EKORNES QM HOLDING AS

ANNUAL

REPORT

2024

EKORNES

QM HOLDING

COMPANY

Company history and ownership 4 - 5

Strategy section 6 - 7

Message from the CEO

8 - 9

Group management 10 - 11

Board of directors in Ekornes AS 12 - 13

CORPORATE GOVERNANCE

Code of Conduct 14 - 15

Sustainability report 16 - 111

BOARD OF DIRECTORS’ REPORT

Board of directors 114

Board of directors’ report 115 - 124

FINANCIAL STATEMENTS

Consolidated financial statements 126 - 131

Notes to the consolidated financial statements 132 - 160

Financial statements Ekornes QM Holding AS 162 - 165

Notes to the financial statements Ekornes QM Holding AS 166 -171

Statement pursuant to section 5-5 of the securities trading act 172

Independent Auditor’s Report 174 - 177

Independent Sustainability Auditor’s Limited Assurance Report 178 - 181

Content

Ownership chart as at 31 December 2024

Ekornes QM Holding AS was founded 4 January 2018 with the

purpose of acquiring the Ekornes Group. In May 2018, an offer was

made to purchase the shares of all Ekornes shareholders. The share

purchase was completed in August 2018 and Ekornes AS was delisted

from the Oslo Stock Exchange in October 2018.

Norwegian ultimate parent company Ekornes QM Holding AS is a

subsidiary of Qumei Home Furnishings Group. Qumei Group owns

94,12% of the shares in Qumei Runto S.à.r.l and Hillhouse owns the

remaining shares.

Qumei Runto S.à.r.l owns 100% of the shares in Ekornes QM Holding

AS. The Ekornes Group is the only operational part of the Ekornes QM

Holding Group. The consolidated financial statements comprise the

financial statements of the parent company Ekornes QM Holding AS

and its subsidiaries as at 31 December 2024.

Ekornes QM Holding AS had, as at 31 December 2024, 100%

shareholding and voting rights in Ekornes AS who in its turn has a

100% ownership share and voting rights for all other consolidated

companies.

(Ownership chart as at 31 December 2024)

Company history

and ownership

Qumei Home Furnishings Group Co., Ltd. (China)

Zhimei Chuangshe Home Furnishings (Shanghai)

Co., Ltd. (China)

Qumei Runto S.á.r.l.

(Luxembourg) (Parent)

Ekornes Group Entities

100%

94,12%

100%

NOK 1 200m

secured bond

NOK 1 600m

bank loan

100%

Ekornes AS

5,88%

Zhuhai Deyou Nuohui Equity Investment

Partnership (L.P.) (“Hillhouse”)

Ekornes QM Holding AS

Annual report Ekornes QM Holding 2024 | Company history and ownership Company history and ownership | Annual report Ekornes QM Holding 20244 5

Elevate customer appeal

Ekornes has over 90-years history of innovation and

international brand building and Stressless

is among the

world’s most recognized furniture brands. This provides a

unique foundation for Ekornes’ transformation into a

branded furniture company. Strengthening its presence in

key markets, the company is investing in brand building,

increased digital presence and lifting in-store experiences.

Cultivating on each brands’ strengths, Ekornes seeks a

differentiated sales strategy for Stressless

, IMG and

Svane

. Stressless

is undergoing a modernization, with

updated retail studios, increased digital marketing and

tailored promotional campaigns aimed at reinforcing its

premium position. IMG focus is on product portfolio

development and store upgrades to grow sales, operating

as a discovery brand with targeted marketing. Svane

, after

refining its product offering in recent years, continues to

emphasize on premium quality products with solid margins.

By further strengthening dealer cooperation and

leveraging the unique strengths of each brand, Ekornes

seeks to enhance its appeal among consumers.

Maximize operations and supply chain efficiency

Ekornes has a global production and distribution network,

with eight manufacturing facilities in four countries and

product availability in more than 4 000 retailers in 40

countries. To maximize efficiency across operations, the

company is optimizing capacity utilization across brands

and increasingly specializing facilities in its most efficient

processes. In addition, Ekornes seeks to consolidate

warehouses and support functions where possible,

including various degrees of back-office operations and

refining commercial structures.

At the same time, Ekornes is streamlining its product

portfolio, further enabling increased efficiency while

maintaining persistent focus on exquisite product quality

throughout the value chain.

Improve contribution margin

A challenging consumer environment in recent years has

put pressure on profitability as Ekornes has adapted to

lower activity. While significant improvements were made

in 2024, the Group maintains margin improvement a top

priority.

Initiatives include optimizing procurement by improving

direct material sourcing, as well as refining pricing

strategies tailored to different brands and markets.

Product innovation is also key, with redesigned products

supporting higher profitability with improved efficiency

and enhanced product longevity.

Modernize the organization structure, skills, and culture

As the furniture industry evolves, technology, innovation

and agility are becoming increasingly relevant. To remain

competitive, Ekornes is modernizing its organization to

drive customer focus, elevate leadership and performance

across the organization. The company will implement a

leadership, culture and value program to reflect this.

Ekornes is also actively investing in new talent and key

capabilities. This includes streamlining leadership levels

and enhancing competence in operations, product design,

sales and marketing.

These organizational measures are designed to fortify the

business structure for future growth, ensuring that

Ekornes remains agile and resilient in evolving market

conditions.

Strategic priorities

Annual report Ekornes QM Holding 2024 | Strategic priorities Strategic priorities | Annual report Ekornes QM Holding 20246 7

Strategic priorities

Elevate

customer

appeal

Maximize

operations and

supply chain

efficiency

Improve

contribution

margin

Modernize the

organization

structure, skills,

and culture

Founded in 1934, Ekornes is the largest furniture manufacturer

in the Nordics, designing and producing furniture under the

brands Stressless

, Svane

and IMG. With a vision to improve

everyday living, Ekornes delivers stylish, comfortable and

high-quality seating solutions of exquisite quality to consumers

worldwide.

To ensure long-term competitiveness and to strengthen its position as the

customer favourite for Nordic comfort, quality and style, Ekornes focus on

four strategic priorities: 1) elevate customer appeal, 2) maximise

operations and supply chain efficiency, 3) improve contribution margin

and 4) modernize the organization structure, skill and culture.

Through these initiatives, the company is reallocating capital and

resources toward areas with the highest potential for profitable growth.

Global furniture markets remained volatile in 2024,

primarily due to high living costs constraining consumers’

disposable income. Despite this challenging backdrop,

Ekornes managed to improve profitability during the year,

even as revenues declined. This reflects disciplined

execution on our strategy, transforming into a more

customer-focused branded furniture company with

improved efficiency and strong global execution capabilities.

Improving profitability and maintaining resilience

Over the past few years, the furniture industry has

experienced major shifts in market conditions, marked by

fluctuations in demand, supply chain disruptions and economic

uncertainty. These challenges have required regular financial

adaptions and operational improvements which have

ultimately bettered our organization, translating into increased

gross operating earnings (EBITDA) of 9% despite revenues

declining by 9% in 2024. This demonstrates Ekornes’ resilience

and extends the track record of navigating downturns in its

90-year history of industrial growth and international

expansion. With geopolitical instability and high uncertainty

continuing in 2025, we remain adaptive and resilient in the

face of volatility.

Today, we are Norway’s largest furniture manufacturer with

three unique brands and a global footprint with products

available in more than 4 000 outlets in 40 countries.

Stressless

, our premium brand offering superior comfort and

quality contributed 74% of revenues in 2024, exhibiting strong

customer loyalty. IMG, our discovery brand of high-quality

furniture at affordable prices, delivered 19% of revenues.

Remaining revenues came from Svane

, a premium mattress

provider to the Nordic bedding market, renowned for its

IntelliGel

solution. Together, these brands form a strong

base from which to continuously develop Ekornes and

position for long-term sustainable growth.

Delivering on our strategy

In 2024, we launched a new strategy aimed at transforming

Ekornes into a branded furniture company, the Nordic

favourite for comfort, quality and style. This transformation

is guided by four key priorities: 1) Elevate customer appeal,

2) Maximize operations and supply chain efficiency, 3)

Improve contribution margin and 4) Modernize the

organization structure, skills and culture.

We are already showing good progress delivering on these

objectives. We have strengthened our brands through

upgraded floor assortment and in-store presence,

implemented initiatives to building a stronger digital

presence and launched new and improved products.

Internally, we have sharpened focus by reducing the

leadership team from twelve to six members, and appointed

new executives within strategy, marketing, operations and

commercial. Our new leadership team aims to accelerate

decision-making and create a more agile organization.

Our global production footprint, with eight factories

across four countries, has been further optimized to

enhance efficiency. By creating specialized production

facilities and aligning capabilities across our portfolio, we

are utilizing our global manufacturing strengths better. At

the same time, we have undertaken a significant portfolio

optimization. This, combined with pricing adjustments and

optimized procurement involving comprehensive tender

processes, has resulted in gross margin increasing to from

10% in 2023 to 12% in 2024 and lays a solid foundation

for further improvements.

Continuing our transformation

The transformation of Ekornes has only just begun. In 2025,

we will further reallocate capital towards the areas we see

growth opportunities, ensuring that we fully capitalize on

our industrial strengths and unique brand platform.

For Stressless

, this means continuing to modernize the

brand, rolling out updated in-store concepts and

expanding our digital footprint across markets. For IMG,

we are enhancing the in-store shopping experience,

making it easier for consumers to discover and engage

with the brand. Across all brands, we will continue to

launch new products, ensuring our offerings remain

relevant, innovative and tailored to market demand.

Operational excellence remains a key priority. In 2025,

we will further optimize our warehouse and production

footprint, consolidate operational functions and reduce

complexity across our supply chain. A more integrated

sales and operations planning process will allow us to

better balance supply and demand, ensuring a more

effective and resilient supply chain management.

Securing stronger profitability that can be sustained over

time remains at the core of our efforts. We will continue to

focus on realizing procurement savings, while implementing

a systematic approach to pricing, marketing and promotions

across brands and products. This means leveraging data

and analytics to optimize the strategy for each consumer

segment and market.

At the same time, we continue to modernize the organization

structure and develop skills and culture. A complete

organizational review is ongoing, with the launch of a new

global matrix organization planned by the second quarter

of 2025. This new structure will increase agility, strengthen

execution and ensure that we have the right talent in place

to drive our ambitious growth plans forward.

Increasing long-term competitiveness

None of our progress would be possible without the

dedication of our employees, who have shown relentless

effort and commitment amidst challenging market

conditions. I also want to thank our partners and retailers

for their continued support in bringing our brands to

customers worldwide.

As we move forward, the strategic transformation of

Ekornes will continue gaining momentum. With a clear

strategy, disciplined execution and a committed team, we

are building a stronger, more competitive company,

increasing efficiency and positioning Ekornes to remain

the customer furniture favourite for Nordic comfort,

quality and style for years to come.

Message from the CEO

Transforming for long-term

sustainable growth

Tine Hammernes Leopold

CEO of Ekornes

Annual report Ekornes QM Holding 2024 | Message form the CEO Message form the CEO | Annual report Ekornes QM Holding 20248 9

TINE HAMMERNES LEOPOLD (1971)

CEO Ekornes Group

Education: Bachelor of Science Business Administration, California State University,

Sacramento, 1993. Orkla and INSEAD executive leadership program.

Experience: More than 27 years executive and board experience in the leading Nordic

branded consumer goods company Orkla. Currently holding position on Bord of

Directors at Motek AS, since 2017.

CEO of Ekornes and member of Ekornes Group Management since September 2023.

FREDRIK ØDEGÅRD NILSEN (1988)

EVP & CFO Ekornes Group

Education: Masters of Economics and Business Administration at the Norwegian

School of Economics (NHH) and Master in Management at the University of Mannheim.

Experience: Various position at ISS Facility Services within Finance, Pricing and

Business Development. CFO at Haut Nordic.

CFO of Ekornes since April 2021 and EVP of Ekornes since September 2023.Member

of Ekornes Group management team since August 2020.

Group management

HENRIK BODEKÆR THOMSEN (1971)

CCO Ekornes Group

Education: HD degree in Marketing Management, Copenhagen Business School 1999.

Carlsberg Group leadership program.

Experience: 30 years international management experience with leading Nordic FMCG

companies Carlsberg Group and Anora Group.

Member of Ekornes Group management team since February 2025.

LASSE RUUD-HANSEN (1980)

SVP Strategy & Organization Ekornes Group

Education: Master of Science in Business Administration (Siviløkonom), Norges Han-

delshøyskole, 2004. Bachelor of Science (Organizational Psychology), University of Oslo,

2005. Strategic Leadership Programme, IMD, 2021.

Experience: Over 20 years of experience from management consulting and branded

consumer goods companies. Experienced executive and board member, previously holding

CEO roles in snacking and personal care companies.

Member of Ekornes Group management since October 2024.

JANNE STRØMMMEN (1972)

CMO, Marketing & Innovation Ekornes Group

Education: MBA Brand Management at the Norwegian School of Economics (NHH) and

Bachelor in Marketing at BI Norwegian Business School/Suffolk University Madrid, Spain.

Experience: Brand Marketing from Stokke, Devold and various advertising agencies.

Before joining Ekornes she held the position as Global Brand Communication Director for

Stokke.

Member of Ekornes Group management team since January 2022

FREDRIK SAMSON (1974)

COO Ekornes Group

Education: MSc Electrical Engineering & Computer Science from Institute of Technology

Linköping University 2004. LEAN/Six Sigma Black Belt. Westinghouse and Ottobock

leadership programs.

Experience: More than 15 years of senior management experience within nuclear,

med-tech and food industry, from Westinghouse Electric, Ottobock and Lantmännen

Unibake.

Member of Ekornes Group management since October 2024.

Annual report Ekornes QM Holding 2024 | Group management Group management | Annual report Ekornes QM Holding 202410 11

Bente Johnsen, 1972, Director (employee elected)

Position: Facilitator at dep. Aure .

Education:

Studies in carpentry and upholstery, craft certificate as upholsterer..

Board memberships: Deputy chairman of ITAF (Ikornnes Treindustriarbeiderforbund/

Wooden Industry Workers’ Union), deputy chairman of Cooperation Committee for

Furniture and Laerdal.

Experience: I have various experience working as a florist, in the food and travel industry,

as a caretaker at an assisted living facility and production worker at upholstery and sewing

departments at Ekornes since 1997.

Atle Berntzen (1967), Director (employee elected)

Position: Team leader and deputy manager, warehouse/goods inwards at Ekornes Beds AS.

Education: Upper secondary school (commercial studies major).

Experience: Sales person and warehouse operative at General Motors AS. Warehouse

operative at Ekornes Beds AS.

Stian Ekornes (1963), Director

Position: Investor.

Education: The Norwegian Merchants Institute (today BI Varehandel).

Experience: 30 years’ experience of the furniture industry. Extensive experience as CEO, board

chair and director within the furniture industry, chain management and property development.

Ruihai Zhao (1965), Chair

Position: Chair and CEO of Qumei Group.

Education: MBA (Cheung Kong Graduate School of Business, China), degrees in global

business management from Tsinghua University, China and University of Minnesota, USA.

Experience: Founder and chair of Qumei Home Furnishings Group, with more than 30

years’ experience of the furniture industry.

Lars I. Røiri (1961), Vice-Chair

Board memberships: Chair in Flokk Holding AS and Protan AS. Director in Glamox AS.

Education:

Master of Economics and Business Administration (BI Norwegian Business School).

Experience: Commercial management positions at Tomra ASA, Mølnlycke AB and Jordan AS,

CEO of Flokk Holding AS, Coloplast AS and HÅG ASA. Membership of the boards of numerous

companies, including Molift AS, Netonnet AB, Enghav AS and Design & Architecture Norway,

and of the Norwegian Advisory Board of the private equity company Ratos

Rui Liu (1995), Director

Position: Vice President in Hillhouse Investment.

Education:

BSc in Quantitative Economics and Mathematics at Tufts University .

Experience: Associate at HSBC Global Banking Division Hong Kong office, with experience

in capital market financing and M&A

Ove Per Skåre (1956), Director (employee elected)

Position: Work in upholstery department of J.E.Ekornes AS.

Education: Diverse courses in Norwegian Confederation of Trade Unions

Experience: Prodcution worker in Velledalen Møbler AS; Foam production in Porolon AS;

Foam, steal and upholstery department in J.E.Ekornes AS; UN Veteran served in Lebanon;

Union representative and health & safety representative in J.E.Ekornes AS; board member

of the Trade Union (ITAF).

The Board of Directors

in Ekornes AS

Annual report Ekornes QM Holding 2024 | The Board of Directors in Ekornes AS The Board of Directors in Ekornes AS | Annual report Ekornes QM Holding 202412 13

Tine Hammernes Leopold (1971), Director

Position: CEO Ekornes Group

Education: Bachelor of Science Business Administration, California State University,

Sacramento, 1993. Orkla and INSEAD executive leadership program.

Experience: More than 27 years executive and board experience in the leading Nordic branded

consumer goods company Orkla. Currently holding position on Bord of Directors at Motek AS,

since 2017.

Annual report Ekornes QM Holding 2024 | Code of conduct Code of conduct | Annual report Ekornes QM Holding 202414 15

In December 2013, Ekornes published an updated version

of its Code of Conduct and anti-corruption policy. Both of

these are presented below.

Anti-corruption policy – UNs Global Compact

Ekornes has endorsed the UN Global Compact since 2009.

Through participation in the UN Global Compact, Ekornes

is committed to operating its business responsibly in line

with the UN Global Compact’s ten principles, which also

cover anti-corruption. Ekornes also encourages its

business associates to comply with these principles.

Ekornes has drawn up a new system with which to assess

its suppliers’ performance against the Global Compact’s

principles. The system went into effect in 2013.

The UN Global Compact is based on openness, both with

respect to the company’s dealings with all stakeholders and

the challenges Ekornes meets at the local and global level.

Since 2012 Ekornes has been a member of the UN Global

Compact’s Nordic network. Participation in the network

enables Ekornes to exchange experiences with other

businesses which have social responsibility high on the

agenda.

Through the UN Global Compact, Ekornes is obligated to

set goals for and work continuously to improve its

practices in this area. Each year Ekornes reports its

performance to the UN in the form of a Communication on

Progress (COP). This may be found on the company’s

website under ir.ekornes.no/environmental-and-social-

responsibilities.

Ekornes will conduct its business activities responsibly, and

will operate in compliance with all relevant laws,

regulations and strict ethical norms. We support and strive

to live up to the UN’s Global Compact. This means that in

all parts of our operations we will maintain high standards

with regard to:

1. Respect for and compliance with the Universal

Declaration of Human Rights.

2. Respect for workers’ rights and needs.

3. Environmental responsibility.

4. Combatting corruption in Norway and abroad.

This document, “Ethical Values and Anti-Corruption Policy”,

as well as “Objectives and Values”, have been distributed to

all employees. These regulations have also been distributed

to external relations and have been published on the

company’s website www.ekornes.no. Everyone within the

company has a duty to follow up and comply with these

regulations. Managers in all parts of the company have a

special responsibility for their follow-up.

Code of Conduct for the Ekornes Group

1. ‘Objectives and Values’, company regulations,

employment contracts and job descriptions also contain

ethical rules with which the Ekornes Group complies.

The rules contained in this overview should therefore

not be considered exhaustive with respect to the

Group’s ethical standards.

2. A duty of confidentiality contained in company

regulations, employment contracts or job descriptions

does not prevent you from informing a superior should

you become aware of breaches of regulations,

legislation or rules laid down by the authorities. This

also applies to internal guidelines, provisions or issues

that might harm Ekornes’ reputation or other parties’

trust in Ekornes.

3. Ekornes shall comply with the laws, rules and

regulations in the countries in which Ekornes companies

have been established or in which business connections

have been established.

4. In all contact with suppliers of raw materials, machinery,

subsidiary materials and services of any kind, and

contact with customers and other business connections,

we shall aspire to honesty, integrity, openness, as well as

correct and responsible business conduct. The objective

is to arrive at the best offer for Ekornes.

5. Ekornes or employees of Ekornes shall not take part in

“bribery” or its equivalent in order to achieve special

advantages or access to such.

6. Business connections such as those mentioned above

shall not be furnished with more information about

Ekornes than they need to provide a satisfactory offer

with respect to price, level of service, delivery times,

technology and specifications, or what they need to

exercise their business relationship with Ekornes.

7. Suppliers and business connections shall under no

circumstances receive information about other

suppliers and business connections via Ekornes.

8. Employees of Ekornes shall participate in trips, dinners

and events arranged by suppliers and business

connections only when there is a professional reason

for the event/trip, or it provides business-related

opportunities. In cases of such participation the travel,

entertainment and accommodation of employees of

Ekornes shall always be paid by Ekornes.

9. Employees of Ekornes are not permitted to receive

benefits or gifts (in the form of products, services or

trips, etc.) from business connections other than small

promotional items of limited value. The same applies to

private purchases of goods at discounts from suppliers

to Ekornes without the approval of a superior.

Individuals must also avoid becoming in any way

beholden to customers or suppliers.

10. Suppliers and business connections shall be made

aware of the contents of this document and also be

made aware that any attempt to contravene these

ethical rules could result in exclusion.

Accounting and internal control requirements

Ekornes requires transparency in all operations. All

Ekornes entities shall therefore ensure that transactions

are correctly registered and supported by proper

documentation in accordance with local and international

accounting principles. Anti-corruption law requires that

Ekornes has in place effective internal accounting controls

and maintains books and records that accurately reflect

the companies’ transactions. All entities within the Group

must correctly account for income and expenditures and

must ensure that payments are not recorded falsely in

company books. All expenses shall be approved under

standard company procedures, documented and recorded

in accordance with appropriate accounting standards.

Organization and follow-up

This document, “Ethical Values and Anti-Corruption Policy”,

as well as “Objectives and Values”, have been distributed to

all employees. These regulations have also been distributed

to external relations and have been published on the

company’s website IR.ekornes.no. Everyone within the

company has a duty to follow up and comply with these

regulations.

Managers in all parts of the company have a special

responsibility for their dissemination and follow-up. In the

autumn of 2018, a new vision “We improve everyday

living” and a new set of values was adopted. The new values

are Honest, Authentic, Enthusiastic and Adaptable. These

were communicated to all employees through staff

meetings, internal communications channels and eLearning

courses.

Code of conduct

for the Ekornes Group

16 17

Contents

GENERAL DISCLOSURES

Policy overview – table 42-45

ENVIRONMENT

E1 Climate change 48-61

EU Taxonomy 61-73

E4 Biodiversity and ecosystems 74-83

E5 Resource use and circular economy 84-96

SOCIAL

S1 Own workforce 98-106

ADDITIONAL INFORMATION

A1 Data points that derive from other EU legislation 107-111

Sustainability Statement

Annual report Ekornes QM Holding 2024 | Sustainability report18 1918 Annual report Ekornes QM Holding 2024 | Sustainability report

General disclosures

BP 1 + BP 2 General basis for preparation of sustainability statement 19-20

GOV-1 Role of the Administrative, Management and Supervisory Bodies 20-22

GOV-2 Information provided to and sustainability matters addressed by

administrative, management and supervisory bodies

GOV-3 General requirements on integration of sustainability-related

performance in incentive schemes

GOV-4 Statement on Due Diligence 24-25

SBM-1 Strategy, Business models and Value chain 26-28

SBM-2 Interests and views of stakeholders 28-30

SBM-3 Material impacts, risks and opportunities 30-33

IRO-1 Process to identify and assess material impacts, risks and opportunities 33-37

IRO 2 Disclosure requirements in ESRS covered by the undertaking’s

sustainability statement

33-41

ESRS 2 - General Requirements

[BP-1] General basis for

preparation of sustainability

statement and [BP-2]

Disclosures in relation to

specific circumstances

GENERAL BASIS FOR PREPARATION

OF THE SUSTAINABILITY STATEMENT

About This Report

Ekornes’ 2024 Sustainability Report is the first integrated

report aligning with the Corporate Sustainability Reporting

Directive (CSRD) and the European Sustainability

Reporting Standards (ESRS). The report provides an

overview of the company’s sustainability strategy,

governance framework, material impacts, risks, and

opportunities, and how these factors are integrated into

the business model. Ekornes is a member of the UN Global

Compact and this report also represents the Group’s

communication on progress for 2024 to the UN Global

Compact.

General Basis for Preparation of the Sustainability

Statement (BP-1)

Ekornes’ sustainability statement is prepared on a

consolidated basis, covering all operations under the

same scope as the financial statements. It includes both

upstream and downstream value chain elements, ensuring

a full disclosure of sustainability impacts. This is the first

year of reporting under the mandatory disclosure

requirements, and as historical data is unavailable, 2024

is considered the baseline year for future reporting.

Omissions & Exemptions

No exclusions under ESRS 1, section 7.7 (classified and

sensitive information) or 7.8 (intellectual property and

innovation protection) have been applied.

DISCLOSURES IN RELATION TO

SPECIFIC CIRCUMSTANCES

Accounting Estimates and Judgements

The preparation of sustainability disclosures involves

estimates and assumptions, particularly in areas such as

Scope 3 emissions (E1), inflows and outflows calculations

(E5). These estimates rely on available data, industry

benchmarks, and internal methodologies, which may be

refined in subsequent reporting periods as more precise

data becomes available. The level of accuracy is medium

based on internal review. Judgements applied in

sustainability-related accounting policies are disclosed

alongside the relevant data points to ensure transparency.

The basis for preparation and the resulting level of

accuracy is described, as well as ways Ekornes is working

to improve the accuracy for future reporting cycles.

Contents

Sustainability report | Annual report Ekornes QM Holding 2024 Annual report Ekornes QM Holding 2024 | Sustainability report20 21

Sources of Estimation

• Internal systems (Procurement)

• Spend analysis systems (for Scope 3 estimation)

• Supplier-provided documentation, where available

• Public emissions and conversion factors (e.g. DEFRA,

Ecoinvent)

• Industry and NGO benchmarks (e.g. social metrics)

Ekornes plans to improve accuracy in the next years

reporting cycles.

Forward-Looking Statements

The sustainability statements contain forward-looking

statements based on assumptions about future developments

and potential actions by the company. These statements

reflect expectations at the time of reporting; however,

actual outcomes may differ due to unforeseen

circumstances, regulatory changes, or shifts in market

conditions. As sustainability-related frameworks and

industry best practices evolve, disclosures will be refined

to reflect the most accurate and relevant information

available.

[GOV-1] Role of the

Administrative, Management

and Supervisory Bodies

COMPOSITION OF ADMINISTRATIVE,

MANAGEMENT AND SUPERVISORY

BOARD

Ekornes’ governance structure includes a management

team, and a supervisory board, each with specific

responsibilities for strategic direction, risk management,

and sustainability oversight.

• The board consists of 1 executive member and 7

non-executive members, ensuring balanced leadership

and independent oversight, including 3 representatives

of the employees.

• Board members have experience relevant to Ekornes’

core business, including furniture manufacturing, supply

chain management, and operations across key markets

such as Europe, North America, and Asia. For more

details please reference the annual report and detailed

descriptions of board member experience on page 12/13.

• The gender composition of the board stands at 37.5%

female, 62.5% male, calculated as an average ratio of

female to male board members.

• Independent board members constitute 25% of the

board, ensuring impartial oversight and decision-making.

ROLES AND RESPONSIBILITIES IN

MANAGING SUSTAINABILITY IMPACTS,

RISKS, AND OPPORTUNITIES

Ekornes has established a structured ESG governance

framework to ensure effective oversight, decision-making,

and execution of sustainability initiatives. The governance

model operates at three levels:

1. The board level provides strategic oversight and

approval of sustainability-related decisions related to

material impacts, risks and opportunities.

2. The group level focuses on strategy execution and

issue resolution.

3. The functional level handles implementation and

operational execution.

The ESG governance structure includes the following

key bodies:

• The board approves and oversees the group’s

sustainability strategy. Ekornes plans to have a

committee that advises the board and ensures that

sustainability is embedded at the highest governance

level. This committee can be either a sustainability or

auditing committee.

• The Group Sustainability Leadership Team is

responsible for orchestrating and executing the

sustainability strategy based on identified IROs,

overseeing progress, and resolving escalations.

• The Sustainability Task Force develops and executes

key documents such as strategy papers, policies, and

process manuals in connection with IROs and broader

sustainability topics. It coordinates sustainability

projects and initiatives across the organization and

escalates critical issues when necessary.

• The functional teams’ representatives execute

sustainability projects and initiatives in alignment with

approved targets. They are responsible for reporting

required data on policies, actions, targets and metrics

to evaluate progress and ensure compliance with

sustainability objectives.

Material topic Indirect data sources Level of accuracy

Spend data, supplier-specic emission factors,

DEFRA and other secondary databases*

* more details in the table Emissions factor sources of emissions

factors applied to Scope 1-3 GHG emissions in E1 chapter

Low to Medium

Based on spend and sector averages; limited primary supplier

data; data model under improvemen

Spend data, material weights, packaging data, and

waste contractor reports, industry standards

Low to Medium

Internal procurement and waste records used; more work

needed on supplier-level material traceability, data model under

improvement

Board

Group Sustainability

Leadership Team

Sustainability Task Force

Functional Teams' Representatives

BOARD LEVEL

GROUP LEVEL

FUNCTIONAL LEVEL

IMPLEMENTA TION

ESCALATION

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202422 23

At the management level, IROs are reviewed and approved

by the Group Sustainability Leadership Team . The full list

of reviewed material IROs can be found on page 31/32.

The Group Sustainability Leadership Team consists of the

following members:

• Chief Executive Officer (CEO)

• Chief Financial Officer (CFO)

• Chief Operating Officer (COO)

• Senior Vice President, Strategy & Organisation

• Chief Marketing Officer (CMO)

• Vice President, ICT & Digitalisation

• Chief Commercial Officer (CCO)

• Head of Product Development

• Head of Strategy & Sustainability

• ESG Manager

The leadership team within the Group Sustainability

Leadership Team, led by the CFO and SVP Strategy &

Organization, has been actively engaged in shaping the

CSRD reporting process. Their participation spans all

stages of assessment, from IRO identification to final

approval.

As of 2024 Ekornes does not have specific controls or

procedures to manage material IROs. This will be

developed further during 2025 and the Group

Sustainability Leadership Team will play a central role in

both development and follow up of procedures and

internal controls.

Clear reporting lines exist between the board, management,

sustainability leadership, sustainability task force and

functional teams involved in sustainability. Sustainability

topics are reviewed at bi-annual board meetings oversight

(or more often if required).

The agenda of the bi-annual board meetings:

• Q2 - Board has been informed of the annual report

and sustainability statement.

• Q4 – Board has reviewed DMA assessment and verified

of material disclosure. The Group Sustainability

Leadership Team has conducted ambition setting

workshop in the sustainable development of the

organization.

The board and senior management set sustainability-

related targets and track progress through key

performance indicators related to all material IROs.

This process is still new at Ekornes and will be fully

implemented in 2025.

In 2025, the board will continue to oversee the strategic

development of sustainability at Ekornes. As part of its

governance role, the board will review and sign the

sustainability statement and play a more active role in

the approval of the company’s sustainability strategy and

connected targets. This structured involvement will

strengthen accountability, ensuring that sustainability

considerations remain integrated into overall business

strategy and decision-making at the highest level.

EXPERTISE AND SKILLS IN

SUSTAINABILITY MATTERS

Ekornes ensures that its governance bodies have the

necessary expertise and resources to effectively oversee

sustainability matters. Ekornes continuously evaluates the

skills and competencies of its leadership to ensure its

governance structures remain effective, resilient, and

aligned with its long-term sustainability objectives.

• Board members and executive leaders receive regular

updates on the development of sustainability within the

organization, as well as changes in the regulatory

environment and their application to Ekornes.

• The company collaborates with external sustainability

advisors and industry networks to enhance

management and board-level expertise in material IROs

and broader sustainability topics such as sustainability

strategy, carbon footprint reduction, biodiversity,

circular economy principles, and supply chain

sustainability.

• To strengthen access to sustainability expertise at the

board and executive management levels, dedicated

sessions with internal subject matter experts have been

scheduled as part of governance meetings in 2024.

These sessions provide governance bodies with the

knowledge required to oversee Ekornes’ material

sustainability topics, impacts, risks, and opportunities.

[GOV-2] Information provided

to and sustainability matters

addressed by administrative,

management and supervisory

bodies

INFORMATION OF IMPACTS, RISKS,

AND OPPORTUNITIES

Ekornes identifies material impacts, risks, and

opportunities (IROs) as part of the annual Due Diligence

and Materiality Assessment (DMA) process. The IROs that

are material for reporting in 2024 are presented on page

31/32.

The Board of Directors holds the responsibility for

approving the IROs, overseeing due diligence

implementation, and reviewing the results of sustainability

actions. The board receives biannual updates and formally

approved the list of IROs in December 2024.

These updates include:

• Review of the methodologies used to assess IROs

• Results and effectiveness of policies, targets, actions

and metrics used to address IROs

• Evaluation of planned actions and forward-looking

strategies

CONSIDERATION OF IMPACTS, RISKS,

AND OPPORTUNITIES IN DECISION

MAKING

Currently, sustainability-related risks are not yet

integrated into Ekornes’ general risk framework. However,

the organization is evaluating its implementation in the

coming years to ensure a structured approach to managing

sustainability risks, impacts and opportunities.

Key risks identified through the IRO process have been

reviewed, and actions to mitigate them are being

developed. These mitigation measures will be implemented

and reported in upcoming reporting cycles to ensure

transparency and accountability in risk management.

[GOV-3] General requirements

on integration of sustainability-

related performance in incentive

schemes

As of today, sustainability-related performance is not yet

integrated into the incentive schemes for members of

Ekornes’ administrative, management, and supervisory

bodies.

However, the organization is assessing potential ways to

incorporate sustainability-related targets into future

performance evaluations and remuneration policies.

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202424 25

[GOV-4] STATEMENT ON DUE DILIGENCE

[GOV-5] RISK MANAGEMENT

AND INTERNAL CONTROLS

OVER SUSTAINABILITY

REPORTING

In 2024, Ekornes developed its internal control system for

sustainability reporting, with a pilot rollout of sustainability

controls planned for 2025. During this transitional phase

for the first round of CSRD reporting, the company

implemented a light version of internal controls, primarily

focused on data collection oversight through a four-eye

validation approach.

Risk Assessment Approach

A formalized risk assessment methodology was not yet in

place in 2024. Instead, risk identification and prioritization

were conducted at the Sustainability Task Force level,

and initial mitigation actions were developed. The

Sustainability Task Force also got input and guidance from

internal subject matter experts and external advisors.

The risk prioritization was based on three key factors:

1. Likelihood of occurrence – Evaluating how frequently

or how likely the identified risk could impact

sustainability reporting.

2. Potential impact – Assessing the degree of disruption

a risk could cause, particularly regarding compliance

with regulatory requirements, reporting accuracy, and

reputational consequences.

3. Mitigation complexity – Considering the feasibility

and resources required to implement risk mitigation

measures, including internal capacity and system

development needs.

While this approach was qualitative rather than formalized,

it enabled the Sustainability Task Force to rank risks based

on urgency and develop initial mitigation actions, such as

engaging external expertise, enhancing internal training,

and beginning to explore automation solutions.

Ekornes aims to establish a more structured risk

assessment framework, integrating it with existing

enterprise risk management processes to ensure

consistent evaluation and monitoring of sustainability

reporting risks.

Main Risks Identified for first reporting year

and Mitigation Strategies

Ekornes identified key risks related to sustainability

reporting in 2024, including:

• Lack of automated systems and reliance on manual data

input

• Limited internal competency and expertise in

sustainability data handling

• Internal competency gaps

While these initial control measures and mitigating

actions ensured compliance with current sustainability

reporting obligations, Ekornes plans to further strengthen

governance in 2025 through enhanced internal control

mechanisms.

Integration of Risk Assessment Findings into

Internal Processes

Based on the initial internal control process, in 2024

Ekornes has developed an Internal Control Policy that

will be rolled out in 2025 for selected pilot reporting

topics. This policy will formalize governance structures,

risk management, and validation mechanisms for

sustainability disclosures. While the internal control

framework aligns with financial reporting controls, it is

not directly modeled after it. Instead, it has been tailored

to sustainability-specific data requirements, ensuring

compliance with regulatory standards and internal

governance expectations. Findings from risk assessments

and internal control reviews will guide adjustments in

reporting methodologies, system improvements, and

additional governance measures to ensure continuous

improvement in sustainability reporting.

Additionally, Ekornes plans to expand training programs to

further develop internal competencies in data collection,

risk assessment, and compliance processes.

Reporting of findings to governance bodies

When it comes to reporting of the findings from risk

assessment and internal controls to administrative,

management and supervisory bodies, it is the Group

Sustainability Leadership Team that will be responsible

for presenting governance bodies, ensuring alignment

with corporate risk management frameworks. Specifically,

sustainability reporting risk assessment findings will

be reported to the Board of Directors and Executive

Management on a biannual basis, tracking progress toward

full implementation of internal controls.

Risk Identied Mitigation Strategy

Lack of automated systems

Development of a data collection framework covering all

regulatory requirements

High dependency on manual input

Implementation of a four-eye validation approach for data

accuracy

Internal competency gaps

Engagement with sustainability experts and training for

employees, the hotline chat and regular meetings to clarify any

questions on ESRS reporting process

Ekornes adopted a targeted approach to address these sustainability reporting risks:

Core elements of due diligence Paragraphs in the sustainability statement

a) Embedding due diligence in governance, strategy and business

model

GOV-1 Management responsibilities

GOV-1 Oversight of sustainability IROs

GOV-2 Sustainability matters addressed by management

SBM-3 Double materiality assessment

b) Engaging with affected stakeholders in all key steps of the due

diligence

SRS 2 GOV-2: Stakeholder overview

GOV-2 Sustainability matters addressed by management

IRO-1 Double materiality assessment process

c) Identifying and assessing adverse impacts SBM-3 Double materiality assessment

d) Taking actions to address those adverse impacts

E1-3 Climate action plans

E4-2 Managing impacts on biodiversity

E5-2 Managing impacts on resources and circularity

S1-4 Managing impacts on our people

e) Tracking the effectiveness of these efforts and communicating ESRS 2 MDR-M per every material topic

Core Elements of Due Diligence:

(*ESRS ESRS 2-GOV-4-32, ESRS 2-GOV-4-AR 10-(a), (b), (c), (d), (e))

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202426 27

[SBM-1] STRATEGY, BUSINESS

MODEL AND VALUE CHAIN

General Strategy and Sustainability-Related

Elements

Ekornes designs, manufactures, and distributes premium

furniture products across global markets. The company

offers a diverse range of high-quality furniture, including

the following key products:

• Recliners

• Sofas

• Chairs

• Beds

In 2024, there were no newly introduced or discontinued

product categories.

Ekornes serves a global customer base as

presented on the global map:

The company employs 2,461 people across its operations,

distributed as follows:

• Norway – 972 employees

• Lithuania – 256 employees

• USA – 80 employees

• Thailand – 881 employees

• Other regions – 272 employees

Revenue Breakdown and Significant ESRS Sectors

Ekornes does not report revenue breakdowns by ESRS

sectors. The company operates within the furniture

manufacturing sector.

Sustainability-Related Goals and their link to key

products and markets

Ekornes is currently updating its sustainability targets,

reinforcing sustainability as one of its core strategic

priorities. The company’s sustainability goals align with the

material impact areas:

Climate – Reduce CO

emissions across operations and

value chain.

Nature – Ensure key raw materials are sourced from

renewable, recycled, or certified sustainable sources.

Circular Economy – Transition to a fully circular product

portfolio, increasing recyclability and material reuse.

Own workforce – Sustainability-related targets for

workforce and social aspects are still being defined, as they

will be aligned with an updated organizational structure

and policies.

Most of Ekornes emissions accrue through the production

of the key products that are provided to customers.

Reducing emissions will impact how materials are sourced

and transported, how products are designed and marketed

to the end market. Ekornes will need to work actively with

retailers to align on sustainability targets to work together

to reduce transportation emissions. What materials are

used in production directly affects the final product and

this value needs to be communicated to the end customer.

Using sustainable raw materials and recycled raw materials

could increase cost of production, thus affecting both

retailers and end customers. Different markets also have

different maturity when it comes to actively seeking

sustainable products, and so this communication must be

targeted and tailored to the main markets. Succeeding with

a fully circular business model rests on close collaboration

with retailers and end customers, as the end customer

is the one taking care of the furniture, ensuring the

theoretical product lifetime is lived out fully. At the end of

the use life of the product, Ekornes is disconnected from

the customer and the customer is responsible for disposing

of the used furniture in a safe and sustainable manner.

Main challenges ahead

Ekornes faces several critical challenges in advancing

its sustainability strategy and meeting regulatory and

stakeholder expectations. These challenges require

targeted actions to enhance resilience and long-term

business viability.

• Improving supply chain transparency – Increasing

visibility into the supply chain is essential to ensure

compliance with sustainability regulations, such as

CSRD and the EU Taxonomy, and to meet customer

and investor expectations for ethical sourcing. Greater

transparency also helps mitigate risks related to human

rights violations, environmental impact, and material

traceability, particularly for key raw materials such as

leather, wood, and textiles.

• Building a more circular and sustainable portfolio

– Transitioning toward circularity involves designing

products for longevity, repairability, and recyclability.

This reduces resource dependency, minimizes

waste, and aligns with evolving market demands and

regulatory shifts. Increasing the use of recycled and

certified materials supports this transition while

reducing reliance on virgin resources and improving

overall environmental performance.

• Reducing carbon footprint – LLowering carbon

emissions across the value chain is necessary to

comply with international climate targets and national

regulations. Key focus areas include improving energy

efficiency in manufacturing, optimizing transportation

logistics, and sourcing lower-carbon materials. These

actions help reduce exposure to carbon pricing

mechanisms.

Addressing these challenges will require ongoing

collaboration with suppliers, retailers and end customers,

innovation in product development, and continuous

improvement in sustainability reporting and governance.

Strategic Projects and Critical Solutions

Ekornes is implementing sustainability-driven business

model improvements that focus on:

• Sustainable material innovation – Increasing the

use of recycled and certified materials in furniture

production.

• Supply chain transparency – Strengthening traceability

of raw materials through supplier engagement..

• Product circularity initiatives – Expanding circularity

of the portfolio.

Target markets

Sustainability report | Annual report Ekornes QM Holding 2024Sustainability report | Annual report Ekornes QM Holding 202428 29

Business Model and Value Chain

Ekornes operates a vertically integrated business

model, encompassing design, sourcing, manufacturing,

distribution, and sales. The company’s value chain

consists of:

Upstream

• Raw material production – Primary materials include

wood, leather, textiles, plastics, foam, steel, electronics,

and chemicals.

• Inbound logistics – Transportation of materials to

manufacturing sites.

Own Operations

• Manufacturing – Ekornes operates production facilities

in Norway, Lithuania, Thailand, and the USA.

Downstream

• Outbound logistics – Finished products are distributed

through global logistics networks.

• Sales – Key customers include large furniture retailers

and corporate clients.

• End-user engagement – Consumers purchasing

premium furniture products for residential and

commercial use

Main inputs and outputs

Ekornes sources essential raw materials such as wood,

leather, textiles, plastics, wadding, foam, steel, aluminum,

electronics, chemicals, cardboard, and styropor. Details

about inputs and sourcing regions can be found on page

87 (E5 chapter). To ensure a stable and responsible supply

chain, Ekornes integrates sustainable sourcing criteria and

supplier engagement programs, including certifications

such as FSC® for wood and LWG for leather, supplier

audits, and long-term partnerships with key suppliers.

This approach enhances supply chain sustainability

while strengthening business resilience against material

availability risks.

Beyond raw materials, Ekornes depends on its

manufacturing sites, specialized manufacturing equipment,

and a skilled workforce. To secure these inputs, the

company invests in maintaining compliance with

international labor standards, and continuously upgrades

production facilities to ensure efficiency and quality.

Intellectual assets, including product designs, brand

reputation, and relationships with suppliers, retailers,

and logistics operators, are protected through trademark

registrations, contractual agreements, and active market

engagement.

These inputs are transformed into outputs such as

recliners, chairs, sofas, beds, and other products in the

Ekornes portfolio. Other outcomes of Ekornes’ operations

include waste and emissions, economic contributions

such as tax and duty revenues, social impacts including

employment and competitive wages, and intellectual

contributions such as participation in developing furniture

industry standards for recyclability and circularity.

These inputs are transformed into outputs such as

recliners, chairs, sofas, beds, and other products in the

Ekornes portfolio. Other outcomes of Ekornes’ operations

include waste and emissions, economic contributions

such as tax and duty revenues, social impacts including

employment and competitive wages, and intellectual

contributions such as participation in developing furniture

industry standards for recyclability and circularity.

By continuously assessing risks and opportunities

related to sourcing, production, and workforce

management, Ekornes ensures the long-term availability

and sustainability of its key inputs, supporting business

growth and resilience in a changing regulatory and market

landscape.

[SBM-2] INTERESTS AND VIEWS

OF STAKEHOLDERS

1. Stakeholder Engagement

Ekornes actively engages with a broad range of

stakeholders to integrate their interests and views into its

strategy and business model. Engagement occurs through

structured surveys, interviews, audits, participation

in industry associations, direct communications, and

reporting mechanisms. The purpose of this engagement

is to ensure transparency, improve product and

service offerings, strengthen compliance, and enhance

sustainability efforts.

Stakeholder

Group

Stakeholder Interests and Purpose of

Engagement How Ekornes Engages

Impact on Operations,

Business Model, Strategy

Customers

(Dealers &

Retailers)

Expect timely product delivery, compliance with

regulations, strong marketing support, and

efcient claims handling. Ekornes engages to

strengthen commercial relationships, improve

service levels, and ensure alignment on

sustainability and quality expectations.

Customer satisfaction

surveys, involvement in

DMA process, direct sales

meetings, marketing

collaboration.

Impacts production planning,

distribution efciency, and

sustainability-focused

product development.

End-Users

(Consumers)

Seek safe, sustainable products free from

harmful chemicals, meeting environmental and

quality standards. Ekornes engages to

understand evolving consumer preferences, build

trust in the brand, and integrate sustainability

into the user experience.

Customer satisfaction

surveys, involvment in DMA

process, direct sales

meetings, marketing

collaboration.

Drives product innovation,

inuences sustainability

commitments, and impacts

brand perception.

Suppliers

Require clear specications, predictability, fair

payment terms, and compliance with

sustainability requirements (ethical sourcing,

human rights, environmental standards). Ekornes

engages to align expectations, strengthen ethical

and environmental performance, and foster

resilient, long-term partnerships.

Annual supplier audits,

self-assessments, FSC® and

LWG crtications, ongoing

collaboration on

sustainability compliance.

Impacts supply chain

resilience, ethical sourcing

policies, and risk

management.

Industry

Associations

Expect adherence to industry standards,

participation in expert groups and sustainability

initiatives. Ekornes engages to contribute to

responsible industry development, inuence

standards, and promote shared learning.

Active involvement in

sustainability committees,

industry exhibitions, peer

collaborations.

Strengthens industry

inuence, enhances

regulatory compliance

readiness, fosters innovation.

Authorities &

Regulators

Require compliance with environmental permits,

waste management, land use, and sustainability

regulations (CSRD, EU Taxonomy). Ekornes

engages to ensure regulatory alignment, manage

risks.

Compliance programs,

sustainability reporting

alignment, engagement with

regulators if required.

Impacts reporting obligations,

regulatory risks, and

long-term strategic planning.

NGOs

Demand transparency, ethical responsibility, and

collaboration on sustainability topics. Ekornes

engages to gain external insights, improve

accountability, and collaborate on initiatives that

advance responsible business practices.

Partnerships on

sustainability initiatives,

collaboration for

transparency in material

sourcing (e.g., leather value

chain).

Enhances credibility,

mitigates reputational risks,

and drives responsible

business practices.

Employees

Seek safe working conditions, fair wages, career

development, and inclusion in sustainability

efforts. Ekornes engages to support well-being,

foster inclusion, and strengthen employee

contribution to the company’s sustainability

journey.

Employee engagement

programs (health & safety,

training, union

collaboration).

Impacts talent retention,

productivity, and workplace

culture.

Owners

Expect strong nancial performance, quality

production, and commitment to sustainability

regulation. Ekornes engages to ensure

transparency, maintain strategic alignment, and

demonstrate resilience in both nancial and ESG

performance.

Quarterly earnings calls,

nancial and sustainability

performance updates,

briengs.

Affects capital allocation,

long-term strategic planning,

and risk management.

The key stakeholders and engagement approaches are detailed below:

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202430 31

2. Stakeholder Views and Strategic Integration

Ekornes integrates stakeholder perspectives into its

strategy through its materiality assessment and due

diligence processes. The assessments involve structured

analyses of stakeholder interests and expectations,

incorporating direct feedback. The degree to which

stakeholder views influence decision-making is evaluated

through data-driven insights (e.g. marketing survey

results, interview analysis etc), ensuring their concerns are

systematically addressed.

Key insights from stakeholders are one of the factors

considered in product innovation, supply chain policies, and

sustainability initiatives. Examples include:

• Strengthening sustainable product offerings based on

customer demand, with specific focus areas identified

through market insights and sustainability dialogues.

• Enhancing supplier auditing processes to address

evolving ESG expectations from regulators and industry

associations, ensuring compliance with ethical sourcing

and environmental standards.

• Expanding sustainability certifications and improving

sustainability reporting to meet customer, partner and

authorities expectations for greater transparency and

accountability.

• Improving employee engagement initiatives to retain

talent, foster a high-quality work environment, and

respond to employee feedback on workplace conditions

and development opportunities.

3. Board Oversight and Integration of

Stakeholder Views

The administrative, management, and supervisory bodies

are regularly informed about stakeholder views through

reporting and direct engagement mechanisms. This

includes:

• Board is informed regularly on DMA results

and stakeholders’ engagement and on key other

stakeholder insights.

Through these processes, Ekornes ensures that

stakeholder interests are systematically embedded in

decision-making, driving long-term sustainable value

creation.

(*ESRS S1-ESRS 2 SBM-2 -12)

[SBM-3] MATERIAL IMPACTS,

RISKS AND OPPORTUNITIES

AND THEIR INTERACTION

WITH STRATEGY AND

BUSINESS MODEL

This section presents Ekornes’ material impacts, risks and

opportunities and their interaction with Ekornes’ strategy

and business model. An overview of positive and negative

impacts as well as the identified risks and opportunities is

provided. Then the current and anticipated effects of the

IROs are discussed, considering effects on business model,

value chain, strategy and decision-making.

A more detailed description of material IROs specific

to each material topic is presented under SBM-3 for

each material topic, according to ESRS 2 and the topical

standards.

1. Overview of Material Impacts, Risks, and

Opportunities (IROs)

Ekornes has conducted a double materiality assessment

aligned with ESRS requirements to identify key

sustainability impacts, risks, and opportunities for the first

time in 2024. Consequently, there have been no changes

made to material IROs compared to previous reporting

years.

The IROs originate from Ekornes operations and value

chain and influence its business model, strategy, and

resource allocation. The assessment has identified the

following key IROs:

Category Impact Description Value Chain Scope Time Horizon

GHG Emissions &

Energy Usage

Contributing to climate change and increasing

the GHG emissions through indirect emissions

scope 3 (e.g.; commuting, procurement, use

phase of products and services).

Upstream, Downstream

Medium-term,

long-term

GHG Emissions &

Energy Usage

Ekornes' operations contribute to global

climate change due to energy consumption

and emissions from manufacturing processes.

Own Operations

Medium-term,

long-term

GHG Emissions &

Energy Usage

Sourcing products increases emissions across

the value chain, particularly from

transportation, raw material extraction, and

supplier operations.

Upstream

Medium-term,

long-term

Ecosystem and

Biodiversity Degradati-

Ekornes' reliance on large amounts of raw

materials contributes to ecosystem

degradation, including deforestation, soil

depletion, and biodiversity loss.

Upstream

Medium-term,

long-term

Circular Design &

Quality Products

Ekornes products contribute to global waste

generation throughout the lifecycle, increasing

resource consumption and disposal

challenges.

Own Operations,

Downstream

Medium-term,

long-term

Circular Design &

Quality Products

As a production company, Ekornes depends

on raw materials, leading to resource

exploitation and increased pressure on nite

natural resources.

Upstream, Own

Operations

Medium-term,

long-term

Working Conditions

Manufacturing environments are not 100%

safe, posing risks to employee health and

safety despite mitigation efforts.

Own operations

Short-term,

Medium-term,

long-term

Category Impact Description Value Chain Scope Time Horizon

Working Conditions

Providing permanent contracts and enabling a

healthy life throughgood working conditions

can enhance employee well-being,

satisfaction, and a more motivated and

engaged workforce.

Own Operations

(Thailand)

Actual impact,

Short-term,

Medium-term,

long-term

Material Negative Impacts

Material Positive Impacts

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202432 33

2. Interaction with Business Model and Strategy

Ekornes has responded to material IROs with the following

current and planned adjustments to its business model and

strategy::

• Business Model: Ekornes is integrating low-carbon,

sustainable sourced and circularity principles into

product design and manufacturing. This includes

investing in durable, repairable furniture and

sustainable raw materials to future-proof the model

against resource scarcity and regulatory changes.

• Value Chain:

• Sustainable sourcing policies have been

implemented, focusing on FSC-certified wood

and LWG-certified leather.

• Scope 3 emissions monitoring is being strengthened

to improve upstream data quality and reduce

environmental risk across suppliers.

• Ekornes actively screens suppliers in high-risk

geographies and engages in risk-based due diligence

to manage ESG dependencies.

• Strategy and Decision-Making:

• Scenario analysis is used to evaluate climate

and biodiversity risks (e.g. extreme weather,

regulation) and their implications for supply

security, material cost, and product demand

• Strategic investments include development

of alternative materials and supplier partnerships

to mitigate dependency risks.

These measures directly respond to material impacts,

risks and opportunities identified in the double materiality

assessment and are intended to strengthen Ekornes’

long-term operational resilience and brand positioning.

3. Financial and Strategic Implications of Material

IROs

Ekornes evaluates both the current and anticipated

financial effects of material IROs:

As of 2024, no significant sustainability-related financial

impacts have been identified that would significantly affect

the company’s financial position, performance, or cash

flows. The financial statements and budget incorporate

recurring sustainability-related costs, and no substantial

adjustments to asset or liability values are expected in the

next reporting period.

While no current material financial impacts have been

identified for 2024, the anticipated financial effects of

material IROs will be further assessed and may include:

1. Increased Operating Costs

• Due diligence and compliance with sourcing

certifications (e.g. FSC, LWG) will lead to higher

procurement and verification costs.

• Enhanced emissions, particularly Scope 3, and

sustainability data points tracking may require

investment in new IT systems, data collection tools,

and staff training.

2. Capital Expenditures

• Investment in sustainable material innovation and

process efficiency (e.g. circular design, low-carbon

manufacturing) may increase R&D and equipment

costs in the short term.

• Shifting to more sustainable suppliers or regions

may require adjustments to logistics or procurement

contracts.

3. Cost of Non-Compliance or Delays

• Failure to meet emerging regulatory standards

(e.g. EU deforestation regulation, CSRD, taxonomy

alignment) could result in fines, loss of market access,

or reputational damage impacting sales.

4. Financial Risk from Physical Climate Impacts

• Exposure to supply chain disruption from extreme

weather or natural resource scarcity (e.g. wood,

foam) may lead to delays or increased input prices,

though these risks are currently assessed as

moderate.

4. Resilience of Strategy and Business Model

Ekornes ensures resilience by integrating sustainability

considerations into its business model, addressing

key climate and biodiversity risks through structured

mitigation and adaptation strategies.

• Scenario analysis and risk assessment: Ekornes

evaluates the resilience of its strategy under various

climate and biodiversity scenarios, including physical

risks such as supply chain disruptions from extreme

weather and resource availability constraints, as well

as transition risks like regulatory shifts and evolving

market expectations for sustainable products. This

analysis will inform strategic decisions.

• Investment in innovation and sustainable supply

chains: To reduce dependency on vulnerable raw

materials and mitigate transition risks, Ekornes is

actively developing alternative materials and expanding

partnerships for certified, traceable sourcing, including

FSC-certified wood and LWG-certified leather.

Investments in process efficiency and product design

also support long-term resilience against resource

scarcity and regulatory shifts.

• Circularity and low-carbon manufacturing: Ekornes

is transitioning its portfolio toward circularity by

integrating product durability, repairability, and material

recovery strategies.

• Workforce stability and adaptation: With production

facilities in Norway, Thailand, Lithuania, and the USA,

Ekornes ensures resilience by maintaining a stable

workforce through secure employment contracts,

competitive wages, and strong workplace safety

measures. By aligning labor policies with international

standards, Ekornes strengthens operational continuity

and supports long-term business sustainability.

[IRO-1] DESCRIPTION OF

PROCESS TO IDENTIFY AND

ASSESS MATERIAL IMPACTS,

RISKS AND OPPORTUNITIES

1. Overview of the Materiality Assessment

Process

Ekornes has conducted a double materiality assessment

to identify and assess its impacts, risks, and opportunities

(IROs) across its operations and value chain. The

methodology aligns with ESRS 1 principles and

incorporates both impact materiality (effects on people and

the environment) and financial materiality (effects on the

company’s financial position and performance). Ekornes’

IROs are covered by ESRS Disclosure Requirements.

The assessment followed a structured four-phase

approach:

1. Mobilization – Team onboarding, review of existing

sustainability materials like policies, strategies,

departments’ standards in use, and setup of governance

structures.

Category Description of Financial Impact Scope Time-horizon

GHG Emissions & Energy

Usage

Proactive disclosure of scope 3 emissions can result in valuable insights

on the business and value chain activities that are the most emitting.

Therefore, disclosing scope 3 emissions can lead to better-informed

decision-making, investment choices, and improved supply chain

collaboration.

Opportunity

Short-

medium-

term

GHG Emissions & Energy

Usage

Switching to low-carbon footprint products can result in additional

costs. This is due to higher production expenses, the use of more

sustainable but costly materials, and the need for new technologies or

processes. In many cases, supply chains for low-carbon alternatives are

less developed, leading to higher procurement and operational costs.

Risk

Medium-

term

Ecosystem and Biodiversity

Degradation

Switching to materials from sustainable production processes can lead

to increased costs. This is because these materials often require more

responsible sourcing, stricter environmental standards, and

certications that add expenses. Additionally, sustainable production

methods may have lower yields or involve more labor-intensive

practices, raising costs compared to conventional alternatives. Limited

supply and higher demand for sustainably produced materials can also

drive up prices.

Risk

Medium-

term

Circular Design & Quality

Products

Designing recyclable and durable products and furniture can increase

costs. This is because it often requires higher-quality materials,

advanced engineering, and more complex manufacturing processes.

Ensuring recyclability may involve specialized material selection,

disassembly-friendly designs, and compliance with circular economy

standards, all of which can add to production expenses. Additionally,

durability testing, certications, and potential redesigns to balance

longevity with sustainability further contribute to higher upfront costs

for manufacturers.

Risk

Short-

medium-

long- term

Description of Financial Impact

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202434 35

2. Definition – Compilation of a long list of ESG topics

that is further mapped against the value chain to

narrow it down that became the foundation for further

assessment.

3. Assessment – Workshops, internal analysis, and

engagement with stakeholders to identify and score

IROs based on materiality thresholds.

4. Final conclusion – Decide on material topics based on

materiality scores of IROs.

2. Methodologies and Assumptions

Ekornes applied a combination of qualitative and

quantitative methods to identify, assess, and prioritize IROs:

• Internal Expert Review – Cross-functional teams

assessed impacts, risks and opportunities based on

likelihood and severity.

• Stakeholder Engagement – Interviews and

workshops were conducted with internal and external

stakeholders.

• Benchmarking and Peer Analysis – long list of IROs

were further compared against industry best practices

and competitor disclosures to ensure that nothing went

missing.

• Financial and Impact Scoring – IROs were ranked

using predefined scoring methodologies for impact

materiality (severity, scope, likelihood, irremediability)

and financial materiality (financial effects, likelihood of

occurrence, and strategic relevance).

3. Process for Identifying and Prioritizing Impacts

3.1 Scope of Analysis

Ekornes considered its entire value chain, from raw

material sourcing to end-of-life product disposal,

identifying specific activities and business relationships

that contribute to heightened sustainability risks.

Ekornes considered its entire value chain, from raw

material sourcing to end-of-life product disposal,

identifying specific activities, business relationships, and

geographies that contribute to heightened sustainability

risks. This included close analysis of sourcing regions for

leather, wood, textiles, and steel, based on environmental

risks such as deforestation, emissions, as well as workers

rights risks flagged in due diligence checks.

The materiality assessment was informed by Ekornes’

ongoing due diligence process, which includes supplier

audits, compliance checks, and ESG risk screening

of high-risk sourcing countries. These due diligence

insights were integrated into the materiality scoring and

prioritisation of impacts. Specific attention was given to

upstream suppliers and partners operating in geographies

with higher ESG risk profiles. This approach ensures that

Ekornes’ process prioritises areas with potential or actual

adverse impacts based on concrete data, stakeholder input,

and internal compliance reviews.

More detailed information on IRO-1 for topical standards

can be found in the respective chapters:

E1 - pages 48-49

E4 - pages 74-75

E5 - pages 84-85

S1 - pages 98-99

3.2 Stakeholder Engagement

Ekornes incorporated insights from:

• Employees (workshops and surveys)

• Customers and dealers (interviews and satisfaction

surveys)

• Suppliers (audits and compliance checks)

• Employees

• Internal SMEs

3.3 Prioritization Criteria

Negative impacts were prioritized based on:

• Severity (scale and scope of impact)

• Likelihood (probability of occurrence)

• Irremediability (difficulty of mitigation or reversal)

• Time Horizon (short-, medium-, or long-term relevance)

Positive impacts were prioritized based on:

• Severity (scale and scope of impact)

• Likelihood (probability of occurrence)

• Time Horizon (short-, medium-, or long-term relevance)

4. Process for Assessing Financial Risks and

Opportunities

Ekornes assessed financial risks and opportunities

through:

• Size of financial effect

• Likelihood

To support prioritization and decision-making, Ekornes

applied a scoring model that enabled a consistent and

transparent evaluation of sustainability impacts, risks, and

opportunities. Thresholds for significance were established

based on both qualitative and quantitative input from

internal experts across sustainability, finance, risk, and

procurement functions.

Each impact was assessed using defined criteria—such as

severity, likelihood, time horizon, and irremediability—and

risk and opportunities were scored on a standardized

scale. Thresholds for identifying material topics were

calibrated by analyzing score distributions and identifying

natural breakpoints that distinguish high-priority IROs.

This approach ensured a balanced representation of both

actual and potential impacts, as well as financial relevance,

aligning with the principles of double materiality under

ESRS.

The scoring and threshold-setting process was validated

through internal workshops and reviewed by senior

management to ensure it reflects Ekornes’ strategic

context and stakeholder expectations.

Ekornes’ double materiality approach explicitly considered

how impacts, create strategic, operational, or financial risks

and opportunities for the company.

By mapping each material impact and dependency to its

corresponding risk or opportunity the company ensured

that disclosures align with the logic of double materiality

and reflect the systemic nature of sustainability challenges.

This process was informed by input from sustainability,

procurement, risk, and finance functions.

5. Integration with Corporate Governance and Risk

Management

Ekornes plans to integrate sustainability risk criteria within

its broader risk management framework in upcoming

years. As on 2024 following actions have been in place:

• Results of DMA are reported to senior management

and the board.

• Those results informed ambition setting workshop to

better understand risks and strategic developments.

• Based on this input management approved development

of the internal control framework for sustainability.

6. Changes Compared to the Previous Reporting Period

For the 2024 reporting period, Ekornes conducted a

double materiality assessment for the first time. As a result,

there is no direct comparison available with previous years,

as this is the first iteration of the process. Future reporting

cycles will build upon this baseline to track progress and

refine methodologies for enhanced accuracy and strategic

alignment.

7. Process for Identifying Material Topics – E2, E3,

and G1 (Immaterial Topics)

As part of double materiality assessment, Ekornes has

also considered the potential pollution-related (E2),

water and marine resources-related (E3), and business

conduct-related (G1) impacts, risks, and opportunities.

Although these topics were not assessed as material for

our 2024 reporting period, we applied the same IRO-1

process as described for material topics.

For E2 and E3, Ekornes screened relevant sites and

business activities across our operations and value chain

to identify any pollution- or water-related impacts. The

assessment was based on our own operations, supplier

engagement, and expert input, using sector-appropriate

tools and references. For G1, we assessed business

conduct risks based on geographic location, nature of

business relationships, activity type, and sector-specific

risk factors, aligned with Ekornes ethics and compliance

programs. Ekornes didn’t conduct consultations with

affected communities,

These topics were not prioritized for reporting this year

due to limited identified impacts, risks, or opportunities.

Ekornes will continue to monitor developments in these

areas and reassess in future cycles.

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202436 37

ESRS DMA Assessment Performed By

Internal Subject-Matter

Experts

External Advisory and Input Input Parameters Used

First Review

Conducted by

Final Review and

Approval Conducted by

Materials for Board

approved by

Final DMA

Approved by

E1 - Climate

Change

Sustainability&strategy team, quality and

compliance, procurement and nancial teams

Sustainbility&strategy team,

procurement team

External advisors were used to review the relevance

for the topics and provide input on the best practices

Policies, internal guiding documents,

desk reviews, interviews, workshops,

assessment templates

Head of Strategy CFO

SVP

Strategy&Organization

Board

E4 - Biodiversity

and Ecosystems

Sustainability&strategy team, quality and

compliance, procurement and nancial teams

Sustainbility&strategy team,

procurement team

External advisors were used to review the relevance

for the topics and provide input on the best practices

Policies, internal guding documents,

desk reviews interviews, workshops,

assessment templates

Head of Strategy CFO

SVP

Strategy&Organization

Board

E5 - Resource Use

& Circular

Economy

Sustainbility&strategy team, quality and

compliance, procurement and nancial teams

Sustainbility&strategy team,

External advisors were used to review the relevance

for the topics and provide input on the best practices

Policies, internal guding documents,

desk reviews interviews, workshops,

assessment templates

Head of Strategy CFO

SVP

Strategy&Organization

Board

S1 - Own

Workforce

Group HR, Finance team, CFO HR

External advisors were used to review the relevance

for the topics and provide input on the best practices

Policies, internal guiding documents,

desk reviews interviews, workshops,

assessment templates

Head of Strategy CFO

SVP

Strategy&Organization

Board

E2-Polution – not

material

Sustainability&strategy team, quality and

compliance, procurement and nancial teams

Sustainbility&strategy team

External advisors were used to review the relevance

for the topics and provide input on the best practices

Desk reviews, interviews, workshops,

assessment templates

Head of Strategy CFO

SVP

Strategy&Organization

Board

E3-Water and

marine resources

– not mtaerial

Sustainability&strategy team, quality and

compliance, procurement and nancial teams

Sustainbility&strategy team

External advisors were used to review the relevance

for the topics and provide input on the best practices

Desk reviews, interviews, workshops,

assessment templates

Head of Strategy CFO

SVP

Strategy&Organization

Board

S2- workers in the

value chain – not

materail

Sustainability&strategy team, quality and

compliance, procurement and nancial teams,

Sustainbility&strategy team

External advisors were used to review the relevance

for the topics and provide input on the best practices

Desk reviews, interviews, workshops,

assessment templates

Head of Strategy CFO

SVP

Strategy&Organization

Board

S3 – affected

communities

– not material

Sustainability&strategy team, quality and

compliance, procurement and nancial teams

Sustainbility&strategy team

External advisors were used to review the relevance

for the topics and provide input on the best practices

Desk reviews, interviews, workshops,

assessment templates

Head of Strategy CFO

SVP

Strategy&Organization

Board

S4 –

Consumers&End-

Users – not

material

Sustainability&strategy team, quality and

compliance, procurement and nancial teams

Sustainbility&strategy team

External advisors were used to review the relevance

for the topics and provide input on the best practices

Desk reviews, interviews, workshops,

assessment templates

Head of Strategy CFO

SVP

Strategy&Organization

Board

G1 Business

Conduct – not

material

Sustainability&strategy team, quality and

compliance, procurement and nancial teams

Sustainbility&strategy team

External advisors were used to review the relevance

for the topics and provide input on the best practices

Desk reviews, interviews, workshops,

assessment templates

Head of Strategy CFO

SVP

Strategy&Organization

Board

Materiality Assessment Process - Double Materiality Analysis (DMA) Template

The DMA process table presents the approval and input process used for ESRS assessment.

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202438 39

[IRO-2] DISCLOSURE REQUIRE-

MENTS IN ESRS COVERED BY

THE UNDERTAKING’S SUSTAIN-

ABILITY STATEMENT

To collect and assess the information required for

sustainability disclosures, Ekornes conducted targeted

consultations with internal stakeholders across key

business functions. These stakeholders were selected

based on their operational knowledge of material topics,

including finance, climate, circularity, sourcing, and social

responsibility. The consultations focused on aligning

specific IROs and ESRS data points with company targets,

strategies and actions. As a follow-up, Ekornes reviewed

and validated findings through a leadership review

process, ensuring consistency with existing activities, and

management systems. This iterative approach enabled

company to identify the relevant content for disclosure and

confirm its accuracy and completeness in line with CSRD

expectations.

Given the evolving regulatory landscape and the

complexity of environmental financial assessments,

Ekornes has opted to postpone detailed disclosures on the

projected financial effects of sustainability-related matters,

including the projected allocation of capital and operating

expenditures for environmental initiatives, in this initial

reporting year. Future reports will refine these disclosures.

Detailed IRO-2 table Disclosure requirements by

reference please find below.

Data points that derive from other EU legislation please

find in the table A1 IRO 2 Data points that derive from

other EU legislation at the end of the report.

ESRS 2 General Disclosures

DISCLOSURE REQUIREMENTS BY REFERENCE

ESRS Standard Standard Description Section Page

BP-1

General basis for preparation of sustainability statements

Sustainability statement 19/20

BP-2

Disclosures in relation to specic circumstances

Sustainability statement 19/20

GOV-1

Role of the administrative, management and supervisory bodies

Sustainability statement 21/23

GOV-2

Information provided to and sustainability matters addressed by

administrative, management and supervisory bodies

Sustainability statement 21/23

GOV-3

Integration of sustainability-related performance in incentive schemes

Sustainability statement 23

GOV-4

Statement on Due dilligence

Sustainability statement 24

GOV-5

Risk management and internal controls over sustainability reporting

Sustainability statement 24/25

SBM-1

Strategy, business model and value chain

Sustainability statement 26/28

SBM-2

Interests and views of stakeholders

Sustainability statement 28/30

SBM-3

Material impacts, risks and opportunities and their interaction with

strategy and business model

Sustainability statement 31/33

IRO-1

Description of process to identify and assess material impacts, risks and

opportunities

Sustainability statement 33/37

IRO-2

Disclosure Requirements in ESRS covered by sustainability statements

Sustainability statement

34/41,

108/111

E 1 Climate Change

E4 Biodiversity

ESRS Standard Standard Description Section Page

ESRS 2, GOV-3

Integration of sustainability-related performance in incentive schemes

Sustainability statement 23

E1-1

Transition plan for climate change mitigation

Sustainability statement 53

ESRS 2, SBM-3

Climate related impacts, risks and opportunities

Sustainability statement 48

ESRS 2, IRO-1

Climate related process to identify and assess material impacts, risks and

opportunities

Sustainability statement 33/35, 48

E1-2

Policies related to climate change mitigation and adaptation

Sustainability statement

42/45,

51/25

E1-3

Actions and resources in relation to climate change policies

Sustainability statement 53

E1-4

Targets related to climate change mitigation and adaptation

Sustainability statement 53

E1-5

Energy consumption and mix

Sustainability statement 53/55

E1-6

Gross Scopes 1, 2, 3 and Total GHG emissions

Sustainability statement 56/61

ESRS Standard Standard Description Section Page

E4-1

Transition plan on biodiversity and ecosystems in strategy and business

model

Sustainability statement 76/79

ESRS 2, SBM-3

Biodiversity related impacts, risks and opportunities

Sustainability statement 76

ESRS 2, IRO-1

Biodiversity related process to identify and assess material impacts, risks

and opportunities

Sustainability statement

33/35,

E4-2

Policies related to biodiversity and ecosystems

Sustainability statement

44/45,

79/80

E4-3

Actions and resources related to biodiversity and ecosystems

Sustainability statement 82/83

E4-4

Targets related to biodiversity and ecosystems

Sustainability statement 81/82

E4-5

Impact metrics related to biodiversity and ecosystems change

Sustainability statement 83

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202440 41

E5 Resource use and circular economy S1 Own Workforce

ESRS Standard Standard Description Section Page

ESRS 2, IRO-1

Circularity related process to identify and assess material impacts, risks

and opportunities

Sustainability statement

33/35,

84/85

E5-1

Policies related to resource use and circular economy

Sustainability statement 42/45, 85

E5-2

Actions and resources related to resource use and circular economy

Sustainability statement 86

E5-3

Targets related to resource use and circular economy

Sustainability statement 86

E5-4

Resource inows

Sustainability statement 87/91

E5-5

Resource outows

Sustainability statement 92/95

ESRS Standard Standard Description Section Page

ESRS 2, SBM-2

Own workforce-related interests and views of stakeholders

Sustainability statement 29

ESRS 2, SBM-3

Own workforce related impacts, risks and opportunities

Sustainability statement

33/35,

98/99

S1-1

Policies related to own workforce

Sustainability statement

42/45,

91/100

S1-2

Processes for engaging with own workers and workers’ representatives

about impacts

Sustainability statement 101

S1-3

Processes to remediate negative impacts and channels for own workforce

to raise concerns

Sustainability statement 102

S1-4

Actions on material impacts on own workforce, and approaches to

mitigating material risks and pursuing material opportunities related to

own workforce, and effectiveness of those actions

Sustainability statement 100

S1-5

Targets related to managing material negative impacts, advancing positive

impacts, and managing material risks and opportunities

Sustainability statement 101

S1-6

Characteristics of undertaking’s employees

Sustainability statement 102/104

S1-8

Collective bargaining coverage and social dialogue

Sustainability statement 104/105

S1-10

Adequate Wages

Sustainability statement 105

S1-11

Social protection

Sustainability statement 106

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202442 43

Policy Description of key content Scope of policy, value chain

Scope of policy,

geography

Accountability and monitoring

process

Third-party standards or initatives Availability

Material

Topic

Ekornes

Environmental Policy

Ekornes Environmental Policy outlines how we will improve our own environmental performance

and be a driving force in the sustainability work within the industry. The general objective of the

policy is to provide clearly dened commitments related to Ekornes’ environmental performance

and environmental targets.

Upstream, Own operations,

Downstream

All geographies

Quality, Health, Safety and Environment

Manager

No set monitoring process.

ISO 14001:2015 Available internally

Ekornes Supplier

Code of conduct

The Supplier Code of Conduct outlines Ekornes’ expectations to suppliers and business partners. It

touches on several topics, including; management systems, forced labour, freedom of association,

child labour and young workers, discrimination, health and safety, decent wage, working hours,

regular employment, environmental regulations and corruption and bribery.

Upstream All geographies

SVP Sourcing & Supply

Procurement Category Managers

No set monitoring process.

UN Global Compact

International Labour Organization’s

Convention NO 138 and NO 182

Actively communicated to

suppliers and business

partners.

Publicly available through

the Ekornes website.

Sustainability

Position Paper on

Nature

The Sustainability Position Paper on Nature outlines Ekornes’ key biodiversity priorities for

2024-2026. These include minimizing negative impacts on biodiversity and ecosystems, ensuring

compliance with biodiversity regulations and standards, and promoting ecosystem restoration and

resilience across our value chain.

Upstream, Own operations,

Downstream

All geographies

Head of Strategy & Sustainability

Annual review to incorporate advancements

in biodiversity science, regulatory updates

Supplier audits, biodiversity performance

reviews and traceability measures in the

supply chain.

Kunming-Montreal Global Biodiversity

Framework

EU Biodiversity Strategy for 2030

FSC and PEFC certication schemes for

sustainable forestry practices

The Leather Working Group standards

for responsible leather sourcing

Available internally E4

Sustainability

Position Paper on

Climate

The Sustainability Position Paper on Climate outlines Ekornes’ key climate and energy priorities for

2024-2026. These include emissions reduction, sustainable product design, supplier engagement

and collaboration, transparency and reporting, and continuous improvement on climate-related

metrics and sustainable practices.

Upstream, Own operations All geographies

Head of Strategy & Sustainability

Annual review

UN Sustainable Development Goals

Paris Agreement

GHG protocol

CSRD

Available internally E1

Sustainability

Position Paper on

Our People

This position statement outlines Ekornes’ key workforce priorities for 2024–2026, emphasizing

Ekornes approach to promoting employee well-being, upholding fair labor practices, and investing

in professional development.

Own operations All geographies

VP people&Culture

Annual review of policy

UN Global Compact

International Labour Organization’s

Convention

Available internally

through TQM

Sustainability

Position Paper on

Circularity

The Sustainability Position Paper Circularity outlines Ekornes’ commitment to embedding

circularity principles across our value chain. The Position Paper covers which key principles guide

Ekornes’ circularity efforts, Ekornes’ approach to circularity and the key activities linked to

managing risks and seizing opportunities related to circularity. The general objective of the position

paper is to outline key principles, approaches and measures related to circularity and will form the

basis for a Circularity policy which is in the making.

Upstream, Own operations,

Downstream

All geographies

Head of Strategy & Sustainability

Annual review of policy to account for

scientic advances, regulatory updates and

changing stakeholder expectations.

EU Packaging and Packaging Waste

Regulation (PPWR), EU Circular

Economy Action Plan (CEAP)

Available internally E5

Sustainable Leather

Sourcing Policy

The Sustainable Leather Sourcing Policy outlines criteria and quality specications all leather

suppliers to Ekornes must comprehend, sign and comply with.

Notably the policy details which substances and chemicals are permitted by suppliers and which

are considered restricted.

Upstream, Own operations All geographies

SVP Sourcing and Supply Chain

Procurement and supply chain teams

(ensure supplier compliance, integrate

sustainability requirements into sourcing

contracts)

Own inspectors take part in leather selection

and random sample testing

Leather Working Group

World Health Organization by Animal

Health

EU Deforestation Regulation EUDR

EU 23/1115

Available internally and

made available to

suppliers

Table for Ekornes policies related to material IROs

More detailed information on policies for material topics is allocated in designated topic chapters.

44 45

FSC

Certication

Policy

Ekornes is a member of the FSC

Chain of Custody (COC)Certication and complies with the FSC

Member Instruction Manual. This policy outlines the people responsible for COC at Ekornes,

employee training requirements, documentation requirements, material sourcing and storage

requirements, supplier control and monitoring requirements, production specications when using

FSC

wood, volume control and accounting best practices, sale of certied products, and use of the

FSC

label.

Upstream, Own operations,

Downstream

All geographies

CEO

Central Multisite Manager

Local FSC managers oversee compliance at

facility level

Forest Stewardship Council

FSC-STD-40-004 V3-1 (Standard for

Chain of Custody certication)

FSC-STD-50-001 V2-1 (FSC labeling

requirements)

FSC-PRO-20-001 V1-1 (Evaluation of

compliance with FSC values)

Available internally E4

Ekornes Quality

Policy

Ekornes Quality Policy outlines Ekornes’ overall quality policy, which is to deliver products and

services that satisfy our customers’ assumed expectations and needs. These expectations are

dened in the product specication used in manufacturing. The general objective of the policy is to

ensure Ekornes focuses on continual improvement to ensure that our products have the right/

correct quality, in line with product specications.

Upstream, Own operations,

Downstream

All geographies

Quality, Health, Safety and Environment

Manager

No set monitoring process.

ISO 9001:2015 Available internally. E5

Furniture

Compliance

Specication

(Ekornes Compliance

Handbook)

This compliance specication outlines the standards and requirements that furniture products

must meet to ensure safety, durability, and compliance with relevant regulations and industry

standards. Furniture test standards are a set of guidelines and specications used to evaluate the

safety, durability, and performance of various types of furniture. This policy ensures Ekornes

products are of high quality and safe to use.

Upstream, Own operations,

Downstream

All geographies

Quality, Health, Safety and Environment

Manager

Periodic review to ensure it remains up to

date with evolving regulations and industry

best practices.

Public Procurement Requirements

(Norway), Møbelfakta, Svensk

Møbelfakta, Svanemerket

Available internally and

communicated to

suppliers, vendors and

customers as needed.

Ekornes People

Policy

The policy is a high-level framework that outlines Ekornes commitment to managing its workforce

in a fair, inclusive, and ethical manner across all regions. It acts as a tool to give clear understanding

what’s expected from employees and what employees can expect from the business. This policy has

been developed, but not yet implemented.

Own operations All geographies VP People & Culture N/A S1

Whistleblowing at

Ekornes (poster)

The policy guides employees on how to report wrongdoing or causes for concern at work. Own operations All geographies VP People & Culture

Available internally

(intranet)

Whistleblowing

procedure (full scale,

Norwegian only)

The policy describes the Global whistleblowing procedure of Ekornes AS and all group companies. Own operations in Norway All geographies VP People & Culture Norwegian Employment Law

Available internally

(intranet)

Health, safety and

Environmental policy

The health, safety and environmental policy outlines Ekornes’ guidelines for health, safety and

environmental issues, as well as the objectives related to these topics.

Own operations All geographies

Quality, Health, Safety and Environment

Manager

Available internally S1

Ekornes

Management

Handbook – Quality,

HSE, Environment

Ekornes AS have chosen to have a management system for Quality, HSE and Environment in

accordance with the quality management standard ISO 9001 and the environmental management

standard ISO 14001. This Management handbook includes management of Quality, HSE and

Environment.

Own operations All geographies

Quality, Health, Safety and Environment

Manager

ISO 9001

ISO 14001

Available internally S1

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 2024

Contents

46 4746 Annual report Ekornes QM Holding 2024 | Sustainability report 47

Environment

Sustainability report | Annual report Ekornes QM Holding 2024

E1 Climate change 48-61

EU Taxonomy 61-73

E4 Biodiversity and ecosystems 74-83

E5 Resource and use and circular economy 84-96

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202448 49

ESRS E1 – Climate Change

E1 – CLIMATE RELATED IMPACTS, RISKS

AND OPPORTUNITIES

Climate-Related Risks Identification (IRO 1)

In 2024 DMA and related analysis, Ekornes identified and

assessed IROs for reporting. This served as the foundation

for evaluating the climate resilience of our business model

and strategy.

This approach ensures a comprehensive understanding of

all potential climate impacts, risks, and opportunities

across our operations. By applying this broader assessment

methodology, Ekornes can continuously improve

sustainability strategy, proactively monitor emerging risks,

and enhance our long-term resilience.

Ekornes screened its operations and value chain to identify

actual and potential sources of GHG emissions, particularly

related to Scope 1, 2, and 3 emissions. This includes

emissions from production processes, purchased

electricity, logistics, employee commuting, travel, etc.

The company assessed these emissions using available

spend and activity data, internal calculations, and industry

benchmarks to evaluate their contribution to global

climate change. The findings directly informed the

classification of material IROs in the DMA and the

prioritization of climate action areas.

E1 – Climate related impacts, risks and opportunities

Resilience of Strategy and Business Model:

As part of our sustainability work and responsible business

practices, Ekornes following DMA analysis has carried out

a comprehensive resilience analysis to assess the strength

of our strategy and business model in relation to climate

change.

Scope of the Resilience Analysis

(*ESRS E1-ESRS 2 SBM-3-19-(a) IRO 1)

The resilience analysis covers:

• Own operations in Norway, USA, Lithuania, and

Thailand.

• Supply chain risks related to sourcing from Europe,

Brazil, China, and other key regions.

• Logistics risks, including shipping delays due to extreme

weather.

Climate hazards and transition risks considered

As part of the physical risk assessment, Ekornes identified

key climate-related hazards relevant to its operations and

supply chain using IPCC and NGFS sources. These include:

• Flood risk and sea level rise (particularly affecting own

operations, logistics and ports)

• Droughts and heatwaves (impacting raw material supply

such as wood and leather)

• Storms and extreme precipitation (affecting shipping

and regional production facilities)

Ekornes assessed the exposure and sensitivity of its key

assets and business activities to identified hazards. For

example:

• Manufacturing facilities in Norway and Lithuania were

evaluated for flood risk.

• Leather supply from Brazil was assessed for sensitivity

to drought and deforestation-related climate shifts.

• Shipping routes were evaluated for exposure to storm

and port disruption risks.

Ekornes identified transition risks through a structured

review of current and anticipated regulatory, market, and

technology developments. The analysis was informed by a

1.5°C scenario and included:

• EU and Norwegian sustainability regulations

• Market shifts toward low-emission materials

Methodology and Timing of the Resilience

Analysis

Ekornes conducted its climate scenario analysis based on

the principles outlined in ESRS E1-ESRS 2 SBM-3-19. The

methodology follows a structured approach to evaluate

the resilience of our business model, supply chain, and

operations under different climate scenarios. The analysis

is aligned with internationally recognized frameworks,

including those proposed by the Task Force on Climate-

Related Financial Disclosures (TCFD).

The process involved collaborating with key internal

stakeholders, including Operations, Procurement, Finance,

and Sustainability teams.

Key Assumptions for Scenario Analysis

• Carbon Pricing: In both the 1.5°C and 2°C scenarios,

carbon pricing is expected to rise significantly,

particularly in the EU. In the 1.5°C scenario, carbon

prices will be much higher, leading to increased

operational costs and compliance costs.

• Energy Transition: A shift towards renewable energy

will occur in all scenarios, but the pace of this transition

will be faster in the 1.5°C scenario. This will lead to

increased energy costs in the short-term but potential

savings in the long-term due to energy efficiency.

• Shift to low emission materials: In the 1.5°C and 2°C

scenarios, there will be a strong policy and

market-driven push toward the use of low-emission and

circular materials. Companies will increasingly adopt

certified, recycled, or bio-based alternatives to reduce

their carbon footprint. This shift may increase material

costs in the short-term due to limited supply and higher

certification standards, but it is expected to reduce

emissions and regulatory risks over time.

• Raw Material Availability: Climate-induced disruptions,

such as wildfires, droughts, and flooding, will affect the

availability of key raw materials (e.g., leather from Brazil,

wood from Slovakia and Germany). These disruptions

are expected to be more severe in the 4°C scenario.

• Supply Chain Resilience: The 1.5°C and 2°C scenarios

will focus on building more resilient supply chains to

address potential disruptions, while the 4°C scenario

may lead to severe logistical challenges due to extreme

weather and disrupted shipping routes.

IRO identied during DMA Type of impact Scope Time horizon

Scope 3 emissions: Contributing to climate change and increasing

the GHG emissions through indirect emissions scope 3 (e.g.;

commuting, procurement, use phase of products and services).

Negative impact

Physical

Upstream,

Downstream

Medium-term,

long-term

Energy consumption and emissions: Ekornes’ operations contribute

to global climate change due to energy consumption and emissions

from manufacturing processes.

Negative impact

Physical

Own operations

Medium-term,

long-term

Supply chain GHG emissions: Sourcing products increases GHG

emissions across the value chain, particularly from transportation,

raw material extraction, and supplier operations.

Negative impact

Physical

Upstream

Medium-term,

long-term

Data driven Scope 3: Proactive disclosure of scope 3 emissions can

result in valuable insights on the business and value chain activities

that are the most emitting. Therefore, disclosing scope 3 emissions

can lead to better informed decision-making and investment choices

and improved supply chain collaboration.

Opportunity

Transition

Upstream,

Downstream

Short-term,

medium-term

Low-carbon products: Switching to low-carbon footprint products

can result in additional costs. This is due to higher production

expenses, the use of more sustainable but costly materials, and the

need for new technologies or processes. In many cases, supply chains

for low-carbon alternatives are less developed, leading to higher

procurement and operational costs.

Risk

Transition

Upstream

Medium-term

Material IROs identified

(*ESRS E1-ESRS 2 SBM-3-18)

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202450 51

Time horizons:

Ekornes’ resilience analysis is based on the following time

horizons:

• Short-term: 1–5 years.

• Medium-term: 5–10 years.

• Long-term: 10+ years.

(*ESRS E1-ESRS 2 SBM-3-AR 6)

Scenarios used in Resilience Analysis:

1.5°C Scenario (Paris Agreement-aligned)

• High regulatory pressure, increased carbon pricing,

strict sustainability compliance.

• High costs in short-term but potential long-term

business opportunities through green financing and

sustainable product leadership.

2°C Scenario (Moderate climate action)

• Moderate regulatory pressure, gradual transition to

renewable energy. moderate supplier adaption costs.

• Market-driven demand for sustainability increases

steadily.

4°C Scenario (High-Risk Climate Scenario)

• Severe physical risks (hurricanes, wildfires, extreme

heat) disrupt operations and supply chains.

• Increased insurance costs, productivity losses, and

material sourcing instability.

(*ESRS E1-ESRS 2 SBM-3-AR 7))

Results of the Resilience Analysis

The resilience analysis identified Ekornes’ climate

resilience as moderate, reflecting a balance between

strategic adaptation efforts and inherent vulnerabilities

related to the financial impact of transitioning to

low-carbon footprint products and managing Scope 3

emissions throughout the supply chain.

The material risk for Ekornes is associated with increased

costs linked to low-carbon footprint products. This

includes costs arising from adopting certified raw

materials, meeting enhanced sustainability standards, and

implementing renewable energy solutions. These factors

drive operational cost increases and necessitate supply

chain adjustments to ensure compliance with evolving

regulatory standards. Additionally, managing Scope 3

emissions across the value chain is essential to maintain

transparency and stakeholder trust, as well as to mitigate

transition risks.

Resilience Evaluation by Scenario:

• 1.5°C Scenario (Paris Agreement-aligned):

Strengths: Compliance through low-carbon materials,

renewable energy adoption, and transparent Scope 3

disclosure.

Vulnerabilities: High short-term costs from carbon pricing

and certification requirements. Increased procurement

expenses for low-carbon materials.

Opportunities: Growing market demand for sustainable

products and access to green financing.

• 2°C Scenario (Moderate climate action):

Strengths: Adaptation to market-driven sustainability

demand and gradual adoption of eco-design principles.

Vulnerabilities: Moderate costs from supplier adaptation

and compliance. Operational efficiency challenges during

the transition.

Opportunities: Stable demand for sustainable products

and incremental improvements in supply chain resilience.

• 4°C Scenario (High-Risk Climate Scenario):

Strengths: Minimal, due to high physical risk exposure and

logistics disruptions.

Vulnerabilities: Severe impacts from hurricanes, wildfires,

and disrupted supply chains. Increased production costs

and insurance premiums.

Opportunities: Limited, as economic strain may reduce

consumer focus on sustainability.

The most material risk for Ekornes is associated with

increased costs related to transitioning to low-carbon

footprint products and maintaining compliance with

evolving regulatory standards. The company’s proactive

approach to disclosing Scope 3 emissions is considered an

opportunity to gain valuable insights and enhance supply

chain collaboration. By addressing these risks and

leveraging opportunities, Ekornes aims to strengthen its

long-term climate resilience and maintain competitive

advantage.

(*ESRS E1-ESRS 2 SBM-3-19-(c))

Ability to Adjust or Adapt Strategy and Business

Model:

Ekornes will integrate climate risk actions into its broader

ESG risk management framework. This ensures that all

sustainability-related risks—including climate, social, and

governance factors—are monitored, prioritized, and

addressed within a unified system.

Uncertainties in the Resilience Analysis and Ability to Adapt

Strategy and Business Model

Ekornes acknowledges that the resilience analysis includes

uncertainties related to climate projections, carbon pricing

trajectories, supplier readiness, and market reactions. Key

areas of uncertainty include:

• The timing and scale of regulatory changes related to

emissions and sustainable products, which may vary

across regions.

• The availability and affordability of certified raw

materials, particularly under more ambitious climate

scenarios.

• The pace of consumer demand shift toward sustainable

products, which influences return on investment in

eco-design.

• The severity and frequency of physical climate events,

which remain difficult to predict for specific supply

chain locations.

To manage these uncertainties, Ekornes has focused on

scenario range analysis (1.5°C, 2°C, 4°C) and adopted a

flexible planning approach. Ekornes will continue work on

the analysis and mitigation plan to ensure that the most

at-risk assets and activities to be included in strategic

planning, investment reviews, and procurement policy

updates.

At this moment Ekornes has a moderate capacity to adjust

or adapt its business model over the short-, medium-, and

long-term:

• Asset adaptation: Investments are being made in

upgrading equipment to support energy-efficient and

circular manufacturing. Where necessary, asset renewal

and redesign are considered for product lines that are

not aligned with circularity and low-carbon

requirements.

• Product portfolio shift: Ekornes is actively

transitioning toward more durable, repairable, and

recyclable furniture designs in response to material risk

exposure and evolving customer expectations.

These efforts contribute to Ekornes’ capacity to maintain

long-term resilience, reduce climate exposure, and respond

effectively to regulatory and market shifts. However, the

company recognises that further work is required to

strengthen its preparedness, particularly in areas such as

quantifying financial impacts of physical climate risks,

enhancing supplier-level data on emissions, and integrating

sustainability more deeply into product development and

investment decisions. Ekornes is not excluded from EU

Paris-aligned Benchmarks.

[MDR-P & E1-2] POLICIES RELATED TO

CLIMATE CHANGE MITIGATION AND

ADAPTATION

Ekornes has implemented a set of policies to manage the

material impacts, risks, and opportunities related to

climate change mitigation and adaptation, energy

efficiency and renewable energy. These policies are now

presented and their link to the material IROs for E1 are

described. For details about the policies see Table for

Ekornes policies related to material IROs, page 42-45,

where all policies are listed in accordance with ESRS 2

MDR-P and ESRS E1-2.

(*ESRS E1-2-24)

Ekornes Environmental Policy

Ekornes Environmental Policy outlines how company will

improve our own environmental performance. The general

objective of the policy is to provide clearly defined

commitments related to Ekornes’ environmental

performance and environmental targets. As the company

is now in a target definition process, this policy is also

under review. The policy lists Ekornes’ standpoint and

commitments related to climate change, namely:

• Continuously and transparently improve

environmental performance

• High environmental awareness and competence

throughout the group

• Collaboration with research and development

environments, authorities and other organizations

• Publicly available environmental information

• Ensure environmental management systems are in

place to ensure coordination and follow up of

environmental work

This policy is linked to the negative impact of scope 3

and supply chain emissions, because it emphasizes

environmental performance and collaboration. It is also

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202452 53

linked to the opportunity of data driven scope 3, as the

policy is focused on structuring internal environmental

communication and using environmental management

systems to improve data governance.

Sustainability Position Paper on Climate

The Sustainability Position Paper on Climate outlines

Ekornes’ key climate and energy priorities for 2024-2026.

These include:

• Emissions reductions, through setting targets,

improving energy efficiency and transitioning to

renewable energy sources.

• Sustainable product development through eco-design

and circularity principles to minimize carbon footprint.

• Supplier engagement and collaboration

• Transparency and reporting mean Ekornes reports

climate related performance and risks and engage

stakeholders in sustainability discussions

• Continuous improvement on climate and emissions

reductions is ensured through monitoring and keeping

track of climate-related metrics and investing in

sustainable practices and technologies.

The policy addresses climate change mitigation, energy

efficiency and renewable energy deployment because

these issues are defined as key priorities for the coming

years. The policy is linked to several of the material IROs.

Scope 3 emissions and Supply chain GHG emissions tie in

with the policy as there are explicit goals of engaging with

and collaborating with suppliers and related stakeholders

to reduce emissions. Energy consumption and emissions

ties in with the policy because emissions reductions and

energy efficiency are defined as priorities for the coming

years.

Ekornes Supplier Code of Conduct

The Supplier Code of Conduct outlines Ekornes’

expectations to suppliers and business partners. It touches

on several topics, including environmental concerns and

emissions, which is relevant to E1 Climate change. The

policy demands suppliers and business partners comply

with environmental regulations and laws and suppliers are

encouraged to reduce green-house gas emissions in their

operations and products and take a precautionary

approach to environmental challenges. Additionally,

suppliers are asked to perform a self-assessment which

includes questions and mapping of energy usage.

The policy addresses climate change mitigation, energy

efficiency and renewable energy deployment through

encouraging suppliers to reduce emissions. The policy is

linked to several of the related IROs, namely Scope 3

emissions and supply chain GHG emissions as the policy

states suppliers and business partners are encouraged to

reduce emissions in their operations.

[MDR-T & E1-4] TARGETS RELATED TO

CLIMATE CHANGE MITIGATION AND

ADAPTATION

Ekornes is currently in the process of defining its climate

change and emissions reduction targets. While internal

discussions have taken place, no targets have been

finalized at this stage. A final decision on climate change

and emissions targets is expected by the end of 2025.

[MDR-A & E1-3] ACTIONS AND

RESOURCES IN RELATION TO CLIMATE

CHANGE POLICIES

As Ekornes is still in the process of defining its climate and

emissions reduction targets, there are no new specific

actions related to energy efficiency or emissions

reductions to report for 2024, apart from our ongoing

supplier assessment to improve Scope 3 emissions.

Scope 3 – Assessment of suppliers

Ekornes performs supplier assessments to make sure that

suppliers comply with laws and regulations. This

assessment also makes it easier for Ekornes to choose

appropriate suppliers and affect the work being done with

regards to energy and climate at our suppliers. Based on

this assessment, a short list of high-risk suppliers is

developed, and these go through an in-depth auditing

process. Following the audit, there will be continuous

follow-up with suppliers. If they are unable to demonstrate

compliance towards Ekornes’ Code of Conduct and

following environmental principles, it is planned to

discontinue the relationship with them.

Following the audit, there will be continuous follow-up with

suppliers to ensure that deviations are addressed within

the set time limits. If deviations are not closed, the next

step is to evaluate and escalate whether discontinuing the

relationship is a viable option for both parties. If escalation

does not lead to compliance or progress, Ekornes will

inform the entity using the supplier that the procurement

department cannot vouch for the supplier and recommend

that the cooperation be terminated. However, the decision

to discontinue will also depend on the seriousness of the

deviation, distinguishing between minor and major issues.

The assessment covers environmental issues such as

compliance with environmental laws and regulations,

monitoring systems and responsible people in place to

oversee environmental issues, environmental policy at the

supplier, actions taken to reduce GHG emissions, pollution

and waste, energy usage and efficiency, and finally water

usage.

Supplier assessments are done across Ekornes operations,

in all countries and across brands. This is a continual action,

which happens periodically, approximately every other

year, as it is an exhaustive and time-consuming exercise.

At present, it is not possible to reliably quantify the

achieved or expected GHG emission reductions resulting

from these supplier assessments and follow-up measures.

The variation in supplier operations, geographies, and

reporting maturity creates uncertainty in estimating

measurable climate impact. Ekornes continues to develop

its supplier engagement and data collection to improve

traceability and future estimation capabilities.

The implementation of supplier assessments does not

require material operational or capital expenditure, and

there is no identified risk to the ability to carry out this

activity. It is managed within existing procurement and

sustainability functions as part of standard ESG due

diligence.

[E1-1] TRANSITION PLAN FOR CLIMATE

CHANGE MITIGATION

Ekornes is currently in a target definition process, and

while there have been several discussions internally, a final

decision will be made on GHG emissions reduction targets

during 2025. Ekornes has also performed a resilience

analysis and plan, looking into the resilience of our

operations in light of different climate change scenarios.

Based on our future targets and the resilience plan, our

goal is to develop a transition plan in upcoming years.

(*ESRS E1-1-16-(a)-(b)-(c)-(d)-(e)-(f)-(g)-(h)-(i)-(j))

[E1-5] ENERGY CONSUMPTION AND

MIX

Accounting principles for energy consumption and

energy intensity

Total energy consumption is disclosed in accordance with

ESRS E1-5. Total energy consumption related to own

operations covers the purchased and generated quantities

of electricity and district heating for manufacturing, our

warehouses and distribution centers in Norway, Lithuania,

Thailand and USA, as well as fuel consumption in owned

and leased vehicles. Electricity use from sales offices is also

included.

Energy consumption data is reported by each market per

energy type, except for electricity, where the breakdown is

done based on estimates using country energy mix, as

Policy IRO addressed Climate change topic addressed

Ekornes Environmental Policy

• Negative impact of scope 3 emissions

• Negative impact of supply chain GHG emissions

• Opportunity of data driven scope 3 emissions

• Climate change mitigation

• Energy efciency and

renewable energy deployment

Sustainability Position Paper on

Climate

• Negative impact of scope 3 emissions

• Negative impact of supply chain GHG emissions

• Negative impact of energy consumption and emissions

• Risk of switching to low carbon footprint products

• Climate change mitigation

• Energy efciency and

renewable energy deployment

Ekornes Supplier Code of Conduct

• Negative impact of scope 3 emissions

• Negative impact of supply chain GHG emissions

• Climate change mitigation

• Energy efciency and

renewable energy deployment

Summary of policies related to climate change mitigation and adaptation

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202454 55

Energy consumption and mix

Year 2024

(MWh)

Unit

Fuel consumption from coal and coal products

- MWh

Fuel consumption from crude oil and petroleum products

497,96 MWh

Fuel consumption from natural gas

2 685,97 MWh

Fuel consumption from other fossil sources

- MWh

Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources

29 673,20 MWh

6 Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5) 32 857,13 MWh

Share of fossil sources in total energy consumption (%)

46 %

Consumption from nuclear sources (MWh)

- MWh

Consumption of purchased or acquired electricity, heat, steam, and cooling from nuclear sources

371,36 MWh

Total nuclear energy consumption (MWh) 371,36 MWh

Share of consumption from nuclear sources in total energy consumption (%)

1 %

Fuel consumption for renewable sources, including biomass (also comprising industrial and

municipal waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh)

173,76 MWh

Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable

sources (MWh)

- MWh

The consumption of self-generated non-fuel renewable energy (MWh)

5 874,46 MWh

11 Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10) 6 048,21 MWh

Share of renewable sources in total energy consumption (%) 53 %

Total energy consumption (MWh) (calculated as the sum of lines 6, 7 and 11) 39 276,43 MWh

Energy intensity per net revenue

Total energy consumption from activities in high climate impact sectors per net revenue from

activities in high climate impact sectors (MWh/Million NOK)

10,28

MWh / M

NOK

Production of self-generated non-fuel renewable energy (MWh)

1006,00 MWh

described in detail below. All data calculations are based on

actual numbers, except for sales offices, which have been

estimated.

Fuel consumption from natural gas stems from the

Morganton, Lithuanian and Fetsund facilities.

Fuel consumption from renewable sources stems from

district heating at the Ålesund office.

The sources of electricity consumed has been estimated

according to the country’s energy mix (Norway, USA,

Lithuania and Thailand), based on energy distribution

statistics from the International Energy Agency (www.iea.

org). This provided an overview per country of how much

electricity stems from fossil sources, nuclear sources and

renewable sources. These numbers were then aggregated

to provide Group level electricity consumption per energy

source.

Ekornes self-generates renewable energy at the Tynes,

Aure, Grodås and Ikornnes facilities through offcuts from

the wood production. The generated heat is either

distributed internally to the facility or like at the Ikornnes

facility it is sold to the neighborhood and donated to the

swimming pool in the nearby area. Some of the

self-generated energy is consumed and some of it is either

sold or donated. The consumed self-generated energy is

shown in the table below. Self-generated energy that is

sold is not included in the energy consumption figures, but

listed as a separate line item. The amount of MWh own

generation of renewable energy from wooden heating is

estimated from a calorific value of 4,69 kwh/kg according

to the NS 3165 standard.

Energy use from sales offices and regular offices is

estimated based on energy consumption from other

operations, looking at energy consumption per employee

for manufacturing operations. This data is scaled to

account for sales offices and regular offices consuming less

energy per employee compared to the manufacturing sites.

For 2025 Ekornes will base electricity from sales offices

and regular offices based on actual consumption. The

energy mix of the consumed energy is determined using a

global average energy mix, considering Ekornes has offices

all around the world.

Ekornes energy intensity per net revenue for 2024 was

calculated as the total energy consumption in MWh

divided by the revenue in million NOK. Net revenue entails

revenue from our manufacturing activities and wholesale

and retail trade, which are considered Ekornes’ high

climate impact sectors. The figure for revenue used in the

calculation is as reported on page 126 of the Financial

statements. The revenue used in the calculation is

NOK 3 818 988 000,00. The methodology for calculating

total energy consumption is described in the above

chapter. The energy consumption is either directly related

to manufacturing or sales, or support these objectives.

Consequently, there is no difference in scope when

comparing total energy consumption and total net

revenue.

Energy consumption and energy mix – quantitative data

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202456 57

Emissions within Scope 3 are calculated using a mix of

spend data and activity data with assistance from

third-party suppliers, namely Normative, CEMAsys,

transportation companies and other suppliers. Some

emissions are manually calculated or estimated internally

at Ekornes. All calculation methodologies use appropriate

emissions factors for the given emissions category. For

calculations related to scope 3, all Ekornes locations in

Norway, Thailand, USA and Lithuania have been included.

The following emissions categories are not considered

significant for Ekornes and are therefore not included in

scope 3 calculations: C3 Fuel and energy-related activities,

C8 Upstream leased assets, C10 Processing of sold

products, C11 Use of sold products, C13 Downstream

leased assets, C14 franchises and C15 Investments. C3

Fuel and energy-related activities is not considered

significant because direct fuel combustion (Scope 1) and

purchased electricity use (Scope 2) already capture the

majority of emissions related to energy consumption. The

upstream fuel extraction and refining processes related to

these energy sources, while theoretically relevant for

upstream emissions of purchased fuels and purchased

electricity, are considered minimal in comparison to other

significant Scope 3 categories such as Purchased Goods &

Services and Transportation. Ekornes does not produce or

distribute energy but solely purchases electricity for

operational use. C8 Upstream leased assets and C13

Downstream leased assets are considered insignificant

because the financial range of both of these categories is

small relatively to the other categories. C10 Processing of

sold products is not considered significant because

Ekornes’ products do not require further processing or

transformation before use by the end consumer. C11 Use

of sold products is not considered significant because

Ekornes’ products do not emit CO2 during the customers’

use of them. C14 Franchises is not relevant because

Ekornes does not operate franchises. C15 Investments is

not relevant because Ekornes doesn’t have any financial

investments or client services. No material biogenic

emissions were identified within scope 3.

A higher degree of uncertainty is present in the input data,

especially due to mostly relying on spend data to calculate

GHG emissions. 24,21% of emissions are calculated using

primary data obtained from suppliers or value chain

partners, through EPDs for specific products or based on

activity data. Spend data is the basis for most other

emissions estimates. Activity data has been used for less

than 1% of emissions (0,48%), and GHG emissions from

end of life (see details in accounting principles below) is

calculated based on EPD data. As this emissions category is

substantial, it drives up the fraction of emissions based on

primary data.

C1 Purchased goods and services iinclude upstream

GHG emissions related to production and processing of

purchased raw materials required in the production

process and packaging, third-party production and other

goods and services not captured elsewhere. These GHG

emissions are calculated based on spend data in

Normative.

C2 Capital goods include upstream GHG emissions

related to capital expenditures on capital goods purchased

or acquired by Ekornes. These GHG emissions are

calculated based on spend data in Normative.

C4 Upstream transportation and distribution includes

GHG emissions related to transportation and distribution

that Ekornes pays for. This includes inbound

transportation of raw materials and packaging materials

(including return transportation of reused packaging

materials), third-party distribution and transportation of

third-party production volumes. It also includes GHG

emissions related to transportation and distribution to

distribution centers and retail facilities of sold products in

vehicles not owned or controlled by Ekornes and

emissions related to storage in third-party warehouses

and distribution centers and retail facilities. Emissions in

this category were calculated based on a mix of spend (in

Normative) and emissions reports from transportation

companies.

C5 Waste generated in operations includes downstream

GHG emissions related to waste treatment of waste from

Ekornes manufacturing sites. Waste was reported in kilos

divided into waste fractions and treatment methods

(recycled, energy recovered, landfilled). Emissions were

calculated based on relevant emissions factors through

CEMAsys.

C6 Business traveling includes GHG emissions related to

business-related travel activities of Ekornes’ employees

paid for by Ekornes, including third-party transportation

services, reimbursed transport in employees own vehicles

(mileage allowance) and reimbursed accommodation.

[E1-6] GROSS SCOPES 1, 2, 3 AND TOTAL

GHG EMISSIONS

Accounting principles for GHG emissions

GHG emissions are calculated based on either direct

activity data from own operations or suppliers, or estimated

based spend data, statistics or similar activity data. The

sources of the emissions factors used in the GHG calculations

can be found in the Table Emission factors applied to scope

1-3 GHG emissions at the end of this chapter.

There is high data uncertainty related to GHG emissions,

as the estimates are based on different data types. In

particular, converting currencies to harmonize spend data

for scope 3 emissions introduces discrepancies.

Additionally, various adjustments made during the process

may not accurately reflect actual emissions. The manual

distribution of emissions across different scopes and

categories further adds to the uncertainty.

Scope 1

Scope 1 emissions refer to the direct emissions from

sources that are owned or controlled by an organization.

All Ekornes production facilities are included in Scope 1.

For Thailand there are no Scope 1 emissions. No Scope 1

emissions are registered for sales offices as there is no

transport registered as scope 1 emissions and no

stationary combustion.

Scope 1 emissions are calculated with support of an

external supplier, CEMAsys, which receive data from

Ekornes and align calculations with ESRS requirements.

Scope 1 emissions are calculated as energy consumption,

fuel usage and combustion usage multiplied by relevant

emissions factors. See Table Emission factors applied to

scope 1-3 GHG emissions at the end of this chapter for

details on sources for the emissions factors related to

Scope 1.

• Fuel for transportation: Within the category of fuel for

transportation the emissions are related to fuel for own

trucks and cars for internal transportation between the

factories in Norway. The other factories do not have

such transportation internally. These numbers are

based on actual volume usage of diesel and petrol.

• Stationary combustion: The emissions related to

stationary combustion is related to the burning of

Natural gas at the US and Lithuania facilities, oil at the

Ikornnes facility and propane at the Fetsund facility.

These numbers are based on actual volume usage of

natural gas, oil and propane.

• Chemical process: Ekornes’ scope 1 emissions

additionally reflect emissions from polyurethane

production. Emissions from this production process is

based on actual emissions data from the manufacturing

facility based on volume produced and the ingoing CO2

in the production process.

Biogenic emissions not included in Scope 1 include CO2

emissions from the combustion of biomass, biofuels and

biogas at our manufacturing sites or in company vehicles.

For Ekornes biogenic emissions arise from transportation

fuel combustion (diesel) and burning of wood chips for

energy recovery. This was calculated based on activity data.

Scope 2

Scope 2 emissions cover emissions resulting from

electricity consumption in all Ekornes locations, including

the manufacturing facilities in Norway (including the

showroom Ekornes-bua), USA, Lithuania and Thailand, as

well as district heating to the Showroom facility in

Aalesund (Ekornes-bua). Scope 2 emissions are calculated

with support of an external supplier, CEMAsys, which

receive data from Ekornes about the kWh of electricity and

district heating and use appropriate emission factors to

calculate GHG emissions and further align calculations

with ESRS requirements . The Scope 2 emissions data are

calculated based on actual input kwh numbers. See Table

Emission factors applied to scope 1-3 GHG emissions at

the end of this chapter for details on emission factor

sources for Scope 2.

For the location-based calculation, emission factors used

are based on statistics from the International Energy

Agency. These emission factors are updated annually to

keep up with changes in energy mix in individual countries.

For the market-based calculation, default emission factors

related to the residual mix have been used. Ekornes has not

bought Guarantees of Origin nor RECs in 2024, and so the

emission factors represent the untracked or unclaimed

energy. For Thailand, the location-based emission factors

were applied in the market-based calculations, as there

was no emission factor available for residual mix in these

regions.

No material biogenic emissions were identified within

scope 2.

Scope 3

Scope 3 emissions cover indirect emissions from Ekornes’

value chain, both upstream and downstream, including

emissions associated with the 8 categories listed below.

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202458 59

Meals during travel are not included. The GHG emissions

are calculated based on travel agency reports for flight

travel, internal calculations for flights, and spend data for

the remaining activities through Normative.

C7 Employee commuting includes GHG emissions related

to Ekornes’ employees’ commute from home to work and

from work to home. This has been estimated based on

average commutes in km (country statistics) for Norway,

Thailand, Lithuania and USA and emissions factors showing

CO2eq per km travelled. The emission factor represents

unknown fuel and average sized car. The estimated GHG

emissions does not include employees at Ekornes’ sales

offices, as they usually work from customer sites and

significant emissions for this employee group is included in

C6 Business traveling. The estimate covers employee

commuting emissions from 89% of Ekornes employees, the

total amount of employees that work in our manufacturing

operations, either directly or as administration and

management. When reporting for 2025, the plan is to

perform a survey to map commuting mode of

transportation and distance from home to work location. In

addition to emissions from fuel used during commutes

(Tank-To-Wheel), the emissions linked to production of fuel

volumes have been estimated (Well-To-Tank). An emission

factor for unknown fuel and average sized car has been

used to calculate these emissions. These emissions were

estimated and calculated outside of Normative, and then

added to the Normative results to provide a total overview.

C9 Downstream transportation includes GHG emissions

related to transportation and distribution of sold products

from Ekornes facilities to retailers that Ekornes does not

pay for. Ekornes pays for the transportation of 98,04% of

its products, and retailers pay for the remaining 1,96%

(evaluated based on value of sold products). The emissions

related to transportation of sold products that Ekornes

does not pay for has been based on the emissions for the

transportation that Ekornes does pay for, and scaled to the

value of sold products where retailers pay for

transportation. Exact data for value of sold products is

available for Ekornes and Svane, with detailed breakdown

between sold products where transportation is paid by

Ekornes and its retailers. The value of sold products is also

available for IMG, but not the breakdown between who

pays for transportation. The distribution for Ekornes and

Svane has been used to estimate emissions from

transportation IMG does not pay for. These emissions

were estimated and calculated outside of Normative, and

then added to the Normative results to provide a total

overview.

C12 End-of-life treatment of sold products iincludes

GHG emissions related to waste treatment at the end of

life of Ekornes’ furniture and its packaging. The GHG

emissions are calculated based on data from

Environmental product declarations (EPD) calculated by

sold products. One product is considered as representative

of all products in each key product group (power recliners,

recliners, dining chairs, sofas). Svane does not currently

have EPDs for beds. The end of life emissions for beds was

estimated based on EPD data for sofas. These emissions

were estimated and calculated outside of Normative, and

then added to the Normative results to provide a total

overview.

IMG Sales companies and Ekornes China

GHG emissions for IMG sales companies and Ekornes

China did not have detailed data available. Emissions tied

to these operations were calculated based on relevant

spend and compared to GHG emissions from similar

suppliers where detailed data was available. Here the

assumption is that the IMG sales companies have similar

emissions patterns as suppliers that are close in spend

amount. These emissions were estimated and calculated

outside of Normative, and then added to the Normative

results to provide a total overview. The emissions in

question were linked to emission category C1, C2, C6

and C9.

Several measures have been implemented to avoid double

counting. Spend from sales companies and production

facilities have been distributed across relevant categories.

Spend items related to suppliers that provide readily

calculated GHG emissions have been removed from this

spend overview and added manually to Normative. There

have been several internal audits and quality checks to

ensure appropriate distribution across relevant emissions

categories.

Total GHG emissions

Total location-based GHG emissions are calculated

according to ESRS, by adding Gross Scope 1, Gross Scope

2 (location-based) and Gross Scope 3 Total together.

Market-based GHG emissions are calculated according

to ESRS, by adding Gross Scope 1, Gross Scope 2

(market-based) and Gross Scope 3 together.

Retrospective Milestones and target years

Base

year

2024

Comparative 2024

2024/

2023

2025 2030 (2050)

Annual %

target /

Base year

Scope 1 GHG Emissions

Gross Scope 1 GHG emissions

(tCO2eq)

830

tCO2eq

N/A

830

tCO2eq

N/A N/A N/A N/A N/A

Percentage of Scope 1 GHG emissions

from regulated emission trading

schemes (%)

0 % N/A 0 % N/A N/A N/A N/A N/A

Scope 2 GHG Emissions

Gross location-based Scope 2 GHG

emissions (tCO2eq)

1 593 N/A 1 593 N/A N/A N/A N/A N/A

Gross market-based Scope 2 GHG

emissions (tCO2eq)

13 965 N/A 13 965 N/A N/A N/A N/A N/A

Signicant scope 3 GHG emissions

Total Gross indirect (Scope 3) GHG

emissions (tCO2eq)

87 595

tCO2eq

N/A

87 595

tCO2eq

N/A N/A N/A N/A N/A

1 Purchased goods and services

65 676

tCO2eq

N/A

65 676

tCO2eq

N/A N/A N/A N/A N/A

2 Capital goods

684

tCO2eq

N/A

684

tCO2eq

N/A N/A N/A N/A N/A

3 Fuel and energy-related Activities

(not included in Scope1 or Scope 2)

- N/A - N/A N/A N/A N/A N/A

4 Upstream transportation and

distribution

13 490

tCO2eq

N/A

13 490

tCO2eq

N/A N/A N/A N/A N/A

5 Waste generated in operations

289

tCO2eq

N/A

289

tCO2eq

N/A N/A N/A N/A N/A

6 Business traveling

945

tCO2eq

N/A

945

tCO2eq

N/A N/A N/A N/A N/A

7 Employee commuting

6 178

tCO2eq

N/A

6 178

tCO2eq

N/A N/A N/A N/A N/A

8 Upstream leased assets - N/A - N/A N/A N/A N/A N/A

9 Downstream transportation

242

tCO2eq

N/A

242

tCO2eq

N/A N/A N/A N/A N/A

10 Processing of sold products - N/A - N/A N/A N/A N/A N/A

11 Use of sold products - N/A - N/A N/A N/A N/A N/A

12 End-of-life treatment of sold

products

tCO2eq

N/A

tCO2eq

N/A N/A N/A N/A N/A

13 Downstream leased assets - N/A - N/A N/A N/A N/A N/A

14 Franchises - N/A - N/A N/A N/A N/A N/A

15 Investments - N/A - N/A N/A N/A N/A N/A

Total GHG emissions

Total GHG emissions (location-based)

(tCO2eq)

90 017

tCO2eq

N/A

90 017

tCO2eq

N/A N/A N/A N/A N/A

Total GHG emissions (market-based)

(tCO2eq)

102 390

tCO2eq

N/A

102 390

tCO2eq

N/A N/A N/A N/A N/A

Biogenic emissions:

Biogenic emissions not included in

Scope 1 GHG emissions

tCO2eq 1 138

Gross Scopes 1, 2, 3 and Total GHG Emissions

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202460 61

Accounting principles for GHG Intensity

GHG intensity based on net revenue for 2024 was

calculated as the total GHG emissions in tCO2eq divided

by the revenue in million NOK. GHG int<ensity is

calculated using both the market-based and location-based

total GHG emissions. As with energy intensity, net revenue

entails revenue from our manufacturing activities and

wholesale and retail trade, which are considered Ekornes’

high climate impact sectors. The figure for revenue used in

the calculation is as reported on page 126 of the Financial

statements. The revenue used in the calculation is

NOK 3 818 988 000,00. The methodology for total

GHG emissions is described above.

Total GHG Emissions location based per net revenue (tCO2eq / Million NOK) tCO2eq/m NOK 23,57

Total GHG Emissions market based per net revenue (tCO2eq / Million NOK) tCO2eq/m NOK 26,81

GHG Intensity based on net revenue

Emission factors applied to scope 1-3 GHG emissions

Activity data Source of emission factor applied in calculations

Scope 1

• DEFRA, UK Government GHG Conversion Factors for Company Reporting (2024)

• Norwegian Environment Agency (Miljødirektoratet, Nasjonale standardfaktorer) (2024)

• EPA Environmental Protection Agency, Emissions Factors for Greenhouse Gas inventories (2024)

Scope 2

• IEA, International Energy Agency (2024)

• AIB, Association of issuing bodies (2024)

• Green-e, unweighted average for all 27 eGrid subregions, calculated by CEMAsys (2024)

• Energy Statistics Data Browser (2024)

• Fjernkontrollen (2024)

• DEFRA, UK Government GHG Conversion Factors for Company Reporting (2024)

• Ecoinvent 3.11 (2024)

• OFV, Opplysningsrådet for veitrakken (2024)

• Norsk Elbilforening (2024)

Scope 3

C1 Purchased goods and services

• Normative: Exiobase (3.8.2) (2019)

• Normative: DESNZ, UK Department for Energy Security and Net Zero (2024)

C2 Capital goods

• Normative: Exiobase (3.8.2) (2019)

• Normative: DESNZ, UK Department for Energy Security and Net Zero (2024)

C4 Upstream transportation and distribution

• Normative: Exiobase (3.8.2) (2019)

• Normative: DESNZ, UK Department for Energy Security and Net Zero (2024)

• Transportation companies: Eco-transit

• Transportation companies: EU Small Emitters Tool

• Transportation companies: EcoTransIT World

• Transportation companies: Database HBEFA 3.2 (Handbook Emission Factors for Road Transport)

• Transportation companies: SCAC code-based emissions factors (annually updated, Swedish Clean Air &

Climate Research Program)

C5 Waste generated in operations

• CEMAsys: DEFRA (2024)

• CEMAsys: Ecoinvent 3.11

C6 Business travels

• Normative: Exiobase (3.8.2) (2019)

• Normative: DESNZ, UK Department for Energy Security and Net Zero (2024)

• Berg-Hansen: ICAO, International Civil Aviation Organization Carbon Emissions Calculator

• Berg-Hansen: GreenView Hotel Footprinting Tool

• Ayvens Leasing Company: Emisoft

Ayvens Leasing Company: Emisoft C7 Employee commuting

• Internal estimates: DEFRA (2024)

C9 Downstream transportation:

• Normative: Exiobase (3.8.2) (2019)

• Normative: DESNZ, UK Department for Energy Security and Net Zero (2024)

• Transportation companies: GHG emissions established according to standard ISO 14083:2023

(Greenhouse gases—Quantication and reporting of greenhouse gas emissions—Freight transport)

• Transportation companies: For two of the transportation companies the emissions factor sources were

not disclosed

• Transportation companies: EU Small Emitters Tool

• Transportation companies: EcoTransIT World

• Transportation companies: Database HBEFA 3.2 (Handbook Emission Factors for Road Transport)

• Transportation companies: SCAC code-based emissions factors (annually updated, Swedish Clean Air &

Climate Research Program)

C12 End-of-life treatment of sold products (based on EPD information)

• Ecoinvent 3.6 (2019)

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202462 63

Definitions

Taxonomy-eligible economic activity means an economic

activity that is described in the delegated acts supplementing

the Taxonomy Regulation, irrespective of whether that

economic activity meets any or all the technical screening

criteria laid down in those delegated acts.

An economic activity is Taxonomy-aligned where it

complies An economic activity is Taxonomy-aligned where

it complies with the technical screening criteria and it is

carried out in compliance with the minimum safeguards

regarding human and consumer rights, anti-corruption and

bribery, taxation, and fair competition. To meet the technical

screening criteria, an economic activity contributes

substantially to one or more environmental objectives

while not doing significant harm to any of the other

environmental objectives

Taxonomy-non-eligible economic activity means any

economic activity that is not described in the delegated

acts supplementing the Taxonomy Regulation.

Taxonomy-eligible and Taxonomy-aligned

economic activities

The Ekornes Group have examined all economic activities

carried out by the group to see which of these are eligible

and also aligned in accordance with the Taxonomy

Regulation.

Appendix

Page 21

Revenues Opex Capex

100%

1% 1%

98%

10%

88%

Aligned

Eligible, not aligned

Non-eligible

Appendix

Page 21

Revenues Opex Capex

100%

1% 1%

98%

10%

88%

Aligned

Eligible, not aligned

Non-eligible

The table below includes the activities that qualify as

eligible. Information on the extent to which the economic

activities are also aligned is assessed in each activities

section below and in the KPI templates presented in the

chapter “KPIs and accounting policies”.

CCM 4.24 Production of heat/cool from bioenergy

In the factory at Ikornnes Ekornes has a facility producing

heat using wood pellets. In 2023 and 2024 Ekornes

incurred CapEx for a new boiler related to this facility. The

wood pellets are purchased from an external vendor. This

vendor only source forest biomass from Norway but have

no records of where their vendors source the wood.

Therefore, the company is not able to assess if the activity

complies with the substantial contribution criteria and has

assessed the activity as non-aligned.

Additionally, the factory has a facility using woodchips from

the production that produce heat. In 2024 the facility has

been upgraded incurring CapEx. The factory also delivers

heating to a housing area close to the factory which

generates revenue. The woodchips used from the

production is off cuttings from wood sourced from Europe

(Slovakia and Germany) and the greenhouse gas emissions

savings are at least 80% in relation to the GHG emission

saving methodology. However, the activity does not comply

with the DNSH-criteria for pollution. Based on this the

activity is non-aligned.

CE 5.2 Sale of spare parts

The group delivers replacement parts/hardware for

Stressless models produced within the past 10-15 years.

The packaging of the products follows the same process as

for all Stressless products and the packaging is not made of

at least 65% recycled material. Based on this the activity is

non-aligned.

CCM 6.5 Transport by motorbikes, passenger cars

and light commercial vehicles

The Group has several leasing agreements for vehicles in

category N1. Nine new agreements were signed in 2024

and are classified as right-of-use assets according to IFRS

16, meaning that they are a part of CapEx in 2024.

Of 9 new agreements, 2 are assessed as low- and

zero-emission light duty vehicles. Based on information

from the vendors the vehicles are aligned with the

DNSH-criteria for circular economy and pollution

prevention. Additionally, based on our risk assessments

the vehicles comply with the criteria set out for climate

adaption. Based on this 2 out of 9 new agreements are

considered aligned.

CCM 6.6 Freight transport services by road

Most of the freight transport is purchased by third parties

but the Group also owns some vehicles. In 2024 two new

leasing agreements was signed, one in the US and one in

Norway. The truck in the US is non-aligned with the

substantial contribution criteria as it is not a zero-emission

heavy-duty vehicle.

The truck in Norway is assessed as aligned. It has zero

direct CO2 emissions and comply with the substantial

contribution criteria. It is also aligned with the

DNSH-criteria for circular economy and pollution

prevention, based on information from the vendors.

Additionally, based on our risk assessments the truck

complies with the criteria set out for climate adaption.

CCM 7.2 Renovation of existing buildings

In 2024 the Group has performed three renovation

projects in its buildings in Norway incurring CapEx. The

energy performance has not been evaluated before or

EKORNES – EU TAXONOMY REPORT 2024

The EU taxonomy is a cornerstone of the EU’s sustainable

finance framework and an important market transparency

tool. The taxonomy is a classification system that defines

criteria for economic activities that are aligned with a net

zero trajectory by 2050 and the broader environmental

goals other than climate.

On January 1, 2023, the new Sustainable Finance Act

(Lov om offentliggjøring av bærekraftsinformasjon i

finanssektoren mv.) implementing the EU Taxonomy

Regulation into Norwegian legislation came into effect.

Following this the Ekornes Group is required to report

on the EU Taxonomy and the reporting is performed as

a consolidated group.

The report is prepared in accordance with the Taxonomy

Regulation EU (2020/852). The technical screening

criteria for environmental goals 3-6 was not effectuated

for the financial year 2023 and is reported for the first time

for the financial year 2024.

When assessing the activities an overall initial assessment

was prepared on group level including all activities from

the EU Taxonomy for the six environmental objectives. The

list of activities was distributed to relevant stakeholders

across the group for input. All input is documented with

reference to underlying documentation to ensure accuracy

and to avoid any double counting when allocating to the

key performance indicators.

In the following section, we present the share of the Group

turnover, capital expenditure (CapEx) and operating

expenditure (OpEx) for the reporting period 2024, which

are related to non-eligible, eligible but non-aligned (eligible)

and eligible and aligned (aligned) activities, related to the

environmental objectives.

As the delegated acts are limited to specific activities, a

large part of the Ekornes Groups activities is Taxonomy-

non-eligible. The reason is that the main activities in the

Ekornes Group is not yet included in the EU Taxonomy.

It is expected to be considered in future revisions of the

delegated acts.

For details and templates, see the chapter “KPI’s and accounting policies” below.

Sector ID Activity

Energy CCM 4.24 Production of heat/cool from bioenergy

Services CE 5.2 Sale of spare parts

Transport CCM 6.5 Transport by motorbikes, passenger cars and light commercial vehicles

Transport CCM 6.6 Freight transport services by road

Construction and real estate CCM 7.2 Renovation of existing buildings

Construction and real estate CCM 7.3 Installation, maintenance, and repair of energy efciency equipment

Construction and real estate CCM 7.5

Installation, maintenance and repair of instruments and devices for

measuring, regulation and controlling energy performance of buildings

Construction and real estate CCM 7.6 Installation, maintenance and repair of renewable energy technologies

64 65

after the renovation and company is not able to assess the

substantial contribution criteria. Based on this Ekornes has

classified the activity as non-aligned.

CCM 7.3 Installation, maintenance, and repair of

energy efficiency equipment

The Group has incurred CapEx and OpEx, on several of its

locations, related to installation and maintenance of

heating, ventilation and air conditioning systems. Some of

them are defined as one of the individual measures

specified in the substantial contribution criteria. For these

activities Ekornes have assessed that they are aligned with

the DNSH-criteria for climate adaption through our

climate assessment. Part of the activity is aligned.

CCM 7.5 Installation, maintenance and repair of

instruments and devices for measuring, regulation

and controlling energy performance of buildings

In 2024 façade elements for sun shading has been installed

in the factory building in Ikornnes. The cost is capitalized.

The investment has a solar shading function which is one of

the individual measures specified in the substantial

contribution criteria. The activity also complies with the

DNSH-criteria set out for climate adaption based on our

climate assessment. Based on this the activity is assessed

as aligned.

CCM 7.6 Installation, maintenance and repair of

renewable energy technologies

At the factory site in Fetsund three new heatpumps have

been installed and the cost is capitalized. A major

maintenance project of the seawater heating facility in

Sykkylven has also been completed and the cost

recognized as OpEx. Both activities are listed as one of the

individual measures in the substantial contribution criteria,

installation and maintenance of heat pumps. Further based

on our climate assessments the activities comply with the

DNSH-criteria for climate adaption. Based on this the

activities are assessed as aligned.

Minimum safeguards

The minimum safeguards (MS) are built on four pillars:

human rights, taxation, corruption, and fair competition.

The MS include all procedures implemented to ensure that

economic activities are carried out in alignment with:

• OECD Guidelines for Multinational Enterprises (OECD

MNE Guidelines)

• UN Guiding Principles on Business and Human Rights

(UNGPs), including the principles and rights set out in

the eight fundamental conventions identified in the

Declaration of the International Labor Organization on

Fundamental Principles and Rights at Work

• The International Bill of Human Rights

Ekornes’ accountability for respecting human rights,

taxation, fair competition and avoiding corruption extends

throughout the value chain.

Ekornes follows a two-dimensional assessment approach

to assess compliance with MS. On the one hand, adequate

processes have been implemented to prevent negative

impacts (procedural dimension). On the other hand,

outcomes are monitored to check whether the processes

are effective (outcome dimension).

Ekornes Group understands that the behavior of all

employees and other actors along the value chain plays a

central role in complying with MS. Ekornes takes this

responsibility seriously by following the ethical business

conduct principles for daily business activities, which are

manifested in the Group’s Code of Conduct covering all

four MS topics. Moreover, the Ekornes Group has been a

signatory of the United Nations Global Compact since

2009 and is committed to integrating the 10 principles of

ethical business conduct into its business strategy and

operations.

Regarding the supply chain and business relationships,

Ekornes expects the same ethical business conduct from its

suppliers as from its own entities. Therefore, the MS

requirements are an integral part of business contracts and

the Supplier’s Code of Conduct. The Supplier’s Code of

Conduct aims to promote and enforce practices relating to

human rights, ethics, and the protection of the

environment and safety. Ekornes expects each supplier to

respect the Group’s ethical principles and ensure that the

Code of Conduct is followed by all employees and

subcontractors. Moreover, supplier selection and

evaluation processes include human rights,

anti-corruption, and anti-bribery due diligence.

Human rights (Including labor and consumer rights)

The Final Report on Minimum Safeguards from the

Platform on Sustainable Finance notes that several

countries, including Norway, have adopted mandatory

human rights and environmental due diligence legislation

at a national level. The Norwegian Transparency Act, which

entered into force in July 2022, promotes enterprises’

respect for fundamental human rights and decent working

conditions. This law ensures public access to information

about companies’ impact on human rights and decent

working conditions. Ekornes has complied with legislative

requirements and considers itself aligned with the

Minimum Safeguards of the EU Taxonomy. Information

about Ekornes’ human rights work and the Transparency

Act is available on the company website.

Based on UNGPs and the OECD MNE Guidelines,

including the OECD Due Diligence Guidance for

Responsible Business Conduct, Ekornes has implemented

a six-step approach to identify, prevent, and, if necessary,

mitigate and remediate any actual and potential negative

impacts on human rights.

Ekornes’ human rights statement, which describes its

strategy, high-impact areas, and the processes and

measures taken to prevent negative human rights impacts,

is publicly available on the website. The strategy for

combating human rights violations is based on a thorough

impact analysis, which takes into account geographical and

sectoral specifications. The impact analysis includes

business units, subsidiaries, business partners, and the

value chain. Human rights impacts were prioritized, and

processes were adjusted or implemented to tackle

significant risks. Measures to prevent and mitigate actual

and potential adverse human rights impacts were

identified and implemented. The processes ensure that

remedial action is taken promptly in the event of an acute

human rights violation, and if necessary, compensation is

provided to affected individuals. The effectiveness of these

processes is monitored through internal reviews regularly.

Any person who feels that their human rights have been

violated by the activities of Ekornes internally can contact

the whistleblower channel. Any reaction to the business or

an actor in the value chain can be reported through the

Transparency Act channel. This is monitored by an internal

team of supply chain experts, overseeing both internal and

external processes of the value chain.

In 2024, there were no complaints or breaches related to

human rights internally. Moving forward, Ekornes will

continue communicating and raising awareness about the

internal whistleblowing channel. Additionally, Ekornes

conducted a self-assessment for all suppliers in the value

chain. Following the previous year’s self-assessment,

Ekornes is conducting 8 supplier audits. Furthermore,

Ekornes has initiated actions toward a high-risk category

(transport) and has introduced new category-specific

self-assessments for suppliers globally.

Corruption and Bribery

Ekornes has zero tolerance for corruption and bribery. The

control mechanisms to prevent corruption and bribery in

the business units and value chains are based on a risk

assessment, including geographical and sectoral criteria.

Anti-corruption is an integral part of the Code of Conduct

and internal control.

Ekornes has an Anti-Corruption Policy that strictly

prohibits all forms of corruption, bribery, and unethical

influence. Neither Ekornes nor its employees shall engage

in ‘smearing’ or any similar practices to gain special

advantages or privileged access.

In the financial year 2024, no relevant court cases have

been identified in relation to corruption and bribery.

Taxation

In 2024, there were no breaches related to taxation.

Ekornes has a global presence and must comply with

various taxation systems worldwide. In line with its ethical

business values, tax governance and tax compliance are key

elements of oversight. Ekornes is committed to complying

with all relevant tax laws and regulations.

Ekornes adheres to its established Global Tax Strategy and

Transfer Pricing Principles. Comprehensive details are

outlined in the Financial Handbook to ensure compliance

with tax laws.

Fair competition

Ekornes carries out its activities in a manner consistent

with all applicable competition laws and regulations, taking

into consideration the competition laws of all jurisdictions

in which its activities might have anti-competitive effects.

Through the Code of Conduct, Ekornes pursues the goal of

achieving and maintaining lively competition in a free

market environment for the entire Ekornes Group,

establishing a corporate culture of fair competition.

In 2024, there were no breaches related to fair

competition.

KPI’s and accounting policies

The key performance indicators (“KPIs”) include the

turnover KPI, the CapEx KPI and the OpEx KPI. For

presenting the Taxonomy KPIs, Ekornes uses the

mandatory templates provided in the delegated acts.

The Groups consolidated financial statements have been

prepared in accordance with International Financial

Reporting Standards (IFRS), refer to detailed accounting

principles in “Notes to the consolidated financial

statements”.

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202466 67

Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024

Comparative gures for activity CE 5.2 is not reported as 2024 is the rst year of reporting for this activities.

Biodiversity (16)

Circular Economy (15)

Pollution (14)

Water (13)

Climate Change Adaptation (12)

Climate Change Mitigation (11)

Biodiversity (10)

Circular Economy (9)

Pollution (8)

Water (7)

Climate Change Adaptation (6)

Climate Change Mitigation (5)

Financial year 2024 Year Substantial contribution criteria DNSH criteria (“Does Not Signicantly Harm”)(8)

Economic Activities (1) Code(2) Turnover

(3)

Proportion

of Turnover, year

2023

(4)

Minimum

Safeguards

(17)

Proportion of

Taxonomy-

aligned (A.1.)

or -eligible (A.2.)

turnover, year

2023 (18)

Category

enabling

activity (19)

Category

transitional

activity (20)

Text MNOK %

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) - 0 % 0 % 0 % 0 % 0 % 0 % 0 % Y Y Y Y Y Y Y 0 %

Of which enabling - 0 % 0 % 0 % 0 % 0 % 0 % 0 % Y Y Y Y Y Y Y 0 % E

Of which transitional - 0 % 0 % 0 % 0 % 0 % 0 % 0 % Y Y Y Y Y Y Y 0 % T

A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)(7)

EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL

Production of heat/cool from bioenergy CCM 4.24 0 % EL N/EL N/EL N/EL N/EL N/EL

Sale of spare parts CE 5.2 10 0 % N/EL N/EL N/EL N/EL EL N/EL 0 %

Turnover of Taxonomy-eligible but not environmentally sustainable

activities (not Taxonomy-aligned activities) (A.2)

10 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 %

A. Turnover of Taxonomy-eligible activities(A.1+A.2) 10 0 %

0 % 0 % 0 % 0 % 0 % 0 % 0 %

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Turnover of Taxonomy-non-eligible activities 3 809 100 %

TOTAL 3 819 100%

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202468 69

Financial year 2024 Year Substantial contribution criteria DNSH criteria (“Does Not Signicantly Harm”)(22)

Economic Activities (1) Code(2) OpEx (3) Proportion of

OpEx, year 2023

(4)

Minimum

Safeguards (17)

Proportion of

Taxonomy-

aligned (A.1.)

or -eligible (A.2.)

turnover, year

2023 (18)

Category

enabling

activity (19)

Category

transitional

activity (20)

Text MNOK %

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

Installation, maintenance and repair of energy

efciency equipment

CCM 7.3 0 0 % Y Y

N/EL N/EL N/EL N/EL

Y Y

Y Y Y Y Y

0 % E

Installation, maintenance and repair of

renewable energy technologies

CCM 7.6 1 1 %

Y Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0 % E

OpEx of environmentally sustainable activities

(Taxonomy-aligned) (A.1)

1 1 % 1 % 0 % 0 % 0 % 0 % 0 % Y Y Y Y Y Y Y 0 %

Of which enabling

1 1 %

1 % 0 % 0 % 0 % 0 % 0 % Y Y Y Y Y Y Y 0 % E

Of which transitional

- 0 % %

0 % 0 % 0 % 0 % 0 % Y Y Y Y Y Y Y

0 % T

A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)(22)

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

Installation, maintenance and repair of energy

efciency equipment

CCM 7.3

1 1 %

EL N/EL N/EL N/EL N/EL N/EL

1 %

OpEx of Taxonomy-eligible but not environmentally sustainable activities

(not Taxonomy-aligned activities) (A.2)

1 1 %

1 % 0 % 0 % 0 % 0 % 0 %

1 %

A. OpEx of Taxonomy eligible activities(A.1+A.2) 2 2 % 2 % 0 % 0 % 0 % 0 % 0 %

1 %

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

OpEx of Taxonomy-non-eligible activities 85 98%

TOTAL 86 100%

The comparative information for 2023 is corrected to not include activities CCM 6.2, CCM 6.5 and CCM 8.2 as they did not fall under the EU Taxonomy OpEx denition.

Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024

Biodiversity (16)

Circular Economy (15)

Pollution (14)

Water (13)

Climate Change Adaptation (12)

Climate Change Mitigation (11)

Biodiversity (10)

Circular Economy (9)

Pollution (8)

Water (7)

Climate Change Adaptation (6)

Climate Change Mitigation (5)

70 71

Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024

Financial year 2024 Year Substantial contribution criteria DNSH criteria (“Does Not Signicantly Harm”)(22)

Economic Activities (1) Code(2) CapEx (3) Proportion of

CapEx, year 2023

(4)

Minimum

Safeguards (17)

Proportion of

Taxonomy-

aligned (A.1.)

or -eligible (A.2.)

turnover, year

2023 (18)

Category

enabling

activity (19)

Category

transitional

activity (20)

Text MNOK %

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

Transport by motorbikes, passenger cars and light

commercial vehicles

CCM 6.5 1 1 % Y Y

N/EL N/EL N/EL N/EL

Y Y

Y 0 %

Freight transport services by road CCM 6.6 0 0 % Y Y

N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y

0 %

Installation, maintenance and repair of energy efciency

equipment

CCM 7.3 0 0 % Y Y

N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y

0 % E

Installation, maintenance and repair of instruments and

devices for measuring, regulation and controlling energy

performance of buildings

CCM 7.5 0 0 % Y Y

N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y

0 % E

Installation, maintenance and repair of renewable energy

technologies

CCM 7.6 0 0 % Y Y

N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y

0 % E

CapEx of environmentally sustainable activities

(Taxonomy-aligned) (A.1)

2 2 % 2 % 0 % 0 % 0 % 0 % 0 % Y Y Y Y Y Y Y 0 %

Of which enabling 2 2 % 2 %

0 % 0 % 0 % 0 % 0 % Y Y Y Y Y Y Y 0 % E

Of which transitional - 0 % %

Y Y Y Y Y Y Y 0 % T

A2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)(15)

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

Production of heat/cool from bioenergy CCM 4.24 3 4 % EL

N/EL N/EL N/EL N/EL N/EL

0 %

Transport by motorbikes, passenger cars and light

commercial vehicles

CCM 6.5 3 3 % EL

N/EL N/EL N/EL N/EL N/EL

5 %

Freight transport services by road CCM 6.6 1 1 % EL

N/EL N/EL N/EL N/EL N/EL

1 %

Renovation of existing buildings CCM 7.2 1 1 % EL

N/EL N/EL N/EL N/EL N/EL

0 %

Installation, maintenance and repair of energy efciency

equipment

CCM 7.3 1 1 % EL

N/EL N/EL N/EL N/EL N/EL

0 %

Acquisition and ownership of buildings CCM 7.7 - 0 % EL

N/EL N/EL N/EL N/EL N/EL

26 %

CapEx of Taxonomy-eligible but not environmentally sustainable activities

(not Taxonomy-aligned activities) (A.2)

9 11 % 11 % 0 % 0 % 0 % 0 % 0 % 34 %

A. CapEx of Taxonomy-eligible activities(A.1+A.2) 11 12 % 12 % 0 % 0 % 0 % 0 % 0 %

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

CapEx of Taxonomy-non-eligible activities 77 88 %

TOTAL 88 100%

Biodiversity (16)

Circular Economy (15)

Pollution (14)

Water (13)

Climate Change Adaptation (12)

Climate Change Mitigation (11)

Biodiversity (10)

Circular Economy (9)

Pollution (8)

Water (7)

Climate Change Adaptation (6)

Climate Change Mitigation (5)

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202472 73

Nuclear energy related activities

The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative

electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle

The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to

produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen

production, as well as their safety upgrades, using best available technologies.

The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce

electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen

production from nuclear energy, as well as their safety upgrade

Fossil gas related activities

The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that

produce electricity using fossil gaseous fuels

The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool

and power generation facilities using fossil gaseous fuels.

The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation

facilities that produce heat/cool using fossil gaseous fuels.

TURNOVER KPI

Denition

The proportion of Taxonomy-aligned economic activities

in the total turnover has been calculated as the part of

net turnover derived from products and services associ-

ated with Taxonomy-aligned economic activities (nume-

rator) divided by the net turnover (denominator), in each

case for the nancial year from 1 January 2024 to 31

December 2024.

The denominator of the turnover KPI is based on the

consolidated net turnover in accordance with paragraph

82(a) of IAS 1. Refer to the line-item operating revenues

in the consolidated income statement in the consolidated

nancial statements.

The numerator of the turnover KPI is dened as the net

turnover derived from products and services associated

with Taxonomy-aligned economic activities. No such

activities are identied.

CAPEX KPI

Denition

The CapEx KPI is dened as Taxonomy-aligned CapEx

(numerator) divided by the total CapEx (denominator).

Total CapEx consists of additions to tangible and

intangible xed assets during the nancial year, before

depreciation, amortization, and any remeasurements,

including those resulting from revaluations and

impairments, as well as excluding changes in fair value.

It includes acquisitions of tangible xed assets (IAS 16),

intangible xed assets (IAS 38) and right-of-use assets

(IFRS 16). Goodwill is not included in CapEx, because it is

not dened as an intangible asset in accordance with IAS

38. CapEx for the reporting period 2024 is the sum of

additions in note 11 and new leasing agreements in

note 12.

The numerator consists of Taxonomy-aligned CapEx

that is directly related to assets associated with

Taxonomy-aligned activities or CapEx related to output

from Taxonomy-aligned activities. Refer to the KPI tables

for list of included activities.

OPEX KPI

Denition

The OpEx KPI is dened as Taxonomy-aligned OpEx

(numerator) divided by the total OpEx (denominator).

Total OpEx consists of direct non-capitalised costs that

relate to research and development, building renovation

measures, short-term leases as well as all forms of

maintenance and repair. This includes:

Research and development expenditure recognized as

an expense during the reporting period in the income

statement. In line with the consolidated nancial

statements (paragraph 126 of IAS 38), this includes all

non- capitalised expenditure that is directly attributable to

research or development activities.

The volume of non-capitalised leases was determined in

accordance with IFRS 16 and includes expenses for short-

term leases and low-value leases. Even though low-value

leases are not explicitly mentioned in the Disclosures

Delegated Act, company has interpreted the legislation as

to include these leases.

Maintenance and repair expenditures were determined

based on the maintenance and repair costs incurred

during the year. The related cost items can be found in

various line items in the income statement, including

production costs (maintenance in operations), sales and

distribution costs (maintenance logistics) and administra-

tion costs (such as maintenance of IT systems). This also

includes building renovation measures.

In general, this includes costs for services and mate-

rial costs for daily servicing, as well as for regular and

unplanned maintenance and repair measures. These costs

are directly allocated to the PP&E. This does not inclu-

de expenditures relating to the day-to-day operation of

PP&E, such as raw materials, cost of employees operating

the machinery, electricity or uids that are necessary to

operate PP&E. Amortisation and depreciation are also

not included in the OpEx KPI. Other operating expenses

directly linked to activities with turnover and activities

related to selling, general, and administration are not

considered as applicable for the calculation of the OpEx

KPI. The relevant costs are related to note 5, 6 and 12 in

the consolidated nancial statements.

The numerator consists of Taxonomy-aligned OpEx

that is directly related to costs associated with Taxo-

nomy-aligned activities or OpEx related to output from

Taxonomy-aligned activities

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202474 75

ESRS E4 - Ecosystems and

Biodiversity

[ESRS 2 IRO-1] DESCRIPTION OF

PROCESS TO IDENTIFY AND ASSESS

IRO FOR E4

Ekornes recognizes the critical role of biodiversity in

maintaining a sustainable supply chain and mitigating

environmental risks. As part of its double materiality

assessment, the company has identified key biodiversity

and ecosystem impacts, risks and opportunities (IRO)

associated with its operations and value chain.

Impact Identification and Assessment

Ekornes has analysed the value chain to understand what

parts of it are the most vulnurable to biodiversity changes

and conducted a series of discussions and interviews with

internal and external stakeholders to identify material

impacts on ecosystems and biodiversity. These discussions

and subsequent assessments highlighted that the most

critical biodiversity impacts occur upstream in the value

chain.

As part of the double materiality assessment process,

Ekornes mapped its value chain and conducted further

assessments through workshops to identify potential

biodiversity impacts and risks. The approach included:

• A full inventory of impacts, risks, and opportunities

across the value chain.

• Validation through interviews and workshops with

internal stakeholders.

• Identification of eight biodiversity impacts across the

upstream supply chain, own operations, and

downstream activities.

• Evaluation using specific criteria such as scale, scope,

irremediability, and likelihood to determine the most

significant impacts.

Dependencies Identification and Assessment

During the impact assessment process, Ekornes identified

dependencies on biodiversity and ecosystem services

across its operations and value chain. These dependencies

are directly linked to key business functions and supply

chain stability. Examples include:

Dependency on Raw Materials and Sustainable

Sourcing

• Impact: Ekornes relies heavily on raw materials such

as wood, leather, steel, and textiles. The availability and

stability of these materials are critical for operations.

However, sourcing practices influence ecosystem

degradation, including deforestation, soil depletion, and

biodiversity loss. There is also growing market and

regulatory pressure to transition to fully sustainable

sourcing.

• Dependency: Access to raw materials is the core

dependency, but ensuring that these materials are

sourced sustainably is necessary to mitigate

environmental risks, meet regulatory requirements

(e.g., EU Deforestation Regulation), and maintain

competitiveness.

Dependency on Sustainable Forestry for Wood

Supply

• Impact: Wood sourcing, particularly if uncertified, can

lead to deforestation and biodiversity loss, impacting

both ecosystems and long-term supply stability.

• Dependency: Reliable access to wood as a resource is

the fundamental dependency, but FSC®/PEFC-certified

wood ensures a stable and compliant supply aligned

with sustainability goals.

Dependency on Stable Ecosystems in Proximity to

Facilities

• Impact: Ekornes’ manufacturing sites and operational

activities (e.g., emissions, waste, land use) may

contribute to habitat degradation and biodiversity loss,

particularly near nature-preserved areas and sensitive

ecosystems.

• Dependency: Business continuity depends on stable

ecosystems surrounding facilities, as well as regulatory

compliance to avoid operational disruptions.

Risks and Opportunities Identification and

Assessment Approach

Ekornes employs a multi-step process to identify and

assess biodiversity-related risks and opportunities,

integrating both internal expertise and external

stakeholder perspectives. This approach includes:

Internal Workshops and Stakeholder Engagement:

• Conducted cross-functional workshops with

sustainability, procurement, compliance, finance and

operations teams to map potential risks and

opportunities.

• Engaged consultant and experts to understand external

pressures and market expectations.

Materiality and Risk Prioritization:

• Risks and opportunities were classified using a DMA

framework based on:

• Likelihood of occurrence

• Potential impact on operations, compliance, and

financial performance

• Irremediability

Scenario Analysis and Regulatory Alignment:

• Evaluated how emerging biodiversity regulations,

including the EU Deforestation Regulation (EUDR),

Corporate Sustainability Reporting Directive (CSRD),

and local biodiversity policies, may impact Ekornes’

supply chain and business model.

• Identified biodiversity-related risks, such as changes in

certification requirements, supplier availability, and

costs of sustainable materials.

Ekornes incorporates climate and biodiversity dimensions

into risk assessments by distinguishing between physical,

transition, and systemic risks and opportunities. The

evaluation is conducted through cross-functional input and

supported by external expertise. Our approach includes:

• Physical Risks: Assessed through supplier and

geography mapping to evaluate exposure to biodiversity

loss, deforestation, and habitat degradation, particularly

in sourcing regions. Internal team reviewed location-

specific risks (i.e, Brazil,) using tools such as WWF Risk

Filter and external databases (e.g., Global Forest

Watch).

• Transition Risks: Evaluated based on the potential

impact of evolving regulatory landscapes (e.g., EU

Deforestation Regulation, CSRD), shifts in customer

and investor expectations, and changes to certification

standards. Internal team assessed how supplier

readiness and material substitution could affect

compliance costs and operational continuity.

• Systemic Risks: Identified through scenario discussions

focused on long-term disruptions, such as supply chain

fragility due to ecosystem collapse or biodiversity-

linked reputational damage. This includes consideration

of compounded risks from climate and biodiversity

interlinkages.

Different risks were further prioritized using the DMA

framework.

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202476 77

Summary of IROs related to Biodiversity

IRO Type of impact Scope Time horizon

Ekornes’ reliance on large amounts of raw materials contributes to

ecosystem degradation, including deforestation, soil depletion, and

biodiversity loss.

Negative impact Upstream

Medium-term,

long-term

Switching to materials from sustainable production processes can

lead to increased costs.

This is because these materials often require more responsible

sourcing, stricter environmental standards, and certications that

add expenses. Additionally, sustainable production methods may have

lower yields or involve more labor-intensive practices, raising costs

compared to conventional alternatives. Limited supply and higher

demand for sustainably produced materials can also drive-up prices.

Financial risk Upstream Medim-term

Site Biodiversity-Sensitive Area

Ikornes, Norway Habitat for bat species

Fetsund, Norway Proximity to biodiversity preservation area

MATERIAL IMPACT, RISKS AND

OPPORTUNITIES ON BIODIVERSITY

AND ECOSYSTEMS (IRO-1, SBM-3)

Ekornes’ operations and sourcing activities contribute to

ecosystem degradation, including deforestation, soil

depletion, and biodiversity loss. This impact occurs

upstream in the supply chain.

Biodiversity-Sensitive Areas Impacted

While the material impact occurs in the upstream value

chain, Ekornes also monitors biodiversity-related impacts

and risks within its own operations. The company has

identified two operational sites near biodiversity-sensitive

areas. Ekornes has not yet conducted consultations with

affected communities.

Impact Drivers and Mitigation Measures

To minimize biodiversity-related impacts and risks, Ekornes

has implemented the following mitigation measures:

• Sustainable sourcing – Commitment to sourcing 100%

FSC®/PEFC-certified wood and Leather Working

Group-certified leather to reduce deforestation risks.

• Supplier engagement – Strengthened due diligence in

high-risk sourcing regions to ensure compliance with

biodiversity and environmental protection standards.

• Eco-design principles – Integration of circular economy

models to reduce material demand and extend product

lifecycles, minimizing biodiversity-related.

Most of Ekornes’ biodiversity impact is tied to ecosystems

in the upstream value chain, particularly through:

• Land Degradation in supply chain activities can result in

land-use changes and soil depletion,

• Deforestation and Land-Use Change: The sourcing of

wood and leather may contribute to deforestation and

habitat loss.

Ekornes is committed to reducing biodiversity impacts

through responsible sourcing and policies, ensuring that

procurement practices align with sustainability standards

and biodiversity conservation

[E4-1 AND SBM-3] CONSIDERATION OF

BIODIVERSITY AND ECOSYSTEMS IN

STRATEGY AND BUSINESS MODEL

Ekornes recognizes the critical role of biodiversity in

maintaining a sustainable supply chain and mitigating

environmental risks. As part of its double materiality

assessment, the company has identified key biodiversity

and ecosystem impacts, risks and opportunities (IRO)

associated with its operations and value chain.

Material impact identified:

Ekornes’ operations and sourcing activities contribute to

ecosystem degradation, including deforestation, land

degradation, soil depletion. The most significant impacts

occur upstream in the supply chain, particularly related to

wood and leather sourcing.

• Deforestation – Wood sourcing in Europe and leather

procurement from Brazil contribute to deforestation

risks, impacting ecosystems and biodiversity.

• Soil depletion – Land-use changes associated with raw

material extraction can lead to reduced soil fertility,

affecting long-term ecosystem stability.

This impact also comes with the risk that switching to

materials sourced from sustainable production processes

can lead to increased costs.

Resilience of business model and strategy to

biodiversity and ecosystems-related risks

Resilience of Ekornes strategy and business model:

Ekornes has assessed its resilience in relation to

biodiversity and ecosystems, including material risks

identified in the Double Materiality Assessment. The

company’s business model is particularly exposed to the

availability and cost of raw materials, which are essential to

production but also contribute to ecosystem degradation,

deforestation, and biodiversity loss.

To ensure long-term business resilience, Ekornes

integrates sustainable resource sourcing and risk

mitigation strategies to address these challenges.

Risk Identied Resilience Challenge Strategic Response

Reliance on raw materials

contributing to ecosystem

degradation

Ensuring a stable, sustainable supply of

certied materials without disrupting

production capacity.

• Expansion of FSC/PEFC-certied wood and LWG-

certied leather sourcing to reduce deforestation risks.

• Supplier partnerships to improve environmental practices

and secure long-term sustainable material sources.

Increased costs due to

transition to sustainable

materials

Managing cost volatility and nancial

risks associated with sourcing

higher-cost certied materials.

• Procurement strategy adjustments to secure stable

pricing and diversify sustainable supplier base.

• Exploring alternative materials and circular economy

models to reduce dependence on virgin raw materials.

Key Resilience Challenges & Strategic Responses

Focus areas of Ekornes’ Resilience Strategy

• Strengthening traceability systems for key raw

materials to prevent sourcing from biodiversity-

sensitive regions and ensure compliance with

sustainability regulations.

• Enhancing supplier due diligence to align with

biodiversity-focused regulations, such as the EU

Deforestation Regulation (EUDR), by improving

monitoring and verification processes.

• Embedding sustainable and eco-design principles into

product development to reduce reliance on virgin

materials, extend product lifecycles, and minimize

ecosystem impact.

(*ESRS E4-1-11,12))

Resilience assessment and scope of analysis:

Ekornes assessed resilience in relation to the supply chain

impact and risk associated with biodiversity and ecosystems.

Biodiversity Resilience Plan focuses on Ekornes’ operations

and value chain to identify and address biodiversity and

ecosystems-related risks and opportunities. The scope

includes the following components:

Upstream Value Chain

• Raw Material Sourcing:

• Wood: Prioritize and ensure full transition to FSC®/

PEFC-certified wood to reduce deforestation risks

and support sustainable forestry.

• Leather: Evaluate sourcing from Brazil with attention

to deforestation, animal welfare, habitat destruction,

and water-intensive practices.

• Textiles: Focus on reducing biodiversity risks from

production in regions.

• Plastics and Chemicals: Address the ecological

impacts of extraction, processing, and use in

manufacturing.

• Supplier Practices: Collaborate with suppliers to

ensure adherence to sustainable practices and

biodiversity conservation.

Annual report Ekornes QM Holding 2024 | Sustainability report Sustainability report | Annual report Ekornes QM Holding 202478 79

Own operations and Downstream Value Chain

• Product Design and Lifecycle:

• Integration of eco-design principles to extend

product life, reduce resource use, and ensure

recyclability and repairability.

Geographic Focus

• Key sourcing regions include:

• Europe: Wood from Finland, Lithuania, Slovakia,

Germany, and Hungary. Steel from Finland, Sweden,

Germany, Italy.

• Brazil: Leather supply.

• Asia: Textiles, steel and plastics from China and

chemicals and wood from Thailand.

• Addressing local biodiversity risks in these regions is

critical to mitigating global ecosystem impacts.

(*ESRS E4-1-13-(a))

(*ESRS E4-1-13-(b))

Key Assumptions:

Ekornes Biodiversity Resilience Plan is based on the

following assumptions, which guide company’s approach to

identifying risks and opportunities and implementing

mitigation strategies:

Biodiversity and Ecosystem Conditions

• Global efforts to conserve biodiversity, such as

reforestation programs and ecosystem restoration

initiatives, will continue to expand, creating

opportunities for sustainable sourcing and minimising

financial risks.

• Regions critical to Ekornes’ supply chain (e.g., Brazil,

Europe, and Asia) will face varying levels of biodiversity

risks, such as deforestation, water scarcity, and habitat

destruction, influenced by climate change and human

activities.

Regulatory Environment

• Biodiversity-related regulations, such as the EU

Deforestation Regulation (EUDR), will become

increasingly stringent, driving demand for certified and

sustainably sourced materials.

• Certification standards (e.g., FSC®, PEFC®, and

Leather Working Group) will remain key benchmarks

for responsible sourcing and biodiversity-friendly

practices.

Market Dynamics

• Consumer demand for products aligned with

biodiversity and sustainability goals will continue to

grow, influencing product design and sourcing

decisions.

Operational and Supply Chain Resilience

• Upstream suppliers will adapt to biodiversity

requirements through capacity building and improved

practices, ensuring the availability of certified materials.

Collaboration and Innovation

• Collaboration with stakeholders, including certification

bodies, NGOs, and suppliers, will enable Ekornes to

address biodiversity risks more effectively.

• Technological advancements, such as traceability tools

and resource-efficient production methods, will support

Ekornes’ efforts to mitigate biodiversity impacts.

(*ESRS E4-1-13-(c))

Time Horizons Used:

The Plan considers short-(1-5 years), medium-(5-10 years),

and long-term (10+ years) time horizons to address

biodiversity and ecosystems-related impacts and risks.

These timeframes guide Ekornes’ strategic actions and

align with global sustainability goals.

(*ESRS E4-1-13-(d)

Results of Analysis:

Ekornes’ biodiversity resilience level is moderate, primarily

due to the nature of its industry, which relies on raw

materials.

Ekornes’ resilience analysis evaluates biodiversity and

ecosystems-related risks and identifies opportunities

across its operations and supply chain. The assessment

highlights physical, transition, and systemic risks while

outlining strategic opportunities to enhance sustainability

and long-term business resilience.

Ekornes faces physical risks related to biodiversity impacts

at its manufacturing sites and within its supply chain.

Within the supply chain, deforestation and habitat loss are

key concerns, particularly in wood sourcing from Europe

and leather sourcing from Brazil. Water scarcity in critical

raw material production regions, including Brazil, China,

Thailand, and Italy, could further impact material availability

and quality, affecting long-term sourcing stability.

Transition risks arise from the increasing regulatory and

market demands for biodiversity-conscious practices.

Compliance with biodiversity-related regulations, such as

the EU Deforestation Regulation (EUDR), may lead to

higher operational costs due to enhanced supply chain due

diligence, certification requirements, and supplier audits.

The shift to certified sustainable materials (e.g., FSC/

PEFC-certified wood, LWG-certified leather) also comes

with higher procurement costs, which could impact

profitability in the short to medium term. Additionally,

market and reputational risks arise if Ekornes does not

meet evolving sustainability expectations, potentially

affecting consumer trust and competitive positioning.

Systemic risks include the broader consequences of

global biodiversity loss, which could disrupt supply chains

and operational resilience by limiting access to critical

natural resources.

Strategic adjustments to the business model will focus on

expanding traceability systems, adopting nature-positive

procurement policies, and further integrating circular

economy principles into product design and manufacturing.

Ekornes will invest in digital traceability tools, supplier

audits, and enhanced biodiversity monitoring frameworks

to ensure compliance with evolving regulations.

By integrating biodiversity into its long-term business

strategy, Ekornes aims to mitigate risks while leveraging

opportunities for growth and resilience in a sustainability-

driven market. Continuous monitoring, investment in

traceability, and alignment with global biodiversity goals

will be essential for long-term success.

(*ESRS E4-1-13-(e))

Stakeholder Involvement:

The development of the Biodiversity Resilience Plan has

been driven by close collaboration among internal teams

and key stakeholders to ensure its effectiveness and

relevance. While the plan has not yet been formally

approved by the leadership team, approval is expected to

take place in 2025.

Internal stakeholders involved in the plan’s development

include the strategy and sustainability team, which

provided insights into biodiversity risks and opportunities

to align the plan with Ekornes’ long-term sustainability

goals. The group compliance team ensured the plan meets

regulatory requirements and aligns with global biodiversity

and ecosystem protection standards. The procurement

team assessed supply chain practices to integrate

biodiversity-friendly sourcing and reinforce responsible

material procurement.

The Head of the sustainability task force played a key role

in reviewing and providing initial approval of the plan

before its submission for further leadership approval.

[MDR-P & E4-2] POLICIES RELATED TO

BIODIVERSITY AND ECOSYSTEMS

This section covers all MDR-P requirements (in combination

with the policies overview) and topic specific requirements as

stated in E4-2 ( E4-2 20-24)

This chapter outlines the policies related to biodiversity

and ecosystems. Ekornes has implemented a set of policies

to manage impacts and risks related to biodiversity and

ecosystems, namely Ekornes’ Environmental Policy, our

Sustainability Position Paper on Nature. Additionally, the

Sustainable Leather Sourcing Policy and the FSC

Certification Policy ensures responsible material sourcing,

thus preventing direct operational harm to ecosystems.

Currently none of the policies address social

consequences of the impacts. The most senior level

accountable for implementing policies at Ekornes is CEO.

For details about the policies see Table for Ekornes

policies related to material IROs, page 42-45, where all

policies are listed in accordance with ESRS 2 MDR-P and

ESRS E1-2.

(*ESRS E4-2-20-21)

Ekornes Environmental Policy

Ekornes Environmental Policy is a high-level companywide

document outlining how organisation will improve own

environmental performance and be a driving force in the

sustainability work within the industry. The general

objective of the policy is to provide clearly defined

commitments related to Ekornes’ environmental

performance and environmental targets. Focusing among

other topics on biodiversity and ecosystems, the policy

outlines Ekornes’ commitment to choose good materials

with a long service span and to the greatest extent from

recycled resources. This is directly linked to mitigation of

the material negative impact of over-consumption of raw

materials, which could contribute to ecosystem

degradation.

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The policy specifically targets climate change, pollution

and direct exploitations. The policy supports traceability

of products and raw materials.

Sustainability Position Paper on Nature

The Sustainability Position Paper on Nature outlines

Ekornes’ key biodiversity priorities for 2024-2026. These

include minimizing negative impacts on biodiversity and

ecosystems, ensuring compliance with biodiversity

regulations and standards, and promoting ecosystem

restoration and resilience across our value chain. The

Position Paper on Nature serves as a transitional document

between the company’s General Environmental Policy and

the forthcoming Nature Policy, which is planned for

development in 2025.

For the upstream value chain, which is where the material

impacts and risks are located, this means sourcing key

materials such as leather, wool, textile, wood and steel with

a focus of avoiding deforestation and land-use changes. This

will be achieved through prohibiting materials sourcing from

areas associated with deforestation, habitat destruction or

biodiversity loss and integrating biodiversity considerations

into product design by prioritizing materials and processes

that minimize ecosystem impacts. The abovementioned

considerations show that the policy is linked to the

identified material negative impact and the financial risk.

Monitoring of the commitments outlined in the Position

Paper on Nature will be conducted through supplier audits,

biodiversity performance reviews within the supply chain.

The policy specifically targets direct exploitations and

minimizing impacts on the extent and condition of

ecosystems. The policy also supports plans on improving

traceability of products and raw materials along the value

chain. As the approach described in the policy entails

collaboration with suppliers to improve biodiversity

practices and work with suppliers to ensure sustainable

practices in material sourcing to reduce biodiversity risk

across the supply chain, the policy addresses sourcing and

consumption from ecosystems that are managed to

enhance conditions for biodiversity.

Sustainable Leather Sourcing Policy

The Sustainable Leather Sourcing Policy outlines Ekornes’

approach to responsible leather procurement, focusing on

environmental impact, animal welfare, supply chain

transparency, and regulatory compliance. It is linked to

biodiversity and ecosystems because the policy expresses

Ekornes’ commitment to source leather exclusively from

cattle bred for food production (meat and dairy), avoiding

sourcing from endangered or prohibited species. The

policy also prevents deforestation by requiring leather

suppliers do not source from deforested or protected

areas. This policy is linked to Ekornes’ negative material

impact caused by relying on large amounts of raw

materials. Through supplier management, deforestation,

soil depletion and biodiversity loss are mitigated.

The policy specifically targets direct exploitations, the

impact on the state of species and impact on ecosystems.

The policy has direct implications for Ekornes’ impacts

along the value chain, supporting traceability and

mitigating desertification through deforestation efforts. As

the policy describes how Ekornes follows up their suppliers

to ensure sustainable practices in sourcing of leather to

reduce biodiversity risk and deforestation, the policy

addresses sourcing and consumption from ecosystems

that are managed to enhance conditions for biodiversity.

FSC Certification Policy

Ekornes is a member of the FSC® Chain of Custody (COC)

Certification and complies with the FSC® Member

Instruction Manual. The manual outlines the monitoring

system required for FSC certification, including written

procedures, operating instructions, document templates,

and documentation, ensuring the responsible and

sustainable sourcing of wood-based materials.

FSC is an effective tool for implementing strict practices in

wood purchasing proven to be a solution against

deforestation and degradation. It aims to mitigate risks

related to non-compliance with FSC certification

requirements while securing a responsible supply chain.

The policy also ensures the integration of FSC principles

into procurement, warehousing, production, logistics, and

sales functions. This policy is consequently tightly linked to

the material negative impact of material sourcing

contributing to ecosystem degradation.

This policy contributes to mitigation of the following direct

impact drivers of biodiversity loss; land use change and

direct exploitations, and additionally is relevant to reducing

impact on the condition of ecosystems, as land degradation

and desertification are core elements of the FSC

Certification policy. The certification policy ensures

traceability of products and raw materials.

[MDR-T & E4-4] TARGETS RELATED TO

BIODIVERSITY AND ECOSYSTEMS

When it comes to targets related to biodiversity and

ecosystems, Ekornes is currently in a target definition

process, and while we have had several discussions

internally, a final decision will be made on biodiversity and

ecosystem targets by the end of 2025. Biodiversity offsets

have not yet been used in setting of targets.

One target has already been defined and is disclosed here

in accordance with ESRS 2 MDR-T and ESRS E4-4:

Sourcing 100% of materials from renewable,

recycled, or sustainably and environmentally

certified sources by 2030

Ekornes aims to source 100% of our ingoing materials,

including raw materials, semi-manufactured goods and

products, from renewable or recycled or sustainably

certified sources (third-party certification or internal

assessment), ensuring that no materials linked to

deforestation or high-risk biodiversity areas are used in

production.

This target is directly linked to Ekornes’ impact on

ecosystems, as the company’s reliance on large volumes of

raw materials contributes to ecosystem degradation,

including deforestation, soil depletion, and biodiversity

loss, reflected in the negative material impact related to

biodiversity. By working towards sustainable sourcing

practices, Ekornes aims to mitigate these impacts.

The target level to be achieved is 100% for each materials

category by Jan 1, 2030. The target is relative, measuring

the percentage of materials used in manufacturing that are

recycled, sustainably certified or from renewable sources.

The target covers all suppliers in Ekornes’ upstream value

chain and affects decisions made in our own operations.

The target to be monitored yearly in upcoming reporting

cycles. There is specific consideration given to high-risk

sourcing regions, such as Brazil (leather) and Europe

(wood).

The baseline value for the target is summarized in the table

below, showing what the status is for each materials

category for 2024:

Materials category Percentage

Wood

40,42%

Letaher

100%

Steel

Additional group of materials to be reviewed in 2025.

The target timeline entails reaching the goal by Jan 1 2030,

with the following yearly interim goals (to be established in

2025).

Alignment with national or international policy

goals

This target aligns with the objectives of the EU Biodiversity

Strategy for 2030, which seeks to restore ecosystems,

protect biodiversity, and reduce environmental pressures

across Europe. By prioritizing responsible sourcing and

avoiding biodiversity-sensitive areas, Ekornes contributes

to the sustainable use of ecosystems, the preservation of

natural habitats, and the reduction of biodiversity loss

across its supply chain.

Methodology and Assumptions

To determine the baseline and keep track of progress,

Ekornes calculates the percentage based on procurement

data, supplier certifications, audits and environmental

impact assessments conducted by Ekornes and external

third parties. Double counting is avoided because of the

single chosen certification methodology per group of

materials.

For Ekornes to be able to reach the set target by 2030,

three main assumptions are made.

Firstly, it is assumed that there will be sufficient availability

of sustainably or environmentally certified materials. This

applies to FSC-certified wood, LWG-certified leather and

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textiles and steel. The transition to fully certified sourcing

will depend on supplier readiness and industry-wide

certification adoption rates.

Secondly, Ekornes assumes that existing and new suppliers

will be able to achieve and maintain compliance with

sustainability certifications. Ekornes will continue engaging

with suppliers through collaborative relationships and

annual audits to ensure compliance. Certified suppliers will

be prioritized over non-certified suppliers.

Thirdly, it is assumed that traceability systems for tracking

material origins (e.g. blockchain, certification databases)

will be available and further developed in the coming years.

This allows for accurate reporting and verification of

sustainable sourcing.

Conclusive Scientific Evidence and alignment with

existing policy goals

Although Ekornes has not conducted its own scientific

impact modeling for biodiversity loss, the target is

informed by global biodiversity science and policy

frameworks, including the EU Biodiversity Strategy for

2030, including the EU Deforestation Regulation (EUDR)

and the Kunming-Montreal Global Biodiversity

Framework. Both frameworks call for deforestation-free

supply chains and sustainable material sourcing as key

drivers for biodiversity restoration. The target is also

aligned with industry certifications such as FSC

Certification for wood, Leather Working Group (LWG)

standards for leather and ISO Environmental Management

systems.

Stakeholder Involvement in Target Setting

Internally at Ekornes, the supply chain team, the

sustainability team and company leadership have been

involved in developing and defining this target. In 2025

Ekornes aims to continue involving a broader group of

stakeholders.

Tracking Progress and Performance Monitoring

Ekornes already has annual supplier audits to verify

compliance with our Supplier Code of Conduct, Ekornes

Environmental Policy, Sustainable Leather Sourcing Policy

and FSC Certification. In 2025 the plan is to amplify these

supplier audits, to include monitoring of material origin to

measure percentage of materials weight that is renewable,

recyclable or certified according to third parties.

No changes made as target is new.

[MDR-A & E4-3] ACTIONS AND

RESOURCES RELATED TO

BIODIVERSITY AND ECOSYSTEMS

Ekornes has no actions to report on for 2024, but have so

far identified one action that will be implemented for 2025,

in line with our target of 100% sustainable sourcing.

Include Environmental and Biodiversity Topics in

Supplier Audits

Ekornes conducts supplier audits based on risk

assessments and the formal criteria are formalized in our

Supplier Code of Conduct. The Supplier Code of Conduct

includes general environmental compliance requirements

but does not explicitly mention biodiversity and

ecosystems. However, it encourages responsible

environmental management and compliance with

environmental laws, including sustainable material

sourcing and greenhouse gas (GHG) emissions reduction,

which indirectly support biodiversity conservation.

This action to be connected with identified impact and risk

In 2025 we aim to incorporate environmental-related

criteria, including applicable biodiversity regulations. The

audits aim to improve supplier assessment processes and

enhance collaboration strategies while strengthening

traceability and verification mechanisms. By identifying

potential risks related to deforestation and ecosystem

degradation, this action supports Ekornes’ commitment to

achieving 100% sustainable sourcing by 2030.

Environmental and biodiversity criteria will be added to

supplier assessments for material material groups,

including textiles, leather, wood and electronics. The

implementation timeline consists of risk assessment,

supplier selection, and audit planning, followed by audit

execution. All suppliers will be assessed against the added

criteria to get an overview of the status among our current

suppliers. The audits primarily address upstream supplier

engagement, impacting both suppliers and internal

procurement and compliance teams responsible for

ensuring responsible sourcing practices.

[E4-5] IMPACT METRICS RELATED TO

BIODIVERSITY AND ECOSYSTEMS

CHANGE

Biodiversity-Sensitive Raw Material Sourcing

Ekornes acknowledges that its primary impact on

biodiversity stems from raw material sourcing. To mitigate

this, the company is committed to transitioning toward

more sustainable sourcing practices. Since Ekornes does

not directly alter ecosystem conditions, its key metric for

tracking progress is the percentage of sustainably certified

raw materials procured from suppliers accredited by

recognized certification bodies, relative to total raw

material sourcing.

Among the raw materials purchased, leather and wood are

the most relevant in terms of potential deforestation

impact. To address this, Ekornes prioritize sourcing from

suppliers that adhere to strict environmental and social

certification standards. In addition, Ekornes is evaluating

the feasibility of green steel as an alternative to traditional

steel, though this initiative is still under review.

Raw Material Certication

% of sustainably certied

materials

% of all other

Wood FCS certied 40,42% 59.58%

Leather LWG certied 100% 0%

Steel Green still 0% 100%

To calculate the proportion of raw materials sourced from

sustainable certified suppliers versus all other sources,

Ekornes relys on procurement data.

For leather: All suppliers are certified by LWG, and no new

suppliers to be accepted unless they are certified.

For wood: This data includes supplier certifications,

expenditure records, and material origin documentation.

Ekornes considers FSC certification to be the most

comprehensive standard. While the rest of its wood is

certified under PEFC, the company prioritizes achieving

100% FSC certification as a key metric.

Data Collection: Procurement teams track purchases of

wood recording total volume per material number. Supplier

documentation is reviewed to verify certifications from

FSC.

Categorization:

Wood materials are categorized into two groups:

• FSC certified sourcing: Materials purchased from

suppliers with verified sustainability certifications.

• All others: Materials that do not meet certification FSC

criteria.

Calculation Formula:

The percentage of certified sustainable sourcing is

calculated as:

FSC Certified Sourcing (%)=(Volume of Certified Mtaerials/

Total Volume Purchased)×100

Reporting and Monitoring:

Procurement data will be consolidated and analyzed

periodically to track progress toward sustainability targets.

Ekornes operates two sites adjacent to biodiversity-sensitive

areas; however, no direct negative impact has been identified.

Ekornes' reliance on large amounts of raw materials

contributes to ecosystem degradation, including deforestation,

soil depletion, and biodiversity loss.

Switching to materials from sustainable production processes

can lead to increased costs

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ESRS E5 – Resource Use and

Circular Economy

This chapter outlines the policies, targets and actions

related to resource use and circular economy, as well as

relevant information about Ekornes’ inflows and outflow.

Identification of Impacts Risks and opportunities

Ekornes has identifyied and currently addressing the

material impacts and risks associated with resource use

and the circular economy. Our approach involves a

comprehensive assessment of both our operations and

value chain.

Company has reviewed our assets and activities to

uncover both existing and potential impacts, risks, and

opportunities related to resource management and

circular economy principles. This assessment spans not

only our internal operations but also extends to both

upstream and downstream elements of our value chain.

IIRO identied Type of IRO Value chain allocation Time Horizon

Ekornes products contribute to global waste generation throughout

the lifecycle, increasing resource consumption and disposal challenges.

Negative impact

Own operations,

Downstream value chain

Medium-term,

long-term

As a production company, Ekornes depends on raw materials, leading to

resource exploitation and increased pressure on nite natural resources.

Negative impact

Upstream value chain,