SWEP sustainability report 2019

CHALLENGE EFFICIENCY

SWEP Sustainability report 2019

Content 3 4 This is SWEP 5 The Dover Corporation 6 Highlights summary 7 UN sustainable development goals 8 Promoting health, safety and well-being 10 Engaging employees A note from our President

12 Development and equality 14 Upstream sustainability 16 SWEP carbon footprint 18 Scrap reduction 19 Risk and risk management

20 Business integrity inside and out 21 Our legacy - building the future 22 SWEP products in action 23 Corporate social responsibility and community engagement

To whom it may concern... ...in other words, everybody

The intention of this, our first inclusive sustainability report, is to raise awareness of SWEP’s sustainability efforts and results throughout 2019, and to set a benchmark for our future endeavors. Sustainability is the foundation of our company. Ever since our inception, some thirty years ago, our trailblazing technology has continuously saved energy, material, and space in heating and cooling systems. Our commitment to creating more from less is stronger than ever. We deliver on this commitment in two ways – by creating products that promote sustainable energy usage in heat transfer, and by manufacturing these products in a socially and environmentally responsible manner. This report reviews our successes in how we produce, and points the way to how we can improve further. We look forward to having even more to report next year.

A note from our President

Our commitment is a thousandfold At SWEP, we set ourselves the goal of leading the conversion to sustainable energy usage in heat transfer, and of constantly creating more from less energy, material and space. To reach this goal, we have to challenge the status quo, raise our sights and constantly dare to try new things. I am proud to say that, throughout 2019, this is exactly what we have done. Pushing the envelope to create a competitive edge and a more sustainable future is part of who we are as a company and as individuals. All 1,000 of us are at SWEP for a reason. We believe and know that we make a difference. It is inspiring and purposeful work. For us, challenging efficiency is about constantly asking questions of ourselves and our products. Where is energy being wasted? Where is heat going unrecovered? How much scrap is being produced? Do we treat each other with respect and fairness? And most importantly, how can we continue to improve? We deploy this mindset to everything that matters – products, production, processes and people. Our desire to create more from less fuels our innovative, entrepreneurial spirit, and that pushes us to keep challenging efficiency. And we should remember too, that challenging efficiency is smart business. By pushing towards sustainability in everything we do, we strengthen our organization as well as contributing to a better future. In 2017, we embarked on a journey towards becoming carbon neutral by 2030. I'm delighted by the progress we have made in this area, and we are now ready to widen our efforts and frame them in a global context. To that end, we have looked to the UN Sustainable Development Goals for 2030. By identifying and acting on the goals most relevant to us, we have begun a new journey to address sustainability in a holistic way. Thank you all for a job well done. Now let's see what we can do better.

Pushing the envelope to create a competitive edge and a more sustainable future is part of who we are as a company and as individuals.

Ulrika Nordqvist, President SWEP

This is SWEP

A green business is a strong business

Charged with a spirit that has challenged efficiency for decades, SWEP has contin- uously demonstrated that sustainability and financial success can be compatible. SWEP was established in 1983 by two Swedish entrepreneurs who invented brazed plate heat exchanger (BPHE) technology. Today we are more than 1,000 people and have production plants in Sweden, Slovakia, Malaysia, China and USA, as well as offices in 20 countries and representation in 50 countries. We produce the widest range of brazed plate heat exchangers (BPHEs) on the market, and work closely with our customers to deliver efficient solutions, even to complex applications like coal- to-clean-energy conversion and refrigerant change-out. Multiple sourcing and flexible logistics gives us further competitive advantage – our worldwide production capacity secures BPHE supply that others cannot match. The worldwide availability, best practices and trend insights that we provide can only come from a globally active and knowledgeable organization, but we also strive to stay close to our customer – on the ground wherever needed, with local expertise, language and practical support.

Sealix surface sealing was introduced to the market

®

2020

AHRI - SWEP 1st BPHE company with certified product line

Edgefield factory moved to Tulsa

Switzerland factory merged into Sweden & Slovakia

2015

2010

KOSICE SLOVAKIA

SWEP eBusiness site

KUALA LUMPUR MALAYSIA

SUZHOU CHINA

2005

2000

1995

TENTLINGEN SWITZERLAND

1990

EDGEFIELD USA

1985

LANDSKRONA SWEDEN

1983

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SWEP SUSTAINABILITY REPORT 2019

The Dover Corporation

Since 1994, SWEP has been part of the Dover Corporation, a diversified global manufacturer with more than 24,000 employees in over 70 independent companies. All Dover companies are committed to creating economic value for shareholders and customers through sustainable practices that protect the long term well-being of the environment. From greenhouse gas and waste reductions, to increased energy efficiency, Dover is striving to meet the global environmental needs of today and tomorrow. In accordance with its sustainability policy, Dover are committed to: • Managing the potential physical, regulatory, operational and financial risks and opportunities to our businesses related to climate change. • Monitoring, reviewing and improving the energy and greenhouse gas efficiency of our products, services and operations. • Communicating and engaging with customers, shareholders and employees regarding our energy and greenhouse gas performance.

Our purpose: We believe in creating more from less. Our future depends on giving more energy than we take – from our planet and our people. So we are here to lead the conversion to sustainable energy usage in heat transfer, constantly creating more from less energy, material and space.

Our vision: To significantly lower energy usage in heat transfer solutions.

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Sustainable performance in 2019

SWEP has set some challenging goals and key sustainability performance indicators to fulfill the years to come. Some shows continuously good results.

Successful scrap reduction projects

Our Kosice plant reached the goal of reduce scrap by 24% and the Malaysia plant reduced scrap costs by

60% for XL units.

Workplace accidents down

Win of Dover Safety Excellence Awards

In 2019, our total recordable incident rate (TRIR) ranged monthly over the year from 0.74 to 1.07. Total no. of accidents was 8. Our long-term target is zero accidents.

With the motivation “consistency in performance,

demonstration of leadership support, evidence of high employee engagement through Kaizen and ergonomic improvements”.

Voluntary attrition rate reduced by 1/3

CO 2 emissions reduced

Management trainings, leading to changes and innovations instigated in

For every kg heat exchanger we produce, the amount of CO e was 2 reduced by 13.42% during 2019. We

work environment on shop-floors made the voluntary attrition rate fall by 30% in 2019.

aimto reach carbon neutrality by 2030.

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We are all in this together

3 Good health and well-being

Ensure healthy lives and promote well-being for all at all ages SWEP’s contribution : Our comprehensive health and safety policies (page 8-9)

Sustainability has always been at the heart of SWEP, and now that we are working towards the UN Sustainable Development Goals (SDGs) we can see our efforts in a larger context. The 17 SDGs are part of the 2030 Agenda of Sustainable Develop- ment, which has been adopted by all UN member states. An urgent call for global action, the goals address issues critical for peace and prosperity, now and in the future – from ending poverty and other deprivations, to improving health and education, reducing inequality, tackling climate change and working to preserve our oceans and forests. Aligning our priorities, goals and target with the SDGs helps us focus our purpose. By using them as a framework, they help us to identify where we can make the biggest positive impact and guide us towards actions that contribute to a better world. We have identified seven SDGs where we believe we can make a genuine contribution to their targets.

4 Quality education

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all SWEP’s contribution: Supporting our employees’ professional development and providing learning opportunities for students (page 12-13)

5 Gender equality

Achieve gender equality and empower all women and girls SWEP’s contribution: Evaluating and promoting equality throughout our organization (page 12-13)

7 Affordable and clean energy

Ensure access to affordable, reliable, sustainable and modern energy for all SWEP’s contribution: Our brazed plate heat exchangers reduce electricity consumption and fossil fuel usage globally (page 22)

10 Reduced inequalities

12 Responsible consumption and production Ensure sustainable consumption and production patterns SWEP’s contribution: Reducing scrap and emissions in our production sites (page 14, 18, 20, 21) Reduce inequality within and among countries SWEP’s contribution: Offering starting wages above national minimum wage and creating employment opportunities for ethnic minorities and people with disabilities (page 10, 12, 20)

13 Climate action

Take urgent action to combat climate change and its impacts SWEP’s contribution: Our CO journey. We intend to become a 2 carbon neutral organization no later than 2030 (page 16, 22)

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SWEP SUSTAINABILITY REPORT 2019

A safe space Promoting health, safety and well-being

All incidents and accidents are recorded, and corrective measures are taken. In 2019, there were eight accidents throughout the SWEP world. All our locations are regularly audited. In 2019, our plant in China increased audit frequency to monthly and weekly audits. Digital safety observation card and monthly meetings also improved safety awareness there. Monthly follow-up meetings on safety matters were conducted in all production sites, addressing the KPIs for all plant management teams. Numerous safety training sessions were held across our global network of sites, and a number of safety and ergonomy improvements were carried out during 2019. For instance, lifting platforms and robotic arms were installed in our Slovakian site, while in Sweden an external ergonomist regularly visited the site to evaluate and offer advice. Improving workplace conditions and ergonomy

As the UN Sustainable Development Goals emphasize, ensuring healthy lives and promoting well-being is an essential part of sustainable development. At SWEP, we focus our efforts close to home with initiatives, both at individual sites and globally, that protect and improve the health, safety and well-being of our employees. Guided by the SWEP Health and Safety Policy and Dover’s Code of Business Conduct and Ethics, we treat our employees’ health, safety and well-being as an important moral and strategic issue. We start by ensuring every employee receives the appropriate training, and that occupational health and ergonomic safety meet or exceed local regulations. Every location has an appointed EHS-responsible person who is supported by monthly follow-ups from central management. From this base we take a holistic approach, and work to improve the health and well- being of our staff in addition to preventing accidents and maintaining a safe workplace. Our philosophy is that no accident is acceptable. We monitor health and safety carefully to ensure that standards are adhered to and improved. By involving all levels of employees and sub-contractors in identifying hazards, we systematically reduce health and safety risks. Lessons learned and best practices are shared. Workplace accidents: zero is always the goal

% Workplace accidents: zero is always the goal

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A healthy holistic view Our approach to well-being extends beyond the workplace. Essential health and wellness programs are run throughout the SWEP world. We have occupational health care, and audiometry tests are done in our global sites, in line with or beyond local regulations. Several general health initiatives were taken 2019, including local programs and platforms aimed at promoting sports, health awareness and outdoor activities. Across the entire company, the Basic Beliefs program continued to promote a healthy and positive work environment.

A healthy holistic view

Rewarded efforts Our parent company supports and rewards workplace health and safety through the annual Dover Safety Excellence Awards. SWEP Landskrona plant were delighted to win gold this year, a reward for our “consistency in performance, demonstration of leadership support, evidence of high employee engagement through Kaizen and ergonomic improvements”. We are, of course, very proud to receive this recognition, but we will not rest on our laurels and we are keen to push our performance to an even higher level over the next 12 months.

Ulrika Nordqvist, President SWEP, receiving the Gold Award

Demonstration of leadership support

Evidence of high employee engagement

Ergonomic improvements

Consistency in performance

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Engaging employees

The best place to work

To successfully carry out SWEP’s strategic plan and deliver key initiatives, we need talented and highly motivated people who share our drive to succeed. In order to attract, retain and develop these people, SWEP sets out to offer no less than the very best place to work.

For business like ours, growth and success is dependent on finding and retaining the right competences. Regardless of the technological excellence of our processes, they are ultimately carried out by people. Therefore, we understand the need to create a secure and motivating environment to attract the best. At the same time, we demand that employees support and adhere to the unique transparent, fair, collaborative, entrepreneurial SWEP culture. Listen carefully To fulfil our ambition of being the best place to work, we need to listen to employees at all levels, and in all sites. With this is mind, surveys, visits, discussions and management team regularly visits all parts of the organization for round table discussions and townhall meetings. Employee engagement surveys were conducted in 2017 and 2018, and the results have been used as the basis for changes implemented throughout 2019. These improvements have been centred around two themes, Accountability & Performance and Rewards & Recognition. The key improvement has been changes to the goal- setting process. Our overall business plan is used as a foundation, from which goals are broken down to each function, department, team and finally to individuals. This ensures that all employees better understand the meetings are all used as tools for creating engagement and motivation. Our executive

expectations of them and can see how their particular goals contribute to overall business success. This is key to creating engagement and motivation. Passing it forward All our managers and team leaders are encouraged to promote a culture of feedback and recognition within SWEP. Improving feedback has been one of the priorities revealed by the employee engagement surveys in 2017 and 2018. Leadership training at all our plants has supported managers in this, and this has been complemented by a range of innovative local programs. In our American sites, for example, cross-functional teams have worked

Creating engagement and motivation

Employee engagement surveys

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together to come with new ways of improving communication and feedback. This has resulted in the introduction of skip-level meetings and a management shadow program, where managers spend at least two hours every month on the shop-floor to learn more about the challenges and pressures that their team might be facing. The changes and innovations we have instigated have shown early signs of success: our voluntary attrition rate has fallen by 30% in 2019.

Leadership training at all our plants

Voluntary attrition rate decreased overall by 30% 30%

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SWEP SUSTAINABILITY REPORT 2019

An inclusive workplace with opportunities to grow Development and equality

provides education and training throughout our global organization. Its purpose is to ensure the development of business-critical competences. In 2019, the Academy delivered courses in leadership development, sales development, global business, product & application training, and finance for non-finance employees. We value outstanding skills and talent at SWEP, so we ensure that key competencies within the organization are recognized and developed, which helps support growth initiatives and succession-planning in critical positions. Our HR information system is an effective recruiting tool in this regard, providing visibility of candidates, simplifying administration and streamlining both internal and external recruitments through a well-structured process. Everybody at SWEP also gets access to all vacancies within our parent company, Dover. Internal career paths

C We offer an inclusive, diverse, collaborative and fair workplace, where everybody can access the opportunities they deserve. Not only does this motivate our current employees, it attracts new talent and brings value to our – and our customers’ – business. The working culture at SWEP is – in addition to the meaningful solutions that we develop – a key reason why people want to work here. The collaborative entrepreneurial spirit at the heart of SWEP is something that attracts and retains employees, but we understand that we can do more. In line with the UN’s Sustainable Development Goals, we are giving particular attention to two areas: personal development and education, and gender equality. To support professional development SWEP provides employees with learning opportunities to sharpen job skills, prepare them for the next step in their career, and cross-train to gain flexibility and learn about other parts of the company. Throughout SWEP, we promote a 70-20-10 model for learning and development, whereby 70% of learning occurs experientially through working with new scenarios, 20% occurs through social engagement with peers, and 10% occurs through structured training and courses. Within this framework we encourage our employees to challenge themselves in their daily work, while still retaining time for more formal learning opportunities. Promoting education A A D P E

E

M

Links to academia

W

Y

SWEP regularly subsidize employees who want to pursue higher education. Good relations with schools, colleges and universities also allow us to provide learning opportunities for students through internships, visits and collaboration on projects.

S

Our commitment to gender equality

SWEP and most of our customers operate in industries that are male dominated. As of 2019, we employ 284 women and 750 men, with a considerably higher ratio of men within production. However, delivering equality of opportunity to employees and potential employees regardless of their gender, race, religion or sexual preference is a central part of our business strategy.

A learning organization

In addition to local initiatives, the SWEP Academy

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SWEP SUSTAINABILITY REPORT 2019

Personal development plan

Leadership trainings

Talent programs

We have an annual process that examines wages across the organization and ensures pay equality for people with the same job roles. We have a well- established hot-line process for reporting any divergence from our zero-tolerance policy towards all forms of violence at work, including verbal and physical abuse and sexual harassment. We also employ gender equality procedures in our selection and recruitment process. Although we have more male than female employees across the organization as a whole, the male to female ratio within our executive management team the ratio is 5 to 4. Our goal is to have the same ratio of female non-production managers as female non-production employees by 2025 (40%). We also make a stand for gender equality by organizing events such as inviting the Women’s Aid Organisation in Malaysia to address our workforce about issues relating to sexual harassment.

Employer branding

Gender equality

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Securing sustainable supply Upstream sustainability

We have taken a stand to conduct business with our suppliers and logistics partners with honesty, integrity and respect. In addition, we demand strict adherence to a set of standards that ensure SWEP’s entire supply chain is ethical and sustainable. Beyond compliance Before entering into business agreements with suppliers, we make sure that we share the same values and ethical business practices. One of the first steps is regulatory compliance. According to the type of materials to be supplied, we insist that suppliers meet the following prerequisites: environmental (ISO 14001) management standards. Certification demonstrates that suppliers are implementing on-going improvements in their product quality, and in the environmental impact of their production. – We demand that our suppliers can prove that their raw materials have been obtained legally and in a sustainable way. By doing this we ensure that our entire supply chain is ethically sound. • Full material traceability • ISO 9001 and ISO 14001 certifications – These are quality (ISO 9001) and

In the same way that we favor close relationships with our customers, SWEP continually strive for strong partnerships with our suppliers. That way, we can ensure that the parts and materials we use come from ethical, sustainable sources. SWEP´s most critical suppliers are our metal and machining suppliers, from whom we buy the raw materials and machined parts used to manufacture our brazed plate heat exchangers. Today we have more than 15 different suppliers, with whom we work closely to manage risk and to ensure that our products are genuinely sustainable. We also have regional and global contracts in place with different logistics companies. They play a crucial role in our supply chain, delivering to SWEP finished

goods warehouses and making sure that our customers receive their products in time.

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• Material standards, design requirements, process control and quality management – We work alongside suppliers to ensure that the raw materials and parts they deliver meet our high standards. This guarantees that the products we deliver to our customers are resilient and will provide efficiency benefits throughout their lifetimes. It also helps to reduce unnecessary waste. – By following these EU directives and regulations our suppliers demonstrate that they handle chemical substances safely and with consideration of the impact on human health and the environment. – In addition to EU regulations and directives, we insist that our suppliers use Material Safety Data Sheets when working with hazardous chemicals • Compliance with Dodd-Frank Act, Conflict Minerals • Compliance with REACH and ROHS • MSDS for chemicals – For suppliers who work with conflict minerals (such as tin, tungsten, tantalum, gold and their ores and derivatives), we demand that due diligence is undertaken to ensure that such materials are sourced ethically and sustainably, in compliance with the US Dodd- Frank Act, Section 1502

• Compliance with safety regulations (e.g. CE marking in Europe) – All manufactured products we receive must be marked with the European CE marking or equivalent. This ensures that any parts that we use are safe and environmentally friendly. – These are important safety standards for the use of pressure equipment. By insisting that our suppliers have this certification, where applicable, we protect workers in our supply chain from unnecessary safety risks. • The Dover Corporation Supplier Code of Conduct – In addition to the demands that SWEP make of our suppliers, we also insist on compliance with the code of conduct of our parent company, Dover. This covers areas such as complying with local and international laws, maintaining a fair and safe workplace, and committing to conserve natural resources and reduce waste. • PED and ASME certification

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Heading for neutral Our CO journey 2

The climate crisis is a global threat that will affect everyone on the planet. SWEP contributes by producing energy- efficient, sustainable technology, but we also work hard to minimize the environmental impact of our operations and production. One way we do this is by monitoring, reducing and offsetting our emissions. In 2017 SWEP decided to embark on a journey towards becoming a carbon neutral organization by no later than 2030. We commissioned Carbon Footprint Ltd to develop a calculation methodology to help us understand the volume and sources of emissions from our business activities. Based on the input from Carbon Footprint Ltd., we decided to focus on the areas where we could make the biggest impact – electricity use across our sites, and fuel consumption from both business travel and distribution. The figures quoted here are taken from Carbon Footprint Ltd.’s Sustrax Verification Report unless otherwise stated. Business travel by air As a global company we strive to stay close to our customers, and we have moved towards a ‘smart traveling’ approach in recent years. We have developed a metric to monitor our travel behavior, and promoted digital meetings as an alternative whenever possible.

It all adds up Our key performance indicator is the amount of CO e 2 (carbon dioxide equivalent) that we emit for every kg heat exchanger we produce. We are pleased to announce that this figure decreased by 13.42% during 2019. Our goal is, of course, to reach carbon neutrality by 2030. It is an ambitious target, and we are delighted that we are making progress!

Total tons of CO emissions from freight 2

2019

% change on previous year

2018

-28.03% -50.38% 9.40% -1.18 10816.67% -18.90%

Air freight Express freight Lorry freight

2100.17 1778.92 5024.57 455.74 13.1 9372.5

2918.05 3584.95 4592.97 461.2 0.12 11557.29

Sea freight Rail freight Total freight

We are delighted that our emissions due to commercial flights fell by 20.88% in 2019.

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Breakdown of SWEP carbon footprint

Site electricity 52.7%

Air freight 24.4%

Lorry freight 7%

Flights 6.6%

Refrigeration and Air conditioning 4.4%

Sea freight 3.3%

Other 1.6%

Site electricity consumption

Conversion to LED lighting In 2017 electricity consumption accounted for 54% of our total carbon footprint. To address this, we chose green energy tariff contracts for our sites in Sweden, Germany and Slovakia. This ensures that the majority of the electricity we use in these sites is derived from renewable sources. We are currently investigating the installation of solar panels at the sites where green energy tariffs are not available. In 2019, our emissions from electricity consumption decreased by 3.53%. We are in the process of replacing conventional light bulbs with LEDs. All new buildings are equipped with LEDs only, and motion detection is used wherever feasible. In our existing sites, the drive to install LEDs has been ongoing since 2016 and in some countries 90% of lighting is provided by LEDs. Once completed, the conversion to LED technology will (according to internal calculations) reduce the energy we use for lighting by 33%. Our focus on cutting emissions from distribution has yielded positive results. We are especially pleased to note that we have significantly reduced emissions relating to air freight and express freight (this category refers to deliveries with short deadlines mostly transported by air). Overall, we have managed to reduce our freight-related emissions by 18.9%. Freight by air, road and rail

Site electricity consumption

Conversion to LED lighting

Reduced emissions relating to air freight

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Scrap success stories Scrap reduction

Reducing scrap can be an important way to address our environmental impact, by decreasing our energy and material use. Two SWEP sites have performed excellently this year, and have set an example for the rest of the industry to follow.

Kuala Lumpur, Malaysia Our Malaysian plant set themselves an ambitious target of reducing scrap on the production of XL units by 50%. They used the 4M approach (Man, Machine, Method, Maintenance) to make sure that every aspect of their production process was carefully investigated. The project succeeded through a combination of increased staff awareness, improved fitting, and changes to maintenance procedures. This resulted in a reduction in scrap costs of 60.9%. Material scrap is also sold to recycling companies, separated when possible to yield the highest return and optimal reuse.

By decreasing the amount of scrap created, a site can reduce the amount of energy and material they need to produce every heat exchanger. This can cut transportation demands too, thus reducing greenhouse gas emissions throughout the value chain. The scrap reduction projects in our sites in Slovakia and Malaysia succeeded through careful planning, thorough investigation and decisive action. Kosice, Slovakia Our Kosice plant set themselves a tough target of reducing their scrap by 24%. The site managers did a series of Pareto analyzes for all of the production teams, and identified the location and root causes of scrap. A number of possible causes of scrap were identified, including two that are related to brazing processes. One of the key discoveries from the Pareto analyzes was that these processes were inter-related: measures taken to reduce scrap in one process could have caused more scrap to be created in the other process. Therefore the project team had to address both processes simultaneously, making slight changes to both product design and assembly. The changes proved to be a great success, and the Kosice plant comfortably met their challenging target for 2019.

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Applying risk management principles to sustainability Risk and risk management

At SWEP we believe it is vital for sustainability reporting and risk management to be properly aligned. The goal of risk management at SWEP is to ensure that we continue to succeed in both the short and long terms, and that we are prepared to handle the challenges and opportunities that lie ahead of us. With that in mind, it is important to take into consideration the risks that arise from ecological degradation, and to have a robust strategy for mitigating against them. The table below is an extract from our risk management framework, outlining the mitigation efforts SWEP makes in relation to sustainability.

Description of risk mitig ation risks

Major

Environment Climate change

To mitigate the impact on nature, SWEP actively works on reducing process scrap. If scrap occurs in the manufacturing process the material is sorted and re-cycled as far as possible.

SWEP also controls its supplier base very carefully in order not to purchase materials that contain any conflict minerals.

All SWEP locations have developed a disaster recovery plans. CO emissions and carbon footprint 2 SWEP has agreed and implemented KPIs to support its carbon management journey and the target is to become a Carbon Neutral organization by 2030. We have identified electricity consumption, freight activity and business flight as the key areas for emissions reduction.

Our progress towards this target is independently verified by Carbon Footprint Ltd.

Corporate Social Responsibility Working environmental risks

Each SWEP location has an EHS- responsible person and works according to the local country’s work environment legislation. Audits are made on a regular basis to ensure that no risks are present. All incidents and accidents are recorded, and corrective actions are implemented. Best practice and lessons learned are shared between the different manufacturing locations. SWEP and Dover are committed to worker safety and we continuously strive to provide the best possible working environment for or employees. SWEP follows a Non-discrimination and Equal Opportunity Policy. The purpose of this policy is to communicate the commitment of the President and the Management team to the promotion of equality of opportunity in SWEP. It ensures that SWEP complies with the equality obligations under the various anti-discrimination legislations in different countries.

Discrimination and equal opportunities

The principle of equal opportunity and non-discrimination serves as the framework for all human resources management in SWEP.

Decisions about recruitment and selection, promotion, training or any other benefit are made objectively and without unlawful discrimination.

Respect for human rights Risk of human rights violations within our organization and supply network Corruption and bribery Corrupt payments and other unethical behaviors within our organization and supply network

To mitigate the risk of human rights violations SWEP has developed its Basic Beliefs policy. During SWEP management team meetings, the SWEP Basic Beliefs are regularly discussed and evaluated. All regions and locations are represented in the top management team.

All major direct material suppliers are audited on regular basis.

Our Company will not tolerate bribery of any form with any third party, public or private, whether done directly by our employees or indirectly through third parties, even if by upholding this ethical standard we lose business or encounter difficulties (for example, delays in obtaining permits or licenses) as a result. All employees are regularly trained, and the information is available on the SWEP intranet site. The trainings, through on-line courses distributed by Dover, are mandatory to all employees and participation is monitored on a regular basis.

All major direct material suppliers sign the Dover Code of Business conduct and ethics.

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Sustainable customer relations Business integrity inside and out

By understanding how our customers use our products, we better understand the impact that they make on the world. That’s why we are continually in collaborative partnerships with our customers, to discover untapped potential and make a positive difference. We’ve picked out five ways in which we stay close to our customers.

1. Global presence and local accessibility We offer best-practices, trend insights, and outstanding products and services that can only come from a globally active and knowledgeable organization. But at the same time, we stay close to our customers, with local expertise and practical support on the ground. 2. Application know-how via collaborative partnerships We strive to be the best long-term business partner through collaboration, shared expertise and integrated development. 3. Innovation focused on creating value We take what we know and then dare to try new ways, focusing on creating value for our customers’ business and our world.

4. High standards in products and services When doing business with SWEP, our customers know they can always expect high quality products and services, verified by third-party approvals, certifications and standards. We always strive to exceed expectations while acting with honesty and integrity. 5. Wide and comprehensive product range SWEP’s customers appreciate the modular approach that lets them find the perfect fit for their installation. With our finger-on-the-pulse knowledge of industry developments, we continually add products to our range that fit seamlessly into our core markets.

Commitment to Integrity We operate on a worldwide basis with multinational personnel committed to high standards of integrity towards our customers, towards our local communities, and towards each other. To ensure that

sexual orientation or age. We foster a culture of equal opportunity and diversity.

Career development are always based on legitimate business reasons, and always adhere to national labor laws. Working hours, notice periods, salary, vacation and all working conditions follow local laws. All employees are informed about their duties and responsibilities via our Integrity Counts training course, which is tailored for all employees’ background, nationality and role.

we meet our standards, we follow two key policy frameworks Dover’s Code of Business Conduct & Ethics Policy and Dover’s Global Anti-Corruption Policy. In addition to these policies, we do not tolerate any kind of discrimination, whether it is based on ethnic origin, nationality, religion, political views, gender,

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A sustainable planet for future generations Our legacy

We have been thinking about the future for a long time. We all want to look into the eyes of our children and say we did everything we could to provide prosperity, a good quality of life, and a habitable planet for generations to come. Sustainable manufacturing is about commercially effective manufacturing that respects the environment and people's health. It minimizes consumption of natural resources, energy and toxic substances, and it eliminates the creation of waste and while producing quality products. We use several supportive tools for sustainable manufacturing. certification demonstrates a committed stance on environmental management to stakeholders. By correctly implementing an environmental management system, companies ensure environmental compliance, improve environmental performance and provide a systematic and strategic approach to environmental issues. REACH This regulation ensures high level of protection of human health and the environment, with respect to the use of hazardous chemicals. RoHS The Restriction of Hazardous Substances Directive 2002/95/EC restricts the use of six hazardous materials in the manufacture of various types of electronic and electrical equipment. Environmental management system (ISO 14001) This international standard with accredited

Conflict minerals commitment

Conflict resources are natural resources extracted in a conflict zone, sold to finance militias and war. There is both statistical and anecdotal evidence that when belligerents have access to precious commodities

conflict can be prolonged. The most prominent contemporary example has been in central and eastern Africa, where various armies, rebel groups and outside actors have profited from mining while contributing to violence and exploitation in the region. SWEP is highly committed to complying with international efforts to reduce trade in conflict resources through auditing its supply chains and report use of conflict minerals. SWEP Earth Day Challenge In 2019, we started this new event throughout the SWEP world. Designed to inspire awareness and appreciation for environmental efforts both at work and at home, it is another way for us to challenge efficiency. This year we have seen employees create crafts out of waste, implement eco-friendly commuting, help out with gardening and cleaning in local parks and landscapes, cook vegetarian meals, and bring mugs to work to reduce plastic pollution. We aim to make this an annual tradition for many years to come!

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SWEP products in action

Sustainability supporting examples

Cleaner cities, clearer skies

We believe in getting more from less, and our products are helping industries throughout the world to achieve this. Many industries and processes struggle to utilize all the energy they access or produce, but with our efficient heat exchangers even low heat sources can be used to produce useful energy electricity. The Organic Rankine Cycle is a sustainable technology that makes it economically feasible to recover waste heat from low-temperature sources (such as geothermal, solar and industrial waste heat), and turn it into electricity. As the technology has developed, we have been able to install our heat exchangers in sustainable projects all over the world like in Spain... SWEP components play a crucial role in the microgeneration and co-microgeneration modules created by Spanish company Rank. The SWEP brazed plate heat exchangers installed in Rank‘s machines helps generate electricity and usable heat from a number of sources, including solar thermal energy and waste heat from industrial processes. These innovations are making renewable energy feasible in locations across Europe, and we are delighted to be able to contribute. Microgeneration from Spain

SWEP heat exchangers in action China’s coal-to-electricity project has been ongoing since 2017, and will result in a reduction of millions of tons of emissions. The shift away from domestic coal burning is reducing emissions of sulfur dioxide and particulate matter – significantly improving the lives of residents – while the overall reduction in carbon emissions promotes sustainability in a more global context. As a participant of the "coal to electricity" project, SWEP has produced about 100,000 brazed plate heat exchangers that are now being used in various ways with positive results. In 2019, we visited a number of suburbs around Beijing to find out more about the impact of the project. In Yanqing District, we were able to see our products in a domestic setting. The villagers’ domestic heating is now provided by heat-pumps, with our brazed plate heat exchangers a central component. We also saw our heat exchangers in action in a clinical setting. In Tongzhou district, we talked to Doctor Ma, who told us how the village clinic’s new heating system is more effective and easier to use than coal- burning stoves. He also described to us how the changes have improved life in his village: “In the old days, coal ash would cause people to choke and burning coal could be smelled before you even entered the village. This is good for the environment as well as for people's lives.”

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Close to home Corporate social responsibility and community engagement

Wherever we operate in the world, we try to connect with our surroundings. Our intention is to always be a part of the local community, to make a worthwhile contribution and to act thoughtfully and sensitively.

In China, we took part in a 5km run while collecting garbage, to promote environmental protection.

In Malaysia, we supported World Environment Day 2019 by planting trees, traveling to work using eco-friendly transport, and holding an air pollution themed treasure hunt.

th In Slovakia, we donated blood. This is the 12 time over the years.

In Sweden, we collected Christmas presents in partnership with the Maja network. Among other activities, this organization helps families with limited resources to celebrate Christmas.

In the US, we participated in the Joy in the Cause fundraiser – a series of events to help raise funds to provide care packages for families and individuals facing life-altering situations.

SWEP SUSTAINABILITY REPORT 2019

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Challenge efficiency At SWEP, we believe our future rests on giving more energy than we take – from our planet and our people. That’s why we pour our energy into leading the conversion to sustainable energy usage in heat transfer. Over three decades, the SWEP brand has become synonymouswith challenging efficiency. SWEP is a world-leading supplier of brazed plate heat exchangers for HVAC and industrial applications. With over 1,000 dedicated employees, carefully selected business partners, global presence with production, sales and heartfelt service, we bring a level of expertise and customer intimacy that’s redefining competitive edge for a more sustainable future. SWEP is part of Dover Corporation, a multi-billion-dollar, diversified manufacturer of a wide range of proprietary products and components for industrial and commercial use.

Printed on 100% recycled paper. SWEP is an ISO14001 certified company.

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