Managing sustainability

Kalmar is committed to the principles of the UN Global Compact, OECD’s guidelines for multinational enterprises, the UN Guiding Principles on Business and Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. These commitments are reflected in the Kalmar Code of Conduct, which describes the general requirements, guidelines, and ethical principles and defines our way of working. The practical implementation of the Code of Conduct is ensured through policies such as our sustainability policy, and through processes and training.

Kalmar’s Board of Directors’ (BoD) holds ultimate responsibility for overseeing the management of environmental, social and governance aspects. A designated Board member oversees sustainability

impacts, risks, and opportunities, and keeps the Board informed on related matters. This member ensures that these factors are considered in decision-making, company strategy, and Kalmar’s Code of Conduct. The Board confirms Kalmar’s strategic implications of sustainability and approves the company’s material sustainability topics. As sustainability is one of the company’s strategic initiatives, the Board is also responsible for setting Kalmar’s ambition level for sustainability-related matters. In addition, the Board approves Kalmar’s sustainability targets, cascades them to the CEO and Kalmar Leadership Team and monitors progress. Moreover, the Board approves Kalmar’s Code of Conduct.

Kalmar’s Audit and Risk Management Committee (ARC) is responsible for reviewing the auditing work, the sustainability reporting, the internal controls, the scope of the internal and external audits, and other procedures for managing Kalmar’s risks. Simultaneously, the ARC reviews sustainability-related risks as part of the general enterprise risk management (ERM) process and monitors compliance with relevant sustainability regulations.

The Kalmar Leadership Team (KLT) is responsible for assisting the CEO in preparing the company’s strategy and operative management in accordance with targets set by the Board and the CEO. The KLT reviews and approves the company’s sustainability-related policies and targets and decides on resourcing and actions needed to develop, implement and follow up on them.

The company functions supporting target implementation include, Strategy, Sustainability (including environment and safety management) and Technology, Human Resources, Legal & Compliance, and Sourcing. Kalmar’s Senior Vice President Strategy, Sustainability & Technology is responsible for overseeing Kalmar’s sustainability target setting and the implementation of needed actions. The Leadership Team is chaired by the CEO, who is responsible for reporting to the Board on progress and action plans.