Data index

Notes on data completeness

Financial Year 2022 is Arxada’s inaugural year of ESG reporting. Due to this, some data in the report is incomplete. We are committed to increasing the scope of our sustainability data collection and data assurance in future years.

General disclosures

Performance indicator	FY22	Framework
Organization name	Herens Midco S.a.r.l.	GRI 2-1
Ownership status	Private equity, owned by Bain and Cinven funds, holding company	GRI 2-1
Headquarters location	Basel, Switzerland	GRI 2-1
Countries of operation	See Our business & sustainability	GRI 2-1
Entities in sustainability reporting	Troy AG and Arxada AG	GRI 2-2
Differences between entity list in financial reporting and sustainability reporting	N/A Audited Financials on Herens Midco S.a.r.l. are non-public information	GRI 2-2
Reporting period (sustainability and financial reporting)	01.01.2022 – 31.12.2022	GRI 2-3
Report cycle	Annual	GRI 2-3
Report publication date	23.05.2023	GRI 2-3
Report contact point	General inquiries on sustainability report: sustainability@arxada.com Investor inquiries: investors@arxada.com	GRI 2-3
Restatement of information	N/A inaugural report	GRI 2-4
External assurance	External assurance was sought for the assessment of embedded KPIs in our Sustainability-Linked Financial Instruments, covering Scope 1 and Scope 2 (location-based and market-based) as well as total waste generated for our Sustainability Report for the reporting year 2022. See Our 2022 Assurance Letter from ERM-CVS and Our business & sustainability	GRI 2-5
Sector	Chemicals sector	GRI 2-6
Value chain and activities	See About Arxada	GRI 2-6
Governance structure and composition	See Our Executive Leadership Team and Sustainability governance	GRI 2-9
Nomination and selection of the highest governance body	See Sustainability governance	GRI 2-10
Chair of the highest governance body	Arxada does not have a formal Chairman of the Board	GRI 2-11
Role of the highest governance body in overseeing the management of impacts	See Sustainability governance	GRI 2-12
Remuneration policies	See Sustainability governance	GRI 2-19
Statement on sustainable development strategy	See Sustainability at Arxada and Our business & sustainability	GRI 2-22
Policy commitments	See Sustainability governance and Resources & downloads Arxada’s policies are approved by the relevant ELT members and boards of the relevant legal entities. The policies mentioned above are communicated through the Arxada internet, intranet, and periodic ethics & compliance training programs, such as its True Office training platform, and periodic Legal Department training programs.	GRI 2-23
Embedding policy commitments	See Sustainability governance and Attracting, enabling & engaging a diverse workforce	GRI 2-24
Processes to remediate negative impacts	See Our business & sustainability Several of the company’s manufacturing sites, including Visp, Newark, Mapleton, Willamsport, Conley and Suzhou, have labor unions, which have Collective Bargaining Agreements (CBAs) under relevant local laws containing grievance mechanisms. In the event the company receives claims or complaints from employees or third parties, the Legal Department thoroughly investigates them with the appropriate internal stakeholders and business/functional partners, supported by outside counsel where necessary, and works with internal stakeholders to determine appropriate actions. Processes involving the Legal Department are periodically reviewed and evaluated as needed, depending on a variety of factors.	GRI 2-25
Mechanisms for seeking advice and raising concerns	The HR and Legal Departments typically support grievance processes. Guidance regarding reporting concerns is included in several company policies (such as some mentioned above), during training programs and during everyday business counselling.	GRI 2-26
Approach to stakeholder engagement	See Our business & sustainability and Advocacy leadership for science-based decision-making for a sustainable future	GRI 2-29

Planet pillar disclosures

Performance indicator	FY21	FY22	Framework
Greenhouse gas emissions^{[1] [2]}
Scope 1*	658,222 tCO₂e	181,138 tCO₂e	GRI 305-1, 305-2, 305-5
Scope 2 location-based*	173,871 tCO₂e	155,514 tCO₂e
Scope 2 market-based*	168,216 tCO₂e	163,052 tCO₂e
Base year	2021
Consolidation approach	Operational control	Operational control
Standards, methodologies, assumptions, and/or calculation tools	GHG Emissions are defined as Scope 1 and 2 greenhouse gas emissions of the Group, determined in accordance with the Scope 1 and 2 guidance of the GHG Protocol Corporate Accounting and Reporting Standard.	GHG Emissions are defined as Scope 1 and 2 greenhouse gas emissions of the Group, determined in accordance with the Scope 1 and 2 guidance of the GHG Protocol Corporate Accounting and Reporting Standard.
Air quality management^[1]
NO_X	75.0 t	68.6 t	SASB RT-CH-120a.1
SO_X	3.8 t	3.8 t
VOCs	166.3 t	168.8 t
Energy management^[1]
Total energy consumed	5,616,650 GJ	5,043,030 GJ	SASB RT-CH-130a.1
% grid electricity	30%	32%
% renewable	5%	1%
Waste management
Third-party waste management	See Supplier Code of Conduct. Additionally, legislative compliance is administrated locally based on local legislation.	See Supplier Code of Conduct. Additionally, legislative compliance is administrated locally based on local legislation.	GRI 306-2, 306-3, 306-4, 306-5
Total waste generated*	70,717 t	53,881 t
Hazardous waste generated	57,670 t	41,203 t
Non-hazardous waste generated	13,047 t	12,678 t
Hazardous waste recycled	6,899 t	5,109 t
Non-hazardous waste recycled	2,522 t	2,585 t
Hazardous waste incinerated	34,671 t	31,583 t
Hazardous waste sent to landfill	3,034 t	1,240 t
Hazardous waste disposed (other options)	13,064 t	3,269 t
Non-hazardous waste incinerated	1,573 t	2,483 t
Non-hazardous waste sent to landfill	8,951 t	7,610 t
Location of disposal	100% of waste captured is directed to offsite disposal.	100% of waste captured is directed to offsite disposal.

[1]The scope of this report includes all manufacturing sites with FTE >10 (note, Auckland New Zealand and Trentham Australia manufacturing sites are included even though they have less than 10 FTEs) and Pilot Manufacturing sites with FTE >45. The scope excludes emissions and waste from offices, as emissions and waste from these locations are not material to Arxada’s overall emissions and waste.

[2]Our Scope 1 includes fuels (i.e. LPG, Fuel Oil, etc.) direct emission to air from our operations including CO₂, N₂O, CH₄. Arxada does not have emissions from PCF, HFCs and SF₆. Our Scope 2 emissions are market-based and composed of purchased electricity and steam.

*Metrics have been assured by ERM CVS. For more information, please see the “External Assurance Statement” which details the scope, activities and conclusion of their engagement.

Preservation pillar disclosures

Performance indicator	FY22	Framework
Safety & environmental stewardship for chemicals
% of products containing GHS category 1 and 2 health and environmental hazardous substances	77%	SASB RT-CH-410b.1, RT-CH-410b.2
% of products containing GHS category 1 and 2 health and environmental hazardous substances with a hazard assessment	100%	SASB RT-CH-410b.1, RT-CH-410b.2
Management of the legal & regulatory environment	See Advocacy leadership for science-based decision-making for a sustainable future	SASB RT-CH-530a.1
Child labor and forced or compulsory labour	See Supplier Code of Conduct	GRI 408-1, 409-1

People pillar disclosures^[1]

Performance indicator

FY22

Framework

Workforce health & safety

Total Recordable Incident Rate (TRIR)

1.21

SASB RT-CH-320a.1, RT-CH-320a.2

Total Recordable Fatality Rate (TRFR)

Lost Time Injury Frequency Rate (LTIFR)

0.41

Operational safety, emergency preparedness & response

Process Safety Incidents Count (PSIC)

SASB RT-CH-540a.1, RT-CH-540a.2

Process Safety Total Incident Rate (PSTIR)

.98

Number of transport incidents

Diversity & equal opportunity

Senior leadership gender diversity

Female	46	23%
Male	158	77%

GRI 405-1

Gender diversity

Female	934	25%
Male	2,866	75%
Not declared		0.15%

Non-discrimination

See our Code of Conduct

GRI 406-1

Employment

Total employees

3,600

GRI 401-1, 401-2, 401-3

New hire gender diversity

157 Hires in 2022

Female	23%
Male	53%
Not declared	24%

Turnover gender diversity

The total turnover rate for 2022 is 17.25%. We are unable to provide a turnover rate by gender for 2022.

Full-time employee benefits

For US FTEs:

Medical
Dental
Vision
Life Insurance
Disability Coverage
401k participation

Significant locations of operation

See Our business & sustainability

Parental leave entitlement female

variable by region and location

Parental leave entitlement male

variable by region and location

Parental leave female

1 (based on last 6 months of 2022 only)

Parental leave male

1 (based on last 6 months of 2022 only)

Community relations

See Community involvement

SASB RT-CH-210a.1

Training & education

See Attracting, enabling & engaging a diverse workforce and Health & safety

GRI 404-2

[1] People pillar data is only available for 2022. Please also note that the data provided is only for Arxada (legacy LSI), which represents 74% of the company. The total headcount for 2022 includes 100% of the workforce for 2022, including legacy Arxada, TROY and Envirotech.