Resource use and circular economy

 

Material impacts, risks, and opportunities and their interaction with strategy and business model (SBM-3)

NORMA Group has identified actual negative impacts in the area of waste management and circular economy. As part of the materiality assessment, NORMA Group prioritized the resources used based on the most frequently purchased product groups. In particular, the material groups steel, wire, granulates, metal components, and plastic parts were taken into account. The negative impacts identified include both the generation of hazardous and non-hazardous waste within the Company’s own operations and the use of materials and primary raw materials along the upstream value chain. NORMA Group counters these impacts with a strategic focus on avoiding and minimizing production waste and by continuously questioning the use of materials and resources.

The negative impacts are particularly evident in the various phases of production and throughout the entire life cycle of the products, especially with regard to high use and consumption. In the course of these processes, both hazardous and non-hazardous waste is produced, which causes additional pollution of the environment and resources. NORMA Group contributes to the impact with its own activities and business relationships (e.g., through suppliers) in the area of waste management and circular economy.

 

Policies related to resource use and circular economy (E5-1)

NORMA Group has an environmental concept to address the negative impacts of its activities in the area of resource use and circular economy. The concept relates to NORMA Group’s own operations and the upstream value chain. Among other things, the environmental concept includes the Company’s principles with regard to waste generation as a key indicator for the efficient use of raw materials. The reduction or avoidance of waste is managed in accordance with the environmental management systems at each NORMA Group production site. NORMA Group does not take the waste hierarchy into account. NORMA Group has laid down the principles for its environmental management system in a global environmental guideline. Detailed information on NORMA Group’s comprehensive environmental concept can be found in the section POLICIES RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION (E1-2). NORMA Group collects data on the volume of both hazardous and non-hazardous waste. Depending on the type of waste, NORMA Group employs different recycling methods. In some cases, unquantifiable quantities of plastic waste were regranulated and returned to the production process.

NORMA Group’s environmental concept is not yet geared toward phasing out the use of primary materials or increasing the use of secondary resources, nor toward the sustainable procurement and use of renewable resources.

 

Actions and resources related to resource use and circular economy (E5-2)

Efficient waste management and the integration of circular economy principles are intended to increase NORMA Group’s resource efficiency. The reduction of waste is just as much a part of excellence in production as, for example, the return into the production process as an element of the circular economy. The processes and actions are currently being implemented at the individual site level. To promote the positive impacts, NORMA Group is currently in the process of establishing appropriate Group-wide processes to develop, implement, and track sound actions. Regular auditing in accordance with ISO 14001 means that certain actions must be implemented and progress made as part of the audit in order to obtain certification. These certifications are available at 92% of the production sites. ISO 14001 certification demonstrates that an environmental management system has been implemented to minimize environmental impacts and ensure compliance with legal requirements.

In financial year 2025, NORMA Group worked on a site-specific project to manufacture a product using recycled materials. In doing so, it was possible to reduce weight in small quantities and thus save material.

Minor investments were made for the above-mentioned actions. The actions contribute to achieving NORMA Group’s climate goals and at the same time strengthen the Company’s resilience.

 

Targets related to resource use and circular economy (E5-3)

NORMA Group is committed to continuously reducing its environmental footprint. In the area of resource use and the circular economy, specific goals were derived from this that aim to systematically manage resource-related impacts, risks, and opportunities. The central goal was to limit NORMA Group’s metal and plastic waste to a maximum of 7.15kg per EUR thousand of sales within financial year 2025. This goal applied to all of the Company’s production facilities.

A central commitment in NORMA Group’s environmental concept is the efficient use of raw materials and the reduction of waste. The defined goal substantiates this principle and is measured using the indicator of waste generation for the two types of waste mentioned. The background to the objective was to ensure a steady reduction in waste generation based on past waste generation. The target is not based on scientific findings. NORMA Group did not involve any stakeholders in setting the goal. The defined goals relate to the production phase and are voluntary. No ecological thresholds or company-specific breakdowns were taken into account when setting the targets. NORMA Group monitors the goal on the basis of defined metrics. Further information can be found in the section RESOURCE OUTFLOWS – WASTE (E5-5). The goal was achieved in 2025.

The overarching goal in financial year 2026 is to limit the amount of metal and plastic waste generated at NORMA Group to a maximum of 10.98kg per EUR thousand of sales for all production locations.

 

Metrics related to resources use and circular economy (E5-5)

 

Resource outflows – waste (E5-5)

The following table shows the total amount of waste generated by NORMA Group’s own activities in financial year 2025.

To obtain an approximate indication of waste generation, a specific waste volume is determined. This is determined separately for office space and logistics centers, as the reference values differ. For office space, 900 grams per employee and per working day (220 days) are assumed. The absolute volume of waste has been scaled on this basis. The basis for the logistics centers is a specific waste volume for a mathematically calculated reference site. On the basis of this key figure, the volume of waste was determined for the sites that could not report any directly billable waste. The estimate includes a share of 10.25% in relation to the absolute amount of waste.

NORMA Group’s waste contains the following materials: Metal waste, plastic waste from the production of products, cardboard waste and wood waste from logistics processes, and residual waste.

NORMA Group generated 791 tons of hazardous waste. The classification of waste is carried out by each NORMA Group site. No radioactive waste is produced.

The data basis for NORMA Group’s waste management is based on invoices and waste disposal certificates / weighing slips. The scope includes all NORMA Group sites worldwide. The local waste management practices are part of the ISO 14001 certification. As there are no global waste classifications, classification is carried out at each site in accordance with local rules and regulations. The data on the types of recycling also comes from the disposal companies. The majority of NORMA Group’s waste is recycled, which is due to the nature of production, for example by using pure metal waste and black parts from injection molding machines, which have a high recyclability.

In addition to the reported metrics in accordance with the ESRS, NORMA Group provides further information on resource utilization. As the reporting requirements in this area cannot yet be fully met, NORMA Group provides additional information on a voluntary basis. They are not currently the subject of the external audit. This information can be found in the following section: ADDITIONAL VOLUNTARY SUSTAINABILITY DISCLOSURES

 

Resource outflows – Products and materials (E5-5)

NORMA Group’s products and materials are partly designed according to circular economy principles: durability, reusability, reparability, and recyclability. The resource outflows can be broken down according to NORMA Group’s three main business segments: fluid systems, fastening systems, and water management.

a) Fluid systems

For the durability of fluid systems, NORMA products are generally designed to last as long as the service life of the end product in which NORMA product was installed. This means that the durability of NORMA product depends on the durability of the actual end product. The reason for this is that NORMA Group develops its products in such a way that they fulfill and meet specific customer requirements and are therefore specifically suited for the corresponding end product.

Fluid systems are not repairable, as NORMA Group’s basic recommendation to its customers is to replace the entire NORMA product instead of repairing it. NORMA Group’s products are generally less complex than the products of its end customers. As a result, repairability is very limited and, due to the design principle of surviving the service life of their customers’ applications, repair is not intended.

NORMA Group’s fluid systems products are theoretically 60% recyclable. In principle, the recycling of NORMA products is organized by their respective customers, e.g., at the end the service life. To simplify disposal for customers, NORMA Group identifies the materials used in its products. Depending on the materials and fluid systems used, different methods can be used for recycling, from mechanical recycling to chemical recycling. Within fluid systems, NORMA Group distinguishes between multi-layer and single-layer pipes. Multi-layer pipes make up 35% of fluid systems and are not commercially recyclable due to their composition. Single-layer pipes make up 60% of fluid systems and are generally recyclable.

b) Fastening systems

For the durability of fastening systems, NORMA products are generally designed to last as long as the service life of the end product in which NORMA product was installed. This means that the durability of NORMA product depends on the durability of the actual end product. The reason for this is that NORMA Group develops its products in such a way that they fulfill and meet specific customer requirements and are therefore specifically suited for the corresponding end product.

Fastening systems are not repairable, as NORMA Group’s basic recommendation to its customers is to replace the entire NORMA product instead of repairing it. NORMA Group’s products are less complex than the products of its end customers. As a result, repairability is very limited and, due to the design principle of surviving the service life of their customers’ applications, repair is not intended.

NORMA Group’s products in the area of fastening systems are theoretically 100% recyclable due to their recyclable individual components. In this product group, too, the recycling of the products is organized by the respective customer. Fastening products are made from various types of steel (structural steel, stainless steel) and aluminum. Steel and aluminum can generally be up to 100% recycled. It is standard industry procedure to collect steel and melt it down for reuse. A few components of the fastening products are made of elastomers, which in turn are almost completely recyclable.

c) Water management products

When it comes to the durability of water management products, NORMA products are generally long-lasting and last for decades. These products are guaranteed for 1 to 7 years.

All products are designed and manufactured to withstand installation and use by the consumer over an extended or long-term life cycle. These extended or long-term system life cycles range from 3 to 10+ years. The product warranty is at least 1 year up to a maximum of 7 years under the intended applications and normal operating conditions.

Water management products are generally repairable. The majority of products are designed and manufactured with repairable and/or replacement components, such as gaskets, fasteners (screws, bolts, nuts), lids, caps, connectors/adapters, and grates. In addition, one product development criterion is a “backward compatibility” element to support the retrofitting of existing products with new product designs.

NORMA Group’s water management products are generally 100% recyclable due to their material composition. In most cases, the original products can be mechanically dismantled in one step to ensure the recycling of the individual plastic components.