Our supply chain spans across multiple countries and regions, including areas classified as high-risk. To ensure compliance and minimize negative impact, Hydroscand uses a structured and digitalized approach to supplier evaluation and engagement. We track progress using sustainability KPIs and collaborate closely with key suppliers.

Key elements of our responsible sourcing model include:

• Supplier segmentation (A–C categories) based on spend and strategic relevance
• Self-assessments and on-site CSR audits
• Digital supplier management via Kodiak Hub, including ESG performance tracking
• Mandatory training for purchasers on sustainability and business ethics
• Conflict mineral compliance, REACH and RoHS alignment

This approach allows us to integrate sustainability into every step of procurement—from selection to performance review.

Reducing our climate footprint means focusing where the impact is highest. In 2025, Scope 3 emissions represented 92% of Hydroscand’s total emissions, with purchased goods and services remaining the largest category. That is why supplier collaboration is at the core of our climate strategy.

We work with suppliers to increase transparency, improve material-related data, and strengthen value chain collaboration. During 2025, we continued to improve the quality of our climate calculations by increasing the share of activity-based data and refining emissions data across our operations and supply chain. 

By the end of 2025, Hydroscand had submitted its science-based targets, using 2024 as the baseline year. As most of our climate impact is linked to Scope 3, supplier engagement remains essential to reducing upstream emissions and supporting long-term progress. 

We believe that what gets measured gets managed. In 2025, we reached:

• 100% CSR assessment completion among A-suppliers
• 85% of A-suppliers signed the Supplier Code of Conduct
• 81–100% training completion among local and central purchasers

While these are strong results, we are committed to continuous improvement — especially in strengthening engagement across all supplier categories, increasing sustainability competence in purchasing teams, and deepening ESG integration throughout the supply chain.