SUSTAINABILITY AT FERRUM S.A.

VISION, MISSION, VALUES IN THE AREA OF SUSTAINABLE DEVELOPMENT

Vision: FERRUM wants to be a reliable, socially responsible partner for all Stakeholders in every sphere of its business, operating in accordance with the principles of law, ethics and sustainable development.
Mission: The mission of the FERRUM Group is to provide customers with professional products of the expected quality and, at the same time, stable, sustainable development of the company, which translates into an increase in its value for shareholders.
VALUES of FERRUM S.A.
Respect: Mutual respect is the basis for building a friendly work environment and lasting relationships inside and outside the company. It also allows to broaden horizons by respecting different views.
Teamwork: As responsible cooperation based on trust, support and open communication.
Knowledge and excellence: By expanding our knowledge and skills, we consistently strive for perfection.
Creativity: We are open, we go beyond the patterns, we enthusiastically look for the best way to reach the goal.
Quality: We have adopted as a standard one of Aristotle’s paremies, according to which “quality is a habit, not an event.”
Safety: Safety understood as: safe employee, safe product, safe tomorrow.

STRATEGIC GOALS FERRUM S.A.
FERRUM S.A. is a steel pipe manufacturer and insulated pipes and structural hollow sections.
Quality, environmental protection, including energy saving, occupational health and safety are the principles of every activity and are inextricably linked to the development strategy.
The company focuses on strengthening innovation and sustainable development, as well as increasing the ability to respond to the changing economic environment
The strategic goal of FERRUM S.A.:
 providing customers with innovative and high-quality energy transfer solutions, based on the latest technologies and consistent with sustainable development standards,
 diversification of the product portfolio to increase resistance to changing market conditions and the use of new business opportunities,
 increasing market shares in the segment of hydrogen and ammonia pipes, taking advantage of the growing demand for these products and the company’s competitive advantage,
 increase in market shares in Poland and abroad,
 strengthening financial stability and increasing the flexibility of financing further development, respecting the principles of sustainable economic development and taking into account the changing economic environment,
 development in line with ESG requirements regarding environmental protection, social responsibility and corporate governance.

SUSTAINABILITY
Taking into account the limited nature of resources, the need to take actions to counteract water, soil, air and biodiversity pollution, as well as responsibility for the environment of FERRUM S.A. considers it critical to conduct business in compliance with the principles of sustainable development.
The implementation of the above-mentioned strategic goals is therefore achieved in particular through the processes and initiatives indicated below:
 maintaining and continuously improving the effectiveness of the Integrated Management System that meets the requirements of the standards ISO 9001, API Spec. Q1, ISO 14001, ISO 45001, ISO 50001, ISO 3834-2, ISO 10002, ISO/ IEC 17025,
 compliance with legal and other requirements applicable to the business, with particular emphasis on requirements for manufactured products, occupational health and safety, and radiological protection,
 energy efficiency, environmental protection, including the principles of cleaner production, and energy use and consumption,
 environmental protection, including preventing pollution and reducing the negative impact on the environment, including the carbon footprint of the organization and products,
 continuous improvement of the energy result of implemented processes, in particular by focusing efforts on the rational use of energy, natural resources and energy utilities,
 purchasing energy-efficient products and services that influence the energy result
 limiting the negative impact on local communities,
 implementation of initiatives aimed at reducing greenhouse gas emissions related to the organization and products,
 implementing solutions supporting data aggregation for sustainability reporting purposes,
 taking actions aimed at increasing the environmental and climate awareness of stakeholders, in particular contractors,
 implementation of modernization and investments aimed at adapting the organization’s activities to the ongoing climate changes, taking into account the improvement of the energy result,
 ensuring safe and hygienic working conditions to prevent work-related injuries and health problems,
 eliminating threats and mitigating risks related to occupational health and safety,
 conducting dialogue (consultation and participation) of the Company’s management with employees, employee representatives, business partners and other interested parties affected by the Company’s activities,
 creating an optimized work environment, including maintaining a qualified crew, which will enable improvement of production efficiency and provide access to the necessary resources,
 Active risk management and monitoring of action plans in relation to risks and opportunities
 integrating the requirements of the implemented management systems with business processes as well as promoting the use of a risk-based process approach,
 implementation of the laboratory’s quality policy by ensuring competence, impartiality and consistency of laboratory operation,
 implementing the complaints policy,
 ensuring the availability of information and resources necessary to achieve the goals and specific energy goals, including others resulting from this policy.
 taking actions towards the implementation of ecological steel products in the era of the green hydrogen revolution
 contributing to maximizing the reuse of pallets and packaging waste as part of sustainable development
 cooperation with a packaging recovery organization to increase the level of recovery and recycling of packaging waste,
 education and organization of internships for secondary school, vocational and university students
 organization of periodic training in the area of occupational health and safety and environmental protection for employees, subcontractors and tenants of the Company’s facilities,
 financing of specialized courses improving the qualifications of young employees (postgraduate studies, specialist courses),
 preparing the organization to report in accordance with ESRS standards (European Sustainability Reporting Standard),
 implementation of the carbon footprint calculation project for three scopes, i.e. the organization’s emissions throughout the value chain.
The company also applies the “Code of Ethics and Business Conduct of the FERRUM Capital Group” and the “Code of Conduct for Suppliers of the FERRUM Group”.
These codes apply to both external and internal relations and are available on the corporate website www.ferrum.com.pl.
The Company’s intention is also to promote the adopted principles and values throughout the supply chain. Aware of the direction of development in which the Company is heading, we appreciate the importance of reputation, which, when built over the long term, should be protected by the implementation of appropriate standards, procedures and policies.

GLOBAL COMPACT PRINCIPLES RELATED TO THE CODE OF ETHICS
Through involvement in the Clean Production initiative, FERRUM has included 10 UN Global Compact Principles in its areas of activity, including: strategies, policies and procedures. By establishing the right organizational culture, the Company not only fulfills fundamental responsibilities to people and the planet, but also prepares for long-term benefits.
The assumptions deal with ten universal principles regarding human rights, work, anti-corruption environment and taking actions to support social goals – including the Sustainable Development Goals.
1. respect and support the protection of internationally recognized human rights
2. eliminate all cases of human rights violations by the company
3. support freedom of association and recognize of the right to collective bargaining
4. support the elimination of all forms of slavery and forced labor
5. contribute to the effective abolition of child labor
6. counteract discrimination in employment
7. support a preventive approach to environmental problems
8. take initiatives to promote greater environmental responsibility
9. support the development and popularization of environmentally friendly technologies
10. counteract corruption in all its forms, including bribery and extortion.

RESULTS OF ACTIONS TAKEN IN THE AREA OF SUSTAINABLE DEVELOPMENT
• According to internal data, the share of recycled materials in annual production from 2021 is:
 25-35% in the field of steel materials, depending on the technological capabilities of the supplier and the intended use of the material,
 30-40% for selected welding consumates,
 40-50% in the scope of plastics,
 30% in the pallet return system, which is additionally confirmed by the award „Green Label”

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• Industrial process water is protected by a closed circuit, and additionally, from 2021, the use of rainwater for technological processes reduces the area consumption by 20%, and thus reduces the annual consumption of tap water.
• In 2021, FERRUM S.A. has obtained EPD environmental declarations for its products, assessing the sustainable use of resources and the sustainable impact on the natural environment throughout the product life cycle.
The EPD certificate is valid until June 28, 2026. The EPD certificate is available at the following link: https://www.ferrum.com.pl
• Since 1996, the Company has been a member of the “Association of the Polish Cleaner Production Movement” and is entered into the Register of Cleaner Production and Responsible Entrepreneurship under number 001/1996. Entry into the register is renewed annually based on the company’s environmental performance as presented in the Sustainability Report. This entry is a declaration of taking into account the principles of the “UN Global Compact” in its policy, i.e. obligations in the field of respecting human rights, labor standards, environmental protection and counteracting corruption, and proof of participation in the system of Voluntary Ecological Commitments under the Polish CP Program.