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| Type | Time | Amount | Unit |
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| ifrs-full:Assets | 2024-12-31 | 3473000000 | dkk |
| ifrs-full:Assets | 2023-12-31 | 3454000000 | dkk |
Revenue
| Type | Start date | End date | Amount | Unit |
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| ifrs-full:Revenue | 2024-01-01 | 2024-12-31 | 2747000000 | dkk |
| ifrs-full:Revenue | 2023-01-01 | 2023-12-31 | 2672000000 | dkk |
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<mrv:SustainabilityReport contextRef="ctx-1" id="f1__s8__7__7-1" xml:lang="en">Business modelWe focus on providing safe and affordable solutions and materials for wall buildingEfficient manufacturingPartners in wall buildingEnabling better homesAttractive geographical setupOne-stop shop for every wall building projectDiverse and flexible solutions for various applicationsPartnerships Delivery Key featuresManufacturingKey raw materials⢠Sand, water and lime⢠Strong plant network with ⢠Full wall solution selling⢠One-point of contact⢠Multifunctional, easy-to-⢠Fire-resistant, rot- and mould-national coverageinstall products with minimal proof product ⢠Cement and aluminium added ⢠Support of customers in early ⢠One-stop shop for wall buildingmaintenance and cost-effective for AAC⢠Lean manufacturing process to planning stage⢠Long life-time expectancy⢠Reliable and timely deliverymaterialsimprove efficiency and eliminate ⢠Optimisation of building processwaste⢠Cooperation with planners, ⢠Targeted capital investments installers, architects, distributors improve reliability and quality and house buildersacross the production platform⢠Continuous improvements todeliver sustainable marginsThe business model is prepared in accordance with SBM-1HOME: H+H Operating Model of ExcellenceAs a company operating in a cyclical industry, we have a key focus on being able to adapt our business to changing market conditions. Our current plant network and production setup is well-equipped to efficiently manage historically high production volumes. The network presents a valuable opportunity to realise further benefits from our new operating model developed in 2024 and labelled the H+H Operating Model of Excel-lence (HOME).By consolidating production in larger, more efficient plants, we can leverage economies of scale to achieve cost savings while maintaining peak output with fewer plants. Once HOME is fully implemented, our existing plant network will have the potential to deliver up to 6,000 tm³, representing a 30% increase in capacity from todayâs volumes. This will be driven by increased operational uptime and targeted debottlenecking investments, ensuring sustained high-volume production with a leaner footprint.Implementation will commence in 2025 at selected flagship sites, followed by a phased rollout across the network.These efforts aim to increase operational effec-tiveness and expand capacity to better serve our customers. Additionally, the operating model will play a key role in realising synergies from future strategic M&As, further consolidating and opti-mising the network.StreamliningOver the past two years, our streamlining efforts have led to significant financial improvements, generating substantial cost savings compared to 2022. These efforts have positioned the company to operate more effectively in a low-volume scenario while enhancing resilience during busi-ness cycles.To further improve margins, we are committed to continuous improvement initiatives aimed at optimising asset utilisation and unlocking addi-tional capacity, driving greater efficiency and productivity. By adopting a lean manufacturing approach, we are improving effectiveness and operational uptime through targeted actions that increase output, reduce waste and improve product quality.Similarly, targeted investments in debottlenecking will provide significant steps towards meeting increased demand. These investments require relatively low capital expenditure and offer an attractive payback period.Looking ahead, these efforts will enable us to meet growing demand, deliver the required volumes to support our customers and deliver excellent customer service. Focusing on plant uptime in 24/7 growth mode to boost volume and Uptimeproductivity through engaging first-line management with operatorsEnhancing efficiency and reliability using lean tools, automation, Continuous improvementrecipe optimisation and portfolio rationalisationStrategic investments in specialised equipment to boost capacity Debottlenecking(step change) and enhance efficiencyThe main purpose of the H+H operating model is:⢠Engaging the workforce: Developing a daily operational framework that actively involves employees in driving improved output - SBM-3 ⢠Standardising operations: Establishing consistent procedures, systems and a portfolio of standard work for both oper-ators and leaders to ensure alignment across sites.⢠Measuring and improving performance: Introducing common critical metrics to track and enhance operational perfor-mance.⢠Promoting continuous improvement: Providing tools for problem-solving, process optimisation and the sharing of best practices, utilising the knowledge and experience of our people - SBM-3 Mission Zero: Zero Harm and Zero CarbonZero Harm - SBM-1 | ESRS 2 SBM-3We believe that everyone should come to work and return home free of injury. We are committed to and have the ambition of zero harm for all who work in our plants and on our sites.In 2024, we launched our Health & Safety strategy, ZERO HARM, for 2024-2026, focusing on behaviour-based safety and on embedding a safety-first culture across all operations. All plants have implemented and monitor safety improve-ment plans, supported by regular audits to ensure effectiveness. Key H&S metrics are tracked monthly, and lessons from incidents are shared across the organisation to prevent recurrence. Looking ahead, we are committed to further strengthening our safety culture through proac-tive training, communication and hazard identifi-cation, driving progress toward our ultimate goal of zero harm. Our focus on safety delivered outstanding results in 2024. We are proud to have achieved seven consecutive injury-free months in 2024, with our LTIF rate reaching a record low, from 3.4 in 2023 to 0.9 per million hours worked in 2024. These achievements reflect the dedication of our teams and the strength of our safety culture. LTIF rate15Zero 12incidents96302014 2016 2018 20222020 2024Zero Carbon - SBM-1 | E1-1Our vision for green transition and reducing our carbon emissions is based on a whole life assess-ment of our products. This is a process which evaluates the effects that a product has on the environment over the entire period of its life.Our business model and strategy actively support the green transition by reducing our carbon emissions in alignment with our validated Science Based Targets. From a whole life perspective we want to achieve net zero emissions of our prod-ucts and we believe that with our business model and strategy, we will be able to achieve this by 2050.In 2024, our carbon emissions fell to a record low. Our plants are now consuming 100% renewable electricity, and a dedicated amount of the CAPEX budget is annually allocated to support emission reduction projects.We have successfully reduced our scope 1 and 2 by 13% compared to 2023 remaining well within the 1.5-degree trajectory. Intensity of our scope 3 emissions were 1% lower compared to 2023 (and 11% lower compared to baseline 2019). Our total GHG emissions were 483,205 tons, which is 12% lower than 2023.100%12%renewable electricitylower GHG emissions in total than 2023Zero Carbon - SBM-1 | E1-42019 â Starting pointWhen we started our SBTi journey, an average H+H block emitted 210 kg CO (gross) before 2landing on a building site. With its natural carbon capture storage (CCS) abilities, a block would over a lifetime emit net 130 kg.Scope 1+2+3 ~ 210CCS ~ 75 kgWhole life emissions ~ 130 kg (net)2024 â PresentIn the past five years we have improved our emissions, reducing the amount by 31 kg through renewable electricity and more effi-cient production. Blocks produced in 2024 therefore already emit lower emissions during their lifetime compared to blocks produced in 2019.Whole life emissions ~ 100 kg (net)2030 â TargetWe plan to improve our energy mix and increase the use of low-carbon binder mate-rials, giving a further reduction of 26 kg. In 2030, the whole life emissions of a block will be approx. 75 kg.Whole life emissions ~ 75 kg (net)2050 â VisionBased on roadmaps from our suppliers, our blocks will from a whole life perspective have a negative carbon footprint by latest 2050, positioning our products as the core solution for sustainable wall building mate-rials.Whole life emissions ~ negative 50 kg (net)Carbon capture storage inside (CCS inside)Due to the natural carbon capture abilities of our blocks, the whole life emissions for a block become significantly lower as they absorb CO2during their lifetime.Our AAC products act like a dried-out sponge â absorbing CO from the atmosphere. With the 2improvement in sustainable production and carbon capture and storage (CCS), we will be able to produce blocks with a negative CO foot-2print 10-20 years from now due to the carbon capture process.* Made from approximately 30 m3 AAC blocksA standard house* absorbs over 2.3 tons of CO2over its lifetime from aircrete, equivalent to the absorption of 90 trees.Corporate governanceGovernance structure - GOV-1The general meeting is the supreme governing body of H+H Inter-national A/S where shareholders can exercise their rights. At the annual general meeting shareholders consider the annual report, the remuneration report, the election of Board of Director members and the election of auditor, changes to the Articles of Association as well as any other agenda items proposed by the Board of Directors or shareholders. The authority of general meetings and the formalities relating to general meetings are set out in the companyâs Articles of Association available on the Group website.Election of a member to the Board of Directors requires simple majority of votes, and decisions to make amendments to the Articles of Association requires at least two-thirds of the votes cast as well as of the share capital represented at the general meeting.H+H International A/S has a two-tier management system consisting of the Board of Directors and the Executive Board. The Board of Directors supervises the work of the Executive Board and is respon-sible for the Groupâs strategy and overall organisation, management, and capitalisation. The Executive Board is responsible for the execu-tion of the strategy and the day-to-day management. The organisa-tion and operation of the Board of Directors are set out in the Rules of Procedure for the Board of Directors, and similarly the organisation of the Executive Board and its co-operation with the Board of Direc-tors are set out in Rules of Procedure for the Executive Board. The current Articles of Association state that the Board of Direc-tors must consist of 4-8 members elected at a general meeting. Currently, the Board of Directors consists of 7 members. The term of all board members expires at each annual general meeting, but each member may be re-elected for a new term. It is stipulated in the Arti-cles of Association that a board member may not also be a member of the Executive Board. To support the work of the Board of Directors, the Board of Direc-tors has established three board committees, namely the Audit Committee, the Remuneration Committee, and the Nomination Committee. The board committees are not authorised to make inde-pendent decisions but shall report and provide recommendations to the Board of Directors. The members of each board committee, including the committee chair, are each appointed by the Board of Directors on the basis of their specific competences.Key activities 2024 - Board of Directors - GOV-1⢠Review and update of strategy and business plan ⢠Monitoring of the execution of the Group health & safety strategy 'ZERO HARM'⢠Monitoring of the execution of the new Group operational model HOME, including approval of related CAPEX projects to increase production capacity for the involved plants⢠Approval of sale of idle assets related to the plant closures executed as part of plant network efficiency actions, including approval of the sale of buildings and land in Warsaw after closure of the Warsaw plant⢠Monitoring of the execution of Project ONE aimed at integra-tion and harmonisation of the German business and financial processes to release synergies stemming from the acquisitions since 2018⢠Monitoring of the execution of measures and related CAPEX imple-mentations in pursuit of the CO targets set under the Zero Carbon 2strategy ⢠Review of IT and cyber security, including cyber security training and readiness ⢠Unplanned board meetings to monitor the measures taken to resolve a sudden ordered stop to the operation of all autoclaves at the Borough Green plant in the UK⢠Board evaluation process facilitated by an external expertKey activities 2024 - Audit Committee - GOV-1⢠Oversight of enterprise risk management, including risk categories and revision of the operational hedging policy⢠Monitoring of group insurance strategy, coverage, and pricing⢠Monitoring sustainability reporting process, including review of the double materiality assessment and planning of the first full limited assurance of the sustainability statement etc. ⢠Monitoring financial annual and interim reporting process, including treatment and estimates, accounting policies and the integrity of the reporting process, as well as review of the audit strategyKey activities 2024 - Nomination Committee - GOV-1⢠Recruitment of new CFO ⢠Arrangement and execution together with the assistance of an external expert of the annual evaluation of the Board and of the Executive Board and their co-operation as well as the Board's collective and the board members' individual competences⢠Arrangement of recruitment processes for potential new board members to be proposed for election at the next annual general meeting in April 2025 (ongoing into 2025)Key activities 2024 - Remuneration Committee - GOV-1⢠Annual review of the Remuneration Policy for the Board of Direc-tors and the Executive Board and presentation to the Board of Directors of proposed changes which were presented at the annual general meeting in April 2024⢠Review of the Remuneration Report for 2023⢠Review of and proposal for the fees for 2024 to the Board of Direc-tors and presentation to the Board of Directors of the fee proposal which were presented at the annual general meeting in April 2024 ⢠Review of the actual remuneration for 2023 to the Executive Board and proposal for adjustments to the Board of Directors⢠Review of outcome under the incentive programs vesting in 2024 and proposal to the Board of Directors of KPIs and targets for the short-term and long-term incentive programmes starting in 2024Attendance rates for board and committee meetings in 2024Member Meeting Audit Meeting Nomination Meeting Remuneration Meeting BoardsinceAttendanceCommitteeattendanceCommitteeattendanceCommitteeattendanceKent Arentoft 2013 8/9 1/1 1/1Miguel Kohlmann2018 8/9 1/1 1/1Stewart A Baseley2010 9/9 1/1Volker Christmann2017 9/9 4/4Kajsa von Geijer2022 6/9 4/4 1/1Helen MacPhee2019 8/9 4/4Jens-Peter Saul2023 8/9 1/1 1/1 Chair Vice Chair Member* The participation rates for 2024 were below normal for most board members, which is due to there being four unplanned board meetings each held with very short notice over a one week period in July 2024, where many board members were on holiday. Looking at the pre-planned five board meetings, the attendance rates were at 100% for all board members, except for Kajsa von Geijer with an attendance rate at 80% (i.e. absent from one of five board meetings).Board diversity - GOV-1The Board seeks to be diverse in the broadest sense relevant, recog-nising the benefits of diversity in terms of cultural background, gender, age etc.. When deciding whether to propose re-election or not of board members as well as when searching for candidates to propose as new board members, the decision is based on filling out relevant competence gaps or strengthening specific competences in the Board. Board diversity by the end of 2024*Nationality & residenceBrazil (1) / Denmark (1) / Germany (3) / Sweden (1) / Switzerland (1) / United Kingdom (3)Board tenure (years)1-5 (2) / 6-10 (3) / 11-15 (2)Board independence rate86% (2023: 86%)Age distribution (years)55-59 (2) / 60-64 (3) / 65-69 (2)GenderFemale (2) / Male (5) - average ratio of 29%Educational backgroundsBusiness Administration, Controlling and Auditing / Mechanical Engineering / Economics / Strategy and Management / Financial and Management Accounting / Human Resource ManagementCurrent Board competence profile - GOV-1Individual competences:⢠International and business-minded⢠Analytical and strategic⢠High integrity and accountability⢠Team-oriented * Two board members have dual citizenshipCollective board competences:⢠International top management ⢠Production & sales in building industry⢠Supply chain management⢠Health & safety⢠Sustainability / ESG⢠HR and compliance⢠Finance and accounting⢠Enterprise risk management⢠IT, AI and cyber security management⢠Strategy development⢠Change management⢠M&A, divestments etc.⢠Investor relations and capital markets ⢠Corporate governanceH+H has since the annual general meeting on 31 March 2022 had equal gender distribution in our Board of Directors, as defined by the Danish Business Authority. For this reason, no formal gender target under the law is set. However, when the Board as part of its annual board evaluation decides to want to change its composition, the possibility to improve especially the Boardâs gender diversity and age profile will naturally be pursued. Hence, If two candidates for a board position are equally competent, the person improving the gender and/or age diversity will be preferred.Board evaluation - GOV-1The Board of Directorsâ annual evaluation procedure for 2024 was conducted by an external expert who had one-on-one meetings with each member of the Board of Directors as well as with each member of the Executive Board. The Board then held a board meeting without the presence of the Executive Board where the external expert presented input and findings followed by private discussions in the Board of Directors to discuss the findings and agree on conclusions and action points. The issues evaluated included discussions and decisions regarding e.g.:⢠the board composition (diversity gaps in regard to competences, gender, age, board continuity etc. and the size of the Board)⢠the board structure (review of the chairship and the board committee structure)⢠the board performance (collective and individual performance)⢠co-operation between the Board and the Executive Board (collec-tive and individual performance, co-operation inside and outside of board and board committee meetings) and⢠potential changes to the size of the Board, the individual board members, inclusion of new board members and related candidate profiles and use of headhunters etc.The expert summarised the work of the Board as being based on a high level of trust and collaboration. Board members were all well prepared and had a high participation rate for all planned meetings, indicating that no board members were overboarded. The Board found having a Chairship to be an effective way to manage the Board. The Board also found there to be good and relevant diversity in respect of competences and the spread in board tenure, ensuring both continuity and renewal. The co-operation between the Board and the Executive Board functioned well and the Executive Board said it benefitted from having board members that collectively repre-sented very diverse and relevant competences with regard to special subject matters, industries, country market experience, and cultural insights. RemunerationRemuneration of the Board of Directors and the Executive Board is paid in line with the H+H Remuneration Policy for the Board of Directors and Executive Board adopted by the general meeting. The Remuneration Policy will be reviewed and presented for approval at the annual general meeting for 2025. H+H reports on remuneration in an annual Remuneration Report presented to the shareholders at the annual general meeting for an advisory vote. The Remuneration Report for 2024 and the present Remuneration Policy are available on the Group website. Annual corporate governance statementAs a listed company on NASDAQ Copenhagen, H+H International A/S reports annually on the recommendations on corporate govern-ance. These are issued by the Committee on Corporate Governance together with a description of the internal control and risk manage-ment system relating to the financial reporting as required under Section 107(b) of the Danish Financial Statements Act. The reporting is done in an annual Corporate Governance Statement available on our Group website. We comply with all recommendations. Report on data ethicsThe following makes up the data ethics report required under Section 99(d) of the Danish Financial Statements Act.H+Hâs Data Ethics Policy has as its overall objective to encourage and motivate all our employees to handle data with the utmost care and respect and to follow our guiding principles on data use and ethics. We are committed to complying with all applicable personal data protection laws. We run internal audit controls to secure compliance with both information security and data protection requirements, and all employees developing, purchasing or otherwise working with technology and data science-based uses of data must be informed about the data ethics principles. We do not purchase, sell or broker data or otherwise profit from separate data transfers from or to third parties. We do not currently carry out data processing using artifi-cial intelligence, such as machine learning, as a natural part of our business. Our Data Ethics Policy can be found on the Group website, Board of DirectorsKent Arentoft, Chair Male. Born 1962. Danish. Chairman of DSVM Invest A/S and subsidiaries. IndependentMember and Chair since 2013Chair of the Nomination CommitteeH+H shareholdingHolds 60,000 H+H shares via a company he controlsNo changes made in 2024Areas of expertiseBroad organisation and management experience in international companies in the building materials and contracting sector, particularly within strategy development and M&A transac-tions. Other management positions and directorships Chairman of MAAG Gear AGChairman of Geveko Group ABBoard member of Igne Group Limited.Miguel Kohlmann, Vice ChairMale. Born 1962. German/Brazilian.Professional board member and advisor.IndependentMember since 2018 and Vice Chair since 2024Chair of the Remuneration CommitteeMember of the Nomination CommitteeH+H shareholdingDoes not hold any H+H sharesNo changes made in 2024Areas of expertiseExtensive management experience in global building materials production and other global industries. Worked in controlling, sales, production, and general management. Other management positions and directorships Chairman of the Board of Directors of Archroma Holdings SARL (Luxembourg) and NMC International S.A. (Luxembourg). Member of the Advisory Board of Pfleiderer GmbH (Germany) and Paul Bauder GmBH (Germany).Stewart Antony BaseleyMale. Born 1958. British.Chairman of Highlander Partners (CEE) and board member of five subsidiaries (Romaniaand two subsidiaries (UK)Not independent (more than 12 years board tenure)Member since 2010Member of the Nomination CommitteeH+H shareholdingHolds 22,500 H+H sharesNo changes made in 2024Areas of expertiseExperience in the international housebuilding industry and the developer industry, particularly in the UK, as well as international management experience. Other management positions and directorships Chairman of Home Builders Federation and board member of four subsidiaries (UK)Chairman of Troy Homes Limited (UK)Patron of Children with Special Needs Foundation (UK)Volker Christmann Male. Born 1957. German. Managing Director, Senior Vice President Insulation Central Europe, Member of Group Management of ROCKWOOL A/S. Chairman of the Board of Directors of two companies in the ROCKWOOL Group, Managing Director of five companies in the ROCKWOOL Group and member of the Board of Directors of ROCKWOOL Foundation. IndependentMember since 2017Member of the Audit CommitteeH+H shareholdingDoes not hold any H+H sharesNo changes made in 2024Areas of expertiseExtensive experience within the building materials production sector of Central Europe, particularly in Germany, as well as within financial auditing and controlling.Other management positions and directorshipsChairman of the Board of Directors of BuVEG (Bundesverband energieeffiziente Gebäudehülle) (Germany). Member of the Board of Directors of FIW (Forschungsinstitut für Wärmtechnik) (Germany).Kajsa von GeijerFemale. Born 1964. SwedishProfessional board member and advisor. IndependentMember since 2022Member of the Audit CommitteeMember of the Remuneration CommitteeH+H shareholdingDoes not hold any H+H shares No changes made in 2024Areas of expertiseInternational experience within strategic and operational HR, sustainability, ESG and general compliance.Other management positions and directorshipsMember of the Advisory Committee of Solix Group AB (Sweden) and of one its subsidiaries.Helen MacPheeFemale. Born 1962. British.Senior Vice President of Finance, AstraZeneca plc (UK).Independent Member since 2019 Chair of the Audit CommitteeH+H shareholdingDoes not hold any H+H shares No changes made in 2024Areas of expertiseExtensive experience within strategic and operational finance. International experience in change management, financial oversight and control, management of large-scale ERP imple-mentation projects, governance, and risk frameworks.Other management positions and directorshipsN/AJens-Peter SaulMale. Born 1966. German/British.CEO of Ramboll Group A/S, DenmarkIndependentMember since 2023Member of the Nomination CommitteeMember of the Remuneration CommitteeH+H shareholdingHolds 6,259 H+H shares No changes made in 2024Areas of expertiseExtensive international experience in particular within strategy development and ex-ecution to accelerate organic and acquisitional growth and to maximise investments, as well as broad insights into sustainability and the green energy transition. Experi-ence from diverse industries such as infrastructure, energy, construction, investment, manufacturing and trading.Other management positions and directorshipsMember of the Board of Directors of Cubico Sustainable Investments Limited (UK).Jörg Brinkmann Male. Born 1979. German. CEO since 2022 H+H shareholdingHolds 21,300 shares7,300 were purchased in 2024Background2018-2022: Managing Director, Europe of James Hardie Europe, GmbH (Germany)2014-2018: CEO of Fermacell, GmbH (Germany)2011-2014: Sales Director of Fermacell, GmbH (Germany) 2005-2011: Head of Marketing at Xella Group, GmbH (Germany)EducationMSc (Business Administration)PhD EconomicsOther management positions and directorshipsN/ABjarne PedersenMale. Born 1977. Danish.CFO since 2024H+H shareholdingHolds 10,141 shares No changes made in 2024Background2019-2024: Chief Strategy Officer in H+H (Denmark)2014-2019: Investor Relations and Business Development, H+H International A/S (Denmark)2008-2014: Various IT and Finance postions in H+H International A/S (Denmark)2006-2008: Global Cash management in Danske Bank (Denmark)2005-2006: IT Consulting Project Manager at e-conomic A/S (Denmark)1998-2005: Auditor at Pwc (Denmark)EducationMSc (Business Economics and Auditing)Other management positions and directorshipsN/AInvestor Relations - SBM-2The purpose of our financial communications and other investor relations activities is to ensure that relevant, accurate and timely information is made available to the stock market to serve as a basis for regular trading and a fair pricing of H+H shares.To ensure that capital market participants, including current and prospective investors, are able to make well-informed investment deci-sions, we seek a transparent and active dialogue with all financial market participants, including investors, sell-side analysts, journalists and the general public via conference calls, participation in investor meetings and equity conferences and social media.H+H is not normally available for dialogue about financial matters in the three-week period leading up to the publication of an interim financial report or the annual report. Inquiries concerning investor relations issues should be addressed to the Head of Investor Relations and Treasury via email to Shareholder@HplusH.com. More relevant investor information is available on our group website.5Health & Safety - ESRS 2 GOV-5Critical accidents resulting in fatalities or serious harm to employees or external parties can be caused by several factors. These include inade-quate behavior within the business, insufficient training and learning in health and safety.The importance of safety is embedded through the Group Health and Safety Policy, which pro-vides guidance on applying our safety manage-ment system across all operations. We conduct near-miss reporting and root cause analysis to reduce risk and strive to enhance performance through both external and internal reviews, fol-lowed by subsequent follow-ups. There is a relatively small number of employees in a plant, where the heavy machinery is, and it is rare that accidents affect more than one employ-ee at the time. The risk is considered low.6Climate - ESRS 2 GOV-5Failure to meet our science-based targets, including not adhering to the sustainability strategy by reducing coal usage, closing or improving inefficient plants, and sourcing more carbon-friendly raw materials, is a risk for H+H. Operational management is responsible for ex-ecuting plans that support our science-based targets, and management is committed to making adequate funding for the projects nec-essary. Additionally, planning by the procure-ment team in sourcing materials is essential. Mitigating actions are further described in the Sustainability Statement under the Environ-mental Information section.Our science-based targets are ambitious but realistic with the effort and mitigation in place, hence the probability of the risk is considered low. The challenges are more industry specific than company specific.Sustainability statement GGeneral informationSustainability is a strategic focus area for H+H and it is embedded in our business model.List of disclosure requirements Page referenceESRS 2 General DisclosuresBP-1 General basis for preparation of the sustainability statement Page 49GOV-1 The role of the administrative, management and supervisory bodies Pages 36-42, 49GOV-2 Information provided to and sustainability matters addressed by the undertakingâs Pages 49-50 administrative, management and supervisory bodiesGOV-3 Integration of sustainability-related performance in incentive schemes Page 50 GOV-4 Statement on due diligence Page 51 GOV-5 Risk management and internal controls over sustainability reporting Pages 56-57 SBM-1 Strategy, business model and value chain Pages 19, 23-24 SBM-2 Interests and views of stakeholders Page 52 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and Pages 53-54 business modelIRO-1 Description of the processes to identify and assess material impacts, risks and Pages 55 opportunitiesIRO-2 Disclosure Requirements in ESRS covered by the undertakingâs Pages 54, 59-62 sustainability statementESRS 2 General disclosures BP-1 General basis for preparationOur sustainability statement is prepared on a consolidated basis with our 2024 financial statements and with reference to the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS) and in compliance with sections 99a and 107d of the Danish Financial Statements Act. It covers our own operations and upstream and downstream value chains. The statement is structured into four sections - âGeneralâ, âEnvi-ronmentalâ, âSocialâ and âGovernanceâ â with each section disclosing relevant information related to impacts, risks, opportunities, targets, metrics, policies and actions. We have not used the option to omit specific information corresponding to intellectual property, know-how or the results of innovation.GOV-1, GOV-2 Sustainability governanceH+Hâs ESG activities are anchored at the Board of Directors who has oversight of our strategy, targets, impacts, risks and opportunities and Group policies together with Group Management. This includes regular risk assessments, establish-ment of internal controls and documentation of data, which are overseen by the Audit Committee. Due diligence is managed mainly through policies and their related processes. The Board of Direc-tors and the relevant underlying board commit-tees are updated on these as part of their annual wheel. The long-term strategy for H+H is discussed at the annual strategy seminar, including how to address and manage the material impacts, risks and opportunities identified in the Double Mate-riality Assessment (âDMAâ). During the first half of 2024, a review of the DMA was completed by Group Management and the regional Managing Directors, including engagement with various internal and external stakeholders. The result of this was first presented to the Audit Committee before being presented and approved by the Board of Directors. You can read more about our board composition, governance structure and activities in the Corpo-rate Governance section. Here you can also find information on the experience and background of the members of the Board of Directors and the Executive Board. As a further testament to our commitment, H+H also has a sustainability-linked financing agree-ment, which incentivises the achievement of specific ESG KPIs.Sustainability is anchored across our corporate governance structures Board of DirectorsOversees compliance of the ESG Policy and is updated monthly on key ESG metrics by Group management as well as at board and board committee meetings. This includes updates on various ESG-related projects around the group and the effec-tiveness of our actions in relation to our targets. H+H Group ManagementDefines and executes initiatives to achieve the ESG strategy and oversees progress, including long-term projection of CO2emissions and health & safety. Driven in close liaison with regional management, work and reporting is supported by various Group and regional functions. This is done at least monthly as part of general business review meetings or as part of weekly meetings with the regional Managing Directors. Corporate ControllingMonitors new legal requirements and trends around the ESG landscape, makes recommendations on key ESG initiatives to ensure compliance with stakeholder expectations, and executes on strategic targets in cooperation with key regional stakeholders. Audit CommitteeIs responsible, amongst other things, for overseeing financial and non-financial reporting as well as external assurance, internal controls and risk management relating to ESG. It also receives notice of results of whistleblower investigations. Committee meetings are held each quarter in connection with release of financial reports. Meetings are also held at the request of other board members or the financial or sustainability auditors, as well as when the Chair of the Audit Committee finds it necessary. The Operations organisation is overall responsible for execu-tion of matters related to the environment, including energy consumption, emissions, as well as H&S and work incidents.The HR organisation is overall responsible for execution of social matters, exept for safety, and for the framework for implementation and training of compliance matters.The Finance organisation is overall responsible for matters related to execution of governance, including reporting, ESRS and taxonomy.GOV-3 Integration of sustainability-related performance in incentive schemesH+Hâs Remuneration Policy for the Board of Directors and Executive Board seeks to create a remuneration framework that supports achievement of our strategy, with a focus on ensuring continuous long-term sustainable development of our business, while creating long-term value for shareholders. The policy, including all subse-quent changes, is approved by the General Meeting of shareholders. The policy describes target setting for both the long- and short-term incentive programme. For 2024, the short-term incentive programme included two KPIs related to ESG, with one KPI target relating to lost-time incidents (H&S) and one KPI target relating to the reduction of our scope 1 and 2 CO emissions. Each KPI has a 215% weighing. In 2023, we introduced an ESG-related KPI in our long-term incentive share programme, related to our scope 1 and 2 emissions. This was continued in 2024 and like last year, the target is weighted 15%. The measurement period of the programme runs three financial years at the time. Both long- and short-term targets relating to emissions are assessed and determined in relation to the GHG emission reduction targets described in the Environmental section.SBM-1 Strategy, business model and value chainA description of our strategy, business model and value chain is provided in the Business and Strategy section. Please refer to the full content of page 19 and 23-24.GOV-4 Statement on due diligenceCore elements of Paragraphs or pages in Does the disclosure relate to Due Diligencethe Sustainability Statementpeople and/or the environment?a) Embedding ESRS 2 GOV-2, pages 49-50People and environmentdue diligence ESRS 2 GOV-3, page 50People and environmentin governance, ESRS 2 SBM-3:strategy and business modelpages 64-65 (E1)Environmentpages 76-77 (Health & Safety, S1)Peoplepage 78 (Equal treatment & opportunities for all, S1)Peoplepage 82 (Training & skills development and working Peopleconditions, S1)b) Engaging ESRS 2 GOV-2, pages 49-50People and environmentwith affected ESRS 2 SBM-2, page 52People and environmentstakeholders in ESRS 2 IRO-1, page 55People and environmentall key steps of the due diligenceESRS 2 MDR-P:page 65 (E1-2)Environmentpages 77-79, 82 (S1-1)PeopleSocial: page 82 (S1-2)PeopleESRS 2 IRO-1, page 55People and environmentc) Identifying and ESRS 2 SBM-3: assessing adverse pages 64-65 (E1) Environmentimpactspage 76-77 (Health & Safety, S1)Peoplepage 78 (Equal treatment & opportunities for all, S1)Peoplepage 82 (Training & skills development and working Peopleconditions, S1) Environment PeopleCore elements of Paragraphs or pages in Does the disclosure relate to Due Diligencethe Sustainability Statementpeople and/or the environment?d) Taking actions ESRS 2 MDR-A:to address those page 63 (E1-1)Environmentadverse impactspages 65-66 (E1-3) Environmentpages 77, 79, 82 (S1-4) Peoplee) Tracking ESRS 2 MDR-M:effectiveness of page 66 (E1-4)Environmentthese efforts and pages 77-78 (S1-14)Peoplecommunicatingpage 81 (S1-9) Peoplepage 81 (S1-16)Peoplepage 83 (S1-13)PeopleESRS 2 MDR-T: page 66 (E1-4) Environmentpages 77, 79, 83 (S1-5)PeopleOur stakeholdersSBM-2 Interests and views of stakeholdersAs Partners in wall building, we are in the business of people, seeking to engage with both our internal and external stakeholders. The Board of Directors and Group management are regularly informed of the views of our stakeholders to better assess how to incorporate their interests in our strategy. A key interest area from both our internal and external stakeholders is the need to drive down emissions, while the main priority for our internal stakeholders is safety. This is reflected in our strategy and ways of working. EmployeesWe are committed to providing a safe, engaging and meaningful workplace for our employees, where collaboration can thrive. We engage with our employees in a number of different ways, including intranet updates, workersâ councils, engagement surveys in selected areas, manager check-ins and global town halls. Employees also have the opportunity to raise concerns through our online whistle-blower system, described in the Governance section. Through this we want employees to feel they have influence over their workplace and that concerns are met, e.g. in the form of improve-ments and action plans.CustomersWe are a customer centric organisation under-pinned by our promise to be Partners in wall building. Engaging with our customers to consist-ently understand their perspectives and needs is an embedded part of our business model with the aim of building trust, providing sustainable solutions as well as enabling them to reach their targets. Engagement is done through our customer support, customer surveys and training as well as part of business partner due diligence. Examples of outcome is the creation of product- specific environmental product declarations (EPDs) in most of our markets.SuppliersH+H relies on suppliers to meet our emissions reduction targets. This informs the purpose of our engagement, focusing on development of low-carbon cement and lime and finding more efficient production methods. Engagement is organised as part of supplier due diligence and via industry collaborations. The progress of these, influences our strategy for lowering scope 3 emis-sions in the short and long-term. Society and local communitiesCompliance with existing regulations on respon-sible business practices is a fundamental and basic requirement in H+Hâs Code of Conduct. Through our memberships in various trade organ-isations, we engage in dialogue with different regulators and interest groups with the purpose of addressing potential risks and opportunities as well as ensuring regulatory compliance. We engage with our local communities to ensure that we are good neighbours to our surroundings and we participate in local trade fairs and events to promote our business and further relationships.ShareholdersH+H is listed on the Danish Stock exchange. We therefore naturally engage with our shareholders on a regular basis to ensure efficient financial allocation and to understand shareholdersâ interests. This is done via a dedicated Investor Relations department, management participa-tion in investor roadshows and conference calls, briefings with analysts and the Annual General Meeting. The purpose of this is to improve dialogue and relationships with stakeholders. Dialogue with shareholders is described in more detail in the Shareholder Information section (Investor Relations) on page 44. SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business modelAs part of our process, we have considered current and anticipated effects of impacts, risks and opportunities on our business model, value chain and decisionmaking. The material impacts, risks and opportunities identified during the materiality assessment are presented in more depth alongside the topical standards ESRS E1 Climate change, S1 Own workforce and G1 Busi-ness conduct in the Environmental, Social and Governance information sections in this sustaina-bility statement.For climate-related topics we have identified material financial risks and opportunities, as shown in our DMA matrix and elaborated on in ESRS 2 SBM-3 in the Environmental section.For other material topics, we have exercised the phase-in option and not quantified the financial effect.E1 climate change Chapter Type Sub-section Value chain Time horizonEmissions from own operations Climate change Actual negative Own operations AllValue chain emissions from raw materials production Climate change Actual negative Upstream AllUse of energy in own production Climate change Risk Own operations AllRecarbonisation of our products during its life-time Climate change Opportunity Entire value chain AllS1 Own workforceSystem to record and assess workplace injuries and illnesses in order to prevent them going forward Health & safety Potential negative Industrial accidents Own operations ShortIll health due to exposure to hazardous materials Health & safety Potential negative Production materials Own operations Short & MediumRecording of how many days are lost due to work incidents, ill health and fatalities Health & safety Potential negative Industrial accidents Own operations Short & MediumIncidents which have resulted in an injury, ill health or fatality Health & safety Potential negative Industrial accidents Own operations Short & MediumIncidents which result or could potentially result in an injury Health & safety Potential negative Industrial accidents Own operations ShortGender equality impact Equal treatment & opportunities for all Actual negative Gender equality & equal pay Own operations ShortDiversity in H+H Equal treatment & opportunities for all Potential negative Gender diversity Own operations Short & MediumRisk of harrasment in workplace Equal treatment & opportunities for all Potential negative Anti-harassment Own operations Short & MediumWorkers impact on working time Training & skills development and Potential negative Work-life balance, working Own operations Shortworking conditionsconditions and social dialogueH+H's impact on work-life balance Training & skills development and Potential negative Work-life balance, working Own operations Short & Mediumworking conditionsconditions and social dialogueIndividual career development of H+H employees Training & skills development and Potential negative Training and skills development Own operations Short & Mediumworking conditionsH+H's impact on social dialogue in the workspace Training & skills development and Potential negative Work-life balance, working Own operations Shortworking conditionsconditions and social dialogueTraining of employees Training & skills development and working Potential negative Training and skills development Own operations Short & MediumconditionsG1 Business ConductImpact on own workforce from corporate culture Business Conduct Potential negative Corporate culture Own operations AllLack of protection of whistleblowers Business Conduct Potential negative Whistleblower protection Own operations AllRisk of corrupt business practices being conducted in H+H Business Conduct Potential negative Unethical business practices Own operations AllDouble Materiality AssessmentIRO-2 Disclosure Requirements in ESRS We have aligned the IROs with the relevant ESRS data points and conducted a thorough materiality assessment. This evaluation helped us ascertain their relevance to our business model and the decision-making requirements of the Sustain-ability statement's users. For all topics we have assessed the scale, scope and irremediability and applied relevant thresholds.Consequently, this analysis identified the key sustainability information presented in this statement. Description of material and non-ma-terial topics are elaborated under SBM-3 and the process of determination is described under IRO-1. The list of relevant datapoints related to other legislation is shown on pages 61-64.Reporting topics in scopeTopics marked '0' in the list to the right were deemed immaterial from the start and thereby not included in the engagement process. Impact materialDouble material1516 171 2 314202124Non-materialFinancial material4 5 67811 1213 1819Financial impact on H+HE1 Climate changeS1 Own workforce1 Climate change adaptation (CCA)14 Working conditions2 Climate change mitigation (CCM)15 H&S3 Energy16 Equal treatment and opportunities17 Talent developmentE2 Pollution0 Other work related rights4 Air5 WaterS2 Workers in the value chain6 Soil18 Working conditions0Living organisms19 Equal treatment and opportunities0 Substance of (high) concern0 Other work related rightsE3 Water & marine resourcesS3 Affected communities7 Water withdrawals0 Economic, social and cultural rights0 Marine resources0 Civil and political rights0 Water habitat degradation0 Particular rights of indigenous rightsE4 Biodiversity & ecosystemsS4 Consumer & end-user8 Direct impact drivers on biodiversity loss0 Information related impacts0 Impact on the state of species 0 Personal safety of consumers9 Impacts on the extent and condition 0 Social inclusion of consumersof ecosystems10 Impacts and dependencies on ecosystem G1 Business conductservices20 Corporate culture21 Whistleblower protectionE5 Resource use and circular economy0 Animal welfare11 Resource inflows and usage22 Political & lobbying activities12 Resource outflows related to products 23 Payment practices with suppliers and services(late payment)13 Waste24 Corruption and bribery Environmental Social GovernanceIRO-1 Description of the processes to identify and assess material impacts, risks and opportunitiesIdentification of topicsAll entities and business segments have been in scope in our assessment and our IRO. Identi-fication of topics and subsequent assessment and scoring of topics have been done throughout our value chain. We have engaged with various internal and external stakeholders, including employees, suppliers, customers, society, investors, analysts and banks to identify H+Hâs material sustainability matters. This engage-ment happened through interviews and desktop research. Parallel to this, we have also assessed the financial risks and opportunities for sustaina-bility-related matters as part of our ERM process.Our DMA is reassessed annually or if we identify significant changes.General assumptionsWe have applied the following assumptions to our process for identifying impacts, risks and oppor-tunities:⢠Majority (95+%) of our supply is virgin mate-rial, which is excavated and supplied directly from tier 1 suppliers and not processed from tier 2 suppliers. Hence we have decided to only include tier 1 suppliers, as others are of imma-terial size. ⢠We assume, the primary actual and potential impact lies within our upstream activities and production. Therefore, our analysis for down-stream activities is primarily based on inter-views with internal stakeholders and desktop research. ⢠Transport is included in Climate as part of scope 3 emissions. Besides Climate we have assumed that transport is not significant in relation to impacts and have therefore not performed further analysis. ⢠Assumptions which have been used under various topics are described below the relevant topics.Materiality scoring approachThe materiality assessment's scoring method and criteria were established following ESRS 1 require-ments, focusing on:⢠Impact materiality: Considering the scale, scope, irremediability, and likelihood of impacts being positive/negative and actual/potential. Severity takes precedence over likelihood for human rights related impacts as per ESRS 1 (45).⢠Financial materiality: Assessing the financial significance of risks/opportunities, their likeli-hood, and the nature of financial impacts.OutcomeThe materiality assessment determined that âClimateâ, âOwn workforceâ and âBusiness Conductâ are material topics for H+H, and the 2024 evaluation confirmed the topics and subtopics in scope. In line with the materiality assessment our sustainability strategy focuses on CO and safety. This outcome is consistent 2with our previous sustainability strategy with no additional focus areas being added.Rationale for selected scoped-out mattersIn this section we want to provide more clarity for the out-scoping of four selected topics. While below topics fall under our threshold for materi-ality following our assessment, we still recognise that we have a footprint and therefore want to provide transparency on our reasoning for not having them in scope. The section is not exhaus-tive.PollutionIn our assessment of our impact on the pollution of air, water and soil, we have analysed the impact of our own production in the value chain. As we believe the pollution of our upstream and down-stream value chain activities are compliant with European and local regulations, and do not pose any material impact on the environment, we have not done any further analysis.Additionally, in our research we have not encountered any material cases or controversies in the building supply industry on pollution.In production of AAC, almost 100% of the water is either used in the product or recycled into production afterwards, hence no risk of water or soil pollution. For CSU, we use almost no water as the production process only involves the pressing of dry lime and sand. The only water used is for the generation of steam. Any excess water is sent to municipal water treatment stations, which we pay for. In conclusion, we do not see any material negative impact in the pollution of water and soil. In terms of air pollution, we have assesed our use of natural gas and coal. From a pollution perspec-tive natural gas is generally a âcleanâ source to burn and is not considered to have a material negative impact. Coal as an energy source is materially polluting the air in its natural form and it is therefore heavily regulated through local legislation to prevent it from polluting the air and impacting the local community. In our coal-fired plants, we use air- and dust filters to capture the pollution, and we regularly test the emissions to ensure alignment with local legislative requirements. Based on this, we decided not to conduct consultations with local affected communities. Water withdrawalsUsing water is a key process in our manufacturing process. However, our plants are generally not located in areas of high water stress, so the risk of water scarcity is low. Generally there is also a consumption cap on our water permits ensuring that we do not have any material impact on the water in the local community. In addition, many of our plants are designed to recycle water to the extent possible, further limiting our water consumption.BiodiversityWe have assessed our impact on biodiversity from a direct and indirect perspective. Our direct impact is through the operation of our sandpits in Poland. Here we are obligated to adhere to national and local regulations and procedures for the protection of biodiversity and ecosystems, which is supervised by authorities. Our commit-ment is therefore to comply with these require-ments. In the UK we have implemented small projects to further biodiversity in line with local regulations. The results of these are regularly monitored. Additionally, in our research we have not encountered any material cases or controver-sies in the building supply industry on biodiversity.Indirectly we procure sand and lime through external suppliers, who manage and operate quarries and sandpits that can have a potential impact on biodiversity. We have engaged with our suppliers to understand their policies, prac-tices, and initiatives on this subject to ensure we are aware of the contribution from our resource in-flow. We believe there are no material impacts or risks, as we only cooperate with suppliers from European countries with strong institutions and high legislative requirements.Circularity & wasteWe run our plants according to a âno waste of virgin materialsâ principle. All off-cuts and waste in the production process are re-circulated into new batches, meaning no waste occurs during this process. At this stage we have therefore concluded that there are no material impacts, risks or opportunities.ESRS 2 GOV-5 Risk management and internal controls over sustainability reportingH+H has established a comprehensive risk management and internal control system where sustainability is embedded. This system includes:⢠Risk identification and assessment: Continuous identification and assessment of risks related to internal controls, including sustainability reporting, are conducted at Group and regional level. Each region assesses relevant risks, which are then considered by Group, when identifying and assessing the overall Group sustainability risks. Additionally, Group performs risk identifi-cation and assessment at reporting level, which includes processes within the ESG reporting system, as well as the financial reporting system.⢠Control activities: The Group has implemented internal control activities to mitigate identified risks in the sustainability reporting. These activ-ities are performed and reviewed by the regions to ensure the quality and validity of manage-ment reporting and the Annual Report.⢠Monitoring: The risk management process and internal controls environment is monitored and reviewed, involving the regions and anchored in the Group. This includes reporting to the Audit Committee. A controller visit plan, approved by the Audit Committee, ensures that each region is visited at least once a year to assess the maturity and effectiveness of internal controls.Risk Assessment Approach and MethodologyH+H follows a structured risk assessment approach based on the COSO ERM and COSO Internal control guidance.⢠Risk Assessment: Risks are assessed based on their potential impact and likelihood. Significant risks are identified and prioritised.⢠Methodology: A combination of qualitative and quantitative methods is used to assess risks. For Enterprise Risk, we consider Operational and Strategic impacts along with HSE, Environ-ment and Compliance. For internal controls, financial statement lines and key ESG metrics are considered based on calculated materiality, as well as qualitative factors, such as fraud risk, volume and complexity.Key risks identified, related mitigation strategies, and controlsFor sustainability under Enterprise Risk Manage-ment, please refer to the segments under Risk Management called Climate and Health & Safety.For internal controls, we have identified the following key risks; measuring of consumption, measuring of conversion factors and measuring of volumes. Controls are implemented in all regions to miti-gate these risks and ensure the reliability of the sustainability reporting system and related reports.The risk corresponding controls are the following: reconciling input data in our ESG reporting system to supporting documentation, performing analyt-ical reviews, obtaining and comparing conversion factors.Integration of findings, risk, and mitigation reportingEach region assesses their risks and report to Group as input to the review of risk and mitiga-tion plans from the Enterprise Risk Management processes. Summaries are reported to the Audit Committee. The key risks and mitigations are detailed in the Risk Management section in this Annual Report. It is the responsibility of regional management to follow up on the planned mitiga-tions.Findings from the regional review are reported to regions as issues, tracked along with agreed upon actions plans. Statistics are reported to the Audit Committee. Group monitors the development of issues to ensure actions plans are met, in cooper-ation with regional management. BP-2 Uncertainties and estimatesMost of our data is based on HR systems, meter readings, invoices and information directly from our suppliers. We generally therefore do not have many uncertainties and estimates in our figures.However, for scope 3 category 4 and 9 (trans-portation) we have applied a general emission factor as we do not assess types of trucks on an individual basis. For some office related working hours, we have applied norm-hours as the basis for calculation of a workday.We believe that these estimates are reasonable under the circumstances. We have currently not planned any changes to this approach.Incorporation by referenceDisclosure requirement Data point Sub-section PageESRS 2 GOV-1 All Corporate Governance in general 36-42G1.GOV-1 §5 (b) Board of Directors 40-42SBM-1 All Business Model, Strategic Focus Areas (HOME & Mission Zero) 19-20, 23-24SBM-2 §45 (a) iii, iv Investor Relations 44SBM-3 All Strategic Focus Areas (HOME, Zero Harm) 21, 23ESRS 2 GOV-5 All Enterprise Risk Management (H&S and Climate) 47E1-1 §15 Business Model, Strategic Focus Areas (Mission Zero) 23-24E1-4 §34 (f) Business Model, Strategic Focus Areas (Mission Zero) 23-24Climate-related scenario analysisIn 2022, we conducted a climate-related scenario analysis using the TCFD guidelines to assess transition and physical risks and opportunities and how they might impact the resilience of our business strategy. The analysis was refreshed in 2023 and 2024. The analysis was based on the Net Zero 2050, Delayed Transition and Current Policies scenarios released by the Network for Greening the Finan-cial System (NGFS) in 2021. These describe warming of 1.5°C, 1.8°C and +3°C respectively¹.The scenarios considered H+H's full value chain, including our own operations, upstream cement and lime producers and downstream customers. The timeframe used in the scenarios defined short-, medium- and long-term as 2025, 2030 and 2050 respectively. The 2030 timeframe aligns with our science-based target and the 2050 timeframe aligns with our commitment to net zero emissions by 2050, in accordance with the Paris Agreement targets. The original TCFD process included a workshop with the top 50 leaders from across the Group to consider the three scenarios and identify climate-related risks and opportunities. The findings from the scenario analysis were presented to Group Management and the Board of Directors and were incorporated into our strategy. The climate-related risks are also incorporated into our annual Enterprise Risk Management (ERM) system.Climate scenariosThe key assumptions in the scenarios are as follows:1.5°C Scenario 1 Net Zero 2050 scenarioThe Net Zero 2050 scenario is a scenario that limits global warming to 1.5 °C. It is an orderly scenario that includes stringent climate poli-cies and fast technology change to reach net zero emissions in 2050. Carbon prices rise to USD $185 t/CO in 2030, USD $350 in 2040 2and USD $675 in 2050. This scenario tests for immediate transition risk and low physical risk.The accelerated rollout of renewable energy and hydrogen infra-structure supports our goal to reduce emissions in our own opera-tions.The main variable for our ability to reduce the emissions intensity of our products is the speed at which carbon capture utilisation and storage technologies are introduced by cement and lime producers, and therefore for H+H to reduce our scope 3 emissions.Scenario 2Delayed Transition scenarioIn the Delayed Transition scenario, a delay means global emissions increase until 2030 and then strong policies are needed to limit warming to 2°C. Carbon prices rise rapidly from USD $70 t/CO in 22030 to $325 in 2040 and $625 in 2050. This disorderly scenario tests for delayed and high transition risk. A delayed rollout of renewables and hydrogen infrastructure would slow our ability to reduce our operational emissions. However, this scenario aligns with the expected timing of the cement industryâs decarbonisation roadmap for the introduction of CCUS technologies and therefore would not undermine our own decarbonisation plans.Scenario 3Hot House World (Current Policies) scenarioThis scenario assumes that only currently implemented policies are preserved, leading to climate-related hazards and high physical risks. Emissions continue to grow until 2080 leading to 3-4°C of warming and severe physical risks. We paired this scenario with data from the IPCC RCP 6.0. In Europe, where we have operations, the frequency and intensity of heat extremes, including marine heatwaves, are projected to keep increasing. We do not believe there are any material physical risks to any of our assets, as none of our plants are located in areas with risk of earthquakes, wildfires, tornados or volcanoes. During our insurance review no flooding risks were detected either.ESRS 2 Appendix BDisclosure Requirement Benchmark Regulation EU Climate Material/ Paragraph or and related datapoint SFDR reference Pillar 3 reference reference Law reference Not materialpage reference ESRS 2 GOV-1 Boardâs gender diversity paragraph 21 (d) Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation Material p. 38(EU) 2020/1816, Annex II ESRS 2 GOV-1 Percentage of board members who are independent Delegated Regulation (EU) Material p. 38paragraph 21 (e) 2020/1816, Annex II ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator number 10 Table #3 of Annex I Material p. 51ESRS 2 SBM-1 Involvement in activities related to fossil fuel Indicators number 4 Table #1 of Annex I Article 449a Regulation (EU) No 575/2013: Commission Implement-Delegated Regulation (EU) Not material activities paragraph 40 (d) i ing Regulation (EU) 2022/2453 Table 1: Qualitative information on 2020/1816, Annex II Environmental risk and Table 2: Qualitative information on Social risk ESRS 2 SBM-1 Involvement in activities related to chemical Indicator number 9 Table #2 of Annex I Delegated Regulation (EU) Not material production paragraph 40 (d) ii 2020/1816, Annex II ESRS 2 SBM-1 Involvement in activities related to controversial Indicator number 14 Table #1 of Annex 1 Delegated Regulation (EU) Not materialweapons paragraph 40 (d) iii 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II ESRS 2 SBM-1 Involvement in activities related to cultivation and Delegated Regulation (EU) Not materialproduction of tobacco paragraph 40 (d) iv 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II ESRS E1-1 Transition plan to reach climate neutrality by 2050 Regulation (EU) Material p. 63paragraph 14 2021/1119, Article 2(1) ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks Article 449a Regulation (EU) No 575/2013; Commission Imple-Delegated Regulation (EU) Not materialparagraph 16 (g) menting Regulation (EU) 2022/2453 Template 1: Banking book 2020/1818, Article12.1 (d) to (g), and Climate Change transition risk: Credit quality of exposures by sector, Article 12.2 emissions and residual maturity ESRS E1-4 GHG emission reduction targets paragraph 34 Indicator number 4 Table #2 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implement-Delegated Regulation (EU) Material p. 66ing Regulation (EU) 2022/2453 Template 3: Banking book â Climate 2020/1818, Article 6 change transition risk: alignment metrics ESRS E1-5 Energy consumption from fossil sources disaggregated Indicator number 5 Table #1 and Indicator Material p. 67by sources (only high climate impact sectors) paragraph 38 n. 5 Table #2 of Annex 1 ESRS E1-5 Energy consumption and mix paragraph 37 Indicator number 5 Table #1 of Annex 1 Material p. 67ESRS E1-5 Energy intensity associated with activities in high climate Indicator number 6 Table #1 of Annex 1 Material p. 67impact sectors paragraphs 40 to 43 Disclosure Requirement Benchmark Regulation EU Climate Material/ Paragraph or and related datapoint SFDR reference Pillar 3 reference reference Law reference Not materialpage reference ESRS E1-6 Gross scope 1, 2, 3 and Total GHG emissions Indicators number 1 and 2 Table #1 of Article 449a; Regulation (EU) No 575/2013; Commission Imple-Delegated Regulation (EU) Material p. 67-68paragraph 44 Annex 1 menting Regulation (EU) 2022/2453 Template 1: Banking book â 2020/1818, Article 5(1), 6 and 8(1) Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 Indicators number 3 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implement-Delegated Regulation (EU) Material p. 67-68ing Regulation (EU) 2022/2453 Template 3: Banking book â Climate 2020/1818, Article 8(1) change transition risk: alignment metrics ESRS E1-7 GHG removals and carbon credits paragraph 56 Regulation (EU) Not material2021/1119, Article 2(1) ESRS E1-9 Exposure of the benchmark portfolio to climate-related Delegated Regulation (EU) Not materialphysical risks paragraph 66 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II ESRS E1-9 Disaggregation of monetary amounts by acute and Article 449a Regulation (EU) No 575/2013; Commission Implement-Not materialchronic physical risk paragraph 66 (a) ESRS E1-9 Location of ing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: significant assets at material physical risk paragraph 66 (c). Banking book - Climate change physical risk: Exposures subject to physical risk. ESRS E1-9 Breakdown of the carrying value of its real estate assets Article 449a Regulation (EU) No 575/2013; Commission Implement-Not materialby energy-efficiency classes paragraph 67 (c). ing Regulation (EU) 2022/2453 paragraph 34;Template 2:Banking book -Climate change transition risk: Loans collateralised by immova-ble property - Energy efficiency of the collateral ESRS E1-9 Degree of exposure of the portfolio to climate-related Delegated Regulation (EU) Not materialopportunities paragraph 69 2020/1818, Annex II ESRS E2-4 Amount of each pollutant listed in Annex II of the Indicator number 8 Table #1 of Annex 1 Not materialE-PRTR Regulation (European Pollutant Release and Transfer Indicator number 2 Table #2 of Annex 1 Register) emitted to air, water and soil, paragraph 28 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 ESRS E3-1 Water and marine resources paragraph 9 Indicator number 7 Table #2 of Annex 1 Not materialESRS E3-1 Dedicated policy paragraph 13 Indicator number 8 Table 2 of Annex 1 Not materialESRS E3-1 Sustainable oceans and seas paragraph 14 Indicator number 12 Table #2 of Annex 1 Not materialESRS E3-4 Total water recycled and reused paragraph 28 (c) Indicator number 6.2 Table #2 of Annex 1 Not material3 per net revenue on Indicator number 6.1 Table #2 of Annex 1 Not materialESRS E3-4 Total water consumption in mown operations paragraph 29 ESRS 2- IRO 1 - E4 paragraph 16 (a) i Indicator number 7 Table #1 of Annex 1 Not materialESRS 2- IRO 1 - E4 paragraph 16 (b) Indicator number 10 Table #2 of Annex 1 Not materialESRS 2- IRO 1 - E4 paragraph 16 (c) Indicator number 14 Table #2 of Annex 1 Not materialESRS E4-2 Sustainable land / agriculture practices or policies Indicator number 11 Table #2 of Annex 1 Not materialparagraph 24 (b) Disclosure Requirement Benchmark Regulation EU Climate Material/ Paragraph or and related datapoint SFDR reference Pillar 3 reference reference Law reference Not materialpage reference ESRS E4-2 Sustainable oceans / seas practices or policies Indicator number 12 Table #2 of Annex 1 Not material paragraph 24 (c) ESRS E4-2 Policies to address deforestation paragraph 24 (d) Indicator number 15 Table #2 of Annex 1 Not materialESRS E5-5 Non-recycled waste paragraph 37 (d) Indicator number 13 Table #2 of Annex 1 Not materialESRS E5-5 Hazardous waste and radioactive waste paragraph 39 Indicator number 9 Table #1 of Annex 1 Not materialESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph Indicator number 13 Table #3 of Annex I Not material14 (f) ESRS 2- SBM3 - S1 Risk of incidents of child labour Indicator number 12 Table #3 of Annex I Not materialparagraph 14 (g) ESRS S1-1 Human rights policy commitments paragraph 20 Indicator number 9 Table #3 and Indicator Material p. 79number 11 Table #1 of Annex I ESRS S1-1 Due diligence policies on issues addressed by the Delegated Regulation (EU) Material p. 79fundamental International Labor Organisation Conventions 1 to 8, 2020/1816, Annex II paragraph 21 ESRS S1-1 processes and measures for preventing trafficking in Indicator number 11 Table #3 of Annex I Not materialhuman beings paragraph 22 ESRS S1-1 workplace accident prevention policy or management Indicator number 1 Table #3 of Annex I Material p. 77system paragraph 23 ESRS S1-3 grievance/complaints handling mechanisms paragraph Indicator number 5 Table #3 of Annex I Material p. 8232 (c) ESRS S1-14 Number of fatalities and number and rate of work- Indicator number 2 Table #3 of Annex I Delegated Regulation (EU) Material p. 78related accidents paragraph 88 (b) and (c) 2020/1816, Annex II ESRS S1-14 Number of days lost to injuries, accidents, fatalities or Indicator number 3 Table #3 of Annex I Material p. 78illness paragraph 88 (e) ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) Indicator number 12 Table #1 of Annex I Delegated Regulation (EU) Material p. 812020/1816, Annex II ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) Indicator number 8 Table #3 of Annex I Material p. 81ESRS S1-17 Incidents of discrimination paragraph 103 (a Indicator number 7 Table #3 of Annex I Material p. 83ESRS S1-17 Nonrespect of UNGPs on Business and Human Rights Indicator number 10 Table #1 and Delegated Regulation (EU) Material p. 83and OECD paragraph 104 (a) Indicator n. 14 Table #3 of Annex I 2020/1816, Annex II Delegated Regu-lation (EU) 2020/1818 Art 12 (1) ESRS 2- SBM3 â S2 Significant risk of child labour or forced labour Indicators number 12 and n. 13 Table #3 Not materialin the value chain paragraph 11 (b) of Annex I ESRS S2-1 Human rights policy commitments paragraph 17 Indicator number 9 Table #3 and Indicator Not materialn. 11 Table #1 of Annex 1 ESRS S2-1 Policies related to value chain workers paragraph 18 Indicator number 11 and n. 4 Table #3 of Not materialAnnex 1 Disclosure Requirement Benchmark Regulation EU Climate Material/ Paragraph or and related datapoint SFDR reference Pillar 3 reference reference Law reference Not materialpage reference ESRS S2-1 Nonrespect of UNGPs on Business and Human Rights Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) Not materialprinciples and OECD guidelines paragraph 19 2020/1816, Annex II Delegated Regu-lation (EU) 2020/1818, Art 12 (1) ESRS S2-1 Due diligence policies on issues addressed by the Delegated Regulation (EU) Not materialfundamental International Labor Organisation Conventions 1 to 8, 2020/1816, Annex II paragraph 19 ESRS S2-4 Human rights issues and incidents connected to its Indicator number 14 Table #3 of Annex 1 Not materialupstream and downstream value chain paragraph 36 ESRS S3-1 Human rights policy commitments paragraph 16 Indicator number 9 Table #3 of Annex Not material1 and Indicator number 11 Table #1 of Annex 1 ESRS S3-1 non-respect of UNGPs on Business and Human Rights, Indicator number 10 Table #1 Annex 1 Delegated Regulation (EU) Not materialILO principles or and OECD guidelines paragraph 17 2020/1816, Annex II Delegated Regu-lation (EU) 2020/1818, Art 12 (1) ESRS S3-4 Human rights issues and incidents paragraph 36 Indicator number 14 Table #3 of Annex 1 Not materialESRS S4-1 Policies related to consumers and end-users Indicator number 9 Table #3 and Indicator Not materialparagraph 16 number 11 Table #1 of Annex 1 ESRS S4-1 Non-respect of UNGPs on Business and Human Rights Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) Not materialand OECD guidelines paragraph 17 2020/1816, Annex II Delegated Regu-lation (EU) 2020/1818, Art 12 (1) ESRS S4-4 Human rights issues and incidents paragraph 35 Indicator number 14 Table #3 of Annex 1 Not materialESRS G1-1 United Nations Convention against Corruption Indicator number 15 Table #3 of Annex 1 Not material paragraph 10 (b) ESRS G1-1 Protection of whistle-blowers paragraph 10 (d) Indicator number 6 Table #3 of Annex 1 Material p. 86ESRS G1-4 Fines for violation of anti-corruption and anti-bribery Indicator number 17 Table #3 of Annex 1 Delegated Regulation (EU) Material p. 87laws paragraph 24 (a) 2020/1816, Annex II) ESRS G1-4 Standards of anti-corruption and anti- bribery Indicator number 16 Table #3 of Annex 1 Material p. 87 paragraph 24 (b) Environmental informationH+H is committed to an ambitious 1.5°C climate target. We want to be part of the solution in construction of sustainable housing and at the same time lowering global energy related carbon emissions.List of material disclosure requirements Page referenceE1 â Climate changeGOV-3 Integration of sustainability-related performance in incentive schemes Page 50E1-1 Transition plan for climate change mitigation Pages 63-64 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business Pages 64-65 modelE1-2 Policies related to climate change mitigation and adaptation Page 65 E1-3 Actions and resources in relation to climate change policies Pages 65E1-4 Targets related to climate change mitigation or adaptation Page 66E1-5 Energy consumption and mix Page 67 E1-6 Gross scopes 1, 2, 3 and Total GHG emissions Pages 67-68E1-9 Anticipated financial effects from material physical and transition risks and potential Page 68 climate-related opportunitiesCreating more sustainable buildings is key to addressing the issue of CO emissions coming 2from the buildings sector. Building materials, such as H+Hâs AAC and CSU products, are well posi-tioned for long-term growth as they ensure ener-gy-efficient building structures and help to reduce buildingsâ whole life emissions.E1-1 Transition plan for climate change mitigationWe believe our strategy and business model are compatible with the transition to a sustainable economy by reducing our carbon emissions in line with our Science Based Targets and target of net zero emissions in 2050. This is in line with the Paris Agreement and the EUâs climate goals and compatible with the 1.5 degree scenario. Please refer to the 'Mission Zero' section under 'Strategic Focus Areas' for specific actions to reach net zero by 2050.We do not assess to have any locked-in GHG emissions as we believe that all emissions can be avoided through proper strategy and execution.Part of our economic activities are also covered under the EU Taxonomy and we are striving towards aligning all eligible activity. This will be done by implementing environmental plans on our plants and the increased use of more environmen-tally friendly transport vehicles for distribution.Science-based GHG emission reduction targetsOur commitment is backed up by the validated reductions we will make in our scope 1, 2 and 3 GHG emissions by 2030.The ten-year science-based target builds on the product whole life analysis that was undertaken in 2020 which determined that our AAC and CSU products are on a path to achieve net zero â and possibly negative â emissions by 2050. Our emis-sions reduction targets are explained in disclosure requirement E1-4.Climate change mitigation actionsTo achieve the 2030 science-based target, we have developed a roadmap that includes the following levers which are outlined in disclosure requirement E1-3.1. Increasing the share of renewable energy2. Optimising plants including investments in energy efficient equipment3. Improved energy mix4. Supply-chain decarbonisation, in particular, reducing emissions from the production of lime and cement which represent most of our scope 3 emissionsThe transition plan is embedded in our strategy together with related initiatives. The transition plan, along with the initiatives to achieve it and the science-based target have been approved by Group Management and the Board of Directors. The COO is responsible for the implementation of the transition plan.A dedicated amount of the CAPEX budget (5%-15%) is annually allocated to support emis-sion reduction projects. We also integrate perfor-mance measures related to GHG emissions reduc-tions into our management incentive schemes, which is described in the General Information section.Our current progress towards our transition plan is stated in the âResultsâ in the E1-6 section. H+H is not excluded from Paris-aligned benchmarks.Sources of H+Hâs GHG emissions â baseline yearScope 1 and 2 emissions from operations account for about 25% of our carbon footprint, with about 75% of these emissions generated by the use of coal, oil, and gas in our plants. H+Hâs total COe 2019 emissions used as a baseline for science-based targets2Raw materials Distributions Energy Operational and embedded equipment 95%75%Lime, cementenergy emissions Gas, coal, oiland offices5%25%DieselElectricity, steam25%Emissions from operations(Scope 1+2)75% Value-chain emissions(Scope 3)About 75% of the emissions in H+Hâs carbon footprint are scope 3 emissions generated else-where along the value chain. The majority of these emissions (approximately 95%) are generated upstream by cement and lime manufacturers. This is a result of the chemical reaction that occurs when carbon is removed from limestone when it is heated to produce clinker for cement or lime. The CO released is an unavoidable conse-2quence of this reaction, as the limestone has absorbed CO during its formation â just like a 2tree does.H+H was the first manufacturer of aircrete (AAC) and calcium silicate (CSU) products to have science-based targets approved in line with a 1.5-degree scenario.ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business modelClimate change impactsThe materiality assessment described in disclo-sure requirement IRO-2 identified the following material climate change mitigation impacts:Recarbonation during product lifetime (positive)Limestone-based products such as AAC and CSU absorb CO during their lifespan, acting as 2permanent carbon sinks during the use phase of a building and when it is torn down and recy-cled. AAC products can absorb 77 kg of CO per 23m, with 80% of recarbonation achieved after 50 years and 95% within 80 years. This positive impact occurs in our downstream value chain (the end-users of AAC and CSU products) over the short, medium, and long term.Please refer to EAACA - Net-zero roadmap for AAC for underlying documentation.Emissions from own operations (negative)The emissions from our own operations have a material impact on climate, with 89t CO of scope 21 and 2 emissions during 2024. This negative impact occurs over the short and medium term. With our net zero target we do not expect to have negative impact the long term.Value chain emissions from extraction and processing of raw materials for production (negative)As previously mentioned, a significant amount of our emissions derives from our upstream value chain (cement and lime producers), causing a negative impact over the short and medium term. With our net zero target we do not expect to have negative impact in the long term.Climate change risks and opportunitiesIn 2022, we undertook a climate scenario analysis using the TCFD guidelines, which was refreshed in 2024. The analysis considered H+Hâs full value chain, including our own operations, upstream cement and lime producers and down-stream customers. No part of the value chain was excluded from the scenario analysis. Nor were any material physical risks or transition risks excluded. The climate scenario analysis is described in disclosure requirement IRO-1.The scenario analysis identified the following four transition risks and one opportunity. No material physical risks were identified. The findings from the scenario analysis are incor-porated in our strategy. Actions to mitigate the transition risks and capture the opportunity are described in disclosure requirement E1-3. The scenario analysis determined that after these mitigations are applied, H+H has no net-material financial impact in the short, medium, and long term.E1-2 Policies related to climate change mitigation and adaptationH+Hâs Environmental, Social & Governance Policy (ESG Policy) addresses climate change mitigation by including our commitment to reduce scope 1, 2 & 3 emissions in line with net zero emissions by 2050, and the short-term targets we have set to achieve this. By covering all emission scopes, the policy applies to emissions from our own opera-tions, as well as our upstream and downstream value chain.The policy does not address energy efficiency, climate change adaptation and renewable energy deployment. However we plan to expand our ESG Policy to include this. The policy is distributed via H+Hâs policy manage-ment system in the Group intranet. Stakeholders can access the policy via our group website. The policy is used to communicate our ambitions within ESG on a high level to the entire organisa-tion. In daily operations, the policy is supported by process descriptions and manuals, which describe in detail our expectations and actions. These are made in cooperation with the relevant internal, local stakeholders to ensure ownership.Group Management has overall responsibility for the ESG policy, while the regional Managing Direc-tors are responsible for implementing it within their countries as heads of their respective legal entities. The policy is reviewed annually by Group Management.E1-3 Actions and resources in relation to climate change policiesMitigating actions towards climate risksH+H has developed a roadmap until 2030 that reduces our carbon emissions. A dedicated amount of the CAPEX budget (between 5% and 15%) is annually allocated to fund emissions reduction projects.We address our scope 1 & 2 emissions through the following levers and actions:1. Increasing the share of renewable energyH+Hâs use of renewable electricity will increase by purchasing either RECs or PPAs. In 2024, we increased the use of renewable electricity in our plants in CWE and reached 100% renewable electricity in our consumption. We have therefore completed this target one year ahead of schedule. 2. Investments in energy efficiencyWe are continuously implementing energy-saving projects and embed these in other upgrade projects. During 2024, these have included burner upgrades, valve replacements and general equipment improvements. In addition to general improvements, we will focus on projects related to heat recovery and steam in 2025. These upgrades and modernisations are essential in optimising our manufacturing footprint and equipment, and the investments do not solely rely on sustaina-bility decision criteria. 3. Improved energy mixWe are improving our energy sources by converting from coal to natural gas and plan to convert from natural gas to fossil-free energy sources, such as green hydrogen when reasonably possible. We have already begun our energy mix improvement by converting one plant in Poland from coal to natural gas. 4. Sup ply-ch ain dec arbonis ationH+H addresses our scope 3 emissions through the following levers and actions:Low-carbon cement and limeWe focus on having a continuous dialogue with our lime and cement producers. We will collaborate on carbon reduction projects with those who have committed to a science-based target or have a credible emissions reduction pathway to net zero emissions by 2050. According to these, net zero will be achieved mainly through the use of carbon capture storage and utilisation (CCSU) and lower carbon ingredients, switching from fossil fuels to renewable energy to heat kilns, and through recarbonation. In 2024, we have tested the use of new lime with initial positive results but with still more testing and development needed. A reduction of clinker content in cement used for AAC products has already resulted in a reduction in scope 3 emissions - see disclosure requirement E1-9 for further details.Low emissions transportThe emissions-reduction pathway for the trans-port industry requires transport companies to reduce emissions by approximately 30% by 2030. We expect our transport suppliers to provide such low-emissions transport services in the future.E1-4 Targets related to climate change mitigation and adaptationH+H had three climate-related targets covering emissions from our own operations as well as our supply-chain emissions, and energy consump-tion. The emissions reduction targets for 2030 have been verified by the Science Based Targets initiative as being in line with the 1.5°C scenario. The energy consumption target was reassessed during 2024 and it was decided to remove it as a separate target, as we see it as part of our SBTi strategy.Please refer to the 'Mission Zero' section under 'Strategic Focus Areas' for specific actions to reach net zero by 2050.The baseline year 2019 is based on the fact that we prepared our SBTi-submission during 2021 and our most recent baseline year (2020) was not representative due to the Covid-19 pandemic. 2019 was the most recent year to choose and represents a ânormalâ production year in H+H.The most critical assumptions in our roadmap is the development of fossil-free energy in opera-tions and the use of carbon capture storage and utilisation from our suppliers. Scope 2 calculated in the baseline and target setting is based on the market-based approach. For our current performance against target, please refer to our âGHG emissionsâ section.Baseline TargetSBTI targets Unit 2019 2030 2050Scope 1+2 CO emissions Tonnes 212,997* 115,018* 02Scope 3 CO2 intensity kg/m3161.9 125.8 0* 28% of the baseline emissions are related to scope 2. For the 2030 target, 0% are related to scope 2.H+H's roadmap to reduce emissions for scope 1+2 in line with its science-based target12010% -17%100%100-4%-35%8054%60402002019 baseline Organic growth and Increase share of Investments in Improved 2030emissionsimprovements, netrenewable electricityenergy eîciencyenergy mixemissions(2019-2030)(2022-2025)(2020-2030)(2022-2030)Specific climate ambitions⢠100% share of renewable electricity (incl. PPAs / RECs) by 2024 - Done â⢠Convert all coal plants to natural gas, or other more sustainable sources, by 2030⢠Have at least one scope 1+2 neutral plant by 2030E1-5 Energy consumption and mixOur energy consumption mainly consists of natural gas and coal for generating steam into the autoclaves as well as electricity used to operate plant equipment. As part of our science-based target we are working towards lowering the mix from coal and introducing renewable energy into the mix â such as biogas, hydrogen, or biomass â to generate steam. Additionally, all our plants are committed to efficient energy management and are ISO 50001 certified. Breakdown of energy comsumption (MWh)25k44kMWhMWh41k93k99kMWhMWh18kMWhMWh5%11%8%24%19%4%12k3%MWh2k0%MWh2023202461%65%255k315kMWhMWhOil Fossil steam Natural gasCoalRenewable and electricityelectricityEnergy intensity per net revenue 2023¹ 2024 %Total energy consumption from activities in high climate impact sectors per net-revenue from activities in high climate impact sectors (MWh/Monetary unit) 182 152 -17%3) 575 549 -5%Total energy consumption (MJ/mTotal energy consumption (MWH) 486.095 417.035 -14%Total net revenue (mDKK) 2.672 2.747 3%1 Not covered by the Independent Auditorâs limited assurance reportIn 2024, we saw the full effect of our restructur-ing-actions done in 2023 with the closing of inef-ficient plants and optimising production patterns. This has resulted in a record low energy consump-3tion of 549 MJ per m showing that we are on the right track with our HOME strategy. Unfortunately we did not meet our 2024 target of 3525 MJ per m but we are still satisfied with the result, given that the current market situation is still under pressure, making it more difficult to fully optimise our plant output. The increase of coal is due to a relative higher production coming from our Polish sites during 2024.Energy intensity based on net revenueThe decrease in energy per net revenue is related to more efficiency and the production volume being higher than the sales volume. 100% of H+H's activities are in the high climate impact sector.E1-6 Gross scopes 1, 2, 3 and total GHG emissionsThe methodologies, significant assumptions and emission factors used to calculate H+Hâs GHG emissions are provided in the Environmental accounting policy section. Scope 1+2In 2024, we have been able to further reduce our carbon intensity emissions to a record low 32.5kg 3per m which is 28% lower than our baseline 3of 45.3kg per m. This reflects the actions and investments to improve the CO footprint of our 2plants. This year, our plants are consuming 100% renewable electricity and we have continued our energy improvement by using 5% less energy per 3m produced compared to last year.For 2025, we will continue to implement further CO-reducing projects.2Scope 33Scope 3 intensity was 144.2kg per m which is an improvement of 1% compared to last year and ahead of our science-based target for 2024. The positive development was driven by improvement in emission factors from our suppliers, as they continue to invest in reducing their carbon footprint. For 2025, we continue collaborating with cement and lime producers that have committed to a science-based target or have a credible emissions reduction pathway. While concrete projects are underway, we do not yet know the quantitative impact.Total emissionsAs shown in the GHG table, all our nominal emissions have declined due to the market downturn and general improvements.E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities H+H has no net-material financial impact in the short, medium, and long term as described in the General Information section.As these financial effects do not include all the require-ments of E1-9, We have opted to exercise the phase-in allowance to omit the financial effects.Retrospective Milestones and target yearsAnnual Base % target year (2019) 2023¹ 2024 % vs. LY 2030/ Base yearScope 1 GHG emissionsGross scope 1 GHG emissions (tCO2eq) 153,887 93,602* 81,884 -13% 115,01824.2%Percentage of scope 1 GHG emissions from regulated emission trading schemes (%) 0% 0% 0% 0%Scope 2 GHG emissionsGross location-based scope 2 GHG emissions (tCO2eq) 59,109 29,369 25,522 -13%Gross market-based scope 2 GHG emissions (tCO2eq) 59,109 15,198* 6,885 -55%Significant scope 3 GHG emissionsReduce by 22% Total Gross indirect (scope 3) GHG emissions (tCO2eq) 758,327 442,582 394,435 -11%per m32.0%1 Purchased goods and services 700,604 400,600 351,484 -12%3 Fuel and energy-related activities (not included in scope 1 or scope 2) 34,964 23,071 19,234 -17%4 Upstream transportation and distribution 13,656 10,932 14,680 34%9 Downstream transportation 9,104 7,978 9,038 13%Total GHG emissionsTotal GHG emissions (location-based) (tCO2eq) 971,324 565,553 501,842 -11%Total GHG emissions (market-based) (tCO2eq) 971,324 551,381 483,205 -12%¹ Not covered by the Independent Auditorâs limited assurance report | ² Scope 1+2 is a combined target* ESG figure subject to limited assurance in 2023GHG Intensity based on net revenueGHG intensity per net revenue 2023¹ 2024 %Total GHG emissions (location-based) per net revenue (tCOeq/Monetary unit) 212 183 -14%2Total GHG emissions (market-based) per net revenue (tCO2eq/Monetary unit) 206 176 -15%Net revenue 2,672 2,747 3%1 Not covered by the Independent Auditorâs limited assurance reportEnvironmental accounting policyControlsData regarding energy consumption and our GHG emissions are reported through the operations management system that follows normal financial processes to ensure consistency and is validated against the external financial reporting. The data is verified through internal controls, analysis, benchmarks, and monthly business meetings. Unless stated no numbers or metrics have been validated by any external body other than the assurance provider.DefinitionsClimate⢠COe scope 1 is calculated as combusted fuel 2type x conversion factor per fuel type. For 1 tonnes of coal a conversion factor between 19 and 23 to GJ is used, based on the quality of the product. For other combustion fuels an emis-sion factor is applied based on DEFRA factors⢠COe scope 2 is calculated as purchased MWh 2x conversion factor of 3.6 to GJ. For both loca-tion- and market-based electricity, emission factors are based on AIB. Additionally, for market-based we adjust for the purchase of RECs in our emissions. We only use RECs when calculating our market-based emissions⢠COe per m³ (scope 1), COe per m³ (scope 2) 22and COe per m³ (scope 3) are calculated as 2scope 1, scope 2 (market based) and scope 3 divided by net-production volume⢠During our initial scope 3 assessment, we screened all 15 types of activities. Besides activity 1,3,4 and 9, remaining activities were deemed immaterial and out of our reporting scope. For scope 3 activities 1 and 3, we have used primary data for all sources and for activ-ities 4 and 9, we have used industry generic factors⢠COe scope 3 category 1 is calculated as 2purchased materials in scope x efficiency factor. Where efficiency factors are disclosed by the supplier this is used. If such are not available generic industry efficiency factors are applied⢠COe scope 3 category 3 is calculated as 2consumed energy x efficiency factor from DEFRA⢠COe scope 3 category 4 and 9 are calculated as 2total transported km of our products x generic transport efficiency factor ⢠Total energy is calculated as combusted fuel type x power factor per fuel type + used electricity⢠Total energy per m³ is calculated as total energy divided by production volume⢠Production volume is defined as produced AAC 3and CSU (net) measured in mSocial information People are the foundation for our success. We aim to provide a safe, attractive, and meaningful workplace for our employees. In this section, we take a thematic approach to the sustainability topics identified in our materiality assessment.List of material disclosure requirements Page referenceS1 â Own workforce SBM-2 Interests and views of stakeholders Page 52SBM-3Material impacts, risks and opportunities and their interaction with strategy and business modelPages 76, 78, 82 S1-1 Policies related to own workforce* Pages 77-79, 82 S1-2 Processes for engaging with own workforce and workers' representatives Page 82 S1-3 Processes to remediate negative impacts and channels for own workforce Page 82 S1-4 Taking action on material impacts on own workforce, and approaches to managing risks Pages 77, 79, 82 and pursuing opportunities related to own workforce, and effectiveness of those actionsS1-5 Targets related to managing material negative impacts, advancing positive impacts, and Pages 77, 79-80, 83 managing material risks and opportunitiesS1-6 Characteristics of the undertakingâs employees Pages 80-81 S1-7 Characteristics of non-employees in the undertakingâs own workforce Pages 80-81S1-8 Social dialogue Page 83 S1-9 Diversity metrics Page 81 S1-13 Training and skills development metrics Page 83 S1-14 Health & Safety metrics Pages 77-78 S1-15 Work-life balance metrics Page 83 S1-16 Remuneration metrics (pay gap and total remuneration) Page 81 S1-17 Incidents, complaints and severe human rights impacts Page 83 * None of our Social policies are inconsistent with UN Guiding Principles on Business and Human RightsHealth and SafetyESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business modelIn H+H we believe that everyone should come to work and return home injury-free. Working in an industrial plant comes with inherent health and safety risks from the heavy equipment and substances used in the production process. Managing these risks effectively is key to main-taining a strong safety performance as well as enabling us to provide healthy, safe, and secure working conditions for all people working on our sites. This mindset is transformed into our 'ZERO HARM' strategy as disclosed in our Business and strategy section. Please refer to section Zero Harm.Material health & safety impactsIn our materiality assessment, we identified the following material health & safety impacts:Industrial accidentsThe majority of our employees work in our plants where they operate heavy machinery with a potential high risk of accidents which can result in the direct impact of life-altering injuries or death.Production materialsWhile our finished products do not pose any health risks, employees working in our plants can potentially be exposed to the following substances used in production that pose health risks:⢠Silicate dust, a known carcinogen when exposed above a known limit⢠Mineral oils that can cause dermatitis⢠Aluminium dust which is an irritant but with no recognised inhalation, oral or dermal chronic effects⢠Alkalis and acids which are harmful and can cause chronic effectsThe impacts affect employees and non-em-ployees, including self-employed people and people provided by third parties. The impacts occur in all our plants over the short, medium and long term. They are systemic due to the nature of our production. Due to the low exposure to the above substances it was not identified as a material risk. No material opportunities related to health & safety were identified in the materiality assessment.Impacts, risks and opportunities managementTo effectively manage our impacts and to main-tain a strong safety performance, we have a Group Health & Safety Policy, a strategy for 2024-2026 and a health and safety management system. In practice, we prevent safety incidents through regular training in Health & Safety, monitoring of exposure levels of substances used in production, prevention and access controls, incident manage-ment, proper PPE, continuous and regular assess-ment of plants, offices, processes, and equipment as well as target setting and progress measure-ment across the Group. S1-1 PoliciesHealth & Safety PolicyIt is our key priority to provide a safe and healthy work environment. This is the core objective of our Group H&S Policy (H&S Policy), and it is the foundation on which we prevent, mitigate, and remediate all of H+Hâs impacts elated to H&S. The COO has overall responsibility for the policy, while the regional Managing Directors are respon-sible for implementation within their countries as heads of their respective legal entities. They are supported by the regional Operations Direc-tors, local safety officers and the Group Health & Safety leadership team. The policy covers H+H employees across the entire workforce but does not include workers in the value chain. The policy is distributed via our policy management system and is prominently placed on notice boards at all sites and on the Group website. All employees are required to confirm, either physically or digitally, that they have read and understood the policy. The H&S Policy is reviewed annually by Group Management and the Group H&S Director. The review is based on our Maturity Audit process, and on input provided by the functional manage-ment teams and their employees. In daily operations, the policy is supported by topic specific standards and guidance, which addresses the risks and impacts directly. S1-4 Actions in 2024At the beginning of 2024, a new H&S strategy and vision for 2024-2026, titled ZERO HARM, was launched together with a major communica-tions campaign targeting all employees. The new strategy focuses on behavioural-based safety and on driving safety through the line to embed a culture that embraces safety across our opera-tions, moving towards our ambition of zero harm. When working with heavy machinery, even a small lapse of attention can have dire consequences. We therefore want to foster a culture, where safety is always top of mind, highlighting each individualâs responsibility for ensuring their own safety and that of their colleagues. In the event of an incident or high potential near miss incident, communication is disseminated throughout the organisation with follow-up on actions to prevent reoccurrence. To mitigate the impact related to exposure to various production materials, we provide the appropriate PPE as well as regularly monitoring exposure levels of substances All plants are subject to both internal and external audits using our Maturity Audit Model with each plant having a Safety Improvement Plan which is actively monitored to gauge the effectiveness of our actions and initiatives. To further evaluate the effectiveness of our initiatives, performance on H&S KPIs including absence and incidents is monitored monthly and reported to Group Management. In 2025 we plan to continue the focus on behav-ioural based safety via training, communication and lessons learned from incidents and high potential events. This includes training employees to have a more proactive approach to spotting potential hazards and unsafe conditions and behaviours. Our aim is to further improve our safety culture shifting from a reactive focus to a pro-active and positive one with the end goal of zero harm.S1-5 TargetsTo measure our progress on safety, we have a target related to our Lost Time Incident Frequency (LTIF) rate which was included in the short-term incentive plan for 2024 to highlight its impor-tance. Our current target concluded in 2024 and we have therefore set a new target for 2030 where we want to achieve a long-term improved LTIF rate of 2.1 compared to our historic performance. The rate is measured every year to track progress on the target. Based on the number of incidents and the initiatives we have embedded in the business, we projected an improved H&S performance to determine the specific KPI we want to reach and when. The new target is a result of the collective efforts between Group Management, the regional Managing and Operations Directors, as well as the H&S leaders across the Group.S1-14 Health and safety metricsFor the tenth consecutive year, there were no fatalities at H+H. In 2024 we saw another record result with an LTIF rate of 0.9, which is well below our 5 year target of 3.5 in 2024. We attribute our positive result to our continued focus on leading in safety for all levels of operational management, behavioural safety and close follow-up of inci-dents and high potential near-miss incidents.Short-term sickness absence has improved from last year, and we managed to reach our target level of 8 days per year per FTE. It was decided by Group management not to renew the target. 2024 2023¹ 2022¹ 2021¹Sickness absence Days per FTE 12 14 13 12Sickness absence, short-term Days per FTE 8 10 11 10Fatalities (including own workforce and value chain Headcountworkers)0 0 0 0Fatalities as a result of work-related injuries AND work-related ill health 0 0 0 0Lost-time incident frequency (LTIF) Incidents per mil. hours 0.9 *3.4 3.6 5.5Lost days to work-related injuries and fatalities from work-related accidents, work-related ill health and fatalities from ill health83 787 313 263Total recordable incidents 7 18 77 103Total recordable contractor incidents 0 0 3 3Total recordable incident rate (TRIR) Incidents per mil. hours 3 7 25 35Number of cases of recordable work-related ill health 0 0Near miss frequency rate (NMFR) Reports per mil. hours 2.757People in own workforce covered by H+Hâs %H&S Management system100% 100%* ESG figure subject to limited assurance in 20231 Not covered by the Independent Auditorâs limited assurance reportEqual treatment & opportunities for allESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business modelWe know people are different and we believe that differences are what enable us to see new oppor-tunities and create better solutions. We want all employees and stakeholders to feel that their contribution is valid, and we do not tolerate any form of discrimination. We do not have a formal link to our Group strategy and business model, as these topics are driven locally by the regional management teams.Material impactsIn the materiality assessment, we identified the following material impacts related to equal treat-ment and opportunities:Gender equality & equal payWe are committed to equal pay for equal work, promoting gender equality and ensuring equal access to resources and opportunities regardless of gender. This has an impact on our workforce as we believe there are clear links between perceived and actual equality to employee cohesion and well-being. At the moment we do not have suffi-cient data to determine whether the impact is systemic or not but further investigation is planned for 2025 in preparation for the EU Direc-tive on pay transparency. Our current belief is that we enforce equal pay for equal work in all regions. Anti-harassmentAs employers we are responsible for providing a harassment-free work environment and thus have an impact on our employees. We believe the impact to be non-systemic, occurring over the short and medium term affecting employees in our own workforce.Gender diversityThe building materials industry is not traditionally known for being gender diverse and we therefore risk fostering workplaces with low diversity. As a result we believe this impact to be systemic in nature and not related to individual incidents.Both impacts related to equal treatment occur over the short and medium term. Impact related to equal pay only affects those directly employed by H+H. Impacts related to diversity affects both our own employees, non-employees (both self-employed people and people provided by third party organisations) and contractors. No material risks or opportunities were identified in the materiality assessment. Impacts, risks, and opportunities managementWe approach the impacts related to equal treat-ment through a mixture of Group and local initia-tives. We believe a safe and inclusive work culture is best achieved by encouraging our employees to speak up and take ownership of creating a work environment they feel they belong to, with clear support from senior management. S1-1 Policies related to equal treatmentDiversity PolicyThe core objective of H+Hâs Group Diversity Policy is to foster an inclusive and open working climate where diversity is embraced and promoted. By making our principles on diversity clear, we want to mitigate negative impacts related to lack of diversity. While gender is one dimension of diversity, we fully recognise that diversity is any aspect that differentiates our employees and enables diversity of thought. This includes ethnicity, age, national origin or citizenship, religion or belief, political conviction, sexual orientation, marital status, pregnancy and maternity, disa-bility or genetic information or any other legally protected categories. We do not tolerate any form of discrimination towards employees or stakeholders. All reports of discrimination and harassment are fully investigated and may result in disciplinary actions or employment-related consequences for the perpetrator. Besides the Code of Conduct, we currently do not have any other specific Group policies aimed at eliminating discrimination or harassment.The policy applies across all of H+H and includes but is not limited to recruitment, promotion and development opportunities. The policy is commu-nicated to all new employees, and in the case of updates, to the entire workforce. The policy is also available on our Group website.The Board of Directors has adopted the Group Diversity Policy while the CEO is overall respon-sible. Regional Managing Directors are respon-sible for implementation within their countries as heads of their respective legal entities.S1-1 Policies related to human rightsHuman Rights PolicyWe strongly support human rights and employee rights as set out in the UN Universal Declaration of Human Rights and by the International Labour Organization. We have a dedicated Human Rights policy and it is further stated in our Code of Conduct which is the foundation for our compli-ance and other policies. The purpose of our Human Rights policy is to communicate â both externally and internally - H+Hâs commitments to respect human rights, as well as to provide guidance to our management and employees on appropriate behaviour when it comes to human rights issues.In short this means, that H+H: ⢠Respects freedom of association and the right to collective bargaining ⢠Supports the principle of equal opportunity and does not accept harassment or discrimination⢠Prioritises safety and adheres to all applicable local laws related to ensuring proper working conditions⢠Does not accept human trafficking, the use of child labour and the use of forced or compul-sory labourMany aspects of our business touch on human rights, including working conditions, health and safety, and data privacy. In addition to the Code of Conduct and Human Rights policy, this is reflected in many of our other policies, as outlined in our overview of our sustainability-related policies and systems in the Governance section. Although the materiality assessment determined that there are no material human rights impacts, risks, or opportunities for H+H, we continuously assess the risk of human rights violations. We believe the inherent risk for human rights viola-tions is low due to the nature of the business and as we only conduct business in European coun-tries with strong institutions. Most of the people working in our plants are directly employed by H+H, and consequently, we can ensure that our staff are treated fairly and in accordance with the above principles. Temporary staff (non-em-ployees) are either employed directly by us or via reputable agencies which adhere to relevant employment legislation. To mitigate risks for viola-tion of human rights throughout the value chain, we have a Code of Conduct for Suppliers which outlines our expectations for our suppliers and contains provisions to address human trafficking, forced and compulsory labour, the health & safety of workers and precarious work. A description of our Code of Conduct and Code of Conduct for Suppliers can be found in the Govern-ance section. Engagement with own workforce on this and other employment related issues is described in the next section under S1-2. S1-4 Actions in 2024Guided by the Diversity Policy, all managers are expected to treat employees equally and not discriminate in matters such as recruitment, promotions, development opportunities or any other personnel decisions. When recruiting we source candidates of different genders when-ever possible, and we seek to create a dynamic organisation with a diverse mix of cultures, backgrounds, skills, and ways of thinking. When employing external recruitment consultants, they are required to submit their diversity policies and where possible we ensure that all recruitment short lists have an appropriate gender balance. If two candidates of different genders are equally qualified for the position, the candidate of the under-represented gender, if any, will be chosen. This principle is applied across the Group. No additional actions have been planned for 2025.Due to the small size of the management levels, turnover in these roles is also naturally low, making it difficult to track effectiveness of actions. S1-5 TargetsGroup Management have decided to not set any targets related to managing material negative impacts, as we currently narrow our focus on safety. There are currently no formal processes in place to track the effectiveness of our policies and actions, but the need for setting targets and implementing processes is regularly assessed.Board diversity targetsOur Group Diversity Policy is applied when evalu-ating the composition of H+H International A/S' management. Pursuant to section 139c of the Danish Compa-nies Act, we aim to have equal gender distribution in our Board of Directors, as defined by the Danish Business Authority. This was reached at the Annual General Meeting on 31 March 2022, and the target is still met with the current composition of 2 female members and 5 male. A new formal gender target under the law will be set if the gender composition changes, so that the gender distribution no longer is considered equal as per the legal definition. The Board seeks to be diverse in the broadest sense relevant. When deciding whether to propose re-election or not of board members as well as when searching for candidates to propose as new board members, the decision is based on filling out any competence gaps or strengthening specific competences in the Board based on the collective competences that the Board finds rele-vant at the time considering H+H's strategy, chal-lenges and opportunities. In addition to looking at competences in the form of professional experience and education, the Board also recog-nises the benefits of diversity in terms of cultural background, gender, age etc. Currently, the Board of Directorsâ diversity in respect of gender and age could improve, hence if two candidates for a board position are equally competent, the candidate who is female and/or younger than the average age of the board members will be preferred.You can read more about board diversity in the ' Board Diversity' section under 'Corporate Govern-ance'.For gender diversity in the two management levels in the parent company below the Board, we have due to H+H International A/Sâ relatively small organisation, opted to use the legal exemption for companies with less than 50 employees and not have a gender diversity policy or related gender diversity targets to increase the proportion of the underrepresented gender, cf. the Danish Compa-nies Act, Section 139(c)(7). The parent company has less than 25 employees and a high degree of retention, and thus only very few recruitments over time, making it impossible to pursue gender targets within a meaningful timeframe. S1-6 Characteristics of H+H employees &S1-7 Characteristics of non-employeesThe gender ratio of our workforce remains stable with an even split among workers in office envi-ronments and low diversity among workers in our plants and other non-office environments. Due to the continued need for organisational streamlining following the downturn in the construction industry our turnover rate remains high, however not as high as 2023. We are however pleased to see that our voluntary turn-over ratio remains stable at 12% compared to 13% last year, reflecting the regional efforts to ensure good work-life balance and working conditions.Headcount by country GermanyGermany 41388PolandPoland 608United Kingdom 228United Kingdom228413Other 88OtherTotal 1.337608Turnover Unit 2024 2023¹Employee turnover ratio % 22% 40%Employee turnover Headcount 280 6051 Not covered by the Independent Auditorâs limited assurance reportHeadcount by gender Office workers Non-office workers TotalMale 198 917 1,115Female 171 51 222Other 0 0 0Not reported 0 0 0Total 369 968 1,337Not Female Male Other disclosed TotalNumber of employees 222 1,115 0 0 1,337Number of permanent employees 212 979 0 0 1,191Number of temporary employees 10 136 0 0 146Number of non-guaranteed hours employees 0 2 0 0 2Number of non-employees 2 15 0 0 17United CWE region HQ PolandKingdom TotalNumber of employees 483 18 608 228 1,337Number of permanent employees 473 18 473 227 1,191Number of temporary employees 10 0 135 1 146Number of non-guaranteed hours employees 2 0 0 0 2Number of non-employees 16 1 0 0 17S1-9 Diversity metricsThe underrepresented gender in top management2024 2023¹Gender diversity, top management (entire H+H Group) 0% 0%Females / total HC 0/6 0/71 Not covered by the Independent Auditorâs limited assurance reportAge distribution in the GroupThe age distribution of our workforce is in line with other industries and society in general and is therefore in line with our expectations.Age distribution 2024 2023¹Below 30 9% 7%Between 30 and 50 51% 48%Above 50 40% 45%S1-16 Remuneration metricsDuring 2024 the gender pay gap, defined as the difference of average pay levels between male and female employees, decreased from -6% to -17%. In general, we believe that it is difficult to assess the development in the gender pay gap due to the mix of job functions and job levels. However a big contributor, is the composition of our workforce, where majority are non-office workers who are traditionally male and where salaries are lower. Additionally, as we operate in countries with mate-rially different salary levels, comparison across regions can be difficult. 2024 2023¹Gender pay gap (average) -17% -6%CEO pay ratio 34 29However, we are working on getting better trans-parency of the differences in salary levels. The first step is the implemention of a Group job architecture as preparation for the implementa-tion of the EU directive on Pay Transparency. This is planned for 2025.The CEO pay ratio, defined as the ratio of the highest-paid individual to the median annual total remuneration for all employees has increased from 2023 to 2024. We attribute this to the vari-able components of the CEO pay, as described in the Remuneration Report.Training & skills development and working conditionsESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business modelH+H seeks to provide a safe and attractive work environment for our employees during all stages of their career. We want to attract and retain qual-ified and motivated employees who can support our business ambitions. To enable this, we offer our people training and development to enhance their skills and develop their careers while also providing opportunities to shape their work when-ever possible. Please refer to the section 'HOME' under 'Stra-tegic Focus Areas' for the link to our business strategy.The following material impacts related to training and skills development and working conditions were identified in the materiality assessment:Training and skills developmentLack of proper training and skills development can impact the employeeâs ability to work and enhance the risk for compliance violations and business developments. By providing attractive training and development opportunities that help our employees realise their potential and ambi-tions, we have a positive impact on our workforce. This impact is systemic and occurs in our own operations over the short, medium, and long-term periods for both employees and non-employees, including self-employed people and people provided by third-parties.Work-life balance, working conditions and social dialogueAs employers we naturally have an impact on work-life balance and working conditions for all employees as well as non-employees. This includes the possibility to take leave or work flexibly and providing space and opportunity for social dialogue with employees. The impacts occur over both the short, medium and long term and are systemic as they covers all sites in all regions. No material risks or opportunities were identified. Impacts, risks, and opportunities managementManaging our impacts is key to ensuring that we have the workforce we need to achieve our business ambitions. Performance, competence, and talent management is handled locally where managers are encouraged to keep an open dialogue with employees and to continually assess the need for training. S1-1 PoliciesH+H does not have a policy that specifically addresses training and skills development. In addition to required upskilling or renewal of certif-icates, we believe that performance, talent, and competence management should be managed in regular dialogues between managers and employees. For this reason there is currently no plan to introduce a Group policy.Our group principles relating to working condi-tions are described in our Human Rights Policy. On a practical level these are mainly governed by regional policies and employee handbooks, including rules on leave and flexible working. The duration of leave differs from region to region and is in line with local legislation. The opportunity to work flexibly also varies from region to region and depends on the nature of the job. Employees are encouraged to provide feedback and voice concerns to ensure proper work-life balance and whenever possible work processes are designed and improved in collaboration with the relevant internal stakeholders.S1-2 Processess for engagementIn order to create an attractive working environ-ment, we regularly engage in dialogue with our employees to understand their perspectives and needs. This includes employee surveys for selected employees, manager 1:1s, as well as local Q&A sessions with management. The Group HR Director has overall operational responsibility for ensuring that engagement on actual and potential impacts happens and that actions are initiated.All employees can raise their concerns directly to a manager or through our whistleblower system. The whistleblower system is described in the Governance section.S1-3 Processes for remediationWe aim to have a culture where all employees feel comfortable about speaking up if they have concerns or issues. There is currently no formal-ised process in place where we evaluate this. Majority of our whistleblower reports are made either to HR or directly to a manager and we view this as a sign that employees trust the structures and processes we have in place. Information on the protection of whistleblowers and the Whistleblower Policy can be found in the Governance Section. S1-4 ActionsA performance management framework has been launched for a pilot group of employees, with the intention to roll out the program further during the coming years in all regions. Through performance management we want to support achievement of the organisationâs goals while also fostering indi-vidual development and performance. As launch of the framework is still in early stages, tracking of effectiveness is also still in the planning phase. No other specific actions have been taken in 2024 in relation to managing impacts related to working conditions and training & skills development. Feedback and perspectives of our own workforce are taken into account when planning actions.S1-5 TargetsTo currently focus our resources on other priori-ties, Group Management have decided to not set any targets related to managing material negative impacts. There are no processes at the moment in place to track the effectiveness of our policies and actions, but the need for targets and processes is regularly assessed.S1-8 Social dialogueIt varies from country to country and depending on local legislation, whether or not employees are represented by a local organisation such as a workersâ council or work environment organisa-tion. As we have not been met by a demand from our employees, there is currently no agreement between H+H and a European Works Council (EWC), a Societas Europaea (SE) Works Council, or a Societas Cooperativa Europaea (SCE) Works Council. Majority of employees' working terms and employment conditions are decided directly between the employee and the company and generally not by collective bargaining agreements.S1-13 Training and skills development metricsWe report on the average number of training hours within H&S and compliance training as this is where we have group wide standardised processes. For personal training and skills devel-opment, this is managed locally within each region.S1-15 Work-life balance metricsAll employees are entitled to take family-related leave, and in total 3% took leave. No person who requested to take leave was denied the opportu-nity. S1-17 Incidents, complaints and severe human rights impactsDuring 2024 there were no work-related inci-dents of discrimination reported to HR or via the whistleblower system on the grounds of gender, racial or ethnic origin, nationality, religion or belief, disability, age, sexual orientation, or other relevant forms of discrimination involving internal and/or external stakeholders across operations in the reporting period. This includes incidents of harassment as a specific form of discrimination.No cases of human rights incidents (e.g., forced labour, human trafficking, or child labour) were identified during 2024.Social dialogueWorkplace representation (EEA only)Coverage Rate(for countries with >50 empl. representing >10% total empl)0-19% Poland20-39%40-59%60-79% Germany80-100%Total Male FemaleEmployees who participated in regular performance and career development reviews 51% 52% 50%Average number of training hours 7 6 11Total Male FemaleEmployees entitled to take family-related leave 100% 100% 100%Employees that took family-related leave 3% 2% 7%Social accounting policyControlsData regarding number of employees and gender are generated from our HR and Payroll systems. Data regarding fatalities and accidents are reported through the operations management system that follows normal financial processes to ensure consistency and is validated against the external financial reporting. The data is verified through internal controls, analysis, benchmarks, and monthly business meetings. Unless stated no numbers or metrics have been validated by any external body other than the assurance provider.Definitions⢠Own workforce is defined as employees as well as non-employees, excluding contractors. Unless otherwise described, both employees and non-employees are subject to the material impacts related to Own Workforce⢠Headcount is defined as all employees, both fulltime and part-time, as well as active and non-active. The numbers reported for both employees and non-employees are as of 31 December 2024 ⢠FTEs (fulltime equivalents) are defined as all employees and non-employees, excluding those on leave⢠Employees are defined as those being directly on our payroll. Non-employees include both self-employed people and people provided by third parties⢠Group Management includes the Executive Board and senior executives at H+H International A/S.⢠Gender diversity, top management is defined as Group Management and the regional Managing Directors⢠Gender pay gap is calculated as difference of average pay levels between female and male employees, expressed as percentage of the average pay level of male employees. Basis for average pay is the hourly wage of all female and male employees, converted to DKK using the average exchange rates for the year⢠CEO pay ratio is calculated as the CEO compen-sation, as reported in the Remuneration Report, divided by the median salary of all other employees⢠Employee turnover ratio is calculated as total leavers divided by average headcount for the year. Only people on our payroll are included⢠The number of employees who took leave is calculated as the total number for leaves commenced between 1 January 2024 and 31 December 2024. Employees are only counted once, even if they have had multiple leave periods during the year⢠Employee representation in relation to Social Dialogue is defined as representation by works council, work environment organisation or employee committees⢠Training is defined as H&S related training and compliance training. When calculating the average number of hours per gender, we have used the gender split for each country on the completion rates of the compliance training offered⢠A fatality is a work-related injury that results in death. The number reported includes both employees, non-employees, contractors, and visitors ⢠Lost-Time Incident Frequency (LTIF) meas-ures the frequency of Lost-Time Incidents and fatality incidents per million hours divided by total hours worked. Working hours is based on actual time registrations as well as estimates. The number reported includes own workforce⢠Total Recordable Incident Rate (TRIR) meas-ures the frequency of all work-related injuries and fatality incidents per million hours divided by total hours worked⢠Near Miss Frequency Rate for employees (NMFR) measures number of Near Miss Reports per million hours divided by total hours worked following the OSHA guidelines⢠Sickness absence is calculated as total sick days divided by average number of FTEs during the year⢠Short-term absence is defined as sick leave where H+H provides the primary compensation to the employee. Once the primary compensa-tion transitions to be provided by a public body, the absence is considered long-termGovernance informationH+H is committed to acting professionally, responsibly, and with integrity in all our business dealings and relationships. List of material disclosure requirements Page referenceG1 - Business ConductGOV-1 The role of the administrative, management and supervisory bodies Pages 36-42, 85G1-1 Business conduct policies and corporate culture Page 86 G1-3 Prevention and detection of corruption and bribery Pages 86-87 G1-4 Incidents of corruption or bribery Page 87 GOV-1 The role of the administrative, management and supervisory bodiesThe Board of Directors is responsible for the overall strategic direction and management of the Group, and that an adequate control framework exists to ensure proper business conduct. The Executive Board is responsible for the day-to-day management including implementation of a policy framework and related controls to support a responsible corporate culture. In our Board of Directors and Executive Board we have members with management experience within compliance and governance work, auditing and controlling.Presentations of the individual members of the Board of Directors and Executive Board can be found in the Corporate Governance section.Impacts, risks and opportunitiesAs part of the construction industry we face risks associated with bribery, corruption and anti-com-petitive practices, due to the large number of contractors, suppliers and other entities in the value chain and the competitive bidding process to secure private - and to a lesser extent - public contracts.H+H mainly sells through buildersâ merchants (wholesalers) and as a building materials producer rather than a construction company, we have limited direct involvement in negotiations and bid proposals. In addition, we only operate in Europe within countries that have low risks of bribery and corruption, ranking between 1 (Denmark) and 53 (Poland) out of 180 countries in the Transparency International Corruption Perceptions Index 2024. We therefore consider the overall risk of corrupt behaviour to be relatively low.In the materiality assessment we identified the following impacts related to business conduct: Corporate cultureWe actively want to foster a culture of integrity and transparency. Setting the tone at the top is important and by leading by example we impact the way our employees experience and contribute to our corporate culture. This impact occurs in our own operations over the short, medium and long term.Unethical business practicesThe main risk of corrupt behaviour for H+H concerns inappropriate types or levels of enter-tainment, gifts or payments (kick-backs) provided to our employees from potential or actual suppliers or provided by our employees to poten-tial or actual customers with the intent of gaining special consideration or a business advantage. The impact occurs in our own operations over the short, medium and long term.Whistleblower protectionIt is important for us to foster an open culture where employees, business partners and other stakeholders can raise important matters. Protecting whistleblowers is integral to ensure fair investigations and avoid retaliation. The impact occurs in our own operations over the short, medium and long term. Impacts, risks and opportunities managementWe manage these impacts by continually working to strengthen our compliance culture. This is done through our policies, whistleblower system, training and awareness, by conducting audits, and through leadership communication and behaviour that sets the tone from the top on conducting business with integrity.G1-1 Business conduct policies and corporate cultureCode of Conduct and Code of Conduct for SuppliersH+Hâs Code of Conduct is the foundation of our compliance programme and sets the tone for our business integrity and ethical principles. It is complemented by the Code of Conduct for Suppliers which outlines our expectations to suppliers to conduct business in a legal, sustain-able, ethical and socially responsible manner.The Code of Conduct and Code of Conduct for Suppliers include our principles related to e.g. environment and climate, health and safety, diver-sity, non-discrimination, personal data protection, conflicts of interest, fair competition, anti-corrup-tion, responsible tax and data ethics. The Code of Conduct for Suppliers is provided to all major suppliers in each region with a request to confirm complianceThe Board of Directors approves the Code of Conduct and the Executive Board is responsible for the implementation of the policy principles. The COO is responsible for the Code of Conduct for Suppliers and its implementation. Employees can access these policies in H+Hâs policy manage-ment system. Employees without direct access are provided with either paper copies or access via shared computers or notice boards. Every employee at H+H is required to read and adhere to the H+H Code of Conduct. Both of these policies are reviewed regularly and updated in line with relevant legislation, and they are available at all H+H websites.The Board of Directors is ultimately responsible for oversight of H+Hâs corporate culture and business conduct. The Executive Board and other managers in the Group are responsible for imple-mentation of the policy principles and leading by example to drive a culture of business integrity and discuss openly how to follow the principles in the Code of Conduct and the underlying specific policies. To support our commitment to respon-sible business conduct, the regional Managing Directors are required to sign a declaration every quarter stating that to the best of their knowledge, all H+H entities in their region are conducting business in a way that is compliant with all appli-cable H+H policies. Whistleblower policy & systemWe encourage all reporting of any suspected wrongdoing. This can be done to a relevant H+H manager, to HR or via our public online whistle-blower system where reports can be done by name or anonymously. The system is accessible in all our languages and can be accessed both from H+Hâs intranet for employees and from all H+H websites. The system is provided by an independent third-party provider of whistle-blower solutions and reporters have the option of choosing if they want to report to regional HR, Group HR or Group Legal.All good faith reports of suspected material violations of the Code of Conduct or any under-lying H+H policies and violations of law within the defined scopes are investigated. We take great care to ensure the confidentiality of the reporterâs identity and to avoid any potential conflicts of interest when establishing the investigation team and the decision maker. Independent, external legal counsel or other relevant experts are also used for investigations when relevant. Good faith whistleblowers of matters within scope are protected from any kind of retaliation or discrimi-natory or disciplinary action as a result of submit-ting a report. We assess the risk of retaliation as part of the investigation procedure and encourage reporters to report any retaliation, they may expe-rience. Outcome of investigations are reported to the Audit Committee.H+Hâs Whistleblower Policy is available in the whistleblower system and provides information on how to report suspected misconduct, how reports are handled and what is deemed inside and outside scope. The Board of Directors approves the Whistleblower Policy while the Executive Board is responsible for the implementation. To create awareness and educate employees on what can be reported and how, all employees are asked to read and confirm reading of the policy. Training in the whistleblower policy and system was provided to part of the employees during 2024.Tax PolicyH+H has adopted a group Tax Policy. The policy is the foundation for the common tax approach for the H+H Group. Our ambition is to always apply best practices and act in accordance with applicable legislation on tax computation and tax reporting to ensure that we pay the right amount of tax at the right time in the countries where we operate. In close collaboration with tax advisors, we monitor updates and changes to tax legislation to assess the impact on a Group and country level. G1-3 Prevention and detection of corruption and briberyH+H has zero tolerance for corruption and bribery, and we condemn corrupt behaviour and business practices. This is underpinned by our Anti-corruption Policy which provides principles and information related to bribery, facilitation payments, donations, and entertainment and gifts, as well as the potential consequences for violations. The Executive Board is responsible for implementation of the Anti-corruption Policy which is reviewed regularly and updated in line with relevant legislation. The policy is available in all our company languages and is communicated to all office employees via our policy management system with a request to confirm that they have read the policy. The policy includes relevant sector specific practical examples to train and raise awareness of business situations that may involve bribery or corruption and the behaviour expected of H+H employees in such situations. Currently there is no Group definition of which functions are deemed to be at risk. No training in anti-corruption and bribery was provided to any H+H employees in 2024, including Group Management.Internal controls are set up to manage any poten-tial corruption risks present on the sales and procurement side. Escalation procedures are in place and communicated within the Group. Investigations follow the process described in the Whistleblower section.Metrics and targetsWe believe that having a diverse Board of Direc-tors is linked to better governance of our busi-ness. Target setting related to this is described in the Corporate Governance section and the Social section. Group Management believes that for now this target is sufficient and has decided not to set any other targets in relation to Governance.G1-4 Incidents of corruption and briberyDuring 2024, three whistleblower reports were found to be within scope, however none regarded corruption and bribery. H+H did not receive any injunction, ruling, conviction, fine or similar for violation of anti-corruption or anti-bribery laws.ESG & sustainability-related policies and systemsArea(s) of Policyapplication DescriptionCode of Conduct Overarching Our Code of Conduct describes the core values and principles, Read more on page 86employees are expected to follow.Code of Conduct Overarching The policy outlines our expectations to suppliers to conduct busi-Read more on page 86for suppliersness in an ethical, legal, and socially responsible manner.ESG Policy Overarching The policy outlines our environmental, social, and governmental Read more on page 65commitments.Human Rights Social The policy outlines our commitments to respect human rights. Read more on page 79PolicyDiversity PolicySocial The core objective of the Group Diversity Policy is to foster an Read more on page 78inclusive and open working climate where diversity is embraced and promoted. We encourage and support diversity at all levels and express our lack of tolerance towards any form of discrimination.Health & Safety Social The policy describes our overarching principles for health and Read more on page 77Policysafety in H+H.Anti-corruption Governance The policy provides principles and information related to bribery, Read more on pages 86-87Policyfacilitation payments, donations, and entertainment and gifts.Data Ethics PolicyGovernance The purpose of this policy is to set out the data ethical principles for Read more on page 39H+Hâs processing of data so that the processing is not only legal, but also ethical.Tax PolicyGovernance The policy describes our internal governance and management of Read more on page 86all matters related to tax. Whistleblower Governance The policy includes information on how to report suspected Read more on page 86Policymisconduct, how reports are handled and what is deemed inside and outside scope.</mrv:SustainabilityReport>
<mrv:CorporateGovernanceReport contextRef="ctx-1" id="f1__s8__7__11" xml:lang="en">Corporate governanceGovernance structure - GOV-1The general meeting is the supreme governing body of H+H Inter-national A/S where shareholders can exercise their rights. At the annual general meeting shareholders consider the annual report, the remuneration report, the election of Board of Director members and the election of auditor, changes to the Articles of Association as well as any other agenda items proposed by the Board of Directors or shareholders. The authority of general meetings and the formalities relating to general meetings are set out in the companyâs Articles of Association available on the Group website.Election of a member to the Board of Directors requires simple majority of votes, and decisions to make amendments to the Articles of Association requires at least two-thirds of the votes cast as well as of the share capital represented at the general meeting.H+H International A/S has a two-tier management system consisting of the Board of Directors and the Executive Board. The Board of Directors supervises the work of the Executive Board and is respon-sible for the Groupâs strategy and overall organisation, management, and capitalisation. The Executive Board is responsible for the execu-tion of the strategy and the day-to-day management. The organisa-tion and operation of the Board of Directors are set out in the Rules of Procedure for the Board of Directors, and similarly the organisation of the Executive Board and its co-operation with the Board of Direc-tors are set out in Rules of Procedure for the Executive Board. The current Articles of Association state that the Board of Direc-tors must consist of 4-8 members elected at a general meeting. Currently, the Board of Directors consists of 7 members. The term of all board members expires at each annual general meeting, but each member may be re-elected for a new term. It is stipulated in the Arti-cles of Association that a board member may not also be a member of the Executive Board. To support the work of the Board of Directors, the Board of Direc-tors has established three board committees, namely the Audit Committee, the Remuneration Committee, and the Nomination Committee. The board committees are not authorised to make inde-pendent decisions but shall report and provide recommendations to the Board of Directors. The members of each board committee, including the committee chair, are each appointed by the Board of Directors on the basis of their specific competences.Key activities 2024 - Board of Directors - GOV-1⢠Review and update of strategy and business plan ⢠Monitoring of the execution of the Group health & safety strategy 'ZERO HARM'⢠Monitoring of the execution of the new Group operational model HOME, including approval of related CAPEX projects to increase production capacity for the involved plants⢠Approval of sale of idle assets related to the plant closures executed as part of plant network efficiency actions, including approval of the sale of buildings and land in Warsaw after closure of the Warsaw plant⢠Monitoring of the execution of Project ONE aimed at integra-tion and harmonisation of the German business and financial processes to release synergies stemming from the acquisitions since 2018⢠Monitoring of the execution of measures and related CAPEX imple-mentations in pursuit of the CO targets set under the Zero Carbon 2strategy ⢠Review of IT and cyber security, including cyber security training and readiness ⢠Unplanned board meetings to monitor the measures taken to resolve a sudden ordered stop to the operation of all autoclaves at the Borough Green plant in the UK⢠Board evaluation process facilitated by an external expertKey activities 2024 - Audit Committee - GOV-1⢠Oversight of enterprise risk management, including risk categories and revision of the operational hedging policy⢠Monitoring of group insurance strategy, coverage, and pricing⢠Monitoring sustainability reporting process, including review of the double materiality assessment and planning of the first full limited assurance of the sustainability statement etc. ⢠Monitoring financial annual and interim reporting process, including treatment and estimates, accounting policies and the integrity of the reporting process, as well as review of the audit strategyKey activities 2024 - Nomination Committee - GOV-1⢠Recruitment of new CFO ⢠Arrangement and execution together with the assistance of an external expert of the annual evaluation of the Board and of the Executive Board and their co-operation as well as the Board's collective and the board members' individual competences⢠Arrangement of recruitment processes for potential new board members to be proposed for election at the next annual general meeting in April 2025 (ongoing into 2025)Key activities 2024 - Remuneration Committee - GOV-1⢠Annual review of the Remuneration Policy for the Board of Direc-tors and the Executive Board and presentation to the Board of Directors of proposed changes which were presented at the annual general meeting in April 2024⢠Review of the Remuneration Report for 2023⢠Review of and proposal for the fees for 2024 to the Board of Direc-tors and presentation to the Board of Directors of the fee proposal which were presented at the annual general meeting in April 2024 ⢠Review of the actual remuneration for 2023 to the Executive Board and proposal for adjustments to the Board of Directors⢠Review of outcome under the incentive programs vesting in 2024 and proposal to the Board of Directors of KPIs and targets for the short-term and long-term incentive programmes starting in 2024Attendance rates for board and committee meetings in 2024Member Meeting Audit Meeting Nomination Meeting Remuneration Meeting BoardsinceAttendanceCommitteeattendanceCommitteeattendanceCommitteeattendanceKent Arentoft 2013 8/9 1/1 1/1Miguel Kohlmann2018 8/9 1/1 1/1Stewart A Baseley2010 9/9 1/1Volker Christmann2017 9/9 4/4Kajsa von Geijer2022 6/9 4/4 1/1Helen MacPhee2019 8/9 4/4Jens-Peter Saul2023 8/9 1/1 1/1 Chair Vice Chair Member* The participation rates for 2024 were below normal for most board members, which is due to there being four unplanned board meetings each held with very short notice over a one week period in July 2024, where many board members were on holiday. Looking at the pre-planned five board meetings, the attendance rates were at 100% for all board members, except for Kajsa von Geijer with an attendance rate at 80% (i.e. absent from one of five board meetings).Board diversity - GOV-1The Board seeks to be diverse in the broadest sense relevant, recog-nising the benefits of diversity in terms of cultural background, gender, age etc.. When deciding whether to propose re-election or not of board members as well as when searching for candidates to propose as new board members, the decision is based on filling out relevant competence gaps or strengthening specific competences in the Board. Board diversity by the end of 2024*Nationality & residenceBrazil (1) / Denmark (1) / Germany (3) / Sweden (1) / Switzerland (1) / United Kingdom (3)Board tenure (years)1-5 (2) / 6-10 (3) / 11-15 (2)Board independence rate86% (2023: 86%)Age distribution (years)55-59 (2) / 60-64 (3) / 65-69 (2)GenderFemale (2) / Male (5) - average ratio of 29%Educational backgroundsBusiness Administration, Controlling and Auditing / Mechanical Engineering / Economics / Strategy and Management / Financial and Management Accounting / Human Resource ManagementCurrent Board competence profile - GOV-1Individual competences:⢠International and business-minded⢠Analytical and strategic⢠High integrity and accountability⢠Team-oriented * Two board members have dual citizenshipCollective board competences:⢠International top management ⢠Production & sales in building industry⢠Supply chain management⢠Health & safety⢠Sustainability / ESG⢠HR and compliance⢠Finance and accounting⢠Enterprise risk management⢠IT, AI and cyber security management⢠Strategy development⢠Change management⢠M&A, divestments etc.⢠Investor relations and capital markets ⢠Corporate governanceH+H has since the annual general meeting on 31 March 2022 had equal gender distribution in our Board of Directors, as defined by the Danish Business Authority. For this reason, no formal gender target under the law is set. However, when the Board as part of its annual board evaluation decides to want to change its composition, the possibility to improve especially the Boardâs gender diversity and age profile will naturally be pursued. Hence, If two candidates for a board position are equally competent, the person improving the gender and/or age diversity will be preferred.Board evaluation - GOV-1The Board of Directorsâ annual evaluation procedure for 2024 was conducted by an external expert who had one-on-one meetings with each member of the Board of Directors as well as with each member of the Executive Board. The Board then held a board meeting without the presence of the Executive Board where the external expert presented input and findings followed by private discussions in the Board of Directors to discuss the findings and agree on conclusions and action points. The issues evaluated included discussions and decisions regarding e.g.:⢠the board composition (diversity gaps in regard to competences, gender, age, board continuity etc. and the size of the Board)⢠the board structure (review of the chairship and the board committee structure)⢠the board performance (collective and individual performance)⢠co-operation between the Board and the Executive Board (collec-tive and individual performance, co-operation inside and outside of board and board committee meetings) and⢠potential changes to the size of the Board, the individual board members, inclusion of new board members and related candidate profiles and use of headhunters etc.The expert summarised the work of the Board as being based on a high level of trust and collaboration. Board members were all well prepared and had a high participation rate for all planned meetings, indicating that no board members were overboarded. The Board found having a Chairship to be an effective way to manage the Board. The Board also found there to be good and relevant diversity in respect of competences and the spread in board tenure, ensuring both continuity and renewal. The co-operation between the Board and the Executive Board functioned well and the Executive Board said it benefitted from having board members that collectively repre-sented very diverse and relevant competences with regard to special subject matters, industries, country market experience, and cultural insights. RemunerationRemuneration of the Board of Directors and the Executive Board is paid in line with the H+H Remuneration Policy for the Board of Directors and Executive Board adopted by the general meeting. The Remuneration Policy will be reviewed and presented for approval at the annual general meeting for 2025. H+H reports on remuneration in an annual Remuneration Report presented to the shareholders at the annual general meeting for an advisory vote. The Remuneration Report for 2024 and the present Remuneration Policy are available on the Group website. Annual corporate governance statementAs a listed company on NASDAQ Copenhagen, H+H International A/S reports annually on the recommendations on corporate govern-ance. These are issued by the Committee on Corporate Governance together with a description of the internal control and risk manage-ment system relating to the financial reporting as required under Section 107(b) of the Danish Financial Statements Act. The reporting is done in an annual Corporate Governance Statement available on our Group website. We comply with all recommendations. Report on data ethicsThe following makes up the data ethics report required under Section 99(d) of the Danish Financial Statements Act.H+Hâs Data Ethics Policy has as its overall objective to encourage and motivate all our employees to handle data with the utmost care and respect and to follow our guiding principles on data use and ethics. We are committed to complying with all applicable personal data protection laws. We run internal audit controls to secure compliance with both information security and data protection requirements, and all employees developing, purchasing or otherwise working with technology and data science-based uses of data must be informed about the data ethics principles. We do not purchase, sell or broker data or otherwise profit from separate data transfers from or to third parties. We do not currently carry out data processing using artifi-cial intelligence, such as machine learning, as a natural part of our business. Our Data Ethics Policy can be found on the Group website, Board of DirectorsKent Arentoft, Chair Male. Born 1962. Danish. Chairman of DSVM Invest A/S and subsidiaries. IndependentMember and Chair since 2013Chair of the Nomination CommitteeH+H shareholdingHolds 60,000 H+H shares via a company he controlsNo changes made in 2024Areas of expertiseBroad organisation and management experience in international companies in the building materials and contracting sector, particularly within strategy development and M&A transac-tions. Other management positions and directorships Chairman of MAAG Gear AGChairman of Geveko Group ABBoard member of Igne Group Limited.Miguel Kohlmann, Vice ChairMale. Born 1962. German/Brazilian.Professional board member and advisor.IndependentMember since 2018 and Vice Chair since 2024Chair of the Remuneration CommitteeMember of the Nomination CommitteeH+H shareholdingDoes not hold any H+H sharesNo changes made in 2024Areas of expertiseExtensive management experience in global building materials production and other global industries. Worked in controlling, sales, production, and general management. Other management positions and directorships Chairman of the Board of Directors of Archroma Holdings SARL (Luxembourg) and NMC International S.A. (Luxembourg). Member of the Advisory Board of Pfleiderer GmbH (Germany) and Paul Bauder GmBH (Germany).Stewart Antony BaseleyMale. Born 1958. British.Chairman of Highlander Partners (CEE) and board member of five subsidiaries (Romaniaand two subsidiaries (UK)Not independent (more than 12 years board tenure)Member since 2010Member of the Nomination CommitteeH+H shareholdingHolds 22,500 H+H sharesNo changes made in 2024Areas of expertiseExperience in the international housebuilding industry and the developer industry, particularly in the UK, as well as international management experience. Other management positions and directorships Chairman of Home Builders Federation and board member of four subsidiaries (UK)Chairman of Troy Homes Limited (UK)Patron of Children with Special Needs Foundation (UK)Volker Christmann Male. Born 1957. German. Managing Director, Senior Vice President Insulation Central Europe, Member of Group Management of ROCKWOOL A/S. Chairman of the Board of Directors of two companies in the ROCKWOOL Group, Managing Director of five companies in the ROCKWOOL Group and member of the Board of Directors of ROCKWOOL Foundation. IndependentMember since 2017Member of the Audit CommitteeH+H shareholdingDoes not hold any H+H sharesNo changes made in 2024Areas of expertiseExtensive experience within the building materials production sector of Central Europe, particularly in Germany, as well as within financial auditing and controlling.Other management positions and directorshipsChairman of the Board of Directors of BuVEG (Bundesverband energieeffiziente Gebäudehülle) (Germany). Member of the Board of Directors of FIW (Forschungsinstitut für Wärmtechnik) (Germany).Kajsa von GeijerFemale. Born 1964. SwedishProfessional board member and advisor. IndependentMember since 2022Member of the Audit CommitteeMember of the Remuneration CommitteeH+H shareholdingDoes not hold any H+H shares No changes made in 2024Areas of expertiseInternational experience within strategic and operational HR, sustainability, ESG and general compliance.Other management positions and directorshipsMember of the Advisory Committee of Solix Group AB (Sweden) and of one its subsidiaries.Helen MacPheeFemale. Born 1962. British.Senior Vice President of Finance, AstraZeneca plc (UK).Independent Member since 2019 Chair of the Audit CommitteeH+H shareholdingDoes not hold any H+H shares No changes made in 2024Areas of expertiseExtensive experience within strategic and operational finance. International experience in change management, financial oversight and control, management of large-scale ERP imple-mentation projects, governance, and risk frameworks.Other management positions and directorshipsN/AJens-Peter SaulMale. Born 1966. German/British.CEO of Ramboll Group A/S, DenmarkIndependentMember since 2023Member of the Nomination CommitteeMember of the Remuneration CommitteeH+H shareholdingHolds 6,259 H+H shares No changes made in 2024Areas of expertiseExtensive international experience in particular within strategy development and ex-ecution to accelerate organic and acquisitional growth and to maximise investments, as well as broad insights into sustainability and the green energy transition. Experi-ence from diverse industries such as infrastructure, energy, construction, investment, manufacturing and trading.Other management positions and directorshipsMember of the Board of Directors of Cubico Sustainable Investments Limited (UK).Jörg Brinkmann Male. Born 1979. German. CEO since 2022 H+H shareholdingHolds 21,300 shares7,300 were purchased in 2024Background2018-2022: Managing Director, Europe of James Hardie Europe, GmbH (Germany)2014-2018: CEO of Fermacell, GmbH (Germany)2011-2014: Sales Director of Fermacell, GmbH (Germany) 2005-2011: Head of Marketing at Xella Group, GmbH (Germany)EducationMSc (Business Administration)PhD EconomicsOther management positions and directorshipsN/ABjarne PedersenMale. Born 1977. Danish.CFO since 2024H+H shareholdingHolds 10,141 shares No changes made in 2024Background2019-2024: Chief Strategy Officer in H+H (Denmark)2014-2019: Investor Relations and Business Development, H+H International A/S (Denmark)2008-2014: Various IT and Finance postions in H+H International A/S (Denmark)2006-2008: Global Cash management in Danske Bank (Denmark)2005-2006: IT Consulting Project Manager at e-conomic A/S (Denmark)1998-2005: Auditor at Pwc (Denmark)EducationMSc (Business Economics and Auditing)Other management positions and directorshipsN/AShareholder informationH+H International A/S is listed on the Nasdaq Copenhagen stock exchange and is trading under the ticker symbol HH.Share-price developmentThe H+H International A/S shares started the year at a price of DKK 88.80 and closed the year at a price of DKK 78.70, representing a decrease of 11%. At the end of the year, the total market value of H+H amounted to DKK 1,298 million. The highest traded price during 2024 was DKK 109.4 on 7 June and the lowest traded price was DKK 65.6 on 15 March. Share capital and treasury sharesH+H's shares are listed on the Nasdaq Copen-hagen stock exchange and consists of 16,500,000 shares each valued at DKK 10, with uniform voting and dividend rights. By the fiscal year's end, H+H held 162,049 treasury shares, representing 1% of its share capital.Composition of shareholdersOn 31 December 2024, H+H had more than 5,500 registered shareholders. Major shareholders owning more than 20% of the total share capital and votes were Solbet Sp. z o.o., Poland. Major shareholders owning more than 5% but less than 10% of the total share capital and votes were Nordea Funds Ltd., Finland, ATP Arbejds-markedets Tillægspension, Denmark, and BI Asset Management Fondsmæglerselskab A/S, Denmark. The majority of the share capital is held by Danish investors. Other key markets are Poland, the United Kingdom, and the United States.Capital allocationOur free cash flow allocation priorities are unchanged from previous years: 1. Repay of net interest-bearing debt in periods when the financial gearing ratio is above the long-term target range; 2. Pursuit of value-adding investments in the form of acquisitions or development of the existing business; and 3. Distribution of capital to the shareholders by means of share buy-backs and/or dividends. For the time being, we expect to use the free cash flow to repay debt to lower the gearing to within the long-term target ratio of 1-2x net inter-est-bearing debt to EBITDA before special items.Major shareholders per 31 December 2024Solbet Sp. z o.o., Poland > 20%Arbejdsmarkets Tillægspension, Denmark >5%Nordea Funds Ltd., Finland >5%BI Asset Management Fondsmæglerselskab A/S, Denmark >5%Share informationExchange Nasdaq CopenhagenISIN code DK0015202451Ticker symbol HHNo. of shares 16,500,000Denomination DKK 10 per shareShare capital DKK 165,000,000Voting rights One vote per shareGeographical distribution of shareholders Denmark - 57% Poland - 23% United Kingdom - 7% United States - 3% Others - 10% Annual general meetingThe next annual general meeting (AGM) is sched-uled for 8 April 2025 at 11.00 a.m. at Copenhagen Marriott Hotel, Copenhagen. Further details are published through a company announcement and on our group website no earlier than five to three weeks before the AGM. AGM documents will be accessible on our group website once the notice is published. Amendments to the Articles of Asso-ciation require the resolution is passed by at least two-thirds of the votes cast as well as of the share capital represented at the AGM.Investor Relations - SBM-2The purpose of our financial communications and other investor relations activities is to ensure that relevant, accurate and timely information is made available to the stock market to serve as a basis for regular trading and a fair pricing of H+H shares.To ensure that capital market participants, including current and prospective investors, are able to make well-informed investment deci-sions, we seek a transparent and active dialogue with all financial market participants, including investors, sell-side analysts, journalists and the general public via conference calls, participation in investor meetings and equity conferences and social media.H+H is not normally available for dialogue about financial matters in the three-week period leading up to the publication of an interim financial report or the annual report. Inquiries concerning investor relations issues should be addressed to the Head of Investor Relations and Treasury via email to Shareholder@HplusH.com. More relevant investor information is available on our group website.2024 relative share-price performance 120100806040January February March April May June July August September October November December H+H International A/S OMX Copenhagen Mid-Cap PI (re-based)Risk management The Board of Directors of H+H International A/S oversees the risk management processes to ensure that the risk profile, risk process, and risk awareness are appropriate. Responsibility for Enterprise Risk Management (ERM) effectiveness has been delegated to the Chief Financial Officer. The ERM processes at H+H ensure a dynamic approach, which involves identifying risks, assessing their probability, and evalu-ating the potential impact on business performance, governance, image and people. The aim is to mitigate identified key risks to an acceptable level through appropriate ERM processes. Each region within the group conducted individual workshops to identify poten-tial risks. The results and evaluations from these workshops were integrated into the overall group enterprise risk evaluation. Key elements of these risks and the corresponding mitigation strate-gies are detailed in the following sections.Detailed information on the risk management structure is available in the Corporate Governance statement for 2024.1Market 2Production 3Financial14Cyber5Health & Safety46Climate2536Net impact after mitigationsRisk position The risk categories outlined below are recurring risks from previous years, though the balance, severity and in some cases the nature have changed. Hence, the efforts to mitigate these risks have been adjusted to the current risk picture. 1Market2ProductionRisk The industry is influenced by a range of factors, including interest rates, which affect borrowing costs for developers and buyers, H+H relies on a stable production, therefore unforeseen stoppages, descriptionand general economic growth, which impacts demand for housing. Population growth, urbanisation, and shifts in household unplanned maintenance, or damage to machinery or other events formation also play a role in driving the need for new homes. Additionally, government policies, incentives and regulatory frame-vital to production which can make plants or machinery unavailable works, such as sustainability requirements, influence the pace and focus of construction activity across regions. In recent years, for production for an extended period, is a risk. Other key elements of rising inflation and higher interest rates have lowered building activity, despite strong housing need. the production risk include inflationary pressures and scarcity of raw materials.Pricing continues to be a key parameter. In regions with a declining market, there is a risk that competitors will adopt a volume strategy to avoid excess production capacity, leading to increased price pressure. Mitigating H+H closely monitors the market development for residential new-build and frequently assesses current and expected market in-H+H remains committed to investing in our plants to ensure limited actionsdicators, such as building permits and interest rates. Additionally, by focusing on production efficiency we will improve the possi-disruption, through monitoring and investigation of critical production bility to respond to changes in market demands and adjust production capacity accordingly. We maintain a firm pricing discipline equipment, preventive maintenance and regional developed emergen-and invest in relationships with key customers, to ensure that pricing strategies are both competitive and sustainable.cy plans. In addition, we have implemented a hedging policy to manage the risks associated with energy price volatility. Net risk As seen in recent years, the building industry is highly exposed to economic fluctuation. However, risks are mitigated by a firm Considering the mitigation actions, the risk is assessed to be medium. assessment pricing discipline, continued investment in efficient and agile production facilities, which also allows for timely responses to It remains a key focus to ensure a stable and efficient production and changes in the market dynamics. The risk is assessed to be medium to high.to regularly oversee and assess any potential production and supply risks as part of daily operations.3FinancialRisk A potential lack of funding or a breach of descriptioncovenants could lead to the cancellation of the current facility, necessitating the estab-lishment of a new, potentially more expensive financing source. Additionally, a low cash generation could impact bank KPIs, resulting in higher interest rates.Mitigating A long-term credit facility is established to actionssupport the strategy and future investments. Additionally, in-depth cash monitoring and forecasting are conducted, including scenar-io-based assessments.Net risk The current liquidity position and expected assessment cash projections indicate sufficient headroom for the companyâs bank covenants. Conse-quently, the risk is assessed as low.4CyberCybercrime is growing and there is a rise in cyberattacks which are becoming more sophis-ticated and frequent. Cyberattack/ransomware situations blocking access to networks or critical systems, can impact essential processes in several business areas. Dedicated resources within Group IT focused on cybersecurity are monitoring developments in this area. Choice of IT suppliers and the adequacy of defense measures are carefully considered. Additionally, continuous training in cybersecurity is provided for all employees and results of the training is presented to manage-ment on a recurring basis.H+H is seeing an increasing number of attempts and numbers of methods being used in these attempts. Our mitigating actions are consist-ently updated and implemented, reducing the likelihood of occurrence. Therefore, the risk is considered to be medium.5Health & Safety - ESRS 2 GOV-5Critical accidents resulting in fatalities or serious harm to employees or external parties can be caused by several factors. These include inade-quate behavior within the business, insufficient training and learning in health and safety.The importance of safety is embedded through the Group Health and Safety Policy, which pro-vides guidance on applying our safety manage-ment system across all operations. We conduct near-miss reporting and root cause analysis to reduce risk and strive to enhance performance through both external and internal reviews, fol-lowed by subsequent follow-ups. There is a relatively small number of employees in a plant, where the heavy machinery is, and it is rare that accidents affect more than one employ-ee at the time. The risk is considered low.6Climate - ESRS 2 GOV-5Failure to meet our science-based targets, including not adhering to the sustainability strategy by reducing coal usage, closing or improving inefficient plants, and sourcing more carbon-friendly raw materials, is a risk for H+H. Operational management is responsible for ex-ecuting plans that support our science-based targets, and management is committed to making adequate funding for the projects nec-essary. Additionally, planning by the procure-ment team in sourcing materials is essential. Mitigating actions are further described in the Sustainability Statement under the Environ-mental Information section.Our science-based targets are ambitious but realistic with the effort and mitigation in place, hence the probability of the risk is considered low. The challenges are more industry specific than company specific.</mrv:CorporateGovernanceReport>
<mrv:StatementOfPolicyForDataEthics contextRef="ctx-1" id="f1__s8__7__15" xml:lang="en">Report on data ethicsThe following makes up the data ethics report required under Section 99(d) of the Danish Financial Statements Act.H+Hâs Data Ethics Policy has as its overall objective to encourage and motivate all our employees to handle data with the utmost care and respect and to follow our guiding principles on data use and ethics. We are committed to complying with all applicable personal data protection laws. We run internal audit controls to secure compliance with both information security and data protection requirements, and all employees developing, purchasing or otherwise working with technology and data science-based uses of data must be informed about the data ethics principles. We do not purchase, sell or broker data or otherwise profit from separate data transfers from or to third parties. We do not currently carry out data processing using artifi-cial intelligence, such as machine learning, as a natural part of our business. Our Data Ethics Policy can be found on the Group website,</mrv:StatementOfPolicyForDataEthics>
<mrv:DescriptionofTheTaxonomyRegulation contextRef="ctx-1" id="f1__s8__7__20" xml:lang="en">EU Taxonomy H+Hâs EU Taxonomy disclosure for the annual reporting period of 2024 has been prepared in accordance with the Taxonomy Regulation EU (2020/852) and its supplementing delegated acts.The disclosure covers the taxonomy-eligible and taxonomy-aligned economic activities and their financial KPIs as a proportion of the Groupâs turnover, capital expenditure (CAPEX), and opera-tional expenditure (OPEX) in 2024. Reporting principlesDue to the EU Taxonomy being under continuous development and the evolving aspect of the Regu-lation, we have decided to reassess the reporting requirement and update our accounting principles to be more in line with the current legislative envi-ronment. Figures for 2023 have therefore been restated. We will continue to follow the develop-ment of the regulation and assess our approach accordingly.Our economic activities are considered regardless of their geographical location, whether inside or outside of the European Union.Economic activitiesTaxonomy-eligible economic activitiesAccording to note 3 of the consolidated financial statement, H+H revenue streams consist of sale of goods and related transport services. As such, we have concluded that the following economic activities qualify as taxonomy eligible economic activities:⢠(3.5) Manufacture of energy-efficient building equipment⢠(6.6) Freight transport services by roadBoth H+Hâs product groups (AAC and CSU) are classified under NACE code 23.61 and are as such covered by the Delegated Act (EU) 2021/2139 of June 4, 2021 in Chapter 3.5 as key components for external wall systems. The product groups contribute to achieving the climate change miti-gation target if they fulfil the technical screening criteria of having a U-value lower or equal to 0,5 2W/mK. For external wall systems, a U-value lower than 0.5 W/m²K is required by law in all coun-tries in which we produce and sell our products. As such, the substantial contribution screening criteria are met. Products from both AAC and CSU product groups have multiple applications. In addition to being used for external walls, they can also be used as partition walls. When determining which of our products that are within scope, we have looked at the intended use of the products. Turnover from products where the intended use is to be part of an external wall system is reported as eligible, whereas turnover from products where the intended use is partition walls is reported as not eligible. Turnover from accessories needed to build the external wall such as mortar and glue are also reported as eligible because such accessories are considered to be key components in an external wall system. Pallets used for trans-portation are not included in the scope since only plastic pallets are eligible under the EU Taxonomy. When calculating the taxonomy-eligible turnover under CCM 3.5 for products which can be used in both external walls and partition walls, we have used allocation keys to determine the split between sale of products used for external walls and partition walls. As each of the countries in which we sell our products have different ways of building, allocation keys are based on individual market analysis. Analyses were made by local sales departments which have indepth knowledge of the local building markets. Hence, we assess their input to be highly valid.Transport of goods for sale is a separate revenue stream classified under NACE code 49.41 which is covered by Chapter 6.6 âFreight transport services by roadâ in the delegated act.Taxonomy-eligible turnoverDuring our screening, we identified 69% eligible turnover. The taxonomy-eligible turnover refers to revenue from sales of products and key compo-nents used for external walls (CCM 3.5), as well as freight revenue derived from sales of external wall building materials (CCM 6.6). Revenue is defined as revenue included in the consolidated financial statements for the year 2024.Taxonomy-eligible CAPEXDuring our screening, we identified 62% eligible CAPEX. The taxonomy-eligible CAPEX is divided between production related activities (CCM 3.5) and activities related to transport (CCM 6.5 and CCM 6.6). To determine the proportion of produc-tion related CAPEX associated with taxonomy-eli-gible economic activities, the same allocation key as for turnover is used. This is based on the fact that our plants produce both eligible and non-el-igible products, and it is therefore not possible to do individual distinctions. Taxonomy eligible activity related to transport contains leased company cars (CCM 6.5) and forklifts (CCM 6.6). CAPEX is defined as additions of tangible assets and intangible assets (excluding goodwill) as included in the consolidated financial statements for the year 2024, note 13 & 14. Taxonomy-eligible OPEXDuring our screening, we identified 63% eligible OPEX. Operating expenditures as per the EU Taxonomy are defined as directly incurred, non-capitalizable cost relating to research and development, building renovations, short-term leases, and the repair and maintenance of prop-erty, plant, and equipment in 2024. To determine the proportion of OPEX from products or services associated with taxonomy-eligible economic activities, the same allocation key as for turnover is used for the same reason as when determining taxonomy-eligible CAPEX. Taxonomy-aligned economic activitiesOur economic activities are considered taxono-my-aligned if they:⢠make a substantial contribution to the achieve-ment of one or more of the six environmental objectives set out in the Taxonomy Regulation⢠do not significantly harm any of the other envi-ronmental objectives, and ⢠are carried out in compliance with the minimum social safeguards.As described above, H+H assesses that a certain share of our turnover contributes to climate change mitigation by meeting the substantial contribution criteria for external wall systems with 2U-value lower or equal to 0.5 W/ m K.For an economic activity to be classified as sustainable under the taxonomy, it must fulfil the criteria for not doing significant harm under the other environmental objectives included in the taxonomy.While environmental management is done in all regions, the approach is not consistent across the Group, depending on region and depending on the individual plants. Below is an overview of our initiatives in our UK plants where we meet the objectives for aligned economic activities. Turnover from these plants is reported as taxon-omy-aligned economic activity. In addition, we describe initiatives in our other regions where we only partially meet the objectives.Do no significant harmOther environmental objectives (2â6) UK CWE PolandClimate change adaptation â As part of our ESRS reporting and work towards having targets validated by the SBTi, we have performed climate risk assessments.Sustainable use and protection of â We have a water use and protection We believe that we do not do any significant harm, but we are working towards getting the necessary documen-water and marine resourcesmanagement plan in place as part of our tation requirements such as an ISO 14001 certification.ISO 14001 certification.Transition to a circular economy â Our products are designed for high durability and recyclability. We employ a âzero waste to landfillâ principle and recycle our AAC waste back into production.Pollution prevention â No substances of concern are used in H+Hâs prod-No substances of concern are used in H+Hâs products. We are currently working with vendors to document and controlucts and no accessories from other vendors are that our accessories sold do not contain substances of concern.sold from these plants. Protection and restoration of â Dedicated efforts towards protection of biodiversity We believe that we do not do any significant harm, but we are working towards getting the necessary docu-biodiversityare part of our ISO 14001 and BES: 6001 certifica-mentation requirements such as an ISO 14001 certification.tions, ensuring that the generic criteria for protec-tion and restoration of biodiversity are metâ Achieved in all regionsâ Achieved in the UKMinimum safeguardsCompliance with minimum social safeguards essentially relates to the areas of human and labour rights, corruption prevention, fair taxation and fair competition. H+H have implemented processes and guidelines that ensure compliance with all minimum standards in line with the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights and the Declaration by the International Labour Organization. Our efforts are further described in the Governance section, when reporting on our Code of Conduct, Anti-corruption policy and Tax policy.Turnover from the regions where not all DNHS criteria are met is reported under section A.2. Taxonomy-eligible but not environmentally sustainable activities (Taxonomy-non-aligned activities).The eligible economic activity under CCM 6.6 does not meet the substantial contribution criteria (zero tailpipe emissions) and is as such reported under section A.2. Taxonomy-eligible but not environmentally sustainable activities (Taxono-my-non-aligned activities).EU Taxonomy DisclosureRevenueTaxonomy-eligible activitiesTaxonomy-aligned acitvities2024 Revenue CAPEX OPEXTaxonomy-non-eligible activitiesTaxonomy-eligible activities 69% 62% 63%31%Taxonomy-non-eligible activities 31% 38% 37%42%Taxonomy-aligned acitvities 27% 20% 21%Taxonomy-non-aligned acitvities 73% 80% 79%27%Nuclear and fossil gas related activitiesCAPEX1 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. No2 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 38%42%heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. No3 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 upgrades. No20%Fossil gas related activities4 The undertaking carries out, funds or has exposures to construction or operation of electricity gener-ation facilities that produce electricity using fossil gaseous fuels. No5 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. NoOPEX6 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. No37%42%21%EU Taxonomy â TurnoverFinancial year 2024 2024 Sustainable contribution criteria DNSH criteria ("Does Not Significant Harm")Economic activities - Turnover (1)A. Taxonomy â Eligible ActivitiesA1. Environmentally sustainable activities (Taxonomy-aligned)Manufacture of energy-efficient building equipment CCM 3.5 748 27% Y N/A N/A N /A N/A N/A N/A Y Y Y Y Y Y 25%Turnover of environmentally sustainable activities (Taxonomy-aligned) 748 27% N/A N/A N /A N/A N/A N /A N/A N/A N/A N/A N /A N/A N /A 25%Of which Enabling 0 0% N/A N/A N /A N/A N/A N/A N/A N /A N/A N/A N /A N/A N /A 0% EOf which Transitional 0 0% N/A N/A N/A N /A N/A N/A N /A N/A N/A N/A N/A N /A N/A 0% TA2. Taxonomy-eligible but not aligned activitiesManufacture of energy-efficient building equipment CCM 3.5 889 32% Y N/A N/A N /A N/A N /A N/A Y N/A N /A Y N/A Y 35%Freight transport services by road CCM 6.6 268 10% Y N /A N/A N /A N/A N/A N /A N/A N/A N /A N/A N/A N/A 9%Turnover of not-aligned activities 1,157 42% 44%Turnover of taxonomy-eligible activities (A1+A2) 1,905 69% 70%A. Taxonomy â Non-Eligible ActivitiesB. Turnover of non-eligible activities 843 31%Total 2,747 100%Quantitative breakdown of taxonomy-aligned turnoverThe primary sources of turnover contributing to the numerator of the turnover KPI in 2024 are generation and sale of blocks and related accessories in the UK region (DKK 748 million)EU Taxonomy â CAPEXFinancial year 2024 2024 Sustainable contribution criteria DNSH criteria ("Does Not Significant Harm")Economic activities - CAPEX (1)A. Taxonomy â Eligible ActivitiesA1. Environmentally sustainable activities (Taxonomy-aligned)Manufacture of energy-efficient building equipment CCM 3.5 35 20% Y N/A N /A N/A N /A N/A N/A Y Y Y Y Y Y 20%CAPEX of aligned activities 35 20% N/A N/A N /A N/A N/A N /A N/A N /A N/A N/A N /A N/A N /A 20%Of which Enabling 0 0% N/A N/A N /A N/A N/A N/A N/A N /A N/A N/A N /A N/A N /A 0% EOf which Transitional 0 0% N/A N/A N/A N /A N/A N/A N /A N/A N/A N/A N/A N /A N/A 0% TA2. Taxonomy-eligible but not aligned activitiesManufacture of energy-efficient building equipment CCM 3.5 56 32% Y N /A N/A N/A N/A N/A N /A Y N/A N/A Y N /A Y 35%Freight transport services by road CCM 6.6 17 10% Y N /A N/A N /A N/A N/A N /A N/A N/A N /A N/A N /A N/A 9%CAPEX of non-aligned activities 73 42% 44%Total (A1+A2) 108 67% 64%A. Taxonomy â Non-Eligible ActivitiesCAPEX of non-eligible activities (B) 66 38%Total (A+B) 173 100%No formal CAPEX-plan in relation to EU-taxonomy has been developed in 2024, but will be reassessed in 2025.Quantitative breakdown of taxonomy-aligned CAPEXThe primary sources of CAPEX contributing to the numerator of the CAPEX KPI in 2024 are additions from tangible and intangible assests from the UK region (DKK 43 million)EU Taxonomy â OPEXFinancial year 2024 2024 Sustainable contribution criteria DNSH criteria ("Does Not Significant Harm")Economic activities - OPEX (1)A. Taxonomy â ligible ActivitiesA1. Environmentally sustainable activities (Taxonomy-aligned)Manufacture of energy-efficient building equipment CCM 3.5 27 21% Y N/A N/A N /A N/A N/A N /A Y Y Y Y Y Y 21%OPEX of environmentally sustainable activities (Taxonomy-aligned) 27 21% N/A N /A N/A N/A N /A N/A N /A N/A N/A N /A N/A N/A N/A 21%Of which Enabling 0 0% N/A N/A N /A N/A N/A N/A N/A N /A N/A N/A N /A N/A N /A 0% EOf which Transitional 0 0% N/A N/A N/A N /A N/A N/A N /A N/A N/A N/A N/A N /A N/A 0% TA2. Taxonomy-eligible but not aligned activitiesManufacture of energy-efficient building equipment CCM 3.5 41 32% Y N/A N/A N/A N /A N/A N/A N /A N/A N/A Y N /A Y 35%Freight transport services by road CCM 6.6 12 10% Y N/A N/A N/A N/A N /A N/A N/A N /A N/A N/A N/A N/A 9%OPEX of non-aligned activities 53 42% 44%Total (A1+A2) 80 63% 65%A. Taxonomy â Non-Eligible ActivitiesOPEX of non-eligible activities (B) 46 37%Total (A+B) 126 100%H+H does not have any eligible OPEX, hence no OPEX is allocated to the numerator.Quantitative breakdown of taxonomy-aligned OPEXThe primary sources of OPEX contributing to the numerator of the OPEX KPI in 2024 are maintenance and repair costs from the UK region (DKK 27 million)</mrv:DescriptionofTheTaxonomyRegulation>
<mrv:StatementOfTheDiversityPolicies contextRef="ctx-1" id="f1__s8__7__22" xml:lang="en">Gender diversityThe building materials industry is not traditionally known for being gender diverse and we therefore risk fostering workplaces with low diversity. As a result we believe this impact to be systemic in nature and not related to individual incidents.Both impacts related to equal treatment occur over the short and medium term. Impact related to equal pay only affects those directly employed by H+H. Impacts related to diversity affects both our own employees, non-employees (both self-employed people and people provided by third party organisations) and contractors. No material risks or opportunities were identified in the materiality assessment. Impacts, risks, and opportunities managementWe approach the impacts related to equal treat-ment through a mixture of Group and local initia-tives. We believe a safe and inclusive work culture is best achieved by encouraging our employees to speak up and take ownership of creating a work environment they feel they belong to, with clear support from senior management. S1-1 Policies related to equal treatmentDiversity PolicyThe core objective of H+Hâs Group Diversity Policy is to foster an inclusive and open working climate where diversity is embraced and promoted. By making our principles on diversity clear, we want to mitigate negative impacts related to lack of diversity. While gender is one dimension of diversity, we fully recognise that diversity is any aspect that differentiates our employees and enables diversity of thought. This includes ethnicity, age, national origin or citizenship, religion or belief, political conviction, sexual orientation, marital status, pregnancy and maternity, disa-bility or genetic information or any other legally protected categories. We do not tolerate any form of discrimination towards employees or stakeholders. All reports of discrimination and harassment are fully investigated and may result in disciplinary actions or employment-related consequences for the perpetrator. Besides the Code of Conduct, we currently do not have any other specific Group policies aimed at eliminating discrimination or harassment.The policy applies across all of H+H and includes but is not limited to recruitment, promotion and development opportunities. The policy is commu-nicated to all new employees, and in the case of updates, to the entire workforce. The policy is also available on our Group website.The Board of Directors has adopted the Group Diversity Policy while the CEO is overall respon-sible. Regional Managing Directors are respon-sible for implementation within their countries as heads of their respective legal entities.</mrv:StatementOfTheDiversityPolicies>
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id="f1__s8__8__64"
unitRef="pure">1500</fsa:AverageNumberOfEmployees>
<sob:StatementByExecutiveAndSupervisoryBoards contextRef="ctx-1" id="f1__s8__7__189" xml:lang="en">Statement by the Executive Board and the Board of Directors The Executive Board and the Board of Directors have today discussed and approved the annual report of H+H International A/S for the financial year 2024.The Consolidated Financial Statements and the Parent Company Financial Statements have been prepared in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act. Managementâs Review has been prepared in accordance with the Danish Financial Statements Act. In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position at 31 December 2024 of the Group and the Parent Company and of the results of the Group and Parent Company operations and cash flows for 2024.In our opinion, Managementâs Review includes a fair review of the development in the operations and financial circumstances of the Group and the Parent Company, of the results for the year and of the finan-cial position of the Group and the Parent Company as well as a description of the most significant risks and elements of uncertainty, which the Group and the Parent Company are facing.Additionally, the sustainability statement, which is part of Managementâs Review, has been prepared, in all material respects, in accordance with paragraph 99 a of the Danish Financial Statements Act. This includes compliance with the European Sustainability Reporting Standards (ESRS) including that the process undertaken by Management to identify the reported information (the âProcessâ) is in accordance with the description set out in the subsection titled âDouble materiality assessmentâ within the general information section of the sustainability statement. Furthermore, disclosures within subsection titled âEU Taxonomyâ statements in the environmental section of the sustainability statement are, in all material respects, in accordance with Article 8 of EU Regulation 2020/852 (the âTaxonomy Regulationâ).In our opinion, the annual report of H+H International A/S for the financial year 1 January to 31 December 2024 with the file name HH-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.We recommend that the annual report be approved at the annual general meeting.</sob:StatementByExecutiveAndSupervisoryBoards>
<sob:PlaceOfSignatureOfStatement contextRef="ctx-1" id="f1__s8__7__190" xml:lang="en">Copenhagen</sob:PlaceOfSignatureOfStatement>
<cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="ctx-36" id="f1__s8__7__192" xml:lang="en">Jörg Brinkmann</cmn:NameAndSurnameOfMemberOfExecutiveBoard>
<cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="ctx-37" id="f1__s8__7__194" xml:lang="en">Bjarne Pedersen</cmn:NameAndSurnameOfMemberOfExecutiveBoard>
<cmn:TitleOfMemberOfExecutiveBoard contextRef="ctx-36" id="f1__s8__7__193" xml:lang="en">CEO</cmn:TitleOfMemberOfExecutiveBoard>
<cmn:TitleOfMemberOfExecutiveBoard contextRef="ctx-37" id="f1__s8__7__195" xml:lang="en">CFO</cmn:TitleOfMemberOfExecutiveBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-38" id="f1__s8__7__196" xml:lang="en">Kent Arentoft</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-43" id="f1__s8__7__203" xml:lang="en">Miguel Kohlmann</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:TitleOfMemberOfSupervisoryBoard contextRef="ctx-38" id="f1__s8__7__197" xml:lang="en">Chair</cmn:TitleOfMemberOfSupervisoryBoard>
<cmn:TitleOfMemberOfSupervisoryBoard contextRef="ctx-39" id="f1__s8__7__199" xml:lang="en">Vice chair</cmn:TitleOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-40" id="f1__s8__7__200" xml:lang="en">Stewart Antony Baseley</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-41" id="f1__s8__7__201" xml:lang="en">Volker Christmann</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-42" id="f1__s8__7__202" xml:lang="en">Kajsa von Geijer</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-39" id="f1__s8__7__198" xml:lang="en">Jens-Peter Saul</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-44" id="f1__s8__7__204" xml:lang="en">Helen MacPhee</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<arr:AddresseeOfAuditorsReportOnAuditedFinancialStatements contextRef="ctx-1" id="f1__s8__7__206" xml:lang="en">To the shareholders of H+H International A/S</arr:AddresseeOfAuditorsReportOnAuditedFinancialStatements>
<arr:OpinionOnAuditedFinancialStatements contextRef="ctx-1" id="f1__s8__7__207" xml:lang="en">Our opinionIn our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the Groupâs and the Parent Companyâs financial position at 31 December 2024 and of the results of the Groupâs and the Parent Companyâs operations and cash flows for the financial year 1 January to 31 December 2024 in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act.Our opinion is consistent with our Auditorâs Long-form Report to the Audit Committee and the Board of Directors.What we have auditedThe Consolidated Financial Statements (pp 89-121) and Parent Company Financial Statements (pp 123-130) of H+H International A/S for the financial year 1 January to 31 December 2024 comprise income statement and statement of comprehensive income, balance sheet, cash flow statement, statement of changes in equity and notes, including material accounting policy information for the Group as well as for the Parent Company. Collectively referred to as the âFinancial Statementsâ.</arr:OpinionOnAuditedFinancialStatements>
<arr:DescriptionOfQualificationsOfAuditedFinancialStatements contextRef="ctx-1" id="f1__s8__7__208" xml:lang="en">Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditorâs responsibilities for the audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.IndependenceWe are independent of the Group in accordance with the International Ethics Standards Board for Account-antsâ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regula-tion (EU) No 537/2014 were not provided. AppointmentWe were first appointed auditors of H+H International A/S on 31 March 2022 for the financial year 2022. We have been reappointed annually by shareholder resolution for a total period of uninterrupted engage-ment of tree years including the financial year 2024.</arr:DescriptionOfQualificationsOfAuditedFinancialStatements>
<arr:KeyAuditMattersAudit contextRef="ctx-1" id="f1__s8__7__209" xml:lang="en">Key audit mattersKey audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2024. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.Key audit matter Revenue recognition including Recognition of revenue is complex due to the volume of transactions and variable considerations.We focused on this area due to the significance of amounts involved and because recognition of revenue includes management judgement regarding timing and provisions for quantum rebates and customer bonuses, which is complex by nature. Consequently, there is a risk that the estimates including methods, applied data or assumptions made by Management are inaccurate.Further, the volume of transactions involves various it-systems and business processes, which are complex and introduce an inherent risk to the revenue recogni-tion process.Reference is made to note 3 in the Consolidated Finan-cial Statements.How our audit addressed the key audit matterOur audit procedures included considering the appropri-ateness of the accounting policies for revenue recognitionapplied by Management and assessing compliance with IFRS Accounting Standards, including disclosure require-ments.We performed risk assessment procedures with the pur-pose of achieving an understanding of it-systems, busi-ness procedures and relevant controls related to revenue recognition. In respect of relevant controls, we assessed whether they were designed in line with the Groupâs accounting policies and were implemented effectively to address the risk of material misstatement.For relevant controls, on which we planned to rely, we test-ed whether these controls were operating effectively.We tested revenue recognition on a sampling basis to underlying evidence, including quantum rebates and customer bonuses for consistency with terms and condi-tions of the underlying customer contracts. We evaluated Managementâs calculations for quantum rebates and customer bonuses, including the evaluation of estimates made by Management. Further, we tested revenue recog-nised around year-end to determine whether recognised in the correct period.In addition, we applied data analysis in our testing of rev-enue transactions in order to identify and assess transac-tions outside the ordinary transaction flows.</arr:KeyAuditMattersAudit>
<arr:StatementOnManagementsReviewAuditorsReportOnAuditedFinancialStatements contextRef="ctx-1" id="f1__s8__7__210" xml:lang="en">Statement on Managementâs ReviewManagement is responsible for Managementâs Review (pp 2-88).Our opinion on the Financial Statements does not cover Managementâs Review, and we do not express any form of assurance conclusion thereon.In connection with our audit of the Financial Statements, our responsibility is to read Managementâs Review and, in doing so, consider whether Managementâs Review is materially inconsistent with the Finan-cial Statements, or our knowledge obtained in the audit, or otherwise appears to be materially misstated. Moreover, we considered whether Managementâs Review includes the disclosures required by the Danish Financial Statements Act. This does not include the requirements in paragraph 99 a related to the sustain-ability statement covered by the separate auditorâs limited assurance report hereon. Based on the work we have performed, in our view, Managementâs Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act, except for the requirements in paragraph 99 a related to the sustainability statement, cf. above. We did not identify any material misstatement in Managementâs Review.</arr:StatementOnManagementsReviewAuditorsReportOnAuditedFinancialStatements>
<arr:StatementOfExecutiveAndSupervisoryBoardsResponsibilityForFinancialStatements contextRef="ctx-1" id="f1__s8__7__211" xml:lang="en">Managementâs responsibilities for the Financial StatementsManagement is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.In preparing the Financial Statements, Management is responsible for assessing the Groupâs and the Parent Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so.</arr:StatementOfExecutiveAndSupervisoryBoardsResponsibilityForFinancialStatements>
<arr:StatementOfAuditorsResponsibilityForAuditAndAuditPerformed contextRef="ctx-1" id="f1__s8__7__212" xml:lang="en">Auditorâs responsibilities for the audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.As part of an audit in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:⢠Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collu-sion, forgery, intentional omissions, misrepresentations, or the override of internal control.⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effective-ness of the Groupâs and the Parent Companyâs internal control.⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting esti-mates and related disclosures made by Management.⢠Conclude on the appropriateness of Managementâs use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or condi-tions that may cast significant doubt on the Groupâs and the Parent Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the Financial Statements or, if such disclosures are inade-quate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern.⢠Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view.⢠Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the finan-cial information of the entities or business units within the group as a basis for forming an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied.From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter.</arr:StatementOfAuditorsResponsibilityForAuditAndAuditPerformed>
<arr:AuditorsReportOnXbrlTagging contextRef="ctx-1" id="f1__s8__7__213" xml:lang="en">Report on compliance with the ESEF RegulationAs part of our audit of the Financial Statements we performed procedures to express an opinion on whether the annual report of H+H International A/S for the financial year 1 January to 31 December 2024 with the filename HH-2024-12-31-en.zip is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regu-lation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial Statements including notes.Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes:⢠The preparing of the annual report in XHTML format;⢠The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for all financial information required to be tagged using judgement where necessary;⢠Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented in human-readable format; and⢠For such internal control as Management determines necessary to enable the preparation of an annualreport that is compliant with the ESEF Regulation.Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all mate-rial respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditorâs judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The procedures include:⢠Testing whether the annual report is prepared in XHTML format;⢠Obtaining an understanding of the companyâs iXBRL tagging process and of internal control over the tagging process;⢠Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements including notes;⢠Evaluating the appropriateness of the companyâs use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified; ⢠Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and⢠Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements.In our opinion, the annual report of H+H International A/S for the financial year 1 January to 31 December 2024 with the file name HH-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.</arr:AuditorsReportOnXbrlTagging>
<arr:SignatureOfAuditorsPlace contextRef="ctx-1" id="f1__s8__7__214" xml:lang="en">Hellerup</arr:SignatureOfAuditorsPlace>
<cmn:NameOfAuditFirm contextRef="ctx-46" id="f1__s8__7__217" xml:lang="en">PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirm>
<cmn:NameOfAuditFirm contextRef="ctx-45" id="f1__s8__7__216" xml:lang="en">PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirm>
<cmn:IdentificationNumberCvrOfAuditFirm contextRef="ctx-45" id="f1__s8__7__218">33771231</cmn:IdentificationNumberCvrOfAuditFirm>
<cmn:IdentificationNumberCvrOfAuditFirm contextRef="ctx-46" id="f1__s8__7__219">33771231</cmn:IdentificationNumberCvrOfAuditFirm>
<cmn:NameAndSurnameOfAuditor contextRef="ctx-46" id="f1__s8__7__223" xml:lang="en">Poul P. Petersen</cmn:NameAndSurnameOfAuditor>
<cmn:DescriptionOfAuditor contextRef="ctx-46" id="f1__s8__7__224" xml:lang="en">State Authorised Public Accountant</cmn:DescriptionOfAuditor>
<cmn:IdentificationNumberOfAuditor contextRef="ctx-46" id="f1__s8__7__225">mne34503</cmn:IdentificationNumberOfAuditor>
<cmn:NameAndSurnameOfAuditor contextRef="ctx-45" id="f1__s8__7__220" xml:lang="en">Jacob F Christiansen</cmn:NameAndSurnameOfAuditor>
<cmn:DescriptionOfAuditor contextRef="ctx-45" id="f1__s8__7__221" xml:lang="en">State Authorised Public Accountant</cmn:DescriptionOfAuditor>
<cmn:IdentificationNumberOfAuditor contextRef="ctx-45" id="f1__s8__7__222">mne18628</cmn:IdentificationNumberOfAuditor>
<arr:AuditorsReportOnSubstainabilityReport contextRef="ctx-1" id="f1__s8__7__227" xml:lang="en">Independent auditorâs limited assurancereport on the Sustainability Statement To the stakeholders of H+H International A/SLimited assurance conclusionWe have conducted a limited assurance engagement on the sustainability statement of H+H International A/S (the âGroupâ) included in Managementâs Review (the âSustainability Statementâ), pages 49-87, for the financial year 1 January â 31 December 2024.Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all material respects, in accordance with the Danish Financial Statements Act paragraph 99 a, including: ⢠compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to identify the information reported in the Sustainability Statement (the âProcessâ) is in accordance with the description set out in subsection âDescription of the processes to identify and assess material impacts, risks and opportunitiesâ within the general information section of the Sustainability Statement; and⢠compliance of the disclosures in subsection âEU Taxonomyâ within the environmental section of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the âTaxonomy Regulationâ).Basis for conclusion We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of historical financial information (âISAE 3000 (Revised)â) and the additional requirements applicable in Denmark. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the Auditorâs responsibilities for the assurance engagement section of our report. Our independence and quality managementWe are independent of the Group in accordance with the International Ethics Standards Board for Account-antsâ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.Managementâs responsibilities for the Sustainability StatementManagement is responsible for designing and implementing a process to identify the information reported in the Sustainability Statement in accordance with the ESRS and for disclosing this Process as included in subsection âDouble Materiality Assessmentâ within the general information section of the Sustainability Statement. This responsibility includes:⢠understanding the context in which the Groupâs activities and business relationships take place and developing an understanding of its affected stakeholders;⢠identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the Groupâs financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term;⢠assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying appropriate thresholds; and⢠making assumptions that are reasonable in the circumstances.Management is further responsible for the preparation of the Sustainability Statement, which includes the information identified by the Process, in accordance with the Danish Financial Statements Act paragraph 99 a, including: ⢠compliance with the ESRS;⢠preparing the disclosures as included in subsection âEU Taxonomyâ within the environmental section of the Sustainability Statement, in compliance with Article 8 of the Taxonomy Regulation;⢠designing, implementing and maintaining such internal control that management determines is neces-sary to enable the preparation of the Sustainability Statement that is free from material misstatement, whether due to fraud or error; and⢠selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasonable in the circumstances. Inherent limitations in preparing the Sustainability StatementIn reporting forward-looking information in accordance with ESRS, management is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected.Auditor's responsibilities for the assurance engagementOur responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole. As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise profes-sional judgement and maintain professional scepticism throughout the engagement. Our responsibilities in respect of the Process include:⢠Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome of the Process; ⢠Considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and ⢠Designing and performing procedures to evaluate whether the Process is consistent with the Groupâs description of its Process, as disclosed in subsection âDouble Materiality Assessmentâ within the general information section of the Sustainability Statement. Our other responsibilities in respect of the Sustainability Statement include: ⢠Identifying where material misstatements are likely to arise, whether due to fraud or error; and ⢠Designing and performing procedures responsive to disclosures in the Sustainability Statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.Summary of the work performedA limited assurance engagement involves performing procedures to obtain evidence about the Sustaina-bility Statement. The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Sustainability Statement.In conducting our limited assurance engagement, with respect to the Process, we: ⢠Obtained an understanding of the Process by performing inquiries to understand the sources of the information used by management; and reviewing the Groupâs internal documentation of its Process; and⢠Evaluated whether the evidence obtained from our procedures about the Process implemented by theGroup was consistent with the description of the Process set out in subsection âDouble Materiality Assessmentâ within the general information section of the Sustainability Statement.In conducting our limited assurance engagement, with respect to the Sustainability Statement, we:⢠Obtained an understanding of the Groupâs reporting processes relevant to the preparation of its Sustain-ability Statement, including the consolidation processes, by obtaining an understanding of the Groupâs control environment, processes and information systems relevant to the preparation of the Sustaina-bility Statement but not evaluating the design of particular control activities, obtaining evidence about their implementation or testing their operating effectiveness; ⢠Evaluated whether the information identified by the Process is included in the Sustainability Statement;⢠Evaluated whether the structure and the presentation of the Sustainability Statement are in accordance with the ESRS;⢠Performed inquiries of relevant personnel and analytical procedures on selected information in the Sustainability Statement;⢠Performed limited substantive assurance procedures on selected information in the Sustainability Statement;⢠Where applicable, compared disclosures in the Sustainability Statement with the corresponding disclo-sures in the Financial Statements and Managementâs Review;⢠Evaluated the methods, assumptions and data for developing estimates and forward-looking informa-tion; and⢠Obtained an understanding of the Groupâs process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Sustainability Statement.Other matterThe comparative information included in the Sustainability Statement was not part of this assurance engagement. Our conclusion is not modified in respect of this limitation of scope.</arr:AuditorsReportOnSubstainabilityReport>
<arr:AddresseeOfAuditorsReportOnSubstainabilityReports contextRef="ctx-1" id="f1__s8__7__228" xml:lang="en">To the stakeholders of H+H International A/S</arr:AddresseeOfAuditorsReportOnSubstainabilityReports>
<arr:IdentificationOfMattersOnWhichAssuranceReportIsProvidedAndDescriptionOfAssuranceEngagementSubstainabilityReport contextRef="ctx-1" id="f1__s8__7__229" xml:lang="en">Limited assurance conclusionWe have conducted a limited assurance engagement on the sustainability statement of H+H International A/S (the âGroupâ) included in Managementâs Review (the âSustainability Statementâ), pages 49-87, for the financial year 1 January â 31 December 2024.</arr:IdentificationOfMattersOnWhichAssuranceReportIsProvidedAndDescriptionOfAssuranceEngagementSubstainabilityReport>
<arr:OpinionOnSubjectMatterOfAssuranceReportSubstainabilityReport contextRef="ctx-1" id="f1__s8__7__230" xml:lang="en">Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all material respects, in accordance with the Danish Financial Statements Act paragraph 99 a, including: ⢠compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to identify the information reported in the Sustainability Statement (the âProcessâ) is in accordance with the description set out in subsection âDescription of the processes to identify and assess material impacts, risks and opportunitiesâ within the general information section of the Sustainability Statement; and⢠compliance of the disclosures in subsection âEU Taxonomyâ within the environmental section of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the âTaxonomy Regulationâ).</arr:OpinionOnSubjectMatterOfAssuranceReportSubstainabilityReport>
<arr:StatementOfAuditorsResponsibilitySubstainabilityReport contextRef="ctx-1" id="f1__s8__7__231" xml:lang="en">Auditor's responsibilities for the assurance engagementOur responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole. As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise profes-sional judgement and maintain professional scepticism throughout the engagement. Our responsibilities in respect of the Process include:⢠Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome of the Process; ⢠Considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and ⢠Designing and performing procedures to evaluate whether the Process is consistent with the Groupâs description of its Process, as disclosed in subsection âDouble Materiality Assessmentâ within the general information section of the Sustainability Statement. Our other responsibilities in respect of the Sustainability Statement include: ⢠Identifying where material misstatements are likely to arise, whether due to fraud or error; and ⢠Designing and performing procedures responsive to disclosures in the Sustainability Statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.</arr:StatementOfAuditorsResponsibilitySubstainabilityReport>
<arr:SignatureOfSubstainabilityAuditorsPlace contextRef="ctx-1" id="f1__s8__7__234" xml:lang="en">Hellerup</arr:SignatureOfSubstainabilityAuditorsPlace>
<cmn:NameOfAuditFirmSubstainability contextRef="ctx-48" id="f1__s8__7__237" xml:lang="en">PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirmSubstainability>
<cmn:NameOfAuditFirmSubstainability contextRef="ctx-47" id="f1__s8__7__236" xml:lang="en">PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirmSubstainability>
<cmn:IdentificationNumberCvrOfAuditFirmSubstainability contextRef="ctx-47" id="f1__s8__7__238">33771231</cmn:IdentificationNumberCvrOfAuditFirmSubstainability>
<cmn:IdentificationNumberCvrOfAuditFirmSubstainability contextRef="ctx-48" id="f1__s8__7__239">33771231</cmn:IdentificationNumberCvrOfAuditFirmSubstainability>
<cmn:NameAndSurnameOfSubstainabilityAuditor contextRef="ctx-47" id="f1__s8__7__240" xml:lang="en">Jacob F Christiansen</cmn:NameAndSurnameOfSubstainabilityAuditor>
<cmn:DescriptionOfSubstainabilityAuditor contextRef="ctx-47" id="f1__s8__7__241" xml:lang="en">State Authorised Public Accountant</cmn:DescriptionOfSubstainabilityAuditor>
<cmn:fIdentificationNumberOfSubstainabilityAuditor contextRef="ctx-47" id="f1__s8__7__242">mne18628</cmn:fIdentificationNumberOfSubstainabilityAuditor>
<cmn:NameAndSurnameOfSubstainabilityAuditor contextRef="ctx-48" id="f1__s8__7__243" xml:lang="en">Poul P. Petersen</cmn:NameAndSurnameOfSubstainabilityAuditor>
<cmn:DescriptionOfSubstainabilityAuditor contextRef="ctx-48" id="f1__s8__7__244" xml:lang="en">State Authorised Public Accountant</cmn:DescriptionOfSubstainabilityAuditor>
<cmn:fIdentificationNumberOfSubstainabilityAuditor contextRef="ctx-48" id="f1__s8__7__245">mne34503</cmn:fIdentificationNumberOfSubstainabilityAuditor>
<gsd:NameOfSubmittingEnterprise contextRef="ctx-1" id="f1__s8__7__261" xml:lang="en">H+H International A/S</gsd:NameOfSubmittingEnterprise>
<gsd:NameOfReportingEntity contextRef="ctx-1" id="f1__s8__7__255" xml:lang="en">H+H International A/S</gsd:NameOfReportingEntity>
<gsd:AddressOfSubmittingEnterpriseStreetAndNumber contextRef="ctx-1" id="f1__s8__7__262" xml:lang="en">Lautrupsgade 7, 5th Floor</gsd:AddressOfSubmittingEnterpriseStreetAndNumber>
<gsd:AddressOfReportingEntityStreetName contextRef="ctx-1" id="f1__s8__7__256" xml:lang="en">Lautrupsgade</gsd:AddressOfReportingEntityStreetName>
<gsd:AddressOfReportingEntityStreetBuildingIdentifier contextRef="ctx-1" id="f1__s8__7__257" xml:lang="en">7, 5th Floor</gsd:AddressOfReportingEntityStreetBuildingIdentifier>
<gsd:AddressOfSubmittingEnterprisePostcodeAndTown contextRef="ctx-1" id="f1__s8__7__263" xml:lang="en">2100 Copenhagen Ã</gsd:AddressOfSubmittingEnterprisePostcodeAndTown>
<gsd:AddressOfReportingEntityPostCodeIdentifier contextRef="ctx-1" id="f1__s8__7__258" xml:lang="en">2100</gsd:AddressOfReportingEntityPostCodeIdentifier>
<gsd:AddressOfReportingEntityDistrictName contextRef="ctx-1" id="f1__s8__7__259" xml:lang="en">Copenhagen Ã</gsd:AddressOfReportingEntityDistrictName>
<gsd:TelephoneNumberOfReportingEntity contextRef="ctx-1" id="f1__s8__7__264" xml:lang="en">+45 35 27 02 00</gsd:TelephoneNumberOfReportingEntity>
<gsd:EmailOfReportingEntity contextRef="ctx-1" id="f1__s8__7__265" xml:lang="en">info@HplusH.com</gsd:EmailOfReportingEntity>
<gsd:HomepageOfReportingEntity contextRef="ctx-1" id="f1__s8__7__266">HplusH.com</gsd:HomepageOfReportingEntity>
<gsd:InformationOnTypeOfSubmittedReport contextRef="ctx-1" id="f1__s1__72__15">Annual report</gsd:InformationOnTypeOfSubmittedReport>
<cmn:TypeOfAuditorAssistance contextRef="ctx-1" id="f1__s1__72__16">Auditor's report on audited financial statements</cmn:TypeOfAuditorAssistance>
<gsd:ToolForPreparingTheXBRLInstanceDocument contextRef="ctx-1" id="f1__s1__72__17" xml:lang="en">ParsePort XBRL Converter</gsd:ToolForPreparingTheXBRLInstanceDocument>
<gsd:ReportingPeriodStartDate contextRef="ctx-1" id="f1__s1__72__20">2024-01-01</gsd:ReportingPeriodStartDate>
<gsd:ReportingPeriodEndDate contextRef="ctx-1" id="f1__s1__72__21">2024-12-31</gsd:ReportingPeriodEndDate>
<gsd:PrecedingReportingPeriodStartDate contextRef="ctx-1" id="f1__s1__72__22">2023-01-01</gsd:PrecedingReportingPeriodStartDate>
<gsd:PredingReportingPeriodEndDate contextRef="ctx-1" id="f1__s1__72__23">2023-12-31</gsd:PredingReportingPeriodEndDate>
<gsd:LegalEntityIdentifierOfReportingEntity contextRef="ctx-1" id="f1__s1__72__42">213800GJODT6FV8QM841</gsd:LegalEntityIdentifierOfReportingEntity>
<fsa:ClassOfReportingEntity contextRef="ctx-1" id="f1__s1__72__43">Reporting class D</fsa:ClassOfReportingEntity>
<arr:TypeOfModifiedOpinionOnAuditedFinancialStatements contextRef="ctx-1" id="f1__s1__72__47">Opinion</arr:TypeOfModifiedOpinionOnAuditedFinancialStatements>
<arr:TypeOfBasisForModifiedOpinionOnAuditedFinancialStatements contextRef="ctx-1" id="f1__s1__72__48">Basis for Opinion</arr:TypeOfBasisForModifiedOpinionOnAuditedFinancialStatements>
<sob:DateOfApprovalOfAnnualReport contextRef="ctx-1" id="f1__s8__7__191">2025-03-04</sob:DateOfApprovalOfAnnualReport>
<arr:SignatureOfAuditorsDate contextRef="ctx-1" id="f1__s8__7__215">2025-03-04</arr:SignatureOfAuditorsDate>
<arr:SignatureOfSubstainabilityAuditorsDate contextRef="ctx-1" id="f1__s8__7__235">2025-03-04</arr:SignatureOfSubstainabilityAuditorsDate>
</xbrli:xbrl>