Pricer: Pricer : Sustainability Report

14 PRICER - ANNUAL REPORT 2023 SUSTAINABILITY REPORT Sustainability for Pricer Sustainability governance Sustainability for Pricer concerns financial, social and environmental value creation throughout the entire value chain. Pricer's sustainability management is based on ongoing stakeholder dialogue, business intelligence and the company's strategies and priorities. Based on these aspects, Pricer determines the most essential areas given the company's operations and their impact on the environment and society. Pricer then decides on goals and activities and follows up on them within the framework of the overall strategic objectives, for which the Board and CEO are ultimately responsible. Pricer develops its work to set the company's goals and activities on an ongoing basis in order to accommodate the current needs of its various stakeholders. Continual stakeholder dialogue A number of stakeholders affect Pricer's sustainability management through their demands and expectations on the company. Satisfying existing requirements and being prepared for anticipated requirements are fundamental components in the company's strategy for sustainable business development. Pricer's stakeholders are groups associated with the company that directly or indirectly affect or are affected by our operations. Pricer strives for an open dialogue with our stakeholders in order to address the issues most important to them. The company has identified five key stakeholder groups: customers, suppliers, employees, shareholders and public authorities, including their respective focus areas illustrated below. Pricer's stakeholders and their core issues Pricer CUSTOMERS SUPPLIERS EMPLOYEES SHAREHOLDERS SOCIETY Meetings with suppliers Share value creation Regulatory contacts Customer satisfaction Development opportunities Product innovation Product development Work environment Financial stability Regulatory requirements Procurements Procurements Information to employees Ownership structure and legislation Delivery capacity Delivery capacity Quality Pricer's focus areas Environmental Employees Supply chain Regulatory impact compliance Sustainability for Pricer concerns financial, social and environmental value creation throughout the entire value chain. PRICER - ANNUAL REPORT 2023 SUSTAINABILITY REPORT 15 Value creation for the company's stakeholders Social The inputs for social value creation are found in the expertise provided by employees, management and the Board, and continuous development is vital for long-term value creation. The compa- ny's close relationships with select suppliers are also critical. The results of good social value creation are visible in the way Pricer's services and solutions help customers operate their businesses efficiently. The improvements are visible among Pricer's customers across various retail trade verticals, such as the grocery retail, DIY, consumer electronics and pharmacy sectors. The enhancements offered to these retail companies in turn have positive effects on the public and society. Environmental aspects On an environmental front, Pricer actively works with new technology to be able to reduce the environmental impact from its future products, for instance through the partnership with Epishine. Pricer's value chain has the following main components: PRODUCT DEVELOPMENT Pricer develops and sells goods and services for electronic shelf label solutions. Pricer has no in-house production but undertakes environmental responsibility through established processes and routines in the product development process. For example, worn out electronics are recycled. PURCHASING Pricer makes purchases at substantial amounts every financial year. Our suppliers are found primarily in Asia. All suppliers undergo an approval process in which product safety and corporate responsibility are evaluated. The suppliers sign a Supplier Code of Conduct that addresses their corporate responsibility and assures they will comply with Pricer's sustainability policy. Continuously monitored by Pricer. DELIVERY Pricer ships goods from its suppliers in Asia and Europe to a logistics hub close to the customer by sea or air, depending on which is most cost efficient and environmentally friendly. The point of departure is for the customer to receive their goods based on their operational needs. CUSTOMERS Pricer's goal is to be a world-leader in solutions for digital store communication and product positioning. Goods and services are to be delivered in a responsible manner with the highest quality. Goal: Develop safe and high-quality products from environmentally friendly materials. Goal: Collaboration with serious suppliers that apply good business ethics and take responsibility for human rights, the environment and working conditions. Goal: Optimize logistics flows for reduced climate impact and lower costs. Goal: Achieve the highest possible customer satisfaction by meeting customer expecta- tions; this should be reflected in renewed confidence through new orders. For a description of Pricer's business model, see pages 8-9. For a description of sustainability risks, see page 33. For a description of the Pricer Group, see Note 24, page 59. 16 PRICER - ANNUAL REPORT 2023 SUSTAINABILITY REPORT Environmental impact At Pricer we are convinced that sustainable business is critical for continued profitability. It is important for the company to keep its environmental footprint as small as possible - an ambition that should permeate all of the company's activities on a day-to-day basis. Pricer strives to minimize waste generation. One of the cornerstones of Pricer's environmental policy is to proactively avoid greenhouse gas emissions and make continuous improvements in the environmental area. Pricer's products should be developed with the objective of minimizing their environmental impact throughout their entire service life as well as when they are recovered and destroyed. Pricer should choose materials, technology and distribution systems that meet our goals for low environmental impact. One of the criteria for selecting our resellers is that they need to have similar ambitions in terms of the environment and that they, together with us, promote compliance with the environmental policy. Pricer shares advice and know-how with its customers and partners so that they can use, transport, store and scrap the company's products in an environmentally positive manner. Pricer's products comply with the EU's RoHS Directive (Restric- tion of the use of certain hazardous substances in electrical and electronic equipment), which is aimed at reducing risks to human health and the environment by replacing and limiting hazardous chemical substances in electric and electronic equipment. The directive also seeks to achieve profitable and sustainable material recovery of equipment. Pricer's solution based on electronic shelf labels are market leading in energy efficiency with the longest battery lifetime, which means it is the least environmentally burdensome turnkey solution available on the market. Production in Europe As part of the work to reduce its climate footprint, Pricer is supplementing its current production sites with a supplier in Europe. This creates good conditions for reducing many and long transports and significantly reducing the need to use air transport to one of the company's main markets. Benchmarking To gain better insight into the overall sustainability work in relation to similar companies, Pricer has also been evaluated by an external party, EcoVadis. Pricer was awarded the bronze level as a result of this evaluation, which means that the company belongs to the top half of the companies that were evaluated. Such an evaluation also gives Pricer the opportunity to identify areas in which the company is strong, but primarily also where improvements can be made. Life cycle analysis As a further step in understanding the actual impact of Pricer's products on the environment, the company conducted a life cycle analysis. This provides a quantified result of the actual carbon dioxide equivalent an electronic shelf label generates throughout its lifetime. Based on this analysis, Pricer can identify the size of the impact of the products on the environment as well as the components that have the largest impact. Pricer works continuously to streamline its products. For example, the circuit board in a SmartTAG Power label enables a climate impact that is 20 percent lower than the impact of the previous label model thanks to a more efficient design. We made the SmartTAG Power circuit board smaller and thinner. See the results in the pie chart below. Pricer is now analyzing the new conditions this creates for the company to actively work to streamline the company's products and reduce the environmental footprint. Carbon dioxide equivalents (CO 2 e) 2% 1% 6% 11% 6% Transport 28% Energy consumption from production Display Circuit board installation Plastic components 46% Batteries Recycling/destruction In order to meet increased costs for financed capital, Pricer has made an active choice to reduce the share of sea freight in 2023. GOAL 80% OUTCOME 29% The goal is for 80% of the company's Of the company's total number of pro- intercontinental shipping to go by sea duced labels, 29% (61%) were shipped by 2023. by sea from Pricer's suppliers in Asia. PRICER - ANNUAL REPORT 2023 SUSTAINABILITY REPORT 17 Employees Employees and their development Pricer's successes are largely due to its employees. This means that their commitment and development is an important focus. They serve as the basis for activities such as recruiting, onboard- ing, dialogue between employees and managers, and training. During 2023, Pricer implemented several initiatives to strengthen its corporate culture. At the beginning of the year, the company adopted a set of values, and the implementation of these values has been ongoing throughout the year. An important part has been that all teams have