Annual Report and Sustainability Report 2020

SUSTAINABILITY

About the Sustainability Report

The purpose of this report is to give our stakeholders relevant information about how KONGSBERG approaches sustainability and ESG issues. The report also covers reporting requirements according to accounting legislation and GRI-Standards.

Reporting for 2020

The report covers 2020, and addresses topics of importance to us and our stakeholders. Any significant events from 1 January 2021 to 16 March 2021 will also be mentioned. All figures are related to the 2020 financial year.

Changes to the reporting platform since the preceding report

KONGSBERG acquired and integrated Rolls-Royce Commercial Marine and Kongsberg Aviation Maintenance Services (KAMS) (previously AIM Norway) in 2019. The subsidiary Hydroid, Inc. was disposed in the first quarter of 2020. These changes are reflected throughout the organisation, including in the reporting basis for sustainability. This means that the information for key figures etc. are not directly comparable with previous years. In addition, the effects of the COVID-19 pandemic led to a significant reduction in travel activity, which in turn has particularly affected the climate accounts.

Limitations of the report

The report deals only with companies in which KONGSBERG owns 50 per cent or more. The environmental data includes all of our Norwegian units, as well as all our manufacturing units all over the world and the largest offices outside of Norway.

The information in the report is based on data obtained from different parts of the Group. Although importance is attached to ensuring that the data is complete and correct, some of the information will be based on estimates.

Our process to define the content

We periodically carry out materiality assessments, most recently in autumn 2019. For more details of this, see “Sustainability and ESG strategy and priority”.

When carrying out the materiality assessment, we take into account what our key stakeholders are concerned about in our dialogue with them. This includes our owners, investors and lenders, our employees, customers, suppliers, and regulatory and local authorities in the areas in which we are active.

The content of the report is largely defined based on what we have called “Focus areas”, where each area of focus includes an overview of goals and activities. These are approved by the Corporate Executive Management and the Board.

In 2020, we have undertaken a comprehensive process to further develop our goals and KPIs for sustainability and the ESG area, which will be implemented and reported on from 2021.

Stakeholder dialogue

In 2020, we have had a dialogue with many of our stakeholders with an emphasis on different sustainability and ESG issues. We have also annual meeting with the Ministry of Trade, Industry and Fisheries with the main emphasis on sustainability and social responsibility. We engage in collaboration with other companies and NGOs, such as the NHO Forum for Sustainability, the Coalition for Responsible Business (KAN), which is a broad association of business, trade and civil society with an emphasis on human rights, as well as the UN Global Compact Norway. Together, this gives us useful information and insight into developments and expectations from the outside world for sustainability reporting.

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