Blum Sustainability Report 2022


Sustainabilit y at Blum 2022

3 Who believes they can save the world alone? It’s an impossible task on our own, but each and every one of us can play our part – no matter how small or large. Companies have a particular responsibility in this regard, as their business activities have a significant impact on people, the economy and the environment. We at Blum take this sense of duty very seriously and it is an integral part of our corporate strategy. Recognising and addressing our responsibilities is challenging, but we have been doing it resolutely for many years now. We are always developing concrete strategies and we align our actions with the United Nations’ 17 objectives for sustainable development. This is how we are making an active contribution to achieving the 1.5°C target. Yes, it’s a big challenge, but we believe it is absolutely essential. In this 80-page report, we aim to demonstrate the many ideas and improve - ments we are implementing here at Blum – some large, some small – to ensure that we are making our contribution to a better future. moving ideas for sustainabilit y

4 Sustainabilit y strategy and management systems GRI index The Julius Blum Group in figures Repor ting standards Set ting the course for the future Transpor t and packaging Full speed ahead for mobilit y Mobilit y Focus on bees and blossom Biodiversit y and designing outdoor spaces Sustainable investment in future work and training Working for Blum Protecting nature’s precious resources Resources Bringing together sustainabilit y and energy Energy Going climate neutral Climate protection and emissions Legal notice Content produced by: Julius Blum GmbH, Furniture Fit tings Mfg., Industriestraße 1, 6973 Höchst, tel. +43 5578 705-0, Photos: Julius Blum GmbH, Adobe Stock Graphics and design: Baschnegger Ammann Par tner, Printing: Vorarlberger Verlagsanstalt GmbH, 8–15 5 6–7 32–39 58–63 50–57 64–79 40–49 24–31 16–23 80

5 turnover in the 2021/2022 business year of sales are outside of Austria subsidiaries and representative offices markets supplied worldwide plants in Vorarlberg, with additional production sites in the USA , Brazil, Poland and China employees worldwide, of which 7000 work in Vorarlberg Manufacturer and distributor of furniture fit tings: L if t, hinge, pull-out, pocket systems and motion technologies, suppor ted by assembly devices and e - ser vices The Julius Blum Group in figures 2.6 billion Creating furniture fittings for a better quality of living is very important to us. Julius Blum began his journey – and thus our journey – in 1952 with the production of studs for horse shoes. Today, we supply innovative fittings to customers in over 120 countries. We are a family business specialising mainly in the manufacture and sale of lif t, hinge, pull-out and pocket systems for furniture. To make life easier for our customers, we also supply appropriate assembly devices and What drives us services to support the marketing, purchasing, manu- facturing and installation of our products. The Julius Blum Group has eight plants in Vorarlberg, Austria, as well as production sites in Poland, Brazil, China and the USA , and 33 subsidiaries and representative offices around the world. Blum employs 9400 people all over the world, 7000 of whom are based at its Head Office in Vorarlberg. As of 1 July 2022 97 % 33 > 120 8 9.400

6 The United Nations have defined 17 Sustainable Development Goals (SDGs) . These goals have been the foundation of the international organisation’s activities since 2015, and comprise social, ecological and economic targets to transform our world. Focal areas include equalit y for women, improving global healthcare and curbing the progression of climate change. Like many other companies, we at Blum align ourselves with these goals on a voluntar y basis as par t of our commitment to global sustainable development . Our aim is to focus on those SDGs that fall within our sphere of influence as a manufacturer and distributor of furniture fit tings, and the possibilities allowed by the scope of our b u s i n e s s o p e r a t i o n s . We u s e a ma t e r i a l i t y a n a l y s i s t o i d e n t i f y t h e s e oppor tunities for improvement . Repor ting standards In preparation for the European Union’s mandator y Corporate Sustainabilit y Repor ting Directive (CSRD) , we are set ting out the measures we have implemented to date as par t of our commitment to sustainabilit y. “Sustainabilit y at Blum 2022” is not fully aligned with the legal requirements, but does already apply the international SDG and GRI standards, which are described in more detail below : Sustainable Development Goals

7 The Global Repor ting Initiative (GRI ) aims to establish a set of worldwide standards for sustainabilit y repor ting. In fact , the principles and guidelines of the GRI have already become well-established as a means of qualit y control for sustainabilit y repor ts. Austrian legislation specifically recommends the use of the GRI Sustainabilit y Repor ting Guidelines for corporate sustainabilit y repor ts. This ensures that our sustainabilit y measures are directly comparable with international standards, thus increasing their validit y. One such measure recommended by the GRI is a “materialit y analysis”. We use this method to determine the relevant fields of action to be addressed by Blum and our stakeholders. These focus areas are embedded in the SDGs and are covered in more detail in the following seven chapters : Climate protection and emissions, Energy, Transpor t and packaging, Resources, Biodiversit y and the designing of outdoor spaces, Mobilit y, and Working at Blum. Global Repor ting Initiative

Combining strategy and systems to improve our environment Sustainabilit y strategy and management systems MOVING IDE AS FOR SUSTAINABILIT Y

10 Our strategy for sustainabilit y in practice Preser ving natural resources for future generations is and always will be an impor tant incentive for us. We believe that a successful sustainable business strikes the right balance between ecological and economic progress. That is why we are fully commit ted to making our contribution to a bet ter future for the communities in which we operate. In our day - to-day activities, we are guided by the 17 SDGs of the United Nations, as well as by international standards, our own goals and our stakeholders. Operational environmental & energy goals Sustainabilit y Orientation & strategy Legal frameworks & standards Stakeholders SDG GRI

11 We produce high-qualit y products with a long ser vice life, that are as functional as possible for their intended application. We also conser ve the resources within our ecosystem or, if this is not possible, we take measures to compensate for the impact we have. We continuously explore how a sustainable approach can open up oppor tunities for new products, ser vices and business models – including in our investment decisions. We treat the people and organisations in our communities with respect because the health and safet y of our fellow human beings is our top priorit y. We are absolutely commit ted to responsible grow th. Eco- logical and social sustainabilit y are just as impor tant to us as the financial health of our company. For a global company like ours, this means : 1. 2. 3. 4.

12 To enable us to meet our objectives, we have defined eight strategic fields of action, which we are constantly revisiting. We vow to : Continuously reduce our absolute emissions Actively address mat ters concerning energy and the environment Promote renewable energy Ensure compliance with legal conditions Promote and preser ve biodiversit y Educate and inform our employees Continuously reduce our relative energy consumption Continuously improve our monitoring system Our sustainabilit y goals By maintaining an open dialogue and a culture of mutual trust, we can work together to achieve our goals for a more sustainable business. Sustainabilit y strategy and management systems

13 A crucial component of our sustainabilit y effor ts is our environmental and energy policy. Proactive measures to protect the environment and save energy take priorit y within our value chain. We finance the investments needed to make processes more efficient and improve our technical infrastructure. And we also minimise our land use as far as possible by implementing intelligent building and warehousing concepts. Our environmental and energy policy is our mandate and commitment to continually evaluating and reducing the effects of our business operations on the environment and our consumption of natural resources. The four pillars of our environmental and energy policy are as follows : Par tners We want our products to provide long - term value and benefits for our par tners, customers and the people who use our furniture. We aim to work directly with these stakeholders to identif y and implement measures for the ongoing protection of the environment and resource conser vation that work for all par ties. Innovation Our innovations are inspired directly by the requirements of our customers. This applies not only to our products, but also our ser vices and processes. We play an active role in protecting our environment by working hard to develop high qualit y products that are built to last and, where possible, that are fully recyclable. Continuous improvement We are driven by our passion to continuously optimise our existing products, ser vices and processes, and challenge limitations. When we design, optimise and implement any of our processes, we make sure we use natural resources as ef ficiently as possible and keep our environmental impact as low as possible. Employees The success of our company is largely dependent on our employees’ identification with the company and their readiness to per form. All employees can and should make their own individual contributions to achieving our environmental and energy goals – both at work and also during their commute, for example by being selective about their means of transpor t. Our environmental and energy policy

14 Sustainabilit y strategy and management systems Management systems Management systems help companies to successfully implement their own objectives. Blum uses international standards for all its internal processes. The efficacy of our integrated environmental and energy management system is confirmed by a current maturit y level of 3.3. One of the core components of this integrated manage - ment system (qualit y, environment and energy) is our annual management review, which is firmly anchored in our existing processes and process platforms. This regular assessment of our environmental and energy measures is a fundamental par t of our effor ts to continuously improve and ensure the validit y of our integrated management system. Sustainabilit y milestones Our achievements in the area of sustainabilit y since 2018 : Scrap silo system with automatic feed in plant 8 Electricit y supplied from 100 % cer tified hydropower FSC cer tification for packaging and printed materials Heat recover y in powder-coating system in plant 4 Mobilit y concept for employees launched VCÖ mobilit y award Blum Austria climate -neutral for scope 1 and scope 2 50 % of fleet switched to local biogas 2018 2020 2021 2022

15 Cer tifications Biodiversit y increased at plant 6 Heat recover y in powder-coating system in plant 6 All buildings heated using local biogas (where available) Replacement of all fossil fuels with renewable energy sources for scope 1 and scope 2 46 % of employees travelling to work using green transpor t Entire fleet switched over to local biogas 30 % recycled content in stretch films Use of CO2- reduced steel in the first product groups 50 % of flexible packaging made from recycled film 2024 2025 2023 2026 2030

Going climate neutral Climate protection and emissions MOVING IDE AS FOR SUSTAINABILIT Y

18 Climate protection and emissions As a co-initiator and founding member of the Vorarlberg Climate Neutralit y Alliance 2025, Blum has commit ted to reducing and offset ting its CO2 emissions. The network – now known as “ turn to zero” – suppor ts companies with advice and assistance in calculating their greenhouse gas emissions. Our carbon footprint is calculated based on three different sources of greenhouse gas emissions known as scopes 1–3. These comprise : Management approaches Emissions caused directly by our company from on- site combustion sources e.g. boilers, our own fleet of vehicles, and production. Indirect greenhouse gas emissions resulting from our company ’s energy supply. Emissions from business -related activities, such as waste disposal, recycling, business trips or commuting by employees. Since 2022, all emissions from the Vorarlberg site have been 100 % offset. In 2022, the price was set at EUR 30 per tonne of CO2 emit ted. This amount corresponds to the CO2 pricing structure stipulated by Austrian legislation and is based on the offset ting costs outlined within German legislation. • 100 % of electricit y in Vorarlberg generated by hydropower ( green electricit y, since 2018 ) • 95 % of ventilation systems equipped with heat recover y • Plan to completely phase out fossil fuels by 2030 • District heating • Ground water cooling • Solar thermal and photovoltaic systems • High standards of construction and good building insulation • Use of new machiner y and systems to minimise energy consumption and emissions • Continuous increase in the use of waste heat from pressurised air systems in production • Ongoing reduction of production waste • Installation of LED lighting systems • Existing green spaces optimised from ecological perspective • Green roofs on new buildings Our contribution to climate protection : However, our primar y goal is to prevent emissions before they even occur and to reduce our emissions to the greatest possible extent. Only then do we plan to use voluntar y financial offset ting schemes for any remaining unavoidable emissions, in order to achieve the United Nations’ 1.5°C target. Scope 1 305–1 Scope 2 305–2 Scope 3 305–3

19 On the hunt for big savings It would be impossible to leave no ecological footprint whatsoever. However, as a manufacturing company, sustainabilit y means taking responsibilit y for the impact we do have. That ’s why we are working to consistently reduce our carbon emissions, one step at a time. Our Vorarlberg site has been climate -neutral since 2022. It addition to tackling the big headline items such as electricit y, waste heat and building insulation, we also have our eyes on several smaller troublemakers that we aren’ t allowing to slip through the net. Philipp Ghesla, Industrial Electrician, plant 4 Switching from conventional lasers to new diode lasers has a similar effect to switching from light bulbs to LED lights in private homes. For us, this switch amounts to a saving of 3 GWh – that’s enough to supply 680 detached family homes with electricity. Pascal Fit z, Sustainabilit y Management Hydropower is one of the most efficient forms of energy generation because up to 90 percent of the water energy is converted into electrical energy. In Europe, water flows downstream no matter what the time of day or weather. So it’s also a constant and reliable power supply. Since 2018, we have been using 100 % hydroelectric power in all our plants.

20 Bregenz Ground water cooling in plant 4 The favourable conditions at plant 4 have made it possible to set up an internal, closed-circuit groundwater cooling system for our production facilities and rooms. This system does not impact either the qualit y or the quantit y of the ground water. Gaissau Harnessing solar power for hot water The water used for the coating process at plant 6 is heated by 457 m2 of high-per formance solar collectors, which use sunlight to heat water in an environmentally - friendly way. Höchst Electricit y for the e -fleet Together, the photovoltaic systems at our t wo plants in Höchst and one in Bregenz cover a total sur face area of around 2000 m2. These systems have a total output of 300 kWp, which provides electricit y for various uses including the company ’s fleet of electric vehicles. China Up on the roof Our largest photovoltaic system can be found in China and covers an area of 8240 m2 – the equivalent of 660 car parking spaces. The system output amounts to 1400 kWp. Dornbirn Out with gas – in with district heating Plants 7 and 8 in Dornbirn are connected to the local district heating net - work. This means that gas is no longer required for heating in these plants. The gas boilers have been kept in situ for emergency heating. Any excess heat is fed back into the grid – thus reducing our cooling costs. Annual savings from ground water cooling 20,000 m3 of water Vorarlberg Hurray for hydropower! Compared to using the local supplier ’s standard electricit y generation mix, we have saved around 34,600 tonnes of CO2 since 2018 by using 100 % hydropower from Austrian hydroelectric power plants. That equates to: Vienna 59,000 kWh of electricit y Climate protection and emissions 26.800 x NYC

21 kWh How many houses could we heat with the energy from our compressed air supply? 2008 detached family homes (construction year 2000, 135 m2) Markus Kaufmann, Building Systems Thanks to district heating, we no longer need gas to heat plants 7 and 8 in Dornbirn. Plus, we now feed any excess heat back into the network and reduce our reliance on cooling machines.

22 Climate protection and emissions

23 By switching our electricit y supply to Austrian hydropower in 2018, we have taken an impor tant step towards our company goal of eliminating our use of fossil fuels by 2030. Pascal Fitz Sustainabilit y Management

Bringing together sustainabilit y and energy Energy MOVING IDE AS FOR SUSTAINABILIT Y

26 Energy Sankey diagram illustrating our energy flows 302–1, 302–2 In 1898, Irish engineer Captain Mat thew Sankey used this form of diagram – for the first and only time – to illustrate energy flows and losses using propor tionally thick arrows, in a method that came to be named af ter him. Although preparing the data for Sankey diagrams is ver y time -consuming, the information is easy to interpret. Essentially, the wider the arrow, the more energy involved. This diagram shows which energy sources we use, in what form and for what purpose. The international standard ISO 50001 suppor ts us in reducing our energy consumption and lowering our emissions. The key focal points of this energy manage - ment system are the planning process and the company energy assessment , which are designed to optimise our energy per formance in terms of consumption, ef ficiency and use. Our energy team is working hard to achieve this goal, suppor ted by our planning process and action plan. One of their tasks is to evaluate the company ’s energy per formance to see if we’re improving. In practice, this means identif ying any ef ficiency increases. Management approaches Energy usage 2021/22 Production processes Employee mobilit y Shut tles Air travel Combustion engine fleet Electric fleet Business trips using third-par t y vehicles ( private transpor t, rental cars, ta xis ) Mineral oil CNG Electricit y mix District heating PV electricit y Hydroelectric power Solar thermal Natural gas Train travel 0.43 GWh Waste heat from pressurised air 22.9 GWh Waste heat from processes Heat recover y 5 GWh Waste heat from processes ∼ 6 GWh 165,6 GWh 110,3 GWh 13,08 GWh 1,01 GWh 1,42 GWh 0,94 GWh 0,144 GWh 0,217 GWh 0,034 GWh 0,7 GWh 0,322 GWh 35,38 GWh 44,91 GWh DL 6,7 GWh 22,54 GWh 12,84 GWh 10,4 GWh WRG 15,3 GWh 0,636 GWh 0,041 GWh 17,6 GWh

27 Renewables Fossil fuels Change in primar y energy consumption Energy mix 2021/22 Procurement of electricit y [GWh] Procurement of gas [GWh] PV power generation [GWh] Heat recover y [GWh] Net primar y energy consumption of Blum Austria in GWh (energy baseline) Net primar y energy consumption 75 % 25 % 121,84 125,53 127,4 125,4 155,5 2017/18 2016/17 2018/19 2019/20 2020/21 165,6 2021/22 26,23 29,08 26,9 26,4 33,7 2017/18 2016/17 2018/19 2019/20 2020/21 35,4 2021/22 12,8 13,1 10,8 10,9 11,9 2017/18 2016/17 2018/19 2019/20 2020/21 15,3 2021/22 0,32 0,18 0,21 0,28 0,32 0,31 2017/18 2016/17 2018/19 2019/20 2020/21 2021/22 148,1 154,6 154,3 151,8 189,2 180,00 210,00 2017/18 2019/20 2016/17 2018/19 2020/21 150,00 120,00 30,00 90,00 0,00 60,00 -30,00 2021/22 201,0

28 Climate - friendly makeover for the company fleet Fleet headed for carbon neutralit y Fleet manager Michael Golob first began researching hydrogen-powered and electric trucks back in 2016. The problem was that the nearest suitable filling station for hydrogen is in Innsbruck, around 200 kilometres away, and our 24-hour operation poses major challenges for electric charging. Another solution had to be found. That is why, at the star t of 2020, we purchased our first fleet of gas -powered trucks for transpor ting semi- and finished products bet ween our plants in Vorarlberg. The range of the new trucks is around 500 kilometres, compared to 2000 kilometres for diesel trucks. As there are ver y few suitable biogas filling stations for trucks in the region, Blum built its own filling station at plant 7, which ever y fleet truck now visits several times a day. Gas trucks have par ticularly low -maintenance engines, run smoothly and produce less noise and fine dust than their diesel counterpar ts. So they ’re not only good for the environment, but also our neighbours! shut tles run between the 8 plants in Vorarlberg of the 19 shut tles are powered with biogas Energy 19 9

29 decibels of noise pollution more expensive than diesel trucks fewer soot par ticles per truck lower CO2 emissions than diesel trucks when fuelled with biogas less nitrogen oxide switchover to biogas complete 2025 < 72 20 % 90 % 80 % 50 %

30 By switching our shut tles from diesel to biogas we have been able to reduce the amount of soot par ticles per truck by over 90 % , meaning significantly fewer par ticulates. We’ve also reduced nitrogen oxide levels by around 50 % , which is really impor tant . Michael Golob Fleet Manager Energy


Set ting the course for the future Transpor t and packaging MOVING IDE AS FOR SUSTAINABILIT Y

34 PE-HD 02 Eliminating packaging The ideal compromise bet ween conser ving resources while still protecting products can be broken down to the simple principle of “as lit tle as possible, as much as necessar y ”. Reusing packaging The key to sustainable packaging is not only the material itself, but also how it is used. In order to keep the amount of waste as low as possible, we mostly rely on reusable transpor t packaging ( so-called ECO -packs ) for internal transpor t, wherever viable. We can also use this system for customers within Europe with a cer tain minimum purchase quantit y. Recycling & sustainable materials In the pulp and paper industr y ( corrugated board, cardboard, paper) , a recycled material content of 75 to 80 % is already standard. With the exclusive use of FSC -cer tified products, we are taking this one step fur ther. Some flexible plastic packaging already contains recycled content, and a lot of tests are still under way, including for materials such as stretch film or products used to seal boxes. All new systems are already set up for use with recycled film. Informing customers Good packaging management does not end when the product leaves our plant. To simplif y the disposal process for our customers, all our plastic packaging is marked with the standardised recycling codes. This facilitates the recycling process and maintains the qualit y of recycled products. There is currently no labelling for pulp packaging materials. Life cycle analyses It is of ten quite trick y to determine whether packaging is really sustainable or not. This is where life cycle analyses come into play. In order to get a comprehensive view, the entire product life cycle and all environmentally relevant processes are recorded and evaluated. We are currently using life cycle analyses on a sample selection of our products. In the future, how - ever, we want to use them across the board as a decision-making tool when making packaging decisions. Our transpor t goal is to increase our propor tion of rail transpor t to 50 % by 2025. However, this can only realisti- cally be achieved if economic conditions return to pre -pandemic levels. Rail transpor t is currently 37 % of our transpor t mix, with the Austrian share being 25 % . Our second goal depends on the success of the first : if we are able to increase our rail transpor t as planned, then we should be able to reduce our CO2 emissions per tonne of shipped goods to below 0.1 tonnes of CO2. We have already reduced this value from 0.110 to 0.103 in the 2021/22 business year. When it comes to our packaging, product protection and functionalit y are paramount . As par t of the company ’s environmental and energy policy, we have defined five specific sustainabilit y goals for this area : Management approaches Example recycling code Example label for packaging from FSC sources Transpor t and packaging Test runs & full-production runs on selected systems First systems switched over to using exclusively recycled film 50 % of flexible packaging switched to recycled film All flexible packaging switched to recycled film 2021 2030 2025

35 Sustainable transpor t routes from Austria to the rest of world : how our logistics teams are working day in, day out to reduce our ecological footprint . Blum fit tings usually have to travel long distances before they can do their job of providing ma ximum convenience in furniture worldwide. Ever y year, several thousand transpor t units travel from Vorarlberg to 125 countries around the globe. We make these journeys as climate - friendly as possible by using trains, trucks and ships – and usually a combination of more than one. Whether a deliver y is transpor ted purely by road of rails hinges on several factors such as the rail infrastructure, the destination, the goods and the customer ’s preference. The transpor t logistics team has been shipping our fit tings via the greener rail route for many years. In fact, some freight makes the majorit y of its journey to places like Türkiye or China by train, and 90 % of sea containers reach the major European por ts of Rot terdam, Hamburg and Trieste by rail. These containers are loaded in our logistics centre in Dornbirn and transpor ted to the Blum railway shut tle with the help of a huge forklif t. They are then delivered to the terminal in Wolfur t via the direct rail connection and, from there, expor t trains transpor t our goods to customers and the por ts using environmentally - friendly international rail net works. Blum currently saves more than 69 tonnes of CO2 emissions through rail transpor t ( one - way ) . Working in collaboration with the freight transpor t company Rail Cargo from the Austrian railway net work, we have set ourselves t wo goals. The first is to increase our propor tion of rail transpor t to 50 % in the next few years, and the second is to massively reduce the distances travelled on European roads. Ever y year we already transpor t 5300 containers by rail instead of by road. Our fit tings love a good train journey Where road transpor t is currently the only viable option, we use Euro 6 trucks with double -deck loading to ensure the most ef ficient use of the trucks’ capacit y. In addition, once the deliveries are complete, we use a sophisticated round- trip concept for the return journey, which sees us working together with our shipping par tners to arrange for other goods to be transpor ted on the way back to eliminate empt y trips. Af ter all, treating our environment with care and respect is firmly anchored in the ethos of our family company. Ingmar Blum, Head of Transpor t Logistics Our main focus is very clearly on rail transport. Thanks to our own siding at plant 7 in Dornbirn, we were able to transport almost 37 % of our deliveries by rail in the 2021/2022 business year.

36 Transpor t and packaging

37 Ever y week we run 7 to 8 trains back and for th between Dornbirn and Wolfur t . This enables us to relieve the burden on Vorarlberg’s roads because it avoids 7000 truck journeys per year. Ingmar Blum Head of Transpor t Logistics

38 By obtaining cer tification from the Forest Stewardship CouncilTM, we are making an active contribution to the preser vation of the natural environment. Since last year, we have been able to switch another 84 items to FSC standards, meaning our conversion rate is currently 97,48 %. The FSC label, which indicates that a product suppor ts sustainable forest management, is printed on the relevant packaging. FSC cer tification FSC info Number of IDs Percentage FSC -MISCH1 11 0.49 % FSC -MISCH2 46 2.03 % FSC -MIX70 714 31.51 % FSC -MIX80 2 0.09 % FSC -MIX- C 1247 55.03 % FSC -NR 24 1.06 % FSC -REC100 13 0.57 % FSC -REC85 1 0.04 % FSC -REC - C 208 9.18 % Total 2266 100 % Transpor t and packaging

39 Packaging figures Renewable vs. non-renewable (single -use) , only par ts list components of corrugated cardboard recycled (on average) 301–2 Reuse percentage by product group Renewable vs. non-renewable (single -use) , incl. auxiliar y and operating materials Categor y Purchase volume (%) regenerative/renewable 98.48 % non-renewable/fossil-based 1.52 % 100 % Multi-use Single -use Hinge systems 2.56 % 97.04 % Lif t systems 10.96 % 89.04 % Runner systems 1.31 % 98.69 % Box systems 8.17 % 91.83 % Categor y Purchase volume (%) regenerative/renewable 97.41 % non-renewable/fossil-based 2.59 % 100 % 76 %

Protecting nature’s precious resources Resources MOVING IDE AS FOR SUSTAINABILIT Y

42 Management approaches Product sustainabilit y Innovation, qualit y standards and optimisation are our top priorities for the use of all resources. This approach extends from our products and manufacturing processes to our resource handling and ef for ts to introduce closed loop systems. At the product development stage, we lay the foundation for the ef ficient use of raw materials. The entire product life cycle – from procurement to the most complete recycling option available – is analysed to keep the impact on the environment as low as possible. Products are also subject to specific energy and environmental requirements right from the project development phase. Transparent records are kept to document the specific objectives, any deviations and the results. Waste management 306–1 We are aware that, as a large company, we contribute to the waste problem. However, compared to a small business, we also have more oppor tunities to address this challenge efficiently. Our waste management system is based on the waste pyramid. In addition to shor t transpor t routes, we also at tach par ticular impor tance to the recover y of any reusable materials. We promote material recycling by constantly evaluating our waste streams and separat - ing them according to t ype. Resource conser vation is complex – the aim being to strike the balance between using as much as is necessar y, but as lit tle as possible. Where can small tweaks be made to make things even more ef ficient and protect nature as much as possible? From the development and creation to the disposal of our products, we endeavour to protect the precious resources provided by our planet . In plant 8, we use silos to automatically sort and collect the scrap. Prevention Quantit y Priorit y Recycling Recover y Disposal Reuse Resources

43 We need zinc to manufacture cer tain components for our products. The production of primar y zinc uses a lot of energy and CO2, so we take great care to use this material efficiently. The zinc sprues produced during the die -casting process are fed directly back into the machine or sent to our in-house remelting furnace ready to be processed into new raw material. On average, 85 % of the waste material is put back into the system in this way. Around 30 of our 31 systems have the capacit y to separate sprues from the par ts and automatically remelt them. In addition to preser ving the raw material, this internal recycling process has the climate - friendly advantage that the zinc waste does not have to be transpor ted elsewhere and instead is quickly available for reuse. Ever y year about 70 tonnes of zinc are so contaminated that we cannot recycle them. This corresponds to less than 1 % of our total consumption. This residual material is sent to our recycling par tner who, according to their own data, reprocesses 98 % of it back into valuable zinc under the highest Closed-loop system for zinc in our plants 306–2 environmental standards. As a general rule, we purchase zinc with a relative recycling content of 34 %. Since our recycling par tner is also our supplier for the raw material, we can be proud that our zinc is par t of a sustainable closed-loop system. of zinc sprues are reintroduced into the process (on average) 85 %

44 Waste analysis Review 2021/22 – the figures All of our products undergo movement and stress tests. For example, they are tested for durabilit y, static and dynamic loads and overpressure. These tests contribute to our sustainabilit y effor ts by helping ensure the longevit y of the furniture in which our products are used. Thoroughly tested Our test labs’ minimum requirements for opening and closing cycles are : Hinges Box and runner systems Lif t systems Waste analysis Ha zardous waste Paper & cardboard Plastic Residual waste WJ 16/17 WJ 18/19 WJ 20/21 WJ 17/18 WJ 19/20 WJ 21/22 Percentage of raw materials not used as intended and therefore sent for recycling/disposal WJ 16/17 WJ 17/18 WJ 18/19 WJ 19/20 WJ 20/21 WJ 21/22 Resources 200.000 x 100.000 x 80.000 x 9,00 % 7,00 % 7,94 % 8,06 % 7,87 % 8,02 % 7,77 % 7,68 % 6,00 % 8,00 % 10,00 % 11,00 %

45 Change in water usage Our water consumption is determined mainly by the base load of the infrastruc - ture. The decline in WIJA 2020/21 may have also been influenced by the poor summer weather, which was unusually cold. Another factor is the reduction in sanitar y wastewater due to lockdowns, shor ter working hours and employees working from home. With the resumption of normal operations post -pandemic, the water usage has increased again. Over view of the use of recycled materials 301–2, 301–3 For us, the most effective way to conser ve resources is to use recycled materials. This applies to both our products and packaging materials. Steel : the king of recyclables 301–2 By far the most used raw material at Blum is strip steel. Steel can be completely reprocessed without any loss of qualit y – and as of ten as you like. That is why steel is also the most recycled material in the world, and a great option for saving on raw materials and energy. Aluminium Wood Packaging Zinc Steel Percentage of raw material recycled These are representative average values from our suppliers and reflect the propor tion of materials recycled across our entire product por tfolio. 63 % 100 %FSC 97 %FSC 34 % 24 % 2017/18 2019/20 2016/17 2018/19 2020/21 120.000 60.000 121.437 130.290 134.920 140.022 138.009 30.000 90.000 150.000 180.000 0 [ m3] 2021/22 155.369

46 Resources When used correctly, the special proper ties of the plastics used by Blum guarantee the functionalit y of our components for the lifetime of the furniture. They are free from harmful substances and their ecological footprint is significantly lower than that of other materials. Michael Kessler Product Plastics


48 Resources Plastic as a resource What might the environmentally - friendly use of plastic look like? Plastic has fallen into disrepute in recent years, as it has become associated with too much waste, too lit tle recycling and the unsustainable consumption of oil. And yet, due to its malleabilit y and versatilit y, it is now indispensable in the fields of medicine, water supply, hygiene and food technology. At Blum, we use this durable material because its excellent recyclabilit y means that its life cycle analysis is fundamentally positive. Indeed, plastic offers many advantages due to its mechanical and electrical proper ties. The first plastic injection-moulding machines were commissioned in the 1970s, and we at Blum now process 11 different polymers from over 150 different granulates. We produce over 2500 different plastic par ts, all of which are free from harmful plasticisers, phthalates and PVC. Wherever possible, we grind the sprues and immediately recycle the waste plastic, put ting it straight back into the injection moulding system. By doing so, we succeed in using 98 % of the material. In the case of powder coatings, any powder that does not remain on the par t is also fed back in using a cyclone system. This results in a waste rate of only 2 %. Our canteen is already using petroleum- free yoghur t pots and spoons made from polyactide. Employees also make a daily contribution by reusing cups from the coffee machine, because ultimately the most resources are saved through reuse. Cardboard Zinc Steel Plastic Aluminium Relative percentages determined as average values across the entire product por tfolio (by weight) : Usage rates for raw materials Use of materials at Blum When it comes to resource efficiency, every year we save 1200 tonnes or 50 fully-loaded trucks delivering steel and removing waste. Raw material Usage rate Zinc 98.2 % Cardboard 95.9 % Steel 78.9 % Plastic (granulate, mas - ter batches and coating powder) 94.5 % 6 % 2 % 84 % 7 % 1 %

49 Platzhalter Kennzahlen Sustainable space - saving for the future L and is a finite resource. In order to reduce our land use, we rely on dense construction. To provide a concrete example to illustrate our philosophy: on an area of almost 14,000 m2 of built -up land, we use multi- storey construction to create around 50,000 m2 of usable space. By building upwards over several floors, we can achieve seven football pitches’ wor th of space with the footprint of just t wo football pitches. However, in order to implement these ambitious projects, we first have to improve the ground on which we build. These improvements will dif fer from site to site depending on the dif ferent proper ties of the substrate. The buildings too of fer a variet y of structural challenges. That said, multi- storey constructions of fer several energy -ef ficient advantages, since the external sur faces are smaller overall, which means they emit less heat than low -level buildings. The energy itself, required for operations and production, is less easily lost and also has shor ter distances to travel. A compact building is also more weather-resistant and durable. In our building projects, our aim is to make the best possible and most sustainable use of the land available. Land as a resource Change in land use at Blum Austria 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1992 1994 1991 1993 1995 1996 1997 1998 1999 2000 2001 2002 2004 2006 2008 2010 2012 2014 2016 2003 2005 2007 2009 2011 2013 2015 2017 2018 2019 2020 2021 260,0 [%] 240,0 220,0 200,0 180,0 160,0 120,0 140,0 100,0 2022

Focus on bees and blossom Biodiversit y and designing outdoor spaces MOVING IDE AS FOR SUSTAINABILIT Y

52 With ever y new development project, we always consider the outdoor space and work together with external specialists to create an overall concept. However, as our business expands and we take on new building projects and conversions, our existing outdoor spaces also need to be re -evaluated and altered in line with our goals for our outdoor spaces. Outdoor spaces A high degree of biological diversity is the benchmark for a healthy environment and thriving natural world. Biodiversity describes the variety of living organisms on earth and the relationships between them. This diversity includes all living creatures and species, ecosystems and landscapes. Biodiversity itself is divided into three organisational levels : the diversity of the species themselves, the diversity within the species, i.e. their genetic range, and the diversity of the biotic communities in which the species live and the relationships between them. In order to promote biodiversity, the design of outdoor spaces must be based on well- founded concepts. Management approaches Biodiversit y and designing outdoor spaces are planned as “green field” sites, i.e. existing architectural conditions are not considered to have been set. Parking, traffic and roof areas must also be taken into account, including the potential for photovoltaics, green roofs and biodiversit y areas. Concepts and goals when designing outdoor spaces Ready for climate change Greater awareness Increased biodiversit y New parking concepts Equally impor tant goals in designing outdoor space Integration of renewable energy sources Appealing break areas At tractive outdoor spaces

53 Operational environmental and energy goals in the area of biodiversit y Additional measures 304–1 • Investigating the connection bet ween our sites and protected areas • Upgrading retention areas that contribute to flood protection during concept development phase • Considering and planning for biotope areas in the case of new builds • Cooperating with regional net works on biodiversit y issues • Establishing standards for the Vorarlberg area Ongoing ecological improvement of existing green spaces • Conver ting lawns into biodiversit y areas • Planting a mix of native fast and slow - growing trees • Planting bushes and shrubs t ypical for the location to provide shelter and nesting places for animals • Creating food supplies with suitable planting • Connecting green spaces to existing green zones to create corridors for animals • Training employees to look af ter these areas • Adjusting outdoor lighting for greater efficiency Creation of offset ting areas • Creating green roofs • Checking the viabilit y of green façades • Removing concrete sur faces from car parks • Narrowing and removing concrete sur faces from existing paths where possible

54 Biodiversit y and designing outdoor spaces In Poland, Blum has launched a flagship project for energy -efficient commercial construction. The focal point of this project is the innovative design of the green roof. Jasin k. Swar zędza is a suburb of the cit y of Poznań, which has over 500,000 inhabitants. In 2021, Blum built a new office and exhibition building there with a focus on energy efficiency, featuring façade heating, automatically controlled blinds and constant monitoring of the building ’s internal parameters. The building also has a water meter for meteorological analysis and is covered by a 1580 m2 “green roof ”. The green roof area absorbs almost 2000 kg of CO2, supplies its own irrigation system and promotes additional biodiversit y across the site. At the beginning of 2022, it was obser ved that bees had set tled on the roof in large numbers and were therefore pollinating the plants. The green roof helps collect rainwater and the building ’s own irrigation system – which is switched on for the growing season from April to the end of October – in all likelihood supplies all the water needed ( up to 150 m3) . The system is switched off in winter. Ground water is also used for cooling purposes and then released back into the water cycle. This successful model will continue to be expanded in fur ther building stages until the end of 2023. The plan is to increase the pilot testing area by 9200 m2 to 10,780 m2. Once complete, the total area will be equivalent to a football field, with the ma ximum dimensions of 90 by 120 metres. This green roof project is a prime example of the environmentally - friendly and energy -efficient design of our buildings. A green roof has also been installed in plant 4 in Bregenz, as can be seen in the photo on the right. Green roofs : an example for the future 304–2, 304–3 Diagram of the water extraction process Rain Plants Rainwater tank green roof

55 Advantages of green roofs Increased biodiversit y Retention areas that contribute to flood protection Aesthetically pleasing and modern appearance Increased humidit y Improved air qualit y through CO2 absorption Expansion of the biotope network Reduced outside temperature More resistant to fire Reduced noise emissions

56 Biodiversit y and designing outdoor spaces

57 A variet y of herbs, grasses and mosses grow on the roof of plant 4 in Bregenz . An orchid species has even been spot ted there. Laura Löffler Sustainabilit y Management

Full speed ahead for mobilit y Mobilit y MOVING IDE AS FOR SUSTAINABILIT Y

60 Kapitel Management approaches Mobilit y Blum offers employees incentives to switch to an environmentally - friendly alternative for their commute. If you were to orbit the ear th three and a half times, that would be the same total distance travelled each day by our employees at Blum Austria – around 140,000 kilometres. As par t of our sustainabilit y commitment, we at Blum are asking ourselves how we can persuade our employees to opt for a greener alternative to driving. To do this, we have thoroughly analysed our employees’ situation when it comes to travelling sustainably, looking at factors like how many employees live within cycling distance or have access to a bus or train route. This way, we can identif y the areas with the greatest potential for improvement, which gives us a good star ting point. An acces - sibilit y analysis by the Vorarlberg Energy Institute demonstrated that 60 % of our employees meet these criteria. On average, 38 % currently use an environmentally - friendly means of commuting, which equates to 2500 of the 7000 employees in Austria. Blum has put together a 20- strong team from different depar tments with the task of developing a mobilit y concept combining a series of interlinking measures. The idea is to offer employees a basic package for each mode of transpor t in order to encourage them to travel to their workplace sustainably. For example, this may comprise financial suppor t with the purchase of a high-qualit y bicycle or an annual ticket for public transpor t. These basic packages are integrated into a reward system that then incentives employees to actually take advantage of them for their daily commute to work. This “Ecopoints” system will be presented in the next ar ticle. As par t of the Jobrad campaign, employees can buy a bicycle or e -bike from selected par tners at an affordable price, as well as benefiting from national subsidies. Anyone who commutes to work by public transpor t or bike on at least four days of the week, and does not use the company car park, also receives a subsidy from the company. This makes cycling even more Travelling to work by bus or bike Blum is serious about mobilit y and therefore established the post of Mobilit y Officer in 2019. The Mobilit y Officer is suppor ted by a project team from various depar tments, who work together with her to develop, monitor and improve our mobilit y concept . In addition to sur veying what ’s happening now, the team develops realistic goals for climate - friendly employee mobilit y. Their tasks also include evaluating the effectiveness of the measures currently in place. For example, the mobilit y concept is continuously reviewed by means of monthly vehicle counts and additional ad hoc samples. This allows us to assess whether our strategy for environmentally - friendly mobilit y is really working. appealing. Alternatively, employees can significantly reduce their ecological footprint by travelling to work by public transpor t. In return, Blum will cover the costs of a “ VMOBIL ma ximo” climate ticket, which is valid throughout the entire federal state of Vorarlberg. With the Vorarlberg family pass, the whole family can even travel by bus and train for free. In addition, the sites themselves will be upgraded to accommodate the additional influx of cyclists, with more bike racks and bigger changing rooms and showers, as well as measures to raise awareness. This internal initiative is also being supplemented through collaboration with external par tners and local policies to promote the expansion of the cycle and public transpor t net works. Both the bicycles and public transpor t tickets can – and should – also be used by employees privately, in order to encourage sustainable travel out - side of the work context, too. And we aren’ t the only advocates for these ideas: our mobilit y concept even won the overall prize at the Verkehrsclub Österreich’s 2022 Mobilit y Awards, the slogan of which roughly translates as “Let ’s turn transpor t around”.

61 Blum gets furniture moving – and its employees too! With the aim of encour- aging sustainable behaviour, we asked ourselves how we might create a long - term transition away from the car and towards alternative means of transpor t. And how we might combat our natural temptations and overreliance on the convenience of our own vehicles. With the “Ecopoints” sof t ware developed by a team in Vorarlberg, employees can now easily record their daily journey to work. Whether using public transpor t, walking or cycling, employees can use the app to compare their points each day and see how much CO2 has been saved, so that they feel motivated to keep up their good habits. This also applies to those commuting by E V or carpooling. Since Januar y 2022, any “Ecopoints” collected in the employee app can be redeemed with par tner organisations of fering local wellbeing or other relevant products, ser vices and projects. Par tners for the scheme include spor ts retailers, organic food shops and fair trade clothing stores, and there is also the option to donate to cer tain communit y organisations. Calculated over the whole year, employees can earn up to EUR 180, which they can exchange for at tractive vouchers or reinvest into sustainable causes. The initiative not only reduces the volume of traf fic, but also frees up parking spaces, prevents emissions and helps keep people healthy. On the one hand, the Ecopoints system aims to incentivise those who have not yet switched to a climate - friendly option and, on the other hand, it should ser ve as a sign of appreciation to all employees who have already taken this step. Get collecting! Somewhat aptly, the mobilit y team never stands still. Together with a team of Vorarlberg programmers, they have gone on to develop a bonus system for environmentally - friendly commuting.

62 Mobilit y

63 Before the introduction of our mobilit y concept , 38 % of our colleagues were using sustainable methods of transpor t . Now that figure is 47 % on peak days. Katharina Schön Mobilit y Officer

Sustainable investment in future work and training Working for Blum MOVING IDE AS FOR SUSTAINABILIT Y

66 Employee health 403–3, 403–6 The health of our employees is a ver y impor tant issue for us as an employer, and one that we take ver y seriously. In addition to providing the statutor y occupational health ser vices, we have developed a pool of measures to keep our employees healthy and fit for work. One of the most impor tant in protecting the well-being of our employees is our employee ser vice – an internal point of contact for questions relating to work, health and family. For example, the employee ser vice provides active assistance in acute emergency situations, advises on preventive action to promote bet ter physical and mental health, and also assists employees with returning to work af ter a period of leave, as well as their transition to retirement. We also invest in ergonomic workplace design including height- adjustable desks and lif ting aids. Onboarding A successful star t is our first oppor tunit y to demonstrate what an at tractive employer we are. Once the application process has been completed, we stay in contact with future employees and invite them to company events, in order to keep their motivation high. We also have a buddy system in place, whereby new employees are assigned a professional mentor – a member of staf f who is available to provide advice and suppor t during their first few weeks. Not only does this relieve pressure from the employee’s manager, but it also provides an informal oppor tunit y to address issues that may not be directly related to work per formance. We find this approach helps newcomers to quickly establish a proactive approach to work. Occupational safet y 403–1, 403–2, 403–4, 403–5, 403–7 The management standard ISO 45001 provides us with guidance beyond the scope of applicable legal requirements. Since occupational safet y af fects our employees directly, we place a special focus on it. We maintain a database in which we record not only accidents at work, but also dangerous situations that almost led to an accident, which allows us to identif y safet y gaps and risks at an early stage and put measures in place to counteract them. In addition, potential ha zards are continuously analysed through workplace evaluations and appropriate steps taken, even where accidents have not occurred. This includes physical and psychological risks, such as ha zards arising from transpor t or potential cut ting injuries. Each area of responsibilit y has its own set of safet y instructions for new star ters, as well as regular refresher training and ad hoc training as required. In addition to protecting employees, fire prevention and plant securit y measures are also impor tant. Checks and tests are carried out to ensure that conditions are always being improved for the future. These measures are suppor ted by the 72 securit y of ficers currently deployed across our Austrian sites. Internal training In order to ensure the success of our group in the long term, we need both strong managers and exper t specialists with a ver y unique set of skills. We promote both of these groups, with equal oppor tunities for professional and personal de - velopment and suppor t through internal training courses. It is impor tant to us that our employees can focus on their strengths and are given appropriate tasks. Any discussion about working for Blum necessarily includes the areas of occupational safet y, employee health, apprenticeship training and employees’ professional development . Management approaches Learning at Blum The benefits of learning on the job are of ten underestimated, although this approach has a much greater impact than learning in a classroom environment, That ’s why our mot to is: “I learn as I work and I work as I learn.” Working and learning simultaneously makes sense and is enjoyable if employees take on responsibilit y and engage in dialogue with colleagues. It also creates opportunities for employees to explore their strengths and weaknesses, and fosters a passion for personal development. In addition to on- site discus - sions in the workplace, internal communication is also suppor ted through digital channels. Working for Blum