Our supply chain spans across multiple countries and regions, including areas classified as high-risk. To ensure compliance and minimize negative impact, Hydroscand uses a structured and digitalized approach to supplier evaluation and engagement. We track progress using sustainability KPIs and collaborate closely with key suppliers.

Key elements of our responsible sourcing model include:

• Supplier segmentation (A–C categories) based on spend and strategic relevance

• Self-assessments and on-site CSR audits

• Digital supplier management via Kodiak Hub, including ESG performance tracking

• Mandatory training for purchasers on sustainability and business ethics

• Conflict mineral compliance, REACH and RoHS alignment

This approach allows us to integrate sustainability into every step of procurement—from selection to performance review.

Reducing our climate footprint means focusing where the impact is highest. Scope 3 emissions, which represent 90% of Hydroscand’s total emissions, are primarily linked to purchased goods and services. That’s why supplier collaboration is at the core of our climate strategy.

We engage suppliers in identifying emission hotspots, improving material selection, and optimizing logistics. In 2024, we significantly increased activity-based emissions data at the product level to improve transparency and support data-driven decisions.

Our goal is to align with science-based targets by 2025—and our suppliers are key to getting there.

We believe that what gets measured gets managed. In 2024, we reached:

• 100% CSR assessment completion among A-suppliers

• 85% of A-suppliers signed the Supplier Code of Conduct

• 70–78% training completion among local and central purchasers

While these are strong results, we are committed to continuous improvement—especially in engaging smaller suppliers and ensuring deeper ESG integration across all categories.