S1 Own workforce

ESRS 2 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model

Sandvik aims to be the employer of choice within our industries and attract, retain, and develop diverse talents to drive our strategy. This is one of our six strategic objectives. Access to future employees with necessary education and skill sets related to our business is essential for Sandvik. Not having the right competence and engagement from our employees can affect our ability to deliver on our strategy and financial results.

Sandvik has identified positive impacts related to our own workforce. In the assessment we have considered local and global initiatives and the proactive work we do in the areas of equal opportunities and health and safety. In the scope for the double materiality assessment all employees were considered. Health and safety for our own employees is considered to be a risk. The risk within health and safety is related to the financial effect if we do not deliver on the expectations for our health and safety standards. Own workforce and access to human capital is also considered a risk for Sandvik, related to the retention and attraction of talented employees.

S1-1 Policies related to own workforce

Sandvik has several policies and governing documents in place to manage material impacts and risks within our own workforce. Our Code of Conduct is a vital component that guides our actions as individual employees and as a company in our daily work. It establishes the ethical standards we adhere to. Key policies include our People policy, which underscores our commitment to employees, outlining our approach to attracting, developing, and retaining staff. Our Environment, Health and Safety (EHS) policy establishes our systematic ways of working related to health and safety.

Sandvik Group Executive Management has the overall accountability for the implementation of our policies. More information on Sandvik policy governance is found under GOV-1.

Business area presidents, division presidents, and heads of Group functions ensure that each policy is communicated and implemented across their respective areas. They allocate necessary resources and take appropriate actions when breaches occur.

The foundation of our Code of Conduct is, together with our core values, built on the International Bill of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention against Corruption as outlined in the ten principles of the United Nations Global Compact, in which we participate. We are committed to adhering to the principles, to the OECD Guidelines for Multinational Enterprises, and the UN Guiding Principles on Business and Human Rights. We believe that by doing so we are providing a solid foundation that supports a more sustainable future for Sandvik and for our stakeholders.

S1-2 Processes for engaging with own workers and workers’ representatives about impacts

Process for engaging with own workers

Our engagement with employees involves continuous dialogue and action planning at multiple levels. Our employees participate in development conversations and team performance dialogues. Sandvik has a global process to engage with our workforce via a survey on the engagement insights platform, which offers all employees the opportunity to express their views regarding the workplace. The survey is performed monthly or quarterly, depending on role and entity. The platform collects insights on employee perceptions of workplace practices, which inform the development of strategies and actions centered around employee needs. The employee engagement results are reported in the Sandvik Group annual report, as well as internally in the quarterly business reviews, internal communication channels, and through the engagement insights platform to all employees.

Managers are responsible for their teams’ engagement and organize regular team dialogues to determine and track progress of action plans. Human Resources functions utilize insights to inform the development and continuous improvement of processes, people policies, strategies, targets and actions. Management teams in the business areas develop actions aligned with global initiatives set by the Group. At Group level, an annual full analysis of employee feedback is performed and used as input to the strategy. In line with our decentralized organization, the business areas are accountable for setting, following up on, and reporting their targets and actions based on their business areas employee insights and business context. Progress on results and action implementation is reviewed quarterly as part of the business review process.

In our analysis of employee feedback, Sandvik uses demographic attributes such as gender, age, job classification, managerial level, and job family, alongside qualitative feedback, to gain insights into the perspectives of potentially vulnerable or marginalized groups, including women and people with disabilities. These findings are included in the global report and addressed through the established processes.

Process for engaging with workers’ representatives

Sandvik has established processes for engaging with workers’ representatives. The processes are determined by legislation and agreements established at the Sandvik Group, European Union, and country levels. Interaction on all levels includes information and dialogue in areas such as business, operations, and sustainability performance.

Sandvik has Board Union representation in accordance with the Swedish Companies Act.

Sandvik has an agreement with the Sandvik European Works Council (EWC) according to the 2009/38 EWC Directive. The Head of Industrial Relations is responsible for the interaction and carries out monthly update meetings with the EWC Executive Committee. In addition to monthly meetings, Sandvik calls for formal consultation and information sessions regarding strategic topics or other areas of interest. The EWC has the right to ask for additional information sessions. All meetings are documented. Besides ongoing consultations and information sessions, the EWC meets with representatives from Executive Management every year for updates on strategic matters and to have a dialogue regarding topics of importance.

Union and works council consultation, information sessions and negotiations take place in accordance with local legislation throughout the entire organization. When appropriate and needed, meetings are documented and signed between the parties.

Sandvik believes that a sound and constructive dialogue with unions and works councils is important to safeguard compliance to local labor legislation. It also builds a relationship of trust where information can be shared openly, and Sandvik can obtain fact-based feedback from an employee/worker’s representative perspective. This information improves our decision-making in matters that may impact our employees.

Process for engaging with own workforce about health and safety

Health and safety are priorities within Sandvik and we have global processes for engaging with our employees and workers’ representatives about actual and potential impacts. Through our decentralized organization, employees are enabled and empowered to influence their workplace.

The Sandvik Environment, Health, and Safety (EHS) council, comprising representatives from all business areas, serves as a key forum to facilitate collaboration across the company, share best practices and advance our progress towards our vision of zero harm. While health and safety activities are decentralized within the business areas, the EHS council identifies, reaches consensus on, and implements common initiatives and procedures.

Our health and safety management system, certified according to ISO 45001 at our major locations, highlights the importance of workers’ participation and engagement. Across the organization, employee safety representatives are involved in occupational health and safety decisions and activities. Local health and safety committees are organized at various locations, including representatives from local management, employees and EHS professionals. In addition, each major location conducts an EHS culture survey every third year to assess their health and safety culture. The EHS culture survey collects insights from employees on how to improve the safety culture at each location.

Questions related to health and wellbeing are part of our surveys on the engagement insights platform to improve productivity and engagement and reduce absenteeism and work-related illness. The survey is measured monthly or quarterly depending on role and entity.

S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns

Employees and external parties who witness a violation of the Code of Conduct, laws, or our policies, can report the violation anonymously, through the global Speak Up whistleblowing tool. Each report is assigned to an investigator from the relevant business area, ensuring an independent and impartial investigation. The Ethics Office oversees the effectiveness of the Speak Up process. Reports, investigations and remediations are recorded, monitored, and included in reporting to the Audit Committee. Details of our Speak Up mechanism can be found under G1-1.

Employee grievance matters are handled locally within the legal entity where it is occurring and according to local processes and legislation. Practices differ between countries based upon local legislation and local processes.

In 2025, we implemented quarterly reporting of employee grievance cases. This applies to all legal entities globally. Sandvik has also developed an Employee grievance procedure, that is being implemented throughout the company during the year, in order to secure that all legal units are covered by mechanisms and processes to handle grievance cases.

As part of our health and safety management system, each employee is encouraged to identify, report, mitigate, and manage hazards within their workplace. All workers are trained to identify and control the risks arising from the tasks they are required to undertake. Audits, workplace inspections and safety walks are other important tools to continuously improve our workplaces and capture the employee perspective.

In the event of an incident, we conduct incident investigations and route cause analyses in collaboration with employees to understand what happened, learn from it and prevent recurrence. Best practices and lessons are shared across the organization.

Any perceived negative impact or weakness related to health and safety can also be raised and, where relevant, remediated through our global whistleblowing process, Speak Up. Where possible, this process supports the identification of concerns and enables a dialogue with those individuals reporting issues.

S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions

Our human resources and health and safety policies, along with Group objectives and targets, guide our actions for our own workforce. Each business area develops plans to meet the Group objectives, with annual targets set to drive performance at all organizational levels. Due to our decentralized way of working, locations, divisions, and sales areas can implement mitigation actions that are relevant for their context and the markets where they operate. For more information on remediation see S1-3.

S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

The development of group-wide targets and performance towards targets is a part of the strategy process and is further described under GOV-1. Stakeholder interests are taken into consideration in the strategic planning. Further details on how the interests of employees and employee representatives are taken into account can be found under SBM-2.

Percentage of female managers

Sandvik set a goal to have 21.2 female managers by the end of 2025 to ensure fair opportunity for equal treatment. The entity specific metric of share of female managers is used to follow up on target progress. In 2025, the percentage of female managers amounted to 20.8 (20.5).

Engagement rate

To ensure effective talent attraction and retention and prevent risk, Sandvik has set a goal to exceed an employee engagement rate of 7.7. Employee engagement is the result of a strong, trust-based relationship between the organization and its employees. It is shaped by how well the organization fosters a sense of belonging, supports health and wellbeing, and provides a meaningful and supportive work environment. The engagement rate is an index calculated as an average based on the responses of three questions in the employee survey. The entity-specific metric of engagement rate is used to monitor progress towards the set target. In 2025, the engagement rate amounted to 7.8 (7.7).

Health and safety

We utilize a wide range of leading and lagging indicators to assess health and safety performance across Sandvik locations. Notable metrics include the Lost Time Injury Frequency Rate (LTIFR) and Total Recordable Injury Frequency Rate (TRIFR), both of which have exhibited positive long-term trends.

Our target is to reduce TRIFR within our own operations to 2.7 by 2025. All our locations are included in the target, and it covers both employees and contractors.

In 2025, the TRIFR amounted to 2.3 (3.0). The performance is reviewed within site, division, and business area level on a monthly basis and at Group level on a quarterly basis. Engagement with our own workforce and workers’ representatives is an important part of identifying lessons learned, best practices and improvements achieved.

We track the effectiveness of our policies through several monitoring processes where each policy outlines how compliance is monitored. Monitoring for instance includes internal control, employee surveys, internal and external audits, and our Speak Up global whistleblowing tool.

S1-6 Characteristics of the undertaking’s employees

The corresponding financial reconciliation for Full-Time Equivalent (FTE) figures can be found in the G4 note.

S1-9 Diversity metrics

S1-14 Health and safety metrics

S1-16 Remuneration metrics (pay gap and total remuneration)

Sandvik continues to operate according to the principle of equal pay for equal work and aims to achieve equal pay for work of equal value. Pay gap is influenced by the geographic and functional composition of the workforce. Therefore, we continue to monitor each market on a granular level. To enhance our efforts, we have developed an internal pay equity dashboard to monitor pay equity across businesses, functions, and job levels.

We aim to extend the coverage to the remaining countries in the coming years. The pay equity dashboard allows us to gather insights on any potential issues and supports us in creating mitigating action plans. This tool creates greater transparency in how our markets implement our global reward principles – including, but not limited to, ensuring gender equity. By leveraging this tool, we aim to uphold our commitment to fair reward practices and foster an inclusive workplace where all employees are valued equally.

S1-17 Incidents, complaints and severe human rights impacts

Incidents and complaints can be raised by individual employees, groups of employees or as collective claims. Local unions/works councils can also raise incidents and complaints, and are natural partners in mitigation in countries where applicable.