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

Material impacts, risks, and opportunities

 

 

Classification

Time horizon

Value chain

Impacts, risks, and opportunities

Impact, risk, opportunity

short-term

medium-term

long-term

upstream

own activities

downstream

Water resources (ESRS E3)

Water consumption in our own production processes

Negative impact

 

NORMA Group has identified a negative actual impact on water resources, especially in water risk areas. This includes the water consumption in the production processes within NORMA Group’s own operations. Excessive water consumption can lead to water scarcity in the region and thus have a negative impact on the environment and society; however, NORMA Group uses closed cooling processes that allow part of the water to be used in the water cycle in the long term.

NORMA Group’s own activities contribute to the impact in the area of water resources through its water requirements in production. These relationships are directly linked to NORMA Group’s corporate strategy and business model as a manufacturing company. NORMA Group is aware of its responsibility and tries to counteract its negative impacts through responsible and efficient use of water resources. This applies to the production processes of the products.

 

Policies related to water and marine resources (E3-1)

NORMA Group has an environmental concept to address the negative impacts of its activities in the area of water resources. NORMA Group’s water consumption within its own production processes has a negative impact on the water resources available in water risk areas. By implementing appropriate internal processes and guidelines, the Company also promotes a resource-conserving approach. No material risks and opportunities in connection with water resources were identified.

The global environmental concept includes the Company’s principles with regard to water resources. It is of great importance for NORMA Group, as some NORMA Group sites are located in areas of very high water stress. The Aqueduct Water Risk Atlas was used to identify these areas. With regard to water resources, the principles of the environmental concept include the conservation of water resources and the commitment to comply with all national and local regulations. These principles apply to all NORMA sites worldwide. The principles of the environmental concept with regard to water resources are anchored in NORMA Group’s environmental management system and set out in a global environmental guideline. Detailed information on NORMA Group’s overarching environmental concept can be found in the section POLICIES RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION (E1-2).

 

Actions and resources related to water and marine resources (E3-2)

In order to achieve the targets set, NORMA Group has defined various actions and resources for areas at water risk, including areas of high water stress. These processes and actions are currently being implemented at the individual site level. In order to be able to respond more quickly to unexpected events such as the occurrence of leaks, the frequency of data collection has been increased to monthly. This more regular data collection means that irregularities can be detected earlier and appropriate counteractions can be initiated promptly. The actions focus in particular on detecting leaks and sustainably reducing the resulting losses. 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.

 

Targets related to water and marine resources (E3-3)

NORMA Group is committed to continuously reducing its environmental footprint. In the area of water resources, NORMA Group has set itself a target for financial year 2025 to address the identified material impact. Water consumption should be limited to a maximum of 142.0 liters per EUR thousand of sales within the financial year. The target figure is based on expected sales, among other things. The target was valid for all NORMA Group production sites for financial year 2025. With regard to water resources, the principles of the environmental concept include the conservation of water resources and compliance with national and local regulations. There is therefore a connection between the target and the environmental concept. The rationale for setting the target was to ensure a steady reduction in water consumption based on past water consumption. The target is not based on scientific findings. NORMA Group did not involve any stakeholders in setting the target. The defined target is voluntary. No ecological thresholds or company-specific breakdowns were taken into account when setting the targets. NORMA Group measures progress toward achieving the target using a defined metric for water consumption. Further information can be found in the section WATER RESOURCES (E3-4). The target was achieved in financial year 2025.

The overarching goal in financial year 2026 is to limit NORMA Group’s water consumption to a maximum of 101.0 liters per EUR thousand of sales for all production locations.

 

Metrics related to water resources (E3-4)

NORMA Group actions its water consumption in order to monitor and track the defined goals and the effectiveness of the actions. NORMA Group’s total water consumption in financial year 2025 amounted to 128,642m3. The data basis for this information is based on the consumption values of the individual sites.

To obtain an approximate indication of water consumption, specific water consumption per employee is calculated separately for office and logistics space. These specific consumption values are based on a mathematically calculated reference site for office and logistics centers. The applicable figure is 1.88m3 per employee for office space and 6.98m3 per employee for logistics centers. Fresh water consumption was determined on the basis of this parameter for those sites that were unable to report directly billable water consumption. The estimate includes a share of 1.37% of total fresh water consumption regardless of the water stress region.

Water consumption in areas impacted by water risks and high water scarcity (high water stress areas) amounted to 79,805m3.

NORMA Group’s total recycled and reused water amounts to 3,857m3. The reported quantities and data were determined using our own measurement technology by calculating differential quantities.

As in the previous year, NORMA Group’s total stored water amounts to 1,457m3. The metric for stored water corresponds to the planned size of the water reservoir and is reported by the sites that have corresponding water reservoirs.

NORMA Group's water intensity for fiscal year 2025 amounts to 119m³ per million EUR (2024: 145m³ per million EUR) of sales revenue and is calculated from the total water consumption in its own operations per unit of sales revenue. Further information on the determination of net revenue can be found in the sections CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME and DISCONTINUED OPERATION. We take Group sales revenue including discontinued operations into account here.

Legend

These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.