Assets
| Type | Time | Amount | Unit |
|---|---|---|---|
| ifrs-full:Assets | 2024-12-31 | 3888000000 | eur |
| ifrs-full:Assets | 2023-12-31 | 3554000000 | eur |
Revenue
| Type | Start date | End date | Amount | Unit |
|---|---|---|---|---|
| ifrs-full:Revenue | 2024-01-01 | 2024-12-31 | 3855000000 | eur |
| ifrs-full:Revenue | 2023-01-01 | 2023-12-31 | 3620000000 | eur |
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<mrv:SustainabilityReport contextRef="ctx-1" id="s8__7__5-1" xml:lang="en">Sustainability key figuresCO intensity (Scope 1+2) per tonne stone wool (index*) 77 86 83 85 912Energy efficiency in own buildings (index*) 61 61 61 81 95Water use intensity from stone wool production (index*) 83 84 86 85 90Number of countries where we offer recycling service 24 21 19 17 14Landfill waste from our stone wool production (index*) 60 47 49 49 50Lost time incident frequency rate 2.7 2.4 2.7 3.6 3.0Absolute GHG emissions (Scope 1+2) (index**) 82 84 97 100 90* Index=100 in 2015 (baseline). ** Index=100 in 2019 (baseline)Sustainability highlightsAbsolute Scope 1 and 2greenhouse gas emissions (COe)22034 goal: 38%Baseline year:201918%2.08 Mt CO2e 2024 result: 1.71 Mt CO2e Reduce absolute Scope 1 and 2 GHG emissions by 38% by 2034Trend: progress due to decarbonisation effortsScope 1 and 2 CO emission intensity22030 goal: 20%2024 resultBaseline year: 23%20152022 intermediate goal: 10%Reduce CO/t stone wool from2 our stone wool facilities by 20%Trend: progress; goal achievedWater use intensity2030 goal: 20%2024 resultBaseline year: 17%20152022 intermediate goal: 10%Reduce water use intensity (m³/t stone wool) from our stone wool production by 20%Trend: stable due to increase in productionEnergy efficiency in own offices2030 goal: 75%Baseline year: 39%20152024 result2022 intermediate goal: 35%kWh/m2 reduction within owned (non-renovated) offices by 75%Trend: stableReclaimed material2030 goal: 30 countriesBaseline year: 2024 result2420152022 intermediate goal: 15 countriesIncrease the number of countries where weoffer recycling services for our products to 30 countriesTrend: progressLandfill waste2030 goal: 85%Baseline year: 40%20152024 result2022 intermediate goal: 40%Reduce landfill waste (tonnes) fromstone wool production by 85%Trend: increase due to higher productionamong other factors Occupational safety and healthGoal: zero fatalitiesand zero serious accidentsone fatalityand one serious accident2024 result: (LTI frequency rate of 2.7, an increase of 8%)One fatality and one serious accidentTrend: increase led by few factoriesDiversity and inclusionGoal: 35%2024 resultBaseline year: 28%201828% of female leaders in executiveand middle management positionsTrend: stableThe ROCKWOOL purpose and strategyAt the pinnacle of ROCKWOOLâs strategy is our corporate purpose: to release the natural power of stone to enrich modern living. This reflects our purposeâs unifying nature, conveying that stone is our core raw material and the bedrock on which our business is based. And while the stone we use may be millions of years old, what we do with it is cutting-edge. Every day, ROCKWOOLâs creative and entrepreneurial employees are developing and applying new technologies and innovations to release the potential of stone to enrich modern living.As we look to the future, stone wool and the products we make with it have an important role in helping to provide adequate housing for all people and in addressing some of societyâs biggest challenges, including urbanisation, climate change, and energy independence. The combination of more people living in more densely populated areas, the worsening consequences of climate change, and the need to reduce dependence on imported energy increases the global priority for energy efficient buildings. Why? Because while our existing buildings provide vital infrastructure, they are also currently responsible for nearly one-third of global final energy consumption and energy-related CO emissions.2Proper insulation alone can reduce a buildingâs heating needs by up to 70 percent. When combined with other technologies like heat pumps and renewable energy sources â for example, in deep renovation projects â the savings are even greater. For Europe and many other parts of the world, reducing the energy consumed by buildings is a critical step towards reducing dependence on imported fuels and thereby achieving greater energy independence and security. At the same time, the world needs to feed a growing population using fewer resources, while also managing the effects of more frequent extreme weather events, particularly in urban environments. In both cases, specially engineered stone wool products are providing solutions. The ROCKWOOL business strategy is driven by our people and our commitment to creating solutions that connect global trends with profitable business opportunities. We do this by producing high-performing products and services that help create energy efficient, fire-safe, and circular buildings and communities and promote comfortable, healthy, and attractive spaces. In other words, by enriching modern living. Our aspiration is to grow faster than the construction market overall by offering top-quality products and services, strengthening our brand, building long-term customer relations, and driving an operationally effective business across all segments and geographies where we are active.As our business is inherently capital intensive, we focus on leveraging our natural strengths to balance risks, which includes a differentiated approach across selected geographies. In North America, for example, we are expanding our market coverage to capture significant growth opportunities within all major business areas. In Europe, we will grow faster than the market by launching new products and services, while improving our customer-facing activities and the productivity of our production platform. We will expand capacity where needed to meet steadily growing demand and enhance our geographic coverage and customer service level.In Asia, we will expand and grow our business in selected attractive markets where there is a clear demand for our premium quality offerings.Continuing to recruit, develop, and retain highly skilled, highly motivated colleagues is essential to achieving our growth ambitions and fulfilling our purpose. Doing so will remain a high priority for ROCKWOOL across all our business areas and operations. At ROCKWOOL, everything we do is based on releasing the natural power of stone to enrich modern living. Profitably offering solutions to address the challenges created by enduring global trends will help ensure our successful future growth.Our business model[SBM-1]Systems segment Insulation segment generates 21% generates 79% of our revenueof our revenueOur impact on societyWe see enormous opportunity to leverage the natural power of stone to create products that accelerate progress towards What does ROCKWOOL Group do?Stonewoolisfiresafe,duyclablea safer, healthier, low-carbon future.rableandrecWe transform volcanic rock into stone wool, a versatile material with many inherent strengths that make it ideal for use in a range of applications in buildings, industry, transportation, horticulture and water management.Fire safe insulation that All Rockpanel boards are can reduce heating needs durable, easy to cut, Volcanic rock is mixed with The molten rock is spun A final heat treatment cures up to 70%.and resistant to the ROCKWOOL Prefab Building lime stone before being into wool. A binder and the binder, giving the stone effects of moisture, Systems meets the demand for energy-efficient, heated to more than 1,500°C. either a special oil or wool dimensional stability, In schools with no sound temperature, fire and weather.high-quality prefab homes with wetting agent are added before final processing absorption, children cannot circular, reusable components.hear up to 70% of consonants depending on into a wide range their teachers speak. ROCKWOOL Rainwaterthe end product of products.Systems can absorb up to 95%application. of its volume in water.Manufacturing capitalOur business is defined by:ï¡ 42 factories* ï¡ Our purposeï¡ Board approval for four additional factories ï¡ Low-risk transactional sales (France, India, Sweden, United States)ï¡ Local businessï¡ Capital intensive productionHuman and intellectual capitalï¡ Approx. 12,000 employees of which 47% in Western Europe, 32% in Eastern Europe and Russia, 12% in North America and 9% in Asia and othersï¡ R&D based on inhouse experts and engineersProviding high-performance and precision-engineered Financial capitalstone wool solutions for urban ROCKWOOL product ï¡ Healthy financial standing generating solid profitability and being net debt freeControlled environment horticulture acoustics, friction, gaskets recycling services to ï¡ 387 MEUR of CAPEX of which 68 percent is EU Taxonomy-aligned and sealings for industries and can reduce water use for vegetable recycle stone wool in growing by up to 50%. cities.our factories.Social and relationship capitalï¡ We work with approx. 11,000 suppliersï¡ 85% of sales do not cross customs bordersOur products are sold in more than 120 countries primarily via B2B channels including ï¡ 400 km is the average transport distance for insulation in Europe installers and distributors. Revenue generated in the geographical segments: Energy and natural capitalï¡ 56% in Western Europeï¡ 2,097 kt of stone, sand and cement consumed in 2024 ï¡ 20% in Eastern Europe and Russiaï¡ 5,085 GWh of energy consumed in 2024ï¡ 19% North Americaï¡ 5% Asia and others* ROCKWOOL previously counted âmanufacturing facilitiesâ based on the number of brands producing at a given location. For simplicity, we now count âfactory locationsâ regardless of which brands produce there. The number of physical locations has not changed.Corporate governance[GOV -1] The role of the administrative, management and supervisory bodiesWe act with integrity and in accordance with our values, rules and regulations.ROCKWOOLâs governance principles and structure are designed to ensure alignment with long-term shareholder interests and to enable prudent management of the Group in accordance with relevant national and international regulations as well as applicable corporate governance recommendations.The Board of Directors appoints the Registered Directors, consisting of the CEO and CFO, who undertake the day-to-day management of ROCKWOOL.Shareholders and general meetingThe Annual General Meeting (AGM) is the supreme body of the corporate governance structure and elects the Board of Directors as well as independent auditors. The AGM approves any changes to the articles of association and to the capital structure, including any issuance of new shares.The shareholders have the ultimate authority over the company and can exercise their rights by passing resolutions at general meetings. Resolutions are adopted by simple majority of votes, unless otherwise provided by legislation or by the articles of association.ROCKWOOL is not aware of shareholder agreements containing pre-emption rights or restrictions on voting rights. There is an agreement among members of the founding Kähler family to meet regularly to discuss their interests in the company, including items at the AGM, but there is no requirement for them to vote jointly.Board of DirectorsThe Board of Directors currently consists of eight non-executive members, five of whom are elected by the shareholders at general meetings. Of these, three members are deemed independent according to the Danish Recommendations on Corporate Governance. Three members are elected by the employees for a period of four years, pursuant to the Danish Companies Act. The next ordinary employee election takes place in 2026.On 1 September 2024, Jes Munk Hansen stepped out of the Board of Directors and became the CEO of ROCKWOOL Group. The Board of Directors will consist of nine members following the AGM in 2025.The roles and responsibilities of the Board of Directors are defined in the Business Procedure for the Board of Directors. The members of the Board of Directors are elected by the general meeting for a period of one year and may be re-elected. The members of the Board of Directors are non-executive members in accordance with the Danish Companies Act.The Board of Directors is responsible for the overall purpose and strategy and shall ensure proper organisation of ROCKWOOL as well as monitors and oversees progress related to sustainability strategy. The Board of Directors also ensures that the company is developing on track toward agreed short- and long-term business and sustainability goals. The Board of Directors formally approves the Code of Conduct, and the Audit Committee ensures compliance hereof in the Group. The Board of Directors has also approved the double materiality assessment with respect to the Corporate Sustainability Reporting Directive (CSRD) reporting.Once a year, the Board of Directors performs an overall self-evaluation focusing on the composition and competencies of the Board and the results achieved. The evaluation also considers relevant sustainability competencies. The Board of Directors has decided that an external consultancy shall facilitate an in-depth self-evaluation every third year, most recently in 2024.In 2024, the Board of Directors conducted the annual evaluation based on external facilitation. Based on this evaluation, the Board concluded that its present composition is appropriate and sufficient for it to perform its tasks and support long-term value creation for the shareholders.The Board of Directors held seven board meetings and a strategy session in 2024. The meeting agenda is set according to the annual cycle of the Board, thus ensuring that the strategic and operational policy framework of the Group is reviewed and up to date. Information about Board member meeting attendance can be found on pp. 35-36.The Board of Directors has established a Chairmanship, an Audit Committee, and a Remuneration and Nomination Committee. The Committees report to the Board of Directors.Diversity of Board of DirectorsThe Board of Directors has diverse professional experience and competencies and consists of three nationalities. As of December 31, 2024, three (38 percent) out of all eight members of Board of Directors, are independent, three are employee-elected members (38 percent), and four members (50 percent) are female. Out of the shareholder-elected members, 60 percent are independent board members and 40 percent are female.Registered DirectorsThe Registered Directors are the CEO and CFO, who are registered as directors with the Danish Business Authority. The Registered Directors are responsible for the day-to-day management of the company and compliance with the guidelines and recommendations set forth by the Board of Directors. The Registered Directorsâ responsibility covers organisation of the company as well as allocation of resources, producing and implementing strategies and policies, including those referring to material sustainability topics, and ensuring timely reporting to the Board of Directors.Group ManagementGroup Management is formed by the Registered Directors together with six senior vice presidents responsible for division management and Group functions.Diversity of Group ManagementGroup Management has diverse professional experience and competencies and consists of four different nationalities. Thirteen percent of the members are female. Remuneration of the Board of Directors and Registered DirectorsRemuneration of the Board of Directors and Registered Directors is carried out in accordance with the Remuneration Policy as adopted by the Annual General Meeting. The remuneration policy is available at www.rockwool.com/group/about-us/corporate-governance/remuneration/. The remuneration of the Board of Directors amounts to 1 MEUR. The specific Board remuneration and the remuneration components granted to each Registered Director can be found in the 2024 ROCKWOOL Remuneration Report at www.rockwool.com/group/about-us/investors/.Board Chairmanship and CommitteesThe Board of Directors has established three substructures. The Chairmanship The Board of Directors has established a Chairmanship consisting of the Chairman (who is considered not to be independent) and the Deputy Chairman (who is considered independent). They prepare the Board meetings. Audit Committee The Board of Directors has appointed an Audit Committee consisting of three members. The majority of its members are independent.The Audit Committee monitors and reports on the statutory audit, accounting and audit policies and the financial and sustainability reporting processes including auditor independence. The Committee also decides which policies or processes, as determined by the Board of Directors or the Audit Committee, should be subject to thorough evaluation.The Audit Committee monitors compliance with applicable legislation, standards and regulations as well as the internal controls and risk management systems. Through quarterly updates, the Audit Committee monitors the compliance with the CSRD regulation including approval of the double materiality assessment and the disclosures in the sustainability statement.The Audit Committee also monitors cases from the whistleblower system. Remuneration and Nomination Committee The Board of Directors has appointed a Remuneration and Nomination Committee consisting of two members of the Board of Directors: the Chairman and the Deputy Chairman.The Committee ensures that the company maintains a remuneration policy for the members of the Board of Directors, the Registered Directors and senior executives, including compliance hereof.The Committee makes proposals for the remuneration of the Board of Directors and Registered Directors and reviews and approves remuneration for other members of Group Management.The Committee also ensures the preparation of the annual Remuneration Report. The Remuneration Report is subject to a non-binding advisory vote from the shareholders. The Remuneration Report can be found on the Group website.The Committee identifies and recommends to the Board of Directors persons who are qualified to become members of the Board of Directors and Registered Directors. The Committee further recommends removal of such persons, if relevant. The Committee reviews and suggests changes to relevant corporate policies, including corporate governance.Recommendations on Corporate Governance The Board of Directors has discussed and reviewed the recommendations for Danish listed companies as provided by the Danish Committee on Corporate Governance. ROCKWOOL complies with all but two of the recommendations.With respect to recommendation 3.3.2, to publish information about the number of shares, options, warrants or similar in the company, and other Group companies, owned by each member of the Board of Directors, the company considers this to be a private matter. It is ROCKWOOLâs judgement that disclosure of such information will not add additional value for shareholders and other stakeholders. Board member remuneration does not include share-based elements.The recommendation 3.4.2, that a majority of the members of board Committees should be independent, is not applied in the Remuneration and Nomination Committee. The Board of Directors finds that the Committees can perform their functions in a prudent manner even if the majority of the members are not independent.A detailed review of ROCKWOOLâs position on each of the recommendations and a description of the internal control and risk management system relating to financial reporting can be found in the statutory report on corporate governance prepared pursuant to section 107b of the Danish Financial Statements Act at www.rockwool.com/group/about-us/corporate-governance/.Data ethics In 2021, guidelines on data ethics were implemented in accordance with the Danish Financial Statements Act section 99d. The guidelines describe how data ethics are considered and included in the use of data as well as the design and implementation of technologies used for processing of data within ROCKWOOL. The Groupâs Integrity Committee reviews and assesses the adequacy hereof on an annual basis. The guidelines are published and are available for all employees on the Group IntranetThomas Kähler Chairman Member of the Board since: 2008 Nationality: Danish Other positions related to the company: Member of the Chairmanship, Member of the Audit Committee, Chairman of the Remuneration and Nomination Committee, Member of the Kähler Family Meeting. Positions in other Danish companies: Chairman of the Board of Metier Westergaard A/S; Director and member of the Board of DURAPOR A/S; Member of the Board of Metier Westergaard Event A/S. Other positions: Chairman of the Board of the Foundation for Ukrainian Reconstruction.Competencies: Thomas Kähler has experience in management, marketing, sales and business development from international business and close relationships with major shareholders. In addition, he has a degree in electrical and mechanical engineering from the Technical University of Denmark (DIA) as well as an MBA from Copenhagen Business School. He brings expertise to energy efficiency and environmental topics, and has during 2024 completed a series of PwC ESG e-learning modules to further strengthen his knowledge base within ROCKWOOLâs material sustainability topics. Thomas Kähler participated in all Board and Audit, Remuneration and Nomination Committee meetings during 2024.Jørgen Tang-Jensen Deputy Chairman Member of the Board since: 2017 Nationality: Danish Other positions related to the company: Member of the Chairmanship, Member of the Audit Committee, Member of the Remuneration and Nomination Committee. Positions in other Danish companies: Member of the Boards of VKR Holding A/S, VILLUM FONDEN, and Maj Invest Holding A/S (and two fully-owned subsidiaries). Other positions: Chairman of the Board of Tænketanken Europa (Think Tank Europe). Competencies: Jørgen Tang-Jensen has experience in the building materials industry as well as expertise in manufacturing of energy efficiency equipment for buildings, which is one of ROCKWOOLâs material sustainability topics. He has a deep understanding of corporate governance due to his active role in several organisations. Jørgen Tang-Jensen participated in all Board and Remuneration and Nomination Committee meetings during 2024 as well as all Audit Committee meetings following his election. Independent Member of the Board. Rebekka Glasser Herlofsen Member of the Board since: 2020 Nationality: Norwegian Other positions related to the company: Chairperson of the Audit Committee. Positions in other Danish companies: Member of the Boards and Chairperson of the Audit Committees of Egmont Fonden and Egmont International Holding A/S. Other positions: Chairperson of the Boards of Norwegian Hull Club and Handelsbanken Norge, Norway; Chairperson of the Council, DNV, Norway; Member of the Board of Aibel AS and Torvald Klaveness Group, Norway; Member of the Board and Chairperson of Audit Committees of BW Offshore ASA* and Wilh. Wilhelmsen Holding ASA*, Norway; Member of the Nomination Committee of Orkla ASA*, Norway. Competencies: Rebekka Glasser Herlofsen has international experience from executive and board positions in several large companies. Over many years, she has developed financial competencies necessary in both general Board work as well as in the Audit Committee (financial expertise). In addition, she has a Master's degree in economics from the Norwegian School of Economics and Business Administration and is a Chartered Financial Analyst. She has during 2024 completed a series of PwC ESG e-learning modules, which contribute to her expertise in ethics and compliance â two matters assessed as ROCKWOOL material sustainability topics. Rebekka Glasser Herlofsen participated in all Board and Audit Committee meetings during 2024. Independent Member of the Board. Carsten KählerMember of the Board since: 2021 Nationality: Danish Other positions related to the company: Member of the Kähler Family Meeting. Other positions: Member of the Board of the Fahu Foundation. Competencies: Carsten Kähler is an attorney (Advokat) licensed by the Danish Bar and Law Society (currently the license is deposited with the Danish Ministry of Justice). He has extensive knowledge in tax and brings his expertise to corporate governance topics. He has competencies and experience within global and Danish legal and accounting companies. He also has a close relationship with major shareholders. Carsten Kähler participated in all Board meetings during 2024.Ilse Irene HenneMember of the Board since: 2022 Nationality: Belgian Member of the Executive Board of thyssenkrupp AG and Chief Executive Officer (CEO) of thyssenkrupp Materials Services. Other positions: Member of the Baden-Badener Unternehmer Gesprache e.V., Klasse 135, Germany; Member of the Board and member of the Audit Committee of Arkema S.A., France; Vice President of the Board of BVL (Bundesvereinigung Logistik); Chairperson of the Supervisory Board of thyssenkrupp Steel Europe AG; Member of the Supervisory Board of thyssenkrupp Decarbon Technologies GmbH; Chairperson of Board of Directors of thyssenkrupp North America, LLC (USA); Chairperson of Board of Directors of thyssenkrupp NA Holding Corp. (USA).Competencies: Ilse Irene Henne has managerial experience within the global building materials industry, particularly in the areas of strategical renewal, performance improvement, supply chain and sales excellence. She has completed the programme âDriving Sustainability from the Boardroomâ at the International Institute for Management Development (IMD) in Switzerland. Ilse Irene Henne participated in all Board meetings during 2024 except one meeting. Independent Member of the Board. Connie Enghus Theisen Member of the Board since: 2006 Nationality: Danish Employee representative, Senior Group Advisor, ROCKWOOL A/S. Competencies: Connie Enghus Theisen has extensive and long-term understanding of the company and of its relationships with external stakeholders.Connie Enghus participated in all Board meetings during 2024.Christian Westerberg Member of the Board since: 2018 Nationality: Danish Employee representative, Senior Project Manager, ROCKWOOL A/S. Other positions related to the company: Member of the Board of the ROCKWOOL Foundation. Competencies: Christian Westerberg has a BSc. degree in machine engineering, and brings expertise as project manager. Christian Westerberg participated in all Board meetings during 2024. Janni Munkholm NielsenMember of the Board since: 2024 Nationality: Danish Employee representative, Project assistant, ROCKWOOL Danmark A/S. Competencies: As part of the ROCKWOOL project management team, Janni Munkholm Nielsen has an understanding of the companyâs business processes and challenges.Following her election, Janni Munkholm Nielsen participated in all Board meetings during 2024. Group ManagementJes Munk Hansen President and Chief Executive Officer (CEO) starting 1 September 2024 Member of the Registered Directors (in Danish: Direktionen)Member of Group Management since: 2024Nationality: Danish and U.S citizen Responsibility: Responsible for the strategic direction and leadership of the company. Has oversight on performance, innovation and operations, resources, organisational culture, and represents the company towards stakeholders, including shareholders, investors, employees, and the public. Oversight of impact, risk and opportunities related to own workforce.Competencies: Jes Munk Hansen has several decades of experience in corporate strategy, global business and sales development as well as international acquisitions from global technology companies and within the built environment. Before taking over this role, he was CEO of Denmarkâs largest player in defense and aerospace. Jes Munk Hansen has held multiple international leadership positions during his career, several of which focused on the U.S. market where he lived for 15 years. He has held senior leadership roles within energy efficiency, building materials and lighting and brings competences to management of ROCKWOOLâs material sustainability topics.Jes Munk Hansen holds a M.Sc. degree in Forestry from Copenhagen University and an MBA from London Business School.Positions in other Danish companies: Member of the Board of WS Audiology A/S. Other positions: Member of the Board (Vice Chairman 2022-2024), The Confederation of Danish Industry (DI).Kim Junge AndersenSenior Vice President, Chief Financial Officer (CFO)Member of the Registered Directors (in Danish: Direktionen)Member of Group Management since: 2016 Nationality: DanishResponsibility: Responsible for planning and managing the Groupâs financial strategy and actions as well as capital structure and risk management. Oversees Group Functions within Finance, Legal and IT including sustainability compliance. Oversight of impact, risk and opportunities related to business conduct.Competencies: Kim Junge Andersen is highly experienced within financial and business strategy, performance and operation as well as capital markets, investments and risk management from leading international finance positions. His academic background and international experience coupled with his expertise as CFO, are necessary competencies in financial and sustainability reporting and disclosures.Kim Junge Andersen holds a degree from Copenhagen Business School with a major in Corporate Accounting and Strategic Development and has during 2024 completed a series of PwC ESG e-learning modules to further strengthen his knowledge base within this important field.Other positions: Member of the Board of FORCE Technology, Denmark.Bjørn Rici AndersenSenior Vice President, Group Operations & TechnologyMember of Group Management since: 2018 Nationality: DanishResponsibility: Responsible for strategic, technological and sustainability investments and operations, sourcing and supply chain as well as the Groupâ s health and safety and R&D process and actions. Oversees Group Functions within R&D, Technology, Sourcing and Procurement, Operational Excellence, Supply Chain and Safety, Health andEnvironment. Oversight of impact, risk and opportunities related to climate change, pollution, water & marine resources and consumers & end users.Competencies: Bjørn Rici Andersen has extensive professional and international experience from a range of leadership positions in production, operations, and technology, both with ROCKWOOL and elsewhere. Prior to taking on HQ roles with a global focus, his international experience also included positions with ROCKWOOL in Malaysia and the United Kingdom as well as other regionally focused responsibilities.Bjørn Rici Andersen holds a BSc. degree in mechanical engineering, an MBA from Henley Business School, and completed the Advanced Management Program at Harvard Business School. Other positions related to the company: Member of the Board of ScanArc Plasma Technologies AB, Sweden.Volker ChristmannSenior Vice President, Head of Insulation Central EuropeMember of Group Management since: 2015Nationality: GermanResponsibility: Oversees business and sustainability performance and strategy implementation as well as compliance at regional level.Competencies: Volker Christmann has broad professional experience in management, technical functions, logistics and industrial controlling.Volker Christmann is a certified economist of business sciences and has completed management courses from IMD in Switzerland.Other positions related to the company: Member of the Board of the ROCKWOOL Foundation.Positions in other Danish companies: Member of the Board of H+H International A/S, Denmark.Other positions: President of BuVEG Bundesverband energieeffiziente Gebäude-hülle e.V., Germany (federal association of energy efficient building envelope).Anders Espe KristensenSenior Vice President, Systems DivisionMember of Group Management since: 2021Nationality: DanishResponsibility: Oversees business, sustainability performance and strategy implementation as well as compliance at regional level.Competencies: Anders Espe Kristensen has international professional experience in business development, sales and marketing from leading positions in China and across Europe.Anders Espe Kristensen holds a M.Sc. degree in Industrial Engineering from Aalborg University, Denmark, and a diploma in international trade and marketing from Copenhagen Business School, Denmark. Other positions related to the company: Member of the Board of Akuart A/S.Henrik Frank NielsenSenior Vice President, Head of Insulation North East Europe & RussiaMember of Group Management since: 2007Nationality: DanishResponsibility: Oversees business, sustainability performance and strategy implementation as well as compliance at regional level.Competencies: Henrik Frank Nielsen has broad experience from many leading positions within the Group and from working in Asia and within the oil and gas sector.Henrik Frank Nielsen holds a M.Sc. degree in Economics and Business Administration from Aarhus Business School in Denmark and completed several marketing and strategic planning programmes.Rafael RodriguezSenior Vice President, Head of Insulation South West EuropeMember of Group Management since: 2022Nationality: SpanishResponsibility: Oversees business, sustainability performance and strategy implementation as well as compliance at regional level.Competencies: Rafael Rodriguez has broad professional experience from several leading positions within the Group and from working in the European manufacturing sector.Rafael Rodriguez holds a degree in Law from University of Navarre in Spain and a Master in Business Administration (MBA) from Instituto de Empresa Business School, Madrid, Spain.Mirella VitaleSenior Vice President, Group Marketing, Communications & Public AffairsMember of Group Management since: 2016Nationality: ItalianResponsibility: Oversees the Group Functions within marketing, communication, public and regulatory affairs as well as sustainability and the customer experience. Oversight of impact, risk and opportunities related to resource use & circular economy and affected communities.Competencies: Mirella Vitale has a broad professional and international experience in global B2B marketing, strategy, communication and public affairs. She spent 15 years in the wind industry in various leadership positions in Italy, Spain and Denmark, with a particular focus on developing emerging markets through collaborative partnerships.Mirella Vitale studied Foreign Languages and Literature at the University in Bari, Italy, completed a High Performance Leadership Program at IMD, Lausanne, Switzerland and collaborate in the SDA Bocconi MBA programme.Sustainability statementBasis for preparation[BP-1] General basis for preparation of the sustainability statement Frameworks and data selectionThe Annual Report complies with sections 99d and 107d of the Danish Financial Statements Act and fulfils the requirements to report on the management of risks related to the environment, climate, human rights, labour and social conditions, anti-corruption, gender distribution and data ethics. These requirements are addressed in Management's review. The Annual Report also complies with the EU Taxonomy Commission Regulation (EU) 2021/2139.The sustainability statement is prepared in accordance with EU's Corporate Sustainability Reporting Directive (CSRD) and the associated European Sustainability Reporting Standards (ESRS), as outlined in ANNEX I to Commission Delegated Regulation (EU) 2023/2772. Our contribution to the UN Sustainable Development Goals (SDGs) is described in the strategic priority section of the sustainability statement (pp. 51-53). For information aligned with Taskforce on Climate-related Financial Disclosures (TCFD) recommendations, see p. 122.All greenhouse gas (GHG) emissions data points (GHG Scopes 1-3) are reported based on the Greenhouse Gas Protocol. Measurement basisAccounting policies have been applied consistently in the sustainability statement for all the years presented, unless stated otherwise.Key figures and ratios are defined on pp. 166-167. All environment-related sustainability goals have 2015 as baseline year, except for the absolute GHG emissions target in Scope 1, 2 and Scope 3, with 2034 as target year, and 2019 as baseline year. As ROCKWOOL's decarbonisation targets in Scope 1, 2 and Scope 3 were set before the adoption of the CSRD legislation, there are no GHG emissions targets for 2030. This will be refined in the next reporting cycle. For the health and safety target, there is no baseline year. Description of baseline values and base years will be included in relevant sections with defined targets.Scope of reportingThe ESG data are consolidated according to the same principles applied in the consolidated financial statements. Thus, consolidated quantitative ESG data cover the parent company ROCKWOOL A/S and subsidiaries controlled by ROCKWOOL A/S and refer to own operations. Associated companies are not included in the consolidated ESG data points. Consolidation of ESG data follows these principles, unless otherwise specified in the accounting policies. Only limited historical numbers have been disclosed as the scope for many data points, mainly environmental, has changed. In previous years, reporting focused on the impact from stone wool factories. With the new CSRD legislation, full Group scope has been reported with limited impact.[BP-2] Disclosures in relation to specific circumstancesTime horizons and value chain estimates The short-term time horizon for data in the sustainability statement follows the financial statement (current year). Mid-term (between one and five years) and long-term (more than five years) horizons are aligned with the definitions under the double materiality assessment and reflects ROCKWOOLâs decision and planning horizons. Information on value chain estimates and sources of uncertainty are disclosed in the methodology section, as it relates to specific material sustainability topics and/or indicators (see pp. 57-58).Key accounting estimates and judgementsROCKWOOL uses estimates for the reporting of selected data points due to the fast closing process, if data is not readily available or as part of the methodology of calculating the required data points. The estimates and judgements are reviewed on an ongoing basis based on experience, the development of ESRS, and a number of other factors. Changes in estimates are recognised in the period in which the estimate in question is revised. In addition, ROCKWOOL makes judgements when applying the accounting policies. Below are the estimates and judgements which Management considers significant to the preparation of the sustainability statement:- GHG emissions Scope 2 and Scope 3 (E1) - EU Taxonomy (E1) - Substances of concern (E2) - Gender pay gap and remuneration ratio (S1)The accounting policies are described in each of the specific sections of the sustainability statement, which also include additional descriptions of the most significant estimates and judgements.Incorporation by reference Parts of the strategy and governance sections have been incorporated by reference. Please refer to the list of ESRS disclosure requirements and data points on pp. 59-61. Omissions and phase-in provisions ROCKWOOL has used the option to omit information on intellectual property, know-how, effects of research and development and on results of innovation in this sustainability statement. If specific data have been omitted due to intellectual property, know-how or as the results of innovation, this will be disclosed in the relevant section.ROCKWOOL uses the phase-in provisions for the following indicators that refer to 2024 material sustainability topics: E1-9, E2-6, E3-5, E5-6 and S1-7.Sustainability governance[GOV-2] Information provided to and sustainability matters addressed by the undertakingâs administrative, management and supervisory bodiesSustainability governanceSustainability is firmly anchored at the Board of Directors, Group Management and operational levels, thus ensuring the resources, knowledge and high-level input needed to engage with external and internal stakeholders and continuously improve performance. Governance and strategic sustainability initiatives, including evaluation of the impacts, risks and opportunities related to the sustainability strategy and major transactions, are consistently topics of Board and Group Management meetings. Group Management and the Board of Directors are regularly updated on sustainability-related regulatory changes, trends and market requirements, and are offered training in sustainability-related regulations. For further information on GOV-1, please refer to Corporate governance pp. 30-32.Sustainability firmly anchored at all levelsRemuneration and Nomination Board of DirectorsAudit CommitteeAdvisory and supervision levelCommitteeGroup ManagementStrategic levelApproves and provides strategic feedback to the portfolio of sustainability programmes, targets and reports to the Board of Directors.Enterprise RiskGroup Operation & TechnologyIntegrity CommitteeHuman Rights CommitteeManagement CommitteeSustainability CommitteeThe Committee comprises Group The Committee comprises members of The Committee comprises members of Group The Committee comprises members of Management members and representatives Group Management and senior managers. Management, Group General Counsel and Group Management and senior managers. of Group staff functions. Its role is to review The goal is to review and drive continuous Group Integrity Officer. The goal is to Its role is to define, promote, and sponsor and update the internal risk management sustainability improvements within operations safeguard and strengthen integrity and ensure policies and manuals; evaluate risk framework and to implement related across the Group.the Group conducts its business activities with assessments and action plans; and ensure processes.customers and society in an ethical manner.proper due diligence processes relating to human rights.Operational levelGroup function support and expertiseGlobal business units and factoriesAdvisory and supervision level Strategic level Operational level Internal control and monitoring processes Information related to sustainability matters is provided to the Audit Committee and Group Management on a quarterly basis. Material sustainability topics (as listed in the double materiality assessment on pp. 55-56) are addressed. To support the implementation of the Corporate Sustainability Reporting Directive (CSRD), a steering committee was established consisting of members of Group Management and senior managers. The steering committee held monthly meetings during 2024 to guide strategic business decisions related to the CSRD implementation.[GOV-3] Integration of sustainability-related performance in incentive schemesThe incentive schemes to Registered Directors and Group Management do not include metrics directly related to sustainability-related performance. The long-term commitment to drive our sustainability agenda is supported by the externally communicated goals under UN SDG and SBTi. Management has assessed that no further incentive is currently needed to drive ROCKWOOL's sustainability agenda.Board of Directors Group Management Senior and middle management (administrative management)Engagement On quarterly basis:On daily, monthly and annual On daily basis: î Consulting role in reference to basis: î Preparation of information materials on Group sustainability material sustainability topics, î Leadership in anchoring reporting to Group Management and Audit Committee resources, actions, policies, strategic directions and scope î Supervision, alignment and progress reporting of Group targets and progress towards of activities sustainability internal reporting standards, policies and targets î Regular meetings with relevant definitions î The Audit Committee monitors committees and senior î Qualitative and quantitative data compliance with EU CSRD-compliant reporting managers responsible for sustainability standards and frameworksand receives information on material sustainability topics î Strategic management of health and safety of own workforcesustainability reporting î Quarterly monitoring of î Quarterly and annual internal and external reporting on safety, î The Audit Committee receives progress related to strategic health and environment performance, including data collection quarterly updates on the sustainability targets and external assurance internal controls and reporting î Review of the annual î Management of human rights issues such as diversity, equality proceduressustainability reporting and and inclusion (DEI) î The Audit Committee reviews disclosures î Oversees reporting and management of activities and risks and approves the double relating to affected communitiesmateriality assessment and the î Preparation of materials and documentation for Group annual sustainability reporting Management review risks assessment î Management and coordination of sustainability external î The Audit Committee reporting and disclosures, including ESG ratingsoversees the result of the î Preparation of materials and documentation needed in the limited assurance process of external assurance process the sustainability reporting, including observations and conclusions[GOV-4] Statement on due diligence ROCKWOOL's management approach to material sustainability topics, including due diligence, are based on the following international principles and guidelines: UN Guiding Principles on Business and Human Rights, OECD Guidelines for Multinational Enterprises, and ILO conventions on occupational health & safety. More information about ROCKWOOL's due diligence mechanisms are disclosed on p. 50 and in the EU Taxonomy ('Minimum Safeguardsâ) on pp. 95-96. Core elements of due diligence Section and page a. Embedding due diligence in î Governance, pp. 46-50 governance, strategy and business î Strategy, pp. 51-53 model î Impact, risk and opportunity management, pp. 55-56b. Engaging with affected stakeholders î Interests and views of stakeholders, p. 54 in all key steps of the due diligence î Engaging with own workers and workers' representatives, p. 100 î Processes to remediate negative impacts and channels for own workers to raise concerns, p. 100 î Engaging with affected communities, p. 110 î Remediate negative impacts and channels for affected communities, p. 111 î Engaging with customers, consumers and end-users, p. 114 î Remediate negative impacts and channels for consumers and end-users, pp. 114-115 î Whistleblower platform and protection of whistleblowers, pp. 119-120c. Identifying and assessing adverse î Double materiality assessment, pp. 55-56impacts î Internal human rights risk assessments and internal audits, p. 103d. Tracking actions to address those î Climate change, p. 71adverse impacts î Pollution, p. 78 î Water and marine resources, p. 82 î Resource use and circular economy, p. 86 î Own workforce, p. 105 î Affected communities, p. 111 î Consumers and end-users, p. 115 î Business Conduct, p. 120e. Tracking the effectiveness of these î Climate change, p. 71efforts and communicating about î Pollution, p. 78them î Water and marine resources, p. 82 î Resource use and circular economy, pp. 86-87, 89 î Own workforce, pp. 101, 103, 105 î Affected communities, p. 111 î Consumers and end-users, p. 115 î Business Conduct, p. 120[GOV-5] Risk management and internal controls over sustainability reportingThe Board of Directors supervises and oversees sustainability reporting. The CFO's area of responsibility includes managing the risk and control framework associated with sustainability reporting. It also includes providing regular updates to the Audit Committee and Board of Directors.The risk and control framework relating to the sustainability statement is structured around detailed data points and their underlying processes. Definitions and calculation methodologies are aligned with ESRS, and a âcomply or explainâ approach has been applied to each data point.Once a year, a detailed sustainability reporting risk assessment is conducted. As part of this assessment, sustainability reporting risks are categorised and prioritised by assessing the risk of the individual data points using six different risk factors. The risk factors used are the relative importance of the data, the volume of the source data, the complexity of the source data, the risk of unreliable recording of the source data, the risk of manipulation of the reported data and the complexity of the calculation or consolidation of reported data. The identified risks are the following: energy consumption and emissions related to combustion sources. The identified sustainability reporting risks, the related mitigating controls and assessed residual risks, are documented and evaluated on an annual basis. Key findings and improvement plans are reported to the Audit Committee. It is also secured that mitigating controls are reflected in relevant processes and systems.ROCKWOOL due diligence mechanisms cover actual and potential negative impacts on environment, people and business conduct topicsRemediation: Repair damage or cooperation6in repairing procedures.Procedures to be followed in the event of a negative impact e.g. a meaningful dialogue with potentially affected groups and other relevant stakeholders to provide remedy for any direct impacts we cause or contribute to.Communication about how Identification & assessment 5ROCKWOOL manages its impact 2of ROCKWOOL negative impact.on human rights, environment Conduct thorough double and business conduct topics materiality assessment, continuous Annual sustainability statement, supply chain cloud-based stakeholder engagement and sustainability risk management tool, dialogue with local communities.human rights risks assessments and environmental assessments.Prevention1Fundamentals of Due Diligence: Values & Standards ROCKWOOL corporate documents (Code of Conduct; Suppliersâ Code of Conduct; Sustainable Sourcing Manual; Transition plan for climate mitigation; Human Rights Policy with internal Manuals; Safety, Health & Environment Policy along with internal Manuals; and Mandatory Minimum Requirements (MMR), Tax Strategy).Accountability: Monitoring of the Elimination & mitigation 4effectiveness of ROCKWOOL actions.Awareness & training 3of negative impacts.We analyse cases reported through the (Onboarding, e-learning, training and awareness sessions on Application of ROCKWOOL policies, whistleblowing mechanism and assume e.g. human rights risks and due diligence mechanisms for procedures, e.g. in Human Rights Manual accountability for negative impacts and managers and HR teams).we are committing to establish a corrective involve affected stakeholders in the action plan in cases where human rights evaluation of the effectiveness of actions violations are identified, categorisation and taken to prevent these negative impacts.criteria for high-risk suppliers, contractors, subcontractors and adaptation plans developed with business partners.Sustainability is central to our business strategy[SBM-1] Strategy, business model and valueROCKWOOL delivers products that help customers and communities tackle sustainability challenges, from energy consumption, decarbonisation and fire resilience to noise pollution, water scarcity and flooding.At ROCKWOOL our aim is to turn sustainable development challenges into business opportunities by developing innovative, safe products that address some of the most significant societal challenges of our time. As a durable, recyclable, non-combustible, and versatile material, stone 1wool forms the basis of our business. Sustainability is the foundation that underpins the ROCKWOOL business model and value chain.Since 2016, ROCKWOOL has been aligned with the United Nations Sustainable Development Goals (UN SDGs) framework. Drawing on extensive consultation with both internal and external stakeholders, we have prioritised 10 of the 17 SDGs. This was confirmed by the double materiality assessment. Gender equality (SDG 5) and Peace, justice and strong institutions (SDG 16) were added in 2024. We have targets related to gender equity and a target for the ratio of active employees in at-risk functions who received Code of Conduct training.Most of ROCKWOOL's goals are set prior to implementing the CSRD regulation. The goals are aligned with the 10 SDGs that we have identified as most applicable, and these serve as the guiding framework. Two of the sustainability goals are validated by the Science Based Targets initiative (SBTi). 1 Total revenue is generated by activities linked to NACE 23.99 "Manufacture of non-metallic products" (SBM-1 40 b and c).Sustainability strategyOur purpose: Releasing the natural power of the stone to enrich modern livingReducing our environmental footprint (E) Empowering people & society (S)Integrity through responsible business conduct (G)S1 OWN WORKFORCE: HEALTH & SAFETYE1 CLIMATE CHANGE⪠Zero fatalities and serious incidents⪠By 2030, reduce emissions of CO per tonne of stone wool 2produced by 20 percent (2015 as baseline)S1 OWN WORKFORCE: HUMAN RIGHTS2⪠By September 2025, 100 percent of stone wool factory ⪠By 2030, reduce energy consumption (kWh/m) in own office buildings by 75 percent (2015 as baseline)managers, technical directors, occupational health & safety ⪠By 2034, reduce absolute GHG emissions (COe) in Scope 1 managers and local human resources teams complete the G1 BUSINESS CONDUCT: INTEGRITY2and 2 by 38 percent (2019 as baseline)training on human rights risks and due diligence mechanisms90 percent of active employees trained in Code of Conduct, ⪠By March 2025, 100 percent of human resources community incl. prevention of corruption and bribery and whistleblower OurE3 WATER AND MARINE RESOURCEScomplete the training covering manuals on counteracting forced mechanism sustainability⪠By 2030, reduce water use per tonne of stone wool produced and/or child labourgoalsby 20 percent (2015 as baseline)G1 BUSINESS CONDUCT: SUSTAINABLE SOURCINGS1 OWN WORKFORCE: GENDER EQUITY Onboarding strategic business partners and strengthening E5 RESOURCE USE AND CIRCULAR ECONOMY⪠33 percent women shareholder-elected Board Membershuman rights and environmental criteria in our supply chain⪠By 2030, reach 30 countries with recycling services for our ⪠35 percent women in middle and executive managementproducts⪠By 2030, reduce landfill waste (tonnes) from our stone wool S3 LOCAL COMMUNITIESproduction by 85 percent (2015 as baseline)⪠By end of 2025, 100 percent of stone wool factory managers, technical directors, safety and environmental managers and local HR teams complete training on the Community Engagement ManualInnovation and automation through R&D and digital initiativesOur contribution to UN SDGsOur value chain UPSTREAMOWN OPERATIONSDOWNSTREAMScope 3Scope 1 and 2Scope 3Material topics in environment area: Climate change adaptation, mitigation and energy consumption mix; Circularity: resources inï¬ows, outï¬ows, incl. waste and packaging; Substances of concern.Material topics in environment area: Pollution of air, Water withdrawal.Material topics in social area: Consumersâ and end-usersâ health and safety.Material topics in social area: Own workforce: working conditions and human rights with focus on health and safety and counteracting forced and child labour; Own workforce: gender equity and gender pay gap; Local communities.Material topics in business conduct area: Prevention and detection Access to renewable energyof bribery, anti-corruption, protection of whistleblowers.Enabling more carbon-efficientbuildings and industryReducing absolute Scope 3 Reducing absolute Scope 1 GHG emissionsEnabling more and 2 GHG emissions Enabling durable, circular energy-efficientand fire-safe infrastructurebuildings and industryZero fatalities, zero serious accidentsEnergy useIncreasing the ratio of women in middle and executive managementVirgin raw materialsand secondary materialsReducing landfillfrom other industrieswaste from productionReduce water use per tonne Strong culture of integrityof stone wool Recycling used stone wool from the marketRecycling to otherindustries and landfillingProtecting water resources[SBM-2] Interests and views of stakeholdersMaterial stakeholders and their relation with Topics addressed Engagement method Purpose and outcome of the stakeholder strategy and/or business modelengagementEMPLOYEES î ROCKWOOL's strategy, performance and outlook, incl. wage î ROCKWOOL's intranet î Improvement of bottom-up and top-down One of ROCKWOOL key assets (Human and intellectual level î Day-to-day meetings with managers, incl. regular communication related to prevention internal communication with employees capital) î Working conditions, including employee health and safety of accidents î Automation of monotonous jobs in factories î Product sustainability, incl. carbon footprint î Internal town hall presentations and operations î Innovation and automation in factories î Annual RockPulse employee satisfaction survey î Higher levels of employee satisfaction î Training and skills development î Annual meetings with employeesâ representatives through ROCKWOOL European î Corporate culture Forum, local work councils, or local employee representatives î Organisational, operational and administrative topics î Whistleblower platform î Internal surveys and structured interviews during double materiality assessment CUSTOMERS î Commercial terms î Regular surveys: tracking response rates and comments (e.g., Net Promoter Score tool) î Improved technical and sustainability Construction sector, incl. real estate investors, architects î Technical performance of ROCKWOOL products î Seminars: face-to-face and online with customers performance of ROCKWOOL products, and distributors drive our demand î Product sustainability, incl. carbon footprint î Education and trainings in reference to our products in cooperation with installers, meeting customer expectations, and î Product compliance with taxonomy-alignment and other construction companies, students and universities positive reputationrelevant criteria î Daily contact with customers î Product improvement through R&D and î Surveys and structured interviews during double materiality assessment innovation î Whistleblower platformEND-USERS î Technical, sustainability, and other relevant performance î Technical performance information, incl. health and safety aspects extensively î Improved technical, health and safety Businesses purchasing our products as well as people factors for ROCKWOOL products, incl. fire safety and other communicated via corporate webpages and product documentationperformance of ROCKWOOL products living, working, learning, and recovering in buildings health performance aspects î Whistleblower platform î Improved understanding of product where our products are usedperformance aspects among end-usersREGULATORS î Financial and operational performance including annual î Regular contact and correspondence with headquarters in Denmark as well as with î Full regulatory compliance Danish financial supervision commission, representatives reports, regulatory issues regional offices and factories î Long-term relations with relevant regulatory of EU, national and local administrations that influence, î General compliance incl. environmental compliance and î Engagement via industry associations, such as Confederation of Danish Industries in authorities define or enforce regulationspermits of factories DenmarkFINANCIAL INSTITUTIONS î Financial and operational performance î Quarterly financial results and annual reports î Confidence in accuracy and credibility of ESG ratings entities, insurance companies, investors and î Strategy and outlooks î Investor relations meetings and presentationsdisclosed informationbanking sector that influence access to financial capital î Material sustainability topics î Regular contact with Group investor relations function î ESG ratings î Governance and compliance î Surveys and structured interviews during double materiality assessment î Identification of material sustainability topics SUPPLIERS î Commercial, quantity, technical and sustainability terms î Internal audits and risk assessments, incl. environmental, social and governance topics î Long-term relations with suppliers Big, medium and small-local business activities î Performance reviews î Whistleblower platform î Robust sustainability performance among î Surveys and structured interviews during double materiality assessment suppliersLOCAL COMMUNITIES î Cooperation with local suppliers î Corporate website and social media î Positive ROCKWOOL impact on local job Community members, groups, and organisations, î Support for local events, causes, and organisations î Contact with ROCKWOOL local offices and factory representativescreation and economic activity including current and prospective business partners î Engagement with local communities î Sponsorships, open house and other events, and cooperation with educational entities î Positive, active ROCKWOOL role in local and educational institutions î Whistleblower platform communities Impact, risk and opportunity management [IRO-1] Description of the process to identify and assess material impacts, risks and opportunitiesThe double materiality assessment (DMA) was carried out in the second half of 2023 and updated in 2024. The DMA will be reviewed and updated annually. Moreover, we will revisit the assessment if any significant internal or external changes occur, such as significant strategy reviews, regulatory developments, or evolving stakeholder expectations.Through the DMA, material sustainability impacts, risks and opportunities were identified. More than 50 sustainability topics were assessed using the methodology described below.ScopeThe DMA covered the entire ROCKWOOL Group, the whole value chain and all geographies. In the upstream value chain assessment, we focused mostly on Tier 1 - direct suppliers and business partners, but also considered Tier 2 and cradle-to-Tier 3 whenever material (e.g. raw materials extraction, specific geographies with assessed high human rights risks and/or with high environmental risks). In the downstream value chain assessment, Tier 1 (corporate customers), Tier 2 (end-users of our products) and Tier 3 (e.g. owner of buildings) were considered. For relevant topics that could give rise to heightened risk, potential negative impacts were discussed with the different stakeholders.Materiality was assessed from both an impact and financial perspective: î From an impact materiality perspective, actual and/or potential negative impacts over short-, medium- or long-term time horizons and based on scale, scope, and irremediable character of the impact, were assessed. Actual and/or potential positive impacts were assessed based on scale, scope and in case of potential positive impact, on likelihood; î From a financial materiality perspective, ROCKWOOL assessed over short-, medium- or long-term time horizons, actual and/or potential risks and opportunities using the two parameters: likelihood of occurrence and the potential magnitude of financial effects.Stakeholder engagementInterests and views of internal and external stakeholders were considered through analysis of environmental and human rights risk assessments, past events, and internal and external surveys carried out within the past two years. ROCKWOOL conducted additional comprehensive surveys and structured one-to-one interviews among representatives of selected internal and external stakeholders. This included human resources, business entities and finance as well as financial institutions, customers and business partners so that different concerns and perspectives were taken into account. Additionally, we engaged internal subject matter experts by carrying out two workshops dedicated to environmental and social topics. There has been no direct consultation with affected stakeholders.ScoringEvaluation of impact materiality (green) was a result of four parameters, all of which were scored on a scale of one to five.The financial materiality score (orange) was a quotient resulting from the size of the potential financial effect (risk and/or opportunity) added with its likelihood, each scored on a scale of one to five, and then divided by two.Criterion Description Score of one Score of fiveScale The scale of Minimum impact on Large scale impact ROCKWOOL's people, environment, with high damage impact on economyincluding complete sustainability topicsdestruction or fatalityScope The scope of Immediate Country and/or ROCKWOOL's surroundings (e.g., global reachimpact on ROCKWOOL factory sustainability topicsand/or less than 10 affected stakeholders)Irremediability Irremediable Very easy to remedy Non-remediablecharacter of with very low to low ROCKWOOL's effortimpact on sustainability topicsLikelihood Likelihood of Rare, remote Almost certain, event ROCKWOOL's likelihood that the may/is expected to impact on event will occur (i.e., occur. If the impact sustainability topicsless than once every has occurred, scored 10 years)as fivePotential The probability Probability that the Probability that the (likelihood) of the event will occur is event will occur is financial effectpotential financial < five percent; > 95 percent; event effectremote likelihood may occur within one that event will occur year(less than onceevery 10 years)For likelihood, whenever an impact has occurred, even if the event took place in a single geographical area or in a particular business entity, the likelihood was scored as five.The size of the potential financial effect (risk and/or opportunity) was aligned with Group financial materiality, referring to revenue, EBIT or assets.While scoring risks, both gross risk and mitigating actions were assessed. Any risk was first assessed as a gross risk (hazard, exposure, vulnerability), and then reassessed with mitigation measures in order to determine the potential impact on ROCKWOOL's assets and supply chain. Additionally, whenever a potential negative human rights impact was identified, the severity of the impact took precedence over its likelihood.Throughout the DMA analysis and impact prioritisation, risks and opportunities, global trends, and market-specific regulatory requirements were considered. This included factors that could affect relationships with customers, distributors, or local markets. From an input parameters perspective, the following sources covering all ROCKWOOL global activities and geographies, were used: international customersâ expectations with focus on customers from the most regulated market; local environmental authority requirements; past events with local communities; internal employee satisfaction surveys; financial institutions ratings; and recommendations. For further description of the managerial risk evaluation process, please refer to Sustainability governance on pp. 46-49.Materiality threshold î For impact materiality, the threshold was set at above two (informative), which means that topics with impact materiality lower than or equal to two have minimal informative value. î The financial materiality threshold was set at equal to and above three (significant) and is aligned with financial materiality at Group level.Process stepsAfter assessment of the topics based on the described process, the consolidated results were reviewed and validated by Group Management and the Board of Directors. The sustainability topics identified as material are not new to ROCKWOOL and most of them have been part of the Enterprise Risk Management process for a numbers of years.List of 13 material sustainability topicsEnvironment 1. Climate change adaptation and mitigation 2. Energy3. Pollution of air 4. Substances of concern5. Resources use6. Resources outflows, incl. waste, packaging, and circularity principles7. Water withdrawalSocial 8. Own workforce health and safety, human rights9. Own workforce gender equity and gender pay gap10. Affected communities: communitiesâ economic and social rights11. Consumers and end-users' health and safetyGovernance 12. Prevention of corruption and bribery13. Protection of whistleblowersMaterial impacts, risks, and opportunities and their interaction with strategy and business model[SBM-3]The impacts, risks and opportunities are categorised in own operations (OO), upstream (U), downstream (D), or within our value chain (VC). It is also indicated whether the impacts are positive or negative. ESRS Material impacts, risks and/or Classification Time horizon Location in value Description and interaction with business model and /or strategystandardopportunitieschainE1 Climate Transitional risks due to Negative impact Medium-term VC Classified as a "high climate impact sector," most stone wool factories use fossil fuels, impacting climate change and exposing changeincreasing carbon costs and and risks ROCKWOOL to rising carbon costs. These risks are presented in more detail in the scenario analysis on pp. 64-66embodied carbon levelMitigation: Transition plan for climate change mitigationPhysical risks due to acute Risks Medium-term VC ROCKWOOLâs factories, key assets with capital-intensive technologies, could be harmed by acute climate changes. These physical risks climate changesare presented in more detail in the scenario analysis on pp. 64-66Mitigation: Regular monitoring, evaluation and mitigation in cooperation with insurers and expertsNon-combustible energy saving Opportunity Medium-term VC Increased demand for insulation products is an opportunity presented in more detail on pp. 64-66products contribute to green transitionE2 Pollution Air emissions other than GHG Negative impact Short-term OO The production process entails melting raw materials at temperatures about 1,500°C and curing wool fibres at around 450°C. This and risksprocess generates pollution of air other than GHG emissions, such as NO, SO, CO, PM, and other substances. With increasingly x210demanding EU and international regulations and local community awareness, the risks linked to air emissions are significantMitigation: Abatement installations and R&D focused on new binder technologiesUse of chemicals in binders Negative impact Medium-term OO ROCKWOOL's stone wool production technology uses substances of concern as binder ingredients. These chemicals could expose and risksROCKWOOL to risks linked with increasingly demanding environmental standards Mitigation: R&D focused on moving towards new bindersE3 Water Water use Negative impact Medium-term OO Water is used for stone wool production, mainly to cool the melting furnace. Access to water in water stressed areas could lead to an and marine and risks operational risk by limiting production capacity and negatively impact the environment. This is relevant for the seven factories located resourcesin water stressed areasMitigation: Group target to reduce water use per tonne of stone wool producedE5 Resources Stone extraction Negative impact Medium- and long-U and OO Stone wool production uses stone, an abundant raw material, the use of which entails quarrying that can impact the environmentuse and termMitigation: application of circularity principles (recyclability and durability) and tracking effectiveness through a circularity dashboardcircular Waste and plastics in packaging Negative impact Short- and D Stone wool factories generate waste and use plastic in packaging. Risks are linked with increasingly demanding market standardseconomyand risksmedium-termMitigation: Tracking effectiveness of circularity principle through a dashboard that includes a target of reducing waste to landfill from stone wool productionESRS Material impacts, risks and/or Classification Time horizon Location in value Description and interaction with business model and /or strategystandardopportunitieschainS1 Own Working conditions in Negative impact Short-term OO ROCKWOOL's production technology involves working with chemicals, heavy equipment and at high temperatures, which may lead to workforceproductionand risksnegative impacts on health and safety of own workforce, including potential fatalitiesMitigation: Continued reinforcement of the health and safety management systemExposure to four salient human Negative impact Short- and OO Factories use contract workers to meet short-term production needs. Some are employed by local agencies, and we have assessed their rights risks, especially in high-and risksmedium-termexposure to four human rights risks: working conditions, health and safety, and child and/or forced labour risk countriesMitigation: Continued reinforcement of the human rights due diligence mechanismGender bias in manufacturing Negative impact Short- and OO Balancing gender representation in manufacturing is challenging due to working conditions, which may limit diversity. Increased and risksmedium-termregulatory requirements and investment strategies by financial institutions pose a risk to gender diversityMitigation: Implementation of actions supporting the increase of female leadership in senior and middle management positionsS3 Affected Business opportunities for local Positive impacts Short- and OO ROCKWOOL generates employment, investment, tax revenues, and business opportunities for suppliers of goods and services within communitiessmall and medium enterprisesand opportunities medium-termcommunities where we are locatedLocal communitiesâ concern Negative impacts Short- and OO ROCKWOOL's production process generates air emissions and requires the use of chemicals. Some of these emissions and chemicals about air emissions and the use and risksmedium-termcan, in high concentrations, have health impactsof chemicalsMitigation: All factories operate within regulations set by the country in which they are located as well as comply with ROCKWOOL's Mandatory Minimum Requirements to safeguard employees, contractors, local populations and the environmentS4 Consumers Increased safety, health and Positive impacts Short- and D ROCKWOOL products, including insulation, acoustic ceilings, cladding systems, horticultural solutions, and engineered fibres help and end-userswellbeing of end-usersand opportunitiesmedium-termaddress major sustainability challenges like energy consumption, fire resilience, noise pollution, water scarcity, and floodingG1 Business Anti-corruption and protection Risks Short- and OO Non-compliance in anti-corruption, bribery and protection of whistleblowers could exclude ROCKWOOL from tenders and/or conductof whistle blowersmedium-termcommercial partnershipsMitigation: Prevention through awareness-raising and training as well as continued reinforcement of these mechanismsD: DownstreamOO: Own operationsU: UpstreamVC: Throughout the whole value chain[IRO-2] Disclosure requirements in ESRS covered by the undertaking's sustainability report General informationStandard ESRS Indicator PageGeneral disclosures BP-1 General basis for preparation of sustainability statement 44BP-2 Disclosures in relation to specific circumstances 44-45Governance GOV-1 The role of the administrative, management and supervisory bodies 30-32GOV-2 Information provided to, and sustainability matters addressed by the undertakingâs administrative, management and supervisory bodies 46-48GOV-3 Integration of sustainability-related performance in incentive schemes 48GOV-4 Statement on due diligence 48-49GOV-5 Risk management and internal controls over sustainability reporting 49-50Strategy SBM-1 Strategy, business model and value chain 51-53SBM-2 Interests and views of stakeholders 54SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 57-58Impact, risk and opportunity management IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 55-56IRO-2 Disclosure requirements in ESRS covered by the undertakingâs sustainability statement 59-61Environmental informationStandard Material topic (IROs) ESRS Indicator PageE1 Climate Climate change adaptation, E1-1 Transition plan for climate change mitigation 67-68changemitigation and energyE1-2 Policies related to climate change mitigation and adaptation 69E1-3 Actions and resources in relation to climate change policies 70E1-4 Targets related to climate change mitigation and adaptation 71E1-5 Energy consumption and mix 71-72E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 73E1-7 Removal GHG through carbon credits ROCKWOOL does not remove GHG emissions through carbon creditsE1-8 Internal carbon pricing 73-74E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities Not reported for 2024 due to use of phase-in provisionStandard Material topic (IROs) ESRS Indicator PageE2 Pollution Pollution to air and E2-1 Policies related to pollution 76, 77substances of concernE2-2 Actions and resources related to pollution 77E2-3 Targets related to pollution to air and to substances of concern 78E2-4 Pollution of air 78E2-5 Substances of concern 76, 78E2-6 Anticipated financial effects from pollution-related impacts, risks and opportunities Not reported for 2024 due to use of phase-in provisionE3 Water and Water withdrawal E3-1 Policies related to water and marine resources 80marine resourcesE3-2 Actions and resources related to water and marine resources 81E3-3 Targets related to water and marine resources 82E3-4 Water consumption 82E3-5 Anticipated financial effects from water and marine resources-related impacts, risks and opportunities Not reported for 2024 due to use of phase-in provisionE5 Resource Circularity â resources E5-1 Policies related to resource use and circular economy 84use and circular inflows and outflows, incl. E5-2 Actions and resources related to resource use and circular economy 84-85economywaste and packagingE5-3 Targets related to resource use and circular economy 86E5-4 Resource inflows 87-88E5-5 Resource outflows 88-89E5-6 Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities Not reported for 2024 due to use of phase-in provisionSocial informationStandard Material topic (IROs) ESRS Indicator PageS1 Own workforce Health and safety, human S1-1 Policies related to own workforce 99, 101-102, 104rights and gender equityS1-2 Processes for engaging with own workers and workersâ representatives about impacts 100S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns 100S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own 101, 102, 103, 104workforce, and effectiveness of those actionsS1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 105S1-6 Characteristics of the undertakingâs employees 106Standard Material topic (IROs) ESRS Indicator PageS1 Own workforce Health and safety, human S1-7 Characteristics of non-employee worker Not reported for 2024 due to use of rights and gender equityphase-in provisionS1-14 Health and safety metrics 107 S1-16 Compensation metrics (pay gap and total compensation) 108S3 Affected Local communities S3-1 Policies related to affected communities 110communitiesS3-2 Processes for engaging with affected communities about impacts 110S3-3 Processes to remediate negative impacts and channels for affected communities to raise concerns 111S3-4 Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to 111affected communities, and effectiveness of those actionsS3-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 111S4 Consumers Consumer and end-users S4-1 Policies related to consumers and end-users 114and end-usershealth and safetyS4-2 Processes for engaging with consumers and end-users about impacts 114S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 114 -115S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to 115consumers and end-users, and effectiveness of those actionsS4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 115Governance informationStandard Material topic (IROs) ESRS Indicator PageG1 Business Protection of whistleblowers G1-1 Business conduct and corporate culture in terms of protection of whistleblowers 117-119conductCounteracting corruption G1-3 Prevention and detection of corruption and bribery 119-120and briberyG1-4 Confirmed incidents of corruption or bribery 120ROCKWOOL specific KPIStandard ROCKWOOL indicator PageE1 Climate change Scope 1 and 2 CO emission intensity 712Energy efficiency in own buildings 71E3 Water and marine resources Water use intensity 82E5 Resource use and circular economy Number of countries with comprehensive reclaimed material schemes 86Landfill waste from our stone wool production facilities 86S1 Own workforce Percentage of female leaders in executive and middle management positions 105, 108Zero fatalities and zero serious accidents 107Environmental informationE1 Climate changeStone wool, the foundation of all ROCKWOOL businesses, is a recyclable, non-combustible, durable, and versatile material that plays a crucial role in addressing today's climate challenges, while the production process is energy-intensive, contributing to GHG emissions. [SBM-3] ROCKWOOL innovates, produces and delivers materials and products that provide solutions for climate-related challenges such as energy efficiency, fire resilience, and water management. While the production process is capital- and energy-intensive, which contributes to greenhouse gas (GHG) emissions, ROCKWOOLâs most advanced production technologies are designed to run on energy from low-carbon and renewable sources, which limit negative impacts on climate change and transitional risks.Material impacts, risks and/or Classification Time horizon Location in Description and interaction with business model and/or strategy opportunitiesvalue chainTransitional risks due to increasing Negative Medium-term VC Classified as a "high climate impact sector," most stone wool factories carbon costs and embodied carbon impacts and use fossil fuels, impacting climate change and exposing ROCKWOOL levelrisksto rising carbon costs. These risks are presented in more detail in the scenario analysis on pp. 64-66Mitigation: Transition plan for climate change mitigationPhysical risks due to acute climate Risks Medium-term VC ROCKWOOLâs factories, key assets with capital-intensive technologies, changescould be harmed by acute climate changes. These physical risks are presented in more detail in the scenario analysis on pp. 64-66Mitigation: Regular monitoring, evaluation and mitigation in cooperation with insurers and expertsNon-combustible energy saving Opportunity Medium-term VC Increased demand for insulation products is an opportunity presented in products contribute to green more detail on pp. 64-66transition[IRO-1] ROCKWOOL climate scenario analysis With a large number of factories and production processes that are both capital- and energy-intensive, ROCKWOOL is subject to climate-related transitional and physical risks. Transitional risksIn terms of transitional risks, regulations can represent both a major risk and opportunity for ROCKWOOL â an opportunity from rising demand for energy saving solutions for buildings and technical installations â and a risk as regulations like Emission Trading Schemes (ETS) can increase the financial burden. The decarbonisation strategy will reduce the GHG emissions intensity, as we are increasingly using low-carbon and renewable energy sources. Governance over climate-related risks and opportunities:Board of Directorâs oversight of climate-related risks and opportunities Group Managementâs role in assessing and managing climate-related risks and opportunities î The Board of Directors is responsible for ensuring that the Groupâs risk î Risk management is part of the CFO's area of responsibility and includes exposure, including climate-related topics, is consistent with the targeted providing regular updates to the Audit Committee and Board of Directors;risk profile and evaluates that appropriate awareness and management î The Enterprise Risk Management Committee is responsible for reviewing processes are in place;and updating the internal risk management framework and implementing related processes. Climate-related risks and opportunities are closely linked î In 2020, the Board of Directors approved the SBTis goals; monitor progress to the Groupâs financial and commercial strategy relating to the sale of toward achieving these;carbon emission-abating products. As such, these risks and opportunities î In 2022, the results from the climate-scenario analysis on physical are integrated into the different business unit strategies, which are updated and transitional climate risk were presented to and discussed with the Board annually.of Directors; î Additionally, the CEO is responsible for climate-related issues, incl. annual î The Board of Directors reviews and guides annual budgets, including budgets for climate mitigation and adaptation activities.decarbonisation and transition plans, oversees major capital expenditures, acquisitions, mergers and divestitures, and reviews innovation and R&D priorities linked to climate-related risks and opportunities.Physical risks In 2022, a climate scenario analysis was conducted to evaluate physical climate-related risks across ROCKWOOL's global manufacturing footprint. Two alternative climate change scenarios were analysed â a âhigh physical impactâ 4°C warming scenario and a ârapid transitionâ scenario, where warming is limited to 1.5-2.0°C. In each scenario case, the time horizons 2030 and 2050 were used. In addition, to the climate scenario analysis, a separate water scarcity assessment was carried out. As a result of this assessment, we identified one additional factory in a water stressed area. In total, seven stone wool factories are located in water stressed areas.The above mentioned analysis and assessments are carried out every three to five years and form the basis for implementing and refining the resilience strategy. The ROCKWOOL resilience strategy consists of a transition plan (see pp. 67-68) and environmental targets (see p. 71) with the purpose to reduce GHG emissions and limit the environmental footprint.Identified climate change physical risks and opportunities:Time horizon Business as usual Rapid-transition (High physical impact with ~4°C warming)(Relatively safe physical impact with ~1.5°C warming)This scenario is a merger of RCP 8.5 - SSP 5-8.5 and assumes This scenario is a merger of RCP 4.5 - SSP 2-4.5, assumes high no mitigation actions on GHG emissions and predicts that the mitigation actions on GHG emissions and implementation of rate of emission reductions will be incompatible with current the Paris Agreement, which means that climate change would declarations of UN Member States. be halted at relatively safe level. Actual and short-term î Heavy precipitation and flash flooding: damage to assets and/or products, and supply chain disruption due to heavy risks and their impacts precipitation.on ROCKWOOL own î Heat stress: impact on ROCKWOOL's employees due to sustained higher temperatures and/or heat waves may reduce operations and upstream productivity and can lead to adverse health effects.value chain î Water stress: production and supply chain disruptions due to limited availability of water. î Drought: water is an essential element in the mining process. Therefore, droughts can cause disruptions in the supply chain. î Riverine flooding: damage to assets and production disruptions due to riverine flooding at/near production sites and supply chain disruptions. î Windstorms: damage to assets, products and/or infrastructure (e.g. power grid) due to high wind speed from windstorms.Mid-term (2030) î Heavy precipitation and flash flooding (3 factories) î Heavy precipitation and flash flooding (3 factories) î Heat stress (3 factories) î Heat stress (3 factories) î Water stress (1 factory) î Water stress (1 factory) î Riverine flooding (1 factory) î Riverine flooding (1 factory)Long-term (2050) î Heavy precipitation and flash flooding (17 factories) î Heavy precipitation and flash flooding (9 factories) î Heat stress (10 factories) î Heat stress (7 factories) î Water stress (3 factories) î Water stress (4 factories) î Chronic drought (3 factories) î Chronic drought (2 factories) î Riverine flooding (1 factory) î Riverine flooding (1 factory)Climate-related physical and transitional risks and opportunitiesClimate-related risks and opportunities Risk / Opportunity Time horizon Management methodPhysical acute and chronic risksIncreased variability of precipitation and weather patterns Risk: With 42 factories and capital-intensive production, some ROCKWOOL Medium- to long-term The risk is managed by business units, and is subject to regular factories face increased severity and frequency of extreme weather events like flash monitoring, evaluation and mitigation in cooperation with insurers floods and riverine flooding.and experts.Opportunity: ROCKWOOL Rainwater Systems buffer rainfall from extreme events Short- to long-term Active response to growing market demand. for infiltration into the soil or discharge to the sewer. These stone wool elements, absorbing 95 percent of their volume in water, are used under roads, streets, squares, car parks, industrial estates, and water retention areas to mitigate water nuisance, helping build climate-resilient cities.Drought, including water scarcity Risk: This risk was identified at seven factories. See section E3 Water and marine Medium- to long-term The risk is managed by business units, and is subject to regular resources for more details. monitoring, evaluation and mitigation in cooperation with insurers and experts.Opportunity: Drought and water scarcity present an opportunity for Grodan, Medium- to long-term Active response to growing market demand. which produces stone wool substrates for horticulture that use less water, land, and fertilizer than traditional soil.Transitional risks Policy and regulatory risksRegulation presents both a risk and opportunity for Risk: In 2024, 15 factories were included in the EU ETS Phase IV (2020-2030), two Short- to medium-term For the period 2020-2030, the mineral wool sector has been ROCKWOOL: an opportunity to boost demand for factories were in emission trading systems connected or similar to the EU ETS granted EU carbon leakage, which significantly increases the energy-saving solutions, and a risk due to potential (Switzerland and UK) and one was part of a local ETS (Canada).number of free allowances allocated to each factory. The financial burdens from carbon emissions. ROCKWOOLâs decarbonisation strategy reduces GHG emissions by using more factories, included in the EU ETS or similar schemes, are at Opportunity: Increased demand for energy saving solutions such as insulation.low-carbon and renewable energy sources, mitigating future risk of increasing carbon costs.financial risks for the Group.Energy supplyThe risk of energy shortage in the grid, including natural Risk: ROCKWOOL's production is energy intensive. ROCKWOOL's future gas Short- to medium-term Alternative energy processes and sources have been identified for gas shortage in European grid. dependence will remain fairly stable while electricity dependence will increase.key European factories. Furthermore, the energy strategy has been reviewed and includes the use of power purchase agreements to ensure stable supply and to prevent material fluctuations in energy prices.[E1-1] Transition plan for climate change mitigationThe transition plan and targets related to climate change mitigation refer to stone wool factories and are approved by the Board of Directors, strategically managed by Group Management and executed operationally by Group Operations and Technology.Aligned with the Paris Agreement and compatible with limiting global warming to the well-below 2°C pathway The Group's mitigation efforts are aligned with the Paris Agreement, compatible with limiting global warming to the well-below 2°C pathway, approved by SBTi in 2020, and the objective of achieving Net-Zero by 2050 with residual GHG emissions. In 2019, when setting these targets, ROCKWOOL assumed a steady company growth coupled with a decarbonisation focus on Europe and North America. In these two regions, we observed customersâ rising focus on the environmental footprint of our products as well as no new regulatory elements that could disturb the market. The transition plan is not aligned with the 1.5°C trajectory. Together with other companies in the non-metallic mineral manufacturing sector, ROCKWOOL is discussing a sectoral pathway approach with SBTi. We continue to evaluate and model potential scenarios in order to align with the 1.5°C pathway.ROCKWOOL transition plan for climate change mitigationROCKWOOL's production processes are energy intensive, and ROCKWOOL is classified as part of the high climate impact sector. Approximately 70 percent of the GHG emissions are generated in Scope 1 and 2. As we are striving to meet own and global climate goals, ROCKWOOL is required to decarbonise operations to the greatest extent possible.Electrifying the melting processes, which is embedded in the investment strategy and financial planning, has the greatest impact on reducing GHG emissions in Scope 1 and 2 as well as in category 3 in Scope 3, which covers fuel- and energy-related GHG emissions not included in Scope 1 or 2. In 2024, ROCKWOOL invested 262 MEUR in electrification, upgrading of factories (including digital investments), abatement technologies to reduce GHG emissions, conversions and optimisation of production lines and preparing new ones. Additionally, 67 MEUR research and development costs were expensed. Both amounts are part of taxonomy-aligned disclosures in reference to CAPEX and OPEX. On top of that, we had a necessary 8 MEUR investment in third-party assets related to electricity grids. Altogether, 337 MEUR were allocated for the transition plan for climate change mitigation. Different geographies, different infrastructure ROCKWOOL has factories in 23 countries, each with different political, economic and business conditions, maturity of renewable energy infrastructure, supply chain constraints and customer preferences. Among the most salient factors influencing electrification plans and priorities are the readiness of a region's electricity grid to handle large-scale factories as well as availability and access to sufficient quantities of low-carbon electricity. Even in countries with clear electrification strategies, there can be considerable delays before infrastructure catches up. In some instances, it can take up to 10 years to connect to the electricity grid.ROCKWOOL transition plan for climate change mitigationROCKWOOL transition plan for climate ch2019 2020 2021 2022 2023 2024Our transition plan is structured around three main levers:(1) Energy efficiency, improvement of stone wool factories and administrative buildings, leading to reduction of energy consumption and reducing Scope 1 and 2 GHG emissions: optimis-ing production processes (heat recovery), upgrading equipment (solar panels, insulation, electric forklifts, and more energy efficient machinery) and improving facility management;(2) Technology innovation, leading to reduction of GHG emissions in Scopes 1, 2 and 3: electrification of production lines, along with securing renewable energy supply, new capacity with electric melting technology, conversions from coal to natural gas or biogas, R&D focused on binders, infrastructure linked to new binders;(3) Circularity, leading to reduction of GHG emissions in Scope 3: focus areas include durability, programmes and infrastructure for taking waste back from the market (incl. Rockcycle and briquetting plants), designing out waste and pollution, keeping materials at their highest value, and aiming to reduce the amount of virgin materials used.COe [kt]23,1193,0473,0293,0002,7912,67232,588Scope 3:1.04 Mt COe220% reduction 2,000Scope 2:in Scope 3 0.33 Mt COeabsolute value¹Scope 3:20.84 Mt COe2Scope 2:~0 Mt COe21,000Scope 1:38% reduction1.75 Mt COein Scope 1 & 2 2Scope 1:Net-Zero: -90%absolute value²1.2 Mt COe2in GHG emission1) Target approved by SBTi in 2020 but not in scope of limited assurance. Total COe Scope 1 Scope 2 Scope 32) Target aligned with well-below 2ºC pathway, approved by SBTi and in scope of limited assurance.Possible carbon offsets23) Disclosed performance of Scope 3 and thus total COe, in 2019-2023 is not in scope of limited assurance.2for residual GHG emissions Climate change mitigation, adaptation and energy[E1-2] Policies related to climate change mitigation and adaptation Group policy Description Scope AccountabilityCertification of Stone wool factories comply with the following ISO standards to accurately monitor performance and progress towards climate All ROCKWOOL stone wool factories are Group Management is promoting the approach factories with ISO goals:covered by this management approach.towards ISO certification of the policy for Safety, 14001 and ISO 9001 î ISO 14001:2015: Environmental management systems to reduce the environmental footprint;Health and Environment (SHE). Managing î ISO 9001: Quality management standard focusing on continual improvement, including energy efficiency and process Directors are responsible for implementing this optimisation. policy.The share of ISO-certified factories is disclosed in the E1-3 indicator on p. 70.Research and The purpose of our R&D policy is to ensure that technological competitiveness is combined with reaching sustainability targets, All R&D activities performed in Group Management is promoting the R&D Development (R&D) especially those related to decarbonisation (e.g. proprietary electric melting technology, new binder technologies).ROCKWOOL Group as well as local R&D policy.policyactivities (which must be reported to the Group).Controllers manual The investment governance manual classifies investments into five categories: growth, efficiency, safety and health, The manual covers investments above Group Management, with oversight by the CFO, administration and IT, and environmental, which includes reducing environmental footprints (e.g. GHG emissions reduction 5,000 EUR recognised as property, plant holds accountability Controllers manual.and improving product chemical composition). Business units must indicate the impact a given investment has on Group and equipment.sustainability goals and specify which goal it addresses. The manual aims to structure, track, and monitor investments, including climate change mitigation and adaptation at Group level. Depending on the investment amount, proposals are approved by Group Management or the Board of Directors. New build, rental We have set a target to reduce energy consumption in own office buildings to showcase opportunities linked to energy savings For construction of new office buildings Group Management promotes the policy. and renovation of solutions. Measures taken can for example include renewable energy generation from solar panels and wind, on or adjacent to and new rentals, passive measures must Managing Directors and/or persons responsible ROCKWOOL offices ROCKWOOL's properties. All new builds and major renovations must comply with the most relevant sustainable building rating be used to achieve the highest possible for new build, rental or renovation of offices are policy scheme in the country, aiming for the highest rating.level of energy performance (nearly zero responsible for implementing the policy.energy buildings).In line with the Danish Committee on Corporate Governance, Policy for Safety, Health and Environment (SHE), in section S1, also ROCKWOOLâs Code of Conduct addresses sustainability, including covers environmental aspects like air emissions.climate change. For details, see section G1 on business conduct. Our [E1-3] Actions and resources in relation to climate change policiesIn 2024, ROCKWOOL's actions related to climate change mitigation and adaptation were focused around the following four themes: 1. Compliance with ISO 9001 and ISO 14001 standardsIn addition to internal audits, an external annual verification process is carried out in factories that are certified against the ISO standards; this is in addition to Group Mandatory Minimum Requirements, which set additional standards for environmental and health and safety performance.In 2024, 76 percent of all factories operated in compliance with externally verified ISO 9001 Quality Management and 74 percent in compliance with ISO 14001 Environmental Management Systems (EMS). 2. Energy Attribute Certificates (EACs)ROCKWOOL has purchased Energy Attribute Certificates for the electricity consumption for all factories in Europe for 2024.ROCKWOOL has purchased Energy Attribute Certificates for one of the factories in China for 2023 and 2024. As a result, 2023 renewable energy, GHG emissions and CO Scope 2 numbers have been revised 2accordingly.3. ElectrificationIn 2024, we have successfully converted to electric melting technology in the factory in Switzerland, fuelled by green energy. Moreover, ROCKWOOL has continued efforts to electrify production lines in Romania, the Netherlands, and France. In Romania, we are adding a new electric production line. It is expected that CO2emissions intensity of this factory will be reduced by 40-50 percent in comparison to actual intensity levels, and that effects will be visible in 2029. In the Netherlands and France, it is expected that CO emissions 2(in absolute value) from the electrification of existing production lines in the two stone wool factories will be reduced by more than 50 percent in comparison to actual emissions, and effects will be visible starting 2027.4. Research and developmentInstallation and start-up of a proprietary stone wool electric melter was completed at ROCKWOOL's factory in Switzerland, powered by Swiss hydro power. In addition, we tested innovations to implement new binders with lower emissions. In 2024, we spent 67 MEUR on research and development and secured 224 patents. Metrics and accounting policies[E1-4] Targets related to climate change mitigation and adaptationTargets related to climate change mitigation: î By 2030, reduce by 20 percent CO emissions in Scope 1 and 2 per 2tonne of stone wool produced (2015 as baseline); î By 2034, reduce by 38 percent absolute GHG emissions (COe) in 2Scope 1 and 2 (2019 as baseline); 2 î By 2030, reduce energy consumption (kWh/m) in own office buildings by 75 percent (2015 as baseline).Carbon dioxide (CO), a greenhouse gas, accounts for more than 80 2percent of total GHG emissions. ROCKWOOL's first decarbonisation goal was set in 2016, focusing on reducing CO emissions per tonne 2of stone wool produced. As of end 2024, we have achieved a 23 percent reduction compared to the baseline. Due to ROCKWOOL's decarbonisation efforts, we have therefore achieved the 2030 goal already in 2024. In 2020, ROCKWOOL joined the Science Based Targets initiative (SBTi) and committed to a verified and approved plan aligned with keeping global warming well below 2°C. This plan aims to reduce total GHG emissions in Scope 1 and 2 from stone wool factories by 38 percent by 2034, using 2019 as the baseline. In 2024, absolute Scope 1 and 2 emissions amounted to 1,711 kt COe, equivalent to an 18 percent 2reduction compared to the 2019 baseline (2,082 kt). This is mainly due to continued decarbonisation efforts in 2024. Additionally, we have set a target to reduce energy consumption in own office buildings to showcase opportunities linked to energy savings solutions. At the end of 2024, the progress towards the 2030 goal was stable at 39 percent. Effects of ongoing renovations should be visible in 2025.[E1-5] Energy consumption and mix 20241 Fuel consumption from coal and coal products (MWh) 1,875,2742 Fuel consumption from crude oil and petroleum products (MWh) 5,1073 Fuel consumption from natural gas (MWh) 1,404,6184 Fuel consumption from other fossil sources (MWh) 412,2875 Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) 375,8776 Total fossil energy consumption (MWh) (the sum of line 1-5) 4,073,163Share of fossil sources in total energy consumption (%) 807 Consumption from nuclear sources (MWh) 42,940Share of consumption from nuclear sources in total energy consumption (%) 18 Fuel consumption from renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable 171,814hydrogen) (MWh)9 Consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources (MWh) 794,12410 Consumption of self-generated non-fuel renewable energy (MWh) 2,94511 Total renewable energy consumption (MWh) (the sum of line 8-10) 968,883Share of renewable sources in total energy consumption (%) 19Total energy consumption (MWh) (the sum of lines 6, 7 and 11) 5,084,986ROCKWOOL operates in high climate impact sector and thus disclose energy intensity per net revenue:2024Energy intensity per net revenue1,319Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors (MWh/1 MEUR)ROCKWOOL operates in high climate impact sector and thus disclose GHG intensity per net revenue:GHG intensity per net revenue2024Total GHG emissions (location-based) per net revenue726(tCOe/1 MEUR)2Total GHG emissions (market-based) per net revenue671(tCOe/1 MEUR)2Accounting policiesEnergy consumption is calculated as total energy consumed. Reported energy consumptions per source are based on measured weight or volumes, or by invoices. When net calorific values conversions are needed, the source depends on country-specific regulatory requirements and can be based on laboratory analysis, information from the suppliers, or national databases. If these are not available, a Group average is used. Data for December is estimated based on the actual values from previous 12 months. Energy consumption from fossil fuels is calculated as the total energy consumed from coal and coal products, secondary combustion materials, natural gas, propane, LNG and oils. Consumption of nuclear energy comes from the electricity grid. We are not able to specify the share of nuclear energy per location for all factories. ROCKWOOL therefore applies the assumption that 10 percent of the electricity purchase by factories not purchasing Energy Attribute Certificates, is generated by nuclear energy. This is the approximate share of electricity produced by nuclear energy published in the International Energy Agency report 'Nuclear Power and Secure Energy Transitions', revised version from 2022. Total energy consumption from renewable fuels covers consumption of biogas, certified by Energy Attribute Certificates. ROCKWOOL does not consume other non-electricity renewable fuels. Renewable energy consumption from electricity is the total consumption of electricity that is certified by purchasing of Energy Attribute Certificates plus self-generated electricity from solar panels. Non-renewable energy is energy that cannot be identified as being derived from renewable sources. ROCKWOOL has solar panels installed in a small number of factories. These solar panels constitute the full contribution from self-generated energy to our total energy consumption and is therefore minor. Energy consumption from coal covers coal and coal products (including coke). Energy consumption from oil and petroleum products covers from diesel and oil. ROCKWOOL does not consume crude oils. Energy consumption from natural gas covers natural gas not certified by Energy Attribute Certificates. Energy consumption from other fossil fuel sources covers secondary combustion materials, LNG, propane, and other minor sources. Energy consumption of purchased or acquired electricity, heat, steam, or cooling from fossil sources is assumed to be electricity purchased that is not covered by Energy Attribute Certificates minus the estimated energy coming from nuclear sources.ROCKWOOL does not produce energy from non-renewable sources.High climate impact sectors are sectors with significant contributions to GHG emissions and environmental impact and that play a key role in the transition to a low-carbon economy. ROCKWOOL is classified in EU NACE classification of economic activities as C 23.99 âManufacture of non-metallic mineral productsâ and thus is labelled as high climate impact sector according to Delegated Regulation (EU) 2022/1288, also known as supplemental regulation of the EU Low Carbon Benchmarks Regulation (EU BMR). ROCKWOOL's whole scope falls under the high impact sector. Energy intensity per net revenue was calculated by dividing total energy consumption per net revenue. This quotient was multiplied by 1,000,000 to reflect energy consumption per 1 MEUR revenue. Revenue is the total revenue as stated in the Consolidated financial statements.GHG intensity (location-based) per net revenue was calculated by dividing total GHG emissions (location-based) per net revenue. This quotient was multiplied by 1,000,000 to reflect GHG emissions (location-based) per 1 MEUR revenue.GHG intensity (market-based) per net revenue was calculated by dividing total GHG emissions (market-based) per net revenue. This quotient was multiplied by 1,000,000 to reflect GHG emissions (market-based) per 1 MEUR revenue.[E1-6] Gross Scope 1, 2, 3 and total GHG emissionsRetrospective Milestones and target years2019 2024 2034 2050 Annual % target Base year / Base yearScope 1 GHG emissionsGross Scope 1 GHG emissions (t COe) 1,752,062 1,601,801 1,086,278 175,206 46%2Percentage of Scope 1 from regulated emission trading schemes (%) 60Scope 2 GHG emissionsGross location-based Scope 2 GHG emissions (t COe) 321,9552Gross market-based Scope 2 GHG emissions (t COe) 330,031 109,209 204,619 33,003 46%2Significant Scope 3 GHG emissionsGross Scope 3 (t COe) 875,6482Cat. 1 Purchased goods and services (t COe) 449,5372Cat. 2 Capital goods (t COe) 74,4782Cat. 3 Fuel and energy related activities that are not incl. in Scope 1 and 2 240,072(t COe)2Cat. 4 Upstream transportation and distribution (tCOe) 79,9242Other (tCOe) 31,636 2Total GHG emissionsTotal GHG emissions location-based (t COe) 2,799,404 2Total GHG emissions market-based (t COe) 2,586,658 2ROCKWOOL set its decarbonisation targets for GHG emissions in Scope 1 and 2 before the EU CSRD, thus we disclose progress towards 2034 targets. 2024 Scope 3 was verified by external assurance for the first time. A refined decarbonisation plan will be provided in next reporting cycle. Due to acquiring EACs across Europe and for the factory in China, GHG emission in Scope 2 have been reduced by 41 percent in comparison to 2023. In market-based approach, in five years, we have realised 46 percent of the 38 percent reduction target set for 2034.[E1-8] Internal carbon pricingTypes of internal Internal carbon pricecarbon prices Prices applied 125 EUR/t COe2(EUR/t COe) 2Application To promote decarbonisation, an internal carbon price description(ICP) of 125 EUR/t COe is applied to the assumptions 2and economic impacts for all investments above 1 MEUR. The application of ICP for investments below 1 MEUR is optional. The ICP is reviewed every year at the same time as the transitional risk linked with EU ETS, UK, Swiss and Canadian systems is reassessed. The forecast used in this reassessment is based on the 10-year strategy scenario and is presented to the Board of Directors. In 2024, 54 percent of our GHG emissions in Scope 1 and 2 were covered by ETS. GHG emissions in Scope 3 are not covered by ETS. In 2024, Category 4 in Scope 3 accounted for 3 percent of market-based GHG emissions, ROCKWOOL did not prioritise to ETS2. In 2024, we started an initiative with business partners from the logistics sector to assess the impact of ETS2. Accounting policiesDefinition of gross GHG emission Scopes 1, 2 and 3:GHG emissions in Scope 1 are direct GHG emissions from sources owned or controlled by ROCKWOOL. Scope 1 includes all direct emissions from fuels as well as emissions from raw materials. GHG emissions in Scope 1 are calculated based on consumption, net calorific values, carbon content or emission factors determined by meter readings, invoices, laboratory analysis results or national databases depending on country-specific regulatory requirements.Scope 1 GHG emissions include calculated CO and NO emissions 22and estimated emissions for the remaining four GHGs which contribute approx. 1.5 percent of total calculated Scope 1 and 2. CO emissions 2are calculated by applying CO emission factors to each Scope 1 2energy source. NO emissions are derived from an internally developed 2model based on NO measurements under varying operating 2conditions. The global warming potential used (GWP) are from the IPPC 6th Assessment Report. ROCKWOOL does not produce biogenic emissions.GHG emissions in Scope 2 are emissions from sources owned or controlled by another company. GHG emissions in Scope 2 are indirect emissions from generation of purchased or acquired electricity, steam, heat, or cooling consumed by ROCKWOOL (downstream). Scope 2 emissions are calculated as the sum of electricity consumption (kWh) times the electricity emission factor (kg/kWh) for each facility. The emission factors can be location- or market-based. Location-based emissions are published by the IEA (International Energy Agency) for all factories. Market-based emission factors can be supplier specific (provided by the supplier or from purchase of EAC). If we do not have supplier specific information, residual mix is used. If none of the above is available, location-based emission factors are used. GHG emissions in Scope 3 are calculated by applying both spend based and average data methodology. Due to feasibility, the spend based methodology is mainly applied. The spend based approach is using internal financial data that can be reconciled to the consolidated financial statements. Non-applicable accounts (e.g. revenue and technical accounts) are excluded from the Scope 3 inventory. Each applicable account is allocated to a Scope 3 category and assigned an emission factor, sourced from the EXIOBASE database. Emissions factors from EXIOBASE are adjusted for inflation. A five percent threshold of total Scope 3 GHG emissions is applied to determine whether a Scope 3 category is material. As a result, categories 5, 6, 7, 8 and 9 are not material. Categories 10, 11, 13, 14 and 15 were excluded as non-applicable. ROCKWOOL products are not further processed and do not use energy in its operating phase. ROCKWOOL does not have any downstream leased assets, franchises nor provide financial services to external partners. No emissions are calculated using primary data obtained from suppliers or other value chain partners. Activity based calculations were used only for categories 7 and 9. Scope 3 was first externally verified in 2024.Scope 1, 2, and 3 GHG emissions are disclosed in a consolidated Group format, not distinguishing emissions from stone wool factories from those of non-stone wool entities. Baseline metric was calculated using same principles.GHG intensity is calculated by dividing Scope 1, Scope 2, and Scope 3 GHG emissions (measured in metric tonnes of COe) by net revenue 2per million EUR. Emissions data is consolidated across all applicable operations in accordance with GHG Protocol standards. Net revenue is derived from the Groupâs consolidated financial statements. For assessing transitional risk linked to increasing carbon costs in 2024 ROCKWOOL applied a shadow carbon price of 90 EUR/t CO, rising to 2150 EUR/t CO by 2030. This shadow carbon price is different from the 2ICP applied for investments above 1 MEUR. Our estimates are based on the following sources: Bloomberg NEFâs analysis from October 2023, Enerdataâs analysis report of the ETS market from November 2023, Vertis Environmental Finance report on ETS performance from July 2023 and EURACTIV publication stating that analysis estimated that carbon prices could rise âabove 400 EUR by 2040â if the 90 percent GHG emissions target is implemented. Critical estimates and judgementsDue to time constraints, energy consumption used in Scope 2 was estimated for December.The spend-based approach for Scope 3 is chosen to ensure compliance with GHG Protocol accounting and reporting principles. However, the spend-based emission factors from EXIOBASE are non-supplier-specific, meaning that they are estimates on value chain activities. Furthermore, EXIOBASE emission factors can cover a broader range of activities than ROCKWOOLâs accounts. The EXIOBASE emission factors are from 2020 and have been corrected for inflation using 2021-2023 data, as 2024 inflation data was not available at the time of calculation. E2 PollutionROCKWOOL's production process requires the use of chemicals, which generates air emissions other than GHG. All factories operate within regulations set by the country in which they are located to safeguard own workforce, local communities and the environment. With increasingly demanding European and international criteria on air emissions and substances of concern, risks linked to pollution-related topics were assessed material. Pollution of airBesides carbon dioxide (CO) and Nitrous Oxide (NO) treated in section 22E1 on climate change, air emissions from stone wool production sites are mainly sulphur dioxide (SO), nitrogen oxides (NO), ammonia XX(NH), carbon monoxide (CO), particulate matter (PM), phenol and 310formaldehyde.All factories have permits to operate issued by the relevant local, regional or national authorities, which include air emissions measurements and levels on emissions allowed.Material impacts, risks and/or Classification Time horizon Location in Description and interaction with business model and /or strategyopportunitiesvalue chainAir emissions other than GHG Negative Short-term OO The production process entails melting raw materials at temperatures impact and about 1,500°C and curing wool fibres at around 450°C. This process risksgenerates pollution of air other than GHG emissions, such as NO, xSO, CO, PM, and other substances. With increasingly demanding 210EU and international regulations and local community awareness, the risks linked to air emissions are significantMitigation: Abatement installations and R&D on new binder technologiesUse of chemicals in binders Negative Medium-term OO ROCKWOOL's stone wool production technology uses substances impact and of concern as binder ingredients. These chemicals could expose risks ROCKWOOL to risks linked with increasingly demanding environmental standards Mitigation: R&D focused on moving towards new binders[E2-1] Policies related to pollution of airROCKWOOL policy for Safety, Health and Environment (SHE), described in section S1 own workforce, covers our general approach to such topics as air emissions.[E2-2] Actions and resources related to pollution of airManaging Directors with operational responsibility for stone wool factories are also responsible for topics related to air emissions, including monitoring, performance reviews, and maintaining and investing in abatement equipment. Managing Directors responsible for different geographical area cooperate with the member of Group Management responsible for Group Operations and Technology. The latter is supported by Group Safety, Health and Environment (Group SHE), and they work closely with factory managers, Technical Directors, and/or environmental managers.In 2024, ROCKWOOL's action relating to pollution of air focused on investments with the objective to reduce and/or avoid air emissions.ROCKWOOL's stone wool factories are incentivised to propose investments for equipment that controls and abates air emissions. In 2024, taxonomy-aligned CAPEX amounted to 262 MEUR, which also supports the transition plan.1 https://echa.europa.eu/substance-information/-/substanceinfo/100.117.636Group policy Description Scope AccountabilityGroup SHE Mandatory The MMR describes what kind of abatement equipment Applies to all stone wool The Group function, Group SHE, Minimum Requirement is considered minimum requirement for all ROCKWOOL factories.is responsible for promoting and (MMR) for Environmental factories, which is to be installed irrespective of national updating the MMR. Regional Abatement Equipmentlegislative requirements.Managing Directors and Technical Directors are responsible for Additionally, this MMR mandates stone wool factories to implementing of this MMR.upgrade all existing production lines with above mentioned abatement equipment at the same standard as new lines.Group SHE Mandatory The MMR is aligned with principles of the JRC Reference Applies to all stone wool The Group function, Group SHE, Minimum Requirement Report on Monitoring if Emissions to Air and Water from factories.is responsible for promoting and (MMR) for Periodic air IED Installations (EUR 29261 EN, 2018) with the objective to updating the MMR. Regional emission monitoringstandardise monitoring of air emissions from all stone wool Managing Directors and Technical factories. When requirements of the MMR are stricter than Directors are responsible for the permit conditions, the MMR requirements prevail.implementing of this MMR.[E2-5] Substances of concern During the production of stone wool, a chemical or bio-based binder along with either a hydrophobic oil or a wetting agent are added depending on the application of the final product. It is assessed that approx. 60 percent of the binder consists of substances of concern. A final heat treatment cures the binder, giving the stone wool dimensional stability. Due to this heat treatment, part of the binder, and thereby part of the procured substances of concern turn into air emissions.The final insulation product consists, on average, of at least 95 percent insulation fibres and the remaining maximum five percent is binder and oil. The insulation fibres are inorganic whereas the binder and oil can be either organic or inorganic chemicals. Insulation fibres thus constitute the main part of the product that is put on the market. Stone wool is one of the most tested and studied building materials in the world, and ROCKWOOL's insulation fibres are registered under the EUâs framework for chemicals, REACH. Our stone wool insulation does not have any classifications for adverse impacts on human health or the 1environment cf. Substance Information - ECHA.The final products that are put on the market have, as described, undergone a high-temperature treatment. After this transformation process, substances of concern in the final products have changed, resulting in low levels in free form in the final product. Substances of very high concern were assessed as non-material in the double materiality assessment. Compliance with the Do No Significant Harm technical criteria in the EU Taxonomy, activity 3.5. Manufacturing energy efficiency equipment for buildings (Climate change mitigation), is disclosed in section EU Taxonomy in this report on p. 95.[E2-2] Actions and resources related to pollution â substances of concernGroup Management is responsible for topics related to substances of concern. In these matters, Group Management is supported by the following Group functions: Group SHE; Sourcing and Procurement; Research and Development; Marketing, Communications, and Public Affairs, which includes Regulatory Affairs.In 2024, 20 percent of R&D costs were allocated for research and development on new binder technologies or on factory emission reduction initiatives. Developing a new binder is key to limiting the amount of substances of concern in the products. It is an initiative that extends beyond a single year.[E2-1] Policies related to substances of concern Group policy Description Scope AccountabilityREACH policy This policy ensure compliance with the European REACH The REACH policy covers operations Group Management is regulation to improve the protection of human health and in Europe. ROCKWOOL operations promoting Group REACH the environment from the risks that can be posed especially outside Europe are compliant with Policy. Group Sourcing by Substances of Very High Concern (SVHC). We require local, country-level requirements and Procurement as well suppliers delivering to European ROCKWOOL entities to and restrictions. as regional Managing declare any SVHC in the products and chemicals supplied.Directors are responsible for Roles and responsibilities for ROCKWOOL entities regarding implementation of this policy. processes, communication and documentation as well as REACH compliance are outlined in the REACH Compliance Manual for Process and Activities that supports this policy.Group SHE This MMR is aligned with the UN Agreement concerning the Applies to all ROCKWOOL Group The Group function, Mandatory International Carriage of Dangerous Goods by Road, UN functions, all entities and to all Group Safety, Health and Minimum Globally Harmonized System (GHS) and with EU REACH, in chemicals, including chemical Environment, is responsible Requirement (MMR) order to:elements and mixtures of for promoting and updating for Chemical Risk î Set principles for the selection and risk assessment compounds, whether it is used for the MMR. Regional Managing Managementof chemicals already in-use and new chemicals with production, maintenance, cleaning Directors and Technical minimum negative impact on health, environment and fire or in laboratories.Directors are responsible for hazard;implementing of this MMR. î Ensure chemicals are continuously assessed for substitution with lower risks and/or alternatives; î Ensure that all chemicals are handled, stored and disposed of safely.Metrics and accounting policies[E2-3] Targets related to pollutionAir emissions:Currently, we do not have specific targets. In connection with our ambition to reduce the intensity of air emissions, we track and monitor the effectiveness of actions, including internal reporting twice yearly at Group level and disclosing annual results via the Annual Report. Substances of concern:Currently, we do not have specific targets for substances of concern.Wherever possible and without lowering our products' technical performance, our ambition is to: 1. Maintain and/or expand the level of insulation products that meet the EU Taxonomy pollution-related Do-No-Significant-Harm criteria. 2. Develop bio-based binders and expand demanding third party certification such as Cradle-to-Cradle, especially for indoor products (see section S4 Consumers and end-users, ESRS indicator S4-4 to read about our products that are Cradle-to-Cradle certified).We are tracking the effectiveness of actions related to chemicals by monitoring and disclosing, on annual basis, mass units of procured substances of concern.[E2-4] Pollution of air Emitted pollutants*(in tonnes)2024Nitrogen oxides (NOx) 713Sulphur dioxide (SO) 4,1292Carbon monoxide (CO) -Ammonia (NH) 2,2393Particulate matter (PM) 71910Accounting policiesAll non-GHG air emissions are calculated as total emissions in tonnes per component. Reported emissions comply with the EU Industrial Emissions Directive (IED), the EU BREF for glass wool (covering mineral wool production facilities), and PRTR Directive requirements. Emissions data are derived from analytical measurements aligned with permit requirements and operational conditions at each factory.Emission data carry inherent uncertainties due to reliance on nationally prescribed methods and variability in sample representativeness, flow measurements, and analytical methods. We measure 95 percent of data, with the remaining five percent being based on estimates. Of the 95 percent measured data, 20 percent is based on quantification of emissions data, which is conducted by independent certified laboratories, and deemed representative for the year per permit conditions. The remaining 80 percent of measurements are not further validated by external parties.ROCKWOOL has not disclosed the changes in air emissions over time, as the methodology was adjusted to align with CSRD requirements.[E2-5] Substances of concernTo manufacture non-combustible fire-safe insulation and reduce energy demand in both buildings and industry, we procured 127,668 tonnes of chemicals classified as substances of concern in 2024. We estimate that we put 53,722 tonnes of substances of concern on the market.Accounting policiesAccording to the double materiality assessment, the material topic assessed in scope of substances of concern was the use of chemicals for the binder. Plastic (e.g. PE foils use for packaging) and waste are not reported as substances of concern and are disclosed in section E5 Resource use and circular economy. The only substances of concern that ROCKWOOL put on the market are part of our binders which combine and hold the product together. Binders contain a number of different substances, some of them are categorised as substances of concern. The amount of substances of concern put on market is assessed based on actual production volume of line wool production and is an estimate of two to six percent of cured binder, that remains in the final products. Critical estimates and judgementsThe amount of substances of concern procured and put on market is based on Managementâs estimate and assessment of internal experts. The estimations are subject to high estimation uncertainty. For purchase and put on market binder, we have estimated that substances of concern account for around 60 percent. This level is assumed to be representative for the concentration of substances of concern for all binder purchases and takes inspiration from the ECHA (European chemicals agency). Based on information from limited sampling for our products as well as internal experts, it is assessed that on average two to six percent binder is left in the stone wool products after the production process, depending on the type of product. Heavy density products include more binder than lighter products.* Emitted pollutants per factory above thresholds set by the European Pollutant Release and Transfer Register âE-PRTR RegulationâE3 Water and marine resourcesStone wool production requires water, mainly for cooling the melting furnaces. To mitigate the risk of limited access to water, we have set a Group target for all stone wool factories to reduce the water use per tonne of stone wool produced.Impact, risk and opportunitiesSeven of ROCKWOOL's stone wool factories are located in water stressed areas. As continuous access to water is important for the production processes, we pursue initiatives at to improve water efficiency, including monitoring and managing water use. This is important as water use directly impacts our products' water footprint, which is among multiple factors customers take into account.Water withdrawalWater is used in stone wool production to cool down the melting furnace. Limited access to this natural resource, especially in water stressed areas, could lead to operational risks by restricting production capacity. This topic is relevant for seven of ROCKWOOL's stone wool factories. Based on earlier assessments, pollution to water was assessed as not material for ROCKWOOL.Material impacts, risks and/or Classification Time horizon Location in Description and interaction with business model and /or strategyopportunitiesvalue chainWater use Negative Medium-term OO Water is used for stone wool production, mainly to cool the melting impact and furnace. Access to water in water stressed areas could lead to an risksoperational risk by limiting production capacity and negatively impact the environment. This is relevant for the seven factories located in water stressed areasMitigation: Group target to reduce water use per tonne of stone wool produced[E3-1] Policies related to water and marine resources Group policy Description Scope AccountabilitySafety, Health and Environment The SHE policy and manual set out responsibility, provides definitions and All stone wool factories, including those Group Management promotes the policy for SHE. policy and manual (SHE) standards and guides all entities on how to manage and mitigate environmental located in water stressed areas.impacts, including those related to water withdrawal. The SHE policy and the internal manual are aligned with the ISO 14001:2015 standards. They set principles for the Environmental Management System, covering water-related topics and are supported by Group SHE Mandatory Minimum Requirements âSoil, Surface Water and Groundwater Protectionâ and by Group SHE manual for environmental reporting.Group SHE Mandatory Minimum The purpose of this MMR is to prevent pollution of water by:All entities, including stone wool The Group function, Group SHE, is responsible for promoting and Requirements (MMR) for Soil, î Avoiding the risk of contamination of soil, surface water and groundwater factories and those located in water updating the MMR. Regional Managing Directors and Technical Directors Surface Water and Groundwater in connection with operations related to raw materials, binder, oil and other stressed areas as well as civil works and are responsible for implementing this MMR.Protectionsubstances; contractors. î Ensuring that protection of soil, surface water and groundwater is taken into account in design, installation and civil works, so that the risk of contamination is eliminated or reduced.Group SHE Manual for The purpose of this manual is to ensure that environmental data, including water All ROCKWOOL stone wool factories, The Group function, Group SHE, is responsible for promoting and environmental reportingwithdrawal, is reported in a consistent, transparent and timely manner across the including those located in water updating the manual. Regional Managing Directors and Technical Directors Group. All factories report the water withdrawal per source, including:stressed areas.are responsible for implementing this manual. î groundwater (water beneath the soil, including pumped from onsite well); î surface water (water withdrawn from the surface of Earth e.g. river, lake, wetland); î public supply (water from municipal or private water supply); î external source (wastewater from another organisation); î and rainwater (precipitation collected directly and stored by the factory).Starting 2024, factories also report water recycled, water reused, and water stored.[E3-2] Actions and resources related to water and marine resources In 2024, actions were focused around two initiatives leading to increased water efficiency: 1. Installation of water reduction technology in factoriesThe installed solution reduces water consumption in the melting process by using an organic liquid to generate electricity. In addition, the technology returns cooled water to the cooling process, reducing raw water demand by up to 80 percent. After a successful pilot project in Spain, the technology has been installed in ROCKWOOL factories in the UK and in Germany. The full impact of the new technology is expected in 2025. 2. Closed cooling systemWe installed a closed cooling system in the new electrical melter in the stone wool factory in Switzerland. Results are expected in 2025.In 2024, investments related to water use reduction was 3 MEUR.Metrics and accounting policies[E3-3] Targets related to water and marine resources We have set a voluntary target to reduce water use per tonne of stone wool produced by 20 percent from 2015 to 2030. To advance this target, each stone wool factory, including those located in water stress areas, has an annual target on water withdrawal (excluding rainwater) per tonne of stone wool produced. Performance towards the targets is tracked and analysed on a quarterly basis. As of 2024, we achieved a 17 percent reduction in water use per tonne of stone wool produced compared to the 2015 baseline. The performance has been stable. Stone wool factories in water stressed areasROCKWOOL does not have specific water use targets for stone wool factories located in water stressed areas. Nevertheless, every five years we reassess which sites are located in areas associated with water risk. Seven factories are determined to be located in areas of high or extreme high water stress. These are: Caparroso (Spain), Dahej (India), Flechtingen (Germany), PloieÅti (Romania), Roermond (the Netherlands), Troitsk (Russia) and Zheleznodorozny (Russia). However, in all cases, the factories' water usage is estimated to be immaterial, using less than one per mille of available water of the regional fresh 3water basin resources in m. We continue to prioritise implementing water efficiency improvements at these factories. [E3-4] Water consumption202431 Total water consumption in m in areas at water risk, 661,908including areas of high-water stress32 Total water recycled and reused in m630,45033 Total water stored and changes in storage in m17,2254 Water intensity 7223(Total water consumption in m/MEUR revenue)3Total water consumption in m2,783,259Accounting policiesWater consumption is calculated as the total water withdrawn from sources such as groundwater, surface water, public supply, or other external sources, minus the water discharged and minus the water stored. Withdrawals are primarily measured or based on invoices, while rainwater is mostly estimated using rainfall data, collection area, or flow measurements. Approx. 50 percent of discharged water is metered, with the remainder estimated based on best available methods. For smaller offices, water consumption is estimated based on working hours; these account for less than one percent of the water consumption.Water scarcity assessments conducted in 2017 (all stone wool factories) and 2022 (all stone wool factories excluding Russia) identified a total of seven factories in areas of high or extremely high water stress. Both assessments were based on the World Resources Institute Aqueduct (WRI) tool. Water consumption in water stressed areas is calculated as the sum of the total water consumption of mineral wool factories located in these areas. ROCKWOOL reuses and recycles water in the stone wool factories. Water recycling is primarily relevant in binder dilution. Water recycled and reused is calculated based on binder dilution rates and operation time of the melters or based on actual measurements. It is assumed there is no water recycling in offices and other production facilities.Water stored is calculated as the sum of the full capacity of the water storage tanks at stone wool factories. As part of the normal operations, the tanks are kept full with no changes to storage. Offices and other production facilities do not have water storage, other than fire water tanks.E5 Resource use and circular economyROCKWOOL supports circularity in the construction sector by among other ways offering durable products made of recyclable stone wool. [SMB-3] Material impacts, risks and opportunitiesWe use stone to make products, primarily volcanic varieties including basalt and gabbro. Additionally, ROCKWOOL's technology allows for the recycling of reclaimed material from the market and secondary materials from other industries. This provides a sustainable alternative to these materials being potentially landfilled. Most ROCKWOOL products are durable and designed for disassembly, allowing them to be returned to the factories for recycling. ROCKWOOL's productsâ circular characteristics, our capacity to take back used stone wool from the market, and our aim to reduce the use of virgin materials, including in packaging, are all important elements of ROCKWOOL's business model and key considerations in meeting customer expectations. Material impacts, risks and/or Classification Time horizon Location in Description and interaction with business model and /or strategyopportunitiesvalue chainStone extraction Negative Medium- and U and OO Stone wool production uses stone, an abundant raw material, the use of impactlong-termwhich entails quarrying that can impact the environmentMitigation: application of circularity principles (recyclability and durability) and tracking effectiveness through a circularity dashboardWaste and plastics in packaging Negative Short- and D Stone wool factories generate waste and use plastic in packaging. Risks impact and medium-termlinked with increasingly demanding market standards risksMitigation: Tracking effectiveness of circularity principle through a dashboard that includes a target of reducing waste to landfill from stone wool production[E5-1] Policies related to resources use and circular economyROCKWOOL is building up capacities in sustainable sourcing by documenting existing checks and processes.Group policy Description Scope AccountabilityROCKWOOL ROCKWOOL's Position Paper on circularity sets out our ROCKWOOL Circularity Group Management promotes 1Circularity Position approach to circularity and aligns it with the three principles Position Paper covers all stone ROCKWOOL Circularity Position Paperfrom the Ellen McArthur Foundation: wool factories and refers to Paper. Regional Managing upstream, own operations and Directors and Group Operations 1. Designing out waste and pollutiondownstream part of our value and Technology, including Group We do this by designing out construction and demolition chain. Sourcing and Procurement are waste, designing for disassembly, recycling material from other responsible for implementing industries, eliminating stone wool waste at factories going to circularity principles. landfill, and ensuring material health.2. Keeping materials at their highest valueWe do this by open- and closed-loop recycling, using endlessly recyclable and durable materials, supporting product life-extensions, and by enabling reuse and repurposing.3. Restoring natural systemsWe do this by using an abundant and natural material, supporting food production of the future with Grodan, aiming at minimising the use of virgin materials, and optimising water use.® RockcycleRockcycle is ROCKWOOL's global take-back scheme currently Rockcycle is currently Group Management is responsible rolled out to 24 countries. ROCKWOOL reclaims stone wool implemented in 24 countries.for promoting and developing the from the market for recycling. Rockcycle facilitates closed-loop Rockcycle programme. Regional recycling, meaning that the waste will become new stone wool Managing Directors and Group products again.Operations and Technology are responsible for implementing the By having a circular end-of-life option in place, we exploit stone programme.wool's recyclability and ensure an alternative to landfilling. 1 https://p-cdn.rockwool.com/syssiteassets/rw-group/media/corporate-governance/2023-12-11-rockwool-on-circularity.pdf?f=20231220125008[E5-2] Actions and resources related to resource use and circular economyGroup Management is responsible for advocating, driving and promoting circularity, including development of the Rockcycle service, application of circularity principles in product design and minimisation of virgin material use. Regional Managing Directors are responsible for waste management supported by Group Safety, Health and Environment.In 2024, actions in relation to circular economy were focused around the following five different themes on circularity: 1. In 2024, we rolled out Rockcycle to Poland, Malaysia and Singapore and expanded the Rockcycle programme to 24 countries. 2. Internal capacity building We created and launched internal circularity training available for all employees and implemented a Rockcycle Resource Hub as a database for Rockcycle materials across functions and geographies.3. Started to change the plastic foil, which increases recycling potentials by 85 percent. To reduce the climate footprint, we are changing plastic foil in the Nordics which also increases the recycling potential significantly. The initiative will be rolled out to other regions in the coming years. In future, our plastic foil will be transparent with only 10 percent ink.4. Introduced new innovative equipment in one of the Danish factories, which increased the recycled material (internal and external material) more than 50 percent. This innovation helps reduce the reliance on virgin resources. 5. Advocating for more proactive policies on circularity We continuously advocate for more proactive policies to increase recycling and the recyclability of products and materials, especially towards EU and EU Member States, with efforts including: î Promoting deconstruction practices (over demolition) and the sorting of different waste streams; î Progressively introducing landfilling bans for recyclable materials as well as requirements to increase the use of recycled materials; î Integrating durability and recyclability as fundamental characteristics of construction products; î Greater definition of used stone wool as a resource (and not a waste stream); î Regulating transport of stone wool waste in the same way as other valuable resources, which in turn will ease the permitting requirements to manage and recycle the materials at our factories; î Through our membership in the European insulation Manufacturers Association, ROCKWOOL together with other mineral wool producers aligns and brings a shared position towards policy makers. In 2024, two of the main topics were i) pushing for end-of-waste criteria with the European Commission, and ii) advocating for more granular waste codes, which as a minimum focus on recyclable and non-recyclable waste;In 2024, through our membership to Corporate Leaders Group Europe, we committed to the âTaskforce for climate neutral and circular materials and productsâ, where we advocate for more proactive policies to increase recycling and the recyclability of products and materials used in the built sector;In 2024, we joined World Business Council for Sustainable Development where we share our expertise and best practices in reference to defining new standards and new frameworks.Metrics and accounting policies[E5-3] Targets related to resource use and circular economy î Reduce the amount of virgin materials used. î By 2030, offer the take-back scheme Rockcycle in minimum 30 countries. This will reduce the amount of virgin materials used. This is a voluntary improvement target to promote circularity. î By 2030, reduce landfill waste from stone wool production by 85 percent. Landfill waste amounted to 54 kt in 2024. When comparing to the baseline of 91 kt set in 2015, a decrease of 40 percent. Compared to 2023, there was a net increase in waste to landfill from stone wool production due to higher production volumes among other factors. The target covers the most significant waste streams: stone wool waste generated in the production process (e.g. cuts offs, rejected material), De-SOx waste generated by treatment plants that reduces air emissions, tap iron and other metals as waste from the melting process.Announce 2030 goal with Rockcycle® services in five countries.Increase the number of countries Germany Belgium The Netherlandswhere we offer recycling services for our products to 30 by 2030Luxembourg DenmarkTotal countries: 520302015Rockcycle® expanded to three new countries.Countries wherePolandMalaysia®we offer RockcycleSingaporereclaimed material 2024service1Total countries: 24® services Rockcycle® expanded Expand Rockcycleto three new countries.to four additional countries.IndiaChinaCanadaSwedenSloveniaNorwayUSA201820231Total countries: 21Total countries: 9Rockcycle® offered in one additional Rockcycle® expanded country (Swiss acquisition) to two new countries.and extended in another (France).RomaniaFinlandFranceSwitzerland20222019Total countries: 19Total countries: 1120202021Rockcycle® expanded to three new countries.Rockcycle® offered in three additional countries.CroatiaRussia SpainItalyAustriaUKTotal countries: 14Total countries: 17We met our intermediate 2022 goal one year ahead of schedule1 Excluding Russia[E5-4] Resources inflowsThe Circularity Dashboard supports the overarching target to reduce the use of virgin materials and helps us track effectiveness of our policies dedicated to circularity.Material inflows in 2024 by weight in stone wool production: Tonnes % of the total material useTotal weight of products and materials used 3,064,594 100%The weight of reused or recycled 627,336 21%componentsRates of recyclable content in products î The rate of recyclable content in ROCKWOOL products is 66 percent.Rates of recyclable and recycled content in PE foils in packaging î The rate of recyclable content in PE foils in packaging is 93 percent. î The rate of recycled content in PE foils used in packaging is three percent.OUR CIRCULARITY DASHBOARDThe total weight of Rate of reused or recycled products and materials components in total used was 3,064,594 weight of products tonnes (100%)and materials used: 20.5%Rate of recyclable content in products: 65.5% Rate of recyclable content in PE foils in packaging: 93.2%This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International LicenseAccounting policiesThe weight of virgin materials and non-virgin resources (materials, water and energy), excl. associated process materials, used are based on global production data. We capture all inflows using actual volumes combined with estimates where needed. We identified most categories with their weights and grouped the rest into an "other" category. For unweighted items, we used a conversion from cost data to estimate their weight, ensuring all items are included. Packaging: In 2024, we only include Polyethylene (PE) foils. Recycled content documentation is based on our strategic suppliers, which are the largest suppliers representing 94 percent of the annual spend for Polyethylene (PE) foils. Recycled content in packaging covers both post-consumer and post-industrial materials reported as a single value. An internal report provides PE foil data recalculated in accordance with the weight. This metric accounts for PE foils sold in local markets, aligning with the methodology for Extended Producer Responsibility (EPR) schemes.A reusable product is defined as any product that can be reused again for the same overall purpose. To estimate reuse potential, we rely on assumptions developed through a structured internal stakeholder engagement process. Currently, the data encompasses the majority of ROCKWOOL's product portfolio (91 percent) with ongoing efforts to expand coverage to 100 percent in the coming years.To guide the assumptions, we considered the following questions: Can the product be reused for the same "overall purpose"? Mounting method: is the product mechanically fixed (incl. perforated holes) or glued and does this hinder reuse? Is the product exposed to wind/weather in a way that it is not feasible to consider reuse? Is the product exposed to a mechanical load that hinders reuse? Is there an application loss, e.g. a part that needs to be cut off? For reuse to be possible, we assume the products are installed and used in the recommended way.[E5-5] Resources outflowsThe design, manufacturing process and technical features of our products are aligned with circular economy principles, such as: î âDesigning for disassemblyâ as this is a prerequisite for ensuring materials will be circulated such as for recycling or reuse. Most ROCKWOOL products are well-aligned with this principle. Insulation, cladding, and acoustic tiles, for example, are easily separated from other materials during a buildingâs renovation or demolition in that they are typically fitted without the use of glue or other means that hinder easy separation î âClosed-loop recyclingâ when we take-back material from the market via the Rockcycle programme. We typically recycle stone wool insulation material in a closed-loop, which means that we recycle the material back to its former, pre-recycled purpose. This is made possible by ROCKWOOL's proprietary technology. î âMaterial healthâ as ROCKWOOL stone wool contains no flame retardants and is one of the most tested and studied building materials in the world. ROCKWOOL stone wool is registered under the EUâs stringent legislative framework for chemicals, REACH. It does not have any classifications for adverse impacts on human health or the environment. î âReuseâ as ROCKWOOL fully supports reusing stone wool products when it is possible and feasible. By doing so, the product is kept in circulation and thus more fully capitalises on its long lifetime potential. In the ROCKWOOL production cycle, most of by-products and production waste can be reused as input material.Expected durability of our productsROCKWOOL products have no aging effect and deliver a constant performance without suffering degradation. Thus stone wool is highly durable and long-lasting. Depending on the purpose and other materials added to it, the durability can be lower. Furthermore, for some ROCKWOOL products, durability is not a relevant factor. For example, the horticultural substrates that Grodan sells are only used for a single growing season because the biological materials such as root systems integrate with the product. Thus, even though the stone wool material is durable, that characteristic is not relevant in this application. Another example is the engineered mineral fibres from Lapinus. These fibres are used globally in car brake pads owing to their ability to withstand the high heat and high friction forces generated during braking. As brake pads typically require changing within five years of use, durability in the sense of long-life is not a key reason for using fibres in this application.ROCKWOOL product ROCKWOOL product Mineral wool insulation Sources for industry averagecategory* durability in yearsdurability in years(industry average)General Building Insulation Flat Roof Insulation External Thermal Insulation 50 years 50 years As per LCA standard methodology for construction materials Composite System Sandwich Wall Panel Technical Insulation 10-25 years 10-25 years Guidehouse report âQuantifying the climate and energy benefits of ROCKWOOL products for technical insulationâ *The listed product categories represents more than 88 percent of 2024 revenue generated by stone wool products.[E5-5] Amount of waste Waste (in tonnes)Waste generated in 2024 2024A. Waste for recoveryA.1. Hazardous waste 4,997*A.1.1. Preparation for reuse 20A.1.2. Recycling 4,717A.1.3. Other recovery operations 260A.2. Non-hazardous waste 93,418A.2.1 Preparation for reuse 5,202A.2.2. Recycling 86,400A.2.3. Other recovery operations 1,816Total waste for recovery (A.1. + A.2.) 98,415B. Waste for disposalB.1. Hazardous waste 12,893B.1.1. Incineration 29B.1.2. Waste to landfill 3,769B.1.3. Other disposal operations* 9,095B.2. Non-hazardous waste 78,972B.2.1. Incineration 387B.2.2. Waste to landfill 69,759B.2.3. Other disposal operations 8,826Total waste for disposal (B.1. + B.2.) 91,865The total amount and percentage of non-recycled waste 48%Total amount of waste generated (A.1. + A.2. + B.1. + B.2) 190,280*In 2024, we had 150 kg of radioactive waste from disposal of quality measuring equipment.Accounting policiesTotal amount of waste generated represents the sum of all substances and objects discarded, excluding internally recycled materials and those classified as by-products. Waste data is primarily based on gate weightings and invoices. Where this is unavailable, estimates are based on volume and best available knowledge. Reused waste is the waste sent for reuse, referring to materials used for their original purpose.Recycled waste is the waste sent for recycling, referring to reprocessing into new, useful materials. It includes waste used to replace other materials that would otherwise have been used to fulfil a particular function.Recovered waste is the sum of waste sent to other recovery operations that are neither reuse or recycling, in alignment with the EU Waste Framework Directive.Incinerated waste is the amount of waste sent to incineration referring to the combustion/burning of waste (mass burn).Landfilled waste is the waste sent to landfill.Disposed waste is the sum of waste sent to other disposal operations including composting (the biological decomposition of organic waste) and deep well injection.Non-recycled waste is the sum of total amount of waste minus the reused waste and the recycled waste. The percentage of non-recycled waste is calculated as the amount of non-recycled waste divided by total waste.Hazardous waste is the sum of waste classified as hazardous. Waste classification as hazardous or non-hazardous adheres to national definitions. Radioactive waste is reported separately. The classification as radioactive adheres to Article 3(7) of Council Directive 2011/70/Euratom. The amounts of radioactive waste disposed is the estimated weight of the equipment containing the radioactive material and not the radioactive material itself.S1 Own workforce As an industrial family-founded company, we have established an inclusive culture with a safe, friendly and respectful environment for growth and development of more than 12,000 employees representing 88 nationalities.[SMB-2, SMB-3] Interests and views of stakeholders and material impacts, risks and/or opportunities ROCKWOOLâs success has always been built on its skilled employees and strong teams. We are fundamentally dependent on the expertise that our colleagues embody, combining business knowledge with engineering skills to create the industry leading technology, continuous innovation, and decarbonisation efforts, supported by market-specific business and commercial strategies.With a business model where human and intellectual capital is one of our key assets, we emphasise long-term employment contracts where workplace health and safety are always first priority, working conditions are attractive, and two-way dialogue with the workforce is regular feature. We are a people-focused employer that values skills and commitment. Material impacts, risks and/or Classification Time horizon Location in Description and interaction with business model and /or strategyopportunitiesvalue chainWorking conditions in production Negative Short-term OO ROCKWOOL's production technology involves working with chemicals, impact and heavy equipment and at high temperatures, which may lead to negative risksimpacts on health and safety of own workforce, including potential fatalitiesMitigation: Continued reinforcement of the health and safety management systemExposure to four salient human Negative Short- and OO Factories use contract workers to meet short-term production needs. rights risks, especially in high-risk impact and medium-termSome are employed by local agencies, and we have assessed their countriesrisksexposure to four human rights risks: working conditions, health and safety, and child and/or forced labour Mitigation: Continued reinforcement of the human rights due diligence mechanismGender bias in manufacturing Negative Short- and OO Balancing gender representation in manufacturing is challenging due impact and medium-termto working conditions, which may limit diversity. Increased regulatory risksrequirements and investment strategies by financial institutions pose a risk to gender diversityMitigation: Implementation of actions supporting the increase of female leadership in executive and middle management positionsHealth and safetyEspecially for ROCKWOOL's own factory workforce, which consists of employees and contract workers, there is a potentially high inherent impact on their health and safety. Our workforce in the stone wool factories have daily contact with high temperatures and heavy machinery as well as chemicals, waste, and raw materials. [MDR-A] Organisational and financial resources allocated for management of health and safety of own workforceThe Board of Directors monitor the strategic approach to occupational health and safety. The Board of Directors receives quarterly updates on progress and is involved in target setting and follow-up. In case of fatalities or serious accidents, the Board is informed about the reasons and how these are mitigated going forward.Group Management promotes ROCKWOOLâs strategic approach to occupational safety and health of the workforce. Group SHE organises and supports implementation of policies and compliance with defined standards that reduce the risks of incidents or/and fatalities. On the operational level, regional Managing Directors are responsible for occupational health and safety in all ROCKWOOL locations, including stone wool factories as well as sales and administrative offices. In the factories, the Managing Director is supported by a Technical Director, who implements Group standards and is responsible for the daily application of the SHE policy and manual. [S1-1] Policies related to own workforce health and safetyGroup policy Description Scope AccountabilityROCKWOOL The Safety, Health, and Environment (SHE) policy guides The SHE policy covers all Group Management leads our Safety, Health and all entities on how to prevent, mitigate, manage risks and/ROCKWOOL operations strategic approach to safety and Environment policyor negative impacts, including workplace safety risks, globally. Key affected health of our workforce. Group environmental emissions, and regulatory compliance. The stakeholder groups are own Safety, Health and Environmental policy fulfils the requirements of ISO 14001 Environmental employees, contractors and supports the implementation Management System (EMS) and ISO 45001 Occupational local communities, ensuring of policies and compliance with health and safety management system. a thorough approach defined standards. Managing and to safety, health, and Technical Directors are responsible Monitoring processes include regular audits, safety environment management for the implementation and daily performance assessments, and proactive risk management, throughout our operations.management of the SHE policy and ensuring continuous improvement in SHE performance. The manual. policy is supported by an internal Group SHE manual, which Regular reporting on SHE describes responsibilities, processes and procedures. performance is made to the CEO and The SHE policy is communicated to all employees and Board of Directors.people working directly with ROCKWOOL, including contract workers, and is available for all interested parties on the ROCKWOOL Group website.ROCKWOOL The Group manual sets Group Mandatory Minimum All of ROCKWOOL's Group Management promotes the Occupational Requirements (MMR) by which all ROCKWOOL facilities workforce â employees, manual. The manual and all MMRs are health and safety should operate. In our facilities, 45 percent are externally contractors â are covered by made in cooperation with the Global and environment certified according to ISO 45001 or 74 percent to ISO 14001, the Group health and safety SHE organisation and approved by management which contribute to improving the safety and wellbeing of management system. management.system certificationthe workforce on ROCKWOOL premises and mitigates risks arising from working with machinery, chemicals and raw materials. In 2024, investments amounting to 9 MEUR were dedicated to occupational health and safety of the factory workforce. Most of these investments relate to factories and/or production lines, machinery safety upgrades, building and surrounding improvements, fire safety improvements, dust and noise reduction and maintenance, which all have a positive impact on working conditions.Identification of actions and responses to actual and potential negative impacts in health and safety of own workforce is organised through the following channels: î Daily reporting of any observation, suggestion, or event related to health and safety is done through the RockSHE platform, which is available on PC and mobile phone to any ROCKWOOL employee; î For employees who do not have access to RockSHE, the shift leader or Trusted Person at factory level is always available; î Safety engagement: In ROCKWOOL's annual employee engagement survey âRockPulseâ, four safety related questions were included. The response rate was 85 percent in 2024. Details from the survey are provided in the ROCKWOOL House of Safety reports that are published internally each year.[S1-2] Processes for engaging with own workers and workersâ representatives about impacts One of the main ways in which we listen to employees is through the annual engagement survey RockPulse. In 2024, 85 percent of more than 12,000 employees responded and shared their views on employee satisfaction, loyalty, views of their immediate manager and senior management, cooperation among colleagues, and working conditions. Employee loyalty, satisfaction and motivation increased slightly in 2024 compared to 2023. The top three drivers for satisfaction and motivation remained the same as 2023: reputation, job content, and working conditions. Another notable score is the Groupâs total employee Net Promoter Score (eNPS), which reflects whether employees are satisfied and loyal to their workplace and the extent to which employees would recommend ROCKWOOL as a good place to work. In 2024, ROCKWOOL's eNPS score has increased by four points compared to 2023.We also engage with the workforce via workplace assessments conducted in different countries, annual meetings with employee representatives through the ROCKWOOL European Forum, meetings with representatives of trade unions throughout the year, the company whistleblower platform, and semi-annual and annual employee performance reviews. In terms of health and safety, we hold bi-annual face-to-face meetings and three to four annual, online meetings with all Safety Officers and Fire Officers. We conduct safety, health and environment audits at all factories at least every third year. It is ROCKWOOL's policy to focus on leadership, training, knowledge-sharing and awareness programmes to create a culture of continuous improvement. To engage the workforce, especially on impacts and risks linked to occupational health and safety, each Managing Director must establish a consultation and participation process with workers (e.g. via a Health and Safety Committee) so a two-way (bottom-up) communication is ensured. The implementation of this is verified in the SHE audits.[S1-3] Processes to remediate negative impacts and channels for own workers to raise concerns Through the Human Rights Policy, the SHE policy and operational manuals, we are committed to remedy any direct impacts related to material impacts, risks and opportunities. This applies especially to occupational health and safety and salient human rights risks. In practice, whenever a non-compliance event or suspicion is reported via one of the governance channels, a thorough investigation takes place. Reports on the events or suspicions are presented to the Integrity Committee and, when appropriate, to other administrative, management or supervisory bodies. Based on the outcomes from the report and on the scale of the issue, a proportionate remedy is proposed, accepted, implemented, tracked and monitored by the Integrity Committee. On a quarterly basis, the Board of Directors receives a report on this from the Integrity Committee.ROCKWOOL provides a range of grievance mechanisms and reporting channels for employees to raise concerns, report suspicions or confirmations. The most common channels used are the whistleblower platform and through the Integrity Committee. We regularly inform employees that these are available and how they can be accessed. These resources are further described in the chapter on Business Conduct (p. 119).Regarding health and safety, we document all incidents and audit findings in the RockSHE system. Here, everyone can report incidents including good catches, near misses and accidents. All reports are followed up and the outcome is shared with the person raising the report. [S1-4] Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions.In 2024, health and safety actions were focused around three themes: 1. Strategic approach î In 2024, we announced a new global framework to mitigate risks, prevent and decrease health and safety incidents known as âROCKWOOL House of Safetyâ. With this framework, we established a âVision Zeroâ method that enables us to proactively use incident data to prevent accidents. ROCKWOOL House of Safety sets a new, data-driven methodology for evaluating the level of safety and supports the enforcement of preventive improvements where needed the most. 2. External verification of ISO 45001 certification in stone wool factories î In 2024, 17 stone wool factories (45 percent of all factories) passed the external verification of this ISO standard dedicated to health and safety topics.3. Prevention: education, awareness and best practices exchange î Prevention through safety visits: As part of ROCKWOOL House of Safety, seven factories with an increased rate of incidents compared to the year before or with a serious incident, were selected for additional focus in 2024. Assessment meetings were held to take a fresh look at the safety work, discuss best practices, update SHE processes and set targets to improve safety performance. The targets are documented and followed up on in the internal RockSHE reporting system and reported to Group Management. î Group Safety Day: In April 2024, we celebrated annual global safety day for the ROCKWOOL Group. On this day, we highlighted relevant safety issues, conducted training sessions, and gave recognition to the work dedicated to raising the standards of health and safety. This year, we focused on launching the ROCKWOOL House of Safety framework through intranet stories, videos and training for safety officers. î In the event of a fatality or serious accident, a thorough investigation is carried out, and actions are distributed to all relevant sites and management levels. Action implementation is tracked and communicated to top management. î Own workforce health and safety topics are on the agenda of top management meetings, for example the Group Leadership Forum and Board of Directors meetings, and town hall meetings with employees.Next stepsWe plan to continue implementing the ROCKWOOL House of Safety framework, which was launched in April 2024. We will focus on improving safety performance at key factories by ensuring each factory has a tailored action plan. In addition, we are developing Group-wide safety tools that leverage best practices from ROCKWOOL sites and integrate data-based data-based incident insights. Lastly, we are rolling out global safety culture training, building on a pilot programme deployed in Nordic entities in 2024.Human rightsStone wool factories use contract workers to adapt to changes in the needed production capacity. Some of these workers are employed by local employment agencies. For factories located outside of Europe, local regulations may differ from EU standards. We have a high impact on ROCKWOOL's workforce and require business partners to comply with the Human Rights Policy. ROCKWOOL's objective is to address the following salient human rights risks in own workforce: working conditions, health and safety as well as counteracting any occurrence of child and/or forced labour.[S1-1] Policies related to human rightsThe ROCKWOOL Code of Conduct (see p. 118) is the foundation of ROCKWOOL's approach to human rights. The principles it embodies are applied in everyday business activities, including management of human capital and gender equity. In addition to the Code of Conduct, we have adopted the following policies to manage human rights risks in ROCKWOOL's operations: [S1-1] Policies related to human rightsGroup policy Description Scope AccountabilityROCKWOOL ROCKWOOL is committed to respect all internationally recognised human The policy covers ROCKWOOLâs Group Management is Human Rights rights as proclaimed in the International Bill of Human Rights, including the own operations as well as responsible for the Human PolicyUnited Nations Universal Declaration of Human Rights as well as the 11 suppliers and business partners. Rights Policy while Managing fundamental Conventions of the International Labour Organisation (ILO) and It covers all geographical Directors are responsible the ILO Declaration on Fundamental Principles and Rights at Work. We also regions where we operate. Key for the implementation endorse and follow the UN Guiding Principles on Business and Human Rights stakeholder groups affected by of this policy supported (UNGPs) and the OECD Guidelines for Multinational Enterprises. the policy include employees, by the Human Resources contract workers, local organisation.ROCKWOOL's policy refers to the following impacts and salient human rights communities, and supply chain risks assessed in the double materiality assessment: non-discrimination, incl. workers.when referring to gender, working conditions, safe and healthy workplace, as well as counteracting child and forced labour. It explicitly commits ROCKWOOL to have a meaningful dialogue with potentially affected groups and other relevant stakeholders to prevent or mitigate impacts as well as to provide remedy for any direct impacts we cause or contribute to. Ensuring compliance with the policy is supported through regular risk assessments, internal audits, and stakeholder engagement, allowing ROCKWOOL to address any human rights violations or concerns proactively. We regularly report on human rights issues, and the Integrity Committee plays a key role in monitoring adherence to the policy. ROCKWOOL The ROCKWOOL Human Rights Policy is supported by two manuals: The scope of these two manuals The Group Sustainability Human Rights (1) âGroup Human Rights Manual referring to Forced and Child Labourâ for is the same as the scope of Sourcing Manager and Manualsgeneral purposes and (2) âGroup Human Rights Manual - Forced and Child Group Human Rights Policy.Managing Directors are Labour - contingent workers". The latter includes check lists, provisions, primarily responsible for the guidelines and mandatory procedures when working with contract workers. implementation of the two Both manuals manage the most significant issues and set mandatory manuals.provisions regarding the employment process and adaptation of processes to prevent future adverse impacts. This includes criteria and documentation of the age of the contract worker and employment conditions such as limits of working hours per week, living wage, rest periods, annual holidays, statutory taxes and social security, minimum criteria for accommodation or housing, termination of the contract, grievance mechanism and remedy. ROCKWOOL's "Group Human Rights Manual - Forced and Child Labour - contingent workers" state zero tolerance for human trafficking and violations of human rights.[S1-4] Organisational and financial resources related to human rights:1. Human Rights CommitteeSince late 2023, ROCKWOOL has a Human Rights Committee consisting of two members of Group Management and the CHRO. The Committee meets formally four times a year and its role is to approve, implement, promote and sponsor policies, manuals, evaluate risks assessments and action plans that continuously uphold the due diligence process in relations to human rights. 2. Internal human rights experts and Human Rights Working GroupBesides having two in-house human rights subject matter experts in Group Public Affairs, an internal Human Rights Working Group was appointed in 2024. This working group meets formally at least four times a year, while maintaining regular contact on an ongoing basis. The 12 members are ROCKWOOL employees from different countries, backgrounds, experiences and Group disciplines. Their task is to draft and update Group policies and manuals and execute an inclusive dialogue with internal stakeholders on human rights-related issues. All corporate documents and plans in relation to human rights are presented to Directors of Human Resources and to Group Management for further review, acceptance and implementation. [S1-4] Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions.In 2024, in relation to human rights, actions were focused around the following three themes:1. Anchoring ROCKWOOL Human Rights Policy across the company î In 2024, we created two human rights manuals for internal use to assure proper implementation of prevention measures with reference to own workforce. The manuals address counteracting forced and child labour especially among the most vulnerable group in ROCKWOOL's workforce: contractor workers. After the internal publication of the Manual on forced and child labour, we have learned that the communication and implication can be challenging due to the diverse cultural and workplace related circumstances. We therefore launched internal training sessions for Group and Regional HR teams as well as for HR community and Business Partners on the implementation of the Manualâs provisions. We also launched an internal human rights and social impact awareness raising campaign targeted directly at stone wool factory Technical Directors, Occupational Health and Safety Managers, Factory Managers, Finance Directors, local HR teams and Public Affairs and Sustainability Directors. The campaign covers ROCKWOOL sales offices, all stone wool factories, and the Group Sourcing and Procurement team. This will last until September 2025. The goal is to anchor the Group Human Rights Policy along with internal Manuals. The campaign consists of offline and online training.2. Onboarding Group Sourcing and Procurement function on sustainability, including human rights due diligence î In 2024, the Group Sustainable Sourcing Manager and the Group Sustainability Partner were made responsible for human rights due diligence in the supply chain, focusing primarily on suppliers from high-risk countries and sectors. î ROCKWOOL continued the awareness raising process launched in 2023 regarding human rights in the supply chain. We strive for 100 percent of ROCKWOOL purchasing Category Managers and Directors to go through a dedicated training on human rights. In 2024, Category Managers and Directors went through the ROCKWOOL awareness session on human rights in the supply chain. î Supply Chain Risk Monitoring: Based on ROCKWOOL's internal Sustainability Sourcing Manual, we perform sustainability risk assessments, including human rights, and monitor suppliers from high-risk categories through a real time cloud-based sustainability risk management tool. In 2024, we monitored more than 1,000 suppliers from high-risk categories.3. Internal human rights risk assessments and internal audits î In 2024, an internal human rights risks assessment focused on non-discrimination with priority for the three following traits: gender, nationality and disability. It was carried out in order to monitor the actions taken to prevent discrimination. The criteria were that this group includes newcomers, direct and indirect employees as to involve affected stakeholders into the assessment process and evaluate the effectiveness of actions to prevent discrimination. Based on a risk assessment of entities, the factory in the Netherlands was selected for a more in-depth analysis. While the final report confirmed a general good understanding of this topic, continuous awareness raising sessions are needed. Overall, the information gathered on the HR processes and day-to-day interactions has shown that there is generally a good awareness of the phenomena of discrimination and harassment, mainly with respect to indirect employees, including the HR team. There were also cases mentioned by interviewed employees related to discrimination. These are limited to âinappropriateâ behaviours (e.g. harassment) that were witnessed in the production area and between employees. î Human rights topics were also added to regular Group internal audits in the beginning of 2024. The Group Internal Audit team executed seven audits covering five stone wool factories and two administrative and/or commercial offices. The Group Internal Audit team focused controlling processes around two social topics: (1) Own workforce working hours where compliance with local working regulations and/or ILO principles, rest periods â based on time attendance system and paid overtime â were verified. The second group of audited topics (2) referred to the salary level of ROCKWOOLâs own workforce. [S1-1] Policies related to gender equityGroup policy Description Scope AccountabilityROCKWOOL The objective of ROCKWOOL DEI policy is to foster an inclusive The DEI policy applies Group Management Diversity, Equity culture where all employees feel respected and empowered, ensure to ROCKWOOLâs own promotes the DEI policy. and Inclusion (DEI) equal opportunities for career development, and address any form employees across all global Managing Directors together policy of discrimination. This includes visible and invisible, innate and operations. The policy also with Human Resources acquired characteristics, such as age, gender, race, colour, disability, influences interactions with teams are responsible for religion, sexual orientation, political opinion, social origin, or other. partners, suppliers, and implementing this policy.Additionally, we consider the preferences and needs of employees contractors to promote with different perspectives, including those from vulnerable groups, inclusive practices across the ensuring that everyone feels valued and supported.broader value chain.Monitoring is conducted through regular employee surveys, diversity metrics, and DEI performance evaluations to ensure continuous progress.ROCKWOOL The objective of ROCKWOOL Recruitment Policy is to ensure:The policy applies to The recruitment policy and Recruitment Policy î A diverse resource pool to strengthen the organisation and future all internal and external complementing manuals talent pipeline;recruitment activities and for and/or guidelines are the î That we attract and recruit people who have the right skill sets, all levels and functions within responsibility of the CHRO potential and aspiration;the company.to secure a consistent and î Objectivity, fairness, consistency and transparency in sourcing, transparent approach to recruitment and selection of candidates;sourcing, recruitment and î Constant development of best practices within the global selection across the Group.recruitment processes to be efficient and effective, free of bias and discrimination.All countries where ROCKWOOL has operations must have a local guideline in place on the hiring of âStudentsâ based on agreed global principles. Reference is also made to the employment of relatives policy and the Diversity statement on the corporate web page.Gender equityROCKWOOL has a long-standing commitment to equal access to resources and opportunities for all employees. One of the three material sustainability topics identified in own workforce is gender equity, including gender pay gap, which forms part of the human rights discussion. As an employer, we have impact on the gender breakdown of ROCKWOOL's workforce. The way we manage human capital, through such KPIs as employee engagement, gender equity or rotation, mitigates risks such as labour unrest, degradation of employerâs reputation, limited access to talent pool or low productivity. We see diversity and inclusion as a key strength and a resource, and we have made gender equity central to ROCKWOOL's overall human rights efforts. [MDR-A] Organisational and financial resources related to gender equity1. Internal human rights experts, compliance and HR teamROCKWOOL has allocated dedicated in-house cross-functional experts in Group Public Affairs and HR teams to work on and advance gender and DEI-related topics. 2. Pay review Ensuring equal pay for the same job, regardless of gender, is fundamental to ROCKWOOL. This is achieved through well-defined and fixed salary levels across all job categories. In 2024, to maintain pay equality, we compared salary levels between men and women within comparable job grades. Going forward, comparisons will be conducted on a quarterly basis.[S1-4] Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actionsIn 2024, actions on gender equity and the gender pay gap in ROCKWOOL's own workforce were focused around two themes: 1. Empowering people through development î We support employees in developing their talents and in advancing in their careers. ROCKWOOL has a one-year programme for talents globally to prepare them for future leadership roles and an 18-month development programme targeting leaders in operations. In ROCKWOOL's talent development programmes, we pay attention to the gender distribution of participants, ensuring that female talents have access to these opportunities, allowing them to grow and rise in ROCKWOOL. In the 2024 talent programme, 17 people participated, where 41 percent were women.2. Diverse hiring î In 2024, the proportion of women among new hires for executive and middle manager positions remained stable (32 percent), compared to 2023. Metrics and accounting policies[S1-5] Targets related to health and safetyEvery year, ROCKWOOL's target is to have zero fatalities and serious incidents with a continuous focus on reducing the Lost Time Incident (LTI) rate. In 2024, we had one fatality and six more work-related incidents compared to 2023, which led to an increase of the LTI rate to 2.7 compared to 2.5 in 2023. The increased number of LTIs were concentrated at a few stone wool factories, to which special attention will be allocated in 2025.[S1-5] Targets related to human rightsTo ensure a strong management of human rights-related issues, ROCKWOOL's goals, linked to the DEI policy, are the following: î By September 2025, 100 percent of stone wool factory managers, technical directors, occupational health and safety managers and local HR teams pass the training on human rights risks and due diligence mechanism; î By March 2025, 100 percent of the HR organisation pass the training covering the Manuals on counteracting forced and/or child labour. [S1-5] Targets related gender equity î ROCKWOOL has established an ongoing annual voluntary target of 35 percent female leaders in senior and middle management positions. In 2024, ROCKWOOL made slight progress, achieving a one percentage point increase from 2023 to 28 percent, driven by more female leaders in Canada, Malaysia, the Netherlands and Poland. î ROCKWOOL has set a voluntary target of 33 percent of female shareholder-elected Board members by 2024. For the composition of the Board of Directors, please see pp. 34-36. î Currently, due to the need for data collection system refinement, we do not have a target related to gender pay gap. In 2024, the unadjusted pay ratio between genders for employees was 1.6 percent.[S1-6] Characteristics of the undertakingâs employees2024 ROCKWOOL employees in headcount breakdown per gender, contract type and region and/or country. ROCKWOOL does not have any non-guaranteed hours employees. Number of permanent employees Number of temporary employees All employeesMale Female Non-Other or Total Male Female Non-binary Other or Total Male Female Non-Other or Totalbinarygender gender binarygender not not not discloseddiscloseddisclosedGermany 1,120 160 - - 1,280 79 18 - - 97 1,199 178 - - 1,377Other countries in Western Europe 3,648 929 - 7 4,584 190 60 - 4 254 3,838 989 - 11 4,838Western Europe 4,768 1,089 - 7 5,864 269 78 - 4 351 5,037 1,167 - 11 6,215Poland 1,482 487 - 7 1,976 44 35 - 4 83 1,526 522 - 11 2,059Other countries in Eastern Europe and Russia 1,524 377 - 24 1,925 32 15 - 1 48 1,556 392 - 25 1,973Eastern Europe and Russia 3,006 864 - 31 3,901 76 50 - 5 131 3,082 914 - 36 4,032North America 1,138 298 - - 1,436 10 6 - - 16 1,148 304 - - 1,452Asia and others 863 236 - 6 1,105 63 5 1 - 69 926 241 1 6 1,174Total 9,775 2,487 - 44 12,306 418 139 1 9 567 10,193 2,626 1 53 12,873Accounting policies Headcount includes the total number of employees, regardless of full-time or part-time status. Employee data in characteristics of the undertaking employees is calculated based on all headcounts as of the reporting date, broken down by country, gender, contract type and turnover calculations.Full time equivalent (FTE) represent an employeeâs contractual hours as a percentage of a full-time contract for the same positions and country. FTE is reported in the consolidated financial statement, p. 10. The average FTE (p. 135) calculated across each legal entity as a monthly average over the year, based on month-end measurements. The headcount and FTE includes both permanent and temporary employees on local payroll, as well as inactive employees on sick leave or parental leave.Gender data is based on headcount, with no use of estimates. In ROCKWOOL, employees have the option to choose a gender category that aligns with their identity. The available choices are: man, woman, non-binary, other, or choose not to disclose. Permanent employees have open-ended contracts, while temporary employees have contracts with defined start and end dates, with possible extensions. Employee data is centrally managed per GDPR guidelines and covers all employees, also the entities not in Human Capital Management (HCM) system, as this have been collected manually.Most production employees are classified as Direct (blue-collar), while sales and administrative staff are Indirect (white-collar). Employee turnover reflects the number of employees who left ROCKWOOL during the year. Total turnover includes all terminations (voluntary, involuntary, mutual, retirements, and death in service) for both permanent and temporary contracts. Turnover is calculated as the total number of employees who have left the company divided by the average headcount for the year. Terminations are counted starting from the month the employee leaves ROCKWOOL. Employee turnover rate2024Employees who have left ROCKWOOL 1,471 Employee turnover rate total 12% [S1-14] Health and safety metricsPerformance of health and safety management system among own workforce (head count): 2024 2023 TargetsOwn workforce (own employees and contractors):Number of fatalities 1 - Zero fatalitiesNumber of serious accidents 1 2 Zero serious accidentsFrequency of LTI â employees and contractors (No./per million hours worked) 2.7 2.5Continuous improvementAnnual improvement in LTI frequency (%) -8 10Employees:Number of fatalities - - Zero fatalitiesNumber of work-related incidents 57 53 Continuous improvementNumber of recordable work-related ill health incidents 1 -Number of days lost to work-related injuries and fatalities from work-related incidents, work-related ill 2,754 -Continuous improvementhealth and fatalities from ill healthLTI (Lost Time Incident) 2.8 2.6Contractors:Number of fatalities 1 - Zero fatalitiesNumber of work-related incidents including fatalities 12 9 Continuous improvementAccounting policiesAll locations are covered by ROCKWOOL's health and safety management system. To manage safety and related risks effectively, we categorise contractors into permanent contractors and occasional contractors. Permanent contractors are individuals with long-term duties for or on behalf of ROCKWOOL. Occasional contractors are those performing short-term work, such as on-site maintenance. For both contractor types, a method statement is required, with specified safety precautions and supervision measures in place.Incidents involving both permanent and occasional contractors are recorded and included in the Group Lost Time Incident (LTI) rate. While incidents involving external visitors are not included in the Group LTI rate, they are recorded and investigated. Reported fatalities are work incidents that result in the death of employees or contractors. Serious accidents are injuries resulting in loss of body parts or injuries with risk of invalidity for employees or contractors. Work-related ill health refers to any condition rising from workplace exposure to physical, chemical, or biological agents that disrupts normal physiological functions, impairing the worker's health. This includes occupational diseases recognised by local authorities. The metric is measured as the number of cases of work-related ill health, irrespective of duration and recognised by the authorities.Work-related incidents are incidents that occur in connection with work on ROCKWOOL premises (factories, offices etc.), during travelling, visiting building sites or otherwise working for ROCKWOOL Group. Incidents cover fatalities, serious accidents and LTI.All fatalities, serious accidents, work-related ill health and work-related incidents are registered and investigated within the system used for tracking LTI.The LTI rate is calculated as the total LTI per one million working hours. An LTI is defined as an incident that prevents an employee from performing any regular work on any calendar day following the incident. In accordance with CSRD, the number of fatalities is included in the LTI count and LTI rate.The number of days lost for employees due to LTI are tracked in the safety management system, with fatalities set at 180 days lost as per U.S. Occupational Safety and Health Administration guidance. Frequency of LTI for own workforce for 2023 was restated from 2.4 to 2.5, and the 2023 annual improvement hereof was restated from 14 percent to 10 percent. The restatement was due to three unreported LTI that first came to ROCKWOOL's attention in April 2024.Working hours for ROCKWOOL employees are calculated based on payroll data, or in some cases other systems, and reflect total actual hours worked. For safety and working environment reporting, contractors are considered as employees and included in the numbers. Contractor working hours are calculated using actual hours logged on-site or as specified in tender documents.[S1-16] Remuneration metrics (pay gap and total remuneration)ROCKWOOL workplace gender diversity metrics:Goal 2024 2023Percentage of female shareholder-elected 33% 40% 33%Board members Percentage of females in Group - 13% 13%ManagementPercentage of female leaders in executive 35% 28% 27%and middle management positionsShare of female in new hires for middle - 32% 32%manager positionsGender Pay Gap contextual information:The reported pay gap of Direct and Indirect employees reflects the consequence of not considering objective factors. The majority of Direct employees are part of collective agreements, which by nature have no pay gap between genders. For Indirect employees, objective factors such as different responsibilities, work experience, type of work, and assigned grades is not considered in the calculated total pay gap. When considering these objective factors, the calculated pay gap for Indirect employees would be 2.5 percent.Gender Pay Gap in %:2024All employees (direct and indirect)1.6%Annual total remuneration ratio:2024 Total remuneration ratio (Indirect) 34Accounting policiesThe gender pay gap is calculated as the difference in average pay of men compared to the average pay of women, without considering country, responsibilities and work experience, and covers both Indirect and Direct employees. The data used for Direct employees is based on 13 factory locations. For Indirect employees, data from ROCKWOOL's Human Capital Management (HCM) system have been used. In total, 80 percent of employees are represented. The gross hourly wage includes both short- and long-term incentives for Indirect employees. Guaranteed shift premiums for Direct employees are included. Overtime, pension and other variable components have not been included.The remuneration ratio represents the ratio of the highest-paid individualâs remuneration to the median annual total remuneration of Indirect employees (excluding the highest-paid individual). This ratio is calculated by comparing the CEOâs remuneration - including fixed salary, short- and long-term incentives (share-based payments at grant value) - to the median annual total remuneration of only the Indirect employees. Direct employees are not included in this calculation as the required data is currently not centrally available. An initiative will be started in 2025 to rectify the data limitations.Critical estimates and judgementsDue to data limitations, the gender pay gap is calculated based on Indirect and Direct employee data from 13 factories. This data covers 80 percent of the employees in the Group. It is Managementâs judgement that this constitutes a good representation of the gender pay gap for the Group. The pay data used for the calculation pertains to contractual salary amounts for a 12-month rolling period ending in September 2024. Overtime, pension and other variable components have not been included. It is Managementâs assessment that this does not have a significant impact on the pay gap, as pension often is dependent on regulations or other local guidelines applicable for all employees in the same category.The remuneration ratio is calculated based on remuneration data covering Indirect employees, but excluding Direct employees due to data limitations. It is Managementâs assessment that if the Direct employees were included, the ratio would be higher.S3 Affected communitiesWe are a global company, while our business is local. We produce close to customers, and we buy products and hire services in the communities where we operate.[SBM-2, SBM-3] Interests and views of stakeholders and impacts, risks and opportunitiesWith 42 factories in 23 countries, we are a global company, while our business is local. By this we mean that we produce close to customers and buy products and hire services in the communities where we operate. ROCKWOOL generates employment, invests, pays taxes, and provides business for local companies directly within communities where we manufacture. All factories operate within regulations set by the country in which they are located to safeguard employees, contractors, local populations and the environment. These arrangements are subject to robust internal verification processes with consequences in the event of non-compliance. However, industrial activity in general and the association with chemicals and air emissions can raise concerns from local stakeholders.Material impacts, risks and/or Classification Time horizon Location in Description and interaction with business model and /or strategyopportunitiesvalue chainBusiness opportunities for local Positive Short- and OO ROCKWOOL generates employment, investment, tax revenues, and small and medium enterprisesimpacts and medium-termbusiness opportunities for suppliers of goods and services within opportunitiescommunities where we are locatedLocal communitiesâ concern Negative Short- and OO ROCKWOOL's production process generates air emissions and requires about air emissions and the use of impacts and medium-term the use of chemicals. Some of these emissions and chemicals can, in chemicalsriskhigh concentrations, have health impactsMitigation: All factories operate within regulations set by the country in which they are located as well as comply with ROCKWOOL's Mandatory Minimum Requirements to safeguard employees, contractors, local populations and the environment[S3-1] Policies related to affected communities Building and operating a stone wool factory is a long-term investment for ROCKWOOL's business, employees and for the communities in which we operate. To ensure we suitably consider and engage with local communities, we have developed an internal Community Engagement Manual. Additionally, ROCKWOOL's commitment to uphold human rights and engage with communities is outlined in the Human Rights policy and Code of Conduct for Suppliers (see S1 Own workforce, indicator S1-1).[S3-2] Processes for engaging with affected communities about impacts ROCKWOOL's responsibility is to ensure effective communication by engaging in timely, meaningful, and ongoing two-way dialogue with all relevant stakeholders regarding ROCKWOOL's impacts - from employment, local taxes and business for local communities to addressing environmental and health concerns that community members may have. The Community Engagement Manual is a tool intended for use at all factories to support effective communication with local communities.Besides year-round, continuous contact and cooperation with representatives of local communities, which includes a community feedback mechanism, for greenfield or major retrofit planning, ROCKWOOL's Community Engagement Manual obliges stone wool factories to conduct community and stakeholder due diligence as early as practically possible. Group policy Description Scope AccountabilityCommunityThis Manual is an internal document, aligned with the UN Guiding The manual applies to all Group Management is EngagementPrinciples on Business and Human Rights, the OECD Guidelines for stone wool factories and responsible for promotion ManualMultinational Enterprises and the International Finance Corporation outlines how ROCKWOOL of ROCKWOOL Community âStakeholder Engagement - A good practice handbookâ. The purpose production facilities Engagement Manual, of this manual is to expand positive contribution to local communities should engage with local while regional Managing and avoid or minimise negative impacts of ROCKWOOL operations on communities and presents Directors are responsible local communities. several practical tools and for implementation and guidelines.execution regarding The manual sets out a five-step approach to community engagement community and social due and includes practical tools including external agency evaluation, a diligence. project risk assessment scorecard, and stakeholder mapping. The objective is to ensure a two-way dialogue with local communities covering the multiple phases of a factory's existence, from the planning and pre-investment stages through to construction and full operation. The purpose of this manual is to set common ROCKWOOL principles for any factory to ensure effective communication by engaging in timely, meaningful, and ongoing two-way dialogue with all relevant and potentially impacted stakeholders regarding the benefits we bring, while also addressing any concerns about projects that community members may have.Regional Managing Directors, with support from local Public Affairs and Sustainability Directors, have the operational responsibility for implementing the Community Engagement Manual and ensuring that this engagement happens. The Member of the Group Management responsible for Marketing, Communication and Public Affairs, supported by Group VP Communications and Group Director of Public Affairs, is responsible for the principles set out in the Manual and for its communication across ROCKWOOL Group. ROCKWOOL uses official correspondence and our network of local community engagement practitioners to actively stay updated, to track and respond to questions, complaints and feedback from members of affected communities. In 2024, we focused efforts on three projects â on the existing stone wool factory in Roermond in the Netherlands and on the two new electric stone wool factories planned in the United States and the UK. Both social and environmental topics were part of the two-way dialogue with local communities.[S3-3] Processes to remediate negative impacts and channels for affected communities to raise concerns We use the following communication channels and processes to engage with local communities: î Regular correspondence and meetings throughout the year with representatives from local communities in connection with greenfield and brownfield projects, decarbonisation projects (e.g. Flumroc) and larger expansions and/or retrofits of existing factories; î ROCKWOOL's whistleblower platform is available to all external stakeholders, including local communities in all languages of countries where ROCKWOOL has business entities. The whistleblowing platform is accessible from the corporate website. For more information on the whistleblower platform and how we protect those raising concerns against retaliation, see section G1 on business conduct. [S3-4] Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions We aim to construct factories with minimal negative impact on communities. In 2024, among others, actions focused on the following initiatives: 1. Reduced ammonia emissions at the factory in Roermond, the NetherlandsThanks to an improved binder technology to be implemented in the Rockfon production line by 2026-2027, ammonia emissions will be significantly reduced. This technology will cut ammonia emissions by approximately 70 percent at the product level, reducing the factory total ammonia emissions by about 10 percent, based on a reference calculation made in 2024, with assumption of full production capacity of the factory with the current production mix. This initiative is part of broader efforts to lessen the environmental footprint of the factory in Roermond. The complex introduction of this technology requires significant investments and is supported by the Ministry of Climate and Green Growth and the Dutch province of Limburg.2. Community engagement in Peddimore (outskirts of Birmingham), England where a ROCKWOOL electric state-of-the-art stone wool factory is expected to create quality jobs and supply chain opportunities and start operations by end of 2029In 2024, we conducted two local open houses and contacted a range of local representatives and statutory consultees, engaged with more than 2,000 direct points of contact during the consultation period, which resulted in 28 publications related to the new factory. Concerns included over-development, traffic impact, emissions, visual impact, lighting, and local ecology. Suggestions were made for eco-friendly building practices and local job opportunities. ROCKWOOL committed to ongoing engagement and addressing specific concerns with those raising them.3. Community engagement in Walla Walla, Washington State, United States where a ROCKWOOL electric state-of-the-art stone wool factory is expected to create quality jobs and supply chain opportunitiesTo introduce ROCKWOOL locally, we hosted open houses in Burbank and Walla Walla in spring 2024. Community members met ROCKWOOL leaders and learned about the planned stone wool factory in Wallula Gap Business Park, Walla Walla County. We presented ROCKWOOLâs products, manufacturing processes, and commitment to environmental stewardship and local economic opportunities. Additionally, we held meetings with local, state, and federal authorities, including the local chamber of commerce, Walla Walla port representatives, and schools.Metrics and accounting policies[S3-5] Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities By September 2025, 100 percent of stone wool factory managers, technical directors, safety managers, environmental managers and local HR teams will have completed training on the Community Engagement Manual and due diligence mechanism. Compared to baseline 2024: 0 percent.S4 Consumers and end-usersWe support businesses purchasing ROCKWOOL products as well as people living, working, learning, and recovering in buildings and communities where our products are used, in addressing some of todayâs most pressing sustainability challenges. These include energy consumption, decarbonisation, fire resilience, noise pollution, water scarcity, and flooding, while also improving health and safety.[SBM-2, SBM-3] Interests and views of stakeholders and material impacts, risks, and opportunitiesROCKWOOL products are designed to last â both to stand the test of time themselves as well as to extend the lifespan of the structures they protect. The longevity of ROCKWOOL products ensures that their benefits can be gained for decades, leaving a lasting positive impact on the safety, health, and wellbeing of end-users. These characteristics address customersâ expectations as well as drive market opportunities and generate preference for ROCKWOOL, which directly pertains to the business strategy, as presented on pp. 16-17. Material impacts, risks and/or Classification Time horizon Location in Description and interaction with business model and /or strategyopportunitiesvalue chainIncreased safety, health and Positive Short- and D ROCKWOOL products, including insulation, acoustic ceilings, cladding wellbeing of end-usersimpacts and medium-termsystems, horticultural solutions, and engineered fibers help address opportunitiesmajor sustainability challenges like energy consumption, fire resilience, noise pollution, water scarcity, and floodingHealth and safety of consumers & end-users Whether it is technical or building insulation, acoustic ceilings, external cladding systems, horticultural solutions, engineered fibres for industrial use or insulation for the process industry and marine, ROCKWOOL products substantially contribute to improving health and safety for customers and end-users. ROCKWOOL positively impacts end-usersâ health and safety in four areas Fire resilience of stone wool Less noise, greater comfort Stone wool is classified as a non-combustible material, which means it has Stone woolâs thermal properties enhance the indoor comfort of homes by minimal or zero contribution to the spread of fire. Stone wool insulation will allowing temperatures to be controlled. And because stone wool products not ignite when exposed to flames (stone wool can withstand temperature provide noise and vibration control, they help limit sound passing through above 1,000°C) and can prevent fire from spreading to other materials. walls as well as bouncing around in rooms, which can lead to stress and other Fire-safe stone wool insulation is vital to help ensure the safety of building harmful health effects. ROCKWOOL stone wool products also contribute to occupants, preventing the spread of fire and limiting its structural damage.reducing noise and vibration in urban environments as well, including noise fences along roadways and mats under rail tracks.Less resource use for professional greenhouse growersWater repellent, better air quality and lighting Grodanâs stone wool growing media is engineered to retain water, which ROCKWOOL insulation and Rockpanel façade cladding are water repellent creates ideal growing conditions in large-scale greenhouses as well as indoor and vapour permeable, which means they do not trap moisture, which and vertical farms. The substrate is used for many growing purposes, such helps prevent rot, mould and fungal growth. In addition to dampening as tomatoes, peppers, flowers, berries, and medicinal crops. Farmers using sound, Rockfonâs acoustic ceiling panels also improve the lighting quality Controlled Environment Agriculture (CEA) can increase yields while using by balancing light reflection and diffusion, reducing common light-related less water, land and fertilizer. Whatâs more, with Grodan, they have the symptoms like tiredness, headaches and eye fatigue.possibility to reduce or even eliminate chemicals to protect crops.[S4-1] Policies related to consumers and end-users Customers and end-users are covered by ROCKWOOL's Human Rights Policy where they are referred to as âbusiness partners and business relationshipsâ â see section S1 on own workforce. Additionally, we ensure the productsâ safety for customers and end-users by adhering to REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) policy.[S4-2] Processes for engaging with customers, consumers and end-users about impactsThroughout the year and with the objective to incorporate perspectives of consumers and end-users of our products and those who interact with them, ROCKWOOL actively and directly engaged with these external stakeholders through the following events: î Dedicated seminars in face-to-face and online formats; î Education and training in reference to ROCKWOOL products in cooperation with installers, construction companies, students and universities; î Direct day to day work and contact with customers. In 2024, during the above events, we discussed commercial terms as well as the technical and sustainability performance and characteristics of our products. Sustainability topics included products' carbon footprint, durability and compliance with taxonomy-alignment technical criteria and DNSH (Do No Significant Harm) for such activities as construction of new buildings and renovation of existing building. The Marketing, Communication and Public Affairs Group function and regional Managing Directors supported by their team, are responsible for ensuring this continuous engagement with customers, consumers and end-users of ROCKWOOL products.Group policy Description Scope AccountabilityREACH policy The purpose of the REACH policy is to ensure compliance with the ROCKWOOL operations in Group Management demanding EU REACH (Registration, Evaluation, Authorisation, Europe, incl. Switzerland, promotes the REACH and Restriction of Chemicals) regulation and improve protection UK, Norway, Lichtenstein policy. Compliance and of human health and the environment from risks that can be posed and Iceland. Thus, the policy implementation are the by chemicals, especially by Substances of Very High Concern does not cover the non-EU responsibility of Group (SVHCs). EU REACH principles including substances registration, countries. In case of non-EU function heads and risk assessment and management as well as avoidance and countries, sets of country-Managing Directors. substitution with more sustainable options, are also incorporated specific laws and local in other ROCKWOOL policies, manuals and Mandatory Minimum regulations pertaining the Requirements (MMR) â see section E2 Pollution. ROCKWOOL chemicals composition and requires European suppliers and suppliers delivering to European use of products are applied.entities to declare SVHCs in the products and chemicals supplied to us. Roles and responsibilities for ROCKWOOL entities regarding processes, communication and documentation (e.g. Safe User Instruction Sheet/Safety Data Sheet) as well as regarding REACH compliance are outlined in the REACH Compliance Manual for Process and Activities, which is an internal document.This policy applies to ROCKWOOL operations, but has impact on customers and end-user. [S4-3] Processes to remediate negative impacts and channels for consumers and end-users to raise concerns While we do not sell products directly to individual customers or end-users, we widely and precisely communicate about the productsâ technical performance, including environmental topics as well as health and safety aspects, on local web pages and via product documentation, which is available on 48 different local ROCKWOOL web pages in more than 20 local languages (e.g. for UK and Ireland: 1Download ROCKWOOL Insulation Product Documentation). ROCKWOOL's corporate website, which includes the whistleblower platform, is available to everyone on https://www.rockwool.com/group/about-us/corporate-governance/whistleblower-policy/. Commercial contacts are also available for any end-users to raise concerns. For more information on the whistleblower platform and how we protect whistleblowers against retaliation, see G1 on business conduct. Individual customers can â in the same way as corporate customers â directly contact ROCKWOOL for technical support. Depending on the specific country, that can include contact via ROCKWOOL's website and/or calling the technical support team.1 https://www.rockwool.com/uk/resources-and-tools/product-documentation/Interactive contact with corporate customersSince 2015, we have measured corporate customer satisfaction on an annual basis using the Net Promoter Score (NPS) methodology. NPS analysis covers all ROCKWOOL product groups, related services, business relationships, communication and all key corporate customers including distributors, specifiers, architects, contractors, corporate clients like building or facility owners, installers, consultants and developers. The surveys are brief, taking ca. three minutes to complete. The surveys give customers/stakeholders an opportunity to score ROCKWOOL as well as to share their perspectives on the overall experience interacting with ROCKWOOL, including any concerns or comments they have. Moreover, we strive to increase the number of invitations sent out every year to complete these surveys. In 2024, invitations were sent to almost 67,000 customers. The response rate was 12 percent. Tracking effectiveness, monitoring and follow-upsThe brief customer surveys are the basis of ROCKWOOL's analytical work. This analysis covers all of ROCKWOOL's global and regional operations and is executed in the second half of the year. Results from the NPS analysis are presented to Group Management for discussion and agreement on further actions. In 2024, the Group NPS score was 56.2, four points higher than the score in 2023, and 20 points above the construction industry average. NPS helps ROCKWOOL gather client feedback on product quality, with many respondents - architects, contractors, and installers - highlighting ROCKWOOL's commitment to small and medium enterprises. [S4-4] Taking action on material impacts, and approaches to mitigating material risks and pursuing material opportunities related to affected communities, and effectiveness of these actions and approachesContinuous product quality improvement, environmental sustainability, and ensuring the safety of ROCKWOOL products for customers and end-users are key elements of the product due diligence, reflecting ROCKWOOL's commitment to meeting customer and stakeholder expectations. Group Regulatory Affairs within Group Marketing, Communication and Public Affairs function, is responsible for monitoring topics related to consumer health and safety. In 2024, ROCKWOOL focused efforts on the following three key themes:1. Ensuring product chemical and fire safety for customers and end-users î ROCKWOOL's construction products are regulated under the Construction Products Regulation and other requirements such as REACH in Europe; we use a third-party for verification. In non-EU countries, country-specific laws and local regulations pertaining the chemicals composition and use of products are applied. î ROCKWOOL's technical and building insulation products achieve the top fire performance Euroclass Reaction to Fire Classification, either A1 or A2-s1, d0. î ROCKWOOL stone wool does not contain flame retardants and is EUCEB (European Certification Board for mineral products) certified. This is a voluntary certification scheme. Product samples from each factory are tested by independent laboratories twice a year to verify that the produced fibres are bio-soluble and fulfil the strictest 2requirements globally within this area. 2. Expanding Cradle-to-Cradle certification to new products î In 2024, 87 percent (based on sales volumes) of Rockfon products in Europe were Cradle to Cradle Certified® at silver level. Additionally, the Futura insulation product line produced at the factory in Switzerland was Cradle to Cradle Certified® at gold level. î Rockpanelâs two most popular product ranges, Rockpanel Colours and Rockpanel Natural, received Cradle to Cradle Certification® at silver level, verifying that the products are safe, sustainable, and are supporting a circular product life cycle, contributing to a more sustainable future. 3. Supporting building certifications î The quality of ROCKWOOL products, especially for the indoor use, is a benefit when used in building certification schemes such as LEED, WELL, BREEAM and/or to DGNB (Deutsche Gesellschaft für Nachhaltiges Bauen), and HQE (Haute Qualite Environnementale). In 2024, no severe human rights issues connected to the consumers have been reported. Metrics and accounting policies[S4-5] Target related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunitiesCurrently, we do not have specific targets. ROCKWOOL is currently assessing how to set targets compliant with CSRD related to consumers and end-users.2 www.euceb.orgGovernance informationG1 Business conductWe are committed to conduct business with integrity and to ensure compliance with ethical standards and regulations across ROCKWOOL's operations.[GOV-1, IRO-1] Governance and material impacts, risks and/or opportunities We focus on transparency, accountability, and ethical behaviour while never compromising on compliance. We promote a strong culture of integrity through the Code of Conduct, regular training for employees, and a robust whistleblower system. By adhering to these principles, we strengthen long-term trust in business relationships. In the double materiality assessment, protection of whistleblowers and counteracting corruption and bribery were assessed to be material. If these risks are not managed effectively, this could affect ROCKWOOL's reputation and limit commercial opportunities. The double materiality assessment confirmed that an ongoing reinforcement of these business conduct mechanisms should be maintained.[G1-1] Business conduct policies and corporate culture in relation to anti-corruption and protection of whistleblowersROCKWOOL's business conduct is rooted in the four values of The ROCKWOOL Way: Ambition drives the pursuit of excellence; integrity ensures ethical decision-making; responsibility upholds accountability to stakeholders and society; efficiency guarantees theî¢optimal use of resources.To safeguard and strengthen integrity and ensure that business activities are conducted in an ethical manner, ROCKWOOL has among other things established an Integrity Committee.The Integrity Committee consist of the CEO, the CFO, a member of Group Management, the CHRO, the Group General Counsel and the Group Integrity Officer, and is informed of all integrity cases and reported whistleblower cases. The Integrity Committee decides on investigation measures and takes decisions on individual cases. Material impacts, risks and/or Material impacts, risks and/or ClassificationClassification Time horizon Location in Classification, time horizons and concentration in the value chainClassification, time horizons and concentration in the value chainopportunitiesopportunitiesvalue chainAnti-corruption and protection of Anti-corruption and protection of Risks Short- and OO Non-compliance in anti-corruption, bribery and protection of whistleblowerswhistleblowersmedium-termwhistleblowers could exclude ROCKWOOL from tenders and/or commercial partnershipsMitigation: Prevention through awareness-raising and training as well as continued reinforcement of these mechanismsReporting through whistleblower platform and protection ofî¢whistleblowersNon-compliances with the Code of Conduct can be reported through the following communication channels for internal and external stakeholders: î Global ROCKWOOL whistleblower platform, available on all corporate web pages both for external and internal stakeholders with the possibility to remain anonymous; î Regular post directed to ROCKWOOL A/S, Hovedgaden 584, Entrance C, 2640 Hedehusene, Denmark (Att. Group Integrity Officer); î ROCKWOOL employees can also report in person.Whistleblower cases are processed electronically, and sensitive information is stored in encrypted format. The system enables anonymous dialogue with the whistleblower, where the Group Integrity Officer can ask clarifying questions or request further documentation. To ensure the anonymity of the whistleblower, thisî¢dialogue is based on their willingness to voluntarily log onî¢toî¢theî¢portal.All whistleblowing notifications are brought to the attention of the ROCKWOOL Group Integrity Officer. Depending on the nature and seriousness of the reported case, the relevant Group and/or local functions are contacted. To support those affected and support the handling of non-compliance issues, whistleblowers are protected from any form of consequential retaliation, discriminatory or disciplinary action. This includes discharge, demotion, suspension, threats or any other kind of harassment. This is regardless of whether the identity of the whistleblower is known at the outset or becomes known during the course of the investigation. Any such retaliation against the whistleblower is considered a serious breach of the Whistleblower Policy and the Code of Conduct. Such protection shall not apply if the whistleblower is proven to have made a false or unreasonable allegation. Group policy Description Scope AccountabilityThe ROCKWOOL The Code of Conduct complies with the UK Bribery Act 2010 and with the UN Applicable for own The Code of Conduct Code of ConductGlobal Compact commitments, including with principle no. 10 âBusinesses employees and is promoted and should work against corruption in all its forms, including extortion and briberyâ, contractor workers, monitored by the which is derived from the UN Convention against Corruption. The following company-wide and in all Board of Directors, rules constitute the Code of Conduct and refer to ROCKWOOL's material geographies.while implementation sustainability topics: and execution are î zero tolerance approach to fraud;the responsibility of î anti-corruption and bribery, including Gifts and Hospitality Policy;Group Management, î counteract conflict of interest;Managing Directors î compliance with national and international competition and antitrust laws;and managers. î protect data privacy and data security, including confidentiality of information; î counteract money laundering; î respect human rights and labour rights; î protect the health and safety of own workforce; î strive to reduce impact on climate and environment.The ROCKWOOL The whistleblower policy is supported by a manual, which describes how to report Covers all ROCKWOOL The Whistleblower whistleblower public non-compliance in a confidential manner, how reported cases will be treated, and Group companies public policy is policy and internal defines the following three types of topics that should be reported:worldwide and is promoted and manual(1) accounting or auditing matters or irregularities of a financial nature, legal and/available to own monitored by the or ethical nature, such as: fraud, serious deficiencies or deliberate error, breach of workforce, suppliers, Board of Directors, antitrust regulations, lack of respect of human rights, bribery or corruption;customers and third-while implementation (2) other irregularities of a general and/or operational nature, such as parties in more than and execution are serious endangerments concerning the vital interests of the ROCKWOOL 45 languages on the the responsibility of Group or the life or health of individuals, environmental crimes, major corporate website Group Management, deficiencies regarding security in the workplace and serious forms of (Whistleblower policy).Managing Directors discrimination or harassment e.g. in the form of sexual or other serious and managers.harassment;(3) breaches of Union law pursuant to Directive (EU) 2019/1937 of 23 October 2019 on the protection of persons who report breaches of Union law.The manual also describes how the investigation of matters are evaluated and processed, how whistleblowers are protected from any kind of retaliation and how reports records are kept, including deletion of data. [MDR-A] Actions and organisational resources allocated for anti-corruption and protection of whistleblowersTopics related to the Code of Conduct, including anti-corruption, prevention of bribery and protection of whistleblowers, are managed by the Group Integrity Officer, who is part of Group Legal and under the responsibility of the CFO. The Group Integrity Officerâs mandate, in cooperation with the Director of Business Assurance, is to anchor the Code of Conduct across the organisation, i.e. to ensure corruption is prevented and whistleblowers are protected. The Audit Committee is informed of new and closed whistleblower cases on a quarterly basis. The Audit Committee chairperson has regular meetings with Group Business Assurance where the development of the cases are discussed. The Audit Committee chairperson has direct access to the whistleblower system. [G1-3] Prevention and detection of corruption and briberyIn 2024, Group's key actions were focused on two actions: awareness and detection. Awareness raising was delivered by the Code of Conduct e-learning training campaign. These training sessions included such topics as Group Integrity, Code of Conduct, bribery and other improper payments, conflict of interest, human rights, including Groupâs Human Rights Policy, Groupâs DEI Policy, employee conduct, zero tolerance principle, gift and hospitality policy, what and how to report anti-corruption incidents and other breaches of the Code of Conduct. To ensure detection, that outcomes of investigations are unbiased and that investigators and the Integrity Committee are separate from theî¢chain of management involved, these steps were followed in 2024: î Establishment of an investigation team that is not connected with the specific case and not reporting to anyone involved in the case; î In case the matter relates to the Group Integrity Officer, the Group General Counsel, or the Director of Business Assurance of ROCKWOOL A/S, the individual is excluded from participating in the case and any associated decision-making; î If a matter relates to a member of Group Management, the Board of Directors are informed and involved; î The same principles apply if the whistleblower case concerns aî¢member of the Integrity Committee. The member is then excluded from participating in the handling and decision-making process.2024 ROCKWOOL anti-corruption and bribery trainings coverage:At-risk functions New hires (only within Total(all indirect employees)indirect employees)Training coverage:Total (in headcount) 4,820 336 5,156Total receiving training (%) 98% 77% 97%Delivery method: e-learning e-learning e-learningClassroom/face-to-face trainings â â âDuration of e-learning 35 minutes 35 minutesFrequency:How often the training is required? Every second year Mandatory for new hiresTopics covered:Code of Conduct (conflict of interest, workplace harassment, health and safety, human rights)Anti-corruption, anti-bribery and Gifts and Hospitality PolicyWhistleblowing mechanism and reporting proceduresMetrics and accounting policies[MDR-T] Tracking effectiveness through metrics and targetsROCKWOOL's target is to reach 90 percent of active employees annually within the at-risks functions, with training dedicated to Code of Conduct, anti-corruption and whistleblowing mechanisms. In 2024, this target was surpassed as 97 percent of active employees received the training.Moreover, we reached out to employees working in factories with face-to-face training to present the Code of Conduct in 2024. The purpose was to raise awareness on topics such as ROCKWOOLâs values and employee conduct, human rights, harassment and discrimination as well as health and safety. In addition to these training and awareness sessions, there is an open internal communication through the ROCKWOOL intranet, including articles focused on identifying cases of Code of Conduct breaches. Accounting policiesTraining programme coverage is reported for functions-at-risk, defined as roles with tasks and responsibilities that make them susceptible to risks of corruption and bribery. At ROCKWOOL, all functions-at-risk employees registered in the human resources system are required to complete an online training program in the Group's Code of Conduct. These employees are classified as functions-at-risk due to the nature of their work responsibilities. Functions-at-risk employees consist of active employees, defined as those not on parental leave, sick leave, or other extended absences. Employees no longer with the company are not counted as having completed the training, regardless of previous participation. Data on completion rates for functions-at-risk employees are collected from Rockademy, ROCKWOOLâs Learning Management System.[G1-4] Confirmed incidents of corruption or briberyReported confirmed incidents refer to non-compliance cases that the Group Integrity Officer and Integrity Committee have determined to be substantiated. This determination does not require confirmation by a court of law. Confirmed incidents of corruption or bribery exclude cases that are still under investigation at the close of the reporting period.In 2024, no convictions and no fines for violation of anticorruption and anti-bribery laws were reported and there were no public legal cases regarding corruption or bribery.In 2024, there were two confirmed corruption incidents received through whistleblowing and other communication channels in which own workforce individuals were dismissed or disciplined. One contract with business partners was terminated or not renewed due to violations related to corruption or bribery. AppendixReferences to other EU legislationsReference table with TCFD recommendationsPageGovernanceDescription of Boardâs oversight of climate-related risk and opportunities 48Description of the managementâs role in assessing and managing climate-related risks and opportunities 49StrategyA description of the climate change risks and opportunities that the organisation has identified in the 57short, medium, and long termDescription of the impact of climate-related risks and opportunities on the organisationâs businesses, 57strategy and financial planningDescription of the resilience of the organizationâs strategy, taking into consideration different climate-67related scenarios, including a 2°C or lower scenarioRisk managementDescription of the organisationâs processes for identifying and assessing climate-related risks 64Description of the organisationâs processes for managing climate-related risk 64Description of how processes for identifying, assessing, and managing climate-related risks are integrated 46into the organisationâs overall risk managementMetrics and targetsDescription of the metrics used by the organisation to assess climate-related risks and opportunities in 71, 73, 78, 82, line with its strategy and risk management process85, 87Disclosure of Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the 73related risksA description of the targets used by the organisation to manage climate-related risks and opportunities 71, 78, 82and performance against targetsReference table with UN Sustainable Development GoalsPageSDG 5 Gender equality:105Contributing to target 5.1 End all forms of discrimination against all women and girls everywhereSDG 6 Clean water and sanitation:81-82Contributing to target 6.4 By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity SDG 7 Affordable and clean energy:71Contributing to target 7.2 By 2030, increase substantially the share of renewable energy in the global energy mixSDG 8 Decent work and economic growth:100-101Contributing to target 8.8 Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment SDG 9 Industry innovation and infrastructure:76, 78Contributing to target 9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilitiesSDG 11 Sustainable cities and communities:114Contributing to target 11.b By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate changeSDG 12 Responsible consumption and production:84-89Contributing to target 12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuseSDG 13 Climate action:67-68Contributing to target 13.2 Integrate climate change measures into national policies, strategies and planningSDG 14 Life below water:81-82Contributing to target 14.1 By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollutionSDG 16 Peace, justice and strong institutions:119Contributing to target 16.1 Substantially reduce corruption and bribery in all their forms</mrv:SustainabilityReport>
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<mrv:StatementOfPolicyForDataEthics contextRef="ctx-1" id="s8__7__12" xml:lang="en">Data ethics In 2021, guidelines on data ethics were implemented in accordance with the Danish Financial Statements Act section 99d. The guidelines describe how data ethics are considered and included in the use of data as well as the design and implementation of technologies used for processing of data within ROCKWOOL. The Groupâs Integrity Committee reviews and assesses the adequacy hereof on an annual basis. The guidelines are published and are available for all employees on the Group Intranet.Board of Directors</mrv:StatementOfPolicyForDataEthics>
<mrv:DisclosureOfMaterialImpactsRisksAndOpportunitiesAndHowTheyInteractWithStrategyAndBusinessModelExplanatory contextRef="ctx-1" id="s8__7__14" xml:lang="en">Impact, risk and opportunity management [IRO-1] Description of the process to identify and assess material impacts, risks and opportunitiesThe double materiality assessment (DMA) was carried out in the second half of 2023 and updated in 2024. The DMA will be reviewed and updated annually. Moreover, we will revisit the assessment if any significant internal or external changes occur, such as significant strategy reviews, regulatory developments, or evolving stakeholder expectations.Through the DMA, material sustainability impacts, risks and opportunities were identified. More than 50 sustainability topics were assessed using the methodology described below.ScopeThe DMA covered the entire ROCKWOOL Group, the whole value chain and all geographies. In the upstream value chain assessment, we focused mostly on Tier 1 - direct suppliers and business partners, but also considered Tier 2 and cradle-to-Tier 3 whenever material (e.g. raw materials extraction, specific geographies with assessed high human rights risks and/or with high environmental risks). In the downstream value chain assessment, Tier 1 (corporate customers), Tier 2 (end-users of our products) and Tier 3 (e.g. owner of buildings) were considered. For relevant topics that could give rise to heightened risk, potential negative impacts were discussed with the different stakeholders.Materiality was assessed from both an impact and financial perspective: î From an impact materiality perspective, actual and/or potential negative impacts over short-, medium- or long-term time horizons and based on scale, scope, and irremediable character of the impact, were assessed. Actual and/or potential positive impacts were assessed based on scale, scope and in case of potential positive impact, on likelihood; î From a financial materiality perspective, ROCKWOOL assessed over short-, medium- or long-term time horizons, actual and/or potential risks and opportunities using the two parameters: likelihood of occurrence and the potential magnitude of financial effects.Stakeholder engagementInterests and views of internal and external stakeholders were considered through analysis of environmental and human rights risk assessments, past events, and internal and external surveys carried out within the past two years. ROCKWOOL conducted additional comprehensive surveys and structured one-to-one interviews among representatives of selected internal and external stakeholders. This included human resources, business entities and finance as well as financial institutions, customers and business partners so that different concerns and perspectives were taken into account. Additionally, we engaged internal subject matter experts by carrying out two workshops dedicated to environmental and social topics. There has been no direct consultation with affected stakeholders.ScoringEvaluation of impact materiality (green) was a result of four parameters, all of which were scored on a scale of one to five.The financial materiality score (orange) was a quotient resulting from the size of the potential financial effect (risk and/or opportunity) added with its likelihood, each scored on a scale of one to five, and then divided by two.Criterion Description Score of one Score of fiveScale The scale of Minimum impact on Large scale impact ROCKWOOL's people, environment, with high damage impact on economyincluding complete sustainability topicsdestruction or fatalityScope The scope of Immediate Country and/or ROCKWOOL's surroundings (e.g., global reachimpact on ROCKWOOL factory sustainability topicsand/or less than 10 affected stakeholders)Irremediability Irremediable Very easy to remedy Non-remediablecharacter of with very low to low ROCKWOOL's effortimpact on sustainability topicsLikelihood Likelihood of Rare, remote Almost certain, event ROCKWOOL's likelihood that the may/is expected to impact on event will occur (i.e., occur. If the impact sustainability topicsless than once every has occurred, scored 10 years)as fivePotential The probability Probability that the Probability that the (likelihood) of the event will occur is event will occur is financial effectpotential financial < five percent; > 95 percent; event effectremote likelihood may occur within one that event will occur year(less than onceevery 10 years)For likelihood, whenever an impact has occurred, even if the event took place in a single geographical area or in a particular business entity, the likelihood was scored as five.The size of the potential financial effect (risk and/or opportunity) was aligned with Group financial materiality, referring to revenue, EBIT or assets.While scoring risks, both gross risk and mitigating actions were assessed. Any risk was first assessed as a gross risk (hazard, exposure, vulnerability), and then reassessed with mitigation measures in order to determine the potential impact on ROCKWOOL's assets and supply chain. Additionally, whenever a potential negative human rights impact was identified, the severity of the impact took precedence over its likelihood.Throughout the DMA analysis and impact prioritisation, risks and opportunities, global trends, and market-specific regulatory requirements were considered. This included factors that could affect relationships with customers, distributors, or local markets. From an input parameters perspective, the following sources covering all ROCKWOOL global activities and geographies, were used: international customersâ expectations with focus on customers from the most regulated market; local environmental authority requirements; past events with local communities; internal employee satisfaction surveys; financial institutions ratings; and recommendations. For further description of the managerial risk evaluation process, please refer to Sustainability governance on pp. 46-49.Materiality threshold î For impact materiality, the threshold was set at above two (informative), which means that topics with impact materiality lower than or equal to two have minimal informative value. î The financial materiality threshold was set at equal to and above three (significant) and is aligned with financial materiality at Group level.Process stepsAfter assessment of the topics based on the described process, the consolidated results were reviewed and validated by Group Management and the Board of Directors. The sustainability topics identified as material are not new to ROCKWOOL and most of them have been part of the Enterprise Risk Management process for a numbers of years.List of 13 material sustainability topicsEnvironment 1. Climate change adaptation and mitigation 2. Energy3. Pollution of air 4. Substances of concern5. Resources use6. Resources outflows, incl. waste, packaging, and circularity principles7. Water withdrawalSocial 8. Own workforce health and safety, human rights9. Own workforce gender equity and gender pay gap10. Affected communities: communitiesâ economic and social rights11. Consumers and end-users' health and safetyGovernance 12. Prevention of corruption and bribery13. Protection of whistleblowersMaterial impacts, risks, and opportunities and their interaction with strategy and business model[SBM-3]The impacts, risks and opportunities are categorised in own operations (OO), upstream (U), downstream (D), or within our value chain (VC). It is also indicated whether the impacts are positive or negative. ESRS Material impacts, risks and/or Classification Time horizon Location in value Description and interaction with business model and /or strategystandardopportunitieschainE1 Climate Transitional risks due to Negative impact Medium-term VC Classified as a "high climate impact sector," most stone wool factories use fossil fuels, impacting climate change and exposing changeincreasing carbon costs and and risks ROCKWOOL to rising carbon costs. These risks are presented in more detail in the scenario analysis on pp. 64-66embodied carbon levelMitigation: Transition plan for climate change mitigationPhysical risks due to acute Risks Medium-term VC ROCKWOOLâs factories, key assets with capital-intensive technologies, could be harmed by acute climate changes. These physical risks climate changesare presented in more detail in the scenario analysis on pp. 64-66Mitigation: Regular monitoring, evaluation and mitigation in cooperation with insurers and expertsNon-combustible energy saving Opportunity Medium-term VC Increased demand for insulation products is an opportunity presented in more detail on pp. 64-66products contribute to green transitionE2 Pollution Air emissions other than GHG Negative impact Short-term OO The production process entails melting raw materials at temperatures about 1,500°C and curing wool fibres at around 450°C. This and risksprocess generates pollution of air other than GHG emissions, such as NO, SO, CO, PM, and other substances. With increasingly x210demanding EU and international regulations and local community awareness, the risks linked to air emissions are significantMitigation: Abatement installations and R&D focused on new binder technologiesUse of chemicals in binders Negative impact Medium-term OO ROCKWOOL's stone wool production technology uses substances of concern as binder ingredients. These chemicals could expose and risksROCKWOOL to risks linked with increasingly demanding environmental standards Mitigation: R&D focused on moving towards new bindersE3 Water Water use Negative impact Medium-term OO Water is used for stone wool production, mainly to cool the melting furnace. Access to water in water stressed areas could lead to an and marine and risks operational risk by limiting production capacity and negatively impact the environment. This is relevant for the seven factories located resourcesin water stressed areasMitigation: Group target to reduce water use per tonne of stone wool producedE5 Resources Stone extraction Negative impact Medium- and long-U and OO Stone wool production uses stone, an abundant raw material, the use of which entails quarrying that can impact the environmentuse and termMitigation: application of circularity principles (recyclability and durability) and tracking effectiveness through a circularity dashboardcircular Waste and plastics in packaging Negative impact Short- and D Stone wool factories generate waste and use plastic in packaging. Risks are linked with increasingly demanding market standardseconomyand risksmedium-termMitigation: Tracking effectiveness of circularity principle through a dashboard that includes a target of reducing waste to landfill from stone wool productionESRS Material impacts, risks and/or Classification Time horizon Location in value Description and interaction with business model and /or strategystandardopportunitieschainS1 Own Working conditions in Negative impact Short-term OO ROCKWOOL's production technology involves working with chemicals, heavy equipment and at high temperatures, which may lead to workforceproductionand risksnegative impacts on health and safety of own workforce, including potential fatalitiesMitigation: Continued reinforcement of the health and safety management systemExposure to four salient human Negative impact Short- and OO Factories use contract workers to meet short-term production needs. Some are employed by local agencies, and we have assessed their rights risks, especially in high-and risksmedium-termexposure to four human rights risks: working conditions, health and safety, and child and/or forced labour risk countriesMitigation: Continued reinforcement of the human rights due diligence mechanismGender bias in manufacturing Negative impact Short- and OO Balancing gender representation in manufacturing is challenging due to working conditions, which may limit diversity. Increased and risksmedium-termregulatory requirements and investment strategies by financial institutions pose a risk to gender diversityMitigation: Implementation of actions supporting the increase of female leadership in senior and middle management positionsS3 Affected Business opportunities for local Positive impacts Short- and OO ROCKWOOL generates employment, investment, tax revenues, and business opportunities for suppliers of goods and services within communitiessmall and medium enterprisesand opportunities medium-termcommunities where we are locatedLocal communitiesâ concern Negative impacts Short- and OO ROCKWOOL's production process generates air emissions and requires the use of chemicals. Some of these emissions and chemicals about air emissions and the use and risksmedium-termcan, in high concentrations, have health impactsof chemicalsMitigation: All factories operate within regulations set by the country in which they are located as well as comply with ROCKWOOL's Mandatory Minimum Requirements to safeguard employees, contractors, local populations and the environmentS4 Consumers Increased safety, health and Positive impacts Short- and D ROCKWOOL products, including insulation, acoustic ceilings, cladding systems, horticultural solutions, and engineered fibres help and end-userswellbeing of end-usersand opportunitiesmedium-termaddress major sustainability challenges like energy consumption, fire resilience, noise pollution, water scarcity, and floodingG1 Business Anti-corruption and protection Risks Short- and OO Non-compliance in anti-corruption, bribery and protection of whistleblowers could exclude ROCKWOOL from tenders and/or conductof whistle blowersmedium-termcommercial partnershipsMitigation: Prevention through awareness-raising and training as well as continued reinforcement of these mechanismsD: DownstreamOO: Own operationsU: UpstreamVC: Throughout the whole value chain[IRO-2] Disclosure requirements in ESRS covered by the undertaking's sustainability report General informationStandard ESRS Indicator PageGeneral disclosures BP-1 General basis for preparation of sustainability statement 44BP-2 Disclosures in relation to specific circumstances 44-45Governance GOV-1 The role of the administrative, management and supervisory bodies 30-32GOV-2 Information provided to, and sustainability matters addressed by the undertakingâs administrative, management and supervisory bodies 46-48GOV-3 Integration of sustainability-related performance in incentive schemes 48GOV-4 Statement on due diligence 48-49GOV-5 Risk management and internal controls over sustainability reporting 49-50Strategy SBM-1 Strategy, business model and value chain 51-53SBM-2 Interests and views of stakeholders 54SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 57-58Impact, risk and opportunity management IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 55-56IRO-2 Disclosure requirements in ESRS covered by the undertakingâs sustainability statement 59-61Environmental informationStandard Material topic (IROs) ESRS Indicator PageE1 Climate Climate change adaptation, E1-1 Transition plan for climate change mitigation 67-68changemitigation and energyE1-2 Policies related to climate change mitigation and adaptation 69E1-3 Actions and resources in relation to climate change policies 70E1-4 Targets related to climate change mitigation and adaptation 71E1-5 Energy consumption and mix 71-72E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 73E1-7 Removal GHG through carbon credits ROCKWOOL does not remove GHG emissions through carbon creditsE1-8 Internal carbon pricing 73-74E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities Not reported for 2024 due to use of phase-in provisionStandard Material topic (IROs) ESRS Indicator PageE2 Pollution Pollution to air and E2-1 Policies related to pollution 76, 77substances of concernE2-2 Actions and resources related to pollution 77E2-3 Targets related to pollution to air and to substances of concern 78E2-4 Pollution of air 78E2-5 Substances of concern 76, 78E2-6 Anticipated financial effects from pollution-related impacts, risks and opportunities Not reported for 2024 due to use of phase-in provisionE3 Water and Water withdrawal E3-1 Policies related to water and marine resources 80marine resourcesE3-2 Actions and resources related to water and marine resources 81E3-3 Targets related to water and marine resources 82E3-4 Water consumption 82E3-5 Anticipated financial effects from water and marine resources-related impacts, risks and opportunities Not reported for 2024 due to use of phase-in provisionE5 Resource Circularity â resources E5-1 Policies related to resource use and circular economy 84use and circular inflows and outflows, incl. E5-2 Actions and resources related to resource use and circular economy 84-85economywaste and packagingE5-3 Targets related to resource use and circular economy 86E5-4 Resource inflows 87-88E5-5 Resource outflows 88-89E5-6 Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities Not reported for 2024 due to use of phase-in provisionSocial informationStandard Material topic (IROs) ESRS Indicator PageS1 Own workforce Health and safety, human S1-1 Policies related to own workforce 99, 101-102, 104rights and gender equityS1-2 Processes for engaging with own workers and workersâ representatives about impacts 100S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns 100S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own 101, 102, 103, 104workforce, and effectiveness of those actionsS1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 105S1-6 Characteristics of the undertakingâs employees 106Standard Material topic (IROs) ESRS Indicator PageS1 Own workforce Health and safety, human S1-7 Characteristics of non-employee worker Not reported for 2024 due to use of rights and gender equityphase-in provisionS1-14 Health and safety metrics 107 S1-16 Compensation metrics (pay gap and total compensation) 108S3 Affected Local communities S3-1 Policies related to affected communities 110communitiesS3-2 Processes for engaging with affected communities about impacts 110S3-3 Processes to remediate negative impacts and channels for affected communities to raise concerns 111S3-4 Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to 111affected communities, and effectiveness of those actionsS3-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 111S4 Consumers Consumer and end-users S4-1 Policies related to consumers and end-users 114and end-usershealth and safetyS4-2 Processes for engaging with consumers and end-users about impacts 114S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 114 -115S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to 115consumers and end-users, and effectiveness of those actionsS4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 115Governance informationStandard Material topic (IROs) ESRS Indicator PageG1 Business Protection of whistleblowers G1-1 Business conduct and corporate culture in terms of protection of whistleblowers 117-119conductCounteracting corruption G1-3 Prevention and detection of corruption and bribery 119-120and briberyG1-4 Confirmed incidents of corruption or bribery 120ROCKWOOL specific KPIStandard ROCKWOOL indicator PageE1 Climate change Scope 1 and 2 CO emission intensity 712Energy efficiency in own buildings 71E3 Water and marine resources Water use intensity 82E5 Resource use and circular economy Number of countries with comprehensive reclaimed material schemes 86Landfill waste from our stone wool production facilities 86S1 Own workforce Percentage of female leaders in executive and middle management positions 105, 108Zero fatalities and zero serious accidents 107Environmental informationE1 Climate changeStone wool, the foundation of all ROCKWOOL businesses, is a recyclable, non-combustible, durable, and versatile material that plays a crucial role in addressing today's climate challenges, while the production process is energy-intensive, contributing to GHG emissions. [SBM-3] ROCKWOOL innovates, produces and delivers materials and products that provide solutions for climate-related challenges such as energy efficiency, fire resilience, and water management. While the production process is capital- and energy-intensive, which contributes to greenhouse gas (GHG) emissions, ROCKWOOLâs most advanced production technologies are designed to run on energy from low-carbon and renewable sources, which limit negative impacts on climate change and transitional risks.Material impacts, risks and/or Classification Time horizon Location in Description and interaction with business model and/or strategy opportunitiesvalue chainTransitional risks due to increasing Negative Medium-term VC Classified as a "high climate impact sector," most stone wool factories carbon costs and embodied carbon impacts and use fossil fuels, impacting climate change and exposing ROCKWOOL levelrisksto rising carbon costs. These risks are presented in more detail in the scenario analysis on pp. 64-66Mitigation: Transition plan for climate change mitigationPhysical risks due to acute climate Risks Medium-term VC ROCKWOOLâs factories, key assets with capital-intensive technologies, changescould be harmed by acute climate changes. These physical risks are presented in more detail in the scenario analysis on pp. 64-66Mitigation: Regular monitoring, evaluation and mitigation in cooperation with insurers and expertsNon-combustible energy saving Opportunity Medium-term VC Increased demand for insulation products is an opportunity presented in products contribute to green more detail on pp. 64-66transition[IRO-1] ROCKWOOL climate scenario analysis With a large number of factories and production processes that are both capital- and energy-intensive, ROCKWOOL is subject to climate-related transitional and physical risks. Transitional risksIn terms of transitional risks, regulations can represent both a major risk and opportunity for ROCKWOOL â an opportunity from rising demand for energy saving solutions for buildings and technical installations â and a risk as regulations like Emission Trading Schemes (ETS) can increase the financial burden. The decarbonisation strategy will reduce the GHG emissions intensity, as we are increasingly using low-carbon and renewable energy sources. Governance over climate-related risks and opportunities:Board of Directorâs oversight of climate-related risks and opportunities Group Managementâs role in assessing and managing climate-related risks and opportunities î The Board of Directors is responsible for ensuring that the Groupâs risk î Risk management is part of the CFO's area of responsibility and includes exposure, including climate-related topics, is consistent with the targeted providing regular updates to the Audit Committee and Board of Directors;risk profile and evaluates that appropriate awareness and management î The Enterprise Risk Management Committee is responsible for reviewing processes are in place;and updating the internal risk management framework and implementing related processes. Climate-related risks and opportunities are closely linked î In 2020, the Board of Directors approved the SBTis goals; monitor progress to the Groupâs financial and commercial strategy relating to the sale of toward achieving these;carbon emission-abating products. As such, these risks and opportunities î In 2022, the results from the climate-scenario analysis on physical are integrated into the different business unit strategies, which are updated and transitional climate risk were presented to and discussed with the Board annually.of Directors; î Additionally, the CEO is responsible for climate-related issues, incl. annual î The Board of Directors reviews and guides annual budgets, including budgets for climate mitigation and adaptation activities.decarbonisation and transition plans, oversees major capital expenditures, acquisitions, mergers and divestitures, and reviews innovation and R&D priorities linked to climate-related risks and opportunities.Physical risks In 2022, a climate scenario analysis was conducted to evaluate physical climate-related risks across ROCKWOOL's global manufacturing footprint. Two alternative climate change scenarios were analysed â a âhigh physical impactâ 4°C warming scenario and a ârapid transitionâ scenario, where warming is limited to 1.5-2.0°C. In each scenario case, the time horizons 2030 and 2050 were used. In addition, to the climate scenario analysis, a separate water scarcity assessment was carried out. As a result of this assessment, we identified one additional factory in a water stressed area. In total, seven stone wool factories are located in water stressed areas.The above mentioned analysis and assessments are carried out every three to five years and form the basis for implementing and refining the resilience strategy. The ROCKWOOL resilience strategy consists of a transition plan (see pp. 67-68) and environmental targets (see p. 71) with the purpose to reduce GHG emissions and limit the environmental footprint.Identified climate change physical risks and opportunities:Time horizon Business as usual Rapid-transition (High physical impact with ~4°C warming)(Relatively safe physical impact with ~1.5°C warming)This scenario is a merger of RCP 8.5 - SSP 5-8.5 and assumes This scenario is a merger of RCP 4.5 - SSP 2-4.5, assumes high no mitigation actions on GHG emissions and predicts that the mitigation actions on GHG emissions and implementation of rate of emission reductions will be incompatible with current the Paris Agreement, which means that climate change would declarations of UN Member States. be halted at relatively safe level. Actual and short-term î Heavy precipitation and flash flooding: damage to assets and/or products, and supply chain disruption due to heavy risks and their impacts precipitation.on ROCKWOOL own î Heat stress: impact on ROCKWOOL's employees due to sustained higher temperatures and/or heat waves may reduce operations and upstream productivity and can lead to adverse health effects.value chain î Water stress: production and supply chain disruptions due to limited availability of water. î Drought: water is an essential element in the mining process. Therefore, droughts can cause disruptions in the supply chain. î Riverine flooding: damage to assets and production disruptions due to riverine flooding at/near production sites and supply chain disruptions. î Windstorms: damage to assets, products and/or infrastructure (e.g. power grid) due to high wind speed from windstorms.Mid-term (2030) î Heavy precipitation and flash flooding (3 factories) î Heavy precipitation and flash flooding (3 factories) î Heat stress (3 factories) î Heat stress (3 factories) î Water stress (1 factory) î Water stress (1 factory) î Riverine flooding (1 factory) î Riverine flooding (1 factory)Long-term (2050) î Heavy precipitation and flash flooding (17 factories) î Heavy precipitation and flash flooding (9 factories) î Heat stress (10 factories) î Heat stress (7 factories) î Water stress (3 factories) î Water stress (4 factories) î Chronic drought (3 factories) î Chronic drought (2 factories) î Riverine flooding (1 factory) î Riverine flooding (1 factory)Climate-related physical and transitional risks and opportunitiesClimate-related risks and opportunities Risk / Opportunity Time horizon Management methodPhysical acute and chronic risksIncreased variability of precipitation and weather patterns Risk: With 42 factories and capital-intensive production, some ROCKWOOL Medium- to long-term The risk is managed by business units, and is subject to regular factories face increased severity and frequency of extreme weather events like flash monitoring, evaluation and mitigation in cooperation with insurers floods and riverine flooding.and experts.Opportunity: ROCKWOOL Rainwater Systems buffer rainfall from extreme events Short- to long-term Active response to growing market demand. for infiltration into the soil or discharge to the sewer. These stone wool elements, absorbing 95 percent of their volume in water, are used under roads, streets, squares, car parks, industrial estates, and water retention areas to mitigate water nuisance, helping build climate-resilient cities.Drought, including water scarcity Risk: This risk was identified at seven factories. See section E3 Water and marine Medium- to long-term The risk is managed by business units, and is subject to regular resources for more details. monitoring, evaluation and mitigation in cooperation with insurers and experts.Opportunity: Drought and water scarcity present an opportunity for Grodan, Medium- to long-term Active response to growing market demand. which produces stone wool substrates for horticulture that use less water, land, and fertilizer than traditional soil.Transitional risks Policy and regulatory risksRegulation presents both a risk and opportunity for Risk: In 2024, 15 factories were included in the EU ETS Phase IV (2020-2030), two Short- to medium-term For the period 2020-2030, the mineral wool sector has been ROCKWOOL: an opportunity to boost demand for factories were in emission trading systems connected or similar to the EU ETS granted EU carbon leakage, which significantly increases the energy-saving solutions, and a risk due to potential (Switzerland and UK) and one was part of a local ETS (Canada).number of free allowances allocated to each factory. The financial burdens from carbon emissions. ROCKWOOLâs decarbonisation strategy reduces GHG emissions by using more factories, included in the EU ETS or similar schemes, are at Opportunity: Increased demand for energy saving solutions such as insulation.low-carbon and renewable energy sources, mitigating future risk of increasing carbon costs.financial risks for the Group.Energy supplyThe risk of energy shortage in the grid, including natural Risk: ROCKWOOL's production is energy intensive. ROCKWOOL's future gas Short- to medium-term Alternative energy processes and sources have been identified for gas shortage in European grid. dependence will remain fairly stable while electricity dependence will increase.key European factories. Furthermore, the energy strategy has been reviewed and includes the use of power purchase agreements to ensure stable supply and to prevent material fluctuations in energy prices.[E1-1] Transition plan for climate change mitigationThe transition plan and targets related to climate change mitigation refer to stone wool factories and are approved by the Board of Directors, strategically managed by Group Management and executed operationally by Group Operations and Technology.Aligned with the Paris Agreement and compatible with limiting global warming to the well-below 2°C pathway The Group's mitigation efforts are aligned with the Paris Agreement, compatible with limiting global warming to the well-below 2°C pathway, approved by SBTi in 2020, and the objective of achieving Net-Zero by 2050 with residual GHG emissions. In 2019, when setting these targets, ROCKWOOL assumed a steady company growth coupled with a decarbonisation focus on Europe and North America. In these two regions, we observed customersâ rising focus on the environmental footprint of our products as well as no new regulatory elements that could disturb the market. The transition plan is not aligned with the 1.5°C trajectory. Together with other companies in the non-metallic mineral manufacturing sector, ROCKWOOL is discussing a sectoral pathway approach with SBTi. We continue to evaluate and model potential scenarios in order to align with the 1.5°C pathway.ROCKWOOL transition plan for climate change mitigationROCKWOOL's production processes are energy intensive, and ROCKWOOL is classified as part of the high climate impact sector. Approximately 70 percent of the GHG emissions are generated in Scope 1 and 2. As we are striving to meet own and global climate goals, ROCKWOOL is required to decarbonise operations to the greatest extent possible.Electrifying the melting processes, which is embedded in the investment strategy and financial planning, has the greatest impact on reducing GHG emissions in Scope 1 and 2 as well as in category 3 in Scope 3, which covers fuel- and energy-related GHG emissions not included in Scope 1 or 2. In 2024, ROCKWOOL invested 262 MEUR in electrification, upgrading of factories (including digital investments), abatement technologies to reduce GHG emissions, conversions and optimisation of production lines and preparing new ones. Additionally, 67 MEUR research and development costs were expensed. Both amounts are part of taxonomy-aligned disclosures in reference to CAPEX and OPEX. On top of that, we had a necessary 8 MEUR investment in third-party assets related to electricity grids. Altogether, 337 MEUR were allocated for the transition plan for climate change mitigation. Different geographies, different infrastructure ROCKWOOL has factories in 23 countries, each with different political, economic and business conditions, maturity of renewable energy infrastructure, supply chain constraints and customer preferences. Among the most salient factors influencing electrification plans and priorities are the readiness of a region's electricity grid to handle large-scale factories as well as availability and access to sufficient quantities of low-carbon electricity. Even in countries with clear electrification strategies, there can be considerable delays before infrastructure catches up. In some instances, it can take up to 10 years to connect to the electricity grid.ROCKWOOL transition plan for climate change mitigationROCKWOOL transition plan for climate ch2019 2020 2021 2022 2023 2024Our transition plan is structured around three main levers:(1) Energy efficiency, improvement of stone wool factories and administrative buildings, leading to reduction of energy consumption and reducing Scope 1 and 2 GHG emissions: optimis-ing production processes (heat recovery), upgrading equipment (solar panels, insulation, electric forklifts, and more energy efficient machinery) and improving facility management;(2) Technology innovation, leading to reduction of GHG emissions in Scopes 1, 2 and 3: electrification of production lines, along with securing renewable energy supply, new capacity with electric melting technology, conversions from coal to natural gas or biogas, R&D focused on binders, infrastructure linked to new binders;(3) Circularity, leading to reduction of GHG emissions in Scope 3: focus areas include durability, programmes and infrastructure for taking waste back from the market (incl. Rockcycle and briquetting plants), designing out waste and pollution, keeping materials at their highest value, and aiming to reduce the amount of virgin materials used.COe [kt]23,1193,0473,0293,0002,7912,67232,588Scope 3:1.04 Mt COe220% reduction 2,000Scope 2:in Scope 3 0.33 Mt COeabsolute value¹Scope 3:20.84 Mt COe2Scope 2:~0 Mt COe21,000Scope 1:38% reduction1.75 Mt COein Scope 1 & 2 2Scope 1:Net-Zero: -90%absolute value²1.2 Mt COe2in GHG emission1) Target approved by SBTi in 2020 but not in scope of limited assurance. Total COe Scope 1 Scope 2 Scope 32) Target aligned with well-below 2ºC pathway, approved by SBTi and in scope of limited assurance.Possible carbon offsets23) Disclosed performance of Scope 3 and thus total COe, in 2019-2023 is not in scope of limited assurance.2for residual GHG emissions Climate change mitigation, adaptation and energy[E1-2] Policies related to climate change mitigation and adaptation Group policy Description Scope AccountabilityCertification of Stone wool factories comply with the following ISO standards to accurately monitor performance and progress towards climate All ROCKWOOL stone wool factories are Group Management is promoting the approach factories with ISO goals:covered by this management approach.towards ISO certification of the policy for Safety, 14001 and ISO 9001 î ISO 14001:2015: Environmental management systems to reduce the environmental footprint;Health and Environment (SHE). Managing î ISO 9001: Quality management standard focusing on continual improvement, including energy efficiency and process Directors are responsible for implementing this optimisation. policy.The share of ISO-certified factories is disclosed in the E1-3 indicator on p. 70.Research and The purpose of our R&D policy is to ensure that technological competitiveness is combined with reaching sustainability targets, All R&D activities performed in Group Management is promoting the R&D Development (R&D) especially those related to decarbonisation (e.g. proprietary electric melting technology, new binder technologies).ROCKWOOL Group as well as local R&D policy.policyactivities (which must be reported to the Group).Controllers manual The investment governance manual classifies investments into five categories: growth, efficiency, safety and health, The manual covers investments above Group Management, with oversight by the CFO, administration and IT, and environmental, which includes reducing environmental footprints (e.g. GHG emissions reduction 5,000 EUR recognised as property, plant holds accountability Controllers manual.and improving product chemical composition). Business units must indicate the impact a given investment has on Group and equipment.sustainability goals and specify which goal it addresses. The manual aims to structure, track, and monitor investments, including climate change mitigation and adaptation at Group level. Depending on the investment amount, proposals are approved by Group Management or the Board of Directors. New build, rental We have set a target to reduce energy consumption in own office buildings to showcase opportunities linked to energy savings For construction of new office buildings Group Management promotes the policy. and renovation of solutions. Measures taken can for example include renewable energy generation from solar panels and wind, on or adjacent to and new rentals, passive measures must Managing Directors and/or persons responsible ROCKWOOL offices ROCKWOOL's properties. All new builds and major renovations must comply with the most relevant sustainable building rating be used to achieve the highest possible for new build, rental or renovation of offices are policy scheme in the country, aiming for the highest rating.level of energy performance (nearly zero responsible for implementing the policy.energy buildings).In line with the Danish Committee on Corporate Governance, Policy for Safety, Health and Environment (SHE), in section S1, also ROCKWOOLâs Code of Conduct addresses sustainability, including covers environmental aspects like air emissions.climate change. For details, see section G1 on business conduct. Our [E1-3] Actions and resources in relation to climate change policiesIn 2024, ROCKWOOL's actions related to climate change mitigation and adaptation were focused around the following four themes: 1. Compliance with ISO 9001 and ISO 14001 standardsIn addition to internal audits, an external annual verification process is carried out in factories that are certified against the ISO standards; this is in addition to Group Mandatory Minimum Requirements, which set additional standards for environmental and health and safety performance.In 2024, 76 percent of all factories operated in compliance with externally verified ISO 9001 Quality Management and 74 percent in compliance with ISO 14001 Environmental Management Systems (EMS). 2. Energy Attribute Certificates (EACs)ROCKWOOL has purchased Energy Attribute Certificates for the electricity consumption for all factories in Europe for 2024.ROCKWOOL has purchased Energy Attribute Certificates for one of the factories in China for 2023 and 2024. As a result, 2023 renewable energy, GHG emissions and CO Scope 2 numbers have been revised 2accordingly.3. ElectrificationIn 2024, we have successfully converted to electric melting technology in the factory in Switzerland, fuelled by green energy. Moreover, ROCKWOOL has continued efforts to electrify production lines in Romania, the Netherlands, and France. In Romania, we are adding a new electric production line. It is expected that CO2emissions intensity of this factory will be reduced by 40-50 percent in comparison to actual intensity levels, and that effects will be visible in 2029. In the Netherlands and France, it is expected that CO emissions 2(in absolute value) from the electrification of existing production lines in the two stone wool factories will be reduced by more than 50 percent in comparison to actual emissions, and effects will be visible starting 2027.4. Research and developmentInstallation and start-up of a proprietary stone wool electric melter was completed at ROCKWOOL's factory in Switzerland, powered by Swiss hydro power. In addition, we tested innovations to implement new binders with lower emissions. In 2024, we spent 67 MEUR on research and development and secured 224 patents. Metrics and accounting policies[E1-4] Targets related to climate change mitigation and adaptationTargets related to climate change mitigation: î By 2030, reduce by 20 percent CO emissions in Scope 1 and 2 per 2tonne of stone wool produced (2015 as baseline); î By 2034, reduce by 38 percent absolute GHG emissions (COe) in 2Scope 1 and 2 (2019 as baseline); 2 î By 2030, reduce energy consumption (kWh/m) in own office buildings by 75 percent (2015 as baseline).Carbon dioxide (CO), a greenhouse gas, accounts for more than 80 2percent of total GHG emissions. ROCKWOOL's first decarbonisation goal was set in 2016, focusing on reducing CO emissions per tonne 2of stone wool produced. As of end 2024, we have achieved a 23 percent reduction compared to the baseline. Due to ROCKWOOL's decarbonisation efforts, we have therefore achieved the 2030 goal already in 2024. In 2020, ROCKWOOL joined the Science Based Targets initiative (SBTi) and committed to a verified and approved plan aligned with keeping global warming well below 2°C. This plan aims to reduce total GHG emissions in Scope 1 and 2 from stone wool factories by 38 percent by 2034, using 2019 as the baseline. In 2024, absolute Scope 1 and 2 emissions amounted to 1,711 kt COe, equivalent to an 18 percent 2reduction compared to the 2019 baseline (2,082 kt). This is mainly due to continued decarbonisation efforts in 2024. Additionally, we have set a target to reduce energy consumption in own office buildings to showcase opportunities linked to energy savings solutions. At the end of 2024, the progress towards the 2030 goal was stable at 39 percent. Effects of ongoing renovations should be visible in 2025.[E1-5] Energy consumption and mix 20241 Fuel consumption from coal and coal products (MWh) 1,875,2742 Fuel consumption from crude oil and petroleum products (MWh) 5,1073 Fuel consumption from natural gas (MWh) 1,404,6184 Fuel consumption from other fossil sources (MWh) 412,2875 Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) 375,8776 Total fossil energy consumption (MWh) (the sum of line 1-5) 4,073,163Share of fossil sources in total energy consumption (%) 807 Consumption from nuclear sources (MWh) 42,940Share of consumption from nuclear sources in total energy consumption (%) 18 Fuel consumption from renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable 171,814hydrogen) (MWh)9 Consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources (MWh) 794,12410 Consumption of self-generated non-fuel renewable energy (MWh) 2,94511 Total renewable energy consumption (MWh) (the sum of line 8-10) 968,883Share of renewable sources in total energy consumption (%) 19Total energy consumption (MWh) (the sum of lines 6, 7 and 11) 5,084,986ROCKWOOL operates in high climate impact sector and thus disclose energy intensity per net revenue:2024Energy intensity per net revenue1,319Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors (MWh/1 MEUR)ROCKWOOL operates in high climate impact sector and thus disclose GHG intensity per net revenue:GHG intensity per net revenue2024Total GHG emissions (location-based) per net revenue726(tCOe/1 MEUR)2Total GHG emissions (market-based) per net revenue671(tCOe/1 MEUR)2Accounting policiesEnergy consumption is calculated as total energy consumed. Reported energy consumptions per source are based on measured weight or volumes, or by invoices. When net calorific values conversions are needed, the source depends on country-specific regulatory requirements and can be based on laboratory analysis, information from the suppliers, or national databases. If these are not available, a Group average is used. Data for December is estimated based on the actual values from previous 12 months. Energy consumption from fossil fuels is calculated as the total energy consumed from coal and coal products, secondary combustion materials, natural gas, propane, LNG and oils. Consumption of nuclear energy comes from the electricity grid. We are not able to specify the share of nuclear energy per location for all factories. ROCKWOOL therefore applies the assumption that 10 percent of the electricity purchase by factories not purchasing Energy Attribute Certificates, is generated by nuclear energy. This is the approximate share of electricity produced by nuclear energy published in the Int