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Type	Time	Amount	Unit
ifrs-full:Assets	2025-12-31	16303300000	dkk
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Type	Start date	End date	Amount	Unit
ifrs-full:Revenue	2025-01-01	2025-12-31	9035700000	dkk
ifrs-full:Revenue	2024-01-01	2024-12-31	9202100000	dkk

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   <mrv:SustainabilityReport contextRef="ctx-1" id="f0__s8__7__5-1" xml:lang="en">Our businessWe are a global leader in the cigar industry holding market leading positions in handmade and machine-rolled cigars. We are the global leader within pipe tobacco and hold strong positions in select markets in fine-cut tobacco and nicotine pouches.Consumer centricityWe put the consumer at the forefront of our products. Our large and diverse consumer base is one of the reasons we strive to constantly expand and strengthen our portfolio. We value our consumers and understand that trends and tastes evolve and change, which is why we have built agility and adaptability into our business strategy - to consistently be our consumers’ first choice. Consumer insights and our distribution capabilities equip us to explore ways we can further embrace the dynamic consumer environment and develop our presence in ways that will complement our core categories, and meet poly-use consumer needs. We offer products across the entire nicotine journey to create many moments of great enjoyment. Rooted in nature Tobacco farming dates back nearly 8,000 years in the Americas. It is a craft that has lasted centuries and requires a delicate mix of tradition, science and intuition to create the perfect leaf. Many of our consumers hold a deep passion for our products and take an active interest in knowing where the tobacco is cultivated, how it is cured, fermented, blended and aged. From leaf sourcing to consumer, we strive to uphold this enduring artform to produce high quality products.Global presenceWe employ approximately 8,800 people globally, have more than 20 sales offices in North America and Europe, and sell to more than 100 countries around the world. In the U.S., we are the owner of the largest portfolio of handmade cigar brands, and have a market leading position in the business-to-consumer segment via our unmatched distribution network including our strong online and growing retail presence. In machine-rolled cigars we have market leading positions in several European countries and hold solid positions in nicotine pouches in select markets across Europe. We are proud to be the undisputed global leader in pipe tobacco.We have financial strength, expertise and flexibility to act quickly on strategic opportunities that will grow our business and strengthen the product portfolio we offer consumers. We have a robust history in optimising value through integrations and transformations, and our many years of experience have allowed us to navigate an industry with increasing regulation and changing consumer behaviours.Our productshandmadecigarsMachine-rolledcigarssmoking tobacconicotine pouchesHandmade cigarsOur productOur handmade cigars are individually crafted at sites in three of the world’s most significant tobacco-growing countries: the Dominican Republic, Honduras and Nicaragua. Together with our partners on the ground in these locations, we meticulously care for the tobacco throughout its entire journey. Innovation continues to be a strong component of the handmade cigar market. New product launches, high quality tobacco and limited editions drive consumer interest. Our consumersThe handmade cigar consumer seeks a high quality, luxurious smoking experience. Handmade cigars give the consumer a moment of enjoyment lasting an extended period of time and we understand this consumer tends to look for distinguishing characteristics, with optionality across price points. For this reason, our brand portfolio covers the breadth of the handmade cigar market. U.S. consumers and our broad range of brandsmachine-rolledcigarsOur productWhilst machine-rolled cigars mimic the handmade process, a more diverse range of products is created by using smaller pieces of tobacco to deliver high quality cigars at more affordable prices. The binder and wrapper, of which both play a critical role in the formation of a cigar, are produced in Indonesia, Sri Lanka and the Dominican Republic, with the cigar production taking place in Belgium, Indonesia and the Dominican Republic. Machine-rolled cigars are characterised by having a natural tobacco wrapper and can be divided into two subcategories: Short filler cigars and little cigars. Short filler cigars are more than three grams per stick in weight. Short filler cigars can be categorised into bigger cigars in format, without filter or added flavour and cigarillos, which are smaller in size and come with or without flavour and/or filter.We have strong offerings across all price segments of the market (value-for-money through to super-premium) ensuring competitiveness. Our consumersThe machine-rolled cigar consumer is typically a mature, former cigarette smoker or poly-use consumer, with a range of different interests and personalities. Machine-rolled cigars provide a different, shorter and more cost-effective alternative for those wishing to enjoy the cigar experience. These consumers tend to remain loyal to their preferred brand, which requires our factories to maintain high-quality affordable cigars consistently. smoking tobaccoOur productSmoking tobacco comprises pipe tobacco and fine-cut tobacco. We are the largest global manufacturer of traditional pipe tobacco which is produced to the highest standards at our sites in Assens and Svendborg, Denmark. Our fine-cut tobacco is manufactured at our sites in Holstebro and Svendborg, Denmark. In fine-cut, our roll-your-own and make-your-own portfolio is positioned to address the main price segments from value for money, all the way up to premium.Pipe tobacco is a unique category with loyal consumers that are looking for carefully treated and blended tobaccos, with flavour nuances not available in other tobacco products, fromaromatic U.S. blends to the more “English” blends with natural tobaccos. With the acquisition of Mac Baren, we have an even stronger position in this category. Innovation has played a key part in the ongoing strategy to streamline choices for our consumers, optimise shelf layout as well as the ability to build upon our existing premium brands.Our consumersOur pipe and fine-cut tobacco consumers are more traditional in their rituals and in most cases, smoke frequently. These consumers show similar traits to our machine-rolled cigar consumer - remaining loyal to their preferred brand, demanding consistency, quality and market availability. nicotine pouchesOur productNicotine consumption is drastically changing from being dominated by combustible tobacco products like cigarettes and cigars, to increasingly include Next Generation Products (NGPs). Today, almost one third of adult nicotine users are using NGPs with the share of consumers within poly-use increasing as well. Nicotine pouches are the fastest growing subcategory within NGPs with annual growth of mid double-digit rates expected to continue in the years to come. Our nicotine pouches are produced in our own factory in Svendborg, Denmark, and by third-party manufacturers in Sweden and Poland, with close proximity to our largest active consumer bases in Sweden, Denmark and the UK.Our consumersNicotine pouch consumers fall into two main categories: those seeking alternatives to smoking and poly-use consumers who enjoy different products across the nicotine journey. The first type of consumer tends to show similar characteristics to machine-rolled cigars and fine-cut tobacco (frequent use, value priced products) and the poly-user follows a ritualistic approach, seeking distinguishing characteristics and flavour nuances that cannot be found elsewhere. ESRS disclosure SBM-1 and GOV-4 incorporated by reference in Our business section.Heritage &amp; TransformationScandinavian Tobacco Group boasts a long history of expanding through mergers and acquisitions. The history of the Group dates back 275 years with the foundation of the Danish tobacco companies Chr. Augustinus Fabrikker (1750), C.W Obel (1787) and R. Færchs Fabrikker (1869). The three companies merged in 1961 and established Skandinavisk Tobakskompagni A/S.Net sales in 2009 were DKK 2.4 billion when the Group’s business was focused on the tobacco categories of cigars, pipe tobacco and fine-cut tobacco. In 2010, Scandinavian Tobacco Group merged with the cigar and pipe tobacco business of Swedish Match and established the foundation for the Group’s existing market-leading positions within cigars and smoking tobacco. In the years after the new structure was established, the Group enforced its global market position with multiple acquisitions. Since the public listing in 2016, growth has continued, and net sales reached more than DKK 9 billion for the first time in 2024. The growth has been achieved by a combination of organic net sales growth and multiple acquisitions, creating a solid foundation of our vision to become the undisputed and sustainable global leader in cigars. The acquisitions we have made over the past five years have contributed to our market leading positions in our core product categories; which has created value for our shareholders, reflected in improving profit margins, delivering stronger cash-flows and improving return on invested capital. Reducing complexity and creating value through our expansion have been supported by several optimisation and efficiency programmes, which have all contributed to a protection of profit margins, cash-flows and return on invested capital. As we move ahead into our next five-year strategy period, disciplined investments and potential divestments will be included in our transformation journey as we continue to work toward our vision. A detailed summary of the financial performance over recent years is available in Financial Ambitions &amp; Achievements on page 35. Our business structureOur product categoriesHandmade cigarsIncludes sales of handmade cigars, both business-to-business and direct-to-consumers through our online and retail distribution channels and international sales (outside the U.S.).35%of Group Net Salesmachine-rolled cigars &amp; smoking tobaccoIncludes global sales of machine-rolled cigars, pipe tobacco and fine-cut tobacco. 50%of Group Net Salesnext generation productsPrimarily includes sales of own nicotine pouches. 5%of Group Net SalesOtherIncludes sales of accessories, contract manufacturing and bar sales.10%of Group Net SalesOur reporting divisionsEurope brandedEUB comprises the sale of all product categories to wholesalers, distributors and direct to retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, the UK and Ireland. 36%of Group Net SalesRead moreNorth America Branded &amp; Rest of WorldNABROW comprises the sale of all product categories to wholesalers and distributors that supply retail in North America (U.S. and Canada) and Rest of World which includes Australia, Middle East, Africa, South America, Asia, European markets, where we do not have own sales organisations, Global Travel Retail and Contract Manufacturing &amp; Accessories (CMA). 33%of Group Net SalesRead moreNorth America Online &amp; RetailNAOR comprises the direct-to-consumer sales of all product categories sold via online, retail stores and contact centres in North America. NAOR distributes brands from the Group’s own branded business, as well as brands from other major brand owners in the U.S. market, reinforcing the strong distribution capabilities.31%of Group Net SalesRead moreOur Value chainUpstreamTobacco leaf ranging from small farmers to multinational wholesalersTobacco products and accessoriesNon-tobacco materials, including packaging, filters, flavours and other ingredientsTransportationOwn operationsProductionAdministrationSales &amp; DistributionSuperstoresB2B / RetailOnlineLogisticsDownstreamHandmade CigarsMachine-Rolled Cigars&amp; Smoking TobaccoNicotine PouchesMapping of material topics along value chainE1 Climate changeE4 BiodiversityE5 Ressource use and circular economy S2 Workers in the value chainS1 Own workforceS4 Consumers and end usersG1 Business conductESRS disclosure SBM-1 incorporated by reference in Our Value chain section.Global workforce &amp; ProductionManufacturing sitesHandmade cigarsMachine-rolled cigars – making, finishing and packagingMachine-rolled wrappers and bindersSmoking tobaccoNicotine pouchesNumber of employees0 - 200200 - 1000&gt; 1000AmericasNet Sales4.5 DKK bnHondurasNicaraguaDominican RepublicEuropeNet Sales3.9 DKK bnDenmarkBelgiumItalyRest of worldNet Sales0.6 DKK bnSri LankaIndonesiaDuring the past five years, we have edged closer to our vision to be theundisputed and sustainable global leader in cigars. We have grown the company through several acquisitions that have strengthened our portfolio and reinforced our position as market leader in the U.S. for handmade cigars. We have maintained our position as the largest manufacturer of machine-rolled cigars in Europe, and we have significantly progressed our rapidly growing nicotine pouch business. Reflections from Rolling Towards 2025 In 2022, the Group’s vision was updated to emphasise the importance of and our increased efforts in sustainability, and we are proud of the progress that has been made. Our digitalisation and simplification journey became a high priority with the decision of our global ERP solution roll-out, which is a significant change to our systems and ways of working. This enables us to be more process driven, globalised and drive cost efficiencies, allowing us to scale the business for the future. An important part of our previous strategy was to identify new paths to growth, which will continue to be crucial parts of the next strategy period. Delivering attractive shareholder returns has been and continues to be an essential part of our ambitions. In the last five years alone, we have returned almost DKK 6 billion to shareholders in the form of dividends and share buybacks.In parallel to these successes, we also faced challenges which affected our ability to deliver parts of the previous strategy. External factors, difficult market conditions and rising costs impacted our business, at the same time, internal operational errors and supply chain issues destabilised our machine-rolled cigar business, affecting market share, volumes and profitability. Consequently, the financial performance fell short of our ambitions, affecting investor sentiment and the share price performance. Our strategy towards 2030 We have strong brands within our core business and will focus on these across selected key markets. Our consumer insights and the achievements and challenges throughout the previous strategy period have played a critical part in designing the next strategy. Prioritisation, consumer-centricity and simplification will play a key part in the strategy on the backdrop of declining cigar markets. We expect a low single digit decline rate for handmade cigars in the U.S. and a decline rate of 2-3% for machine-rolled cigars. We will invest in opportunities where we have the right to win, and continue to invest in people, data, digitalisation and business analytics to support our ambitions. Ultimately, we will sharpen our focus and raise execution. Focus2030 constitutes the next step in delivering on our purpose tocraft the rituals that make us moreand to move towards our vision to be theundisputed and sustainable global leader in cigars.Focus2030 centers on three strategic priorities:Stabilise machine-rolled cigarsGrow handmade cigarsAccelerate nicotine pouch businessCreating a sustainable and stable machine-rolled cigar business will be rooted in protecting profits and cash flows from the category. Growing our handmade cigar business will primarily be driven by the important U.S. business but will be supported by a stronger international footprint. Building a larger nicotine pouch business with an upside potential contains an appealing opportunity, but will require a disciplined approach to investments and growth opportunities to support our overall group financial ambitions for 2030. Sustainability continues to be an important enabler in our strategy, which is reflected in our ongoing work on environment, social and governance, and is embedded into the way we work. The success of achieving the ambitions set out in Focus2030 depends on our ability to deliver on the three strategic priorities as well as our ability to deliver on our financial ambitions for the next five years.Focus2030 is about sharpening our focus and doing fewer things with better execution. Our ambition is to turn around our declining earnings trend in recent years and build a more sustainable business for the future, creating value for our shareholders, consumers and employees. By 2030, we aim to be a more attractive business, consisting:A growing and increasingly attractive handmade cigar business anchored in the U.S. is supplemented by international growth and expansion A stable and sustainable machine-rolled cigar and smoking tobacco business as our foundationA larger nicotine pouch business with further upside in an attractive categoryOur six enablers are the foundations that will help us deliver on the overall strategy and achieve our goals. These enablers include consumer and customer centricity, sustainability, data and digitalisation, people engagement, process and execution excellence and performance culture. Each enabler supports the others, creating a strong, integrated approach to execution. Our values and behaviours define our culture, and serve as a compass guiding our company toward our objectives. ESRS disclosure SBM-1 and GOV-4 incorporated by reference in Our business section.ESRS Disclosure requirementsESRS 2 General DisclosuresBP-1Basis of preparation85BP-2Specific disclosures85GOV-1Supervisory bodies55-56GOV-2Information addressed by supervisory bodies61GOV-3Incentive schemes57GOV-4Statement on Due diligence55GOV-4Embedding Due diligence in governance,strategy, and business model*56-57GOV-4Engaging with affected stakeholders in all key steps of the Due diligence 58GOV-4Identifying and assessing adverse impacts59-61GOV-4Taking actions to address those adverse impacts62-83GOV-4Tracking the effectiveness of these efforts62-83GOV-5Risk management and internal controls**85SBM-1Strategy (in Strategy section)*17-18SBM-1Business model (in Our Business section)*10-13SBM-1Value chain (in Our value chain section)*14-15SBM-2Interests and view of stakeholders61SBM-3Material IROs interaction with strategy and business model61-83IRO-1Double Materiality Assessment59-61IRO-2ESRS Disclosure Requirements55Other EU regulation**101-102E1 – Climate changeIRO-1Impacts, Risks and Opportunities63SBM-3Strategy and business model interaction63E1-1Transition plan65E1-2Policies 66E1-3Actions and resources66E1-4Targets65, 68E1-5Energy consumption and mix**93E1-6Gross Scopes 1, 2, 3 and Total GHG emissions**90-92EU TaxonomyTurnover, CAPEX and OPEX**86-89E2 – Pollution (not material)***E3 – Water and marine resources (not material)***E4 – Biodiversity and ecosystems (use of phase-in)IRO-1Impacts, Risks and Opportunities69SBM-3Strategy and business model interaction69E4-1Transition plan-E4-2Policies69E4-3Actions and resources69E4-4Targets69E4-5Impact metrics69E5 - Resource use and circular economyIRO-1Impacts, Risks and Opportunities70E5-1Policies 71E5-2Actions and resources71E5-3Targets71E5-4Resource inflows**94E5-5Resource outflows**94EnvironmentSocialS1 – Own workforceIRO-1Impacts, Risks and Opportunities73SBM-3Strategy and business model interaction73S1-1Policies74-75S1-2Engagement process73S1-3Remediation process and channels to raise concerns73S1-4Actions and resources74-75S1-5Targets74-75S1-6Employee characteristics**96-97S1-9Diversity metrics**98S1-17Incidents, complaints and severe human rights impacts**100S2 – Workers in the value chainIRO-1Impacts, Risks and Opportunities76SBM-3Strategy and business model interaction76S2-1Policies77S2-2Engagement process77S2-3Remediation process and channels to raise concerns77S2-4Actions and resources78S2-5Targets78S3 – Affected communities (not material)***S4 – Consumers and end-usersIRO-1Impacts, Risks and Opportunities79SBM-3Strategy and business model interaction79S4-1Policies80S4-2Engagement process80S4-3Remediation process and channels to raise concerns80S4-4Actions and resources80S4-5Targets80GovernanceG1 – Business conductIRO-1Impacts, Risks and Opportunities82G1-1Corporate culture and business conduct policies82-83G1-3Prevention and detection of corruption and bribery**100G1-4Incidents of corruption or bribery**100Additional note* Incorporated by reference in the management review section within page 1-53.** Incorporated in the data section of the sustainability statement within page 84-102.*** Deemed not material during the Double Materiality Assessment process described in page 59-60. This includes:Environment: waste (Resource use and circular economy), only land use change is material (Biodiversity and ecosystems). GHG removals and internal carbon pricing are not relevant (Climate change).Social and Governance: collective bargaining, adequate wages, social protection, disability, health and safety, work-life balance, remuneration metrics, supplier relationships, political influence and lobbying, payment practices.Certain disclosures have been prepared with reference to other reporting standards, including Sections 107d and 107f of the Danish Financial Statements Act.Phase-inThe phase-in data points includes non-employee characteristics, training and skills development, anticipated financial effects, and part of Biodiversity and ecosystems disclosures.oversight and supervisory bodiesScandinavian Tobacco Group A/S has a two-tier management structure consisting of the Board of Directors (BoD) and the Executive Management. The BoD is responsible for the overall strategic direction and supervises the activities, management and organisation of the Group. The Executive Management, meaning the registered management consisting of the CEO and CFO, is responsible for the day-to-day management. The day-to-day business operations of the company are managed by a larger group, the Executive Board. The BoD oversees that the Executive Management performs its duties in an appropriate manner and in accordance with the directions of the Board of Directors. The BoD responsibility, among other things, also includes ensuring that the Group has an appropriate organisational structure and efficient business processes. The business conduct of STG is governed in accordance with these governance principles. The Board of Directors' and Executive Management's day-to-day oversight of policies, training and related matters is handled by specialised departments, such as Legal and People &amp; Culture, whose expertise ensures alignment with best practices.STG manages material topics through the sustainability agenda – Rolling Responsibly. Led by the Sustainability Centre of Excellence (CoE), STG is maturing to manage at Impact, Risk and Opportunity (IRO) level. Our approach and procedures are disclosed across each chapter in relation to policies, actions and targets. The Board of Directors and Executive Management constitute the bodies of the two tier management systemBoard of directorsOversees the sustainability agenda, approves policy and targets, and is ultimately responsible for the material impacts, risks and opportunities oversight. The material list of IROs can be found on page 61. The Board also approves executive incentive schemes linked to sustainability performance. An overview of the members of the Board of Directors can be found on page 45. EXECUTIVE MANAGEMENT AND EXECUTIVE BOARDDirects the sustainability agenda, allocates resources and validates the outcome of the Double Materiality Assessment. The CEO and Head of Sustainability report progress; the CFO ensures data integrity.An overview of the members of the Executive Management and Executive Board can be found on page 49.Audit CommitteeReports to the Board of Directors; assesses reporting processes for transparency and compliance. Through dialogue with the CFO, Corporate Finance and Sustainability CoE, the Audit Committee broadens its understanding of processes built into control mechanisms and procedures to monitor, manage and oversee ESG data, and the outcomes of the Double Materiality Assessment. Sustainability Execution GroupComposed of senior leaders and implementation partners. Oversees prioritisation, resource allocation and progress tracking. Facilitated by the Sustainability CoE. Head of Sustainability / Centre of ExcellenceLeads the sustainability agenda, embeds initiatives, sets targets and reports to governance bodies. Builds internal ESG capabilities. Topic OwnersOverall accountable for delivering the mate-rial topics under their supervision, covering strategy, policy, targets and reporting data. Also, ensuring that policy development and target proposals are informed by input from internal and external stakeholders.Sustainability expertiseThe Board of Directors as well as the Executive Management bring extensive leadership experience from international businesses, including in governance, ethics and compliance; core elements of responsible business conduct. Collectively, they offer deep industry knowledge and broad experience from senior roles, both executive and non-executive, in major international corporations operating across the U.S., Europe and other key markets.The Sustainability CoE, together with the different workstreams, represent the sustainability-related experience and skills across a range of material topics in the Group. To cover gaps in the organisation, the group assesses knowledge through subject matter experts (SMEs) from the consultancy sector or other relevant organisations, and thus develops key competencies internally with external support. Training and reinforcement in new skills and knowledge is deemed part of the way STG is embedding ESG considerations into the processes, including in Operations, Procurement and Commercial.Incentive schemesSustainability metrics are integrated into STG’s remuneration framework through the Long-Term Incentive Plan (LTIP) for 2025–2027, which includes a climate component designed to support progress on decarbonisation objectives. 10% of the LTIP is linked to reducing carbon emissions across Scope 1, 2 and 3, with annual targets expressed in tonnes of CO₂e reduced and verified against over- or under- performance compared to prior-year results. These targets are aligned with STG’s near-term Science-Based Targets initiative (SBTi) commitments for 2030. Performance is assessed against specific CO₂e reduction KPIs, with payout levels indexed to achievement.For more information refer to Remuneration Policy section and the Remuneration Report available at st-group.com.INTEREST AND VIEWS OF KEY-STAKEHOLDERS Engagement with stakeholders occurs across different communication channels, including meetings, surveys, online and in other forums, to fit business needs across STG’s activities. Engagement is key to enhance trust and align with ethical business practices and contributes to long-term stability. An overview of how the Group interacts with the various key stakeholder groups across its value chain and business model is shown on this page. During each iteration, information is aggregated and communicated to supervisors. If deemed necessary, it is escalated to management, who then decide based on the proposals put forward, on the necessary course of action or required steps to adapt the business model or strategy. Stakeholder views are channelled through SMEs into the Double Materiality Assessment, where they rate, confirm material topics, and guide updates to policies and targets.Stakeholder GroupStakeholder relationshipEngagement channelsS1Own workforce Seek job satisfaction, fair compensation and growth Desire a collaborative and ethical culture with transparent communication Value supportive leadership, purpose and opportunities Local communities at manufacturing sites are essential stakeholders regarding operations, production, environment and social responsibility Regular face-to-face/online meetingsEmployee surveysWorkshopsFeedback roundsOpen dialogueWorks council/unionsS2Workers in the value chain(including Leaf suppliers) Crucial for primary raw material (tobacco leaf) Impact operations, environment and social responsibility Seek lasting impact through partnerships Workers seek secure employment, fair wages, satisfactory living conditions and access to health and education Supplier engagement through online meetings and visitsIndirect engagement with farmers via associations/initiatives through the Sustainable Tobacco ProgramS4 Consumers and end-usersEssential stakeholders; create demand for products Seek satisfaction, enjoyment, high quality and fair prices Limited opportunities to communicate due to tobacco industry being highly regulated (with regulators setting legal and regulatory standards, and communicating only when requested and allowed) and STG’s adherence to its Marketing Principles. Investors / shareholdersHigh influence on Group value and overall market performance Some are concerned about ESG impacts, risks and opportunities, so addressing these safeguards value Proactive communication across channels on company strategy and performanceDouble materiality assessmentScandinavian Tobacco Group reviewed its Double Materiality Assessment (DMA) to identify material Impacts, Risks and Opportunities (IROs) across all European Sustainability Reporting Standards (ESRS) topics. Led by the Sustainability CoE, with oversight from the Executive Board, Audit Committee and the Board of Directors. Business model and stakeholders A stakeholder mapping process was done to identify groups and individuals in STG, and external experts who could provide input during the assessment. Internal stakeholders, including workstream leads, topic owners and SMEs from various departments such as Finance, Operations, Procurement, including the Leaf buying department, Legal, P&amp;C, among others, participated in workshops, contributing insights to ensure a comprehensive evaluation. External stakeholders perspectives have been included indirectly through SMEs from consulting companies and topical experts in the ESG domains. Previous assessments, which included stakeholders like suppliers, customers, local communities, authorities and experts, were also considered. STG did not engage directly with affected stakeholders due to reliance on expert input and prior assessments. The Group also reviewed its structure, geography and business activities to identify concentrated areas of IROs within the Group’s value chain (operations, downstream and upstream). The process considered the opinions of the SMEs representing key functional areas, gathering input across meetings, workshops and online channels, to align on ratings and scoring. The assessment relies on expert judgment and internal consensus scoring, which may introduce subjectivity. Review process overview The DMA followed four phases: Interpretation, Identification, Assessment and Application. It was based on an internal methodology, supported by external consultancy, and aligned with ESRS guidance. 1) Interpretation of the ESRSA high-level view of what topics and sub-topics within the ESRS matter to the tobacco industry and to the Group in connection with STG’s business model and value chain. All ESRS topics and subtopics were considered. 2) Identifying Impacts, Risks and Opportunities Impacts, Risks and Opportunities were identified for potential materiality across all ESRS topics and sub-topics. 3) Impact and Financial assessments The Impacts, Risks and Opportunities were assessed to determine materiality. the four phases of our DMA processImpact assessment– Evaluating the severity of STG’s effect on the environment and people consists of three factors;scale - meaning the magnitude of the impact it could havescope - where and how it would affectirremediability - how easily STG could fix itAll are measured from 1 to 5 against impact and likelihood:Impact - 1 indicating minimal impact, immediate surroundings, or very easy to remedy and 5 indicating large-scale impact, global level or irremediable. Likelihood - 1 (rare, &lt;2.5%) to 5 (actual, 100%), based on frequency estimates. From the human rights perspective, materiality of “actual” and “potential” impacts is based on the severity of the impact. As for “potential” negative impacts (non-human rights related), they are based on the severity and likelihood of the impact. If scored 3.01 or above, it was deemed material. Financial assessment– The financial assessment was scored using the size of the financial effect, based on the threshold and likelihood scoring aligned to STG’s internal Enterprise Risk Management (ERM). During the review in 2025, the scoring was updated to further align with the ERM. It was set for the size of the potential financial impact, at 5% EBT (or approximately 70m DKK), and scores ranging from 1 to 5. The higher the financial effect of the risk or opportunity is in relation to the threshold, the higher the score will be. Likelihood ranges from &lt;5% is equal to 1 (rare, expected in exceptional circumstances) to &gt;50% is equal to 5 (possible, event may occur). Sub-topics were deemed material if the respective IROs scored 3.01 or above in either of the assessments. The threshold of 3.01 was set after external consultation and internal discussions to prioritize STG’s materiality, both for the impact and financial assessment. The assessment is based on expert judgment and consensus scoring, supported by available data and value chain insights. 4) Application of results Findings and results were reviewed by all participants, SMEs, topic owners and the Executive Board, to refine the outcome and ensure a thorough process was followed. The results were validated as relevant to STG and presented to the Audit Committee, the Board of Directors and the Executive Board. DMA results Seven topics across Environment, Social and Governance were identified as material. Biodiversity impacts associated with the agricultural sector and consumer health risks were materialised during the review, while the financial implications of child and forced labour were re-assessed as immaterial. For E2 – Pollution and E3 – Water &amp; marine resources, STG screened its operations, including its assets, and value chain for actual and potential IROs in line with the DMA process, and no material IROs were identified. S3 – Affected communities was likewise assessed as non-material and excluded from detailed disclosure. The financial materiality outcomes of the DMA were considered and are part of the Group’s ERM process.The DMA is reviewed annually, with more in-depth analysis undertaken when significant strategic changes or new insights arise.* SeverityDouble materiality assesmentMATERIAL IMPACTS,RISKS AND OPPORTUNITIESThe Group’s business impacts were categorised as negative, as they do not directly contribute to societal benefits; therefore, actions are geared towards minimising and mitigating STG’s overall footprint. The Group defines short-term as events ocurring by the end of the reporting period, medium-term within the next five years, and long-term as beyond five years, unless specified otherwise. The Group has not identified any current material financial implications from its IROs, and the assessment of anticipated material financial effects is not yet complete. No significant resources (CAPEX/OPEX) were used during the reporting year.Policy / TargetIn placePartial coverageNot in placePerformanceOn trackImprovement neededOff trackNot trackingImpactsTopicPolicyTargetPerformanceSub-topicValue ChainClassification Time horizonIROs, Approach + Policy, Action and TargetsE1 Climate changeClimate change adaptationUpstream ActualAllPage 63-68Climate change mitigationAcrossActualAllPage 63-68EnergyAcrossActualAllPage 63-68E4 Biodiversity and ecosystemsDirect impact drivers of biodiversity loss - Land-use changeUpstreamActual &amp; PotentialAllPage 69E5 Resource use and circular economy Resource inflows, including resource use AcrossActualAllPage 70-71Resource outflows related to products and servicesAcrossActualAllPage 70-71S1 Own workforceEqual treatment and opportunities for all - Training and skills development Own operationsActualAllPage 73-75Equal treatment and opportunities for all - Measures against violence and harassment in the workplaceOwn operationsActualAllPage 73-75S2 Workers in the value chain Working conditions - Working time, Adequate wages, Work-life balance, Health and safety UpstreamActual &amp; PotentialAllPage 76-78Other work-related rights – Child labour, forced labour UpstreamActual &amp; PotentialAllPage 76-78S4 Consumers and end usersPersonal safety of consumers and/or end-users - Health and safety DownstreamActualAllPage 79-80Personal safety of consumers and/or end-users - Protection of children DownstreamActualAllPage 79-80Personal safety of consumers and/or end-users - Protection of childrenOwn operationsPotentialAllPage 79-80G1 Business Conduct Corruption and bribery - IncidentsOwn operationsPotentialAllPage 82-83Protection of whistleblowersOwn operationsPotentialAllPage 82-83RisksS4 Consumers and end usersPersonal safety of consumers and/or end-users - Health and safety Downstream n/aLong-termPage 42, 79Non-material topics are disclosed on page 55 and 60. E1 Climate changeMaterial impacts, risks and opportunitiesNegative impactsClimate change adaptation - Without proper measures for adaptation to climate change, there are physical risks of adverse environmental effects on the tobacco growers and their farms, such as heatwaves, floods and tropical storms, leading to loss of harvest, damage of infrastructure and injuries. UpstreamClimate change mitigation - We are directly contributing to climate change through greenhouse gas (GHG) emissions from STG’s own operations and manufacturing, as well as indirect emissions from different parts of the value chain, including suppliers and contractors. Across the value chainEnergy - STG is contributing to the depletion of energy resources through the intensive use of energy within manufacturing and distribution of our products. Across the value chainClimate risk scenario analysisIn 2024, STG conducted a climate scenario analysis aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) principles to assess physical and transition risks across STG’s operations and value chain.MethodologyAssessment approachHybrid scoring approach, which combined quantitative and qualitative metrics, such as scientific indicators and forecasts, business development modelling, and expert inputs.Risks were rated based on projected magnitude and relevance to STG’s business model on country/region and global level, using geospatial data for own sites and key sourcing regions.Climate scenarios usedSustainable development scenario (1.5–2°C) – low emissions and sustainable socioeconomic growth1Fossil fuel-driven development scenario (3.3–5.7°C) – high emissions and rapid economic growth powered by fossil-fuel development2Time horizonsNear-term: 2030Medium-term: 2040Long-term: 2050Risk identifiedPhysical RisksChronic Hazards: Changing temperature, precipitation changes, water stress, soil degradation.Acute Hazards: Extreme heat, floods, droughts, storms/cyclones/hurricanes.Physical risks are more pronounced under the high-emissions scenario and relate to impacts of extreme weather events and to a lower extent, change in precipitation and water stress. Tobacco sourcing regions have higher exposure to physical risks compared to own operations.Transition risksCarbon pricing, energy price change, regulation &amp; reporting, cost &amp; access to capital, cost &amp; coverage of insurance and consumer concerns. Transition risks are more notable in relation to cost &amp; access to capital, cost &amp; coverage of insurance and consumer concerns. Severity of transition risks are higher under Sustainable development scenario.Scoring and assumptionsThe final scoring has been calculated as an average of the risk ratings across the tobacco value chain and locations within own operations.Scenario risk ratings reflect TCFD analytical outputs and do not determine ESRS materiality. Climate related risks and opportunities are considered material only where they show a medium or high final score under at least one climate scenario and time horizon and are also assessed as material in the DMA. In 2025, this condition was not met.Climate scenario assumptions are not yet reflected in financial statements.No climate-related opportunities were identified as material or compatible with the current business strategy.1 Physical risks IPCC SSP1-2.6 (RCP 2.6); transition risks IEA Net-zero Emissions by 2050 scenario, and relevant projections have been used2 Physical risks IPCC SSP5 RCP8.5 (RCP 8.5); transition risks IEA STEPS (Stated Policies scenario), and relevant projections have been usedTackling emissions from cooling systemsSTG launched the refrigerants initiative to reduce emissions from cooling systems across global sites. The program focuses on replacing high-impact refrigerants with lower-emission alternatives and improving maintenance practices to prevent leaks and inefficiencies. This initiative helped STG reduce refrigerant-related emissions by 863 tonnes CO₂e, which represent 42% contribution to the Scope 1 &amp; 2 yearly targets.863tCO2erefrigerant-related emissions reduced42%of the yearly reduction target for Scope 1 &amp; 2 is related to refrigerantsResultsRiskRisk descriptionSustainable development scenarioFossil fuel-driven development scenario203020402050203020402050Risks associated with physical impacts of climate changeChronic weather(aggregated risk)Temperature and precipitation changes, higher water stress and soil degradation can lower tobacco yields, and negatively impact workforce health, safety and productivity.Acute weather(aggregated risk)More frequent and severe extreme weather events can disrupt the tobacco supply chain, damage production capacity, increase costs, reduce quality and hinder meeting customer demand.Risks associated with transition to low carbon economyCost &amp; access to capitalRising ESG concerns from investors can increase costs, reduce capital access and limit STG’s market performance.Cost &amp; coverage of insuranceClimate change can increase costs due to contracting insurance markets, higher premiums and reduced coverage.Consumer concernsFailing to meet consumer demand for sustainable products can harm reputation and reduce revenue.ConclusionChronic weather risks may decrease tobacco quality and yield globally. Acute weather risks, already observed in regions like Brazil and Indonesia, damage crops and affect yields and prices. Significant impacts are also seen in operations in South Asia, the Caribbean and Central America due to cyclones, floods and extreme temperatures. The tobacco supply chain is more exposed to physical risks than own operations. Based on the high-level screening of STG assets and business activities, STG confirms that all assets and activities are compatible with a transition to a climate neutral economy. In the span of STG emissions reduction targets timeline, most elements of the value chain, current assets and strategic developments (retail expansion, further Low risk - Score ≤3. Low severity or relevance; impacts expected to be minor and manageable.Medium risk - Score &gt;3–6. Moderate potential impacts; requires monitoring and integration into planning.High risk - Score &gt;6. Potentially disruptive impacts; requires strategic mitigation.development of nicotine pouches) have opportunities to support the transition provided its given prioritisation and investment in implementation of targeted initiatives.Resilience assessmentSTG’s diversified sourcing, operational footprint and decarbonisation roadmap support medium-to-strong resilience across all material risks. No high-risk ratings were identified under current projections. The Group strives to address climate change but acknowledges the uncertainty of the actual climate scenario development and complexity of the adaptation, and mitigation.Our ApproachSTG has advanced its low-carbon transition plan, developing a comprehensive emissions reductions roadmap across all scopes. The roadmap follows the Science-Based Targets initiative (SBTi) approved trajectory and outlines strategic decarbonisation levers alongside immediate actions to deliver on the near-term targets. The plan is compatible with the limiting of global warming to 1.5°C in line with the Paris Agreement and is approved by the Sustainability Execution Group, Executive Board and the Board of Directors.The transition plan is aligned with the Group’s current strategy and business model. It aims to build efficient operations to support lower carbon business development, as well as to reduce the impact on the value chain, through both product and process improvements, and by collaborating with suppliers on joint decarbonisation efforts.STG has initiated an analysis of the investments required to implement the transition plan. This work will continue over the coming years, as the emissions reductions roadmap becomes further integrated into the operational, commercial and financial planning processes.No material stranded-asset risks were identified, though STG acknowledges uncertainty and will continue monitoring. STG is focusing on detailed abatement plans to achieve absolute emissions reductions across all scopes, aiming for near and long-term science-based targets. While a concrete plan for neutralising unabated emissions is still to be developed, STG follows GHG Protocol guidelines and SBTi requirements. To reach net-zero by 2050, STG aims for a 72% reduction in emissions related to Forest, Land and Agriculture (FLAG), 90% reduction in absolute emissions for non-FLAG emissions, and then use high quality offsets for the remaining unabated emissions. GHG removals, carbon credits and carbon pricing were not used in the reporting period. Future emissions reductions are subject to a certain degree of uncertainty due to evolving global circumstances and developments. STG is excluded from EU Paris-aligned Benchmarks.Reported emissions reductions and annual reduction requirements have been recalculated to reflect the updated baseline and targets, incorporating Mac Baren data and methodological improvements.STG’s emission reduction trajectory (recalculated)Thousand tCO₂e350300250200100150100500Scope 1 &amp; 2Scope 3 FLAGScope 3 non-FLAG20202020-2023Built carbon baselines for Scope 1, 2 and 3Embedded climate action into sustainability agendaYearly emissions reductions40202117911234202220232024SBTi approval of STG’s science-based targetsFirst time reporting Scope 3 emissions163942920241021252520252025Baselinerecalculation and revalidation of targets by SBTiSignificant progress in all scopes’ emissions reductions achieved25.0%Scope 3 non-FLAG GHG emissions30.3%Scope 3 FLAG GHG emissions42.4%Scope 1&amp;2 GHG emissions20302030Near-termscience-based targetsnet zeroOffsetting remaining unabated emissions90.0%Scope 3 non-FLAG GHG emissions72.0%Scope 3 FLAG GHG emissionsScope 1&amp;2 GHG emissions90.0%20502050Long-term science-based targetsClimate Change Adaptation, mitigation and energyPolicySTG’s Environmental Actions and Commitments Policy outlines its commitment to reducing Scope 1, 2 and 3 GHG emissions, in line with near-term and long-term science-based targets. This also means increasing the share of renewable energy use and more efficient energy management. Assessing material impacts and risks in its operations and value chain, STG is setting strategies and actions to improve its environmental performance and contribute to own operations’ adaptation to climate change. The most senior level accountable for implementation is the Group’s Chief Supply Chain Officer and the Head of Sustainability.ActionsTo progress on the decarbonisation pathway, STG has identified all sources of emissions within Scope 1, 2 and 3, and has implemented a cross functional process for assessing, selecting and prioritising initiatives aimed at GHG emissions reductions. This requires global execution and supplier collaboration. Scope 1 &amp; 2Renewable electricity: Transitioned to renewable electricity from the grid and installed solar panels at several production sites.Equipment and refrigerants: Improved efficiency by replacing outdated equipment to avoid leakages and use modern refrigerants. Additionally, shifted to LED lighting, used inverters to optimise the power conversion process and conducted energy audits.Fuel switch: Implemented a fleet transition plan from diesel to petrol and electric vehicles.Network optimisation:STG will enhance operational efficiency and continue to implement initiatives if, and when, STG optimises the factory footprint.The Group has progressed with the development and implementation of a roadmap to reduce emissions to reach a near-term absolute reduction target of 42.4% by 2030. Implementation of the initiatives started in 2021 and is continuously reviewed and adjusted.Scope 3In 2025, STG developed an emissions reductions roadmap for Scope 3 to support the near-term science-based targets for both FLAG and non-FLAG related emissions. The effectiveness of pipeline initiatives is assessed based on the impact to emissions reductions, return on investment and contribution to STG’s long-term operational efficiency. The roadmap outlines immediate actions, initiatives, and areas for exploration and development over a 5 year time horizon. Focus areas have been clearly defined and will remain consistent through 2030.Packaging: Reduction of packaging size and weight, elimination of unnecessary packaging materials and transition to packaging, and other non-tobacco materials, with lower carbon footprint.Transportation &amp; Distribution: Transition to transportation modes with lower carbon footprint, where possible, in upstream, downstream and own operations. Shipment consolidation, improvement of fill rates and space utilisation, and enhancement of transportation efficiency with suppliers, including routing and fuels.Tobacco leaf: Optimisation of leaf use in products and reduction of leaf value chain emissions via an enhanced due diligence process, procurement strategy and direct engagement with suppliers.Business optimisation and other efficiencies: Portfolio simplification, operational optimisation in transportation, distribution and storage, materials use efficiency.The implementation of the decarbonisation plan is supported by the ongoing integration of specific criteria and targets into business functions, processes and employee objectives.Optimising inbound shipments reduces emissionsA change in the inbound shipment operational pattern has been implemented in the U.S. for third-party cigars, enabling a shift from less than container load to full container load shipments from Nicaragua and Honduras to our distribution centre in Pennsylvania. This transition has resulted in an estimated reduction of approximately 240,000 kilometres travelled and more than 200 tCO₂e in Scope 3 emissions.240,000kmof travel reduced 200tCO2ereduced in Scope 3 emissionsScope 1 emissions1Thousand tCO2eScope 2 emissions1Thousand tCO2e1) Baseline emissions were recalculated in 2025 in line with STG’s Recalculation Policy to reflect the Mac Baren acquisition. The 2024 figures represent reported values only and were not restated; therefore, performance comparisons between 2025 and 2024 are indicative and do not fully represent progress against our targets.202520242020 baseline (recalculated)202520242020 baseline (recalculated)13.811.54.8%9.6%GHG emissions since 2024GHG emissions since 202412.115.317.721.9Scope 3 emissions2Thousand tCO₂eBreakdown of 2025 Scope 3 emissions by category Thousand tCO₂e2) Baseline emissions were recalculated and 2024 figures were restated in line with STG’s Recalculation Policy to reflect the Mac Baren acquisition, methodological updates, and data improvements.202520242022 baseline (recalculated)FLAG emissionsnon-FLAG and other category emissionsCat. 1 Purchased goods &amp; services FLAGCat. 1 Purchased goods &amp; services non-FLAGCat. 4 &amp; 9 Transportation and distributionCat. 12 End-of-life treatment of sold productsOther categories93.8112.2124.8Thousand tCO2e227102.4162.9227.2179.2256.7121.938.934.44.028.1291.4Renewable electricity transitionIn 2025, STG continued the transition to renewable energy across its own production sites by switching to procurement of green electricity in Svendborg factory in Denmark. This initiative led to 417 tCO2e emissions reductions in Scope 2, which represents 20% contribution to the Scope 1 &amp; 2 yearly target.417tCO2eof Scope 2 emissions reduced20%of the yearly reduction target for Scope 1 &amp; 2 emissions is related to renewable energyTargetsTo address climate related material impacts and risks, STG has set near-term (2030) and long-term (2050) science-based emissions reductions targets. The metrics and targets align with the prioritised areas identified in the DMA, an in-depth analysis of STG emissions profile, climate related scenario analysis, potential decarbonisation levers and an external benchmark evaluation. STG’s targets for all scopes have been first approved by SBTi in 2024. Following the acquisition of Mac Baren Tobacco Company in July 2024, STG recalculated its Scope 1, 2 and 3 emission baselines to reflect the expanded operational footprint, as well as enhancements in data quality and methodology. The updated baselines and adjusted targets have been revalidated by SBTi in 2025.STG does not have a separate target for energy consumption and efficiency, but expects to see an overall decrease of energy consumption and energy intensity due to the projects targeting enhancement of equipment and energy use efficiency within the pipeline. The targets have been developed in close collaboration with internal and external SMEs, using the Greenhouse Gas Protocol, SBTi and Carbon Disclosure Project (CDP) frameworks. STG has furthermore adopted a Recalculation Policy to ensure that GHG calculations, targets and progress remain accurate over time. This has been applied in 2025 due to the Mac Baren acquisition. For information about our metrics, see page 90-95.26%reduction in energy consumption for the respective sites in EuropeEnergy efficiency upgradesSTG implemented several projects to improve energy efficiency at STG’s production sites in Europe. In line with local legislation, installation of solar panels on the Lummen factory roof and changing office lights in Westerloo factory, allowed STG to reduce energy consumption by 26% for the respective sites.E4 BIODIVERSITy AND ecosystemsMaterial impacts, risks and opportunitiesNegative impactsLand-use change - Tobacco cultivation has historically contributed to land-use change, including the clearing of natural forests for farming and wood sourcing for curing. STG also sources wood for box production and purchases finished wooden boxes, with limited traceability across the value chain. As a result, the use of tobacco and wood as primary raw materials may drive deforestation impacts in our supply chain.UpstreamOur ApproachThe Group sources tobacco, wood and paper-based materials from diverse geographies, some with deforestation and ecosystem degradation risks. STG is committed to addressing these potential impacts across its upstream value chain by continuously building internal knowledge and capabilities, refining our approach and addressing deforestation more effectively over time. STG is preparing for compliance with the EU Deforestation Regulation (EUDR). Since 2024, STG has strengthened supplier traceability, introduced verification systems and is establishing processes to ensure compliance with the EUDR and Science-Based Targets initiative (SBTi).Land-use changePolicySTG expanded in 2025, its Environmental Actions and Commitments Policy to include biodiversity, following the DMA. STG commits to avoiding deforestation and promoting responsible land use in alignment with STG’s No-Deforestation Policy and related due diligence obligations, in alignment with EUDR, and SBTi. STG’s scope covers primary commodities linked to deforestation: leaf tobacco and wood for curing, wood and paper-based packaging, and third-party finished tobacco products. ActionsFollowing the identification of biodiversity as a material topic, STG initiated targeted efforts to understand its exposure and responsibilities to address potential biodiversity impacts. Focusing on deforestation in key product groups. This includes:Traceability- Strengthened supplier mapping and rolled out verification systems to identify potential deforestation impacts, prioritising Tier 1 suppliers as they cover approximately 80% of procurement value.Responsible wood sourcing practices - We have begun developing screening procedures for wood, paper, and pulp-based packaging to trace the origin. Align with Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC) standards where feasible and promote responsible forest management.Engaging leaf suppliers - Continue to work with the Sustainable Tobacco Program to encourage better farming practices, conduct risk assessments, and collaborate with suppliers to reduce ecosystem impacts.2026 and beyondThrough 2030, STG will continue to build capabilities and improve value chain visibility by leveraging in the afore-mentioned actions.TargetsIn 2025, the Group established a clear target and metrics to demonstrate its commitment to biodiversity and to report progress against SBTi No-Deforestation requirements. STG commits to a deforestation-free tobacco and packaging supply chain by 2025. Progress is tracked through supplier-coverage indicators.A baseline was set using full-year 2024 results. Due to the complexity of data collection and validation, deforestation status is reported with a one year lag from the reporting period.Tobacco leaf volume covered by STP1Sourced leaf volume with commitment to no-deforestation2Purchased wood, paper &amp; cardboard packaging with commitment to no-deforestation31 Basis of accounting: % of tobacco leaf volume covered by the Sustainable Tobacco Program, industry-led collaboration.2 Basis of accounting: % of total leaf tobacco volume purchased covered by commitments to No-Deforestation signed by suppliers. Tier 1 suppliers are in scope of the target, which represents more than 90% of total procurement value in the category.3 Basis of accounting: % of total procurement value of wood, paper &amp; cardboard packaging covered by commitments to No-deforestation signed by suppliers. Tier 1 suppliers are in scope of the targets, which represents more than 80% of total procurement value in the respective categories.DEFORESTATION FREE TOBACCO AND PACKAGING SUPPLY CHAIN BY 2025Use of phase-in provisions2024baseline81%85%64%E5 RESOURCE USE and CIRCULAR ECONOMYMaterial impacts, risks and opportunitiesNegative impactsResource inflows and use - Resource-related impacts stem from the use of resources for various packaging materials, including:Plastic: Fossil fuel-based materials.Wood, cardboard and paper: Depend on trees as primary raw materials, which could lead to deforestation. This effect extends beyond the Group’s operations into natural habitats, potentially endangering protected areas.Metal: Tins used for packaging require the extraction of raw material, with potential indirect sourcing from conflict-affected regions.Tobacco, although a core raw material, is excluded from this topic as it is not considered scarce and is replenishable.Across the value chainResource outflows - Significant packaging waste is generated downstream, as most packaging lacks recyclability and recycled content. The linear system increases reliance on virgin materials and limits resource recovery, contributing to depletion of finite resources. Across the value chainThe Double Materiality Assessment serves as the process to screen activities and identify material negative impacts. The Group’s consultations have been limited to SMEs within the organization and external consultants but has not included engagement with affected communities.Our ApproachSTG uses a wide range of raw, semi-finished and finished materials across its operations, and upstream value chain. The Group sources these materials through an extensive supplier network, with a priority on engaging direct suppliers. The data collection and assessment of resource inflows and outflows, focus on materials critical to STG’s business, with packaging as the primary area of attention.Resource inflowsTonnes16,316Tonnes Material typeTonnesWood5,067Wooden boxes23Plastic1,733Cardboard &amp; paper6,109Metal1,563Aluminium17Other materials1,804Circular economy principlesWhile STG has not adopted a circular business model, STG is integrating circular principles into packaging to optimize resource use and address outflows, including future R&amp;D projects. In 2025, STG introduced five guiding principles for packaging development:1. Eliminate unnecessary packaging2. Reduce weight3. Substitute materials4. Increase recycled, reused, or non-virgin content5. Enhance recyclability Historically, STG’s R&amp;D processes have included some circularity aspects from cost efficiency projects. Past projects have simplified packaging, developed solutions that facilitate higher recyclability levels and reduce resource use and outflows in the Group’s packaging by avoiding unnecessary packaging where possible. Resource outflowsSTG initiated the evaluation of recyclable content in products and packaging within scope. Due to limited insight into consumer disposal and varying waste infrastructure, STG assesses recyclability based on packaging design.From our initial high-level category analysis, we estimate around 50% of packaging materials purchased or produced by STG meet the “Designed for Recyclability” internal criteria in 2025. Further evaluation and data refinement and granularity will be conducted in the years to come, therefore we anticipate fluctuations in results. Resources inflows, use and outflowsPolicySTG’s Environmental Actions and Commitments Policy outlines the Group’s commitment to optimising resource use (affecting inflows and outflows) in non-tobacco materials and other relevant products and ingredient groups. This may include using less material, increasing recycled content in packaging and a greater use of renewable sources, to gradually move away from virgin resources.ActionsSTG has advanced efforts to increase circularity and optimise resource use. In 2025, the following initiatives across its operations were either implemented or initiated:Reduced mailing volumes of paper cataloguesDownsized plastic bucket packaging, lowering material consumptionReplaced plastic trays with pulp-based alternatives for handmade cigars packagingIntroduced stretch film for pallet wrapping in multiple factories, lowering material consumptionMinimised cellophane use for individually wrapped packsSubstituted wooden boxes with paper wrap solutions for selected handmade cigar brandsSTG conducted an educational webinar and cross-functional workshops on the five packaging principles, identifying initiatives that support SBTi targets, while reducing costs with minimal consumer impact.The Group focused on building a packaging database to enhance data availability, transparency and support both regulatory reporting and targeted initiatives. Phase one of the packaging database has improved visibility of material composition and mass, integrated supplier data and enhanced reporting quality. It also supports STG’s reporting requirements with regard to Extended Producer Responsibility (EPR) submissions and preparing for Packaging and Packaging Waste Regulation (PPWR) compliance.2026 and beyondSTG will continue to address packaging materials through initiatives that improve resource efficiency and contribute to Scope 3 emissions reductions. Planned short- to medium-term actions include:Eliminating unnecessary packaging componentsReducing the size of selected packaging materialsOptimising the portfolio and simplifying packaging formatsSubstituting materials, aligned with brand strategy, operational efficiency and profitabilityInitial implementation depends on resource availability, commercial viability, operational feasibility, business priorities and collaboration with key suppliers.TargetsSTG has not yet established specific targets for resource inflows or outflows; however, effectiveness is monitored through ongoing packaging-related actions. STG has initiated an assessment of its packaging baseline and will consider establishing interim and long-term PPWR-aligned targets in the short- to medium-term, also supporting the Group’s broader ambition to reduce Scope 3 Non-FLAG emissions by 25% by 2030.For information about our metrics, see page 94.Driving down paper consumption through catalogue optimisationSTG significantly improved the efficiency of catalogue mailing in the U.S. online channel. The group successfully reduced the total number of catalogues mailed to consumers, while increasing sales per catalogue mailed. In 2025, these initiatives resulted in an overall reduction of paper consumption by 545 tonnes, contributing to a decrease of more than 1,200 tCO₂e in Scope 3 emissions, primarily associated with paper production, waste management, and transportation activities.545tonnes of paper consumption reduced1,200tCO2ereduced in Scope 3 emissionsS1 own workforceMaterial impacts, risks and opportunitiesNegative impactsHarassment and discrimination - Employees, including customer-facing positions, sales representatives and retail staff, remain particularly susceptible to harassment and discrimination. Incidents can have a profound impact on employee well-being and morale, underscoring the seriousness of this issue. Addressing these widespread risks is inherently complex and requires sustained, coordinated efforts. It requires educating customers on appropriate conduct and reinforcing a workplace culture grounded in respect, dignity and inclusion.Own operationsTraining and skills development - Certain areas of STG’s operations face challenges stemming from limited opportunities for professional development, training and upskilling. This constraint can hinder employee adaptability, job security and career progression, and may contribute to higher turnover rates. The issue is systemic and affects segments of the organization globally, including both manufacturing and office-based roles. While some development programs are in place, sustainable growth depends on structured organisational policies and comprehensive training strategies rather than individual efforts alone. Addressing this gap requires a dedicated, long-term commitment that may extend over several years.Own operationsOur ApproachScandinavian Tobacco Group’s strategy and business model is influenced by the interests and views of its employees through interactions such as meetings and dialogues among supervisors, managers and colleagues, and a feedback survey system. To engage with employees, the Group conducts a global employee engagement survey, usually once every three years (with the latest cycle delayed by one year), and a pulse survey for all office employees worldwide on specific topics once or twice a year. P&amp;C and the Executive Board analyse the results of every survey. Key takeaway points are then communicated and when deemed necessary, accompanied by action plans starting from top management level across the organisation and in individual teams.STG employees play a critical role across all aspects of the Group’s operations, including manufacturing, marketing, sales and other business services. The Group holds significant influence over its workforce, shaping factors such as compensation, working conditions, health and safety standards, and opportunities for professional growth. Employee rights, including human rights, are governed by local legislation and contractual agreements, and where applicable, through union representation. In the event of strategic organisational changes or the closure of any operational units, employees will be managed in accordance with the labour laws and regulations of each respective country.Employees place high value on a collaborative and ethical work environment characterised by transparent communication and recognition of their contributions. Supportive leadership, opportunities for input and a clear sense of purpose, are fundamental to their expectations for a meaningful work experience within the Group. STG maintains that equal treatment and opportunity for all employees is essential to organisational competitiveness, driving innovation, enhancing team performance and improving problem-solving capabilities.Remediation process and channels to raise concernsHuman rights impacts for STG’s own workers are captured by the structures and reporting channels in the organisation (e.g. Management, P&amp;C departments, works councils, union and employee representatives, Whistleblower Scheme or other), where necessary remedies are addressed. In late 2023, STG introduced a process that suspected or actual breaches of law and STG policies, including the Code of Conduct, shall ultimately be centrally reported by Managers/P&amp;C departments via the Whistleblower Scheme to ensure both a consistent approach to the investigation of such matters and an overview at Group level of such cases. This also applies to incidents related to human rights, including discrimination and harassment.Please see section in G1-Business conduct in page 82-83for more information on the Whistleblower Scheme.participation rate in STG’s global employee engagement survey in 2025 up from 88% in 202194%Harassment and discriminationPolicyScandinavian Tobacco Group does not tolerate any form of harassment or discrimination based on gender, age, race, religion, nationality, ethnicity, political opinion, sexual orientation, union membership, disability, health status, or any other basis. This commitment is reflected in STG’s Employee Belonging Policy which outlines our commitment to fostering an inclusive workplace, strengthening representation and supporting balanced gender representation in leadership. The policy does not focus on any vulnerable group, but its ambition applies to all employees. Inclusion and belonging are fundamental to how we work and lead across the organisation. The policy reflects our ambition to cultivate a work environment where employees feel welcomed, respected, and able to contribute equally. It is owned by the Chief Human Resources Officer (CHRO), who is responsible for setting direction, ensuring implementation and driving progress across the Group.Code of ConductThe foundation of STG’s policies on responsible behaviour is the Code of Conduct, which is owned by the Group’s General Counsel and sponsored by the CEO. The Code affirms STG’s commitment to a workplace that values people of all nations, cultures, ethnicities, generations, backgrounds, skills and abilities. It also reiterates that STG respects internationally recognised human rights as laid down by the International Bill of Human Rights, the International Labour Organisation’s Declaration on Fundamental Principles and Rights at work, the UN Guiding Principles on Business and Human Rights, the Children’s Rights &amp; Business Principles, the UN Convention on the Rights of the Child and its corresponding General Commitment No. 16, the ILO Convention No. 182 concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, the ILO Convention No. 138 concerning. Minimum Age for Admission to Employment, and the ILO Convention No. 184 concerning Safety and Health in Agriculture.ActionsHarassment prevention is a core priority, so the Group places strong emphasis on internal education and awarenes, rather than educating customers. Training is embedded in employee onboarding and reinforced through annual refreshers for all U.S. based colleagues. Managers also participate in specialised sessions to support responsible leadership. By integrating these topics into core development programmes, STG strengthens everyday leadership behaviours and supports an inclusive workplace culture.STG’s targetted training promotes awareness of Employee Belonging topics, through a globally consistent framework, adapted to reflect regional cultural norms and social expectations. This ensures that content is relevant and resonates with participants across diverse markets.In 2025, we updated our Employee Belonging Policy to ensure continued alignment with STG’s long-term ambitions, while advancing inclusion through strengthened leadership engagement, global awareness efforts and initiatives that enhance employee participation across the organisation. This helped bring the principles of the Employee Belonging Policy to life and further embedded inclusion into our daily culture. We also updated the policy to ensure continued alignment with STG’s long-term ambitions.The Group conducts employee surveys to assess inclusion, belonging and overall satisfaction. Results are shared across the organisation, and managers work with their teams to identify and implement relevant improvement actions.STG currently tracks and measures employee training at the local level, as a centralised system for capturing this data across the Group is not in place.Celebrating International Women’s Day across our global communityOn March 8th, STG proudly joined the world in celebrating International Women’s Day, honouring the incredible women who inspire STG every day. Across the globe, teams came together to celebrate achievements, share stories, and create memorable moments.Each celebration reflected STG’s shared commitment to employee belonging and fostered connection through activities such as panel discussions, spotlighting cases and contributions of inspiring women, vibrant murals, and picture opportunities. These initiatives were a powerful reminder of the strength, resilience, and leadership that women bring to STG’s organisation worldwide. The enthusiasm and support truly showcased the importance of celebrating and empowering women across the Group’s locations.61%of STG workforce are womenGlobal developmentSTG launched a global initiative designed to equip employees with practical tools for personal and professional success. The series featured interactive, 2-hour online workshops facilitated by the Global People Development Team, focusing on actionable strategies to thrive in a dynamic work environment. The workshop themes are:Thriving Through Turbulence: Resilience and Smart PrioritizationThe Power of Feedback: Fueling Growth, Connection and CollaborationGrowth Mindset: Turning Challenges into OpportunitiesGen Z and Millennials Unplugged: What Drives the Next GenerationThe sessions equipped over 300+ employees to build resilience, enhance collaboration, embrace continuous improvement, and engage emerging talent strategically.+300employees participated in STG global development initiative2026 and beyondSTG is committed to building transparent reward structures and empowering employees through the Employee Belonging Network. At STG, engagement and belonging begin with how the Group hires and develops its people. Our early career programs will connect new talent with mentors, communities and a sense of purpose from day one. STG embraces diverse perspectives and creates space for every voice, because when people feel they belong, they thrive.TargetsThe Group has not set any targets and does not currently assess the effectiveness of its policies and actions. Training will be reinforced in 2026 with instructions on reporting allegations of discrimination and harassment via the Whistleblower Scheme and linked to the Code of Conduct. STG aims to build a baseline to set a proper target.Training and Skills developmentPolicySTG addresses the identified impact through its Group-wide Training &amp; Skills Development Policy, which applies to all employees. STG’s training and skills development initiatives are aligned with the Group’s strategic priorities. Training needs are identified through business objectives, performance appraisals and employee feedback. Offering a range of development options based on role and expertise, from online compliance courses and craftsmanship training, to onboarding, corporate programs and professional development. The owner of this policy is the CHRO.The onboarding process ensures new employees are integrated into STG’s culture, roles and operational systems while completing all required compliance training. Line managers play a critical role in career development through annual performance discussions, where objectives are set as part of the development cycle. A full evaluation process is conducted yearly to assess performance, identify growth opportunities and set goals for the coming year. Training programs are regularly reviewed for effectiveness and relevance, with employee feedback driving continuous improvement and professional development.Implementation and monitoring of this policy is overseen by the Executive Board in collaboration with departmental heads, while employees are expected to actively engage in training and apply acquired skills in their roles.ActionsThe Group strengthened its people development capabilities by expanding resources and programs. Initiatives focused on global employee development, emphasizing key themes such as feedback and resilience. Leadership development remained a strategic priority through the Senior Leadership Journey program, which addressed critical areas including self-awareness and building high-performing teams. The actions implemented directly support the Group’s policy.2026 and beyondLooking ahead, STG will continue to activate initiatives that enhance employee engagement and development. Additional actions and priorities will be defined in 2026 to further advance this area and ensure alignment with the Group’s long-term strategic objectives.TargetsThe Group has not yet established formal targets and does not currently assess the effectiveness of its policies and actions, as it is currently focused on maturing its approach and strengthening internal capabilities in this area.For more information about our metrics, see page 96-100.S2 WORKERS IN THE VALUE CHAINMaterial impacts, risks and opportunitiesNegative impactsAdequate wages - The tobacco farming sector which is mostly based in low-income countries, often employ low-cost labour, including sometimes seasonal or migrant workers, who may accept low wages due to their vulnerable status.Working time - Poor living conditions and inadequate wages may lead field workers to work excessive hours. Further, tobacco is grown in countries that may not have strong labour regulation of for instance, fixed working time.Work-life balance - Physically demanding work and long hours may limit time for rest and recovery.Health and safety - Standards on some tobacco farms may be deficient, with workers exposed to hazards such as harmful chemicals, elevated temperatures, nicotine exposure and inadequate Personal Protective Equipment (PPE).Child labor - Child labour in tobacco farms can have severe and lasting negative impacts on the well-being, development and prospects of the children involved. It constitutes a breach of the child’s fundamental right to education and to a childhood with play and rest, free of child labour.Forced labour - Is a breach of fundamental human rights. It may inflict profound physical and psychological toll on workers and their families. All impacts are located in the upstream value chainSTG has identified material impacts in tobacco leaf sourcing affecting vulnerable worker groups, particularly those employed in tobacco farming, where seasonal work, migrant status and socioeconomic vulnerability, heightening the risk of exploitation. STG sources tobacco from regions in Asia, Africa, South and Central America. These populations are often exposed to poverty, have insufficient access to education and face inadequate labour regulation, and rights that are poorly enforced by the authorities. This includes a significant risk of child and forced labour, with most of these impacts being widespread and systemic in the agricultural sector.Our ApproachTobacco growing and processing is labour-intensive and all workers are entitled to fair labour practices, safe conditions and opportunities to sustain a decent standard of living. STG does not accept child labour and forced labour of any kind, and will react to below-standard working conditions, any breaches of human rights and other labour rights that STG becomes aware of in its supply chain.STG’s Supplier Code of Conduct, which is connected to the Group’s Code of Conduct, describes the fundamental rights that should exist and be protected in its supply chain.Supplier engagement, including meetings and site visits, helps STG align its strategy and business model to foster mutual understanding of each other’s businesses. STG has close relationships with direct leaf suppliers, sharing a common desire to eliminate child and forced labour. Additionally, STG captures workers’ views and interests through industry collaborations, including the Sustainable Tobacco Program (STP) and Eliminating Child Labour in Tobacco (ECLT). STG does not engage directly with value chain workers but relies on third-party assessments.Remediation process and channels to raise concernsSTG manages reports of negative impacts on a case-by-case basis, as no formal remediation process is in place.Incidents may come to STG’s awareness in various ways, including the due diligence process in the leaf tobacco supply chain (through STP), visits to suppliers, reports directly to management or other representatives of the Company, or the Group’s Whistleblower channel. STG acknowledges that value chain workers are likely unaware of its Whistleblower channel. At present, STG is not able to assess its entire value chain for instances of leaf suppliers not respecting human rights principles, however STG gains insights in these areas via STP. STG is aware that there is a general risk of child labour and other severe human rights issues in its upstream value chain, as it relates to tobacco growing.Workers rights and conditionsPolicySTG’s Supplier Code of Conduct sets clear expectations for responsible and ethical behaviour across its supply chain. This includes expectations around labour practices, health and safety, human rights, ethical business conduct and the environment. STG’s Supplier Code of Conduct can be found on the Group’s website st-group.com.The Code applies to all suppliers and STG encourages its adoption by their suppliers. The Code is owned by the General Counsel, sponsored by the CEO and implemented by Procurement, led by the Senior Vice Presidents of Procurement and Leaf.Suppliers are expected to offer terms of employment and working conditions that, as a minimum, comply with local labour laws, including any rules on minimum wage, working hours and overtime work. Suppliers are expected to respect all laws, regulations and international standards related to human rights, understood as those expressed in the International Bill of Human Rights. Suppliers should work actively to prevent and mitigate adverse human rights impacts. STG expects suppliers to implement internal controls and reporting channels so that human rights issues and breaches can be raised confidentially and investigated appropriately.Sustainable Tobacco ProgramSTG is engaged in the Sustainable Tobacco Program (STP), a sustainability-focused industry initiative developed to promote voluntary best practices in tobacco farming and processing. For more information visitSustainable Tobacco ProgramSuppliers are expected to continuously monitor and ensure compliance with STG’s Supplier Code of Conduct. STG reserves the right to verify compliance and request supporting documentation. The Group’s aim is to ensure improvement and compliance with the standards for the benefit of the value chain workers, but non-compliance may also result in the termination of STG’s agreement with the supplier.STG does not have full oversight of all its suppliers to ensure that they meet the standards outlined in the Supplier Code of Conduct. However, STG is committed to working towards this goal with its leaf tobacco suppliers, through collaboration with the STP.STG may audit high-risk suppliers and issue corrective actions, followed by monitoring to ensure improvement. STG expects continuous improvement when supplier practices fall short of the Code. While STG promotes these standards, it recognises that implementation depends on supplier capacity and local context.ActionsSTG leaf suppliers conduct self-assessments using a tool developed by STP, addressing different ESG topics to gain insights into the potential risks per country and per supplier. The Group relies on third-party data from its risk assessment tools. Identified risks may trigger in-depth assessments (IDAs) of priority suppliers and countries. All strategic leaf suppliers actively participate in STP by submitting due diligence or self-assessment data and receiving a Due Diligence Maturity (DDM) score. Suppliers with prioritized IDA findings implement action plans. Leaf Procurement and Sustainability team support these initiatives in collaboration with industry programs.Due diligence process through STP2026 and beyondSTG will continue collaborating with suppliers through the STP, conducting IDAs when relevant and monitoring prioritised actions. STG will further integrate sustainability due diligance into operations and supply chain management.STG will continue to educate relevant functions in human rights due diligence (child labour and forced labour) to identify and react adequately to any potential incident.TargetsThe Supplier Code of Conduct was rolled out in 2023 for direct suppliers and extended in 2024 to indirect suppliers. Signed acknowledgements are collected during onboarding and contract renewals, supported by ongoing engagement with suppliers. STG’s target is to ensure that at least 80% of suppliers, within leaf, direct, and indirect are covered by the Supplier Code of Conduct. A baseline was set in 2023, and progress is monitored annually toward this objective.Similar to 2024, the Group has not yet set additional targets, as it is currently working to better understand the value chain data from its suppliers. It aims to define targets in the short- to medium-term. Eliminating Child Labour in TobaccoSTG has been a long-standing contributor to the multi-stakeholder initiative Eliminating Child Labour in Tobacco Growing Foundation. The foundation is engaged in creating awareness about child labour and initiatives to eliminate it internationally, as well as at national and regional levels, including on-the ground projects for children and adolescents, and their families in tobacco-growing communities. Among other activities, ECLT develops training programs, which STG’s Procurement and Leaf teams follow.For more information visit ECLT - Eliminating Child Labour in Tobacco Growing FoundationS4 CONSUMER AND END-USERSMaterial impacts, risks and opportunitiesNegative impactsHealth and safety- The consumption of tobacco and nicotine products poses serious health risks to consumers and those exposed to second-hand smoke, potentially leading to severe illness or death. While this widespread and systemic issue may vary among individuals, the overall number of affected people remains significant. Due to the inherent nature of tobacco, eliminating these risks entirely is not feasible for our organisation.DownstreamProtection of children - Children are particularly vulnerable to second-hand smoke, which represents a major global and systemic health concern. Unfortunately, this exposure cannot be prevented, as it is an inherent consequence of how these products are consumed. DownstreamGiven the health risks related to their use, tobacco and nicotine products should never be used by individuals below the legal purchase age. Despite this, certain product categories may appeal to younger audiences, even though such use is neither intended nor desired by manufacturers or society. STG’s core categories, cigars and pipe tobacco, generally have limited appeal to youth; however, we recognize the risk that underage individuals may access some tobacco or nicotine products despite STG’s strong commitment to preventing such use and distancing its brands from underage consumption. Own operationsRisksHealth and safety- Evolving regulations and changing consumer trends around health impacts may gradually influence market access, demand and long-term business performance, posing a financial risk to STG.DownstreamMitigating actions are described in the Enterprise Risk Management section of the report, under “Regulation” and “Total Market Development”.Read more onpage 41-42.Our ApproachThe use of tobacco and nicotine products should be a personal choice and those who do use them must weigh the associated health risks, and balance those against their enjoyment. Nobody under the age of 18 (or older as determined by local law) should buy or consume tobacco or nicotine products. STG grows the business by improving its market share. The Group aim is to give smokers and users of nicotine products reasons to choose its products and categories over those of competitors. STG’s business and strategy focuses on producing and selling tobacco products, while expanding into nicotine pouches, to diversify STG’s offerings to its consumers. The Group recognises the health risks associated with the consumption of these products and adheres to responsible marketing practices in line with its Code of Conduct and Marketing Principles. In most markets, regulations restrict direct engagement with consumers for STG’s tobacco brands. Information to consumers about the health risks associated with its tobacco and nicotine products is conveyed via health warnings on the product packaging and, where is permitted, in advertising materials, in full compliance with the applicable laws and the STG Marketing Principles to ensure all outreach is directed solely at adults and never at youth. As market and consumer trends evolve, so does the regulation governing tobacco and nicotine products, including marketing, sale and consumption. STG has a long record of adapting responsibly to regulatory changes and prioritising compliance. The Group remains committed to meeting all legal requirements in every market where it operates.For more information about our product categories and consumers see the ‘Our business’ section of the report page 10-13.CONSUMERS HEALTH &amp; SAFETY AND PROTECTION OF CHILDRENPolicySTG’s Code of Conduct provides the foundation for the Group’s commitment to responsible marketing and affirms its dedication to respecting human rights across all business activities. These principles are embedded in the Marketing Principles, which guide how STG communicates with consumers and ensures that its marketing activities are conducted responsibly and in full compliance with applicable laws and standards. Tobacco products are subject to extensive and increasingly strict regulations worldwide, covering labelling, packaging, marketing, display, sale and consumption. These regulatory frameworks are closely connected to the protection of public health, which is recognized as a fundamental human right under international standards. While the Marketing Principles do not explicitly reference the UN Guiding Principles on Business and Human Rights, the ILO Declaration, or the OECD Guidelines, they reflect STG’s commitment to responsible business conduct. Through adherence to these principles, STG supports informed consumer choice.The essence of the STG Marketing Principles implies that all advertising and promotional activities are only targeting adults and that consumers are always warned about the health risks associated with its products. STG does not direct marketing, advertising or promotion to consumers under the age of 18 (or higher as determined by local law). In cases where there are differences between the applicable laws and the Marketing Principles, STG always applies the more restrictive rule.Sponsored by the Group’s CEO and owned by the Group’s General Counsel, the Marketing Principles are embedded in STG’s culture and they guide the daily decisions of its consumer-focused teams.The Group does not have a policy related to the protection of children from second-hand smoke. The ability to fully remediate this impact remains limited to regulatory initiatives and responsible consumer behaviour.Remediation process and channels to raise concernsConsumers can submit product complaints via STG’s website, though rarely receiving reports on health and safety-related issues. When such concerns arise, STG addresses them with the utmost responsibility and attention. The Group does not currently assess whether consumers are aware of or trust the consumer reporting channel, nor its effectiveness.Comprehensive regulation in most markets, together with STG’s compliance and adherence to responsible marketing under its Marketing Principles, in the Group’s opinion, considerably limit the risk that consumers enjoy STG’s products without having been exposed to information about the health risks. This is reinforced by decades of societal awareness that smoking and the use of nicotine products carry serious health risks, meaning consumers, whether they use STG’s products or not, are generally informed about these risks. At the same time, there is no clear way for STG to remedy the inherent health risks linked to the use of tobacco and nicotine products. In some markets, STG offers oral nicotine alternatives for consumers who prefer not to smoke; however, these products also carry health risks.ActionsThe Group provides training on the Marketing Principles to relevant functions and this initiative will continue in 2026 to support regulatory compliance. Group Legal oversees the delivery of the training, although it’s effectiveness is not currently evaluated. In addition, marketing material undergoes legal review to ensure alignment with applicable regulations and safeguard compliance standards.TargetsThe Group has not adopted targets nor metrics for this topic as the topic is compliance-driven and regulated. In line with its belief in responsible business conduct, STG strives to always act in full compliance with all applicable laws and regulations as well as STG’s self-imposed Marketing Principles. “Our Marketing Principles are embedded in our cultureG1 Business conductMaterial impacts, risks and opportunitiesNegative impactsProtection of whistleblowers- The absence of such protection could lead to undetected misconduct, including undetected illegal activities and violations of company policies, which may negatively impact the business culture and the respective whistleblowers.Own operationsCorruption and bribery- As a large corporation operating internationally and with international value chains, also in countries with a high prevalence of corruption, there is exposure to bribery and corruption risks, including facilitation payments. Occurrences are unlikely to be of significant scale due to the nature of STG’s business, which only implies limited interaction with public authorities and officials. Should there be incidents of corruption, they would likely not impact many individuals. However, it would be difficult or impossible for STG to remediate.Own operationsOur ApproachBusiness conduct policies and corporate cultureScandinavian Tobacco Group has several policies applicable across the Group that serve the purpose of maintaining high ethical standards and ensure compliance with laws and regulations. At the core of these policies is the Code of Conduct, which establishes the principles of responsible behaviour. This is complemented by more specific policies covering areas such as marketing principles, anti-corruption and anti-bribery, competition law, data ethics, trade restrictions, protection of personal data, employee belonging, IT security and others. The Code of Conduct and several other key group policies are approved by the Board of Directors, while remaining policies are approved by the Executive Management or the Executive Board. All policies are accessible to employees via the Group intranet and, where necessary, translated into local languages used at the Group’s sites. Each policy is subject to an annual review and must be reapproved - whether amended or unchanged - by the appropriate governing body.While the Group does not maintain a standalone policy for business conduct training, it provides training on the Code of Conduct and several supporting policies, including those addressing anti-corruption and anti-bribery, personal data protection, and related areas. Upon onboarding and at regular intervals, employees are required to complete training on the policies relevant to their roles. Training is primarily conducted through e-learning but may also take place in-person. The Company’s values are actively promoted by the Executive Board and broader leadership, forming an integrated part of organizational communication – whether through the intranet, Town Hall, or other meetings. Employee performance evaluation includes an assessment of the employee’s behaviour and leadership performance in relation to these values.“The Group ensures comprehensive training on the Code of Conduct and associated policies, including anti-corruption, anti-bribery, and data protection, as part of its commitment to ethical business practices. Training on the Code of Conduct is mandatory for all employees, including the Group’s Executive Management, and reinforces expected behaviours by outlining the fundamental principles of responsible conduct. Delivery is primarily through online platforms while employees in operational roles without online access receive equivalent in-person training.These measures support the Group’s governance framework and its dedication to integrity and compliance across all activities.Our policies are available at our websitest-group.comSTG has several policies applicable across the Group that serve the purpose of maintaining high ethical standards and ensure compliance with laws and regulations. Speak upEmployees are encouraged to report any suspected breaches of Group policies, including the Code of Conduct, or applicable laws. Reports can be made through People and Culture, a manager, or via the confidential Whistleblower channel. Guidance on reporting is outlined in the Group’s Whistleblower Policy and is readily accessible on the Group intranet in all relevant languages.Whistleblower scheme and protection of whistleblowersPolicyThe Group maintains a confidential reporting channel for employees, customers, suppliers and other stakeholders to raise concerns about potential violations of law or Group policies. The Group’s Whistleblower Policy ensures secure reporting and provides safeguards against retaliation in line with the EU Whistleblower Directive and applicable laws.Information on the policy is available on the Group’s intranet and at all sites. Reports can be submitted anonymously, and the Group enforces a zero-tolerance approach to retaliation against individuals acting in good faith. Senior leaders, including managers in P&amp;C, are trained to handle reports received through alternative channels to ensure proper escalation and compliance.Anyone who reports an incident via the Whistleblower Scheme or in person can choose to remain anonymous. All reports are treated with strict confidentiality, regardless of the reporting channel used.The Group has procedures in place to ensure that reports received under the Whistleblower Scheme are followed up and incidents, including corruption and bribery, are investigated promptly and objectively and in accordance with the EU Whistleblower Directive. Reports are first reviewed by an external law firm to prevent conflicts of interest before being forwarded for investigation under established procedures. If a conflict is identified, the matter is escalated to the Audit Committee or the Chairman of the Board of Directors. Investigations are conducted promptly, independently and objectively.ActionsSTG does not provide training on how to report, but uses awareness campaigns to create trust in the set-up and the protection of reporters. The Group’s Whistleblower Scheme and compliance with the Whistleblower Policy is overseen by the Audit Committee.TargetsSTG’s target is zero instances of retaliation against whistleblowers. Progress is tracked annually through whistleblower reports and internal investigations.Anti-corruption and anti-briberyPolicySTG maintains a zero-tolerance to corruption and bribery across its entire value chain. The commitment is embedded in STG’s Code of Conduct, Supplier Code of Conduct and Anti-corruption Policy. The Anti-corruption Policy provides clear guidelines to prevent any involvement in bribery or corrupt practices and applies globally to all employees, management and individuals acting on behalf of the Group.Remediation process and channels to raise concernsIncidents and allegations of corruption and bribery – whether reported through the Whistleblower Scheme, identified via financial controls or detected otherwise – are escalated to the Executive Management and the Audit Committee. Investigations are led by the Group’s Legal, Finance and/or P&amp;C functions, with external support engaged when necessary. Appropriate sanctions would be applied, including disciplinary sanctions and potential involvement of the police for criminal investigations and sanctions. The Group General Counsel typically oversees the process, ensuring independence and excluding anyone with a conflictof interest. Appropriate actions are taken based on findings, including disciplinary measures and, where applicable, referral to law enforcement for criminal investigation.ActionsTrainingSTG conducts mandatory anti-corruption and bribery training for all employees with a corporate email address, including the Executive Management and the Executive Board. Members of the Board of Directors, except employee-elected representatives, are not required to participate, as they annually adopt the Code of Conduct and Anti-Corruption Policy.The online training course covers identifying corruption risks, understanding the implications of bribery and conflicts of interest, and responding appropriately to such situations. Interactive exercises and questions reinforce awareness of the Group’s Anti-corruption Policy and the consequences of non-compliance. Both the course and the policy materials are accessible at any time via the internal training platform.Given the Group’s presence in countries with elevated corruption risks—such as Nicaragua, Honduras, the Dominican Republic, Sri Lanka and Indonesia—employees in these locations with corporate email access are classified as “functions-at-risk.” Like all other employees with a corporate email address, they must complete training upon onboarding and approximately every 18 months.TargetsSTG’s target is zero instances of corruption and bribery Progress is tracked annually through whistleblower reports, internal audits and training completion rates.For more information about our metrics, see page 100.Channels to raise concernsAnyone who experiences or suspects misconduct is encouraged to report to the relevant person in the organization (e.g. a manager, the Executive Management, P&amp;C or Legal) or to make use of the Group’s online Whistleblower channel. The portal is available in the local languages of all the countries in which the Group operates and is supplemented with a telephone reporting option.st-group.whistleblowernetwork.netPerformance and metrics85	Basis of preparation86Environment96	Social and Governance101	Other EU legislationBasis of preparationGeneral reporting standards and principlesThe sustainability statement is prepared in accordance with the EU's Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS) and section 99a of the Danish Financial Statements Act.Our statement on data ethics in accordance with Section 99d of the Act can be found on page 43. This report also contains our statement regarding compliance with the EU Sustainable Finance Taxonomy, which can be found on pages 86-89. MaterialityThe Double Materiality Assessment has been conducted in accordance with the Corporate Sustainability Reporting Directive (CSRD) described on page 59-61, and serves as basis of our Sustainability reporting in 2025. The 2025 consolidated sustainability statement includes metrics aligned with STG’s Sustainability agenda, Rolling Responsibly and Double Materiality Assessment. When assessing whether a metric is material to the consolidated sustainability statement, Management considers whether the matter is of such relevance and importance that it could substantially influence the assessment of STG’s sustainability performance by the users of the Annual Report 2025.TimelineThe Group defines short-term as events ocurring by the end of the reporting period, medium-term within the next five years, and long-term as beyond five years, unless specified otherwise.Principles of consolidation The scope of consolidation covers the entire Scandinavian Tobacco Group organisation, similar to our financial consolidation principles. Unless otherwise stated, the data and reporting included in the performance tables covers the entire value chain, including production sites, warehouses, administration, sales, representative offices, and legal entities. The illustration of the value chain can be found on page 14.Accounting policies The accounting policies set out in the notes have been applied consistently in the preparation of the consolidated sustainability statements for all years presented, unless stated otherwise.Estimation uncertaintyThe Group has relied on partial estimations to cover downstream and upstream value chain where there is limited visibility and access to data across Scope 3 calculations. Mapping activity data with emission factors involves some uncertainty and occasional approximation.Data risk management and internal controlTo ensure our sustainability risk assessment and reporting process is accurate and robust, we have applied the same principles as our financial reporting risk assessment process. We identify risks linked to the standard audit assertions of Completeness, Accuracy, Cut Off, Occurrence, Presentation &amp; Disclosure and Rights &amp; Obligations. The risks are assessed for likelihood and impact, and controls designed for those deemed to be material as per the DMA. We have established policies, procedures and internal control systems throughout the organisation to ensure mitigation of risks and to identify emerging risks as they materialise. Our process was designed with input from key stakeholders and external consultants to ensure completeness and transparency. Risks and controls are evaluated on an annual basis to ensure they are still relevant and working appropriately. We have established governance to sustainability reporting by linking material topics to relevant Executive Board members and our approach and findings are reported to the Audit Committee and Board of Directors on a regular basis. Our financial and sustainability reports are audited by the same independent audit firm, which is elected at the annual general meeting. Our sustainability data is subject to limited assurance based on the CSRD requirements. Observations raised by external auditors are reviewed and addressed with appropriate action plans, which are regularly followed up on until completion. The main risks identified and their mitigation strategies including related controls are described in our accounting policies.EnvironmentCLIMATE changeRetrospectiveMilestones and targets (recalculated)1,000 tonnes CO2e emissionsBase year(recalculated) 2025202412025 vs 2024%20302050Annual % target2% Annual average vs base yearDirect Scope 1 GHG emissions2020 baseGross Scope 1 GHG emissions17.711.512.1-4.8%10.231.8-4.2%-8.3%Percentage of Scope 1 GHG emissions from regulated emission trading schemes0%0%0%0%0%0%Indirect Scope 2 GHG emissions2020 baseGross location-based Scope 2 GHG emissions21.217.018.6-8.7%N/AN/AN/A-4.3%Gross market-based Scope 2 GHG emissions21.913.815.3-9.6%12.632.2-4.2 %-8.8%Indirect Scope 3 GHG emissions - significant categories2022 baseCategory 1 disagregated - Tobacco, cigars &amp; other FLAG products109.8121.992.132.3%76.6430.84-3.8%3.5%Category 1 disagregated - Non-tobacco materials33.719.738.8-49.1%25.353.45-3.1%-16.4%Category 1 disagregated - Other goods and services39.519.230.9-37.7%N/AN/AN/AN/ATotal category 1 - Purchase goods and services183.1160.8161.8-0.6%N/AN/AN/AN/ACategory 4 - Upstream transportation and distribution44.823.935.7-33.2%33.654.55-3.1%-19.0%Category 9 - Downstream transportation21.910.514.6-28.1%16.452.25-3.1%-21.6%Category 12 - End-of-life treatment of sold products9.64.09.4-58.1%7.251.05-3.1%-25.6%Total Scope 3 - Significant categories259.3199.1221.5-10.1%N/AN/AN/AN/AOther categories32.028.135.2-20.3%N/AN/AN/AN/ATotal Gross indirect Scope 3 GHG emissions291.4227.2256.7-11.5%212.5649.36-3.4%-8.0%Total GHG Emissions7Total GHG emissions - Location-based330.3255.7287.4-11.0%N/AN/AN/AN/ATotal GHG emissions - Market-based331.1252.5284.0-11.1%235.453.3N/AN/ADesclaimer:Baseline emissions and absolute emission reduction targets for all scopes were recalculated in 2025 in line with STG’s Recalculation Policy to reflect the Mac Baren acquisition, methodological updates, and data improvements. Consequently, retrospective emissions for base year, as well as Milestones and Targets now reflect updated figures, validated by the SBTi in 2025.(1) The 2024 figures for Scope 3 emissions were restated to reflect methodological updates and data improvements(2) Annual % target calculated based on 2030 target(3) In line with Scope 1 &amp; 2 combined science-based target (validated by SBTi)(4) In line with science-based near-term and long-term targets for FLAG GHG emissions(5) In line with science-based near-term target for non-FLAG GHG emissions (not disaggregated by categories)(6) Scope 3 is covered by both FLAG and non-FLAG emission reduction targets, therefore weighted average near-term and long-term targets are included for Total scope 3 (combined target not validated by SBTi)(7) Combined Scope 1, 2 &amp; 3 baseline emissions includes Scope 1 &amp; 2 2020 emissions and Scope 3 2022 emissions according to the base years for respective scopesPerformance against baseline In accordance with STG’s Recalculation Policy, Scope 1, 2, and 3 baselines were recalculated in 2025 to reflect the expanded operational footprint following the Mac Baren acquisition, alongside improvements in data quality and methodological refinements.In 2025, Scope 1 and 2 emissions decreased by 36.3% vs baseline, demonstrating strong progress toward the near-term reduction target of 42.4%. Total Scope 3 emissions decreased by 22.0% vs baseline, marking steady advancement toward the near-term target for non-FLAG emissions. At the same time, a shift to a more accurate, mass-based calculation method in some FLAG categories resulted in 11.2% increase of FLAG emissions vs baseline.Ongoing data improvements with gradual shift to mass and supplier data on product level and periodic updates of emission factors are expected to introduce fluctuations in our annual Scope 3 results. As a result, year on year variations are anticipated, and we will recalculate the baseline or restate historical data when appropriate to maintain accuracy, comparability and transparency with regards to our progress.1,000 tonnes CO2e per net sales in DKK billion202520241%GHG intensity per net salesTotal GHG emissions, location-based per net sales28.331.2-9.4%Total GHG emissions, market-based per net sales27.930.9-9.5%(1) The 2024 figures for Scope 3 emissions were recalculated to reflect methodogical updates and data improvements.Performance against previous yearThe main levers to Scope 1 &amp; 2 emissions reductions in 2025 have been factory footprint and distribution optimisation following Mac Baren acquisition, alongside continued transition to renewable energy and improvements to equipment and refrigerants. These included the closure of the Sutliff factory in the U.S. and the warehouse in Germany (325 tonnes CO₂e reduction), the replacement of outdated cooling equipment and switching to modern refrigerants at the Honduras manufacturing site (834 tonnes CO₂e reduction), and the switch to renewable energy at the former Mac Baren site in Svendborg, Denmark, as well as at the retail superstore in Hamburg, U.S. (417 tonnes CO₂e reduction). Additional reductions came from the full-year effect of the solar panel installation completed at the end of 2024 in the Dominican Republic (526 tonnes CO₂e). Continued implementation of the fleet transition plan, from diesel to electric vehicles and more efficient petrol cars, resulted in a 6% emissions reductions from combined gasoline and diesel consumption in 2025.Total Scope 3 emissions decreased by 11.5%, primarily driven by reductions in Category 1 Purchased Goods &amp; Services non-FLAG and Categories 4 and 9 Transportation and Distribution. This decrease was largely enabled by significant data improvements, including the use of more precise mass data for packaging materials and the updated emission factors. Several initiatives further supported reductions in these categories, such as lowering the number of printed catalogues, discontinuing the accessories business in France, and optimizing inbound shipping. Additional decreases came from smaller categories, supported by optimized spend in areas such as Business Travel and Capital Goods.Category 1 Purchased Goods &amp; Services FLAG emissions increased by 32.3% in 2025 compared with 2024. This increase was driven by the shift from a spend-based to a quantity and mass-based calculation methodology, as well as higher procurement of handmade cigars relative to 2024.Biogenic emissionsBiogenic emissions (CO₂e emissions from combustion) is reported separately as a disclosure, and has not been reported in STG’s CO₂e emissions table for Scope 1, 2, and 3. Biogenic emissions associated with burning tobacco and paper products during use phase resulted in 5.3 thousand tonnes CO₂e which indicates an increase by 4.1% vs. 2024, and 15.7% decrease vs. 2022 baseline.According to the GHG Protocol, biogenic CO₂ is considered carbon neutral because the CO₂e released from burning biomass is reabsorbed by plants during their growth. Unlike fossil fuels, these emissions do not increase overall atmospheric CO₂e levels over their lifecycle.Accounting policiesReported CO2e emissions comprise of Scope 1, 2 and 3 and is reported in 1,000 metric tonnes. Emissions are calcu-lated and reported in accordance with the Greenhouse Gas (GHG) Protocol and the reporting requirements from the European Sustainability Reporting Standards. Reporting is based on actual and estimated data based on availability, from all STG entities and locations where STG has opera-tional control.Scope 1CO₂e emissions from internally generated energy are calculated by multiplying fuel consumption with emission factors supplied by the UK Department for Environment, Food &amp; Rural Affairs (DEFRA).Scope 2CO₂e emissions from externally generated energy are reported using both market-based and location-based methods, in line with the GHG Protocol. These indirect emissions are calculated based on purchased and self-gen-erated electricity and district heating.Scope 2 (market-based)CO₂e emissions are calculated using site- and supplier-spe-cific emission factors where available, supplemented by data from the International Energy Agency (IEA). Renewable energy consumption is reported in line with GHG Protocol Scope 2 guidelines, based on contractual instruments such as Energy Attribute Certificates (EACs), which verify supply from wind, hydro, solar, and biomass sources.Scope 2 (location-based)CO₂e emissions are calculated using average emission factors from the International Energy Agency (IEA) or country-specific databases. This method applies regional averages and does not account for the company’s specific renewable energy mix.Scope 3STG excludes three Scope 3 categories from its GHG emis-sions disclosure: Category 8, 13, and 14. Internal analysis confirms that STG has no emissions in these categories, and the rationale for their exclusion is documented in the Scope 3 Accounting Manual.Of the remaining 12 Scope 3 categories defined by the GHG Protocol, STG has identified four as significant. The rest are reported collectively under “Other categories.” The GHG emissions data, including calculation meth-odologies and emissions across all material scopes and categories, have been reviewed and validated by Integer APS, a sustainability consultancy.PURCHASED GOODS AND SERVICES (GATEGORY 1)Emissions from purchased goods and services include all externally sourced materials and services, excluding transport, travel, capital goods, and investments. A hybrid approach is used for emissions calculation: where data on weight, material type, and supplier-specific emissions is available (e.g. tobacco, wood, packaging, third-party cigars), product-based and supplier-based methods are applied respectively. Spend-based emission factors are applied where this data is unavailable (e.g. indirect spend categories). For some categories methodology has been adjusted to mass-based or supplier specific from spend-based, leading to higher data quality and precision of calculations. Non-FLAG emissions are accounted following GHG Protocol Corporate Value Chain Accounting and Reporting Standard. FLAG emissions are accounted fol-lowing GHG Protocol Land Sector and Removals Standard draft published in 2022.UPSTREAM AND DOWNSTREAM TRANSPORTATION AND DISTRIBUTION (CATEGORY 4 AND 9)CO₂e emissions from transportation and distribution are calculated using the spend-based method with Environment Protection Agency (EPA) emission factors by transport mode. All inbound, intercompany, and outbound activities are included, except those covered under Scope 1. The split between Category 4 and Category 9 is based on internal logistics mapping, with extrapolation used where downstream data is unavailable.END-OF-LIFE TREATMENT OF SOLD PRODUCTS (CATEGORY 12)Emissions from end-of-life treatment of sold products and packaging are calculated using the waste-type method, applying EPA and DEFRA emission factors based on mate-rial and disposal type.OTHER SCOPE 3 CATEGORIESThe following categories are assessed as insignificant for reporting purposes, representing a combined total of less than 1% of Scope 3 emissions: Waste generated in opera-tions (Category 5), Processing of sold products (Category 10), Use of sold products (Category 11).Capital goods (Category 2). Emissions are calculated using the spend-based method, applying EPA emission factors corresponding to relevant capital goods (e.g., buildings, machinery).Fuel and energy related activities (Category 3). This cate-gory includes emissions from the extraction, production, and transportation of fuels and energy, as well as trans-mission and distribution losses. Emissions are quantified using fuel and energy consumption reported in Scope 1 and Scope 2, applying DEFRA Well-to-Tank (WTT) and IEA emission factors.Business Travel (Category 6). Emissions are calculated using the hybrid method: distance-based method for air travel with CO2e emissions data provided by Egencia (global travel agency) and spend-based method for other business-related travel activities (e.g. hotel, car rental, etc), applying EPA emission factors corresponding to relevant categories.Employee commuting (Category 7). Emissions are cal-culated using the distance-based method. Calculations are based on proxy commuting profiles developed from employee survey data or direct activity data from local HR. Proxy profiles are multiplied by the number of employees per entity and calculated using DEFRA Well-to-Wheel (WTW) emission factors.Investments (Category 15). Emissions include the pro-portional share of emissions from STG’s investment in Caribbean Cigar Holdings Group, Panama. Calculations are based on the investee’s disclosed activity data (mass, quantity, and earnings), applying supplier emission factors for tobacco leaf production and proxy emission factors for cigar manufacturing derived from STG’s Scope 1 and Scope 2 emissions intensity.Emissions base yearSTG may periodically need to recalculate our GHG emissions baseline and progress towards our emissions targets. This, to ensure our GHG calculations, targets and progress remain accurate over time. STG will do this when either structural changes or when the calculation meth-odology give rise to an increase or decrease in emissions greater than 5%. STG has set 2020 as the baseline year for Scope 1 &amp; 2, and 2022 for Scope 3 for our GHG emissions calculations and targets. Recalculation of the baseline is a consequence of material mergers and acquisitions and will be done in the following year of the acquisition, when the acquired company has a full year impact on the emissions reporting. In line with the Group’s Recalculation Policy, STG updated its Scope 1, 2, and 3 emission baselines to reflect the expanded operational footprint following the acquisition of Mac Baren Tobacco Company in July 2024, as well as improvements in data quality and methodology. The revised baseline and adjusted targets were revalidated by the SBTi in 2025 and are reflected in the 2025 reporting.AccuracyMost Scope 3 emissions are calculated using spend-based, quantity and mass data from STG’s ERP systems, covering all entities under operational control. Exceptions include partial Category 1 and 12, and fully Category 3 and 7.For Categories 1, 4, and 9, data from some entities was excluded due to low impact (&lt;5%), in line with SBTi thresholds. These exclusions are documented in the Scope 3 Accounting Manual.Mass-based data is used for Category 1 and 12, offering higher accuracy. Supplier data has been used in Category 1 (for Tobacco Leaf).UncertaintyMeasurement uncertainty is low for Scope 1 &amp; 2 emissions due to the use of primary data. Scope 3 emissions carry higher uncertainty as they rely more on estimates. All cal-culations follow GHG Protocol methodologies and include activity data from entities under STG’s operational control, with exclusions noted earlier.Category 1 has limited uncertainty due to approximations in matching activity data with emission factors. Categories 4 and 9 have medium uncertainty due to reliance on spend data, which limits visibility between upstream and down-stream emissions and requires extrapolation for parts of the downstream value chain.Category 12 includes assumptions for third-party finished goods and packaging, where material types and weights are not available. These uncertainties are addressed through documented assumptions.AssumptionsAssumptions are applied due to limited access to activity data, low precision of emission factors, lack of visibility on material weights, and absence of direct insight into consumer behaviour. These assumptions are developed by internal subject matter experts and external consultants, based on a deep understanding of STG’s business and operating model, supported by scientific research, internal modelling, and mapping tools.Energy consumptionEnergy consumption and mix in GWh(Gigawatt-hour)20252024Fuel consumption from coal and coal products--Fuel consumption from crude oil and petroleum products15.616.0Fuel consumption from natural gas26.425.0Fuel consumption from other fossil sources--Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources26.928.7Total fossil energy consumption68.969.7Fuel consumption from renewables sources--Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources21.020.4Consumption of self-generated non-fuel renewable energy1.50.7Total renewable energy consumption22.521.1Consumption from nuclear sources1.10.9Total energy consumption92.591.7Total excess renewable self-generated energy distributed to the grid0.2-Energy mixShare of consumption from fossil sources74.5%76.0%Share of consumption from renewable sources24.3%23.0%Share of consumption from nuclear sources1.2%1.0%Energy intensityNet sales in DKK million9,035.79,202.1Energy intensity - GWh/net sales in DKK billion10.210.0Energy consumptionThe energy consumption in the Group was 92.5 GWh (2024: 91.7 GWh) resulting in an increase of 0.9%.The increase in energy consumption is mainly driven by the increase in natural gas and electricity consumptions on some of production sites.The energy mix improved with a 1.3 percentage point increase in the energy consumed from renewable sources, resulting in 24.3% share of renewable energy in the total energy consumption of the Group consumption.Accounting policiesOur reporting of energy consumption is based on data collected from all STG companies and all locations where STG has operational control.Energy consumption is measured as consumption of electricity, district heating, and different types of fuel. Energy consumption is based on actual consumption and is primarily based on meter readings or invoices.The share of renewable energy consumption is reported in accordance with the GHG Protocol Scope 2 guidelines, using the market-based method. This approach accounts for renewable energy through the procurement of con-tractual instruments such as Energy Attribute Certificates (EACs), ensuring supply from sources like wind, hydro, solar, and biomass.Energy mix (%)Non-renewable 75.7% (77.0%)Renewable 24.3% (23.0%)Circular Economy2025Material groupShare of total weighttonnesWood incl. certified sources31.1%5,067 Wooden boxes incl. certified sources0.1%23Plastic10.6%1,733Cardboard &amp; paper37.4%6,109 Metal9.6%1,563Aluminium0.1%17Other materials11.1% 1,804Total100%16,316 Circular economyIn 2025, the Group established a more accurate baseline for future circularity and packaging-reduction targets, and we expect continued improvements in data precision as methodologies and systems mature. In 2025, enhancements to the data collection process enabled the use of item-level mass data retrieved from ERP systems for purchased materials, significantly reducing reliance on average values and extrapolations. Additionally, data for wood materials was sourced from local ERP systems and verified with finance and procurement teams to ensure accurate units of measure and conversion to mass. As a result, the precision of wood material inflow accounting improved, and the 2025 reported figures for wood are thus not directly comparable to those reported in 2024. Similarly, total plastic inflows are not directly comparable with the figures reported for 2024 due to corrections made to item level mass data across several categories, including plastic film. 2024 figures are not presented as they are not methodologically comparable with 2025. Furthermore, it is not possible to restate figures for 2024 as the enhancements made to the data collection process do not capture 2024 data. The total weight of both technical and biological materials inflows was 16,316 tonnes. Cardboard and paper were the Group’s primary materials in 2025, followed by wood. Overall, STG’s packaging mix included a substantial share of biological materials, which accounted for 25% in 2025. In 2025, 56% of sourced wood and wooden boxes are covered by No-deforestation commitments related to 2024 confirmations received, or have certificate of origin provided by the supplier. From our initial high-level category analysis, we estimate around 50% of packaging materials purchased by STG are recyclable in 2025. The metric reflects the technical recyclability of packaging components according to our internal design criteria, not recycling performance in specific markets. Further evaluation and data refinement and granularity will be conducted in the coming years and we therefore anticipate fluctuations in reported results. In the short- to medium-term, STG will refine its recyclability methodology, integrate PPWR-aligned requirements, and develop quantitative reduction targets for packaging materials. Accounting policiesWe collect, evaluate, and provide data across the following categories: packaging materials, wood, non-tobacco mate-rials used in tobacco product manufacturing (e.g. tipping paper, mouth paper, plastic filters, tips, glues), ingredients (flavours), other finished goods such as nicotine and non-nicotine pouches, pipes, and paper catalogues. We account for materials used in STG’s own manufactur-ing for proprietary brands, contract manufacturing, and products purchased from third-party suppliers and placed on the market by STG.Several product categories are excluded from the scope of the reporting, including those deemed immaterial, such as tobacco leaf, property, plant, office and IT equipment, and water. Finished products with minimal contribution to total group sales, such as lighters, matches, and accessories, are also excluded. STG does not use biofuels for non-energy purposes in manufacturing. Despite tobacco being the core raw material used for the manufacturing of STG products, tobacco has been deemed immaterial in E5 – Resource use and circular economy, as described in our material IROs. Therefore, tobacco inflows (including leaf and semi-finished products) for own manufacturing and 3rd party products are not included in disclosures, but accounted as part of E1 – Climate change.All cardboard, paper products, and finished wooden boxes purchased by STG are classified as technical materials due to treatments such as dyeing, printing, or coating. Loose wood is categorized as biological material.Recyclable content in products and packagingSTG initiated the evaluation of recyclable content in prod-ucts and packaging within scope. Due to limited insight into consumer disposal and varying waste infrastructure, STG assesses recyclability based on packaging design. We expect this definition to evolve over time in line with the PPWR guidelines on recyclability.Scope includes all packaging materials purchased by STG. Product components consumed during use are excluded. Third-party cigars, tobacco products, and accessories are being phased out due to lack of data on packaging weight and recyclability. Recyclability rate is calculated based on mass-data and on material groups of purchased packag-ing, consolidated for reporting.Methodology and key assumptionsCalculation approachSTG uses a hybrid approach to calculate the total weight of products and materials in scope. This includes direct weight data from ERP systems for materials used in own manufacturing, and internally developed weight proxies for finished goods from third-party manufacturers, created in collaboration with an external climate expert.Sample data useIn cases where full data on purchased quantities is unavail-able, an estimate is used to calculate average item weight for both STG’s own products and third-party manufactured goods. The amount of estimates used for calculation has significantly decreased in 2025 reporting year compared to the previous reporting period. ExtrapolationsDue to limited access to detailed mass-based packaging data for third-party finished products, STG extrapolates its own packaging mix to estimate packaging for these prod-ucts. Extrapolation is applied at the packaging type level (e.g. metal tins, composite cans, labels) and reflects usage across product categories such as hand-made cigars, machine-rolled cigars, and smoking tobacco. Packaging weights are calculated based on the ratio of STG’s own and contract manufacturing sales to third-party product sales. AssumptionsMaterials are consolidated and reported by primary material type. Where detailed breakdowns of components and their mass contributions are unavailable, the full item weight is assigned to the dominant material (e.g. metal for a pack). If the primary material cannot be determined, such as in composite items, the material is classified as “Other materials.” In the reporting year, STG did not have access to data distinguishing virgin from reused or recycled materials. To ensure a conservative approach, all materials are consid-ered virgin, resulting in higher reported emissions. Social and GovernanceEmployee characteristics2025FemaleMaleOtherNot disclosedTotalNumber of employees5,3663,4848-8,858Number of permanent employees5,3663,4848-8,858Number of temporary employees-----Number of non-guaranteed hours-----2024FemaleMaleOtherNot disclosedTotalNumber of employees5,7363,613229,353Number of permanent employees5,7363,613229,353Number of temporary employees-----Number of non-guaranteed hours-----The total number of permanent employees was 8,858 in 2025, compared to 9,353 in 2024. This represents a slight decrease of 5.3%. The distribution of employees remains balanced across different geographies and age groups.The most representative number in the financial statements is the average number of employees, 9,144 as detailed in the Staff costs section of the report on page 114.The previously reported figure of 866 (2024) has been corrected to zero following the reclassification of non employee workers, ensuring methodological accuracy and ESRS aligned reporting.Accounting policiesOur reporting of employee characteristics is based on data extracted from our HRIS systems at year end (December 31st) and represents an actual headcount representation of that date. PermanentTotal headcount of permanent employees (individuals employed for work that is of a continuos full-time and part-time nature defined as per home country requirements respectively).Temporary workersSTG Does not have any employees in this category.Non-guaranteed hoursSTG does not have any employees in this category.Age distribution of total employees20252024&lt;30 years old1,4751,82930-50 years old5,0805,573&gt;50 years old2,3031,951Employee head count by genderFemale5,3665,736Male3,4843,613Other82Not disclosed-2Total employees8,8589,353Accounting policiesAge distribution of employees Headcount of own employees (i.e. not including non-employees) by age group.Employees by genderTotal headcount of employees split by gender registered by the employee or by People &amp; Culture in the Global P&amp;C system (HRIS), as either female, male, other or “not disclosed”.Employee characteristics (%)Female 61% (61%)Male 37% (37%)Not disclosed 1% (1%)Other 1% (1%)Turnover 20252024Total employee turnover18.7%22.7%Total number of employees who have left1,6962,205Number of employees by country120252024Belgium763797Denmark548585Dominican Republic1,6262,115France7683Germany88121Honduras1,3821,309Indonesia1,4091,472Italy7678The Netherlands128156Nicaragua361399Portugal71Spain6260Sri Lanka1,2641,169United Kingdom52United States883875Other269134Total8,8589,3531) The 2024 figures were recalculated to reflect methodological updates. 2) Other comprises the total of STG companies with less than 50 employees in each. These include Australia, Canada, Hong Kong, Portugal (2024), Sweden and United Kingdom (2024) 2025Employee by RegionAmericasEuropeRest of world TotalNumber of employees4,2951,8872,6768,858Number of permanent employees4,2951,8872,6768,858Number of temporary employees----Number of non-guaranteed hours----Employee turnoverThe employee turnover rate decreased from 22.7% to 18.7% in 2025. The turnover was primarily attributed to production employees in Latin America and retail employees in NA where a naturally high turnover trend exists in the retail sector.Workforce changes across countries mainly reflect integration synergies, activity closures for efficiency purposes, and local volume developments. The most notable changes occurred in Portugal, driven by the establishment of the SDO (Solution Delivery Organization), STG’s central hub for delivering standardised finance processes, and in the Dominican Republic, where the closing of activities in San Pedro and volume decline resulted in a reduction in headcount. Other fluctuations were minor and consistent with normal business activity.Accounting policiesOur reporting of employee characteristics is based on data extracted from our HRIS systems at year end (December 31st) and represents an actual headcount representation of that date. Employee turnover:The turnover rate is calculated by dividing the number of terminations that occur during the reporting period by the average number of employees (headcount) during the same period expressed as a percentage. The rate is calu-cated based on number of permanent employees.Employees by country: Total headcount of employees split by country. Countries with fewer employees than 50, will be consolidated into the “Other” category.Employees by region: Total headcount of employees split by region.Diversity in top management2025Diversity in Top ManagementMaleFemaleOtherTotalExecutive Management11-2Senior Leadership6723-90Top Management682492-2024Diversity in Top ManagementMaleFemaleOtherTotalExecutive Management11-2Senior Leadership6622-88Top Management672390-Accounting policiesOur reporting on diversity in management is based on data from our People &amp; Culture IT-systems and Group Legal. Data within this category is extracted or counted as per the last day of the year (December 31st). Top Management: The gender representation in Top Management is disclosed in accordance with ESRS S1-9. The data includes the two management levels below the Board, i.e the Executive Management and the Senior Leadership.Executive Management: Total headcount of individuals in the Executive Management, by gender.Senior Leadership: Total headcount of individuals in the Senior Leadership, by gender. Senior Leadership is defined as employees with titles: Senior Vice President, Vice President, Director or Senior Director. Gender Balance in Management This section of the report constitutes our statutory report on gender composition of the management of Scandinavian Tobacco Group A/S for the financial year 2025, according to Section 107f of the Danish Financial Statements Act.At the end of 2025, two of six (33.3%) of the shareholder-elected and one of three (33.3%) of the employee-elected members of the Board of Directors were female. With respect to the Danish Gender Balance Act this constitutes equal distribution of genders.In the Executive Management the gender distribution was one female and one male (50% to 50% split).Within the other management levels, as defined in the Danish Companies Act, at the end of 2025 there were four females and nine males (30.8% to 69.2% split)*. The Board of Directors has set a target of 30.8% of the underrepresented gender for other management levels to be reached by 30 June 2026.During 2025 to further enhance equal gender balance especially in leadership positions, and in accordance with the Company’s policy on Employee Belonging, there has been a focus on setting specific targets for gender representation at senior leadership level, applying unbiased recruitment and promotion practices, ensuring equal pay for equal work through global job architecture and job grading infrastructure and providing flexible work arrangements to support work-life balance for all employees.*Other management levels only include management positions in Scandinavian Tobacco Group A/S with managerial responsibilities for employees of Scandinavian Tobacco Group A/S. Other management levels are not equal to Senior Leadership levels as reported under the ESRS requirement.By focusing on these initiatives, we aim to create an environment where all employees, regardless of gender, have equal opportunities for career development and leadership roles. This commitment to gender representation is not just about fairness; it's about leveraging the full potential of our talent pool to drive innovation and success.BOARD CHARACTERISTICSBoard characteristics20252024Share of female Board of Directors (shareholder-elected)33.33%33.33%Share of male Board of Directors (shareholder-elected)66.67%66.67%Share of Board of Directors - others (shareholder-elected)--Board of Directors diversity - number of nationalities 54Number of non-executive board members99Number of executive board members--Share of independent Board of Directors66.67%66.67%Board characteristics The share of female and male board members in 2025 remains the same as in 2024.Accounting policiesBoard characteristics metrics are calculated based on shareholder-elected members of the Board of Directors. Employee-elected board members are excluded from the calculations.Board of Directors - gender diversity: Gender split of shareholder-elected members of the Board of Directors as per year-end.Board of Directors - national diversity: Number of nationalities represented in the shareholder-elected board members as per year-end. Board of Directors - non-executive members: Proportion of members of the Board of Directors that are also part of the Executive Board as per year-end.Board of Directors - executive members: None of the Board of Directors are executive members.Board of Directors - independence:Split on number of members of the Board of Directors in terms of independence. Independence is defined according to the Danish Recommendations on Corporate Governance. Reported as per year end.Business conduct, Incidents, complaints and severe human rights impacts20252024Corruption and bribery-Convictions--Amount of fines--The percentage of “functions-at-risk” covered by training programmes98.14%90.44 %Human rights issuesTotal confirmed incidents--Confirmed incidents considered human rights violations--Amount of fines--Discrimination &amp; harassmentReported incidents21Amount of fines related to work-related grievances--OtherReported incidents9-WhistleblowingWhistleblower cases are taken very seriously, and we continuously enhance the awareness of good business conduct through education and awareness campaigns to minimise future cases of misconduct.None of the reported cases were critical to our business or caused adjustments to our financial results.Accounting policiesOur reporting on Business Conduct, Incidents, Complaints and Severe Human Rights Impacts is based on data col-lected by Group Legal, representing the knowledge of the company at time of reporting. Statistics on incident report-ing is based on data from STG̓s Whistleblower Scheme.Number of convictions and amount of fines for violation of anti-corruption and anti-bribery laws: The number of convictions and the amount of fines (in DKK) received during the reporting period, for violation of anti-corruption and anti-bribery laws. Data is collected by Group Legal.Share of employees considered " functions-at-risk" that have been assigned training:The relevant employees are those with a personal STG email in Nicaragua, Honduras, Dominican Republic, Sri Lanka and Indonesia; that are covered by the relevant online training programme.Reported incidents of discrimination and harrasment: Number of work-related incidents of discrimination or harassment reported in the reporting period. Based on data from STG̓s Whistleblower Scheme.Other reported incidents: Number of other work-related incidents reported during the reporting period in the STG Whistleblower Scheme or manually collected data by Group Legal. This excludes incidents categorized as “discrimination” or “harassment” as already reported in separate indicator. Amount of fines related to reported incidents: The total amount of fines, penalties, and compensation for damages (in DKK) received during the reporting year as a result of incidents and complaints reported, including those consid-ered discrimination or harassment. If fines are received for cases reported in a previous reporting period, this would be stated. Data is manually collected by Group Legal.Total confirmed incidents considered severe human rights : The number of incidents considered severe human rights issues (E.g. forced labour, human trafficking or child labour) connected to STG's workforce during the reporting period in the STG Whistleblower Scheme or manually collected data by Group Legal. Total confirmed incidents considered human rights viola-tions: The number of severe human rights issues and inci-dents reported during the reporting period, that are also violations of the UN Guiding Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work or OECD Guidelines for Multinational Enterprises. Data collected through STG̓s Whistleblower Scheme or manually collected data by Group Legal. Amount of fines related to human rights issues: The total amount of fines, penalties, and compensation for damages (in DKK) received during the reporting year as a result of the incidents of human rights violations. If fines are received for cases reported in a previous reporting period, this would be stated. Data is manually collected by Group Legal.other EU legislationDisclosure requirementsSFRD (23) referencePillar 3 (24) referenceBenchmark Regulation (25) referenceEUPageESRS2 General disclosuresGOV-1Board's gender diversity909199GOV-1% of board members who are independent99GOV-4Statement on due diligence55SBM-1Involvement in activities related to fossil fuel activities -SBM-1Involvement in activities related to chemical production-SBM-1Involvement in activities related to controver-sial weapons-SBM-1Involvement in activities related to cultiva-tion and production of tobacco 13EnvironmentE1 – Climate changeE1-1Transition plan to reach climate neutrality by 2050 65E1-1Exclusion from Paris-aligned Benchmarks65E1-4GHG emission reduction targets65, 68E1-5Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors)n/aE1-5Energy consumption and mix93E1-5Energy intensity associated with activities in high climate impact sectorsn/aE1-6Gross Scope 1, 2, 3 and Total GHG emissionsE1-6Gross GHG emissions intensityE1-7GHG removals and carbon creditsN/AE1-9Exposure of the benchmark portfolio to climate-related physical risksN/AE1-9Disaggregation of monetary amounts by acute and chronic physical riskN/AE1-9Location of significant assets at material physical riskn/aDisclosure requirementsSFRD (23) referencePillar 3 (24) referenceBenchmark Regulation (25) referenceEUPageE1-9Breakdown of the carrying value of its real estate assets by energy-efficiency classesN/AE1-9Degree of exposure of the portfolio to cli-mate- related opportunitiesN/AE4 – Biodiversity and ecosystemsE4-2Policies to address deforestation69E5 – Resource use &amp; circular economyE5-5Non-recycled waste N/AE5-5Hazardous waste and radioactive wasteN/ASocialS1 – Own workforceSBM3Risk of incidents of forced labourN/ASBM3Risk of incidents of child labourN/AS1-1Human rights policy commitments74S1-1Due diligence policies on issues addressed by the fundamental International Labor Organi-sation Conventions 1 to 874S1-1Processes and measures for preventing traf-ficking in human beingsN/AS1-1Workplace accident prevention policy or management systemN/AS1-3Grievance/complaints handling mechanisms83S1-14Number of fatalities and number and rate of work-related accidentsN/AS1-14Number of days lost to injuries, accidents, fatalities or illnessN/AS1-16Unadjusted gender pay gap N/AS1-16Excessive CEO pay ratioN/AS1-17Incidents of discrimination100S1-17 Non-respect of UNGPs on Business and Human Rights and OECD Guidelines 100Disclosure requirementsSFRD (23) referencePillar 3 (24) referenceBenchmark Regulation (25) referenceEUPageS2 – Workers in the value chainSBM3Significant risk of child labour or forced labour in the value chain7776S2-1Human rights policy commitments77S2-1 Policies related to value chain workers 77S2-1Non-respect of UNGPs on Business and Hu-man Rights principles and OECD guidelines77S2-1Due diligence policies on issues addressed by the fundamental International Labor Organi-sation Conventions 1 to 877S2-4Human rights issues and incidents connected to its upstream and downstream value chainS4 – Consumers and end usersS4-1 Policies related to consumers and end-users 80S4-1Non-respect of UNGPs on Business and Human Rights and OECD guidelines80S4-4Human rights issues and incidentsN/AGovernanceG1 – Business conductG1-1United Nations Convention against Corruption83G1-1Protection of whistleblowers83G1-4Fines for violation of anti-corruption and anti-bribery laws100G1-4Standards of anti-corruption and anti-bribery83</mrv:SustainabilityReport>
   <mrv:StatementOfPolicyForDataEthics contextRef="ctx-1" id="f0__s8__7__7" xml:lang="en">Data ethicsThis section constitutes our statutory reporting under the Danish Financial Statements Act § 99d.In Scandinavian Tobacco Group we process various types of data, both personal (including HR-related), and customer, including consumer, supplier, market, sales, technical, statistical, test and production data.Data Ethics is not limited to personal data issues, which are already extensively regulated in many jurisdictions. Data Ethics concerns data in general, and thus our policy covers our ethical approach to data issues in a wider perspective, including personal data, advanced technology, data quality and security.We remain committed to applying this policy and to advancing data ethics within the Group. As part of this commitment, we plan to review and consider updates to the policy in 2026.Our Data Ethics Policy is available at our websitest-group.com</mrv:StatementOfPolicyForDataEthics>
   <mrv:LinkToCorporateGovernanceReport contextRef="ctx-1" id="f0__s8__7__8">www.st-group.com/annual-reports/statutory-corporate-governance-report-2025/ </mrv:LinkToCorporateGovernanceReport>
   <mrv:DescriptionofTheTaxonomyRegulation contextRef="ctx-1" id="f0__s8__7__11" xml:lang="en">EU taxonomyAbout the taxonomy The Taxonomy Regulation is a key component of the European Commission’s action plan to redirect capital flows towards a more sustainable economy. It represents an important step towards the European Green Deal objectives, achieving carbon neutrality by 2050 in line with EU climate goals, because the Taxonomy is a classification system for environmentally sustainable economic activities.Our activities In order to determine Taxonomy-eligible activities, firstly we compared economic activities involved in the manufacture and retail of tobacco products to the Climate Delegated Act (CDA), which covers activities and sectors including, impact to water and marine resources, circular economy, pollution, biodiversity, and also those which have the greatest potential towards climate change mitigation and climate change adaptation. No Taxonomy-eligible activities were identified, which means none of our turnover can be considered as Taxonomy-eligible. We have activity within our value chain that is not revenue-generating, but that result in assets or processes that are essential for our revenue-generating activities, which are not reported as Taxonomy-eligible economic activities on their own. This includes acquisition or construction of new buildings and transportation of our products to retailers and consumers. The Group discloses capital expenditures (CAPEX) and operational expenditures (OPEX) relating to the purchase of output from these activities. KPIsExpenses related to CAPEX and OPEX activities within the value chain which are Taxonomy-eligible but not revenue generating are used as the numerator to calculate KPIs. For CAPEX this consists of additions to fixed assets (IAS 16), intangible assets (IAS 38) and right-of-use assets (IFRS 16) during the financial year, before depreciation, amortisation and any re-measurements, revaluation, impairments, or changes in fair value. Additions from business combinations are also included, but goodwill is not. The total is divided by our total CAPEX to calculate the KPI. OPEX in the taxonomy consist of direct non-capitalised costs for building renovation, maintenance and repair, and other direct expenditures relating to the day-to-day servicing of our assets of property, plant, and equipment. This includes the volume of non-capitalised leases (FRS 16), and expenses for short-term leases and low-value assets. Reference is made to note 3.3 Right-of-use assets page 126. Maintenance costs is based on an allocation of total maintenance costs times the share of NBV of buildings versus production facilities. The OPEX numerator is defined as Taxonomy-eligible OPEX divided by our total Taxonomy OPEX in order to establish the OPEX KPIs.The total CAPEX is reconciled to our consolidated financial statement. For details on policies refer to note 3.1 Intangible assets page 121, note 3.2 Property, plant and equipment page 125and note 3.3 Right-of-use assets page 126. Since the numerator for the KPI is derived from the Taxonomy-eligible activities and it was concluded that there are no Taxonomy-eligible activities associated with our turnover, it is not possible to generate turnover KPIs or to assess alignment. For further details on our accounting policies regarding consolidated net sales, please refer to note 2.1 Gross profit (net sales and cost of goods sold) page 112. Our turnover can be reconciled to our consolidated financial statements, cf. consolidated statement of income on page 105(Net sales). ELIGIBILITY AND ALIGNMENT The Group has not recorded any category A, CAPEX or OPEX, and does not plan to expand any category B, Taxonomy-eligible economic activities. Therefore, we only have category C expenses which can qualify. These individual measures correspond to economic activities listed in the delegated acts supplementing the Taxonomy Regulation.In order to determine if an economic activity is Taxonomy-aligned, it must contribute substantially to one or more of the environmental objectives and meet technical criteria as stated within the specific associated Appendix to the Delegated Act. The Group’s purchases did not meet all the technical screening requirements, and consequently cannot be deemed Taxonomy-aligned.Nuclear energy related activities1.The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of inno-vative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.No2.The undertaking carries out, funds or has exposures to construction and safe opera-tion of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.No3.The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.NoFossil gas related activities4.The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.No5.The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.No6.The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.NoReporting on turnoverSubstantial contribution criteriaDNSH criteria (‘Does Not Significantly Harm’)2025- Economic ActivitiesCode Turnover Propor-tion of Turn-over Climate change mitiga-tions Climate change adapta-tion Water Pollution Circular economy Bio-diversity and eco-systems Climate change mitiga-tion Climate change adapta-tion Water Pollution Circular economy Bio-diversity Minimum safe-guards Proportion of Taxonomy-aligned (A.1.) or -eligible (A.2.) Turnover 2024Category (enabling activity)Category (transi-tional activity)DKK million%%ETA. Taxonomy-eligible activitiesA.1. Environmentally sustainable activities (Taxonomy-aligned)None0%N/EL N/EL N/EL N/EL N/EL N/EL NNNNNNN0%N/AN/ATurnover of environmentally sustainable activi-ties (Taxonomy-aligned) (A.1.)0%N/EL N/EL N/EL N/EL N/EL N/EL NNNNNNN0%Of which enabling-0%N/EL N/EL N/EL N/EL N/EL N/EL NNNNNNN0%Of which transitional0%NNNNNNN0%A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)None- 0%NNNNNN0%Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2.)0%NNNNNN0%A. Turnover of Taxonomy-eligible activities (A.1+A.2)0%-B. Taxonomy-non-eligible activitiesTurnover of Taxonomy-non-eligible activities9,035.7100%Total (A+B)9,035.7 100%-----CCM	Climate change mitigationY	Yes (Taxonomy-eligible and Taxonomy-aligned activity with the relecant environmental objective)N	No (Taxonomy-eligible but not Taxonomy-aligned activity with the relecant environmental objective)EL	Taxonomy-eligible activity for the relevant objective. The code for the most relevant objective is stated in boldN/EL	Not eligible, Taxonomy-non-eligible activity for the relevant environmental objectiveReporting on capexSubstantial contribution criteriaDNSH criteria (‘Does Not Significantly Harm’)2025- Economic ActivitiesCode CAPEX Propor-tion of CAPEX Climate change mitiga-tions Climate change adapta-tion Water Pollution Circular economy Bio-diversity and eco-systems Climate change mitiga-tion Climate change adapta-tion Water Pollution Circular economy Bio-diversity Minimum safe-guards Category (enabling activity)Category (transi-tional activity)DKK million%%ETProportion of Taxonomy-aligned (A.1.) or -eligible (A.2.) CAPEX 2024 A. Taxonomy-eligible activitiesA.1. Environmentally sustainable activities(Taxonomy-aligned)None-0%N/EL N/EL N/EL N/EL N/EL N/EL NNNNNNN0%N/AN/ACAPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1.)-0%N/EL N/EL N/EL N/EL N/EL N/EL NNNNNNN0%Of which enabling-0%N/EL N/EL N/EL N/EL N/EL N/EL NNNNNNN0%Of which transitional-0%NNNNNNN0%A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)Electric generation using concentrated solar power (CSP)CCM 4.23.61%ELELN/ELN/ELN/ELN/EL0%Transportation by motorbikes, passenger cars and light commercial vehiclesCCM 6.524.7 8%ELELN/ELN/ELN/ELN/EL6%Renovation of existing buildingsCCM 7.223.78%ELELN/ELN/ELN/ELN/EL0%Acquisition and ownership of buildingsCCM 7.7145.150%ELELN/ELN/ELN/ELN/EL37%CAPEX of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2.)197.1 66%ELELN/ELN/ELN/ELN/EL43%A. CAPEX of Taxonomy-eligible activities (A.1+A.2)197.1 66%B. Taxonomy-non-eligible activitiesCAPEX of Taxonomy-non-eligible activities94.1 34%Total (A+B)291.2100%CCM	Climate change mitigationY	Yes (Taxonomy-eligible and Taxonomy-aligned activity with the relecant environmental objective)N	No (Taxonomy-eligible but not Taxonomy-aligned activity with the relecant environmental objective)EL	Taxonomy-eligible activity for the relevant objective. The code for the most relevant objective is stated in boldN/EL	Not eligible, Taxonomy-non-eligible activity for the relevant environmental objectiveActivityAdditions to Property, Plant and EquipmentInternally generated or purchasedintangiblesRight-of-use assetsTotalThereof acquired through business combinationsThereof part of a Capex plan4.23.6003.606.5-024.724.70-7.223.70023.70-7.761.4083.7145.10-Total88.70.0108.4197.10.00.0Reporting on OPEXSubstantial contribution criteriaDNSH criteria (‘Does Not Significantly Harm’)2025- Economic ActivitiesCode OPEX Propor-tion of OPEX Climate change mitiga-tions Climate change adapta-tion Water Pollution Circular economy Bio-diversity and eco-systems Climate change mitiga-tion Climate change adapta-tion Water Pollution Circular economy Bio-diversity Minimum safe-guards Proportion of Taxonomy-aligned (A.1.) or -eligible (A.2.) OPEX 2024 Category (enabling activity)Category (transi-tional activity)DKK million%%ETA. Taxonomy-eligible activitiesA.1. Environmentally sustainable activities(Taxonomy-aligned)None-0%N/EL N/EL N/EL N/EL N/EL N/EL NNNNNNN0%N/AN/AOPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1.)-0%N/EL N/EL N/EL N/EL N/EL N/EL NNNNNNN0%Of which enabling-0%N/EL N/EL N/EL N/EL N/EL N/EL NNNNNNN0%Of which transitional-0%NNNNNNN0%A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)Transportation by motorbikes, passenger cars and light commercial vehiclesCCM 6.526.812%ELELN/ELN/ELN/ELN/EL9%Renovation of existing buildingsCCM 7.296.142%ELELN/ELN/ELN/ELN/EL42%OPEX of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2.)122.9 54%ELELN/ELN/ELN/ELN/EL51%A. OPEX of Taxonomy-eligible activities (A.1+A.2)122.9 54%B. Taxonomy-non-eligible activitiesOPEX of Taxonomy-non-eligible activities105.5 46%Total (A+B)228.4 100%CLIMATE change</mrv:DescriptionofTheTaxonomyRegulation>
   <mrv:StatementOfTheDiversityPolicies contextRef="ctx-1" id="f0__s8__7__13" xml:lang="en">Gender Balance in Management This section of the report constitutes our statutory report on gender composition of the management of Scandinavian Tobacco Group A/S for the financial year 2025, according to Section 107f of the Danish Financial Statements Act.At the end of 2025, two of six (33.3%) of the shareholder-elected and one of three (33.3%) of the employee-elected members of the Board of Directors were female. With respect to the Danish Gender Balance Act this constitutes equal distribution of genders.In the Executive Management the gender distribution was one female and one male (50% to 50% split).Within the other management levels, as defined in the Danish Companies Act, at the end of 2025 there were four females and nine males (30.8% to 69.2% split)*. The Board of Directors has set a target of 30.8% of the underrepresented gender for other management levels to be reached by 30 June 2026.During 2025 to further enhance equal gender balance especially in leadership positions, and in accordance with the Company’s policy on Employee Belonging, there has been a focus on setting specific targets for gender representation at senior leadership level, applying unbiased recruitment and promotion practices, ensuring equal pay for equal work through global job architecture and job grading infrastructure and providing flexible work arrangements to support work-life balance for all employees.*Other management levels only include management positions in Scandinavian Tobacco Group A/S with managerial responsibilities for employees of Scandinavian Tobacco Group A/S. Other management levels are not equal to Senior Leadership levels as reported under the ESRS requirement.By focusing on these initiatives, we aim to create an environment where all employees, regardless of gender, have equal opportunities for career development and leadership roles. This commitment to gender representation is not just about fairness; it's about leveraging the full potential of our talent pool to drive innovation and success.</mrv:StatementOfTheDiversityPolicies>
   <fsa:AverageNumberOfEmployees contextRef="ctx-1"
                                 decimals="0"
                                 id="f0__s8__7__46"
                                 unitRef="pure">9144</fsa:AverageNumberOfEmployees>
   <fsa:AverageNumberOfEmployees contextRef="ctx-42"
                                 decimals="0"
                                 id="f0__s8__8__46"
                                 unitRef="pure">9630</fsa:AverageNumberOfEmployees>
   <sob:StatementByExecutiveAndSupervisoryBoards contextRef="ctx-1" id="f0__s8__7__199" xml:lang="en">MANAGEMENT’S STATEMENTThe Board of Directors and Executive Management have today considered and adopted the Annual Report of Scandinavian Tobacco Group A/S for the financial year 1 January – 31 December 2025.The Consolidated Financial Statements are prepared in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act, and the Parent Company Financial Statements have been prepared in accordance with the Danish Financial Statements Act. Management’s Review has been prepared in accordance with the Danish Financial Statements Act.In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position at 31 December 2025 of the Group and the Parent Company and of the results of the Group and Parent Company operations and consolidated cash flows for 2025.In our opinion, Management’s Review includes a fair review of the development in the operations and financial circumstances of the Group and the Parent Company, of the results for the year and of the financial position of the Group and the Parent Company as well as a description of the most significant risks and elements of uncertainty, which the Group and the Parent Company are facing.Additionally, the sustainability statement, which is part of Management’s Review, has been prepared, in all material respects, in accordance with paragraph 99 a of the Danish Financial Statements Act. This includes compliance with the European Sustainability Reporting Standards (ESRS) including that the process undertaken by Management to identify the reported information (the “Process”) is in accordance with the description set out in the section titled Double Materiality Assessment. Furthermore, disclosures within the subsection titled EU taxonomy in the Sustainability Statement are, in all material respects, in accordance with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).The sustainability statement includes forward-looking statements based on disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected.In our opinion, the Annual Report of Scandinavian Tobacco Group A/S for the financial year 1 January to 31 December 2025 with the file name 5299003KG4JS99TRML67-2025-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.We recommend the Annual Report to be adopted at the Annual General Meeting.</sob:StatementByExecutiveAndSupervisoryBoards>
   <cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="ctx-27" id="f0__s8__7__202" xml:lang="en">Niels Frederiksen</cmn:NameAndSurnameOfMemberOfExecutiveBoard>
   <cmn:TitleOfMemberOfExecutiveBoard contextRef="ctx-27" id="f0__s8__7__203" xml:lang="en">Chief Executive Officer</cmn:TitleOfMemberOfExecutiveBoard>
   <cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-33" id="f0__s8__7__211" xml:lang="en">Ricardo Cesar DeAlmeida Oberlander</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
   <cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-29" id="f0__s8__7__206" xml:lang="en">Henrik Brandt</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
   <cmn:TitleOfMemberOfSupervisoryBoard contextRef="ctx-29" id="f0__s8__7__207" xml:lang="en">Chair of the Board of Directors</cmn:TitleOfMemberOfSupervisoryBoard>
   <sob:PlaceOfSignatureOfStatement contextRef="ctx-1" id="f0__s8__7__200" xml:lang="en">Gentofte</sob:PlaceOfSignatureOfStatement>
   <sob:DateOfApprovalOfAnnualReport contextRef="ctx-1" id="f0__s8__7__201">2026-03-04</sob:DateOfApprovalOfAnnualReport>
   <cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-30" id="f0__s8__7__208" xml:lang="en">Marlene Forsell</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
   <cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-36" id="f0__s8__7__214" xml:lang="en">Thomas Thomsen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
   <cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="ctx-28" id="f0__s8__7__204" xml:lang="en">Marianne Rørslev Bock</cmn:NameAndSurnameOfMemberOfExecutiveBoard>
   <cmn:TitleOfMemberOfExecutiveBoard contextRef="ctx-28" id="f0__s8__7__205" xml:lang="en">Chief Financial Officer</cmn:TitleOfMemberOfExecutiveBoard>
   <cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-31" id="f0__s8__7__209" xml:lang="en">Dianne Neal Blixt</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
   <cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-34" id="f0__s8__7__212" xml:lang="en">Jörg Biebernick</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
   <cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-37" id="f0__s8__7__215" xml:lang="en">Karsten Dam Larsen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
   <cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-32" id="f0__s8__7__210" xml:lang="en">Anders C. Obel</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
   <cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-35" id="f0__s8__7__213" xml:lang="en">Hanne Malling</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
   <arr:AddresseeOfAuditorsReportOnAuditedFinancialStatements contextRef="ctx-1" id="f0__s8__7__217" xml:lang="en">To the shareholders of Scandinavian Tobacco Group A/S</arr:AddresseeOfAuditorsReportOnAuditedFinancialStatements>
   <arr:OpinionOnAuditedFinancialStatements contextRef="ctx-1" id="f0__s8__7__218" xml:lang="en">Our opinionIn our opinion, the Consolidated Financial Statements give a true and fair view of the Group’s financial position at 31 December 2025 and of the results of the Group’s operations and cash flows for the financial year 1 January to 31 December 2025 in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act.Moreover, in our opinion, the Parent Company Financial Statements give a true and fair view of the Parent Company’s financial position at 31 December 2025 and of the results of the Parent Company’s operations for the financial year 1 January to 31 December 2025 in accordance with the Danish Financial Statements Act.Our opinion is consistent with our Auditor’s Long-form Report to the Audit Committee and the Board of Directors.What we have audited The Consolidated Financial Statements of Scandinavian Tobacco Group A/S for the financial year 1 January to 31 December 2025 comprise the income statement and statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated cash flow statement and the notes, including material accounting policy information.The Parent Company Financial Statements of Scandinavian Tobacco Group A/S for the financial year 1 January to 31 December 2025 comprise the income statement, the balance sheet, the statement of changes in equity and the notes, including material accounting policy information. Collectively referred to as the “Financial Statements”.</arr:OpinionOnAuditedFinancialStatements>
   <arr:DescriptionOfQualificationsOfAuditedFinancialStatements contextRef="ctx-1" id="f0__s8__7__219" xml:lang="en">Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s responsibilities for the audit of the Financial Statements section of our report.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.IndependenceWe are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) as applicable to audits of financial statements of public interest entities, and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014 were not provided.AppointmentWe were first appointed auditors of Scandinavian Tobacco Group A/S on 26 April 2017 for the financial year 2017. We have been reappointed annually by shareholder resolution for a total period of uninterrupted engagement of 9 years including the financial year 2025. </arr:DescriptionOfQualificationsOfAuditedFinancialStatements>
   <arr:KeyAuditMattersAudit contextRef="ctx-1" id="f0__s8__7__220" xml:lang="en">Key audit mattersKey audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2025. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.Key audit matterImpairment of trademarksThe principal risks are in relation to Management’s assessment of the carrying values of the trademarks reclassified during the year from having indefinite useful lives to finite-lives as well as the trademarks with indefinite useful lives. In accordance with IFRS Accounting Standards as adopted by the EU, Management carried out an impairment test for reclassified trademarks to assess if any potential impairment exists. In addition, the annually required impairment test was carried out for trademarks with indefinite useful lives. Relevant assumptions in both tests include Management’s assumptions related to future timing and amount of cash flows that are used to project the recoverability of the carrying amount. There are specific risks related to macroeconomic conditions and volatile earnings caused by volume decline, intensified competition and changed regulations in key markets. Bearing in mind the generally long-lived nature of the assets, the significant assumptions are Management’s view of prices, volumes, costs, useful lives, terminal growth rates and discount rates. We focused on this area, as there is a high level of subjectivity exercised by Management in determining significant assumptions and estimating cash flows. The key assumptions are disclosed in note 3.1to the Consolidated Financial Statements.How our audit addressed the key audit matterWe assessed whether the Group’s accounting policies are in accordance with the IFRS Accounting Standards as adopted by the EU. We updated our understanding of relevant controls, including Group controlling procedures and IT systems, and business processes regarding impairment testing of trademarks. For the controls, we assessed whether they were designed and implemented to effectively address the risk of material misstatement. We obtained and assessed the impairment tests of the reclassified trademarks during the year to finite-lives as well as the trademarks with indefinite useful lives. We examined the methodology used by Management to assess the carrying amounts of trademarks. We the mathematical accuracy of the relevant value-in-use models prepared by Management. We made use of our internal valuation specialists to independently challenge the key inputs used in calculating the discount rates and to assess the methodologies applied. We challenged Management and evaluated the appropriateness of the significant assumptions regarding prices, volumes, costs, useful lives, terminal growth rates and discount rates applied by Management in the net present value. As part of this we also assessed Management’s sensitivity calculations and assessed the appropriateness of the disclosures.</arr:KeyAuditMattersAudit>
   <arr:StatementOnManagementsReviewAuditorsReportOnAuditedFinancialStatements contextRef="ctx-1" id="f0__s8__7__221" xml:lang="en">Statement on Management reviewManagement is responsible for the Management review.Our opinion on the Financial Statements does not cover the Management review, and we do not as part of the audit express any form of assurance conclusion thereon.In connection with our audit of the Financial Statements, our responsibility is to read the Management review and, in doing so, consider whether the Management review is materially inconsistent with the Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. Moreover, we considered whether the Management review includes the disclosures required by the Danish Financial Statements Act. This does not include the requirements in paragraph 99 a related to the sustainability statement covered by the separate auditor’s limited assurance report hereon.Based on the work we have performed, in our view, the Management review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act, except for the requirements in paragraph 99 a related to the sustainability statement, cf. above. We did not identify any material misstatement in the Management review.</arr:StatementOnManagementsReviewAuditorsReportOnAuditedFinancialStatements>
   <arr:StatementOfExecutiveAndSupervisoryBoardsResponsibilityForFinancialStatements contextRef="ctx-1" id="f0__s8__7__222" xml:lang="en">Management’s responsibilities for the Financial StatementsManagement is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act and for the preparation of parent company financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.In preparing the Financial Statements, Management is responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so.</arr:StatementOfExecutiveAndSupervisoryBoardsResponsibilityForFinancialStatements>
   <arr:StatementOfAuditorsResponsibilityForAuditAndAuditPerformed contextRef="ctx-1" id="f0__s8__7__223" xml:lang="en">Auditor’s responsibilities for the audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.As part of an audit in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.Conclude on the appropriateness of Management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern.Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view.Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the Consolidated Financial Statements and the Parent Company Financial Statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied.From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter.</arr:StatementOfAuditorsResponsibilityForAuditAndAuditPerformed>
   <arr:AuditorsReportOnXbrlTagging contextRef="ctx-1" id="f0__s8__7__224" xml:lang="en">Report on compliance with the ESEF RegulationAs part of our audit of the Financial Statements we performed procedures to express an opinion on whether the annual report of Scandinavian Tobacco Group A/S for the financial year 1 January to 31 December 2025 with the filename 5299003KG4JS99TRML67-2025-12-31-en.zipis prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial Statements including notes.Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes:The preparing of the annual report in XHTML format;The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for all financial information required to be tagged using judgement where necessary;Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented in human-readable format; andFor such internal control as Management determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation.Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor’s judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The procedures include:Testing whether the annual report is prepared in XHTML format;Obtaining an understanding of the company’s iXBRL tagging process and of internal control over the tagging process;Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements including notes;Evaluating the appropriateness of the company’s use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified; Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; andReconciling the iXBRL tagged data with the audited Consolidated Financial Statements.In our opinion, the annual report of Scandinavian Tobacco Group A/S for the financial year 1 January to 31 December 2025 with the file name 5299003KG4JS99TRML67-2025-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.</arr:AuditorsReportOnXbrlTagging>
   <arr:SignatureOfAuditorsPlace contextRef="ctx-1" id="f0__s8__7__225" xml:lang="en">Hellerup</arr:SignatureOfAuditorsPlace>
   <arr:SignatureOfAuditorsDate contextRef="ctx-1" id="f0__s8__7__226">2026-03-04</arr:SignatureOfAuditorsDate>
   <cmn:NameOfAuditFirm contextRef="ctx-38" id="f0__s8__7__227" xml:lang="en">PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirm>
   <cmn:NameOfAuditFirm contextRef="ctx-39" id="f0__s8__7__228" xml:lang="en">PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirm>
   <cmn:IdentificationNumberCvrOfAuditFirm contextRef="ctx-38" id="f0__s8__7__229">33771231</cmn:IdentificationNumberCvrOfAuditFirm>
   <cmn:IdentificationNumberCvrOfAuditFirm contextRef="ctx-39" id="f0__s8__7__230">33771231</cmn:IdentificationNumberCvrOfAuditFirm>
   <cmn:NameAndSurnameOfAuditor contextRef="ctx-38" id="f0__s8__7__231" xml:lang="en">Michael Groth Hansen</cmn:NameAndSurnameOfAuditor>
   <cmn:DescriptionOfAuditor contextRef="ctx-38" id="f0__s8__7__232" xml:lang="en">State authorised public accountant</cmn:DescriptionOfAuditor>
   <cmn:IdentificationNumberOfAuditor contextRef="ctx-38" id="f0__s8__7__233">mne33228</cmn:IdentificationNumberOfAuditor>
   <cmn:NameAndSurnameOfAuditor contextRef="ctx-39" id="f0__s8__7__234" xml:lang="en">Anette Beltrão-Primdahl</cmn:NameAndSurnameOfAuditor>
   <cmn:DescriptionOfAuditor contextRef="ctx-39" id="f0__s8__7__235" xml:lang="en">State authorised public accountant</cmn:DescriptionOfAuditor>
   <cmn:IdentificationNumberOfAuditor contextRef="ctx-39" id="f0__s8__7__236">mne45854</cmn:IdentificationNumberOfAuditor>
   <arr:AuditorsReportOnSubstainabilityReport contextRef="ctx-1" id="f0__s8__7__238" xml:lang="en">To the shareholders of Scandinavian Tobacco Group A/SINDEPENDENT AUDITOR’S LIMITED ASSURANCE REPORT ON THE SUSTAINABILITY STATEMENTLimited assurance conclusionWe have conducted a limited assurance engagement on the sustainability statement of Scandinavian Tobacco Group A/S (the “Group”) included in the Management review (the “Sustainability Statement”) for the financial year 1 January – 31 December 2025.Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all material respects, in accordance with the Danish Financial Statements Act paragraph 99 a, including: compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to identify the information reported in the Sustainability Statement (the “Process”) is in accordance with the description set out in the section “Double Materiality Assessment”; andcompliance of the disclosures in the section “EU Taxonomy” of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).Basis for conclusion We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of historical financial information(“ISAE 3000 (Revised)”) and the additional requirements applicable in Denmark. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the Auditor’s responsibilities for the assurance engagement section of our report. Our independence and quality managementWe are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.Management’s responsibilities for the Sustainability StatementManagement is responsible for designing and implementing a process to identify the information reported in the Sustainability Statement in accordance with the ESRS and for disclosing this Process as included in the section “Double Materiality Assessment” of the Sustainability Statement. This responsibility includes:understanding the context in which the Group’s activities and business relationships take place and developing an understanding of its affected stakeholders;the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the Group’s financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term;the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying appropriate thresholds; andmaking assumptions that are reasonable in the circumstances.Management is further responsible for the preparation of the Sustainability Statement, which includes the information identified by the Process, in accordance with the Danish Financial Statements Act paragraph 99 a, including:compliance with the ESRS;preparing the disclosures as included in the section “EU Taxonomy” of the Sustainability Statement, in compliance with Article 8 of the Taxonomy Regulation;designing, implementing and maintaining such internal control that management determines is necessary to enable the preparation of the Sustainability Statement that is free from material misstatement, whether due to fraud or error; andthe selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasonable in the circumstances. Inherent limitations in preparing the Sustainability StatementIn reporting forward-looking information in accordance with ESRS, management is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected.Auditor’s responsibilities for the assurance engagementOur responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole. As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement. Our responsibilities in respect of the Process include:Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome of the Process; Considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and Designing and performing procedures to evaluate whether the Process is consistent with the Group’s description of its Process, as disclosed in the section “Double Materiality Assessment”. Our other responsibilities in respect of the Sustainability Statement include:Identifying where material misstatements are likely to arise, whether due to fraud or error; and Designing and performing procedures responsive to disclosures in the Sustainability Statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.Summary of the work performedA limited assurance engagement involves performing procedures to obtain evidence about the Sustainability Statement. The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Sustainability Statement.In conducting our limited assurance engagement, with respect to the Process, we: Obtained an understanding of the Process by performing inquiries to understand the sources of the information used by management; and reviewing the Group’s internal documentation of its Process; andEvaluated whether the evidence obtained from our procedures about the Process implemented by the Group was consistent with the description of the Process set out in the section “Double Materiality Assessment”.In conducting our limited assurance engagement, with respect to the Sustainability Statement, we:Obtained an understanding of the Group’s reporting processes relevant to the preparation of its Sustainability Statement including the consolidation processes by obtaining an understanding of the Group’s control environment, processes and information systems relevant to the preparation of the Sustainability Statement but not evaluating the design of particular control activities, obtaining evidence about their implementation or testing their operating effectiveness; Evaluated whether the information identified by the Process is included in the Sustainability Statement;Evaluated whether the structure and the presentation of the Sustainability Statement are in accordance with the ESRS;Performed inquiries of relevant personnel and analytical procedures on selected information in the Sustainability Statement;Performed substantive assurance procedures on selected information in the Sustainability Statement;Where applicable, compared disclosures in the Sustainability Statement with the corresponding disclosures in the financial statements and the Management review;Evaluated the methods, assumptions and data for developing estimates and forward-looking information; andObtained an understanding of the Group’s process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Sustainability Statement.</arr:AuditorsReportOnSubstainabilityReport>
   <arr:AddresseeOfAuditorsReportOnSubstainabilityReports contextRef="ctx-1" id="f0__s8__7__239" xml:lang="en">To the shareholders of Scandinavian Tobacco Group A/S</arr:AddresseeOfAuditorsReportOnSubstainabilityReports>
   <arr:IdentificationOfMattersOnWhichAssuranceReportIsProvidedAndDescriptionOfAssuranceEngagementSubstainabilityReport contextRef="ctx-1" id="f0__s8__7__240" xml:lang="en">Limited assurance conclusionWe have conducted a limited assurance engagement on the sustainability statement of Scandinavian Tobacco Group A/S (the “Group”) included in the Management review (the “Sustainability Statement”) for the financial year 1 January – 31 December 2025.</arr:IdentificationOfMattersOnWhichAssuranceReportIsProvidedAndDescriptionOfAssuranceEngagementSubstainabilityReport>
   <arr:OpinionOnSubjectMatterOfAssuranceReportSubstainabilityReport contextRef="ctx-1" id="f0__s8__7__241" xml:lang="en">Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all material respects, in accordance with the Danish Financial Statements Act paragraph 99 a, including: compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to identify the information reported in the Sustainability Statement (the “Process”) is in accordance with the description set out in the section “Double Materiality Assessment”; andcompliance of the disclosures in the section “EU Taxonomy” of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).</arr:OpinionOnSubjectMatterOfAssuranceReportSubstainabilityReport>
   <arr:StatementOfAuditorsResponsibilitySubstainabilityReport contextRef="ctx-1" id="f0__s8__7__242" xml:lang="en">Auditor’s responsibilities for the assurance engagementOur responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole. As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement. Our responsibilities in respect of the Process include:Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome of the Process; Considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and Designing and performing procedures to evaluate whether the Process is consistent with the Group’s description of its Process, as disclosed in the section “Double Materiality Assessment”. Our other responsibilities in respect of the Sustainability Statement include:Identifying where material misstatements are likely to arise, whether due to fraud or error; and Designing and performing procedures responsive to disclosures in the Sustainability Statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.</arr:StatementOfAuditorsResponsibilitySubstainabilityReport>
   <arr:SignatureOfSubstainabilityAuditorsPlace contextRef="ctx-1" id="f0__s8__7__243" xml:lang="en">Hellerup</arr:SignatureOfSubstainabilityAuditorsPlace>
   <arr:SignatureOfSubstainabilityAuditorsDate contextRef="ctx-1" id="f0__s8__7__244">2026-03-04</arr:SignatureOfSubstainabilityAuditorsDate>
   <cmn:NameOfAuditFirmSubstainability contextRef="ctx-40" id="f0__s8__7__245" xml:lang="en">PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirmSubstainability>
   <cmn:NameOfAuditFirmSubstainability contextRef="ctx-41" id="f0__s8__7__246" xml:lang="en">PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirmSubstainability>
   <cmn:IdentificationNumberCvrOfAuditFirmSubstainability contextRef="ctx-40" id="f0__s8__7__247">33771231</cmn:IdentificationNumberCvrOfAuditFirmSubstainability>
   <cmn:IdentificationNumberCvrOfAuditFirmSubstainability contextRef="ctx-41" id="f0__s8__7__248">33771231</cmn:IdentificationNumberCvrOfAuditFirmSubstainability>
   <cmn:NameAndSurnameOfSubstainabilityAuditor contextRef="ctx-40" id="f0__s8__7__249" xml:lang="en">Michael Groth Hansen</cmn:NameAndSurnameOfSubstainabilityAuditor>
   <cmn:DescriptionOfSubstainabilityAuditor contextRef="ctx-40" id="f0__s8__7__250" xml:lang="en">State authorised public accountant</cmn:DescriptionOfSubstainabilityAuditor>
   <cmn:fIdentificationNumberOfSubstainabilityAuditor contextRef="ctx-40" id="f0__s8__7__251">mne33228</cmn:fIdentificationNumberOfSubstainabilityAuditor>
   <cmn:NameAndSurnameOfSubstainabilityAuditor contextRef="ctx-41" id="f0__s8__7__252" xml:lang="en">Anette Beltrão-Primdahl</cmn:NameAndSurnameOfSubstainabilityAuditor>
   <cmn:DescriptionOfSubstainabilityAuditor contextRef="ctx-41" id="f0__s8__7__253" xml:lang="en">State authorised public accountant</cmn:DescriptionOfSubstainabilityAuditor>
   <cmn:fIdentificationNumberOfSubstainabilityAuditor contextRef="ctx-41" id="f0__s8__7__254">mne45854</cmn:fIdentificationNumberOfSubstainabilityAuditor>
   <gsd:NameOfReportingEntity contextRef="ctx-1" id="f0__s8__7__259" xml:lang="en">Scandinavian Tobacco Group A/S</gsd:NameOfReportingEntity>
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   <gsd:AddressOfSubmittingEnterprisePostcodeAndTown contextRef="ctx-1" id="f0__s8__7__263" xml:lang="en">2820 Gentofte</gsd:AddressOfSubmittingEnterprisePostcodeAndTown>
   <gsd:AddressOfReportingEntityPostCodeIdentifier contextRef="ctx-1" id="f0__s8__7__264" xml:lang="en">2820 </gsd:AddressOfReportingEntityPostCodeIdentifier>
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   <gsd:InformationOnTypeOfSubmittedReport contextRef="ctx-1" id="f0__s1__72__15">Annual report</gsd:InformationOnTypeOfSubmittedReport>
   <cmn:TypeOfAuditorAssistance contextRef="ctx-1" id="f0__s1__72__16">Auditor's report on audited financial statements</cmn:TypeOfAuditorAssistance>
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   <gsd:ReportingPeriodStartDate contextRef="ctx-1" id="f0__s1__72__20">2025-01-01</gsd:ReportingPeriodStartDate>
   <gsd:ReportingPeriodEndDate contextRef="ctx-1" id="f0__s1__72__21">2025-12-31</gsd:ReportingPeriodEndDate>
   <gsd:PrecedingReportingPeriodStartDate contextRef="ctx-1" id="f0__s1__72__22">2024-01-01</gsd:PrecedingReportingPeriodStartDate>
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   <fsa:ClassOfReportingEntity contextRef="ctx-1" id="f0__s1__72__43">Reporting class D</fsa:ClassOfReportingEntity>
   <arr:TypeOfModifiedOpinionOnAuditedFinancialStatements contextRef="ctx-1" id="f0__s1__72__47">Opinion</arr:TypeOfModifiedOpinionOnAuditedFinancialStatements>
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