Basis for preparation

General basis for preparation (BP-1)

The sustainability statement has been prepared in accordance with the European Sustainability Reporting Standards (ESRS, EU 2023/2772) as incorporated into Swedish law. The reporting meets the requirements of Sweden’s legislation on sustainability reporting as per Chapter 6, Section 11 of the Annual Accounts Act.

Greenhouse gas emissions (GHG scopes 1-3) are reported based on the Greenhouse Gas Protocol issued by World Resources Institute (WRI) and the World Business Council for Sustainable Development.

Epiroc is a signatory to the UN Global Compact. This report discloses performance in relation to the UN Global Compact’s ten principles. The information is also made available on UN Global Compact’s website, see www.unglobalcompact.org/what-is-gc/participants.

Forward-looking statements

Any forward-looking statements, both textual and numerical, are subject to uncertainties that are difficult to predict and often beyond Epiroc’s control.

Consolidation

The sustainability statement has been prepared on a consolidated basis, in line with the Group’s consolidated financial statement, see Note 1. For own operations, the entities in scope are companies under Epiroc’s operational control, which are those that Epiroc AB, as the ultimate parent company, either directly or indirectly owns. The report is prepared for the period 1 January 2025 to 31 December 2025.

The report comprises pages 79-158.

Upstream and downstream value chain

The sustainability statement covers value chain information relating to Epiroc’s direct and indirect business relationships in the upstream and downstream value chain. The entire value chain was considered during the impacts, risks and opportunities (IROs) assessment, which is outlined in the section Material impacts, risks and opportunities. For more information on Epiroc’s value chain see Strategy and business model. 

Phased-in provisions

Epiroc has selected to apply phased-in provisions in line with ESRS 1 Appendix C (“List of phased-in disclosures requirements”) for the following disclosure requirements: 

• ESRS 2-SBM-1-40-(c) and ESRS 2-SBM-1-41
• ESRS 2 SBM-3-48-(e)
• ESRS E1-9, ESRS E2-6, ESRS E5-6
• ESRS S1-7
• ESRS S1-11
• ESRS S1-13
• ESRS S1-14 on data points on cases of work-related ill-health and on number of days lost to injuries, accidents, fatalities and work-related ill health and on non-employees
• ESRS S1-15

Disclosures in relation to specific circumstances (BP-2)

Time horizons

In preparing its sustainability statement Epiroc has applied the forward-looking time horizons as defined in ESRS 1. The time horizons considered were short-term (within the financial year), medium-term (1-5 years), and long-term (beyond 5 years).

Sources of estimation and outcome uncertainty (including value chain estimation)

The consolidated environmental data presented in E1 and E5 of this report comprises both directly reported and estimated figures. Approximately 87% of our total workforce is employed in entities that regularly submit data through our consolidation system. Entities not required to report firsthand data are generally small—often consisting of only a few employees—and/or primarily engaged in administrative functions. For these entities, environmental data is estimated. Wherever estimates are used, this is clearly indicated in the relevant sections of the report. 

To ensure comprehensive environmental reporting in accordance with ESRS requirements, Epiroc applies a structured estimation methodology for full coverage of entities not included in reporting scope. The estimated proportion of data relates primarily to administrative entities and smaller customer centers, which generally have a lower environmental impact due to the nature of their operations. All entities are grouped by operational type (e.g., product company, customer center, distribution center, etc.). To improve the accuracy of the calculated estimates for entities not included in reporting scope, all entities have been further divided into more detailed subtypes based on the key assumption that similar entities have similar impacts. The average environmental impact per full-time equivalent (FTE) is calculated per operational and subtype for reporting units. The average impact is used to estimate the impact from non-reporting entities, based on their number of FTEs. The estimation process is updated annually based on the latest available data. For the 2024 estimations, calculations were based on data as of December 2024. For the 2025 annual report, new calculations were performed using December 2025 data. Epiroc aims to increase the reporting scope over time. The methodology for estimations is reviewed annually to align with evolving reporting standards and organizational changes.

Calculation of Scope 3 GHG emissions is based on a combination of primary and secondary sources and relies on emission factors from sources such as the official UK Greenhouse Gas conversion factors, and on industry-average data which has inherent measurement uncertainty as these are generalized estimates rather than precise, source-specific values. To ensure comprehensive scope 3 category 1 data presented in E1 of this report, a structured estimations methodology based on spend has been used for full coverage of supplier emissions not included in reporting scope. This is further described in ESRS E1.

The disclosure on material inflows in ESRS E5 is reported for the first time and is subject to higher measurement uncertainty. Due to the manual data collection and quality assurance process for steel procurement which requires significant time and resources, the data reported is based on total steel procurement for 2024. In addition, the steel data includes a relatively high level of estimates which further increases the uncertainty. Epiroc aims to improve the quality of data. 

More details on accounting policies and assumptions can be found in connection to disclosed metrics in the sustainability statement.

Changes in preparation or presentation of sustainability information

This is the first year of reporting in accordance with the ESRS standards. Comparative information in previous reports was inspired by the ESRS standards but based on Global Reporting Initiative (GRI). To align with the requirements in the ESRS, the scope of reported environmental data has been increased to cover the same scope as financial data by using estimates. To provide comparable information, historical CO₂e emissions data has been adjusted in accordance with the methodology described above and base year data has been restated. This is further described in ESRS E1.

No material errors were identified in the previous reporting period. 

Incorporation by reference

Epiroc incorporates certain information by reference to another section of the administration or corporate governance report to enhance the readability of the sustainability statement. The table below provides a list of the disclosure requirements which are incorporated by reference.