19 There are many advantages to locally produced raw materials. Proximity to our producers makes it easier to counteract a lack of respect for people and the environment in our supply chain. A large part of the raw materials that Semper uses come from Swedish producers. Other raw materials used in Götene and Korsnäs may originally come from countries outside Europe, but are purchased from suppliers within Europe. This leads to closer contact with the suppliers, which makes it easier to discuss various issues. Hero group uses the Ecovadis tool to rate its suppliers on four sustainability criteria; environment, responsible business, work environment and human rights as well as sustainable sourcing. The ratings are used for an active discussion of the actions to be taken to improve the supplier's performance. In 2022, the tool was implemented and data collection started, and in 2023 the work will continue. New suppliers must confirm Hero group’s and thus Semper's code of conduct. It covers, among other things, issues of responsible business, human rights, working environment and employee well-being, sustainability and environmental work. The code of conduct has been updated in 2022 to emphasise the importance of our sustainability work. The code is intended to be passed on through the entire supply chain, from supplier to sub-suppliers. No deviations from the code of conduct have been detected among our suppliers in 2022. Semper's position on human rights is based on the UN Global Compact's (UNGC) principles for human rights and the International Labour Organisation's (ILO) conventions. During 2022, Semper has not had any case concerning violation of human rights. Children's rights Children have always been at the center of Semper's business, and their health and well-being is very close to our hearts. Therefore, it is extremely important to us that we contribute to the reduction of child labor in the world. In our code of conduct, the principles of the UN Global Compact against child labor are communicated. It also refers to the Convention on the Minimum Age for Admission to Work – ILO Convention 138 – and to the Convention on the Prohibition of and Immediate Measures to Eliminate the Worst Forms of Child Labor – ILO Convention 182. During 2022, we have not become aware of a single case of child labor in Semper's supply chain. Supplier audits A supplier visit is planned when a collaboration with a new supplier is initiated. Representatives from the supply and quality department carry out the visit in order to get a better picture of how the supplier performs in areas such as working conditions, working environment and environmental issues. Existing suppliers are also checked regularly. Partnerships for sustainable development The results from our life cycle analysis show that we need more and more active collaborations with our suppliers to reduce our climate impact. In 2022, we have drawn up guidelines for a sustainable supply of goods, based on science and best practices for various raw material categories. These guidelines enable our buyers to partly identify which suppliers are at the forefront in terms of strategic work that benefits people and the environment, partly show how they can lift existing suppliers to a higher level. We are particularly happy when we can create collaborations with suppliers that promote sustainable development on several levels. You can read about our exciting partnership with Lantmännen on the next page. Human Rights and Environment in the value chain An important factor for us at Semper is that everyone who contributes to the cultivation, handling and production of our food has acted in an ethical manner and actively contributed to sustainability.

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