SOLAR A/S

“Material impacts and risks related to own workforce Health, safety, and work environment Solar’s Health, Safety, and Work Environment Policy, together with our Cardinal Rules, forms the foundation of a safe and responsible working culture. All employees are expected to be familiar with these principles, which guide our efforts to prevent workplace injuries and occupational illness.”

Annual report 2025A · The company itself

“We expect the negative impact from salary inflation to continue, in part due to carry-over effects and in part due to collective labour agreements.”

Annual report 2025A · The company itself

“Our value chain spans both upstream and downstream operations, including manufacturing, warehousing, transport, and installation. The most significant negative impacts occur upstream, where workers may face physical strain, long hours, and inconsistent labour standards, especially in manufacturing and logistics.”

Annual report 2025A · The company itself

“We strive to create safe and inclusive workplaces with fair and attractive employment conditions that support the well-being and development of all employees. Our goal is to attract, motivate, and retain a diverse talent pipeline.”

Annual report 2025A · The company itself

“Solar is committed to equal treatment and opportunity for all employees, regardless of gender or background. Inclusion and career development are key areas of impact within our workforce, especially in technical, managerial, and specialist roles.”

Annual report 2025A · The company itself

“Job postings reflect our commitment to diversity, and shortlists for managerial roles must include at least one candidate from an underrepresented gender. We aim to reach 40% representation at entry level by 2026.”

Annual report 2025A · The company itself

“Risk related to internal system failures, continuity gaps, or physical disruptions (e.g., power outages, fire, flooding) that impact Solar’s ability to maintain critical operations and recover effectively.”

Annual report 2025A · The company itself

“We continued the development of digital customer integration services, thus offering customers improved integration options when doing business with Solar.”

Annual report 2025A · The company itself

“We are committed to our climate change transition plan, working to reduce CO e emissions in our own operations and across our entire value chain. ● Our key actions include shifting to renewable electricity, replacing gas boilers with heat pumps, and transitioning to an EV fleet. ● We are moving from spend-based emission calculations to detailed product-level data, giving our customers greater transparency and control. Around 60% of our product portfolio includes Global Warming Potential (CO e) metrics, helping customers make informed choices and actively reduce carbon footprints across their value chains. ● We strive to become carbon neutral in our own operations while supporting our customers on their decarbonisation journey.”

Annual report 2025A · The company itself

“As a sourcing and services company, we play a key role in enabling the green transition by helping customers and suppliers reduce their climate footprint.”

Annual report 2025A · The company itself

“Our vision, supported by our strategic ambition towards 2030, remains clear: to become net-zero in our own operations, phase out the use of fossil fuels, convert to 100% renewable electricity, and reduce emissions in our value chain by 25%.”

Annual report 2025A · The company itself

“These efforts support decarbonisation by enabling downstream value chain transformation and contribute to the avoidance of emissions through the implementation of renewable energy solutions. The sale of products and solutions that enhance the transition to renewable energy sources has been identified as an entity-specific opportunity under the topic E1: Climate Change.”

Annual report 2025A · The company itself

“The effectiveness of our contribution to the green transition is pursued through our Group strategy and is aligned with our commercial priorities for 2024–2026 and measured through a target linked to the share of revenue (%) generated from products and solutions that support renewable energy adoption (see page 12 in the Management Review).”

Annual report 2025A · The company itself

“We maximise the growth potential in climate and energy solutions, such as heat pumps, solar panels, EV charging and ventilation.”

Annual report 2025A · The company itself

“Irrespective of their size, they value both our expertise and our extensive range, which covers electrical, heating & plumbing installations as well as climate & energy products.”

Annual report 2025A · The company itself

“Sales of renewable energy products and solutions ● We continue to promote and sell products and solutions to impact the transition to a low-carbon society in general.”

Annual report 2025A · The company itself

“To support our scope 3 reductions, we have initiated the following actions: ● Solar Industrial Solutions has been established to offer turnkey climate and energy solutions. By installing heat pumps, solar panel solutions, and other energy-efficient products, our customers can decarbonise their own operations.”

Annual report 2025A · The company itself

“Sustainability statements Solar aims to accelerate the green transition by offering products such as heat pumps, solar panel solutions, EV chargers, and ventilation systems that help to decarbonise the market by replacing gas and oil boilers with renewable energy solutions.”

Annual report 2025A · The company itself

“As a sourcing and services company, we play a key role in enabling the green transition by helping customers and suppliers reduce their climate footprint.”

Annual report 2025A · The company itself

“These efforts support decarbonisation by enabling downstream value chain transformation and contribute to the avoidance of emissions through the implementation of renewable energy solutions. The sale of products and solutions that enhance the transition to renewable energy sources has been identified as an entity-specific opportunity under the topic E1: Climate Change.”

Annual report 2025A · The company itself

“The effectiveness of our contribution to the green transition is pursued through our Group strategy and is aligned with our commercial priorities for 2024–2026 and measured through a target linked to the share of revenue (%) generated from products and solutions that support renewable energy adoption (see page 12 in the Management Review).”

Annual report 2025A · The company itself

“We maximise the growth potential in climate and energy solutions, such as heat pumps, solar panels, EV charging and ventilation.”

Annual report 2025A · The company itself

“Solar Polaris exceeded expectations, positively impacting organic growth at group level by 1.0 percentage points.”

Annual report 2025A · The company itself

“Organic growth was positively impacted by Solar Polaris’ deliveries to a major solar park project.”

Annual report 2025A · The company itself

“Sales of renewable energy products and solutions ● We continue to promote and sell products and solutions to impact the transition to a low-carbon society in general.”

Annual report 2025A · The company itself

“To support our scope 3 reductions, we have initiated the following actions: ● Solar Industrial Solutions has been established to offer turnkey climate and energy solutions. By installing heat pumps, solar panel solutions, and other energy-efficient products, our customers can decarbonise their own operations.”

Annual report 2025A · The company itself

“Sustainability statements Solar aims to accelerate the green transition by offering products such as heat pumps, solar panel solutions, EV chargers, and ventilation systems that help to decarbonise the market by replacing gas and oil boilers with renewable energy solutions.”

Annual report 2025A · The company itself

“With 99.5% of our suppliers based in Europe and rigorous sustainability standards embedded in our sourcing practices, we continue to lead responsibly and support the green transition.”

Annual report 2025A · The company itself

“Management’s review Markets and customers Our sales are mainly distributed across Denmark (33%), the Netherlands (23%), Sweden (17%), Norway (15%) and Poland (3%).”

Annual report 2025A · The company itself

“Our 2,995 employees are based in Denmark (786), the Netherlands (470), Sweden (524), Norway (509), Poland (361) and others (345).”

Annual report 2025A · The company itself

“With more than 4,000 direct material suppliers mainly in low-risk markets and with over 99% of tier-one suppliers based in Europe we recognise the importance of managing risks across our value chain.”

Annual report 2025A · The company itself

“Although the greatest exposure lies upstream, it remains limited because the majority of our business across the value chain takes place in Europe, and in highly regulated markets with a low risk of corruption.”

Annual report 2025A · The company itself

“For Trade, these include storage solutions, logistics and shelf cleaning for DIY shops.”

Annual report 2025A · The company itself

“Today’s installers require more than just a product Our installation customers range from sole installation contractors to large installation companies. Irrespective of their size, they value both our expertise and our extensive range, which covers electrical, heating & plumbing installations as well as climate & energy products.”

Annual report 2025A · The company itself

“(Data shown in brackets relate to 2024) Management’s review Results HOTEL Dedicated local teams support Trade customers with specialised services Our trade customers’ requirements and buying preferences differ from those of our Installation and Industry segments.”

Annual report 2025A · The company itself

“We maximise the growth potential in climate and energy solutions, such as heat pumps, solar panels, EV charging and ventilation.”

Annual report 2025A · The company itself

“Solar Industrial Solutions has been rolled out across all markets to accelerate industrial heat pump sales, with a fully integrated vertical structure in each country — locally anchored and supported by a central setup. ● Introduced a new metric as an alternative to Return on Investment, which measures the investment required per ton of CO e displaced, highlighting the cost for our customers of removing one ton of CO e. ● Capitalised on the elimination of the electricity tax in Denmark to drive heat pump sales, while also pursuing opportunities to increase share of wallet through complementary solar panel and battery solutions. ● Launched a new Solar Light website that provides CO e data for each product.”

Annual report 2025A · The company itself

“Irrespective of their size, they value both our expertise and our extensive range, which covers electrical, heating & plumbing installations as well as climate & energy products.”

Annual report 2025A · The company itself

“We combine excellent product sourcing, superior distribution, and value-adding services to support professionals and businesses in the electrical, heating & plumbing, and industrial sectors across five key European markets.”

Annual report 2025A · The company itself

“At the same time, we continued to invest in digital transformation, upgrading platforms to deliver a seamless, future-ready customer experience.”

Annual report 2025A · The company itself

“We are making major investments in a new omni-channel e-commerce platform with a modern web shop and mobile app as well as new digital services which will offer customers easier, personalised digital experiences. The project delivered the first prototype at the end of 2025, and the first customer segments will be migrated during H1 2026.”

Annual report 2025A · The company itself

“We maximise the growth potential in climate and energy solutions, such as heat pumps, solar panels, EV charging and ventilation.”

Annual report 2025A · The company itself

“Sustainability statements Solar aims to accelerate the green transition by offering products such as heat pumps, solar panel solutions, EV chargers, and ventilation systems that help to decarbonise the market by replacing gas and oil boilers with renewable energy solutions.”

Annual report 2025A · The company itself

“Management System, we screen for potential risks and ensure compliance with national and internal regulations. By engaging both our own operations and upstream suppliers, we aim to drive change and support the green transition.”

Annual report 2025A · The company itself

“Driving the green transition As a driver of the green transition we are supporting our customers in achieving their CO e-emission reduction targets through our Climate & Energy products, which generate revenue exceeding DKK 1.2bn.”

Annual report 2025A · The company itself

“We combine excellent product sourcing, superior distribution, and value-adding services to support professionals and businesses in the electrical, heating & plumbing, and industrial sectors across five key European markets.”

Annual report 2025A · The company itself

“Industry revenue amounted to DKK 4,171m (DKK 4,336m). This corresponds to overall adjusted organic growth of around -3.6% (-4.0%).”

Annual report 2025A · The company itself

“Fuel consumption from coal and coal products MWh 0 0 Fuel consumption from crude oil and petroleum products MWh 0 0 Fuel consumption from natural gas MWh 2,433 2,898 Fuel consumption from other fossil sources MWh 8,449 10,279 Consumption of purchased or acquired electricity, heat, steam and cooling from fossil sources MWh 1,353 1,682 Total fossil energy consumption (calculated as the sum of line 1 to 5) MWh 12,235 14,859 Share of fossil sources in total energy consumption % 46 51 Consumption from nuclear sources MWh 0 0 Share of consumption from nuclear sources in total energy consumption % 0 0 Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.)”

Annual report 2025A · The company itself

“Our vision, supported by our strategic ambition towards 2030, remains clear: to become net-zero in our own operations, phase out the use of fossil fuels, convert to 100% renewable electricity, and reduce emissions in our value chain by 25%.”

Annual report 2025A · The company itself

“Revenue is divided as follows: electrical products (75%), heating and plumbing products (15%), and climate & energy products (10%).”

Annual report 2025A · The company itself

“The products we sell have various expected lifetimes, with many products still not designed with circularity (durability, repair, reuse, disassembly, recycling) in mind, generating general waste and electronic waste that potentially cause indirect or direct harm to nature.”

Annual report 2025A · The company itself

“We are committed to our climate change transition plan, working to reduce CO e emissions in our own operations and across our entire value chain. ● Our key actions include shifting to renewable electricity, replacing gas boilers with heat pumps, and transitioning to an EV fleet. ● We are moving from spend-based emission calculations to detailed product-level data, giving our customers greater transparency and control.”

Annual report 2025A · The company itself

“We maximise the growth potential in climate and energy solutions, such as heat pumps, solar panels, EV charging and ventilation.”

Annual report 2025A · The company itself

“Customer Deep is a strategy-enabling initiative that uses advanced customer insight and AI-based microsegmentation to identify up- and cross-selling opportunities, with the aim of increasing share-of-wallet and optimising our cost-to-serve through further digitalisation of customer interactions. Investments in AI- and data platforms enable us to commercialise our customer insight, e.g. by identifying high potential Climate & Energy prospects to focus our sales efforts and improve win rates.”

Annual report 2025A · The company itself

“The construction of our state-of-the-art logistics centre in Kumla, Sweden, is progressing well and will be fully operational in 2026. This facility consolidates our operations into one automated setup, improving service levels and supporting sustainability goals. It represents a significant leap forward in automation and efficiency, reduces complexity, lowers cost to serve and enable faster, more reliable deliveries.”

Annual report 2025A · The company itself

“Driving the green transition As a driver of the green transition we are supporting our customers in achieving their CO e-emission reduction targets through our Climate & Energy products, which generate revenue exceeding DKK 1.2bn.”

Annual report 2025A · The company itself

“The products we sell have various expected lifetimes, with many products still not designed with circularity (durability, repair, reuse, disassembly, recycling) in mind, generating general waste and electronic waste that potentially cause indirect or direct harm to nature.”

Annual report 2025A · The company itself

“We supplement our efforts with afforestation projects in Denmark and Latvia to address any residual emissions and ensure lasting carbon removal.”

Annual report 2025A · The company itself

“Increased conversion rates on our digital platforms by introducing more digital tools (Digital sales now represent 66% of total order lines). ● Established more strategic partnerships with our suppliers. ● Launched a feature programme for heat pumps, offering customers a more affordable and flexible alternative to fossil fuel solutions. ● Targeted single-product customers to increase their share of wallet by expanding engagement across our Solar portfolio, including electrical components, heating and plumbing and climate & energy products. ● Led by Solar Danmark, we have increased our expertise across markets and strengthened commercial capabilities through strategic hiring in key roles across our four main markets — enabling closer decision-maker engagement and continued growth. ● Introduced a new add-on service for solar panel installations, where we handle the full technical installation of the solar panels, leaving customers only responsible for connecting the completed installation to the electricity grid.”

Annual report 2025A · The company itself

“They also support our ESG commitments by optimising resource use and reducing emissions.”

Annual report 2025A · The company itself

“We expanded the climate information available to our customers by adding Global Warming Potential (CO e) data to a significant share of our assortment. More than 60% of our products are now supported by generic CO e values, enabling more informed and climate-conscious choices.”

Annual report 2025A · The company itself

“Our vision, supported by our strategic ambition towards 2030, remains clear: to become net-zero in our own operations, phase out the use of fossil fuels, convert to 100% renewable electricity, and reduce emissions in our value chain by 25%.”

Annual report 2025A · The company itself

“Geopolitical uncertainty and slower-than-expected market recovery impacted demand, particularly in the Industry segment, and our EBITDA adjusted for non-recurring items landed sligthly below our latest guidance.”

Annual report 2025A · The company itself

“The shift to a low-carbon economy offers growth opportunities within Solar’s climate and energy segment but also challenges, especially in decarbonising complex supply chains.”

Annual report 2025A · The company itself

“Risk of cyberattacks (e.g., ransomware), insider threats, or unauthorised access to sensitive systems and data, all of which exploit vulnerabilities in Solar’s digital environment or human behaviour.”

Annual report 2025A · The company itself

“Critical suppliers are subject to annual reviews and must provide independent attestations of their security posture, such as ISO 27001 certications.”

Annual report 2025A · The company itself

“Geopolitical uncertainty and slower-than-expected market recovery impacted demand, particularly in the Industry segment, and our EBITDA adjusted for non-recurring items landed sligthly below our latest guidance.”

Annual report 2025A · The company itself

“Risk of continued consolidation in the market and growing importance of customer buying groups giving rise to increased competition and/or price pressure with a negative impact on Solar’s business.”

Annual report 2025A · The company itself

“Risk of ineffective integration of Sonepar Norge, potentially undermining the strategic value of the acquisition.”

Annual report 2025A · The company itself

“We partner with suppliers that produce high-quality and sought-after products for our customers, to which we add delivery and logistics services, inventory management, technical support, training etc.”

Annual report 2025A · The company itself

“Solar relies on strong partnerships across our value chain to deliver products, services, and transport.”

Annual report 2025A · The company itself

“In setting our targets, we have considered future developments such as: ● Changes in sales volumes and product mix ● Shifts in customer preferences towards low-carbon solutions ● Regulatory developments ● Technological advancements in heating systems and energy efficiency These factors are expected to influence both our emissions and our ability to reduce them over time.”

Annual report 2025A · The company itself

“Our outlook for 2026 reflects a minor continued decline in gross profit margin, primarily driven by ongoing pressure on sales prices, combined with less cyclical inventory gains.”

Annual report 2025A · The company itself

“Recent macroeconomic adversities, ongoing tariff-related conicts as well as dynamic customer requirements may continue to impact markets, shift demand, and affect stock availability.”

Annual report 2025A · The company itself

“Ressource inflows/use IRO description How we respond Upstream Operations Downstream Although relatively small, we have a dependency on virgin resources in our packaging and distribution materials. Moreover, products in our supply chain are likely to be produced using virgin materials that are extracted from mines or natural areas.”

Annual report 2025A · The company itself

“We strive to source 100% certified recycled cardboard packaging materials for customer use. ● We are constantly on the outlook for new processes and projects to create a positive impact on the resource and circular economy within our value chain. ● We are currently in the process of implementing the Packaging and Packaging Waste Regulation (PPWR).”

Annual report 2025A · The company itself

“Ressource inflows/use IRO description How we respond Upstream Operations Downstream Although relatively small, we have a dependency on virgin resources in our packaging and distribution materials. Moreover, products in our supply chain are likely to be produced using virgin materials that are extracted from mines or natural areas.”

Annual report 2025A · The company itself

“We partner with suppliers that produce high-quality and sought-after products for our customers, to which we add delivery and logistics services, inventory management, technical support, training etc.”

Annual report 2025A · The company itself

“Risk of challenging business conditions or a change to industry trends caused by the effects of an economic downturn and geopolitical trade tensions.”

Annual report 2025A · The company itself

“Management’s review Markets and customers Our sales are mainly distributed across Denmark (33%), the Netherlands (23%), Sweden (17%), Norway (15%) and Poland (3%).”

Annual report 2025A · The company itself

“Our 2,995 employees are based in Denmark (786), the Netherlands (470), Sweden (524), Norway (509), Poland (361) and others (345).”

Annual report 2025A · The company itself

“Solar Danmark and Solar Polska posted positive growth while negative growth was seen in all other main markets.”

Annual report 2025A · The company itself

“Solar Norge, Solar Sverige and Solar Polska posted solid growth while other main markets and MAG45 posted negative growth.”

Annual report 2025A · The company itself

“Management’s review Markets and customers Our sales are mainly distributed across Denmark (33%), the Netherlands (23%), Sweden (17%), Norway (15%) and Poland (3%).”

Annual report 2025A · The company itself

“Our 2,995 employees are based in Denmark (786), the Netherlands (470), Sweden (524), Norway (509), Poland (361) and others (345).”

Annual report 2025A · The company itself

“Solar Danmark and Solar Polska posted positive growth while negative growth was seen in all other main markets.”

Annual report 2025A · The company itself

“Our long-term ambition is to cover our entire spend, which is why we continue to assess outstanding and new suppliers based on location and industry before onboarding them. ● We closely monitor supplier performance and implement corrective action plans where necessary. ● We conduct on-site audits of selected suppliers categorised as high-risk, based on a defined set of criteria, including compliance with human and labour rights. ● We source products that meet the latest standards from suppliers who respect human and labour rights. ● By the end of 2025, we will have exceeded our 2026 target of 25% women in senior management.”

Annual report 2025A · The company itself