NWG // SUSTAINABILITY STATEMENT
Impact, risk and opportunity management
IRO-1: Description of the processes to Identify and assess material climate-related impacts, risks and opportunities In 2024, New Wave Group began developing a process for a materiality assessment in accordance with the CSRD and the European Sustainability Reporting Standards( ESRS), which were implemented in 2025. Consequently, the process has become significantly more comprehensive compared with previous reporting periods.
The purpose is to identify and assess material impacts, risks and opportunities related to the Group’ s operations and value chain, based on the principle of double materiality. The process will continue to evolve and improve over time.
The process was conducted directly at the Group level. Initially, a list of sustainability matters, and related sub topics was developed with reference to ESRS 1, serving as the framework for defining the scope of the analysis. For each sub topic, a qualitative impact assessment was carried out, examining effects on people and the environment associated with the Group’ s operations and its primary manufacturing value chain— from raw materials to end use of the Group’ s products( upstream and downstream).
The analysis was conducted on a consolidated basis for the Group and has primarily focused on impacts, risks and opportunities upstream in the value chain, particularly in the production of textiles, where the core of the business lies within the Corporate and Sports & Leisure segments. Consideration has also been given to other product flows that are more significant within the Gifts & Home Furnishing segment. Where other material activities and impacts have been identified for individual entities, these have been assessed separately.
In order to assess actual and potential impact and determine materiality, each impact was assessed using four ESRS parameters: scale, scope, irremediable character of the impact( which together determine the severity) and likelihood. Each parameter was assessed individually on a four-point scale( 1-4), with 1 indicating very low and 4 very high. An impact was classified as material where the average score exceeded 2.
Furthermore, a qualitative assessment of financial materiality through an analysis of sustainability related risks and opportunities that may affect the Groups financial position, result or cash flow was conducted. As well as potential dependencies on external factors, and the value chain was taken into consideration. The assessment took into account the magnitude of the potential financial impact, the likelihood of occurrence, and the relevant time horizon. The financial materiality assessment was consolidated with the impact materiality assessment as part of the overall double materiality analysis.
For each impact, and for financial risks and opportunities, the chosen time horizons, short term( 0 – 2 years), medium term( around 10 years) and long term( up to 30 years), were considered. Additional information on time horizons is provided under BP 2: Disclosures in relation to specific circumstances.
The assessment was performed without taking existing policies and actions into account. During the identification of risks and opportunities, some were linked to multiple ESRS standards. This means that certain risks and opportunities have interdependencies, for example, a single risk may relate to environmental, social and governance aspects simultaneously. These dependencies were taken into account in the materiality assessment by ensuring that the consequences of individual events were reflected across several relevant impacts, risks and opportunities. Similarly, potential actions were analyzed in terms of their ability to affect or mitigate multiple impacts, risks or opportunities at the same time.
Throughout the entire materiality assessment process continuous dialogue was maintained with key stakeholders to identify and verify impact, risks and opportunities. Key stakeholders include ESG experts within the organization, owners, customers, employees, suppliers and community representatives. These groups have been identified as those that influence and shape New Wave Group’ s direction and reputation in the market. Dialogue occurred via multiple channels depending on the stakeholder group- such as ongoing interaction with suppliers and employees, as well as forums such as capital markets days and the Annual General Meeting for shareholders. Internal control and follow up of identified risks and targets are carried out within the framework of the Board and Group Management’ s responsibilities. All risks identified as material by the Group, regardless of theme, follow similar risk management procedures in which they are analyzed and continuously monitored.
The assessment is also based on external reports, industry benchmarking, applicable legislation and knowledge derived from relevant networks in which New Wave Group is represented.
Throughout the process, the Group’ s Board and Executive Management were involved in the assessment. The final assessment was reported to and presented to the Board in May 2025.
The assessment has been documented and stored in the Group’ s internal systems and working materials in a structured manner that ensures traceability, transparency and the ability to verify the information during external review.
IRO-2: Disclosure requirements in ESRS covered by the undertaking’ s sustainability statement The material information disclosed in the sustainability statement has been identified and specified based on the criteria in ESRS 1. No specific thresholds were applied in the identification. However, the Group has used thresholds to assess whether a topic is material. The thresholds and methodology applied to determine materiality are described in more detail in IRO-1: Description of the processes to identify and assess material impacts, risks and opportunities.
050 // ANNUAL REPORT