SKF AB

Even if the pathway to zero for a specific sub-target is not fully defined, we must find viable options to achieve them through direct means, advocacy or a combination of both. The transition of global steel production to carbon neutrality is a massive undertaking and there are limitations to how much change SKF can affect unilaterally. Therefore, we have joined with other industrial steel consumers to advocate for the necessary structural changes by joining the SteelZero and ResponsibleSteel initiatives. [...] Advocacy of this kind is an important part of our overall approach. The global transformation to carbon net zero emissions cannot be achieved by the business community alone – the market failures exposed by this crisis must be addressed through bold, coordinated policy initiatives by governments around the world. Through engagement in multi-stakeholder initiatives, such as SteelZero, RE100 and SBTi, we intend to advocate for positive and binding outcomes, for example from the UN climate negotiations. These outcomes should include policies and regulations which will internalize the true cost of carbon across all markets and will incentivize and support the industrialization and deployment of relevant clean technology solutions. [...] SKF has established a global net zero program which is tasked with coordinating and driving the many actions and changes that need to take place across the organization. A program board has been established with senior representatives from the regions, business areas and functions such as R&D, purchasing, sales and communications. [...] For example, the Group Management members responsible for manufacturing in SKF (will continue, via their normal operational review meetings and twice yearly EHS and Sustainability reviews to follow up on the energy and CO2e performance of the factories and logistics operations. Similar meetings will then occur at cluster (group of similar factories) and factory level.

9. Does the entity have a specified Committee of the At SKF India, the oversight and execution of Business Responsibility Policies are entrusted to the leaders of various key functions, including Ethics, Legal, Compliance, CSR, and Sustainability. The Board is periodically apprised on the progress against the ESG issues and sustainability matters. The Board also oversees the disclosures relating sustainability.

The Sustainability and Ethics Committee held three meetings in 2024. More on SKFs Sustainability and Ethics Committee's role in SKF's sustainability governance is found in the Sustainability Report on page 84. The members of the committee were present at the meetings as shown in the table below. [...] The Sustainability and Ethics Committee oversees SKF's strategy related to sustain­ability and ethics. The work also includes to review, ­monitor and keep informed on the strategic objectives, initiatives, and the implementation thereof for a sustain­able development, mitigation and action on impacts, risks and opportunities of SKF and monitoring of progress against externally communicated sustainability targets related to among other things climate, environment and safety. Based on SKF Care, the committee also handles items relating to SKF's values, employee organization including talent acquisition, development, retention and planning, business and work ethics, compliance, community care, environment, health and safety.

Even if the pathway to zero for a specific sub-target is not fully defined, we must find viable options to achieve them through direct means, advocacy or a combination of both. The transition of global steel production to carbon neutrality is a massive undertaking and there are limitations to how much change SKF can affect unilaterally. Therefore, we have joined with other industrial steel consumers to advocate for the necessary structural changes by joining the SteelZero and ResponsibleSteel initiatives. [...] Advocacy of this kind is an important part of our overall approach. The global transformation to carbon net zero emissions cannot be achieved by the business community alone – the market failures exposed by this crisis must be addressed through bold, coordinated policy initiatives by governments around the world. Through engagement in multi-stakeholder initiatives, such as SteelZero, RE100 and SBTi, we intend to advocate for positive and binding outcomes, for example from the UN climate negotiations. These outcomes should include policies and regulations which will internalize the true cost of carbon across all markets and will incentivize and support the industrialization and deployment of relevant clean technology solutions.

The Sustainability and Ethics Committee held three meetings in 2024. More on SKFs Sustainability and Ethics Committee's role in SKF's sustainability governance is found in the Sustainability Report on page 84. The members of the committee were present at the meetings as shown in the table below. [...] The Sustainability and Ethics Committee consists of the Vice Chair of the Board, Håkan Buskhe, as Chair and the board members Hock Goh, Geert Follens, Beth Ferreira and Niko Pakalén. The Sustainability and Ethics Com­mittee oversees SKF's strategy related to sustain­ability and ethics. The work also includes to review, ­monitor and keep informed on the strategic objectives, initiatives, and the implementation thereof for a sustain­able development, mitigation and action on impacts, risks and opportunities of SKF and monitoring of progress against externally communicated sustainability targets related to among other things climate, environment and safety. Based on SKF Care, the committee also handles items relating to SKF's values, employee organization including talent acquisition, development, retention and planning, business and work ethics, compliance, community care, environment, health and safety.

SKF maintains a central list of the organizations SKF is a member of. This list is reviewed annually to make sure that the organizations are in line with SKF's values and commitments. [...] Most non-compliance cases are managed by SKF's regional purchasing offices. Significant deviations are escalated to SKF Group's Responsible Sourcing Committee. First and foremost, the work focuses on establishing a strong partnership and developing targeted suppliers. However, suppliers that fail to address critical issues over time risk having their contracts with SKF terminated.

Advocacy of this kind is an important part of our overall approach. The global transformation to carbon net zero emissions cannot be achieved by the business community alone – the market failures exposed by this crisis must be addressed through bold, coordinated policy initiatives by governments around the world. Through engagement in multi-stakeholder initiatives, such as SteelZero, RE100 and SBTi, we intend to advocate for positive and binding outcomes, for example from the UN climate negotiations. These outcomes should include policies and regulations which will internalize the true cost of carbon across all markets and will incentivize and support the industrialization and deployment of relevant clean technology solutions. [...] SKF has established a global net zero program which is tasked with coordinating and driving the many actions and changes that need to take place across the organization. A program board has been established with senior representatives from the regions, business areas and functions such as R&D, purchasing, sales and communications. Under the renewed focus from this board and with the full support and drive from the Group Management, the net zero journey has accelerated in 2022.

The Sustainability and Ethics Committee consists of the Vice Chair of the Board, Håkan Buskhe, as Chair and the board members Hock Goh, Geert Follens, Beth Ferreira and Niko Pakalén. The Sustainability and Ethics Com­mittee oversees SKF's strategy related to sustain­ability and ethics. The work also includes to review, ­monitor and keep informed on the strategic objectives, initiatives, and the implementation thereof for a sustain­able development, mitigation and action on impacts, risks and opportunities of SKF and monitoring of progress against externally communicated sustainability targets related to among other things climate, environment and safety. Based on SKF Care, the committee also handles items relating to SKF's values, employee organization including talent acquisition, development, retention and planning, business and work ethics, compliance, community care, environment, health and safety. The Sustainability and Ethics Committee held three meetings in 2024. More on SKFs Sustainability and Ethics Committee's role in SKF's sustainability governance is found in the Sustainability Report on page 84.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]SKF is taking part in several different organizations on a Group and country level which is a good way to interact and to advocate for sustainable solutions. However, It is important that all of these activities reflect the values of our company. For this reason SKF has put certain procedures and guidance in place, following the principles of the Global Standard on Responsible Corporate Climate Lobbying, to make sure that we are not supporting any organization that does not share our strategic ambitions e.g. by lobbying against climate action or which is not in line with the values set out in SKF Care and our Code of Conduct. The SKF Code of Conduct is the fundamental building block for all SKF activities and must always be complied with. In order to make sure that organisations in which we are members are in line with the SKF Code of Conduct, SKF's undertakings and will to promote and advocate for sustainable solutions, the organizations shall be in line with the principles set out in the SKF Code of Conduct and the Paris Climate Agreement 1,5 degree target.

Group Sustainability, through the Director of Sustainability, is maintaining a list of all organizations to which the SKF Group Companies are a member of. This list is being reviewed and updated annually together with the local business areas. If an organization does not comply with these principles the issue shall be escalated and SKF shall endeavor to change the organization or exit.

According the the Code of Conduct and the communication policy only the CEO may comment on political issues on behalf of the company. However, this does not apply to the advocating of action to mitigate the effects of the climate crisis and to reach the 1,5 degree target. This is one of the reasons SKF interacts with politicians and are active in organisations such as Steel Zero, Responsible Steel, the ICC etc.