Introduction ESG performance EU Taxonomy Progress on ESG Data and assurance Letter from the CEO About Nilfisk How Nilfisk operates Business plan Governance Materiality assessment UN SDGs & EcoVadis Sustainability commitments UN Sustainable Development Goals Using EcoVadis to guide progress Nilfisk strives to contribute to the UN Sustainable Development Goals (SDGs) through its products, services and responsible business practices. Nilfisk defines its impact on the 17 SDGs in relation to Business Plan 2026 and the most material topics identified through the 2023 double materiality assessment. Impact through products and services Nilfisk contributes to health and safety at critical locations like hospitals, production facilities, distribution centers, construction sites, schools, households and many others. Nilfisk helps its customers to provide not only clean but also safe and operational environments. And the task to keep the world clean is growing in importance as the effects of climate change become increasingly visible. Further, Nilfisk products combat hazardous dust and strengthen health and safety at the workplaces of its customers. Consequently, through products and services, Nilfisk considers its primary societal impact to be related to SDG 3. Impact through responsible business practices Through its sustainability commitments, Nilfisk strives to contribute to SDG 5 (Gender equality), SDG 7 (Affordable and clean energy), SDG 12 (Responsible consumption and production) and SDG 13 (Climate action) and expects its business partners to do the same. Compared to the SDGs reported on in 2022, Nilfisk has excluded SDG 10 (Reduced inequalities) and SDG 16 (Peace, justice, and strong institutions), applying a threshold of impact materiality and financial materiality. In 2024, Nilfisk will continue to collaborate with the UN Nilfisk contributes to these SDGs Impact through products and services SDG 3 Good health and well-being Impact through responsible business practices SDG 5 Gender equality SDG 7 Affordable and clean energy SDG 12 Responsible consumption and production SDG 13 Climate action Global Compact Network Denmark, to inspire and accelerate its work with the SDGs. Validating the Nilfisk approach, the industry analysis of the International Electrotechnical Commission’s (IEC) found that manufacturers such as Nilfisk contribute to SDG 3 as well as SDG 8.8 (Protect labor rights and promote safe and secure working environments) and SDG 11.5 (Significantly reduce the number of deaths and the number of people affected by disasters). Nilfisk considers these impacts closely connected with that of SDG 3. Nilfisk’s sustainability performance is assessed annually by EcoVadis. In the latest assessment, conducted in November 2023, Nilfisk was awarded a Silver Medal, demonstrating an advanced management system on environmental issues. The company’s total score was 65 out of 100, 20 points higher than the average score of companies in the ‘Manufacturer of special-purpose machinery’ industry group. This places Nilfisk among the top 14% of the 2,049 companies from this industry reporting to EcoVadis. Impacting the total score was Nilfisk’s score in the category ‘Environmental activities’, which in 2023 was 80 points out of 100 compared to 90 out of 100 in 2022. This is due to a 2022 settlement with the California Air Resource Board (CARB), resolving allegations against two of Nilfisk’s US-based subsidiaries, Hydro Tek Systems, Inc. and Nilfisk Pressure-Pro, LLC, over a lack of required certifications for evaporative system components in certain pressure washers. Nilfisk initiated voluntary third-party testing on the relevant components, which confirmed that emissions were within regulatory limits. Nilfisk reported on this issue in the Sustainability Report 2022. Nilfisk’s target is to continuously improve its scoring to obtain and sustain a Gold Medal rating. Nilfisk views the EcoVadis Silver Medal in 2023 as an opportunity for further developing internal processes and recognizes and supports that being assessed by EcoVadis raises the ambition level for companies. About EcoVadis EcoVadis assesses and monitors more than 100,000 global companies’ performance and progress on ESG subjects annually, and is considered the world’s largest provider of business sustainability ratings. New scoring methodology ahead From 2024, EcoVadis will change its scoring methodology, basing its scoring of companies on their relative performance compared to the overall reporting population, instead of the absolute number of points scored by the individual company. This new methodology could also impact the rating of Nilfisk. 10 SUSTAINABILITY REPORT 2023
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