SUSTAINABILITY STRATEGY

Kongsberg Automotive (KA) is striving for higher standards of performance across environmental, social, and governance topics to ensure that our value creation is aligned with the principle of sustainable development for people and planet.

Our Sustainability strategy is based on our materiality matrix (outlined in our Annual Report 2024) which has enabled KA to identify the sustainability topics which are of highest relevance for KA in terms of impact, risk and opportunities. For the defined focus areas, KA has developed goals and roadmaps which are outlined in our ESG (Environmental, Social and Governance) targets.

KA's ESG targets:

Climate

Reduce production-related CO₂e emissions (Scope 1 and 2)* by:

• 12% by 2025
• 85% by 2030
• 100% (Net Zero) by 2035

Enhance the use of renewable electricity:

• Switch one additional production plant to 100% renewable electricity by 2025 and achieve usage of 100% renewable electricity at all locations by 2030

Reduce energy intensity index by 2% in 2025 (compared to 2024)

(*base year 2023)

Safety

• Achieve an Incident Rate (IR) below 1.0 in 2025
• Strive for zero accidents mid-term

Sustainable supply chain

• More than 85% of direct materials spend should be covered with valid supplier sustainability risk assessments in 2025
• Conduct 10 on-site supplier sustainability audits during 2025

Business Ethics

• Update and enhance Human Rights Policy in 2025
• Implement equal pay analysis in 2025 in preparation for closing
  potential gender pay gaps mid-term

In addition, KA started to develop Scope 3 upstream emission reduction actions towards our long-term goal of carbon neutral products by 2039 and started to develop circularity approaches.