Process for human rights risks

SSAB´s Guide to Code of Conduct expresses support for the UN Guiding Principles on Business and Human Rights. SSAB continuously reviews risks and processes to prevent, identify and address any negative impact on human rights that the business may cause or contribute to.

SSAB has already conducted an assessment of human rights, including measures to limit and prevent risks. During 2024, the Group-wide Ethics Council updated the previous risk assessment of human rights and SSAB´s most salient human rights risks were identified within four prioritized areas: climate impacts, safety, just transition and sustainability in the supply chain. Within these areas we consider that we have a higher risk and impact a large number of people and we will therefore prioritize these areas in the future. Salience was determined based on severity and likelihood. The prioritized areas were identified after stakeholder dialogue with, among others, employees, union representatives, suppliers, customers, and owners. Work to develop identified action plans is constantly ongoing.

Our risk process for human rights includes the following (see below):

• Risk assessments to proactively identify and assess any potential or actual negative impact in our value chain and develop action plans
• Implementation of the action plans including training for employees
• Tracking of implementation and results
• Report and communicate our work on human rights

It is a long-term work to identify and manage human rights risks. We are aware of new risks that may arise due to changes in our geographic presence, our business operations, and our business relationships. We develop our work through experiences and stakeholder dialogues as well as by increasing the awareness of human rights among our employees and business partners. Human rights are an important aspect when SSAB screens suppliers and SSAB has adopted a Supplier Code of Conduct. SSAB has also adopted a new Business Partner Code of Conduct for other business partners which clarifies our expectations, among other things, on human rights.

SSAB is committed to minimizing the negative environmental impact of our operations, to largely removing carbon dioxide emissions from our own operations and to be the first steel company in the world to bring fossil-free steel to the market.

• SSAB’s targets for greenhouse gas emissions are approved by the Science Based Targets initiative (SBTi), based on an ambition level of below 1.5°C.

• New Nordic production system will bring forward the green transition.
• SSAB Fossil-free steel™, is produced by using HYBRIT^® technology, with direct reduction of iron ore using fossil-free hydrogen – emitting water instead of CO₂.
• SSAB Zero™ is made from recycled steel and produced with fossil-free electricity and renewable natural gas – resulting in steels with virtually no fossil carbon emissions.

SSAB aims to become the world’s safest steel company. Ensuring a safe and secure environment for our employees, contractors and visitors.

• Sites are required to systematically identify safety risks and take action to minimize these risks. Local occupational health and safety programs must be developed in accordance with legislation in each country.
• The Health and Safety Council has primary responsibility for coordinating safety work, proposing policies and strategic initiatives.
• The Safety Expert Group consists of SSAB experts with the purpose of sharing information on, for example, preventive measures.
• All employees must sign SSAB’s safety pledge, which is a commitment to always put safety first.
• Safety training and discussion forums in order to increase contractors’ safety awareness.

The transition to fossil-free steelmaking is a massive undertaking, not just in terms of technology. The transformation will, in addition, impact our ways of working, processes, culture and commercial operations.

• The shape of the transformation and the changes brought by will vary from location to another. As the planning progresses we will have more clarity regarding feasible organization models, roles, and requirement on employees’ skills and competences.
• Providing opportunities for competence development and support to employees affected by the transformation is important for SSAB.
• SSAB protects human dignity in our business practices and in the communities where the transition/transformation takes place.

We devote much effort to ensuring we behave in an environmentally sound and ethically responsible manner throughout our business, and the suppliers we partner with play a critical role.

• SSAB works with all suppliers to effect positive change, and we require our suppliers to follow our Supplier Code of Conduct.
• Suppliers shall provide fair working conditions for its employees. Suppliers shall provide safe and healthy workplace conditions and treat employees with fairness, dignity and respect. Suppliers shall focus on continuous improvements to reduce carbon emissions and minimize their environmental impact.
• SSAB will focus on risk assessments, screening of our suppliers, site visits and audits and continue to strengthen sustainability requirements towards our suppliers.