Assa Abloy AB

# Sustainability governance

# Sustainability is integrated in everything we do

# Sustainability is integrated in everything we do

ASSA ABLOY's Board of Directors ratifies our Code of Conduct and sustainability policy, and routinely discusses and follows up on our sustainability initiatives and the work in line with our sustainability goals and targets. The Board of Directors are ultimately responsible for adopting our sustainability goals and commitments. Our sustainability risk analysis is reported to the Board which means that our impacts, risks and opportunities are reviewed on an annual basis or more frequently, if required. The Executive Team is responsible for sustainability risk management relating to the Group's strategy, the Code of Conduct, and other sustainability policies. The divisions have the operational responsibility as well as the responsibility to integrate the sustainability principles into their daily operations. [...] Divisional work and progress is overseen by the Executive Team, and is reported to the Board of Directors. Each factory or business unit has the operational responsibility within each division. Each division is also responsible for ensuring that current and new suppliers understand and comply with our requirements. At Group level, performance is monitored via the sustainability reporting process, which includes each company's reporting of material environmental risks and actions to mitigate them. Divisional board meetings address risks, compliance, performance and other sustainability matters. The delegation of responsibility, implementation and follow up is clearly communicated and the accountability of each person and function with a particular responsibility is defined. [...] Our Sustainability Council comprises of representatives from Operations, Research and Development and Human Resources, including the person responsible for sustainability in each division. The council meets monthly, almost always through virtual meetings to cut down on carbon-intensive travel; to discuss various sustainability matters related to innovation and production, to define action plans and set targets. Each participant in the council is responsible for reporting back to their organization and for driving implementation. In addition to the Sustainability Council, there are councils for Innovation, Sourcing, Operations, Human Resources, Health and Safety, and Legal whose members include representatives from the Group and all divisions, which manage sustainability issues related to their business.

# Sustainability governance

ASSA ABLOY's Board of Directors ratifies our Code of Conduct and sustainability policy, and routinely discusses and follows up on our sustainability initiatives and the work in line with our sustainability goals and targets. The Board of Directors are ultimately responsible for adopting our sustainability goals and commitments. Our sustainability risk analysis is reported to the Board which means that our impacts, risks and opportunities are reviewed on an annual basis or more frequently, if required. The Executive Team is responsible for sustainability risk management relating to the Group's strategy, the Code of Conduct, and other sustainability policies. The divisions have the operational responsibility as well as the responsibility to integrate the sustainability principles into their daily operations. [...] ASSA ABLOY has a Code of Conduct Committee, which is chaired by the Executive Vice President & CHRO. Its members include the Vice President & Head of Sustainability, Group Head of Compliance, Group Head of Internal Audit & Control, and two employee representatives. The employee representatives are also members of the ASSA ABLOY Board of Directors. Among other things, the members of the committee receive information from whistle-blowers and the committee ensures that such matters are dealt with appropriately and followed through. The committee meets three times per year.

# Sustainable operations

# Sustainability is integrated in everything we do

ASSA ABLOY's Board of Directors ratifies our Code of Conduct and sustainability policy, and routinely discusses and follows up on our sustainability initiatives and the work in line with our sustainability goals and targets. The Board of Directors are ultimately responsible for adopting our sustainability goals and commitments. Our sustainability risk analysis is reported to the Board which means that our impacts, risks and opportunities are reviewed on an annual basis or more frequently, if required. [...] The Executive Team is responsible for sustainability risk management relating to the Group's strategy, the Code of Conduct, and other sustainability policies. The divisions have the operational responsibility as well as the responsibility to integrate the sustainability principles into their daily operations. [...] ASSA ABLOY has a Code of Conduct Committee, which is chaired by the Executive Vice President & CHRO. Its members include the Vice President & Head of Sustainability, Group Head of Compliance, Group Head of Internal Audit & Control, and two employee representatives. The employee representatives are also members of the ASSA ABLOY Board of Directors. Among other things, the members of the committee receive information from whistle-blowers and the committee ensures that such matters are dealt with appropriately and followed through. The committee meets three times per year.

# Sustainability is integrated in everything we do

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**The Code of Conduct Committee** ASSA ABLOY has a Code of Conduct Committee, which is chaired by the Executive Vice President & CHRO. Its members include the Director of Sustainability, Group Head of Compliance, Group Head of Internal Audit & Control, and two employee representatives. The employee representatives are also members of the ASSA ABLOY Board of Directors. Among other things, the members of the committee receive information from whistle-blowers and the committee ensures that such matters are dealt with appropriately and followed through. The committee meets three times per year. [...] **Responsibilities** Each division is responsible for managing our sustainability agenda, identifying and addressing risks and opportunities in the context of their business, as well as governing the Code of Conduct and related policies. Divisional work and progress is overseen by the Executive Team, and each factory or business unit has the operational responsibility within each division. Each division is also responsible for ensuring that current and new suppliers understand and comply with our requirements. At Group level, performance is monitored via the sustainability reporting process, which includes each company's reporting of material environmental risks and actions to mitigate them. Divisional board meetings address risks, compliance, performance and other sustainability matters. The delegation of responsibility, implementation and follow up is clearly communicated and the accountability of each person and function with a particular responsibility is defined.

ASSA ABLOY has a Code of Conduct Committee, which is chaired by the Executive Vice President & CHRO. Its members include the Director & Head of Sustainability, Group Head of Compliance, Group Head of Internal Audit & Control, and two employee representatives. The employee representatives are also members of the ASSA ABLOY Board of Directors. Among other things, the members of the committee receive information from whistle-blowers and the committee ensures that such matters are dealt with appropriately and followed through. The committee meets three times per year. [...] ASSA ABLOY's Board of Directors ratifies our Code of Conduct and sustainability policy, and routinely discusses and follows up on our sustainability initiatives and the work in line with our sustainability goals and targets. The Board of Directors are ultimately responsible for adopting our sustainability goals and commitments. Our sustainability risk analysis is reported to the Board which means that our impacts, risks and opportunities are reviewed on an annual basis or more frequently, if required. [...] Divisional work and progress is overseen by the Executive Team, and is reported to the Board of Directors. Each factory or business unit has the operational responsibility within each division. Each division is also responsible for ensuring that current and new suppliers understand and comply with our requirements. At Group level, performance is monitored via the sustainability reporting process, which includes each company's reporting of material environmental risks and actions to mitigate them. Divisional board meetings address risks, compliance, performance and other sustainability matters. The delegation of responsibility, implementation and follow up is clearly communicated and the accountability of each person and function with a particular responsibility is defined.

Our divisions have operational responsibility for their sustainability work. The work is overseen by the Executive Team and ultimately by the Board of Directors.

# Sustainability is integrated in everything we do

# Sustainability is integrated in everything we do

# Sustainability governance

# Sustainability is integrated in everything we do

# Sustainable operations

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]ASSA ABLOY's representatives for the World Green Building Council are also members of the Group Global Sustainability Council. They frequently report updates to the Sustainability Council. ASSA ABLOY engages with World Green Building Council as it has a clear agenda on development of green buildings which is consistent with ASSA ABLOY's overall strategy on climate change and the market demands in the countries where we operate. If it would come to ASSA ABLOY's attention that the Green Building Councils are not living up to the expectations, ASSA ABLOY would re-consider its membership.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]No, and we do not plan to have one in the next two years

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]ASSA ABLOY's representatives for the World Green Building Council are also members of the Group Global Sustainability Council. They frequently report updates to the Sustainability Council. ASSA ABLOY engages with World Green Building Council as it has a clear agenda on development of green buildings which is consistent with ASSA ABLOY's overall strategy on climate change and the market demands in the countries where we operate. If it would come to ASSA ABLOY's attention that the Green Building Councils are not living up to the expectations, ASSA ABLOY would re-consider its membership.