Sandvik logo

ESRS 2 Basis for preparation

BP-1 General basis for preparation of the sustainability statement and BP-2 Disclosures in relation to specific circumstances

The sustainability statement within the administration report constitutes Sandvik statutory sustainability statement in accordance with the Annual Accounts Act (ÅRL). The report has been prepared in accordance with the European Sustainability Reporting Standards (ESRS) and includes the disclosures required by the EU Taxonomy Regulation.

This is the first year of reporting according to the Corporate Sustainability Reporting Directive (CSRD). As additional guidance on interpretation continues to develop practices on implementation of the European Sustainability Reporting Standards (ESRS) will become more established. We will continue to monitor these developments to apply and strengthen our sustainability statement. We have updated our sustainability reporting to align with the ESRS. This has resulted in some changes in how we measure certain metrics compared to previous years mainly under S1 Own workforce due to use of headcount. Information on how each metric is prepared can be found in the reporting principles of each disclosure requirement. The sustainability statement is prepared at a consolidated level for Sandvik Group, and the scope of reporting is consistent with the financial statement. See note P11 for a list of entities included in the figures unless otherwise specified. The figures presented are accumulated for the 2025 fiscal year for all legal entities, unless stated otherwise. Sandvik applies the following definitions for time horizons: short-term equals the reporting year, medium-term one to five years, and long-term more than five years.

The sustainability statement covers the material aspects identified in the double materiality assessment (DMA) for the areas of environment, social, and governance, and includes own operations, upstream, and downstream value chains.

An independent assurance provider has undertaken a limited assurance of the Sandvik Annual Report 2025.

We have not omitted any disclosures due to ongoing negotiations, nor have we omitted any information due to reasons of intellectual property.

Disclosure requirement Link

Metrics subject to measurement uncertainty

E1-6 scope 3,S1-16 pay gap

Phase in provisions

E1-9,E5-6,S1-7,S1-14

Value chain entity specific metrics forE3,E4,S2 downstream, andS3

Entity specific metrics

E1-6,S1-5,S1-16,S2-5

Incorporated by reference index

Disclosure requirement Section Paragraph Link

GOV-1 The role of the administrative, management, and supervisory bodies

Corporate governance

The Sandvik Way, Nomination Committee for 2026 AGM, 4. Board of directors – Composition and competence, Board of Directors, Independence, 5. Audit Committee

The Sandvik Way

3. Nomination Committee

4. Board of Directors

Board of Directors

5. Audit Committee

GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management, and supervisory bodies

Corporate governance

Corporate governance model, Board proceedings during 2025, 5. Audit Committee

Corporate governance model

4. Board of Directors

5. Audit Committee

GOV-5 Risk management and internal controls over sustainability reporting

Corporate governance

5. Audit Committee, Internal control over financial reporting

5. Audit Committee

Internal control

IRO-1 Description of the processes to identify and assess material impacts, risks, and opportunities

Risk management

Risk management

Risk management