Borregaard's sustainability ambitions are deeply rooted in our business model and strategic direction. In 2024, we continued to deliver on our commitment to climate responsibility, guided by the Science Based Targets Initiative with a clearly defined transition plan.

Delivering on Climate Ambitions

Borregaard is committed to reducing greenhouse gas emissions in line with the 1.5°C pathway. To ensure that our GHG reductions effort align with the targets set in the Paris Agreement, we have committed to near- and long-term science-based targets for our Scope 1, 2 and 3 emissions. These targets have been approved by the Science Based Targets initiative.

The transition plan, approved by the Board, was initially presented at our Capital Markets Day in September 2022. Since then, any updates to the plan have been shared during our quarterly presentations. Our science-based targetsand transition plan set the course towards net zero emissions for all Scopes by 2050. In 2024, we made significant progress:

• 6% reduction in Scope 1 and 2 GHG emissions, primarily through energy efficiency and the electrification of spray dryers.

• Completion of a NOK 230 million electrification project at the Sarpsborg biorefinery-removing reliance on LNG and reducing emissions by 30,000 tonnes of CO₂ annually.

• Announcement of a NOK 275 million upgrade to electricity transformation capacity-laying the foundation for future electrification and low-carbon growth.

• New 10-year hydropower agreement (88 GWh annually from 2025), strengthening our renewable energy portfolio and securing predictable, clean energy for years to come.

Green Growth and Innovation

Sustainability is not only a responsibility-it is a driver of value creation and innovation at Borregaard. In 2024, we continued to develop greener alternatives and enable customers to reduce their environmental footprints:

• Launch of bio-based dispersing agents for batteries, sustainable binders for aquaculture, and formaldehyde-free solutions for homecare, industrial cleaning and agriculture.

• Investment in a new green technology platform and demonstration plant (NOK 100 million), enabling next-generation lignin-based biopolymers and granulation technologies.

• Expansion of production capacity for specialised biopolymers to support growth in battery and agrochemical markets (NOK 80 million investment).

High ESG standard

Borregaard is assessed by several independent third parties on sustainability, providing valuable insights to inform our stakeholders about our high ESG standard. EcoVadis evaluates companies in the value chain based on various ESG parameters, and in 2024, Borregaard achieved Gold status (top 5%).

CDP evaluates companies on climate, water security, and forests, and Borregaard has received an A/A- ratings in all these categories for the past years. In 2024, our sustainability reporting fully aligns with the EU Corporate Sustainability Reporting Directive (CSRD) and was verified by a third party. The sustainability reporting covers most of the topics included in the CDP questionnaire.

Borregaard's path is clear: deliver on our science-based targets, invest in sustainable technologies, and provide our customers with solutions that reduce their climate and environmental impact.