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's activity report 2022

Scania Eesti AS is a company engaged in the sale and after-sales service of heavy-duty vehicles and buses, being a subsidiary of the Swedish group Scania CV AB

in Estonia.

Scania CV AB is part of TRATON SE (until 2018 Volkswagen Truck & Bus GmbH), which also includes truck and bus manufacturers MAN and Volkswagen Caminhões e Ônibus. The parent company of TRATON SE is Volkswagen AG.

As the leading importer, seller and maintainer of heavy-duty vehicles and buses in Estonia, Scania Eesti AS takes a responsible approach to its business and is a member of the Estonian

Responsible Business Forum since 2019. The Scania Group has a strategic goal to be a pioneer in sustainable transport solutions, supporting the creation of a responsible mobility world that is better for businesses, society and the environment. In achieving this goal, we are aware of our responsibility and the impact of our business on the natural and living environment, and in 2020 we set science-based targets (Science Based Targets Initiative) to reduce the footprint of Scania products in line with the goals set in the Paris Climate Agreement.

As a business, we are responsible for how our products, services and facilities affect the environment and its sustainability. Our goal is to use environmentally friendly and efficient technologies throughout the product life cycle. From product development and production, we do everything to save natural resources and reduce environmental impacts, following all environmental protection rules. In addition, we continuously assess the compliance of our products and production processes with environmental requirements and, if necessary, make improvements to existing processes and working methods.

Scania Eesti AS is a responsible member of society and a partner to the state and community. We discuss mobility solutions for the future and achieving sustainable development with various stakeholders. In 2021, Scania Eesti achieved the highest level in the Responsible Business Forum index - gold level.

Scania Eesti AS takes our responsibility to protect the health and safety of our employees very seriously. We support employee health care, improve performance and increase job satisfaction by continuously improving working conditions and using a variety of measures to promote healthy well-being.

To prevent corruption and support fair business practices, Scania Eesti trains its employees with materials developed by the parent company Scania CV AB. Scania's code of ethics "Doing Things Right" includes a behavior guide "Code of Conduct", which outlines Scania's core values and ways of working in accordance with human rights and equal treatment principles. Scania's core values are published on the company's website https://www.scania.com/ee/et/home/about-scania/career.html

Science-based targets In 2019, the Scania Group decided to change its business to be in line with the goals of the Paris Climate Agreement - to keep the world's weather temperature growth within 2 degrees Celsius and to strive to keep the

Earth's temperature increase caused by greenhouse gases (CO2e) to 1.5 degrees. Therefore, since 2019, the business buildings owned by Scania Eesti AS use renewable electricity, and in 2022, negotiations were started on the use of renewable electricity on rental areas with the owners of these buildings. In addition, Scania

Estonia continued in 2022 to make its own buildings more energy-efficient and to switch to company cars using renewable fuels (biomethane) and electricity.

In May 2020, the international organization for reducing corporate footprint, the "Science Based Targets Initiative", confirmed Scania's carbon reduction targets and Scania became the world's first heavy-duty vehicle manufacturer to officially commit to reducing greenhouse gas emissions in business with science-based targets. By 2025, Scania aims to reduce CO2e by 50% compared to 2015 levels in both its production and sales operations. This is complemented by CO2e reduction targets in Scania's transport, energy and water use, and since 2020, 100% use of renewable energy in all Scania units and representations worldwide (in Estonia already since 2019).

Scania uses the internationally most commonly used and recognized Green House Gas Protocol (GHG protocol) standard to calculate climate impact, to measure the size of greenhouse gas emissions. The GHG protocol divides the company's emissions into three areas.

The first area includes emissions from the company's own production when we burn fossil fuels for heating buildings, testing engines or using company vehicles for work trips. The second area includes indirect emissions that we generate from the use of purchased electricity, heat or district heating. In terms of the first and second areas, Scania has set a science-based goal to reduce CO2e emissions by 50% compared to 2015.