10 october 2022

To our stakeholders:

I am pleased to confirm that Kruitbosch reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In our first annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Chris Kruitbosch
CEO

Our goal is to influence that our employees and our business partners respect the Universal Declaration of Human Rights and environmental protection.

All employees can report and discuss incidents of discrimination and harassment either at the internal counselor within Kruitbosch or since this year anonymously via an external counselor.
We have started engaging direct suppliers on our sustainability commitment and will set up a Supplier Code of Conduct.

Kruitbosch has not been subject to any investigation, legal cases or incidents involving Human Rights violations during the reporting period. No other issues have been identified.

Kruitbosch is committed to create a working environment that promotes diversity, inclusion, lifelong learning, and equal opportunity. We support the physical and mental wellbeing of our employees and ensure safe working conditions. Our Code of Conduct sets the standards for mutual respect and anti-discrimination.
Our company handbook covers policies concerning our employee rights and compensation and responsibilities. We will continue to refine our employee handbook as needed and incorporate the Global Compact.

Kruitbosch has implemented the following measures:
- Kruitbosch has an active works council that represents the interests of the employees and the company. Through transparent communication and a collaborative approach, the council contributes to a pleasant working environment with good working conditions. The council participates in company decisions that affect the employees, e.g. working conditions, terms of employment, working hours and equal treatment of staff.
- All employees can report and discuss incidents of discrimination and harassment either at the internal counselor within Kruitbosch or since this year anonymously via an external counselor.
- Kruitbosch has implemented flex working, allowing its employees to balance private live with working time more efficiently. This includes the freedom to work from home.
- Kruitbosch pays the full pension contribution of employees.
- Kruitbosch offers vitality check ups regularly to stimulate the physical and mental well-being of employees.

Kruitbosch has been awarded with “World-class workplace” for the second time, an independent label that is awarded to organizations who are scored above the benchmark for engagement and employership based on employee engagement surveys.
Kruitbosch measures employee engagement yearly and had a employer Net Promoter Score (e-NPS) of 45.2 in 2022, well above the benchmark of 6.

While enabling our customers to reduce their footprint by using the bicycle as a sustainable mode of transport, we are committed to reduce the environmental impact of our own operations as well as our supply chain. We aim to become climate neutral by 2030.
As we do now own production facilities our direct environmental impact is relatively small. Our main impacts are indirect, via partners and suppliers. That is why we consider cooperation in our supply chain key to reach our goals and will be actively working towards more sustainable resource use and environmentally sound supply chains.
With regard to our direct Scope 1 emissions our biggest impact is the fuel consumption of our own vehicle fleet. Therefore, we have set the goal to replace all fuel cars by an electric car or another sustainable alternative by the end of 2024.
Furthermore, we have signed the climate commitment of the cycling industry, initiated by Shift Cycling Culture.

We have taken the following actions to reduce our environmental impact:
- Use of our own heat pump to warm our building and warehouse
- Purchase of local green energy certificates for all of our electricity consumption
- Installation of LED lighting in our warehouse and office to further reduce energy consumption
- First calculation of our Corporate Carbon Footprint (Scope 1, 2 and partly 3)
- Life Cycle Assessment of one bicycle model
- Training modules followed on circular product design

We have started measuring our carbon emissions for the year 2021 and will continue doing so on a yearly basis. Also, we measure energy consumption and waste generation regularly.
The calculation of our Corporate Carbon Footprint and the Life Cycle Assessment has shown us that our biggest impacts occur within our supply chain. More than 90% of our Corporate Carbon Footprint is related to Scope 3 emissions. To reach our climate neutral ambition we need to engage our entire supply chain in order to reduce emissions related to our production, create products that last longer and develop business models that recover materials.

Kruitbosch stands for fair business and avoids any form of corruption. Kruitbosch is committed to comply with all relevant business laws.

Our authorization matrix has been reviewed and updated.

We undergo complete financial auditing once a year. These audits are used as one of the methods of identifying any suspicious payments which could be related to bribery or corrupt behavior. Kruitbosch has not been involved in any legal cases, ruling or other events related to corruption and bribery.