SUSTAINABILITY REPORT 2025
MOVING IDEAS FOR SUSTAINABILITY
Owner and publisher Julius Blum GmbH Industriestrasse 1 6973 Hoechst, Austria Tel: +43 5578 705-0 Email: info@blum.com Commercial Register FN 62067a, Regional Court Feldkirch Project management, organisation and coordination Julius Blum GmbH Sustainability Management Concept, text, design and editing Editorial team: Franz Ha, Thomas Obermayr, Johannes Hämmerle Content: Individual departments of the Blum Group Graphics: Dieter Bösch Images: Julius Blum GmbH, Blum Group, Adobe Stock Printing Vorarlberger Verlagsanstalt GmbH, Dornbirn Gender clause At Blum, people come first. We are a company that embraces diversity and rejects any form of discrimination. Gender-neutral language is therefore important to us. If we have not included a gender in our text or wording, this is due to a lack of alternatives, to maintain readability or unfortunately sometimes due to an inadvertent omission. Other information This sustainability report has been prepared with the greatest possible care to guarantee the accuracy and completeness of the information contained in all parts. Typesetting and printing errors cannot be entirely ruled out. Furthermore, the use of automated calculation systems may result in rounding differences that affect amounts and percentages. Any questions about this report or sustainability at Blum more generally can be directed to info@blum.com. The sustainability report has not been audited by an external party, but has been approved for publication by the Executive Board. The English version of this sustainability report is a translation of the original German. In case of doubt, the German-language version is authoritative. ➔ GRI 2-3, GRI 2-5 Copy deadline: 31 October 2025 Contact and legal notice Sustainability Report 2025 2 © Copyright by Blum
Sustainability Report 2025 6 Company profile Organisational structure and governance 8 Our values and principles 9 Our approach and strategy 9 Our products and services 11 Our production sites and sales locations 12 Our value chain 13 14 Sustainability at Blum Global challenges 16 Questions and answers 17 Our proactive sustainability strategy 18 Sustainability management structure and monitoring 19 In dialogue with our stakeholders 20 Our contribution to the UN Sustainable Development Goals 24 Materiality process 26 Standards, certifications and partnerships 31 32 Environment Energy consumption 35 Energy usage at our sites 36 Greenhouse gas emissions 37 Material usage, resource efficiency and the circular economy 39 Product packaging 43 Product sustainability 45 Responsible water usage 46 Waste management and recycling 47 Material and waste management 49 50 Social responsibility Spotlight on our people 52 Our employees 53 Work environment 56 Comprehensive vocational training 60 Employee satisfaction 61 Personal development 62 The Blum Path 64 Health and safety 66 Occupational health management 69 70 Governance Partnership across the supply chain 72 Supplier Code of Conduct 73 Business processes and compliance 75 Compliance strategy and policy 76 Strategies for combating corruption and bribery 77 Information security, data protection and confidentiality 79 80 GRI index 3
About this report This report has been compiled for the benefit of all our stakeholders. It contains detailed information about the actions we are taking as a business to make our activities more sustainable. Under the tag line "moving ideas for sustainability", we are working hard to promote sustainability across our company and address all relevant environmental, economic and social factors. Central to these efforts are two key questions: 1. What are the greatest challenges that we face in working towards sustainability? 2. H ow can we overcome these challenges? Standards and frameworks This report confirms our commitment to sustainability and has been published in preparation for meeting the requirements of the EU's Corporate Sustainability Reporting Directive (CSRD). It has been produced in line with the reporting guidelines of the Global Reporting Initiative (GRI) and in accordance with the GRI Universal Standards 2021. These standards provide us with a foundation for comparisons and increase the credibility and transparency of the information contained in this report. A GRI content index containing a detailed list of all disclosures and references can be found at the end of the report. Moreover, we believe it is important to understand the wider context for our sustainability responsibilities and reporting. As a global company, we have therefore aligned our sustainability efforts with the UN's Sustainable Development Goals (SDGs), further details of which can be found in the relevant chapter of this report. Scope of reporting and contents The information contained in this report covers all production sites operated by the Blum Group, including the company’s head office in Austria and its plants in Poland, the USA, Brazil and China. The employees working at these sites make up more than 85% of the entire staff body of the Blum Group. Other sites will be recognised in the future reporting periods. ➔ GRI 2-2 This report also focuses specifically on the sustainability topics (and relevant management strategies) identified in our materiality assessment, as recommended by the GRI. This assessment was updated with the implementation of a double materiality assessment to ensure compliance with the requirements of the upcoming CSRD and also expanded to examine our fields of action in depth. The structure of the report reflects these material topics and addresses each of the ESG categories – environment, social and governance – in turn. Brief overviews are provided, setting out the importance of a particular topic and the action we at Blum are taking to address it. The data contained in this report covers the 2024 / 2025 business year, which extends from 1 July 2024 to 30 June 2025. ➔ GRI 2-3 Sustainability Report 2025 4 © Copyright by Blum
Sustainability Report 2025 Our understanding of sustainability is based on the fundamental strategic orientation of our company, which is to preserve Blum as a stable employer with a long-term future while maintaining its autonomy and independence at all times. These values date back to our founder, Julius Blum, and have remained unchanged ever since. As a company with a long-term perspective, we focus not only on the here and now but also look to the future. We consider the impact of our actions and we are keenly aware of the economic, social and environmental responsibility that comes with it. That is why we see sustainability as the overall balance between economic stability, social harmony and environmental awareness. The sustainability measures we implement (and which are described in this report) reflect this mindset. In addition to products, resources, infrastructure, energy supply and logistics, they also address issues such as equality, the working environment and the training of young people. We are continuously implementing initiatives in all these areas to increase sustainability in line with our principles and economic conditions. The latter currently present us with numerous challenges, be it the volatile geopolitical situation, periodic upheavals in international trade relations or EU regulations such as CBAM and ETS, which, although we consider their original objectives to be reasonable, place us at a massive competitive disadvantage in their current form. However, economic success is an essential prerequisite for sustainable action. At the end of the day, it is also a matter of safeguarding Europe's long-term future as a business location as well as creating the social structures that enable us all to actively work towards a better future. It is our responsibility today to leave behind an environment worth living in for the generations of tomorrow. This requires a great deal of flexibility, the courage to embrace new ideas and a clear commitment not only from the business community, but also from politicians. Only if we all work together at both regional and national level to pursue common, realistic goals can we achieve something special. This has been our goal for decades and will remain so in the years to come. Foreword from the Managing Directors Martin Blum Philipp Blum 5
Company profile Sustainability Report 2025 Organisational structure and governance 8 Our values and principles 9 Our approach and strategy 9 Our products and services 11 Our production sites and sales locations 12 Our value chain 13 6 © Copyright by Blum MOVING IDEAS FOR SUSTAINABILITY
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Company profile The Blum Group is an international, family-owned business that specialises in the production and distribution of furniture fittings. Our main product groups are lift, hinge, pull-out and pocket systems. In order to make daily life easier for our customers and partners, Blum also offers an extensive range of complementary services to meet their individual requirements needs. These include pre-assembled drawers, logistically optimised packaging solutions and online configuration tools. Furthermore, we offer customised assembly devices and comprehensive digital services for marketing, purchasing, assembly and installation. Our aim is to provide furniture manufacturers with the most comprehensive support possible. Blum has eight plants in the Vorarlberg region of Austria, along with production sites in Poland, Brazil, China and the USA. The company also has 34 subsidiaries and representative offices around the world, which distribute our products and services to customers in more than 120 markets. Organisational structure and governance The Blum Group is an owner-managed family company. Its managing directors Martin Blum and Philipp Blum each have a 26 % share in the business and the remaining 48 % is held by the Blum Private Foundation. The highest management body within the Blum Group is the Executive Board of Blum Group Holding GmbH, which is the sole shareholder in Julius Blum GmbH, the highest-rank operationally active company within the Group. Both managing directors of Julius Blum GmbH (hereinafter "the Managing Directors") belong to the owner family, share equal rights with regard to the business and are appointed for an indefinite period. The Executive Board of Julius Blum GmbH is appointed by Blum Group Holding GmbH as the sole shareholder. Both Managing Directors are members of the Executive Board of Julius Blum GmbH. The Supervisory Board of Julius Blum GmbH has six members, two of whom are selected by the works council to represent the interests of the employees, while the Supervisory Board of Blum Group Holding GmbH has three members. In accordance with the legislation (Section 22 of the Austrian Act on Limited Liability Companies (GmbHG)), the Managing Directors Martin Blum and Philipp Blum are responsible for establishing the governance structure of Julius Blum GmbH, including the creation of the various segments and interdisciplinary roles. The segments are led by separate steering teams, which in turn answer to the Managing Directors. ➔ GRI 2-9, GRI 2-10, GRI 2-11, GRI 2-15, GRI 2-16 Company profile 8 © Copyright by Blum
Company profile As a company, we continue to uphold the values and principles first established by our founder Julius Blum. Our value system is underpinned by two fundamental principles that lie at the heart of all our operations: By consistently upholding our values and principles in our everyday operations, we demonstrate the type of business that we are and confirm our position as a reliable business partner. Our sustainability agenda is an important part of this. We see no contradiction between economics and the environment. On the contrary, we believe that by pursuing sustainable business practices, we benefit both our bottom line and the planet. For us, preserving our natural resources for future generations is both a necessity and, at the same time, an opportunity, which is why we are working to help build a better future wherever we can. Our values and principles We need to ensure the company has a long-term future for the sake of our employees. We pursue a long-term financial policy in order to maintain financial independence and thus freedom of choice for our company for as long as possible. Our approach and strategy Stability and reliability are central to our approach to our everyday business operations. Our business strategy reflects this approach and unites it with our values and purpose as a business. Strategies, trends and innovation We continually develop our strategies in response to ongoing changes in our everyday business activities. However, it is important that we also look ahead to ensure that our company is ready to tackle future opportunities and challenges. We therefore take the time to develop and implement our strategies as part of a collective process. We have created a network within the business and with some select market organisations that continuously monitors the latest trends (e.g. lifestyle, societal, economic and environmental) and assesses their potential impact for our company, including outside of our current core business. We talk transparently about any relevant trends within the company, and our trend network collaborates closely with our innovation network to ensure that these trends are integrated into our work. For us, innovation is the key to safeguarding our future and the basis for continual improvements across all areas of our business. It also requires us to invest consistently in research and development. Thanks to this investment, over many years, we have cemented our position as a pioneering industry leader. Many of our product developments are considered milestones in furniture manufacture. For example, in May 2013, the hinge variant of our multiple award winning BLUMOTION soft-close system for drawers, doors and lift systems was awarded the European Inventor Award by the European Patent Office (EPO). We also rank consistently among Austria's top innovators year on year and have been granted over 2,100 patents worldwide. 9
Company profile Quality policy Our comprehensive quality policy underlines our commitment to meeting the requirements of our partners and customers, while also continuing to improve as a company. The central pillars of our quality policy help guarantee the long-term future of our business and, as such, remain unchanged: – Customer focus: Our mission is to create products, ser vices and processes that deliver real benefits and added value for our customers and par tners. We are commit ted to work ing together with them to deliver our vision for our high-per formance, innovative and high- qualit y products and ser vices. – Innovat ion: Our innovation work is based on proactive engagement with our customers and par tners so that we have a clear understanding of their requirements with respect to our products, ser vices and processes. The knowledge and exper ience we gain through the innovation process form the basis of our qualit y policy. – Cont inual improvement: We are always look ing for ways to improve our existing operations and ask ing questions of ourselves as a company. It is crucial for us that we maintain open feedback channels with our customers and par tners, since this information is key to improving all aspects of our business. – Employee focus: The success of our business depends fundamentally on the dedication of our employees and their sense of identit y with the Blum brand. Creating a climate of mutual trust and open dialogue helps us to continually nurture a strong sense of commitment and loyalt y among our staf f. All employees are expected to uphold Blum's high qualit y standards through their actions. 10 © Copyright by Blum
Company profile Our products and services Our business operations focus on the manufacture and distribution of lift, hinge, pull-out and pocket systems and motion technologies, as well as the provision of supplementary assembly devices and other support services. The following product groups lie at the heart of our business: Our mission is to create innovative and high-quality products that make a lasting difference to the way our customers live their lives. We are committed to finding the best possible solutions for our customers' requirements and are therefore continually looking for ways to improve our products. This includes continuously expanding our product and service portfolio while keeping a close eye on more general lifestyle and furniture trends, such as optimised storage solutions, smart furniture and the home of tomorrow. Using these insights we can create new product groups and variants featuring innovative motion technologies like soft-close or electronic opening mechanisms. We pride ourselves on delivering a comprehensive service for our business customers and manufacturers and on making their lives as easy as we can. That's why we offer additional solutions alongside a large range of services and assembly devices to support our customers in their logistics, purchasing and marketing as well as planning, manufacturing and assembly work. These include our optimised packaging solutions alongside our online Cabinet Configurator and MINIPRESS top processing machine featuring our EASYSTICK automatic ruler system. ➔ GRI 2-6 Lift systems Our AVENTOS lift systems come in many different variants including our bi-fold lift systems, up & over lift systems, lift ups and stay lifts. Hinge systems Our extensive range of hinge systems includes stand-out products such as our latest generation CLIP top BLUMOTION hinge with integrated soft-close mechanism and excellent compatibility with different opening angles. Pull-out systems We offer box systems (LEGRABOX, MERIVOBOX, TANDEMBOX) for metal drawers and also runner systems (MOVENTO, TANDEM) for wooden drawers. Pocket systems Our pocket system, REVEGO, is an integrated slide-in door system that opens up or closes off entire working or living areas. 11
Company profile Blum Argentina Blum Azerbaijan Blum Australia Blum Belgium Blum Brazil Blum China Blum Germany Blum France Blum Greece Blum Hong Kong Blum India Blum Indonesia Blum Canada Blum Kazakhstan Blum Malaysia Blum Mexico Blum New Zealand Blum Norway Blum Austria Blum Poland Blum Portugal Blum Romania Blum Sweden Blum Switzerland Blum Singapore Blum Slovakia Blum South Africa Blum Czech Republic Blum Tunisia Blum Türkiye Blum UK Blum Ukraine Blum Hungary Blum USA Blum Vietnam Blum Poland Blum China Blum Brazil Blum Austria Our production sites and sales locations The Blum Group currently employs over 9,850 people (69 % of them in Austria). In addition there are 34 subsidiaries and representative offices serving customers across the globe. We also have eight plants in the Vorarlberg region of Austria and four production sites in Poland, Brazil, China and the USA supplying products for 120 markets around the world. ➔ GRI 2-1 Blum USA Orange l et ter ing denotes p roduc t i on si tes 12 © Copyright by Blum
Company profile Our value chain Our core business is the development, manufacture and distribution of functional fittings for the furniture industry. Ultimately, we want to make consumers' lives easier and more comfortable by supplying opening and closing solutions for drawers, cabinet fronts and doors as well as associated motion technologies. As a manufacturing company, it is vital that we keep the entire value chain in mind – from the procurement of the raw materials right through to the assembly of the finished product. We firmly believe that Blum products and services should benefit everyone involved at each stage of the value chain. For end consumers of the furniture products, this means that their furniture not only looks great but is also highly functional. For cabinet makers, it means that units are easy and convenient to assemble. For salespeople it means that they always have convincing selling points to hand, and for furniture manufacturers it means access to innovative product systems and efficient manufacturing processes. Our aim at every stage is to minimise any negative impacts of our business activities and create long-term added value, be that financial, environmental or social. It is a commitment that we uphold throughout our value chain, a simplified diagram of which can be seen below: The process up to the point when a product is finally installed in the consumer's home can be divided into several stages. The first is the procurement process, which involves sourcing all the necessary resources, raw materials, semi-finished components, auxiliary materials and supplies (see "Responsible purchasing" chapter). This is followed by the production process, which includes both the manufacturing of individual product components and the assembly of those components to produce the finished product. Once complete, the products are put into storage, at which point efficient logistics and warehouse management come into play, including the provision and management of the relevant infrastructure. Finally, the products enter the distribution process, where they are delivered to our direct customers, retail partners and industrial manufacturers using the most efficient – and environmentally friendly – means possible. We always seek to put our customers' specific requirements centre stage, for example with respect to the product design, the manufacturing possibilities and the range of products (and product variants) that we offer. We also take into account the requirements of the consumers who will use the furniture during the use phase and whose lives we ultimately want to make easier and more comfortable. At the end of its product life, the furniture is ultimately disposed of – ideally using a professional recycling service. ➔ GRI 2-6 Resources Blum Direct customers Indirect customers Use phase End of product life Procurement process Production process Distribution process – Raw mater ials – Energy – Semi-finished components – Operating mater ials and supplies – Component manufactur ing – Assembly – Warehouse management – Distr ibution – Industr ial manufacturers – Distr ibutors – Cabinet makers – Furniture users – End of product life 13
Sustainability at Blum Sustainability Report 2025 Global challenges 16 Questions and answers 17 Our proactive sustainability strategy 18 Sustainability management structure and monitoring 19 In dialogue with our stakeholders 20 Our contribution to the UN Sustainable Development Goals 24 Materiality process 26 Standards, certifications and partnerships 31 14 © Copyright by Blum MOVING IDEAS FOR SUSTAINABILITY
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When it comes to sustainability, there is no quick fix – no simple switch that can be flicked or short-term project that can be wrapped up quickly. Sustainable business practices are vital, but they are also a long-term commitment that requires stamina and a fierce determination to succeed. That being said, determination alone is not enough. If we are to play our part in a sustainable transition, we need to follow a clearly defined roadmap. We must commit to achieving each of the steps along the way and keep finding new and better ways of running our business. Sustainability at Blum Sustainability at Blum Global challenges Today's world is full of complex challenges that require immediate solutions – not least the global challenges associated with the climate emergency. Faced with these challenges, numerous businesses and even entire industries are shifting their priorities away from a profit-driven approach, where success is defined solely by their bottom line, and moving towards more responsible business models. Businesses focused purely on financial gain are fundamentally out of step with today's changing world. Instead, companies need to set precisely defined goals and take targeted steps to address the wide-ranging environmental, social and governance challenges we face. At Blum, we understand this and we are responding with tangible sustainability-orientated action across all areas of our business. 16 © Copyright by Blum
Sustainability at Blum Questions and answers 1. Sustainability has always been a core value at Blum. How do your areas of responsibility (quality, purchasing and sustainability) make a targeted contribution to this corporate value? Additionally: where do you see current challenges in your areas of responsibility when it comes to strengthening and advancing sustainable development within the company? Alongside timeless design, innovative features and excellent motion, our products are characterised above all by their durability. They are designed to remain in use throughout the entire lifespan of the furniture without compromising on functionality. That is what we understand by product sustainability and have established the conditions to safeguard this commitment by merging the quality, procurement and sustainability departments. Thanks to the resulting synergies, we are not only able to achieve sustainability but also profitability – be it in our own factories or in how we work with external partners. In my opinion, the greatest challenge currently lies in geopolitical developments. Cautious economic forecasts, wars and changing trade relations are pushing many companies to their economic limits, which unfortunately is forcing the issues of climate change and environmental destruction to take a back seat in many places. That makes it even more important to look for solutions that are both economically viable and ecologically sound. 2. What role does responsible procurement or purchasing play when it comes to product sustainability and do relevant market or customer requirements exist in this area? If so, how is Blum prepared for these? Given the risks posed by climate change, we have a greater responsibility than ever to largely do away with the use of with fossil fuels altogether in the future. This is a view that we share with our customers. Scandinavian clients in particular are among those who have set concrete demands for a reduction in the carbon emissions generated by us and by our products. Customers are also requesting and pushing for the use of low-carbon materials, despite the (sometimes significant) added costs this involves. Given that we are capable of accurately and transparently calculating the carbon footprint of our products, we already offer this option – for example by sourcing CO2-reduced steel for our fittings systems. 3. What influence does sustainability have on the design and development of new products? What positive design opportunities does it afford? Every new Blum product and the corresponding manufacturing processes are subject to an environmental and energy check during the innovation phase. The results highlight potential areas for improvement in relation to material use, energy sources and our environmental performance. The decisive factor here is which products we use for which application. The kitchen, for example, places the highest demands on our products and we satisfy these over the entire lifetime of the furniture. Conversely, the requirements in the living room and bedroom are significantly lower, meaning material savings are possible – although these must not compromise the quality or durability of our products in any way. After all, we talk about "Sustainable Quality by Blum" with good reason. Jochen Lubetz, Director Quality, Procurement & Sustainability 17
Sustainability at Blum Our proactive sustainability strategy At Blum, we believe it is vital to conserve natural resources for future generations. We also believe that sustainable business practices are only possible if we strike the right balance between economic, environmental and social factors. This holistic approach is central to our sustainability agenda, which forms a core component of our overall business strategy. Our business strategy defines our company's values, business direction and purpose and sets out strategies for each area of our business. In line with this company philosophy, our sustainability strategy defines our long-term vision for how we as a business intend to contribute to the UN's 17 Sustainable Development Goals (SDGs), including in our everyday operations. ➔ GRI 2-22 High quality standards Our core business is to produce high-quality, highly functional and user-friendly products that are built to last. In doing so, we seek to use resources carefully and avoid any damaging impacts on the Earth's ecosystems. Trusted partner We show respect towards the people and organisations with which we are associated. The health and safety of those around us is of utmost importance to us. Innovation for the long-term By thinking long-term, we can develop innovative ideas for new products, services and business models. If these ideas prove to be feasible and profitable, then we look to incorporate them into our investment decisions. Committed to sustainability We are committed to responsible growth. Environmental and social sustainability is just as important to us as the financial health of our company and this belief is reflected in our investment decisions. Sourc e: Exc er pt f rom Blum business s t rategy 18 © Copyright by Blum
Sustainability at Blum Sustainability management structure and monitoring To manage, monitor and advance Blum's strategic actions and targets on sustainability, the Executive Board of Julius Blum GmbH (see "Company profile" chapter) has established a Sustainability steering team, which provides regular progress reports. One of the members of the Executive Board is also a member of the Sustainability steering team, which means certain strategic interventions can be made directly by the steering team. All sustainability measures, both general and case-specific, are approved by the Executive Board before being implemented by the Sustainability steering team or the relevant specialist team within the company. The company's strategic sustainability targets are defined in advance with input from the Executive Board and in line with the company's values. Based on these company-wide targets, the Executive Board also defines specific strategic targets for implementation within the individual specialist divisions. The operational management of Julius Blum GmbH is the responsibility of the Sales, Marketing, Distribution and Technology, Product Systems (TPM) and Manufacturing Steering Teams and the Executive Board of the Furniture Fittings division. As company owners, both Managing Directors are stakeholders in this process. They have created an integrated management system (IMS) committee, which is responsible for establishing, implementing and monitoring the various management systems needed to meet the company's sustainability targets. The IMS committee is headed up by the Director Quality, Procurement & Sustainability (QPS) and includes the heads of the management systems, finance, distribution, procurement and sustainability departments, as well as representatives of the relevant management systems. Its remit includes the following areas: quality, environment, energy, AEO (authorised economic operator), customs duties, sanctions, internal control systems (in line with Section 22 of the Austrian Act on Limited Liability Companies (GmbHG)), risk management, health and safety and information security. The committee consists of a representative of the Executive Board, a representative of the Technology, Product Systems, Manufacturing (TPM) and Sales, Marketing, Distribution (SMD) steering committees, as well as representatives of the management systems from the aforementioned areas. The person responsible for the IMS committee reports directly to the Executive Board of Julius Blum GmbH. The relevant systems and functions are also audited by the Internal Audit and Management Systems Audit units on an ad hoc basis, while external audits are also conducted for certain specialist divisions. The purpose of networks like the IMS committee is to bring together staff members from different specialist areas, each with primary responsibility and reporting obligations for their own area but with a wider shared responsibility. The Executive Board meets weekly and the steering teams of the segments meet monthly, while other committees and steering teams meet for a specific reason and / or to discuss a particular business need. Committees and steering teams report regularly to the Executive Board (as the mandator) and also usually include at least one member of the Executive Board. ➔ GRI 2-12, GRI 2-13, GRI 2-14, GRI 2-17 19
Sustainability at Blum In dialogue with our stakeholders The motivation for our sustainability efforts and actions is twofold: naturally, we want to demonstrate our commitment to sustainable business practices, but we also want to respond to the needs and expectations of our stakeholders – i.e. all parties that have a personal and / or professional interest in our company, are impacted by the actions of our business or have influence over its future development. We therefore need to identify and classify our various stakeholder groups – i.e. whether they are impacted by or have influence over our business – so that we can recognise their needs and requirements and align these with our decision-making, target-setting and sustainability actions. Within the framework of our management review and with the involvement of the specialist departments, the following picture emerges: ➔ GRI 2-29 20 © Copyright by Blum
Internal External Ex Sustainability at Blum Internal External Owners Customers Employees Suppliers / strategic partners Works council Networks Supervisory Board Authorities / legislators Public / media Communities / neighbours Public / media Communities / neighbours Suppliers / strategic partners Owners Supervisory Board Networks Customers Works council Authorities / legislators Employees 21
Sustainability at Blum Stakeholders Description Customers With our products and services, we aim to deliver lasting benefits and added value for our customers around the world. We develop sustainable products with a highly functional, durable and aesthetically pleasing design. We therefore maintain personal contact and regular communication with our customers to ensure we are best placed to understand their needs and develop solutions in collaboration with them. Frequency of interaction: Dialogue format: Ongoing or ad hoc Customer consultations, real-life kitchen observations, audits, complaints handling Employees Our employees are the essential building blocks of our corporate strategy and the driving force behind the sustainable development of our company. We therefore seek to maintain open, honest and equitable lines of communication with all our staff. If we are to achieve our collective goals and, at the same time, promote the personal development of each individual employee, we must create jobs that make sense for us as a business but are also challenging for our employees and give them a certain scope of influence. More detailed information about our approach can be found in the "Spotlight on our people" chapter. Frequency of interaction: Dialogue format: Continuous Employee information, employee events, day-to-day operations Owners As an international family company, we believe that sound environmental practices are ultimately good for business. We consider it our responsibility to look after both people and the planet and are committed to playing our part, not least because responsible and sustainable business practices are vital to the long-term future and financial independence of our company. The Executive Board regularly informs the company owners of any actions and business developments that relate to sustainability, facilitating the introduction of strategic interventions where necessary. Frequency of interaction: Dialogue format: Regularly Discussions, meetings, personal conversations at company premises Works council As the mouthpiece for the Blum workforce, the works council is actively involved in the company's sustainability efforts. Frequency of interaction: Dialogue format: Ad hoc Employee events, provision of information, advisory support Suppliers / strategic partners Our suppliers and strategic partners have an important interest in and major influence over Blum's business activities. We are committed to building long-term commercial partnerships where all partners are considered equal and work together to develop solutions and invest in innovation and research. We expect our partners to share our sustainable approach and commitment to environmental, social and governance (ESG) standards and work together with them to advance these standards across our value chain. Frequency of interaction: Dialogue format: Regularly Annual development dialogues, discussions, training, supplier surveys and audits 22 © Copyright by Blum
Sustainability at Blum Stakeholders Description Public / media The way we communicate with the public and the media plays a key role in shaping external perceptions of our company. This also applies to our endeavours, actions and progress in relation to building a sustainable corporate structure. Frequency of interaction: Dialogue format: Regularly Press conferences and press releases, trade fair appearances, interviews, one-on-one discussions, media enquiries Communities / neighbours With eight sites in Vorarlberg, Austria, our company is firmly rooted in the local region and strongly believes in building good relationships with our surrounding communities and neighbours. We work together with local communities to develop sustainability initiatives that benefit us all, such as green transport solutions and measures to keep emissions from our facilities as low as possible. Plans and solutions for specific company sites are developed in collaboration with the neighbouring communities and play an important role in our sustainability initiatives. Frequency of interaction: Dialogue format: Regularly Personal conversations, neighbourhood discussions, press conferences Supervisory Board The Supervisory Board is the highest governance body within our company and is kept regularly informed of any sustainability actions and targets and progress towards these. Frequency of interaction: Dialogue format: Regularly Regular schedule of Supervisory Board meetings Networks By joining partnerships and networks and actively participating in discussion forums dedicated to sustainability topics, we have the opportunity to exchange ideas with other businesses facing the same challenges as us. Industry and trade associations are, for instance, a valuable source of information and also an important platform for developing shared solutions to environmental and business challenges. Frequency of interaction: Dialogue format: Ongoing or ad hoc Events and networking opportunities (general and subject-specific) Authorities / legislators We are committed to ensuring compliance with legislative requirements, meeting our reporting obligations towards the regulatory authorities and completing any mandatory audits required by law across all areas of our business – and sustainability is no exception. We maintain open, honest and direct lines of communication with all authorities and consider this a fundamental part of running a responsible business. Frequency of interaction: Dialogue format: Regularly, as required Governmental reporting systems, interactions with local authorities (site development plans), mandatory audits (emissions) 23
Sustainability at Blum Our contribution to the UN Sustainable Development Goals In 2015, the UN published its 2030 Agenda for Sustainable Development. At its heart are 17 Sustainable Development Goals (SDGs) and 169 sub-targets intended to promote sustainable development across three dimensions: social inclusion, economic growth and environmental protection. Overcoming the challenges in all three of these areas requires both new partnerships and innovative approaches. At Blum, we use the 2030 Agenda as a guideline for our wide-ranging sustainability activities. We are determined to play our part in building a sustainable future and have therefore chosen to focus our efforts on those SDGs where we, as a manufacturer and distributor of furniture fittings, can have the most impact. In order to facilitate their further development and contribute to achieving the sub-targets set out in them, we launched and implemented a range of projects and initiatives at our sites during the reporting period which are geared towards SDG fields of action. – Protec t ing the heal th, wel lbeing and soc ial secur i t y of emp loyees (wor k p lace ergonomic s, oc cupat ional heal th management) – Ensur ing produc t s are high- qual i t y, safe and ergonomic to use (focus on customer s) Spot l ight on our peop le, soc ial dialogue Spot l ight on our peop le, soc ial dialogue Cl imate protec t ion and energy Spot l ight on our peop le, soc ial dialogue Environment Spot l ight on our peop le, governance Environment – Pur suing a hol ist ic approach to knowledge and learning across the company – Provi ding comprehensive training and educat ion (learning and development oppor tuni t ies, Blum Path, qual i f icat ions, per sonal responsibil i t y and soc ial sk il ls, future prospec t s) – Del iver ing except ional apprent ice training (par t ic ipat ion in nat ional and internat ional championships) – Creat ing a wor k ing environment wi th zero tolerance of discr iminat ion and prejudice and wi th open and equi tab le l ines of communicat ion – Promot ing equal oppor tuni t ies and diver si t y – Ensur ing equal ac cess to a range of career paths for young women and men – Conser ving resources and improving ef f ic iency of water use (c losed- loop water cyc les) – Moni tor ing wastewater management and discharge – Energy and resource ef f ic iency increased – Using renewab les – Expanding and improving environmental and energy management prac t ices – Pur suing responsib le grow th – Estab l ishing humane wor k ing condi t ions and wor k processes – Imp lement ing proac t ive heal th and safet y protocols – Provi ding company heal thcare – Opt imising use of resources r ight from produc t development stage – Opt imising emissions throughout produc t l i fe cyc le (produc t car bon footpr int) – Incor porat ing sustainabil i t y cr i ter ia into innovat ion and development process – Imp lement ing ef f ic ient produc t ion processes (modern infrastruc ture, cont inuous moni tor ing) SDGs Our contribution Field of action 24 © Copyright by Blum
Sustainability at Blum Environment, mater ial usage and resource ef f ic iency, responsib le procurement Spot l ight on our peop le, soc ial dialogue Governance Environment, mater ial usage and resource ef f ic iency, governance Governance, responsib le procurement Environment, energy and c l imate impac t – Ac t ing as a sustainab le par tner and del iver ing added value to local region – Imp lement ing mobil i t y p lans to reduce use of pr ivate transpor t in local region – Reduc ing total amount of waste generated (prevent, reuse, recyc le) – Using recyc led mater ials – Closing mater ial loops – Increasing usage rate for raw mater ials – Improving cor porate car bon footpr int (Scope 1, 2 & 3 emissions) – Opt imising and reduc ing emissions throughout produc t l i fe cyc le (produc t car bon footpr int) – Imp lement ing c l imate -fr iendly transpor t logist ic s (swi tching to greener energy sources) – Promot ing sustainab le and responsib le procurement of resources – Imp lement ing waste management plans (waste recover y, recyc l ing) – Tak ing ac t ion to improve biodiver si t y – Strengthening comp l iance struc tures – Uphol ding Blum Code of Conduc t and Supp l ier Code of Conduc t – Provi ding whist leb lower system (Blum Integr i t y Line) – Def ining sustainabil i t y cr i ter ia for supp l ier evaluat ions – Par t ic ipat ing in net wor ks (promot ing dialogue around sustainab le development) SDGs Our contribution Field of action 25
Sustainability at Blum Materiality process After conducting our double materiality assessment for the first time in 2022, it was comprehensively updated in the reporting year with the help of external experts. This update was based on the requirements of the upcoming Corporate Sustainability Reporting Directive (CSRD) and served as preparation for this mandatory regulation. The further development and results of the update are set to be published in the upcoming sustainability report. The materiality assessment provides the focus for our strategic sustainability planning. By applying the structured assessment process, we seek to identify the key impacts, risks and opportunities both for our company and for our stakeholders. It also provides us as a business with the opportunity of managing the identified topics and thus determining and utilising the potential improvements we can make across the various different areas. Process for determining material sustainability issues The process of defining those topics that are material for us includes the perspectives of the relevant stakeholders and highlights the environmental, economic and social issues relevant to our long-term corporate success. We derive the focal points for our sustainability activities from this process. It can be broken down into three phases: Research / analysis – Assessment – Definition of topics ➔ GRI 3-1 26 © Copyright by Blum
Sustainability at Blum Research and analysis The team of external experts first helped us to analyse the business activities as well as our upstream and downstream value chain to create a provisional list of material topics. This "long list" provided an overview of all the key areas where our operations have a notable impact in terms of the environment, society and aspects of governance (ESG). We then categorised and consolidated our long list based on ESG criteria to create a "consolidated list" of 13 potential material topics. Assessment Next, we analysed our potential material topics to assess how they each impact our business financially (outside-in perspective) and conversely how our activities in each area impact on society and the environment (inside-out perspective). The assessments were completed by the relevant stakeholders during workshops with the help of the external experts. Definition of material topics Finally, we combined our list of potential material topics with the results of our outside-in and inside-out assessments and stakeholder survey, before summarising the findings in a clear and transparent materiality matrix. In line with the principle of "double materiality", this matrix gives equal weighting to stakeholder views and the inside-out and outside-in perspectives and is based on the three standard components of a double materiality assessment: – Sustainabilit y impact assessment (inside- out) – Financial impact assessment (outside-in) – Stakeholder sur vey Step 1: Research / analysis Step 2: Assessment Step 3: Material topics 27
Sustainability at Blum Focus: Sustainability impact assessment / inside-out Analysing our environmental, social and governance impacts In order to assess the environmental, social and governance impacts, a survey of emissions was carried out for each material topic. The material topics were described by experts in terms of their severity (scale, scope and irremediability) and the possible occurrence of negative impacts, and then evaluated using weighting factors of 0 to 5. The higher the factor, the more material a topic is in terms of sustainability impact. Focus: Financial impact assessment / outside-in Analysing the financial impacts on our business The double materiality method takes into account not only the company's environmental, social and governance impacts, but also the potential financial impact on the company's operations. In a first step, worst-case scenarios were defined for each of the 13 potential material topics based on a roughly ten-year timeline and finalised in consultation with the experts. The assessors were then selected. The assessment was carried out using an online questionnaire sent to 13 members of the management team. The assessment focused on two areas: – Financial impacts in terms of capital goods (access to resources, continued use). – Financial impacts in terms of stakeholder dependencies. These were evaluated using a weighting factor of 0 to 4 for the different scenarios. 28 © Copyright by Blum
Sustainability at Blum Stakeholder survey Internal stakeholder survey Stakeholder input is vital to the process of defining and also prioritising material topics. In our case, based on the results of our 2021 stakeholder survey (which involved both internal and external stakeholders), we decided only to include internal stakeholders in our assessment. Participants were selected from a wide range of areas to ensure that as many different viewpoints as possible were represented and that the results painted a realistic picture of all stakeholder perspectives. Initially, the stakeholders were asked to rate all the material topics on the "long list" from 1 (not important) to 6 (very important). They were then asked to put the five topics considered most important by stakeholders in order of priority. Illustration of material topics (materiality matrix) The results of the materiality assessment, as presented by the Sustainability steering team, can be seen below: The diagram above shows the results of our materiality assessment and the threshold – determined in collaboration with internal and external experts – that we used to define the material topics to be included in our sustainability reporting. – Y-a xis: Impact assessment (inside- out) – X-a xis: Financial assessment (outside-in) – Size of circle indicates relevance of topic from stakeholders' perspective – Mater ial: repor table – Not mater ial: not repor table Outside-in Material topics Non-material topics Inside-out Climate protection and energy Employee satisfaction Environmental impacts in the upstream value chain Corporate environmental impacts Commercial waste and product end of life Customer satisfaction and consumer protection Local community engagement across the value chain Business processes and compliance Employee rights Diversity and equality Human rights in the upstream value chain Water and effluents Size of circle indicates relevance of topic from stakeholders' perspective Health and safety Low Low High High 29
Sustainability at Blum List and description of material topics Material topic Short description Climate protection and energy As an industrial company, we are conscious of our responsibility to protect the environment and we continue to work hard to minimise the environmental impacts of our business. Our actions in this area include promoting more efficient use of resources and reusing resources as part of closed-loop cycles. For example, by pursuing a comprehensive energy management strategy focusing on replacing fossil fuels with renewables (our current energy mix includes 66 % renewables) while at the same time reducing our general energy consumption (e.g. through waste heat recovery in production). Converting our fleet of internal trucks to climate-friendly biogas is another noteworthy step we have taken. Thanks to all these actions, we are gradually reducing our emissions and carbon footprint. Environmental impacts in the upstream value chain At Blum, we minimise our potential upstream environmental impacts by selecting responsible suppliers for the procurement of our raw materials. We seek to build long-lasting, committed business partnerships that offer security and stability and enable us to procure consistently high-quality raw materials and consumables from trustworthy sources (more information in "Partnership across the supply chain" chapter). Employee satisfaction The satisfaction of our employees is vital to the success of our business, which is why we have a host of company-wide administrative, organisational and structural measures in place to support and motivate our staff. In particular, training, education and personnel development are a top priority at Blum (more information in "Spotlight on our people" chapter). Human rights in the upstream value chain The promotion of human rights is one of the core values of our business. Humane practices lie at the heart of all our business partnerships and we keep a close eye on the working conditions across our value chain (more information in "Partnership across the supply chain" chapter). Business processes and compliance We understand our responsibilities towards our company and our business partners, as well as towards the environment and wider society. This understanding is reflected in the Blum Code of Conduct, which sets out our values and the fundamental principles that underpin our identity as a company. Our Code of Conduct sets binding standards for our conduct and interactions with other companies and external partners that go beyond the minimum standards required by law. ➔ GRI 3-2 30 © Copyright by Blum
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