KID ASA

“The negative social impacts associated with production of textiles and interior have been systematically assessed and mitigated for many years throughout the Group's supply chain.”

Annual report 2024A · The company itself

“Our suppliers in Pakistan and Bangladesh are mainly working vertically, with tier 1-3 integrated in the same company, leading to a closer relationship and overview even further up the supply chain in these countries. In China and India, our two largest sourcing countries, the suppliers are usually split up in individual companies for each production process (horizontal production). This leads to a more challenging due diligence work for these countries.”

Annual report 2024A · The company itself

“The Group's business model relies heavily on manpower for the production of goods. A significant portion of production takes place in countries with an inherently high risk of negative impacts on workers' rights.”

Annual report 2024A · The company itself

“The non-conformities primarily involved concerns regarding health and safety conditions, excessive overtime, and fair wages.”

Annual report 2024A · The company itself

“Beyond workplace violence, gender inequality in the supply chain leads to precarious employment, particularly for women in home-based production, where short-term contracts, lack of social security, and exclusion from labor laws increase economic vulnerability. With limited access to training and career development, women remain trapped in low-wage positions with few opportunities for advancement.”

Annual report 2024A · The company itself

“The textile industry has historically been a high-risk sector for child- and forced labor, and while conditions have improved, serious risks for negative impacts remain. Many migrant and refugee workers face unfair wages, informal contracts, and exploitative conditions, particularly in high-risk regions.”

Annual report 2024A · The company itself

“Factory workers, often migrants, frequently live in employercontrolled housing, where poor conditions, lack of privacy, and restricted movement can lead to longer working hours and increased vulnerability to exploitation. Without effective oversight, these risks persist, exposing workers to severe human rights violations.”

Annual report 2024A · The company itself

“In China's Xinjiang region, which supplies approximately 20% of the world's cotton, the risk of state-imposed forced labor is high, leading to Kid ASA's ban on Xinjiang cotton.”

Annual report 2024A · The company itself

“Ensuring fair treatment of workers and minimizing negative impacts on communities are key priorities. Rather than disengaging from suppliers who fall short of our standards, we focus on collaboration and continuous improvement. We strive to assist suppliers with practical measures so they are able to continue to meet ethical and sustainability requirements.”

Annual report 2024A · The company itself

“To mitigate identified high-risk negative impacts, we implement specific requirements through policies when applicable, such as the Group's ban on cotton from Uzbekistan and Xinjiang to avoid the risk of systematic use of forced child or adult labor in the harvest of cotton.”

Annual report 2024A · The company itself

“The Kid Group has implemented the Policy for Responsible Business Conduct , which serves as the foundation for our approach to operating ethically and addressing social impact topics. This policy outlines the Group's commitment to ethical business practices and responsible supply chain management while embedding due diligence processes to assess, prevent, and mitigate negative social impacts in our operations and upstream supply chain.”

Annual report 2024A · The company itself

“The policy's requirements regarding human rights and decent working conditions are based on international frameworks, including the UN Guiding Principles on Business and Human Rights (UNGP) and the OECD Guidelines for Multinational Enterprises. It specifically addresses the material topics related to workers in the value chain, and covers all production countries.”

Annual report 2024A · The company itself

“The most significant supplier and workers in the value chain engagement takes place when representatives from the Sustainability team visit supplier factories. The goal is to foster honest and transparent dialogue to align on common expectations and understandings.”

Annual report 2024A · The company itself

“The company sets minimum social standards for suppliers, based on ILO Conventions and UN Human Rights Frameworks, covering: • Freedom of association and collective bargaining rights. • Prohibition of forced labor and child labor. • Fair wages, working hours, and employment conditions. • Non-discrimination and equal treatment. • Safe & healthy working conditions.”

Annual report 2024A · The company itself

“The annual Transparency Report is published at the Group's investor page and at Kid.no Providing and Contributing to Remediation The Group is committed to taking responsibility when a material negative impact occurs within our value chain. If we are found to be responsible for or directly connected to such an impact due to lack or breach of requirements of the Policy, we take corrective action to address the harm and ensure meaningful resolution.”

Annual report 2024A · The company itself

“Once the root cause is established, the supplier must develop a Corrective Action Plan report (CAPr), outlining the specific measures they will take to address and prevent the issue from recurring. This plan is then shared with Kid Group for review, ensuring a collaborative approach to implementation and follow-up.”

Annual report 2024A · The company itself

“When a supplier gets identified findings, either minor, major or critical, on an audit for the first time, they are given the opportunity to correct the issue, demonstrating their commitment to compliance and ethical business practices. However, if a supplier fails to show willingness to address serious violations or if a major issue is repeated, Kid Group evaluates to terminate the business relationship.”

Annual report 2024A · The company itself

“Therefore, access to reliable and safe whistleblowing is important to secure that relevant non-compliances are reported and identified. According to our supplier Code of Conduct in the PAR, it shall always be safe to raise a concern in our supply chain if a worker experiences unwanted events or any kind of breaches with the Code of Conduct.”

Annual report 2024A · The company itself

“Kid Group has a whistleblower channel in place for external parties .”

Annual report 2024A · The company itself

“The third channel is through our engagement with the International Accord on Health and Safety, a third-party stakeholder with relevant knowledge about building-, electrical-, and fire safety, give the workers in Pakistan and Bangladesh a chance to file complaints related to Health and Safety. As an Accord brand signatory, we contribute to provide workers at Accord-covered factories with a complaints mechanism and protect them against retaliation for utilizing it.”

Annual report 2024A · The company itself

“Identification of Risks and Impacts – Mapping and assessing potential and actual negative impacts on workers in the value chain.”

Annual report 2024A · The company itself

“Value Chain Workers // S2-4 Kid Group's approach ensures that material impacts on workers in the value chain are continuously assessed, mitigated, and addressed. Through due diligence processes, supplier engagement, corrective action plans, and tracking effectiveness, we are committed to building a responsible and ethical supply chain.”

Annual report 2024A · The company itself

“Engagement with Suppliers and Corrective Action Plans (CAPs) Before entering into business relationships, all new suppliers and factories are thoroughly screened based on a variety of environmental and social criteria. Relevant third-party certifications are collected and verified. Additionally, all suppliers must sign and comply with the Group's PAR (Purchasing Agreement Requirements) before any orders are placed.”

Annual report 2024A · The company itself

“STATUS OF THE INTERNATIONAL ACCORD 2024: The International Accord for Health and Safety in the Garment and Textile Industry (International Accord) is a legally binding agreement between garment/home textile brands and trade unions, designed to uphold worker health and safety within the textile and garment industry. As a framework for action, the agreement supports the implementation of the Accord's Country-Specific Safety Programs (CSSPs), currently operating in Bangladesh and Pakistan, while also establishing a foundation for expanding similar programs to other garment-producing countries in the future.”

Annual report 2024A · The company itself

“We have targets related to the participation and progress of the CSSPs: Bangladesh Accord: 100% of textile factories shall be enrolled in the accord, with a progress rate above 80%. 2024: 100% of our active textile factories in Bangladesh are enrolled in the accord 2024: The progress rate is 87% for our two top suppliers (96% of sourced value )and 96% for our second supplier (4% of sourced value).”

Annual report 2024A · The company itself

“Remediation of Negative Impacts and Worker Engagement In cases of severe non-compliance, we work collaboratively with suppliers to remedy negative impacts. Common remediation efforts include: • Improving health and safety conditions (e.g., providing adequate protective equipment, enhancing workplace safety protocols). • Ensuring fair wages and working hours (e.g., reducing excessive overtime, ensuring compliance with minimum wage laws).”

Annual report 2024A · The company itself

“It has banned cotton sourcing from the region, aligning with Better Cotton's decision to halt its credentialing system there, reinforcing Kid ASA's commitment to ethical sourcing and human rights protection.”

Annual report 2024A · The company itself

“The International Accord, with a strong local presence in Pakistan and Bangladesh, emphasized that to achieve change, it is crucial that brands take a critical approach to how their practices related to supplier engagement, commercial terms and purchasing practices affect suppliers' ability to secure good working conditions and invest in safe factories.”

Annual report 2024A · The company itself

“At Kid Group, our core values – Commercial Edge, Inspiration, and Dedication – define our culture and guide our actions, not only in customer and supplier interactions but also in our daily collaboration with colleagues. These values are shared across all legal entities within the Group and are actively promoted and reinforced through structured initiatives.”

Annual report 2024A · The company itself

“The Board of Directors (BoD) have implemented a Policy for Responsible Business Conduct (the Policy) to mitigate negative impact and reduce risks. The Policy outlines the company's commitment to ethical practices and sustainability throughout its operations and value chain.”

Annual report 2024A · The company itself

“Since the business model relies on securing access to products that are produced in compliance with our requirements, supplier relationship management plays a crucial role in achieving our targets. We are committed to fostering supplier relationships built on trust and cooperation.”

Annual report 2024A · The company itself

“This risk is closely linked to biodiversity loss driven by factors such as water scarcity, pollution, and temperature fluctuations, all of which affect cotton cultivation which is the most used material in the assortment. The upstream activities can potentially contribute to land-use change, pollution, and climate impacts are anticipated to occur across all time horizons.”

Annual report 2024A · The company itself

“Deforestation Free Supply Chain The Kid Group's ambition is to have a deforestation free supply chain, and our Purchase Agreement and Requirements (PAR) set out requirements to meet our expectations. By doing due diligence of a variety of land-based materials and related extraction processes per region and/or country in our upstream operations, we seek to identify the most salient impacts related to deforestation.”

Annual report 2024A · The company itself

“Better Cotton accounts for over 75% of the Group's cotton sourcing.”

Annual report 2024A · The company itself

“The sourced volume of cotton increased by 18% from 2023 to 2024, but the share of Better Cotton was just decreased by 3.5% Conventional Polyester 2022 10.6% 89.4% 2023 27.4% 72.6% 2024 33.1% 66.9% Down and Feather 2023 1.8% 4.9% 93.2% Recycled (GRS) Downpass RDS Polyester: Polyester has been our second largest fiber category for many years. We see a good progress in increasing the share of recycled polyester and are heading towards our target of 50% recycled polyester in 2025.”

Annual report 2024A · The company itself

“An estimated 60% of the wood and paper are FSC certified, with the goal of 100% by 2025.”

Annual report 2024A · The company itself

“In 2024, a significant addition to this effort is polypropylene, both of which are man-made synthetic fibers. The recycled polyester is currently produced from waste PET bottles, which are melted down and processed into recycled polyester chips.”

Annual report 2024A · The company itself

“Polypropylene waste is collected, shredded, and melted into recycled polypropylene pellets, which are then used primarily for outdoor furniture within the Kid Group. The pellets are melted and molded to create new outdoor furniture pieces, ensuring a more sustainable approach to material use without compromising quality- or safety aspects of the products.”

Annual report 2024A · The company itself

“The Group will source recycled, and less energy intense products to reduce emissions. The Group aim to reduce emissions from fibers with 58,8% by 2030.”

Annual report 2024A · The company itself

“The most significant action related to resource use and circularity has been the increased share of recycled materials and the ongoing transition away from conventional virgin fibers. As outlined in the Group's Greenhouse Gas (GHG) Reduction Roadmap (see page 57), key initiatives include sourcing recycled materials such as polyester and cotton by 2030.”

Annual report 2024A · The company itself

“Since circular economy is a relatively new topic for the Kid Group, we do not have a formalized policy. The plan is to introduce an internal policy for Resource Use and Circularity in 2025.”

Annual report 2024A · The company itself

“In 2024, members of the Audit Committee raised concerns about the company's reliance on virgin and conventional fibers and materials. With evolving environmental and regulatory changes affecting the availability and access to raw materials, this dependency poses a business risk.”

Annual report 2024A · The company itself

“The Group is highly dependent on raw materials such as cotton, polyester, and various other fibers.”

Annual report 2024A · The company itself

“A potential negative impact in the Kid Group's value chain is microplastic pollution, with textiles contributing an estimated 35% of global microplastic emissions. Upstream, polyester – Kid ASA's second most used fiber – releases microplastics during manufacturing, posing health risks to workers and contaminating waterways, soil, and the food chain.”

Annual report 2024A · The company itself

“The sourced volume of cotton increased by 18% from 2023 to 2024, but the share of Better Cotton was just decreased by 3.5% Conventional Polyester 2022 10.6% 89.4% 2023 27.4% 72.6% 2024 33.1% 66.9% Down and Feather 2023 1.8% 4.9% 93.2% Recycled (GRS) Downpass RDS Polyester: Polyester has been our second largest fiber category for many years. We see a good progress in increasing the share of recycled polyester and are heading towards our target of 50% recycled polyester in 2025.”

Annual report 2024A · The company itself

“In 2024, a significant addition to this effort is polypropylene, both of which are man-made synthetic fibers. The recycled polyester is currently produced from waste PET bottles, which are melted down and processed into recycled polyester chips.”

Annual report 2024A · The company itself

“Polypropylene waste is collected, shredded, and melted into recycled polypropylene pellets, which are then used primarily for outdoor furniture within the Kid Group. The pellets are melted and molded to create new outdoor furniture pieces, ensuring a more sustainable approach to material use without compromising quality- or safety aspects of the products.”

Annual report 2024A · The company itself

“With a share of 33% recycled polyester in 2024 – a notable increase from 28% in 2023 – we are firmly on track to meet our 2025 target.”

Annual report 2024A · The company itself

“The most significant action related to resource use and circularity has been the increased share of recycled materials and the ongoing transition away from conventional virgin fibers. As outlined in the Group's Greenhouse Gas (GHG) Reduction Roadmap (see page 57), key initiatives include sourcing recycled materials such as polyester and cotton by 2030.”

Annual report 2024A · The company itself

“Our goal is to achieve a 95% share of recycled polyester by 2030, with an interim milestone of 50% by 2025.”

Annual report 2024A · The company itself

“In 2024, we made a significant breakthrough in recycled polypropylene, our fifth most-used material, increasing its recycled share from 0% in 2023 to 57% in 2024. This transformation was driven by a targeted project focused on the largest product group using polypropylene, combined with close collaboration with suppliers.”

Annual report 2024A · The company itself

“In 2024, members of the Audit Committee raised concerns about the company's reliance on virgin and conventional fibers and materials. With evolving environmental and regulatory changes affecting the availability and access to raw materials, this dependency poses a business risk.”

Annual report 2024A · The company itself

“To achieve this, Kid is depending on well-functioning partnerships with its suppliers, and access to raw materials and goods, manufactured in a cost effective and responsible way.”

Annual report 2024A · The company itself

“The Group is highly dependent on raw materials such as cotton, polyester, and various other fibers.”

Annual report 2024A · The company itself

“A large part of the materials we use come from land-based ecosystems, impacting soil health and requiring water and chemicals to grow. Additionally, with most of our products being textiles, we rely on manufacturing processes that require large volumes of water in the dyeing and finishing, as well as chemicals throughout manufacturing.”

Annual report 2024A · The company itself

“Kid ASA operates within a resource-intensive industry with a supply chain spanning Europe and Asia, making the environmental impact significant. The company remains dependent on virgin materials, with only limited use of recycled materials.”

Annual report 2024A · The company itself

“Better Cotton accounts for over 75% of the Group's cotton sourcing.”

Annual report 2024A · The company itself

“The Kid Group offers a full range of home and interior products, including textiles, curtains, bed linens, furniture, accessories and other interior products.”

Annual report 2024A · The company itself

“Technical products - - - Biological products (ton) 7,313,908 6,065,877 6,201,486 % of Biological products against total weight 53.0% 54.0% 54.0% Recycled mass of products (ton) 1,330,925 733,129 87,141 % of recycled mass against total weight 10.0% 6.5% 0.8% Recycled Cotton: The Kid Group sources several types of preferred cotton, with the largest share coming from Better Cotton, followed by organic and recycled cotton.”

Annual report 2024A · The company itself

“The Policy explicitly states that production and resource use must not contribute to the destruction or degradation of livelihoods for marginalized communities, such as through large-scale land use, water consumption, or exploitation of other critical natural resources.”

Annual report 2024A · The company itself

“E5  RESOURCE USE AND CIRCULAR ECONOMY The Kid Group is a significant user of raw material and other natural resources in its supply chain. The production of raw materials and use of natural resources, a key part of the Group's upstream operations, poses environmental risks, including negative impacts on biodiversity and climate.”

Annual report 2024A · The company itself

“A key mitigating action the Kid Group takes to reduce water consumption upstream is supporting the Better Cotton Initiative. Kid supports Better Cotton to promote more sustainable cotton sourcing with a focus on water efficiency.”

Annual report 2024A · The company itself

“In China's Xinjiang region, which supplies approximately 20% of the world's cotton, the risk of state-imposed forced labor is high, leading to Kid ASA's ban on Xinjiang cotton.”

Annual report 2024A · The company itself

“It has banned cotton sourcing from the region, aligning with Better Cotton's decision to halt its credentialing system there, reinforcing Kid ASA's commitment to ethical sourcing and human rights protection.”

Annual report 2024A · The company itself

“Examples include cotton farming that depletes water, degrades soil, and promotes monocultures, as well as high greenhouse gas emissions. Around 80% of Kid ASA's production is based in China, India, Pakistan and Bangladesh.”

Annual report 2024A · The company itself

“To achieve this, Kid is depending on well-functioning partnerships with its suppliers, and access to raw materials and goods, manufactured in a cost effective and responsible way.”

Annual report 2024A · The company itself

“Technical products - - - Biological products (ton) 7,313,908 6,065,877 6,201,486 % of Biological products against total weight 53.0% 54.0% 54.0% Recycled mass of products (ton) 1,330,925 733,129 87,141 % of recycled mass against total weight 10.0% 6.5% 0.8% Recycled Cotton: The Kid Group sources several types of preferred cotton, with the largest share coming from Better Cotton, followed by organic and recycled cotton.”

Annual report 2024A · The company itself

“The Kid Group offers a full range of home and interior products, including textiles, curtains, bed linens, furniture, accessories and other interior products.”

Annual report 2024A · The company itself

“The company's climate emissions calculation shows that 97% of all emissions come from the products purchased from suppliers and sold to customers. Note that these emissions include tier 1 to 4, so both raw material extraction and the following production processes to manufacture the final goods.”

Annual report 2024A · The company itself

“As one of the first retailers in the home textile and interior sector with a validated Science Based Target, we are dedicated to reducing our greenhouse gas emissions by 50% between 2020 and 2030, with the ultimate goal of achieving net-zero emissions by 2045.”

Annual report 2024A · The company itself

“Kid Group has during 2024 decided to pilot and test markets outside the Nordic region and Baltics under the Hemtex brand. Accordingly, a German-language website will be launched with local and limited marketing investments for the market in Germany. Additionally, an English-language site targeting other European countries will be launched with no specific marketing investments. The pilot is expected to find place during H2-25.”

Annual report 2024A · The company itself

“Kid ASA (listed on the Oslo Stock Exchange under the ticker symbol KID) offers a full range of home and interior products through Kid Interior in Norway with 158 stores, and under the Hemtex brand in Sweden, Finland and Estonia with 119 stores as well as 11 franchise stores.”

Annual report 2024A · The company itself

“Our suppliers in Pakistan and Bangladesh are mainly working vertically, with tier 1-3 integrated in the same company, leading to a closer relationship and overview even further up the supply chain in these countries.”

Annual report 2024A · The company itself

“The Group is expected to be resilient regarding more unstable geopolitical situation worldwide, however effects of high tarrifs and reduced consumer confidence in economic growth, will potentially effect our growth and turnover.”

Annual report 2024A · The company itself

“Kid's business strategy is to provide an attractive value proposition to customers through an inspirational assortment, and quality Kid- and Hemtex-branded products offered at affordable prices both online and through stores located in major population centers.”

Annual report 2024A · The company itself

“In 2024, the Group managed approximately 10,000 SKUs.”

Annual report 2024A · The company itself

“Kid ASA (listed on the Oslo Stock Exchange under the ticker symbol KID) offers a full range of home and interior products through Kid Interior in Norway with 158 stores, and under the Hemtex brand in Sweden, Finland and Estonia with 119 stores as well as 11 franchise stores.”

Annual report 2024A · The company itself

“An estimated 60% of the wood and paper are FSC certified, with the goal of 100% by 2025.”

Annual report 2024A · The company itself

“Wood and Paper: The use of wood has significantly increased in the last three years, since Kid started selling big furniture.”

Annual report 2024A · The company itself

“The establishment of Extended stores is progressing, with nine stores currently in Norway, five more signed, and a total ambition of 15 stores in Norway and three in Sweden. The timing of these openings will depend on external rental opportunities.”

Annual report 2024A · The company itself

“On a constant currency basis, online revenues grew by 10.4% compared to last year, reaching MNOK 464.0 in 2024, which corresponds to an online share of 12.3%. Additionally, Click & Collect contributed MNOK 223.9 to store revenues. In total, 18.2% of total revenues thus stems from our online platform and omnichannel approach, which will remain an important growth driver.”

Annual report 2024A · The company itself

“Transport CCM 6.5 Transport by motorbikes, passenger cars and light commercial vehicles Several of our leased cars are electric vehicles which is considered to have a positive impact / substantial contribution to the environmental objectives climate change mitigation (no use of fossil fuel).”

Annual report 2024A · The company itself

“All wood and paper products within the assortment shall be certified to FSC or similar certification schemes by the end of 2025. With the implementation of a new ERP system in 2025 and based on the requirements in EU's Regulation on Deforestation-free Products, we will strengthen the actual data and significantly improve the due diligence process for wood and paper.”

Annual report 2024A · The company itself

“A key target within the roadmap is for 5% of total revenue to come from “alternative business models” by 2030. In 2024 the Business Development department has explored alternative business models to enhance our offerings to our customers.”

Annual report 2024A · The company itself

“Upstream: Processes such as raw material production and chemical manufacturing in textile production involve significant water consumption, exacerbating water scarcity concerns, with activities like cotton cultivation relying heavily on irrigation. Water discharges from these processes, along with water-intensive stages like treatment and dyeing, contribute to pollution and ecosystem degradation, highlighting the extensive water usage throughout textile manufacturing.”

Annual report 2024A · The company itself

“Based on dialogues with suppliers during factory visits we have learned that water discharges in production countries are increasingly regulated by authorities. While risks of pollution from textile dyeing mills (tier 2) persist due to potentially inadequate wastewater treatment, stricter regulations and enhanced oversight are driving improvements in water management and reducing negative impact on local communities.”

Annual report 2024A · The company itself

“The Policy explicitly states that production and resource use must not contribute to the destruction or degradation of livelihoods for marginalized communities, such as through large-scale land use, water consumption, or exploitation of other critical natural resources.”

Annual report 2024A · The company itself

“A large part of the materials we use come from land-based ecosystems, impacting soil health and requiring water and chemicals to grow. Additionally, with most of our products being textiles, we rely on manufacturing processes that require large volumes of water in the dyeing and finishing, as well as chemicals throughout manufacturing.”

Annual report 2024A · The company itself

“For the farming and cultivation of cotton, the Group's largest fiber category with its 38% share of raw material used, the freshwater impact and dependency are the highest environmental concerns . Access to water, and to use it responsibly is of great importance when growing cotton, now and in the future.”

Annual report 2024A · The company itself

“E5  RESOURCE USE AND CIRCULAR ECONOMY The Kid Group is a significant user of raw material and other natural resources in its supply chain. The production of raw materials and use of natural resources, a key part of the Group's upstream operations, poses environmental risks, including negative impacts on biodiversity and climate.”

Annual report 2024A · The company itself

“The Kid Group operates within a complex upstream value chain, encompassing a wide range of activities from raw material processing to production and finishing. Recognizing the environmental impacts associated with these outsourced processes, pollution has been identified as a material topic with potential negative impact in the company's double materiality assessment.”

Annual report 2024A · The company itself

“A large part of the materials we use come from land-based ecosystems, impacting soil health and requiring water and chemicals to grow. Additionally, with most of our products being textiles, we rely on manufacturing processes that require large volumes of water in the dyeing and finishing, as well as chemicals throughout manufacturing.”

Annual report 2024A · The company itself

“A potential negative impact in the Kid Group's upstream value chain is the presence of substances of concern (SoC) in textile production, particularly during fiber extrusion, dyeing, and printing. As one of the most chemically intensive industries, textile manufacturing relies on various chemicals that may persist in the environment.”

Annual report 2024A · The company itself

“Climate change poses a threat to the production of natural materials like cotton, potentially reducing supply and driving up prices. As raw material costs rise, the affordability of lower-priced products within Kid Group's assortment could be affected, leading to long-term financial risks related to material availability and potential customer loss.”

Annual report 2024A · The company itself

“The potential consequences of a decreased or unstable supply of cotton fibers due to climate change could significantly impact the Kid Group Topic Sub-topic Location in value chain IRO* Positive/ Negative Impact Description of material impacts, risks and opportunities identified in our materiality assessment Actual/ Potential Expected time horizon Climate Change Climate change adaptation Upstream, own operations and downstream I+R Negative Impact on properties, land or local communities in own operations and in the value chain due to the failure to adapt to climate change. Risk that climate change leads to several effects taking place at the same time, such as extreme heat waves which forces factories to temporarily close, drought which affects cotton prices and less material accessible overall.”

Annual report 2024A · The company itself

“This risk is closely linked to biodiversity loss driven by factors such as water scarcity, pollution, and temperature fluctuations, all of which affect cotton cultivation which is the most used material in the assortment. The upstream activities can potentially contribute to land-use change, pollution, and climate impacts are anticipated to occur across all time horizons.”

Annual report 2024A · The company itself

“The potential consequences of a decreased or unstable supply of cotton fibers due to climate change could significantly impact the Kid Group Topic Sub-topic Location in value chain IRO* Positive/ Negative Impact Description of material impacts, risks and opportunities identified in our materiality assessment Actual/ Potential Expected time horizon Climate Change Climate change adaptation Upstream, own operations and downstream I+R Negative Impact on properties, land or local communities in own operations and in the value chain due to the failure to adapt to climate change. Risk that climate change leads to several effects taking place at the same time, such as extreme heat waves which forces factories to temporarily close, drought which affects cotton prices and less material accessible overall.”

Annual report 2024A · The company itself

“Cotton, which makes up approximately 40% of Kid Group's total material weight, is particularly vulnerable to climate change. Maintaining global temperatures below 1.5°C would support stable cotton production, ensuring long-term sourcing viability.”

Annual report 2024A · The company itself

“Kid Group's operations significantly impact communities near raw material production and manufacturing sites in the upstream value chain, exposing them to economic, social, and cultural risks.”

Annual report 2024A · The company itself

“While the textile industry can bring economic benefits by generating employment and fostering industrial growth, Kid Group does not directly invest in production facilities or local community development in these regions. Therefore, its activities do not generate a material positive impact in this regard.”

Annual report 2024A · The company itself

“Kid's operations are governed from the headquarters in Norway, with no local offices in the production countries.”

Annual report 2024A · The company itself

“Kid Group sources the majority of its goods from Asia, which are then transported to Norway and Sweden before being distributed to stores across Norway, Sweden, Finland, and Estonia.”

Annual report 2024A · The company itself

“Examples include cotton farming that depletes water, degrades soil, and promotes monocultures, as well as high greenhouse gas emissions. Around 80% of Kid ASA's production is based in China, India, Pakistan and Bangladesh.”

Annual report 2024A · The company itself

“However, in the upstream value chain – primarily based in the Asia-Pacific – the Group does not own any factories or production facilities.”

Annual report 2024A · The company itself

“Our suppliers in Pakistan and Bangladesh are mainly working vertically, with tier 1-3 integrated in the same company, leading to a closer relationship and overview even further up the supply chain in these countries.”

Annual report 2024A · The company itself

“In China and India, our two largest sourcing countries, the suppliers are usually split up in individual companies for each production process (horizontal production).”

Annual report 2024A · The company itself

“Our suppliers in Pakistan and Bangladesh are mainly working vertically, with tier 1-3 integrated in the same company, leading to a closer relationship and overview even further up the supply chain in these countries. In China and India, our two largest sourcing countries, the suppliers are usually split up in individual companies for each production process (horizontal production). This leads to a more challenging due diligence work for these countries.”

Annual report 2024A · The company itself

“The Group is expected to be resilient regarding more unstable geopolitical situation worldwide, however effects of high tarrifs and reduced consumer confidence in economic growth, will potentially effect our growth and turnover.”

Annual report 2024A · The company itself

“Kid ASA (listed on the Oslo Stock Exchange under the ticker symbol KID) offers a full range of home and interior products through Kid Interior in Norway with 158 stores, and under the Hemtex brand in Sweden, Finland and Estonia with 119 stores as well as 11 franchise stores.”

Annual report 2024A · The company itself

“Our suppliers in Pakistan and Bangladesh are mainly working vertically, with tier 1-3 integrated in the same company, leading to a closer relationship and overview even further up the supply chain in these countries.”

Annual report 2024A · The company itself