Climate change

[SBM-3-48a] The topic of climate change affects NORMA Group’s own business activities as well as the upstream and downstream stages of the value chain. [SBM-3-48b][SBM-3-48h] The identified impacts, risks and opportunities on this topic influence NORMA Group’s business model and corporate strategy by continuously adapting the technological requirements for end products to meet increasing environmental awareness. In particular, the new legal requirements, such as stricter emission regulations and the technological shift towards alternative drive technologies such as hybrid, electric and hydrogen drives, represent material framework conditions that influence NORMA Group’s product development. [SBM-3-48b] Information on the measures NORMA Group is taking to respond to this influence can be found in the chapter E1 CLIMATE CHANGE. [SBM-3-48ci] NORMA Group has a negative impact on climate change and energy supply through its production processes, supply chains and the geographical location of its production sites, as this generates emissions, waste and other environmentally harmful effects and some sites are located in climate risk areas. However, NORMA Group also has positive impacts through various environmentally friendly projects and processes, such as the use of renewable energy or of charging stations for electric vehicles, and improved energy and water management. [SBM-3-48cii]

The identified impacts are related to NORMA Group’s corporate strategy and business model, as NORMA Group is a manufacturing company. [SBM-3-48civ] The impact of climate change motivates NORMA Group to tap market potential and strengthen its competitiveness in the long term through innovative technologies, sustainable production processes and the development of environmentally friendly products. These ambitions are set out in the sustainability goals, for example. NORMA Group’s own activities and business relationships (e.g. through suppliers) have an impact on climate change. [E1-SBM-3-18] The material climate-related risks are climate-related physical risks and climate-related transition risks. [SBM-3-48d] In the fiscal year, the material risks, such as the necessary adjustment of production processes, and opportunities, for example customer acquisition and good reputation, in the area of climate change can influence NORMA Group’s financial position, earnings position and cash flows. [SBM-3-48e]