ESG Policy

M&J Recycling’s (M&J) purpose is to help solve the World’s waste challenge. Being a responsible and sustainable company is an integrated part of this purpose. As a portfolio company of A. Ahlström Oy (Ahlström), we have the best conditions to achieve convincing ESG (environment, social and governance) results.

Purpose and scope

The purpose of this policy is to define the framework and scope of sustainability. It describes the roles and responsibility for fulfilling the ESG targets supplemented by M&J’s Code of Conduct and other policies. ESG is part of our strategy, and targets are reviewed annually. We have adequate processes and resources to manage and monitor sustainability performance. The policy applies to all M&J employees and is approved by our board of directors.

Our three focus areas

We respect Ahlström guidelines by making targeted efforts in three specific focus areas:

• Climate and Resource Efficiency We will contribute to a modern society with a responsible and ambitious approach to emissions and general material efficiency in our products.
• Employee well-being We invest in employee wellbeing as it leads to increased employee engagement, reduced sickness absence and higher performance and productivity.
• Business ethics We are a responsible company and promote a high level of integrity among our employees. This approach forms a vital part of our company culture.

A special effort for children

Ahlström Collective Impact (ACI) is an initiative in partnership with UNICEF Finland, the UN organization for child rights. As part of the Ahlström portfolio, we act together with other companies in the ACI network to create awareness of child rights. ACI has a special focus on education of children to enable opportunities in life.

Climate and resource efficiency

By focusing on process optimization and new technologies for our products, we work hard on reducing our carbon footprint. We are uncompromising when it comes to utilizing resources optimally.

We have assessed the material sustainability topics in our industry and selected the following focus areas:

• controlling and reducing the CO2 footprint.
• embed sustainability targets in product development, which helps customers reduce their environmental impact.

The following key objectives and Key Performance Indicators (KPIs) have been defined:

• Sustainable impact
• 40% reduction of CO2 emission per produced unit (Scope 1+2 in own manufacturing). Baseline 2021 level (by 2025).
• R&D projects with sustainability target defined (100% of new R&D projects, measured annually). As a global company our global supply chain plays a vital part in how we operate. We make sure to help existing suppliers improve their climate and resource efficiency. New suppliers are always selected based on their willingness to work seriously and in a structured manner with ESG.
  
  

Employee well-being

Employee well-being is key to having a successful business and therefore also for developing leading businesses. We believe that focusing on and improving employee satisfaction increases employee commitment and motivation as well as quality and customer satisfaction.

• We emphasize good leadership and strive to create a working environment with high focus on well-being, health & safety, as well as the continuous development of our employees.
• We request that all employees are treated equally, fairly and with respect, regardless of ethnicity, nationality, gender, sexual orientation, faith, religion, age or other characteristics protected by law.
• We ensure employee rights, equal pay, diversity and inclusion, human capital development, and women in senior management.
• We respect the rights of all employees to form and join trade unions and to bargain collectively. The following key objectives and Key Performance Indicators (KPIs) have been defined:

• Sustainable workplace
• Average annual employee wellbeing score ≥ 7,3 (On a scale from 0-10, Level 2025)
• Employee turnover = < 10% (Level 2025)
• Annual accident frequency = 0 (Level 2025)

Business ethics

M&J support globally recognized human rights and complies with laws, regulations, and ethical principles. Our ESG policy defines the expectations we have for our business practices, including our employees, partners, and suppliers. The following key objectives and Key Performance Indicators (KPIs) have been defined:

• Sustainable business
• Code of Conduct training of own employees (100% of own workforce measured annually)
• Sustainable sourcing
• Suppliers committing to M&J's Code of Conduct (100% by end of 2025, measured annually)

Stakeholder engagement

M&J address the sustainability issues that are most relevant to the company, always based on where the effort makes the biggest difference. Our most important sustainability goals are identified and prioritised in dialogue with relevant stakeholders. We act responsibly and in a transparent manner in our contact with our stakeholders.

Control and reporting

M&J are transparent in Sustainability long-term efforts and development. Objectives and KPIs are presented to top management on a regular basis. We are committed to the UN Global Compact and its ten principles, the UN Sustainable Development Goals, and the ILO conventions, as well as the Universal Declaration of Human Rights We report publicly on the sustainability development in the “Communication on Progress Report” to UN Global Compact and in the annual report. Through the M&J whistleblowing system, employees and third parties can report suspected violations of law or breaches of policies and guidelines.