Fiskars Oyj : FiskarsGroup Sustainability Report 2023

Sustainability Report 2023

FISKARS GROUP

OUR SUSTAINABILITY APPROACH

SUSTAINABILITY COMMITMENTS

GRI SUPPLEMENT

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Contents

Message from the CEO	3	Making the everyday extraordinary	44
		Leading according to Fiskars Group's values	45
Highlights from 2023	5	Safe and inclusive working environment	47
Human rights	57
		Creating positive societal impact	60
Fiskars Group	6	Employee data	65
Learning and development	67
		People performance and development process	70
Introducing Fiskars Group	7	Pay and reward	72
Our purpose and values	10
Our Growth Strategy	11	GRI Supplement	73
Our sustainability approach	12	Sustainability governance	74
		Stakeholder engagement	75
Defining our approach and material topics	13	UN Sustainable Development Goals	78
Our ESG strategy	16	Economic performance	79
Our ESG KPIs and progress	17	Sustainable business practices	81
Our impacts	19	Data security and privacy	82
		External initiatives and memberships	84
Sustainability commitments	22	Responsible supplier management	85
GRI Content Index	88
		Independent practitioner's limited assurance report	97
Pioneering design against throwaway culture	23
Towards circularity	24
Our climate approach	30
Biodiversity	37
Responsible water use	40
Product quality and compliance	41

FISKARS GROUP

OUR SUSTAINABILITY APPROACH

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Message from the CEO

In 2023, we continued our transformation and took on bold strategic actions, such as the acquisition of the Danish luxury lifestyle brand Georg Jensen, despite a challenging operating environment.

We also simplified the way we operate to ensure our agility and enhance focus on what matters to the consumers and employees - our brands. Sustainability is one of the key enablers of our strategy, and it is also transforming Fiskars Group for the long-term.

The year 2023 was another year of progress in sustainability and ESG targets. Three topics stand out: good progress in our circular economy and climate emission reduction targets as well as My Fiskars, our initiative to further engage the driving force of the company, our people.

With regards to circular economy, our target is that the majority of our sales comes from circular products and services by 2030. At the end of 2023, we were at 13%, or when incorporating Georg Jensen's figures for the fourth quarter of 2023, at 14%. The

FISKARS GROUP

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latter figure almost tripled from the previous year's 5%. While we still have a lot of work to do, we are constantly developing new solutions. To reinforce the commitment to achieving this ambition, advancing circular products and services was included as a target in the share-based incentive plan for our key employees in 2023.

Secondly, we are committed to reducing our own climate emissions and along our value chain. While we are planning our approach for setting a net-zero target, we have already taken numerous concrete steps in increasing operational efficiency, investing in renewable energy, and supporting our suppliers in setting science-based targets. In 2023, Scope 1 and 2 greenhouse gas emissions decreased by 25% compared to 2022 and by 56% compared to the base year 2017. During the year, we also tied our emission reductions targets to our long-term financing strategy by launching a Sustainability-linked bond framework and issuing our debut bond of EUR 200 million under this framework.

Thirdly, a culture of ownership and entrepreneurship is central to our way of operating. To strengthen these, we launched our first employee share savings plan MyFiskars in 2023. In this plan, our employees are offered the chance to voluntarily save a portion of their monthly salary and invest it in Fiskars shares. This plan has been a success especially among office employees, showing just how committed our people are to the direction and future of the company. During 2023, we also set our fifth ESG target measuring our employees' inclusion experience to build an inclusive,

fair, and open working environment. The target is to be within the global top 10% of high-performing companies in terms of inclusion experience.

These are just some of the highlights, and I invite you to read more in the following pages in our Sustainability Report, which covers our sustainability commitments, targets and many milestones. Our policies, such as our Code of Conduct and our Supplier Code of Conduct, cover important topics such as environmental protection, human rights, and anti-corruption commitments.

I would like to thank all our employees, customers and partners for 2023. I look forward to continuing our good collaboration in 2024, which marks the 375th year of Fiskars. Pioneering design, high quality and craftsmanship are values that have guided us throughout the centuries, and they continue to be at the heart of everything we do.

I am confident that the actions taken throughout 2023 have strengthened our foundation and will support our performance going forward.

Nathalie Ahlström

President and CEO

Fiskars Group

FISKARS GROUP

OUR SUSTAINABILITY APPROACH

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Highlights from 2023

13% circular sales

Approximately 13% of our net sales were generated from circular products and services. New products and solutions were added to the portfolio during the year. Read more

Scope 1 & 2 -56%

Scope 1 and 2 emissions decreased by 25% compared to 2022, and by 56% compared to the base year 2017. Read more

Suppliers with SBTs

We have successfully grown the number of our suppliers that have set science-based targets (SBTs): 48% of our suppliers by spend now have set targets. Read more

LTAF -4%

Risk assessment workshops and LTA Review Boards have driven down the Lost Time Accident Frequency (LTAF) rate over the year. Read more

Enhancing DEI

We continued building awareness and understanding on diversity, equity, and inclusion (DEI) topics.

We introduced i.a. a new e-learning course called Navigating Unconscious Bias. Read more

Acquisition of Georg Jensen

We acquired the Danish brand Georg Jensen. The brand utilizes recycled gold, and a majority of the silver used in its jewelry production is recycled.

Read more

Sustainability-linked bond

We launched EUR 200 million in sustainability-linked notes to align the company's long-term financing strategy with sustainability targets now have

set targets. Read more

MyFiskars

We launched our first employee share savings plan, where the Group grants participating employees one free matching share for every two savings shares acquired. Read more

Iittala CO2 -19%

Compared to the previous year, we achieved an approximately 19% reduction in carbon dioxide emissions at our Iittala manufacturing unit, partly as a result of the first implementation phase of electric furnaces. Read more

+41% net impact

The Upright Project has built a quantification model to measure the net impact of companies. Our net impact ratio is +41%, taking into account the entire value chain. Read more

Societal impact

We took part in numerous small and large community engagement actions around the world. In total, we invested over 625 000 EUR in local communities. Read more

Foundation collaboration

The Waterford & Luther Vandross partnership emphasized actively encouraging and leading cultural conversations around diversity and inclusivity.

Read more

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OUR SUSTAINABILITY APPROACH

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Fiskars Group

Pioneering design to make the everyday extraordinary

FISKARS GROUP

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Introducing Fiskars Group

Fiskars Group is the global home of design-driven brands for indoor and outdoor living.

We are driven by our common purpose: Pioneering design to make the everyday extraordinary. Since 1649, we have designed products of timeless, purposeful, and functional beauty, while driving innovation and sustainable growth.

 Fiskars Group Campus  Offices  Manufacturing units  Distribution centers

On the next pages we present some examples of how our Business Areas drove our sustainability commitments forward in 2023, and what areas they will focus on in the near future.

Global presence

• Founded in 1649 in Fiskars Village
• Approximately 7,000 employees
• Brands are present in more than 100 countries in Asia-Pacific, Europe and the Americas
• Close to 450 stores
• Net sales of EUR 1,129.8 million in 2023
• Listed on Nasdaq Helsinki

More about Fiskars Group's story on fiskarsgroup.com

Figures include Georg Jensen

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Our organization

The Fiskars Group organization consists of two Business Areas and several global functions. Our Business Areas are Vita and Fiskars. During 2023, Business Areas Terra and Crea were combined as Business Area Fiskars. Each Business Area

is responsible for driving business results and integrating our sustainability commitments into their business planning. The Business Areas have a clear focus and accountability for the global offering, enabling us to leverage the full potential of our strong brands and make the everyday extraordinary for people using our products and services.

Business Area Vita offers premium and luxury products for the tableware, drinkware, jewelry and interior categories. In 2023, Fiskars Group acquired the Danish brand Georg Jensen. Through the acquisition, jewelry has now been added to the product portfolio of Business Area Vita. Vita consists of brands such as Iittala, Georg Jensen, Royal Copenhagen, Moomin Arabia, Waterford, and Wedgwood. BA Fiskars serves the gardening, watering, outdoor, cooking, creating, and scissors categories. The brands include Fiskars and Gerber.

Below are some examples of how our Business Areas have focused their investments, developments, and launches to drive our sustainability commitments

throughout 2023 and what they will focus on going forward.

Business Area Vita aims to further develop and increase the use of recycled materials in its products, to optimize and renew packaging solutions, and to have all possible textile products Global Organic Textile Standard (GOTS) certified. In addition, Vita continues to explore and develop service-based solutions, namely the Vintage service in-store solution to resell and find new homes for used products. Vintage online has been tested as a proposal in collaboration with the Tradera online auction place to support the growing interest of second hand Vita products.

Business Areas and key categories

BUSINESS	VITA						FISKARS
AREAS & KEY
CATEGORIES
		Tableware	Drinkware	Interior	Jewelry		Gardening Outdoor Cooking Scissors & creating
KEY BRANDS

BA SHARE OF	~ 50%	~ 50%
NET SALES

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During the year, Vita's textile product range grew with the launch of the Moomin Arabia home textiles. To ensure organic content and ethical production, Fiskars Group applied for and was granted GOTS certification in June 2023.

Through the acquisition of Georg Jensen in 2023, Vita's product portfolio expanded to include jewelry. Since the beginning of 2023, Georg Jensen has been using 100% recycled gold in all new products. Georg Jensen is also expanding its use of recycled silver. At the end of 2023, the rate of recycled silver in jewelry production was approximately 70%. Georg Jensen is a certified member of the Responsible Jewellery Council (RJC), which presents strict standards for companies in the jewelry industry.

On the production side, we have continued our investments in energy efficiency and emission reduction. During 2023, we were able to decrease the annual emissions at our Iittala factory by 19%, compared to the previous year. At our Rogaska factory in Slovenia, a multi-million investment decision was made to build a new hybrid electric furnace during 2024, to cut the factory's emissions and replace up to 60% of the gas utilised with electricity.

Business Area Fiskars continues to explore the application of recycled raw materials in its products. Minimizing waste, increasing the share of circular products, and providing services to help elongate the lifecycle of its products are the focus of the Business Area.

During 2023, several new products containing recycled plastics were launched. One example is a new line of garden planters made with 65% recycled plastics. A new line with outdoor knives and sharpeners containing FSC certified material was also launched during the year.

The Fiskars brand has decided that by 2025, only PFAS-free cookware products will be offered. This is a natural next step, as the Fiskars cookware offering already includes a significant number of ceramic and non-coated cooking products. The Fiskars Pan Care service has been elevated from a pilot project to being fully functional to endorse our commitment to prolonging the lifetime of our products.

In addition, the Fiskars brand launched a new website for packaging recycling information, helping consumers and customers recycle product packages. In addition, all new scissor launches contained cardboard packaging, and the brand actively works to remove plastics from all scissor packaging.

Our brands enhance diversity, equity and inclusion by using diverse and inclusive visuals, as well as sharing stories through collaborations that highlight multiple perspectives and experiences. For example, the Waterford brand is committed to actively encouraging and leading cultural conversations around diversity and inclusivity.

FISKARS GROUP

OUR SUSTAINABILITY APPROACH

SUSTAINABILITY COMMITMENTS

GRI SUPPLEMENT

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Our purpose and values

We are driven by our common purpose: Pioneering design to make the everyday extraordinary.

We embrace the power of design in everything we do, from ideation to manufacturing and business development. Through the combination of craftsmanship, brand passion, and digital transformation, we rethink existing solutions while always being loyal to our roots.

Since 1649, we have made life better for each other and the world around us, driving innovation and sustainable growth to challenge throwaway culture through products of timeless, purposeful, and functional beauty.

Our shared values unite our global team. We keep them relevant and actionable in our everyday.

Creating	have always dared to take the
change	In an ever-changing world, we
lead. We shape our own future.

Celebrating	do, as we know they have a big impact
the everyday	We are present in the little things we
on us and our future.

Growing with	perspective of others, we can become
compassion	By looking at the world from the
the best at what we do.