Fiven Annual Report 2022

Note 31 Financial impact of climate related risk Risk Fiven has implemented an ESG roadmap summarizing the initiatives taken and to be taken by the Group on environment, social and governance within 3 years, the local anchorage and H&S axis coming from our CSR strategy are covered under the social axis. The ESG roadmap progress are presented to the Board of Directors every quarter by the Chief Sustainability officer (CSO). All projects are closely followed by the CSO. To measure and control our environmental impact, twice a year, every entity complete the group environmental reporting tackling our emissions to air, to water and our waste The largest impact from climate change to Fiven Group is through requirements from authorities. These requirements are related to emission in the production and from the consumption of natural resources. The Group by using, in its production processes water and carbon source raw materials, is exposed to the transition risk where economies are becoming less carbon intensive. This risk is emphasized by stricter authorities’ requirements in the countries we operate. Therefore, the Group set up an environmental roadmap in 2020 with the objectives to reduce emissions to air, water usage and non- recovered waste. Different milestones were fixed for 2025 and 2030 and the ultimate target for the Group is to become net zero by 2050. Group investments to support the environmental roadmap represent 47% of its total investment. The production of silicon carbide production in Norway is subject to limitation on emissions of certain substances defined by the Norwegian Environmental Agency (NEA). Non-compliance can result in administrative fines and required stoppage in production in Norway. To mitigate the risk of non-compliance, Fiven has been developing its own gas cleaning systems as there is no technology readily available in the market. By accelerating next stage of the gas cleaning system implementation, and with another two furnace groups covered, Fiven Norge will have 100% of the furnace capacity covered by mid-year 2023. The risk of non-compliance can also be offset by reducing production in Norway and importing silicon carbide from Fiven facilities in Brazil instead. For the processing activities the requirements from NEA are not foreseen as a risk. In 2021, Fiven entered a Sustainability link Bond financing meaning the Group’s financing was linked to the improvement of environmental indicators over the next years. These indicators are CO2, SO2 emissions (expressed in tons/tons of crude produced), volume of water withdrawals (in absolute value). The objective is to reduce these emissions by respectively 9%, 15 % and 10 % by 2025 which is in line with our environmental 2025 milestone. A redemption premium of a maximum of 0.50 per cent will be due in case of KPI’s target failure at the exit of the sustainability linked bond. Following the above, the maximum exposure of Fiven in the event failing to comply with the objectives is EUR 350 thousands. As of Today, Fiven believes the objectives are achievable within the time frame set. As for other climate related risks, the Group’s production locations are located in geographical areas where the physical climate change related risk could be considered as low. Note 32 Events after the reporting period There are no material events having taken place after the balance sheet date. Kapittelnavn 79 Fiven Annual Report 2022

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