solutions We offer complete solutions that minimize energy consumption and carbon emissions along the value chain by enabling our customers to process fish more effectively, safely and with higher quality. In doing so, our goal is an ethically sound end-product, with the highest level of an-

Nations goals, particularly the UN’ Sustainable Development Goals (SDGs).

A few key highlights from 2022 ࣽ Increased focus on animal welfare, with support from animal welfare organizations. Through the year, we established close connections with several animal welfare organizations with the aim of improving animal welfare in the harvesting process.

ࣽ CatchID, we are a chosen partner. We have started a close collaboration with the Norwegian Directorate of Fisheries to develop a common platform for sustainable fishing and reporting by the fishing fleet.

ࣽ Solar panels were installed at our facility in Spain, which reduced CO2 emissions from electricity consumption at that site by 65%.

Sustainability is no longer a project or initiative; it is the core of our business and will continue to set the future course of both the industry and the people involved in it.

We look forward to continuing our work in creating value for generations.

imal welfare and 100% yield. We will achieve this through the innovation that Optimar has been renowned for for many years. In order to initiate and control improvement processes, data is needed. Our digital solutions therefore provide our customers with a wealth of valuable data and control options.

Georg Saint-Denis CEO Optimar

Optimar reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of human and labour rights, the environment and anti-corruption. We disclose our continuous efforts to integrate the Ten Principles into our business strategy, culture and day-to-day operations, and contribute to the achievement of United

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Sustainable and Profitable Growth (G)

Our ESG strategy We have been a member of UN Global Compact since 2020 and published our first sustainability report for that same year. We reported our first GHG emission calculation for the year 2021. In 2022 we followed up on initiatives and adjusted our Sustainable Development Goals

How we work with ESG in our company United Nations Global Compact

We have been a member of UN Global Compact since 2020 and published our first sustainability report for that same year. We reported our first GHG emission calculation for the year 2021. In 2022, we followed up on initiatives and adjusted our SDG-related endeavours.

ESG is incorporated as a natural part of our overall business strategy. We have matured in our sustainability work since 2020. For example, when we restructured the business in 2022, we did not retain a defined sustainability team, but integrated sustainability goals, tasks and reporting into the business lines and departments. In doing so, we have enhanced sustainability ownership and quality in our day-to-day business.

Optimar’s board of directors is responsible for determining company guidelines and strategy , while the CEO is responsible for implementing the strategy.

Our top management are responsible for company compliance, and ensures that our reporting is compliant with applicable legislation and directives.

Our Sustainability Lead (SL) has overall responsibility for the preparation and follow-up of the strategy and goals. The SL coordinates the various sustainability initiatives driven by our departments and reports to top management and the board.

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Our defined stakeholders Through a variety of contact points, such as union dialogue meetings, exhibitions, supplier questionnaires, employee surveys and partnerships with non-government organizations (NGOs) and academia, our stakeholders have shown us which topics are important for them and what they need and expect from us as a company going forward.

Employees and unions

Business partners

Customers

Local community

Authorities

Academia

Competitors

Suppliers

Life under water

Animal welfare organizations

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Sustainable and Profitable Growth (G)

Our commitment Responsible business, plans, operations and investments are essential to achieving transformational change through sustainable development goals (SDGs). The UN’s 17 Sustainable Development Goals (SDGs) provide a framework for achieving the agenda and targets set by UN Member States. Together, the SDGs signpost what needs to be done to end extreme poverty, fight inequality and injustice, and protect our planet. We have determined four SDGs where we assess that we have the greatest impact. Focusing primarily on these four goals will, however, also contribute positively to others of the UN’s 17 SDGs.

Goal 12 We wish to help reduce the environmental footprint of the value chain in which we participate, not only by reducing the emissions associated with our own production process but also those relating to customers’ use of our products, by making them more energy efficient and operationally robust.

Our equipment has a long service life and to extend it even further, we offer customers a rebuilding, reconfiguration and upgrade service for their pre-used machinery.

The design of our equipment and systems plays an important role in maintaining the high quality of the raw materials that are processed in the customers’ factories. High quality results in less food waste in the production chain, and more food with a high nutritional content. We are therefore constantly striving to further improve the design of our products and services.

Goal 8

Goal 14

Goal 17

When developing our factory solutions, we work for increased catch utilization and a higher quality end-product. This contributes to increased economic productivity among our customers and maximum utilization of our marine resources.

Through design, engineering, automation and control we provide our customers with the opportunity to gather data that helps document their operations from a production, environmental and efficiency perspective. We are helping to develop an advanced fish sorting and grading system that will enable improved traceability and sustainability in the fishing industry. It will also facilitate better verification and reporting of harvested fish stocks as a means of reducing overfishing.

We are contributing our expertise and technology to partnerships with academia, public authorities, animal welfare organizations and marine clusters. We value our relationship with business partners and customers globally, and mutual cooperation ultimately leads to product designs based on worldwide experience.

Fishing is generally associated with heavy manual labour. Our automated solutions assist the industry to provide better factory working conditions, and we focus strongly on health, safety and ergonomics both at our own production facilities and wherever our products are used.

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Optimar Sustainability Report 2021

Material topics Based on our four main SDGs we have identified the following GRI topics as material for Optimar. It is in relation to these topics that we can reinforce ours, and the fish handling industry’s positive impact and reduce our and the fish handling industry’s adverse impacts. SDGs 2, 3, 13 and 15 are not our main goals but will be affected by our focus on SDGs 8, 12, 14 and 17.

SDG Material topic Biodiversity

x

x

Water and wastewater

x

x

Food Security

x

Food Safety

x

Animal health and welfare

x

Occupational health and safety

x

Employment practices and working conditions

x

Supply Chain traceability and transparency Non-discrimination and equal opportunities, human rights conditions

x

x

x

x

x

Emissions

Our potential impacts in the value chain

Materials and supply chain

Our operational platform

Distribution and installation

Governance, marketing, and sales

Customers and product end-of-life

Occupational health and safety

Occupational health and safety

Occupational health and safety

Anti-corruption and bribery

Food security

Employment practices and working conditions

Employment practices and working conditions

Working conditions

Non-discrimination and equal opportunities

Food safety

Human rights conditions

GHG emissions

GHG emissions

Employment practices and human rights

Animal health and welfare

Supply chain transparency

Waste management

Responsible business practice

Biodiversity

and responsible business practices

Energy consumption

Retrofitting Energy consumption

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Sustainable and Profitable Growth (G)

Our targeted goals Based on our aim to deliver fish handling with care by improving the sustainability of food production, and the material sustainability topics we have uncovered, we have set ourselves strategic goals to ensure that we achieve our objectives.

Strategic Area SDG

Topic

Short term goal

Long term goal

Growth

SDG 14

Sustainable product development

Align our internal product development guidelines with our sustainability goals.

Be an innovative contributor to the industry by challenging established solutions.

SDG 17

Partnerships for sustainable development

Be the chosen partner for the project CatchID in Norway.

Be the chosen partner for sustainable development of the fish handling industry in cooperation with public authorities, non-profit organizations and academia.

SDG 8

Sustainable economic growth

Anchor plan for ISO 9001-certification with the board, top management and organization.

Achieve ISO 9001-certification.

SDG 12

Responsible supply chain

Map and risk assess all suppliers.

Audit process established and implemented, and auditors trained.

Operations

Establish a Suppliers Code of Conduct.

Establish a policy for supplier risk management.

People

SDG 8

Renewable energy Increase renewable energy share share from 50% to 70%.

100% of the energy used in our factories is from renewable sources.

Emissions

Establish full Scope 3 screening.

Net zero by 2050.

Occupational health and safety

All employees to have downloaded and activated app for incident reporting in the new system Optimize.

Achieved ISO 45001-certification.

Sick leave total under 3%.

Zero work-related sick leave.

Re-establish regular employee surveys. Resignations < 3 per month.

Steady high score on employee surveys and 3 or more qualified applicants for each vacant position in the company.

Attractive employer

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Optimar Sustainability Report 2021

Our people will make a difference

Our ethical responsibility Optimar believes there is a strong correlation between long-term profitability and responsible business practices. This attitude is reflected in the company’s environmental, social and governance (ESG) standards and our ethical guidelines. We support the UN Global Compact’s ten principles on human and labour rights, the environment and anti-corruption, and require the same from our business partners and suppliers

Ethical guidelines and whistleblower policy Our ethical guidelines are known by and available to all our employees. They describe key ethical principles to which Optimar is committed and provide basic principles for expected behaviour and business practice. Our whistleblower e-mail is open for both internal and external disclosures, and both are handled with the same discretion.

Human rights and labour standards We strive to ensure that all our activities worldwide are conducted in accordance with basic human rights. Optimar supports internationally recognized human rights, such as the UN Declaration of Human Rights and the standards promoted by the International Labor Organization (ILO).

Material human rights related to the business are:

ࣽ ࣽ ࣽ

Freedom of association and collective bargaining.

Safe and healthy working environment.

Labour standards, including prevention of forced labour, child labour and non-discrimination in employment and occupation.

ࣽ ࣽ

Working conditions (wages, working hours).

Freedom of expression.

Anti-corruption Optimar is vehemently opposed to all forms of corruption and works actively to ensure that this does not occur within the company. Corruption is not tolerated at Optimar, and violations will lead to disciplinary action.

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Sustainable and Profitable Growth (G)

Our contribution to the industry Fish handling with care is our purpose and we enable our customers to process the fish as sustainably as possible by means of the equipment we supply. Our key objective and passion is to continuously improve the standard of fish handling and enable our customers to process fish more efficiently, safely and with higher quality. Fish welfare, food safety and safe working conditions for operators are always of primary importance In the table to the right, we describe a selection of our accomplishments in 2022 and what we are aiming for in the short and long term regarding our contribution to sustainable fisheries.

Foto: Fuglefjellet

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Optimar Sustainability Report 2021

Focus area

Accomplishments in 2022

Aiming for in 2023

Animal welfare

ࣽ Collaboration with Food Safety

ࣽ Increase availability

Authorities to ensure products in our portfolio that handle live animals adequately safeguard animal welfare.

ࣽ Investigated, documented and

determined equipment parameters to ensure gentle handling.

ࣽ Tested and documented how con-

of stunners to smaller customers (small-scale aquaculture production) in emerging markets

Long term goals Supply fish farms worldwide with delousing solutions that safeguard fish welfare and avoid the use of harmful chemicals or other threats to marine life.

ࣽ Make the Optiflush available to all actors in the market.

necting our Optiflush solution to the Optilice Flush System can remove sea lice more efficiently, while better safeguarding fish welfare, because the water temperature needed is reduced by 2–4 degrees Celsius. This also offers the benefits of reduced energy consumption. The system has been designed specifically to ensure the gentle handling of fish and lice removal without the use of chemicals.

Food quality and food safety

ࣽ Optimized performance to achieve

higher quality fish bleeding. Introduced a new system for flow control and a solution that is more cleanable and gentler compared to the previous solution.

ࣽ Testing and approv-

ing optimized bleeding systems that improve the quality of the seafood products, since bleeding will be performed in a more controlled timespan based on the FIFO principle, using equipment that is more cleanable and gentler than previous versions.

Improve cleanability of our standard tanks and bulk seafood handling systems. Combined with more gentle treatment, this will lead to fewer losses and higher quality food products, increased food safety and reduced use of water, chemicals and time needed for cleaning.

ࣽ Level 1 EHEDG training for our engineers to increase knowledge of hygienic design.

Energy consumption in the value chain

ࣽ Released new CO2-freezing plates

onto the market, showing satisfactory results with short freezing times. ࣽ Developed a new onboard freezer design.

Working conditions (safety, heavy lifting, etc)

ࣽ Perform testing and track-

Optimize energy consumption and freezing time for various species in our plate freezer solutions.

ࣽ Launch new designs for

Become a solution provider for weighing, grading and packing whole fish and fillets without the need of heavy manual labour.

ing of energy consumption and freezing time, with the aim of further optimizing the design to achieve a shorter freezing time and reduced energy consumption in the freezing process.

our main conveyor products where we improve personnel safety without compromising on food safety.

ࣽ Release an automated

packing solution for the onboard market.

Process control and data harvesting

ࣽ Commander Web platform rolled out to multiple new customers, enabling data capture from operations.

ࣽ Customers in general are more inter-

ࣽ Standardize Commander

Web as the platform for production data capture in all of our segments.

ested in data capture from operations.

Commander OnSite delivered to multiple customers, enabling better overall control and diagnostics.

ࣽ Help customer to integrate

ࣽ Applied for participation in the Norwe-

gian Directorate of Fisheries’ CatchID project.

gian Directorate of Fisheries’ CatchID project.

factory-related fuel and emission data.

ࣽ Participation in the Norwe-

Gather operational data that helps document customers’ operations, from a production, environmental and efficiency perspective.

Greater focus on increasing factories’ energy efficiency, based on harvested data.

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Sustainable and Scalable Operating Platform (E)

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Optimar Optimar Sustainability Sustainability Report Report 2021 2021

Our environmental policy The entire fishing industry has a responsibility to manage our global fish resources in the best possible way. At Optimar, we always focus on making products and systems that ensure a high-quality end product, with as little waste as possible. Our target is to reduce our adverse impact and promote our positive impact, as well as exploit possibilities related to the climate and environment Our commitment: ࣽ Map and reduce our carbon footprint. ࣽ Improve waste management, reduce residual waste and increase utilization of purchased materials. ࣽ Increase product lifespans through rebuilding and retrofitting. ࣽ Reduce non-renewable energy consumption. ࣽ Contribute to animal welfare, enable full utilization of raw materials and traceability for sustainable fisheries.

By reducing our operational footprint, we will reduce the footprint of the products we deliver to our customers.

Greenhouse gas (GHG) emissions Optimar started calculating its carbon footprint in 2021. Data for 2022 is compared to 2021 and commented on accordingly CEMAsys is Optimar’s system partner for carbon accounting. This report provides an overview of Optimar’s greenhouse gas (GHG) emissions, which form an integrated part of our climate strategy. The presentation is based on consumption data from internal and external sources, converted into tonnes of CO2-equivalents (tCO2e).

Tonnes of CO2-equivalents per full time employee and per revenue based on total global emissions in Scopes 1&2

2021

2022

tCO2e/full time employee

1.3

0.9

tCO2e/NOK million

0.5

0.4

2021 (tCO2e)

2022 (tCO2e)

Scope 1

258

221

Scope 2

216

86

Scope 3

820

610

Total (Scopes 1 + 2)

474

307

Total (Scopes 1 + 2 + 3)

1294

917

Tonnes of CO2-equivalents from our global business

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Sustainable and Scalable Operating Platform (E)

Scope 1 Scope 1 includes all direct emission sources. This includes all use of fossil fuels for stationary combustion, transportation by company vehicles (both leased and owned) and process emissions.

Emission factors per fuel type are based on assumptions in the IEA methodological framework. Our Scope 1 emissions are lower than in 2021 mainly because we closed one facility in Braila, Romania. Closing the site reduced the annual use of natural gas for heating and internal transport between sites in Romania. The use of diesel decreased in 2022 because we eliminated four diesel cars from our vehicle fleet, three in Norway and one in Spain. The four cars were replaced by one electric car in Norway. The use of company cars was needed in connection with fewer projects in 2022.

Scope 1

2021 (tCO2e)

2022 (tCO2e)

LPG

120.7

114

Diesel

34.7

33.6

Natural gas

39.5

17

194.9

164.6

Petrol/Gasoline

3.4

5.4

Diesel

59.2

51

62.7

56.4

257.6

221.0

Stationary combustion

Transportation

Scope 1 Total

Scope 2 In June 2022, we finalized installation of solar panels at our production facility in Spain. This led to a reduction in electricity consumption from 135 MWh in 2021 to 61 MWh in 2022, and a reduction in tCO2e of 65%. We also reduced our services in Seattle, USA, and the remaining employees in the US have been working from home since April 2022. The closure of the production facility in Braila, Romania, also contributed to reduced electricity consumption in 2022 compared to 2021.

Scope 2 Electricity location-based

18

2021

2022

Electricity

tCO2e

216,2

85,9

Scope 2 Total

tCO2e

216,2

85,9

Optimar Sustainability Report 2021

Scope 3 Scope 3 is so far only partially accounted for, and for 2022 scope 3 includes the categories waste and business travel.

2022 was the first year where we report business travels by air for all units globally. We see that the number of travels is increasing again after reliefs of corona restrictions, but compared to the last pre-pandemic year 2019, we are significantly below. In 2019 business travels by air for the Norwegian unit alone contributed with 788,3 tCO2e to our GHG emissions

Scope 3

Category

Unit

2021

2022

Domestic

tCO2e

144,7

127,9

Intercontinental

tCO2e

121,4

228,8

Continental

tCO2e

87,7

184,2

tCO2e air travel total

tCO2e

353,8

540,9

Business-related air travel

In 2021, we experienced an acid leakage incident which, in addition to its local environmental impact, meant a large increase in hazardous waste during the cleanup process. 380 out of 412 tCO2e from our waste handling was due to the acid leakage. If we exclude the hazardous waste from the incident, we note a 30 per cent reduction in GHG emissions from waste handling in 2022 compared with 2021. One initiative for reducing residual waste was the implementation of waste sorting stations at all Norwegian sites.

In 2022, we ended our use of water jets, and the disposal of the sand gave a non-recurring increase in residual waste in 2022. The handling of the sand alone contributed 9.8 tCO2e.

Scope 3

Category

Unit

2021

2022

Residual waste

tCO2e

17

33,5

Metal waste, recycled

tCO2e

3,0

2

Plastic waste

tCO2e

28,9

26,9

Hazardous waste

tCO2e

412,5

6

Other

tCO2e

Waste

tCO2e waste total

5,2

0,8

466,6

69,2

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Sustainable and Scalable Operating Platform (E)

We apply our expertise in pursuit of more sustainable fisheries 20 20

Optimar Optimar Sustainability Sustainability Report Report 2021 2021

Sustainable operating platform initiatives We have a steady focus on measures for improvement in our own operations. This may include changes for reduced emissions, a safer working environment or to make the company robust against future changes

Having three facilities located nearby in Norway and two in Romania generates a lot of transport between the sites. Now that we have optimized production at one facility in Norway and one in Romania we have significantly reduced internal transport and thereby decreased our fuel consumption. We have not included this in our Scope 3 emission calculations yet, so the reduction is not visible in the data set.

Since the acid leak in 2021, we have worked hard to find a replacement for our acid treatment of steel.

The solution had to be not only effective and offer a high capacity, but also environmentally friendly, with a low risk of leakage, and ensure the safest possi-

ble working environment for our operators. We have successfully identified a container solution that fulfils all our requirements. In addition, the ability to perform acid treatment in-house again will reduce our need for transportation. Over a period of six months in 2022, 46 tonnes of steel were transported back and forth to a third-party facility for acid treatment, a process requiring 100 separate journeys. Roughly calculated, this initiative will reduce CO2 emissions from transport relating to acid treatment by 20–25 tCO2e per year compared to 2022.

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People (S)

Our social responsibility We are convinced that diversity and inclusion are important factors for growing our business and our results. Diversity in gender, background, culture and experience contributes to a strong work environment A blend of different voices and thoughts makes Optimar an exciting and inclusive place to work that fosters personal development and professional growth.

Equal rights is a fundamental principle at Optimar, and this is safeguarded through our open and fair employment policy, salary policy and ethical guidelines for all employees and business partners.

Our goal is to have a workplace that is free from all discrimination and harassment.

This section on equality, diversity and inclusion constitutes Optimar’s response to the activity and reporting obligation pursuant to the Norwegian Equality and Anti-Discrimination Act for the period 1 January to 31 December 2022.

In 2022, Optimar carried out a significant restructuring and downsizing of its organization in Norway. Considerable efforts were made to implement the process while maintaining a constant focus on the people in the organization an

Organization of our equality, diversity and inclusion work The day-to-day activities are carried out by our HR organization.

Responsibility lies with the Top Management. HR and management cooperate with unions in quarterly dialogue meetings Issues and decisions relating to the working environment are discussed in our Working Environment Committee (WEC). Four such meetings were held in 2022, and a new WEC was established following the restructuring process.

The new WEC consists of four employee representatives and four management representatives, and quarterly meetings are planned for 2023.

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Optimar Sustainability Report 2021

Equality, diversity and inclusion at Optimar Gender equality At the close of 2022, we had 334 employees, 15 per cent of whom were women, 85 per cent men and 0 per cent identifying as non-binary.

The table below shows the gender distribution per position level, stated as a percentage (GRI 405-1).

Leadership level

% woman

% men

%non-binary

Level 1 Group CEO

0

100

0

Level 2 Chief officers

0

100

0

Level 3 VP and equal

29

71

0

Level 4 with personnel responsibility

24

76

0

Level 4 without personnel responsibility

27

73

0

Level 5

11

89

0

Total

15

85

0

Even though the total percentage of women compared to men in the global organization remains the same as in 2021, there are differences at each level.

The table shows women’s pay as a percentage of men’s pay in full-time positions at the different levels (GRI 405-2) The figures are based on the Norwegian workforce.

Category

% of woman

Women’s pay as a % of men’s pay

Level 3

18%

74%

Level 4 with personnel responsibility

10%

81%

Level 4 without personnel responsibility

24%

91%

Level 5

14%

99%

Listed salary statistics do not consider factors such as different levels of education, seniority, job complexity and responsibility, nor labour market conditions for specific professions. We nevertheless acknowledge that the pay gap between women and men at the most senior levels is substantial and further investigations will be conducted in 2023. If the underlying reason is attributable to gender or other types of discrimination, we will strive continuously to reduce the gap, because equal pay is important to be an attractive employer and foster a culture of diversity.

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People (S)

Parental leave Optimar complies with the regulations related to parental leave in each of the countries we operate in. In the figures, we also see the impact of the regulations in the different countries.

The table below shows the total period of parental leave taken in weeks and as a percentage of the leave taker’s own gender in the workforce. No employees in the USA took parental leave in 2022.

NORWAY

Taking parental leave

Total number of weeks

As percentage of own gender

Men

259

12.16

Women

108

5.4

Total number of weeks

As percentage of own gender

Men

3

0.25

Women

52

13

Total number of weeks

As percentage of own gender

ROMANIA

Taking parental leave

SPAIN

Taking parental leave

24

Men

17

1,32

Women

16

0.07

Optimar Sustainability Report 2021

Part time and temporary positions The table shows the number of employees globally in part-time and temporary positions, by gender.

Position

Women

Men

Part-time

2

5

Involuntary part-time

0

0

Temporary

3

11

Our eight apprentices are not included in the data for temporary positions.

Every published job advertisement is for full-time employment with Optimar. In every case where an employee works part-time, it is by the employee’s own choice. The company offers reduced hours to be inclusive and adapt to the employee’s situation. Temporary employment is used only when the work itself is of a temporary nature, for instance in connection with a project or as a substitute for an employee taking leave of absence.

Age diversity A blend of backgrounds, genders, ages, competence and mindsets contributes to the successful development of our company, when acknowledged and taken advantage of in the right way. Our workforce consists of many different disciplines and nationalities, and cooperation is a vital part of our success, although it can be challenging.

The table shows a breakdown of our workforce by age, stated in % (GRI 405 -1).

Position level

Age < 30

Age 30-50

Age 50+

Level 1

0.0

0.0

0.4

Level 2

0.0

0.0

0.7

Level 3

0.0

2.8

2.1

Level 4 with personnel responsibility

0.0

4.9

1.1

Level 4 without personnel responsibility

0.0

4.2

3.5

Level 5

7.8

45.6

26.9

Total

7.8

57.6

34.6

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People (S)

Equality, diversity and inclusion-related activities Our personnel policy is gender neutral in all areas and states that we work to promote equality and hinder discrimination. Work tasks and workplaces are organized and adjusted where there are special needs For example, all our general staff meetings are conducted with an interpreter for the hearing impaired. Our recruitment policy is open and fair, but there was little new recruitment in 2022 due to the implementation of the restructuring process.

Area

Risk

Recruitment

Fear of the “other”.

Prejudice.

Actions

In 2023, we aim to train our leaders to use our uniform interview questionnaire to ensure and document

ࣽ Annual local salary negotiations with

Assess further improvements in the salary policy to secure equal pay for equal work.

Unconscious discrimination.

Wages and working conditions

Individual salary negotiations, men are often more likely to negotiate salary compared to women.

Some professions have a higher salary expectation than others due to the scarcity of skills in the market.

Promotion and talent development

Discrimination in employees chosen for training and promotions.

trade unions.

ࣽ Unions are provided with salary data for men and women to reveal gender-based differences.

ࣽ All employees are included in our performance management programme: “Talent”.

ࣽ Our annual employee dialogue meet-

ings contain standardized questions for promotion, development wishes and opportunities.

ࣽ All employees are reviewed based on standardized Core Behaviours and Results.

ࣽ After the performance review, all

leaders are calibrated to ensure that everyone is assessed on the most equal basis possible.

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Optimar Sustainability Report 2021

Status and goal

ࣽ HR attends all interviews.

No further actions planned at the moment.

Work/life balance

Harassment, sexual harassment and gender-based violence

Always available – the boundary between work and leisure is unclear.

ࣽ Flexible working hours. ࣽ Working from home may be agreed on a temporary or permanent basis.

Career possibilities may be affected when starting a family.

ࣽ Paid free time for breastfeeding.

Male dominated industry.

ࣽ We have ethical guidelines that state

Work abroad in various cultures.

Work performed outside our company.

our zero tolerance for harassment and abuse of any kind.

Consider coverage of full salary during parental leave, including the intermediate payment above 6G for employees in the Norwegian workforce. Other solutions apply to employees abroad.

threats and how to handle and report them.

ࣽ All new employees and leaders are informed of our ethical guidelines.

ࣽ Field service engineers are given training in the topic.

ࣽ Every second year we conduct a survey specifically designed to reveal harassment and other forms of abuse.

Facilitation

Lack of accommodation for employees with regard to functional ability, gender identity, religion and age.

ࣽ We are an Inclusive Working Life part-

ner (IA company) and strive to make arrangements for employees with reduced functional abilities through individual adaptation of both the workplace and work tasks.

No further actions planned at the moment.

ࣽ Our buildings have elevators and HC-restrooms available.

ࣽ General staff meetings are conduct-

ed with an interpreter for the hearing impaired.

ࣽ Production workers who work in a

noisy and/or dusty environment are, in addition to protective equipment, offered a health check every second year, while the rest of our employees are offered a free health check every third year.

ࣽ We have developed a senior employee policy.

In 2022, we performed an employee survey that focused on psychosocial issues in the workplace. The survey was global and anonymous. We had a 71% response rate, and the results showed us that, in general, we have a good psychosocial working environment. However, the results also showed that it is important to keep a continuous focus on the topic and that we need to improve the way our Whistleblower Policy is implemented in the organization.

In 2023, we will provide training for all employees in our ethical guidelines and provide some dilemmas that groups of employees can use as training materials. The same training will also provide detailed information on our Whistleblower Policy and how reported cases are handled. The survey will be repeated in 2024 to follow up on the impact of the additional training.

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People (S)

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Optimar Sustainability Report 2021

Health, Safety and Work Environment For people to be receptive to development and perform at their best, they require a good work/life balance and good health. Optimar is an industrial company, and employees perform tasks associated with risk, such as welding, use of heavy machinery, automation and assembly. We believe in building a strong safety culture through involvement and training

Sick leave and work-related injuries Our goal is zero workplace injuries that result in employees being absent for a workday or more, otherwise known as Lost Time Injuries (LTIs). In 2022, we focused heavily on the reporting of near misses and actual injuries. We also launched a new reporting system where HSE and quality-related non-conformances can be reported via an app, to make it more convenient for our field service engineers and production workers. Easier access to reporting created an increase in reported events and reported LTIs, which we consider a step in the right direction towards a transparent and strong safety culture.

In 2022, we experienced 11 recorded injuries at Optimar, seven of which were LTIs. The table below shows the number and rate of work-related injuries per million hours worked (GRI 403-9) for Optimar globally.

Type of injury

Number

Rate*

Fatalities

0

0

High-consequence

2

3,1

Recordable

11

17

*(FTE*1940h per year) x 1 million hours

Average sick leave increased from 3.6 per cent in 2021 to 4.3 per cent in 2022. Our target is a monthly global sickness absence rate of less than 3 per cent, and we follow up both managers and employees to track performance in this area.

In comparison, the average sick leave rate for industrial companies in Norway was 5.9 per cent in 2022 according to the Confederation of Norwegian Enterprise (NHO).

A total of eight sick leave events were registered as work-related sick leave or LTIs in 2022.

No special measures to lower the rate of sick leave were implemented in 2022 and our target of 3.0 per cent remains the same for 2023.

Employee engagement We used to measure employee engagement twice a year with the eNPS model. We experienced that the method chosen was not well implemented and very time consuming, while managers did not find it provided particularly high-value insights. In September 2022, we decided to abandon the survey. Our goal for 2023 is to implement a new employee engagement survey during the year.

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People (S)

Competence, skills development and training It is our responsibility as an organization to ensure that our employees have the skills, training and certification they need to perform their work. In 2022, we expanded our established Certified to Operate programme to include production workers as well as field service engineers.

Among other things, our employees are trained in:

ࣽ ࣽ ࣽ ࣽ ࣽ ࣽ ࣽ

Electrical safety Work at height and personal lift Scaffolding and ladder safety Hot work Extensive first-aid Forklift and crane handling Personal protective equipment.

We are an approved apprenticeship company and have eight apprentices in our production department, seven men and one woman in the reporting year.

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Optimar Sustainability Report 2021

In 2022 we focused on skills training for 20 of our managers or management candidates through the leadership training programme “Nature of leadership”. Dedicated leadership is the key to driving engagement and development, and recognizing leadership as a skill that needs to be trained and developed results in conscious and competent managers.

Our sales team and procurement department conducted training in negotiation and contract standards. It is important that we are professional and reliable in processes with our customers and suppliers, and raising competence in this area contributes to our reputation as a solid and trustworthy supplier.

Employees are actively participating in networks and clusters to keep updated and continuously learn from other businesses and academic institutions in our local area.

Supply chain responsibility Optimar seeks to ensure responsible business practices by avoiding purchases that contribute to or entail adverse impacts on human rights and decent working conditions.

Information regarding our company and our work can be found in the opening pages of the sustainability report.

The part of this report under the headline Responsible Supply Chain is also our response to the Norwegian Transparency Act for the reporting period 1 July to 31 December 2022.

Our Global Procurement & Logistics Department is responsible for supplier-related activities under the Transparency Act, while top management has overall responsibility for compliance with applicable law and ethical standards.

So far, we have had contract requirements stating that our suppliers must abide by our code of conduct. We want to be clearer about what we expect from our suppliers and business partners, and our new Supplier Code of Conduct will be finalized in 2023. We will continue to follow up our suppliers through contract obligations. Those interested in information regarding human rights and working conditions in our supply chain are referred to the contact information on our website www.optimar.no. We will respond no more than three weeks after the request has been received.

If suppliers wish to report possible or actual breaches of our code of conduct, they are invited to use our whistleblower e-mail. This is open for both internal and external disclosures, and both are handled in accordance with the same procedure and with the same discretion.

Members of our procurement team are each responsible for following up a specific portfolio of suppliers, on which they also perform periodic risk assessments. In 2022, we had 379 unique suppliers and business partners. Our supply chain varies from project to project, but our main purchase category is steel-related products. We also purchase products from Original Equipment Manufacturers (OEMs), which makes it challenging for us to risk assess the entire supply chain.

With effect from 2022, we now conduct an annual evaluation of our suppliers. Prioritized risk areas investigated in the supplier evaluation are:

ࣽ Fundamental human and labour rights ࣽ Health and safety ࣽ Anti-corruption and bribery

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People (S)

Supplier risk management Optimar acknowledges that we cannot handle all potential adverse impacts in our supply chain, but being aware of risks helps us prioritize our actions in pursuit of a sustainable supply chain.

We use a third-party system for supplier mapping and initial risk assessment. A complete overview of our first-hand suppliers and business partners broken down by category is included in the platform and is continuously updated. An initial risk assessment is performed based on the supplier’s geographic profile and their industry, product or service category, and the percentage of goods purchased from that specific supplier compared to total purchases.

A survey with fully defined questions based on the GRI standard is sent out to suppliers upon registration and annually thereafter. Based on the initial risk assessment and responses to our surveys, we give our suppliers a total score and risk rating with regard to their potential adverse impact on human rights and decent working conditions.

It is challenging to survey beyond the first link in the supply chain, but our first-hand suppliers are encouraged to give an assessment of their subcontractors in the same survey.

Optimar’s ESG risk rating for suppliers in 2022, shown as a map indicating the risk rating for workers’ rights.

Source used for risk rating: Risk of workers’ rights violations: International Trade Union’s Global Rights Index Risk of corruption: Corruption Perception Index

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Optimar Sustainability Report 2021

Action priorities have been set for the most significant risks of human and labour rights abuses. The main risks identified are described below.

Component/Activity Steel

Risks

Measures

ࣽ Environmental impact. Steel industry is

ࣽ Frequent supplier visits.

responsible for 7–9% of the world’s CO2 emissions.

ࣽ Supplier Code of Conduct.

ࣽ We buy steel from China, which scores low on international human rights evaluations.

ࣽ Mining and metal sector. Small-scale oper-

ations tend to use low-skilled manual labour and have poor health and safety standards.

Small-scale mines may be connected to organized crime and corruption

OEM

Outsourcing

ࣽ Optimar’s contracting parties buy engineered

components from a variety of sub-suppliers and usually undertake assembly in their own workshops. Optimar has limited transparency with respect to the lower tiers of the supply chain. We consider that the most likely adverse impacts are: poor working conditions and inequality at sub-supplier workshops (in rough machining and welding workshops), and unreasonable working hours, inadequate leave periods and low wages for workers during equipment installation on site.

ࣽ Human rights and working conditions

controlled by another company and other statutory requirements than those applicable in Norway.

ࣽ Supplier survey with sub-supplier coverage.

ࣽ Onsite visits or audits.

ࣽ Visits to subcontracting factories. ࣽ Contract requirements.

We have established an internal escalation process to deal with suppliers about which we still have unanswered questions or where our risk assessment has revealed an unacceptable level of risk. To ensure that all suppliers and business partners are treated equally, our risk response plan contains a description of the prescribed actions to be taken in relation to each identified risk.

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Everything looks great from a distance. We get up close to find solutions

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Optimar Optimar Sustainability Sustainability Report Report 2021 2021

Content: Optimar AS Design: Optimar AS Photo: various artists, Adobe Stock June 2023 Optimar AS www.optimar.no

OptimarSustainability SustainabilityReport Report2021 2021 Optimar

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Together we create value for generations Our responsibility

Optimar Valderøyvegen 1129 6050 Valderøya, Norway info@optimar.no www.optimar.no Phone: +47 70 10 80 00 36

Optimar Sustainability Report 2021