New Wave Group Annual Report 2025 2025 | Page 42

NWG // SUSTAINABILITY STATEMENT
SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model New Wave Group’ s operations and business model are dependent on stable access to raw materials, well-functioning supply chains, and the trust of customers and investors. These dependencies constitute potential risks and opportunities for the Group’ s profitability and reputation.
The identified material impacts, risks and opportunities – presented below – influence business model, value chain, strategy and decision-making, as they are considered in strategic and operational developments. The impacts originate from the Group’ s operations and business relationships and are naturally linked to the Group’ s business model and strategy.
The identified risks and opportunities may affect the Group’ s financial position, result and cash flow. However, the scope of these financial effects is not reported due to limited access to financial data and the absence of standardized methods for measuring financial consequences related to material risks and opportunities.
The material impacts, risks, and opportunities identified are consistent with previous materiality assessments. Thus, no changes have been made to the material impacts, risks, and opportunities compared with the previous reporting period. However, the assessment methodology has become more comprehensive in accordance with ESRS 1, as described in section IRO 1: Description of the processes to identify and assess material impacts, risks and opportunities.
In addition to the disclosures required under the ESRS, the Group has not identified any additional company specific material impacts, risks, or opportunities for this reporting period. All information presented in this statement therefore covers the areas addressed by the topical standards, and we have not found it necessary to include additional company specific disclosures to provide a complete picture of our sustainability impacts.
Standard
Description of material impacts related to the Group’ s strategy and business model and time horizons Short( S) / Medium( M) / Long( L)
Actual( A) / Potential( P) Positive(+) / Negative(-)
Where in value chain Upstream( U) / Own operations( O) / Downstream( D)
Financial effects, risks, opportunities and time horizons Short( S) / Medium( M) / Long( L)
Comments
ESRS E1 Climate Change
Impact – Climate impact from production The Group’ s largest climate impact arises from the production of textiles and other products and is primarily attributable to the use of fossil fuels as the main energy source, as well as to greenhouse gas emissions generated during the manufacturing and processing of raw materials and products. Time horizon: S, M, L
Impact- Transportation A smaller but still material share of the climate impact comes from transportation, primarily long distance transport between Asia, Europe, and North America, as well as road transport by truck from warehouses to customers. Time horizon: S, M
Impact- Upstream energy consumption Energy consumption in the production of textiles and other products is extensive, and access to energy is crucial for determining where and how the products can be manufactured. Fossil fuels remain an important energy source in many of the countries where the majority of our products are produced. Time horizon: S, M
U
A- O
P- D
U O
A- D
A- U
Risk / Opportunity – Shift in market and technology Shifts in customer preferences and behavior create both risks and opportunities. The financial effects primarily relate to interest rate risks, currency risks, and liquidity and credit risks if changes in external perceptions lead to financial uncertainty. Time horizon: S, M, L
Risk / Opportunity – The Group’ s reputation Both risks and opportunities are linked to stakeholders’ trust in the Group and the perception of its brands. For example, inadequate management of climate related issues may affect stakeholder confidence, which in turn could lead to reduced sales. Conversely, strong performance can strengthen the brand and generate financial benefits. Time horizon: S, M, L
Risk / Opportunity – Legislation There is a risk of increased costs for activities and products with high environmental impact( taxes, tariffs, etc.). There is also a risk of fines in the event of non compliance with regulations. This may also present an opportunity, depending on the Group’ s ability to phase out fossil fuels in the supply chain. Reporting related costs may also increase. Time horizon: S, M, L
Risk – Physical risks Chronic and acute climate related risks may affect the availability of raw materials and essential resources such as water and energy and may cause disruptions in production and distribution. There is also a risk of impacts on material assets( primarily buildings) as a result of physical climate related events, such as flooding. Time horizons: M, L
Risk- Measurability A general challenge and risk relate to the availability and handling of data and information required to measure and disclose relevant information in line with emerging legislation, as well as increasing information demands from customers and other stakeholders. Improving measurability requires investment in resources and system support, as well as training efforts both internally and for suppliers. Time horizon: S, M
The classification of opportunities and risks( physical risk, transition risk) as well as the plans for mitigating them are presented in the results of the scenario and resilience analysis on page 47-49.
042 // ANNUAL REPORT