SWEP Sustainability Report 2020

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SWEP Sustainability report 2020

Content

3 4 SWEP’s dedication to sustainability 5 The Dover Corporation 6 Sustainable performance in 2020 7 Local efforts, global impact/UN Sustainable Development Goals 8 Dealing with unprecedented events 10 Creating and maintaining a great workplace 12 Helping each other succeed in tough times 14 Our commitment to an ethical, sustainable supply chain 16 On our way … with more to come 17 Breaking down our carbon footprint 18 Less waste, higher productivity 19 Risk management and sustainability 20 Sustainable customer relations/Our commitment to integrity 21 Holding ourselves to high standards 22 Making sustainability possible 23 The value of being a good neighbor A note from our President

Turning disruption into progress

2020 will live long in our collective memory. It’s been a tough year of course, but at SWEP it’s also been a year of reflection and progress.

Throughout the world, people have had to devise new ways of working. This has given us at SWEP an opportunity to think about what it means to work sustainably, and to put in place ways of working that make a lasting positive impact on the planet. Protection is at the core of this. As this report shows, we’ve acted decisively to protect the wellbeing of our employees and our communities, while working sustainably to create products that leave a smaller carbon footprint and promote renewable energy. It’s progress, for both SWEP and the planet. Let’s keep going.

A note from our President

Our first priority is people’s safety

During my 19 years at SWEP, looking after the safety and wellbeing of our staff has always been a top priority. As the COVID-19 pandemic continues to cause chaos throughout the world, the importance of protecting people has become even clearer. At SWEP, we acted quickly and decisively to protect our staff and their families from the virus. We put together a multi-level task force that helped us disseminate best practices throughout the company. At the same time, this setup also let individual sites make the safety decisions most appropriate to their own circumstances, taking into account advice and regulations from their local governments. The result has been a comprehensive yet flexible response, involving social distancing, working from home, protective equipment, and hygiene initiatives wherever appropriate. The pandemic has had an impact on all of us, how we work and how we are able to live our lives. At SWEP, we have done all we can to stay safe, but also to help each other stay motivated, engaged and positive. While doing so, we've also endeavored to help our customers through this rough year. A key reason why we’ve adapted well to the challenges of 2020, I believe, is that we know that the work we do makes a positive impact on the world. We make products that improve resource efficiency and enable renewable energy. Even with the singularly tough business conditions in 2020, the demand for these qualities continued to grow. The drive towards fossil- free energy is accelerating, and that offers opportunities (in both legacy business and new markets) for us to contribute to a cleaner planet. Innovation and efficiency are at the heart of what we do, and we’ve continued to bring these values to the world in 2020. By constantly upgrading and fine-tuning our solutions, we provide our customers with increasing levels of efficiency. We’ve found inventive ways to reduce our own carbon footprint too. For example, we have adopted greener logistics and delivery options, and found innovative ways to save energy (our Landskrona plant’s involvement in the ectogrid™ project is a great example of this). It’s been a unique year with unique challenges, and I’m proud of the way we’ve adapted and persevered without compromising our sustainability principles. These principles are exemplified by our ongoing commitments to the UN Sustainable Development Goals, and to becoming a carbon neutral organization by 2030. Our dedication to sustainability is relentless, so let’s continue our excellent work together.

At SWEP, we have done all we can to stay safe, but also to help each other stay motivated, engaged and positive.

Ulrika Nordqvist, President SWEP

This is SWEP

SWEP’s dedication to sustainability

renewable energy sources has also progressed quickly throughout the world, creating business opportunities in line with our vision. The worldwide availability, best practices and trend insights that we provide can only come from a globally active and knowledgeable organization, but we also strive to stay close to our customer – on the ground wherever needed, with local expertise, language and practical support.

Even in the most challenging of circumstances, SWEP has retained its dedication to resource efficiency and sustainable heat-transfer solutions. It’s a dedication that’s been strengthened by decades of principled hard work and success. SWEP was established in 1983 when two Swedish entrepreneurs developed and industrialized the brazed plate heat exchanger (BPHE) technology. Today we are more than 1,000 people and have production plants in Sweden, Slovakia, Malaysia, China and USA, offices in 20 countries, and representation in 50 countries. We produce the widest range of brazed plate heat exchangers on the market, and work closely with our customers to deliver efficient solutions, even to complex issues like coal-to-clean-energy conversion and refrigerant change-out. Multiple sourcing and logistics gives us further competitive advantage – our worldwide production capacity secures BPHE supply that others cannot match. The transition towards

Sealix surface sealing was introduced to the market

Expansion of the Landskrona factory

®

2020

SWEP adds All-Stainless.

Switzerland factory merged into Sweden & Slovakia

Edgefield factory moved to Tulsa

2015

AHRI - SWEP 1st BPHE company with certified product line

2010

SWEP eBusiness site

KUALA LUMPUR MALAYSIA

SUZHOU CHINA

2005

2000

KOSICE SLOVAKIA

1995

TENTLINGEN SWITZERLAND

1990

EDGEFIELD USA

1985

LANDSKRONA SWEDEN

1983

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The Dover Corporation

Since 1994, SWEP has been part of the Dover Corporation, a diversified global manufacturer with more that 23,000 employees in over 20 independent companies.. All Dover companies are committed to creating economic value for shareholders and customers through sustainable practices that protect the long term well-being of the environment. From greenhouse gas and waste reductions, to increased energy efficiency, Dover is striving to meet the global environmental needs of today and tomorrow. In accordance with its sustainability policy, Dover are committed to: • Managing the potential physical, regulatory, operational and financial risks and opportunities to our businesses related to climate change. • Monitoring, reviewing and improving the energy and greenhouse gas efficiency of our products, services and operations. • Communicating and engaging with customers, shareholders and employees regarding our energy and greenhouse gas performance.

Our purpose: We believe in creating more from less. That our future rests on giving more energy than we take – from our planet and our people. So we are here to lead the conversion to sustainable energy usage in heat transfer, constantly creating more from less energy, material and space.

Our vision: To significantly lower energy usage in heat transfer solutions.

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Sustainable performance in 2020

During an extraordinary year, SWEP has continued to fight for sustainability on multiple fronts. Here are some the achievements we’re most proud of.

Scrap reduction

Comprehensive response to COVID-19

We've signifcantly reduced scrap, including a 24% reduction in our Kosice plant.

Our multi-level task force mobilized quickly to protect our staff and their families.

Cutting emissions from freight

Our carbon footprint reduced

The downward trend in our carbon footprint continued – we cut CO e emissions by 2 12% in absolute terms.

In 2020 we exceeded our target, and reduced our freight emissions per unit of production by 17%.

Fighting corruption

Promoting gender equality

We’ve rolled out mandatory training and compliance agreements for third party agents and distributors to ensure ethical behavior.

New auditing procedures, recruitment initiatives and diversity workshops as part of our drive for gender equality.

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Local efforts, global impact

3 Good health and well-being

Ensure healthy lives and promote well-being for all at all ages SWEP’s contribution : Our comprehensive health and safety policies (page 8-9)

The sustainability challenges that SWEP tackles are not exclusively ours: they’re global problems that need global collaboration to address them. To make sure that we’re contributing effectively to the worldwide effort, we align our efforts with the UN Sustainable Developments Goals (SDGs). The 17 SDGs are part of the 2030 Agenda of Sustainable Development, which has been adopted by all UN member states. An urgent call for global action, the goals address issues critical for peace and prosperity, now and in the future – from ending poverty and other deprivations, to improving health and education, reducing inequality, tackling climate change and working to preserve our oceans and forests. By coordinating our priorities, goals and target with the SDGs, we focus our purpose. By using them as a framework, we better identify where we can make the biggest positive impact through meaningful actions that contribute to a better world. We have identified seven SDGs where we believe we can make a genuine contribution to their targets.

4 Quality education

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all SWEP’s contribution: Supporting our employees’ professional development and providing learning opportunities for students (page 12-13)

5 Gender equality

Achieve gender equality and empower all women and girls SWEP’s contribution: Continuously evaluating the gender balance in our organization, and actively promoting equality via recruitment and training initiatives (page 10-11)

7 Affordable and clean energy

Ensure access to affordable, reliable, sustainable and modern energy for all SWEP’s contribution: Our brazed plate heat exchangers reduce electricity consumption and fossil fuel usage globally (page 22)

10 Reduced inequalities

12 Responsible consumption and production Ensure sustainable consumption and production patterns SWEP’s contribution: Reducing scrap and emissions in our production sites (page 18) Reduce inequality within and among countries SWEP’s contribution: Offering starting wages above national minimum wage and creating employment opportunities without discrimination (pages 10-13)

13 Climate action

Take urgent action to combat climate change and its impacts SWEP’s contribution: Our CO journey. We intend to become a 2 carbon neutral organization no later than 2030 (pages 16-17)

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SWEP SUSTAINABILITY REPORT 2020

Dealing with unprecedented events Health, safety and well-being

In Malaysia, for example, compulsory temperature screening and health checks are conducted daily for employees and visitors. At our Slovakia plant, two week-long programs of workshops promoted mental health awareness and helped employees to maintain their physical and emotional energy levels. In Tulsa, warehouse space was converting into meeting and break areas to ensure social distancing, while in China daily safety status reports were gathered to gauge the effectiveness of COVID-19 protocols.

Health and safety at SWEP has – like so many other parts of our lives – been dominated by the outbreak and spread of COVID-19. It’s been a year when, perhaps more than ever, protecting the wellbeing of our colleagues has been fundamental. In March, very early in the pandemic, DOVER and SWEP established a multi-tier system for mitigating the impact of the crisis. Response teams were put together at corporate, executive and local levels, to devise and implement the processes and procedures needed to keep everyone safe. This structure allowed for effective communication between the boardroom, the shop-floor and everything in-between. Information sharing was continuous, covering instructions, training, monitoring and reporting, which ensured a high level of awareness throughout the organization. One of the key benefits of this approach has been that we have been able to provide guidance on many crucial issues – from country-specific legal requirements to remote work policies, employment considerations and childcare – while also seeing a

clear picture of how the pandemic and our response have impacted on our employees throughout the world. We’re proud of the way that all our sites have responded to the crisis, and how they have supported the physical and mental health of our employees. All sites have implemented thorough, country- specific plans and in many cases taken additional steps to protect their workforce and their communities.

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Accidents and incidents 2020 has been a singularly challenging year, especially for the EMEA region (Europe, Middle East and Asia), where a new ERP system was implemented and very high demand put extra pressure on operations. These factors, and the challenges of adapting to the ‘new normal’ of life during a pandemic, affected KPIs. SWEP had no fatal accidents in 2020, but recorded more injuries and sick leave due to injuries than in the previous year. The total recorded incident rate rose from 0.84 to 1.2. Despite the unique circumstances, we have seen some outstanding safety performances this year. The SWEP Malaysia plant recorded zero accidents during 2020, and the SWEP China plant received government recognition for their safety observation system.

% Workplace accidents: zero is always the goal

Improving health and safety Retraining courses in China, Sweden and Slovakia addressed a number of areas, including the effective use of Personal Protective Equipment – especially relevant in 2020. SWEP China also held a knowledge sharing event for 25 other companies, to promote worker safety across the industry.

Improving health and safety

Encouraging wellbeing All SWEP sites have local wellness teams that devise and support different initiatives for physical and mental wellbeing. Some examples include a walking contest in our Swedish Landskrona site (we effectively walked from Landskrona to Milan in Italy!) and our Christmas calendar, which encouraged employees to take part in daily physical activities throughout December.

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Engaging employees

Creating and maintaining a great workplace

SWEP is a company that aims to offer employees nothing less than the best place to work. It’s a lofty goal, but a worthwhile one. By listening to our staff, keeping them informed, supporting personal development, and promoting a respectful culture, we retain and develop our most valuable asset: a talented, motivated workforce.

Engagement and communication

Culture, ambition and goals From a communications perspective, 2020 has been uniquely demanding. Two-way communication is an essential part of engaging with fellow employees, so we have taken advantage of virtual tools like GoToWebinar and Microsoft Teams to keep the dialogue flowing. The SWEP Executive Management Team have held bi-monthly Global Town Hall meetings, that have kept all staff aware of the company’s current status and encouraged a two-way communication. New initiatives include the introduction of round-table discussions with teams around the world. These have taken place remotely of course, and have been chaired by our CEO and VP HR. At our Landskrona site, a weekly Pulse Survey has been established. This has encouraged employees to offer constructive, honest feedback as well as measuring their wellbeing, motivation and job satisfaction. Our culture plays a vital part in making SWEP a great place to work. In 2020, we strengthened the communication and visualization around our Basic Beliefs program. Basic Beliefs is about articulating the values and ambitions that we share at SWEP, and encouraging ourselves to act accordingly while we work. To make the program understandable and relatable, we have made promotional materials that have been distributed worldwide. The first step saw all

Gender equality Creating engagement and motivation

Basic beliefs

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SWEP employees receiving a personal card from our CEO Ulrika, explaining the Basic Beliefs concept and its importance. Implementation is a never-ending process, so promotions and events will continue throughout the SWEP world. At all levels of the company, we are proud of the SWEP culture. To make sure that it continues and stays near the top of our agendas, all key stakeholders, including the Executive Management Team, have culture initiatives as part of their goalsetting.

Company culture

Social media outreach

To inform and remind our current and future employees about the culture at SWEP, we use various social media channels, both internally and externally. Our internal communication takes place mainly through Instagram and our intranet portal, IntraSWEP. LinkedIn is our primary social media channel for communicating with potential future employees.

Social media outreach

Diversity, inclusion, and gender equality

At SWEP, we recognize that a diverse workforce – in terms of age, gender, and background – gives us broad perspectives that support innovation and business success. With that in mind, 2020 has seen us continue our diversity and inclusion initiatives. These include actively pursuing a diverse pool of candidates during recruitment, and increasing the percentage of female managers at all levels. For these initiatives to be meaningful, it’s important to have an accurate picture of any demographic discrepancies in managerial and non-managerial cohorts. To do this, we have produced reports on gender in our workforce, via analytics in our human resource information system. These reports have helped to shape our initiatives, and inform the diversity workshops that have been held throughout the year.

Gender equality

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Helping each other succeed in tough times Development of our employees

We wholeheartedly believe that work should be an opportunity for personal and professional growth. Despite the ordeals that the world has suffered in 2020, we have continued to support each other in pushing towards our goals. It’s important that personal development is handled in a systematic way, to make sure that it isn’t neglected in the face of business demands. Through personal development plans, talent programs, and site-specific enterprises, SWEP continues to support employees at all levels. At SWEP we have a formalized, well-developed annual process, with clear expectations on managers to both lead their direct reports and support their development. Personal development plans play a key part in this. Despite the challenges of COVID-19, we have continued to support our employees and the completion rate for these plans was above 95%. Personal development plans With the travel restrictions put in place throughout 2020, much of our leadership training has migrated online. The SWEP Leadership Program kicked off via Microsoft Teams, and the content for the Global Business Program was adapted to make it suitable for distance learning. Thanks to innovative use of digital technology, we have also been able to hold virtual tours of all SWEP sites. Leadership programs

Talent programs

Lifelong learning from reading

Leadership programs

Personal development plan

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Asia Pacific talent program

The first regional talent program for the Asia Pacific region was established in 2020. A diverse group of 13 employees, nominated by their managers, have begun a program that will see them working on Asia- specific business topics, and devise an in-depth personal development pathway.

Lifelong learning from reading

SWEP China plant has initiated an imaginative program to encourage lifelong learning through books. Activities have involved providing a reading environment on-site, setting up reading clubs and a book-sharing scheme, and inviting the city library to the industrial zone bi-weekly.

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Our commitment to an ethical, sustainable supply chain

• ISO 9001 and ISO 14001 certifications These are quality (ISO 9001) and

At all of our sites, we have the power to make sound environmental decisions, to treat our employees fairly, and to ensure that we make a lasting positive impact on the local community. Our products then go out into the world, where they support projects that save energy, reuse heat, and reduce emissions. At SWEP we’re proud of what we do and of the impact that our products make on the world, but it’s important too that we don’t close our eyes to what happens to materials and machinery before they reach our plants. With that in mind, we do all we can to ensure that the commodities we use are extracted, manufactured and delivered in a manner that matches our own priorities. They must be produced safely, ethically, and without excessive environmental impact. To do this, we choose a small number of suppliers with whom we develop a close relationship. This makes it possible to communicate our sustainability requirements and to make sure that they are fulfilled. More specifically, we demand regulatory compliance and insist that our suppliers meet the following prerequisites:

environmental (ISO 14001) management standards. Certification demonstrates that suppliers are implementing ongoing improvements in their product quality, and in the environmental impact of their production. We demand that our suppliers can prove where that their raw materials have been obtained legally and sustainability. By doing this we ensure that our entire supply chain is ethically sound and that our products live up to the high quality standards requested by our customers. We work alongside suppliers to ensure that the raw materials and parts they deliver meet our high standards. This guarantees that the products we deliver to our customers are resilient and will provide efficiency benefits throughout their lifetimes. It also helps to reduce unnecessary waste. REACH/RoHS prohibits the use of certain substances. By following these EU directives and regulations, not only SWEP but also our suppliers demonstrate that chemical substances are handled safely and with consideration of the impact on human health and the environment. • Material standards, design requirements, process control and quality management • Compliance with REACH and ROHS • Full material traceability

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• MSDS for chemicals

Delivering sustainability 2020 saw SWEP make a significant step towards reducing logistics-related emissions. We entered into a partnership with DSV Panalpina, which opens up new possibilities for the use of renewable fuels and a major reduction in carbon emissions. Scoping studies are underway in Sweden, where we intend to reduce emissions associated with freight by an initial 50%. Our longer-term ambitions are to cut emissions even further to achieve our carbon neutral goal in 2030.

In addition to EU regulations and directives, we insist that our suppliers use Material Safety Data Sheets when working with hazardous chemicals

• Compliance with Dodd-Frank Act, Conflict Minerals For suppliers who work with conflict minerals (such as tin, tungsten, tantalum, gold and their ores and derivatives), we demand that due diligence is undertaken to ensure that such materials are sourced ethically and sustainably, in compliance with the US Dodd- Frank Act, Section 1502

• Compliance with safety regulations (e.g. CE marking in Europe)

All manufactured products we receive must be marked with the European CE marking or equivalent. This ensures that any parts that we use are safe and environmentally friendly.

• PED and ASME certification

These are important safety standards for the use of pressure equipment. By insisting that our suppliers have this certification, where applicable, we protect workers in our supply chain from unnecessary safety risks.

Delivering sustainability

• The Dover Corporation Supplier Code of Conduct In addition to the demands that SWEP make of our suppliers, we also insist on compliance with the code of conduct of our parent

company, Dover. This covers areas such as complying with local and international laws, maintaining a fair and safe workplace, and committing to conserve natural resources and reduce waste.

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On our way … with more to come Carbon management journey

At SWEP, reducing our carbon emissions has been a priority many years, and we’re proud of our progress. Our total CO e (carbon dioxide equivalent) emissions have 2 continued to fall, this year by 12%. More significantly – especially in a year as unique as 2020 – we’ve also reduced the emissions per kilogram of heat exchanger that we manufacture. This demonstrates not only that we can cut total emissions across our global operation, but also that we are capable of carrying out our core activities in an increasingly efficient and sustainable way. Furthermore, the reduction in emissions over the past 12 months are part of an ongoing trend – we’ve reduced the carbon emissions per unit of production by more than a quarter over the past four years. We took a major step forward in our carbon journey in 2017, when we pledged to become a carbon neutral organization by 2030. As part of this quest we commissioned Carbon Footprint Ltd to develop a calculation methodology that could give us a complete picture of the volume and sources of emissions from our business activities. This input has given us the opportunity to make decisive changes, some of which are outlined opposite. Our goal – becoming a carbon neutral organization by 2030 – hasn’t changed, and 2020 has seen us take a further step towards achieving it. Our goal is, of course, to reach carbon neutrality by 2030. It is an ambitious target, and we are delighted that we are making progress!

Reduced emissions relating to freight

Reduction in business travel

Waste heat recovery

Year Total tCO e 2 % of CO e 2

2018 26,514.33

2019 23,526.55

2020 20,741.32

2016* 26,286.96

+1% 2.13

-11% 1.84

-12% 1.70

2.34

kgCO e per kg of heat 2 exchanger produced % CO per kg 2

-9%

-14%

-8%

Energy efficiency

* Measurements started in 2018 with 2016 as baseline. Thus no data for 2017.

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Breaking down our carbon footprint

Reducing emissions from freight

Waste heat recovery

Reduction in business travel 2020 saw us make excellent progress in reducing freight emissions. We set ourselves targets based on CO e emissions for every kilogram of heat exchanger 2 produced. This metric gives us a clearer picture of the impact of shipping and freight, because it’s not contingent on fluctuations in production. We far exceeded our target of a 10% reduction in freight emissions – we managed to cut them by 17% this year (kgCO e/kg). This was driven by substantial reductions 2 in express (43%) and air freight (23%) emissions. We’ve converted to road and sea freight where feasible, and we’ll continue to work closely with our forwarders to find solutions that reduce emissions even further. With the spread of COVID-19, it’s been a unique year for business travel. Unsurprisingly, our travel emissions per employee dropped massively (88%) in 2020. This wasn’t, however, entirely due to the pandemic – we recorded significant emissions reductions in January and February before travel restrictions took hold, and the decrease in business travel has not been the main driver of our improved carbon footprint. We’ve developed effective remote working methods over the last 12 months, and we expect that many of these will stay in place even after the pandemic has receded, and will help us to reduce business travel and associated emissions in the long-term.

Energy efficiency The process which consumes most electricity in SWEP’s manufacturing sites is the heating of our brazing furnaces. Our Landskrona plant, in collaboration with the energy company E.ON, have been investigating ways of capturing the heat energy released during this process, and using it for heating nearby industrial buildings. This will reduce the energy that’s used to heat premises in our neighborhood, and will also lower the energy needs of our cooling towers. The pilot phase of the project, called ectogrid™, is due to be completed in spring 2021. Energy efficiency remains a top priority, and 2020 has seen innovative measures put in place at our sites across the world. Braze batch optimization – that is, altering the number of plates brazed in a cycle – has been a key area of focus this year, and has the potential to further reduce emissions per kilogram of output. There has been significant overhauls of lighting and equipment in our plants in the United States, Malaysia and Sweden, which will bring efficiency improvements and reduced energy use. Our premises in Tulsa, USA and Hildesheim, Germany are both now powered entirely by renewable energy.

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Less waste, higher productivity Effective process improvements

For the second consecutive year, SWEP Kosice have implemented process improvements that have led to an outstanding reduction in their scrap rate. A program of measures – including training, employee retention, maintenance routines, expanded production audits, standardized procedures, and improvements in the work environment – has resulted in both productivity improvements and a 24% scrap rate reduction. Remarkably, they have cut their scrap rate by almost 43% over the last two years. And our colleagues in Slovakia are not resting on their achievements. A new in-process measurement system has recently been installed, which will allow for data analysis in real time. With access to more precise data and trends, the engineering and quality teams should be able to improve processes and tools further, and deliver long-term benefits in both productivity and material utilization. Getting it right first time Every SWEP plant has improved their first pass yield – that is, the proportion of heat exchanger plates that are manufactured without the need for rebrazing – over the last twelve months. This improvement has boosted productivity and reduced lead times, and also contributing to better resource efficiency and lower energy use. The most impressive improvement was achieved at our Kuala Lumpur plant. There, first pass yield increased by 40%, which the site managers have attributed to better communication with production teams and a series of technical process improvements.

Higher productivity

Getting it right first time

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Risk management and sustainability Risks and risk management

Risk management at SWEP is about a thorough awareness of and preparedness for future threats and opportunities. Sustainability presents us with a set of profound challenges, and so it is appropriate for us to assess and manage the associated risks with the same thoroughness.

The table below is an extract from our risk management framework, outlining the mitigation efforts SWEP makes in relation to sustainability.

Sustainability related risks and risk management

Description of risk mitigation

Major

Environment Climate change

To mitigate the impact on nature, SWEP actively works on reducing process scrap. Scrap from the manufacturing process is sorted and recycled as far as possible.

SWEP also controls its supplier base very carefully in order not to purchase materials that contain any conflict minerals.

All SWEP locations have developed disaster recovery plans. CO emissions and carbon footprint 2 SWEP has agreed and implemented KPIs to support its carbon management journey and the target is to become a carbon neutral organization by 2030. We have identified electricity consumption, freight activity and business flight as the key areas for emissions reduction.

Our progress towards this target is independently verified by Carbon Footprint Ltd.

Corporate Social Responsibility Working environmental risks

Each SWEP location has an EHS- responsible person and works according to the local country’s work environment legislation. Audits are made on a regular basis to ensure that no risks are present. All incidents and accidents are recorded, and corrective actions are implemented. Best practice/ lessons learned are shared between the different manufacturing locations. SWEP and Dover continuously strive to provide the best possible working environment for or employees, and ultimately aim to operate with zero accidents. SWEP has a Non-discrimination and Equal Opportunity Policy. The purpose of this policy is to communicate the commitment of the President and the Management team to the promotion of equality of opportunity in SWEP. It ensures that SWEP complies with the equality obligations under the various anti-discrimination legislations in different countries.

Discrimination and equal opportunities

The principle of equal opportunity and non-discrimination serves as the framework for all human resources management in SWEP.

Decisions about recruitment, selection, promotion, training or any other benefit is made objectively and without unlawful discrimination.

Respect for human rights Risk of human rights violations within our organization and supply network Corruption and bribery Corrupt payments and other unethical behaviors within our organization and supply network

To mitigate the risks of Human rights violation SWEP has developed its Basic Beliefs. During SWEP Management Team meetings, the SWEP Basic Beliefs are regularly discussed and evaluated, all regions/locations are represented in the top management team.

All major direct material suppliers are audited on regular basis.

Our Company will not tolerate bribery of any form with any third party, public or private, whether done directly by our employees or indirectly through third parties, even if by upholding this ethical standard we lose business or encounter difficulties (for example, delays in obtaining permits or licenses) as a result. All employees are regularly trained, and the information is available on SWEP Intranet site. The trainings, through on-line courses distributed by Dover, are mandatory to all employees and participation is monitored on a regular basis. A mandatory third-party training course was introduced in 2020. All major direct material suppliers sign the Dover Code of Business Conduct and Ethics, and all our third-party agents have to sign a Foreign Corrupt Practices Act compliance agreement. These commit them to ethical operations, and compliance with laws concerning commercial bribery, money laundering, import and export restrictions, customs, duties, and taxes.

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Sustainable customer relations Business integrity

By understanding how our customers use our products, we better understand the impact that they make on the world. That’s why we are continually in collaborative partnerships with our customers, to discover untapped potential and make a positive difference. We’ve picked out five ways in which we stay close to our customers

1. Global presence and local accessibility We offer best-practices, trend insights, and outstanding products and services that can only come from a globally active and knowledgeable organization. But at the same time, we stay close to our customers, with local expertise and practical support on the ground. 2. Application know-how via collaborative partnerships We strive to be the best long-term business partner through collaboration, shared expertise and integrated development. 3. Innovation focused on creating value We take what we know and then dare to try new ways, focusing on creating value for our customers’ business and our world. For both SWEP and our parent company Dover, remaining faithful to our principles is just as important as corporate value and profit. Central to these principles are the high standards of integrity that we show towards our customers, towards our local communities, and towards each other. To ensure that we meet those standards, we follow two key policy frameworks – Dover’s Code of Business Conduct & Ethics Policy and Dover’s Global Anti- Corruption Policy. When third parties act on our behalf,

4. High standards in products and services When doing business with SWEP, our customers know they can always expect high quality products and services, verified by third-party approvals, certifications and standards. We always strive to exceed expectations while acting with honesty and integrity. 5. Wide and comprehensive product range SWEP’s customers appreciate the modular approach that lets them find the perfect fit for their installation. With our extensive application know-how and our finger-on-the-pulse knowledge of industry developments, we continually add products to our range that fit seamlessly into our core markets.

Our commitment to integrity

they go through a training program and are required to sign a Foreign Corrupt Practices Act compliance agreement. This demands that they operate ethically, and comply with all laws concerning commercial bribery, money laundering, import and export restrictions, customs, duties and taxes. SWEP does not tolerate any kind of discrimination, whether it is based on ethnic origin, nationality, religion, political views, gender, sexual orientation or age. We foster a culture of equal opportunity and diversity.

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Holding ourselves to high standards International accreditation

Environmental management system (ISO 14001)

SWEP are committed to sustainable manufacturing that respects the environment and people's health. Our objective is to create products that make a positive impact on the planet, while minimizing our consumption of natural resources, energy and toxic substances. We innovate and develop products to constantly increase efficiency and challenge ourselves as well as our customers in the strive to exceed the current standards. Neither do we market ourselves or search opportunities within non-sustainable end-markets, we even walk away from leads that do not align with our principles. International accreditation programs have a role to play in this objective. They provide us with guidelines for products and processes which help us to operate more sustainably. Perhaps more importantly, they ensure that we operate with transparency and give our customers and partners confidence that we work in a safe, responsible manner. By participating in international accreditation schemes we are also support the harmonization of standards and processes. This can make it easier for developing countries to access global markets and alleviate poverty in a sustainable way.

This international standard with accredited certification demonstrates a committed stance on environmental management to stakeholders. By correctly implementing an environmental management system, companies ensure environmental compliance, improve environmental performance and provide a systematic and strategic approach to environmental issues. REACH This regulation ensures high level of protection of human health and the environment, with respect to the use of hazardous chemicals. RoHS The Restriction of Hazardous Substances Directive 2002/95/EC restricts the use of six hazardous materials in the manufacture of various types of electronic and electrical equipment. Conflict minerals commitment Conflict resources are natural resources extracted in a conflict zone, sold to finance militias and war. There is both statistical and anecdotal evidence that when belligerents have access to precious commodities conflict can be prolonged. The most prominent contemporary example has been in central and eastern Africa, where various armies, rebel groups and outside actors have profited from mining while contributing to violence and exploitation in the region. SWEP is highly committed to complying with international efforts to reduce trade in conflict resources through auditing its supply chains and report use of conflict minerals.

Here are some of the most important accreditation schemes that we take part in.

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Where we make impact

Making sustainability possible

It’s a thrill to see our technology out in the world, especially when it’s used in innovative projects that help to build a sustainable future. Here are two examples of how our heat exchangers make renewable energy feasible.

NOx and particulate matter than diesel alternatives. SWEP supplied a range of heat exchangers to the project in Lodi, Lombardy. As a cheaper alternative to plate-fin exchangers, they made the plant economically feasible – it’s doubtful whether a plant of this scale would have been affordable without the technology that we delivered. Our heat exchangers are used to cool gas to -160°C for liquefaction. Construction is underway on a 70,000 m³ pit thermal energy storage (PTES) solution in Høje Taastrup, Copenhagen, and SWEP have provided brazed heat exchangers at the heart of the site. The plant will be essentially a thermal battery, drawing in heat from the transmission grid, then discharging it throughout the district heating network whenever there is a demand for it. Once the full project is up and running, it will serve half a million district heating customers – saving up to 15,000 tonnes of CO e 2 annually. Enabling thermal energy storage in Denmark

Powering the biogas revolution in Italy

The use of renewable fuel in vehicles is an important part of Europe’s decarbonization pathway, and we’re delighted to have contributed to Italy’s first liquefied biomethane plant, which began operating in November 2020. The plant uses domestic and agricultural waste to create biogas, which is then purified to produce liquefied biomethane. Biomethane has the same properties as liquid natural gas (LNG), so it can be used in existing gas infrastructure. More and more trucks are converting from diesel to LNG, so the plant will be especially important for increasing the use of renewables in the transport sector. Biomethane delivers multiple environmental benefits. As well as drastically reducing CO emissions, it releases far less 2

The plant was designed and built by Criotec Impianti Spa.

The 70,000 m³ thermal storage arranged in a pit.

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The value of being a good neighbor CSR

At all our sites across the world, we do our best to be an active, positive part of the local community. Of course, with the global events of 2020, we were rarely able to get out into the community in person. Nevertheless, with imagination and technology we’ve been able to find productive ways of supporting the people around us.

visors for use in intensive care, and we also donated over 1000 sheets of plastic film to the Helsingborg infection clinic. SWEP Tulsa held a fundraising event in February 2020 for Junior Achievement, a non-profit organization that helps young people by delivering interactive courses that prepare them for life after school.

In Sweden, we helped to provide protective equipment in the fight against COVID-19. Our 3D-printers made

SWEPs 3D printer in action.

Image:3dverkstan.se

SWEP Tulsa fundraising event.

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Challenge efficiency At SWEP, we believe our future rests on giving more energy than we take – from our planet and our people. That’s why we pour our energy into leading the conversion to sustainable energy usage in heat transfer. Over three decades, the SWEP brand has become synonymouswith challenging efficiency. SWEP is a world-leading supplier of brazed plate heat exchangers for HVAC and industrial applications. With over 1,000 dedicated employees, carefully selected business partners, global presence with production, sales and heartfelt service, we bring a level of expertise and customer intimacy that’s redefining competitive edge for a more sustainable future. SWEP is part of Dover Corporation, a multi-billion-dollar, diversified manufacturer of a wide range of proprietary products and components for industrial and commercial use.

Printed on 100% recycled paper. SWEP is an ISO14001 certified company.

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