E4 Biodiversity and ecosystems

ESRS 2, IRO-1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities

The risk analyses indicate that impacts on biodiversity are likely to occur within the sector’s typical supply chains. However, AddLife has not carried out any review of the Group’s specific suppliers and their production facilities, nor any consultations with, for example, local communities. In its double materiality assessment, AddLife has taken into account dependencies related to biodiversity, ecosystems and ecosystem services in relation to negative impacts and risks. No material risks or opportunities have been identified, neither in the Group’s own operations or in the upstream and downstream value chain. The assessment has been made at an aggregated level and covers transition risks, physical risks and systemic risks as a whole.

E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy and business model

Based on AddLife’s double materiality assessment, the Group has not identified any material financial risks related to biodiversity and ecosystems. AddLife’s business model and strategy are therefore currently assessed to be sufficiently robust in relation to the identified ecosystem-related physical risks, transition risks and systemic risks in the short term (1 year), medium term (1–5 years) and long term (more than 5 years), in accordance with the definitions in the ESRS. This assessment is based on the fact that AddLife’s own operations are mainly conducted in environments with limited direct impact on sensitive ecosystems, and that expected regulatory changes are not assessed to have material financial effects. AddLife has not engaged in dialogue with external stakeholders related to biodiversity, as any potential impacts are assessed to occur far upstream in the value chain and are difficult to address through targeted dialogue.

E4-2 Policies related to biodiversity and ecosystems

During the reporting period, AddLife updated its Code of Conduct and Supplier Code of Conduct in order to clarify the Group’s commitment to reducing environmental impact and promoting sustainable development in the supply chain. Preventing and reducing impacts on biodiversity and ecosystems throughout the value chain is included within the scope of this commitment and is addressed in general terms in both governing documents. The updated governing documents were adopted by the Board of Directors after the end of the financial year. In addition to these governance documents, AddLife has no other Group‑wide policy that specifically governs impacts related to biodiversity and ecosystems. For further information on AddLife’s Code of Conduct and Supplier Code of Conduct in their entirety, see “Code of Conduct and group-wide policies” in chapter G1 Business conduct.

E4-3 Actions and resources in relation to climate change policies

During the reporting period, AddLife has started to implement the Group’s sustainability due diligence process in the supply chain. Initially, the most material and strategic areas will be prioritised, but over time the process will be applicable to all material sustainability matters that have been identified as part of the Group’s double materiality assessment, in order to proactively manage negative impacts and risks in the upstream value chain. This includes climate- and environment-related matters, including biodiversity and ecosystems. AddLife will implement the process gradually within the Group and prioritise based on the subsidiaries’ capacity and maturity, customer requirements and the complexity of the sustainability matters. During the reporting period, AddLife has monitored the issue of biodiversity and ecosystems from a compliance perspective. For further information on the sustainability due diligence process in the supply chain, see chapter G1 Business conduct.

E4-4 Targets related to biodiversity and ecosystems

AddLife’s targets related to biodiversity and ecosystems align with the Group’s targets for sustainability in the supply chain. For more information on the target for sustainability in the supply chain, see “Targets related to business conduct” in chapter G1 Business conduct. In addition to this target, AddLife currently has no additional group-wide target that more specifically relates to impacts connected to biodiversity and ecosystems.