TOYA_ESG_report_2023-12-31

TOYA GROUP 2023 SUSTAINABILITY REPORT

2. Relations with stakeholders

Customers

Local communities

Supply chain

3. Environment

Climate and environmental education

Circular economy

4. Taxonomy

KPI Turnover

KPI Capex

KPI Opex

5. People

Employees

Health and safety

Education and development

Equality and diversity

6. About the Report

Significance definition process

TABLE OF CONTENTS

Letter from the Management Board

1. TOYA Group

About the TOYA Group

Management

Anti-corruption activities

The following

designations are

applied in the

report:

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2-1

GRI (Global Reporting

Initiative) indicator numbers

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

PRESIDENT

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2-22

Dear All,

Here is your first TOYA GROUP ESG report.

However, this does not mean that we have

previously been unfamiliar with social, environmental

and organisational responsibility issues. For years,

guided by our values and beliefs, we have been

engaging in smaller and larger initiatives that make

us a responsible organisation.

We are aware of the changes in social and

legislative expectations that are associated with the

ESG requirements. We monitor them closely within

the company and welcome them with

appreciation. Some of them are part of our existing

practices, while we are intensively preparing our

organisation to implement others.

In the report, you will find basic data on our

operations, but more importantly, information on our

practices, policies and procedures that make the

TOYA GROUP a sustainable company. We provide

stable, modern and engaging workplaces, oppose

any form of discrimination and respect human rights.

We act transparently and systemically prevent

corruption and conflicts of interests. We are also

reducing our adverse impact on the environment

within the scope of our activities, as exemplified by

the practice related to the circular economy

outlined in the report.

I would like to emphasise that the topics selected for

the report are a collection of the most important

sustainability topics identified by the key

stakeholders. At this point, I would like to thank all the

companies, individuals and institutions for

participating in the significance survey – we have

used the responses, tips and recommendations to

create this report. We will also use them in the

implementation of our ESG activities in the years to

come.

I am convinced that, as the Group, we are able to

combine our economic success with sustainable

development and care for our neighbours,

employees and the environment.

Yours faithfully,

Grzegorz Pinkosz

President of the Management Board of TOYA

S.A.

LETTER FROM THE

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1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

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6. ABOUT THE

REPORT

TOYA GROUP 2023 SUSTAINABILITY REPORT

TOYA GROUP

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

ABOUT THE TOYA GROUP

We distribute tools, power tools, professional catering

equipment and appliances that prove useful in the kitchen,

bathroom and garden. Our products can be found in

almost every Polish home and in millions of flats,

workshops and construction projects in more than

100 countries around the world. Welcome to the

TOYA Group.

We have nearly 13,000 products in our portfolio.

They are used by, among others, construction

workers, plumbers, electricians, the OHS industry, as

well as keen DIY enthusiasts. Affordability coupled

with quality, safe and effective solutions and a

differentiated product range are the TOYA Group’s

“tools” for success. Our corporate values are

RESPONSIBILITY, FOCUS ON GROWTH AND PROFIT,

CUSTOMER-ORIENTED APPROACH, INNOVATION.

At the end of 2023, all TOYA Group companies

employed

550 people

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We have come a long way in more than 30

years to grow from an ambitious local ﬁrm to

a rapidly expanding group of companies

operating in markets around the world.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

TOYA S.A.

The parent company with its registered office at ul.

Sołtysowicka 13/15 in Wrocław. It manages the

strategy and portfolio value creation of

subsidiaries. It has two logistics centres, in Wrocław

and Nadarzyn. Established in 1990 (as TOYA

IMPORT-EKSPORT S.C.) and transformed into a

joint-stock company, TOYA S.A., in 2001. TOYA S.A.

shares have been listed on the Warsaw Stock

Exchange since 2011. The Company is a member

of the Association of Stock Exchange Issuers.

The largest sales in Poland are made through

traditional distribution channels, i.e. distributors,

wholesalers and specialist shops. The main sales

target group is professional users. TOYA S.A. works

with a number of distributors whose network is

constantly being expanded, as well as with dozens

of wholesale customers throughout Poland.

Recent years have also seen dynamic growth in

retail sales, through the toya24.pl online shop and

via popular e-commerce platforms.

The domestic tool market’s is specific due to its

strong fragmentation. Apart from Toya, Polish

industry leaders are: Topex, Profix and Dedra. As

for the foreign manufacturers selling their products

on the Polish market, the best known ones are:

Bosch, Makita and Hilti. The aforementioned

entities are direct competitors of the Group.

TOYA Romania S.A.

Founded in 2003, with its registered office and

logistics centre in Romania’s capital, Bucharest,

the subsidiary has been operating since 2019 in a

new office centre with a warehouse of more than

7000 sq. m.

The product range, brands offered and distribution

channels (with the exception of exports) are the

same as for the Polish company. The Company is

strengthening its position in the local market,

helped by the expansion of its network of sales

representatives who acquire customers among

specialist retail shops and institutional customers.

YATO Tools (Shanghai) Co., Ltd.

Established in 2008 as a jointly controlled company

with its registered office and logistics centre in

Shanghai, China. In 2013, TOYA S.A. took over full

control of the company.

YATO Tools (Shanghai) has built a distribution

network in 31 of the 34 administrative divisions in

China which are home to some 1.4 billion people.

The company is also developing sales in the online

channel, both through its own shop and through

existing large specialised online shops. In addition,

YATO Tools (Shanghai) has built a structure to

export Yato products to customers and distributors

in Southeast Asia, Africa and Australia. Moreover, it

is the main supplier of goods to Toya S.A. and

TOYA Romania S.A.

YATO Tools (Jiaxing) Co., Ltd.

It was established in 2019 as a subsidiary with its

registered office in Baibu Town, China. 100

percent of the company’s share capital (total

value of USD 12.5 million) is held by TOYA S.A.

Since 2023, the company operates a modern

logistics and distribution centre.

The company’s export sales range includes

countries in Asia, Africa, Europe, Australia and

South America.

The TOYA Group is comprised of entities operating in different countries. The organisational structure provides a

global reach and facilitates expansion into additional markets. The Group consists of:

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TOYA GROUP 2023 SUSTAINABILITY REPORT

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LETTER FROM THE

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3. ENVIRONMENT

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5. PEOPLE

6. ABOUT THE

REPORT

Cooperation with local distributors and sales networks, as well as handling the wholesale and retail markets, is

complemented by the company online shops, available, among others, at toya24.pl, toya24.ro and yatogastro.com.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

TOYA Capital Group

Registered offices of TOYA

Group companies

Export

TOYA Group’s own brands and product range

FLO

(gardening hand

and diesel tools,

gardening power

tools)

VOREL

(hand, workshop

and construction

tools)

FALA

(bathroom and

kitchen fittings,

accessories)

YATO

(power tools, cordless,

electric, diesel,

pneumatic and hand

tools, as well as OHS

products)

STHOR

(power tools and

workshop tools)

LUND

(small household

appliances, household

products)

TOYA GROUP 2023 SUSTAINABILITY REPORT

We own the tool industry’s well-known brands whose

production is carried out by our Partners. As a

Group, we have a say in the selection of the

product range, the technical specification of each

manufactured batch and the designs and visual

aspects. We look at, among other things, usability,

ergonomics, innovation, durability, safety and

potential demand for specific equipment.

Professional staff handles the development of the

product range, its positioning, image and quality

control. A team of Product Managers develops

appropriate strategies, specifies the product range

and influences the effectiveness of sales and

marketing activities.

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REPORT

Percentage share

2023

49%358,906Wholesale market

33%245375Export

11%75,729Retail chains

7%52,386Retail sales

100%732,396

TOYA Capital Group

consolidated sales

revenue

TOYA Group revenue in recent years

2023 revenue and market share of total sales

202320222021

EUR 162 millionEUR 163 millionEUR 150 million

Wholesale market

Export

Retail chains

Retail sales

In 2023 we had

nearly

74,000 sq.m

of warehouse space

We distributed products for

13,000 products

industries

distribution centres

product categories

Automotive

industry

HoReCa

Construction Bathroom

Plumbing Kitchen

Electrical

system

Garden

Industry OHS

TOYA GROUP 2023 SUSTAINABILITY REPORT

49%

33%

11%

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1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

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MANAGEMENT

In accordance with the TOYA S.A. Articles of

Association, the bodies of the Group’s parent

company are:

• Management Board

• Supervisory Board

• General Meeting

The Management Board of the parent company consists

of one to seven members, including the President of the

Management Board and, if the Management Board is

composed of more than one person, the Vice-President of

the Management Board. The number of Management

Board Members for a given term of office is determined by

the Supervisory Board which is also responsible for

appointing and dismissing Management Board Members.

The Management Board Members are appointed for a

joint term of office of three years, and the mandates of the

Management Board Members expire at the latest on the

date of holding the General Meeting which approves the

ﬁnancial statements for the last full ﬁnancial year in office.

The selection of the Management Board Members takes

into account, first and foremost, competences relevant to

the impact of the organisation and diversity.

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Composition of the TOYA S.A. Management Board in 2023:

• Grzegorz Pinkosz, President of the Management Board,

Chief Operating Officer [simultaneously President of

the Management Board of TOYA Romania S.A., Vice-

President of the Management Board of YATO Tools

(Shanghai) Co., Ltd. and Member of the

Management Board of YATO Tools (Jiaxing) Co., Ltd.];

• Maciej Lubnauer, Vice-President of the Management

Board, Chief Financial Officer [simultaneously

Supervisor YATO Tools (Jiaxing) Co., Ltd. and Censor

TOYA Romania S.A. with its registered office in

Bucharest];

• Robert Borys, Vice-President of the Management

Board, Head of IT (simultaneously Censor TOYA

Romania S.A. with its registered office in Bucharest).

The powers of the Management Board include

handling all matters of the parent company that

have not been reserved for the General Meeting or

the Supervisory Board. The Management Board

operates on the basis of the Regulations of the

Management Board approved by the Supervisory

Board, as set out in the TOYA S.A. Articles of

Association. In 2023, the company was in the

process of implementing the initial stage of

developing sustainability-related strategies and

policies. The organisation faces the challenge of a

detailed division of responsibilities in this area and in

appointing a person responsible for managing the

organisation’s environmental, economic and human

impact.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

Members of TOYA S.A. Supervisory Board in 2023:

• Piotr Mondalski, Chairman of the Supervisory

Board (as an independent member until

February 2023);

• Jan Szmidt, Vice-Chairman of the Supervisory

Board;

• Beata Szmidt, Member of the Supervisory Board;

• Dariusz Górka (as an independent member until

February 2023);

• Michał Kobus, independent member;

• Grzegorz Maciąg (as an independent member

until February 2023);

• Wojciech Bartłomiej Papierak, independent

member.

The biographies of the members of the

Management and Supervisory Boards are available

at: https://toya.pl/en/company-authorities.

As part of the Supervisory Board, the Group’s parent

company has an Audit Committee. It is responsible

for advising and supporting the Supervisory Board in

the performance of its control and supervisory duties

with regard to broadly defined ﬁnancial reporting in

accordance with the Act on Auditors, Auditing Firms

and Public Oversight.

Despite the lack of a formal diversity policy, the

General Meeting and the Supervisory Board are

guided in their selection of the Supervisory Board

and the Management Board, respectively, by the

need to ensure a diverse resource pool of talents

necessary to meet the challenges. The current

composition of the Supervisory Board and the

Management Board ensures diversity both in terms

of education, expertise and age.

In 2023, the evaluation of performance of the

highest-level management body of the Group’s

parent company covered only financial results.

However, TOYA Capital Group has taken steps to create a

structure for impact management responsibilities within the

organisation. This has resulted in the adoption of the ESG

Management Policy, which will be implemented in 2024.

At the same time, work is underway at TOYA S.A. to

develop a diversity and human rights policy. Among

other things, we want to formally guarantee the

prohibition of discrimination in any respect, respect

for diversity and full respect for human rights.

Human rights issues are included in the Code of

Conduct for Suppliers which takes into account the

provisions of the Universal Declaration of Human

Rights with regard to working conditions, the

prohibition of child labour and OHS, among others.

Ultimately, the Code of Conduct for Suppliers will be

replaced by the Code of Ethics – a single document

applicable to everyone in the TOYA Capital Group.

In 2023, the TOYA S.A. Management Board took part

in training, educational workshops and courses

organised by professional third party suppliers to

improve knowledge and skills related to

sustainability. The TOYA S.A. Management Board

also plays a key role in determining, approving and

overseeing the Group’s sustainability area issues,

and is responsible for reviewing and approving

reported data. The TOYA S.A. Supervisory Board is

appointed by the General Meeting. The Board’s

term of office is three years and at least two

members of the Supervisory Board meet the

independence criteria. The Supervisory Board is

responsible for the ongoing supervision of the

company’s activities. The board meets at least once

per quarter of the financial year.

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TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

TOYA GROUP 2023 SUSTAINABILITY REPORT

ETHICS AND COMBATING

CORRUPTION

The TOYA Capital Group Code of Ethics was

approved in December 2023. The document

contains the most important principles for the

Group’s activities, including those related to respect

for human rights, concern for the environment and

compliance with applicable laws and market

standards. The Code of Ethics provides a guideline

for daily work and aids in day-to-day decision-

making.

In the document’s preamble we underline that, as

TOYA Capital Group, we are committed to

conducting our business and building customer trust

while respecting generally applicable laws and

ethical business practices. We presume to operate in

compliance with the law and the recommendations

of the regulatory authorities, and each company

within the TOYA Group is obliged to comply with the

regulations of the country in which it operates.

The Code of Ethics is based on the findings of,

among others, the UN Guiding Principles on Business

and Human Rights and the OECD Guidelines for

Multinational Enterprises, including the principles and

rights set out in the eight fundamental conventions

identified in the International Labour Organisation’s

Declaration on Fundamental Principles and Rights at

Work and the principles and rights set out in the

International Bill of Human Rights. However, the main

basis for defining the principles of conduct

contained in the document were the TOYA Capital

Group’s values: responsibility, growth- and profit-

oriented approach, focus on customer needs and

expectations, and innovation.

All employees of the TOYA Group are required to

comply with the principles of the Code of Ethics

without exception: members of the Management

Board, managers, executives as well as professionals

and all other persons associated with our

organisation. We also encourage all other market

participants, including, above all, our customers and

stakeholders, to act in accordance with the

provisions of the Code of Ethics.

Our Code of Ethics defines such matters as:

• rights and obligations of employees;

• compliance culture principles;

• the need to counter corruption;

• customer relations, including attention to

quality, development, expansion and

improvement of the product range and ethical

sales and marketing activities;

• corporate responsibility, including adherence to

the principles of fair competition;

• ethical relations with suppliers;

• transparency of actions;

• local involvement;

• concern for the environment.

The implementation of the TOYA Capital Group

Code of Ethics and information and education

activities aimed at employees began in 2023 and

will continue in 2024.

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

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6. ABOUT THE

REPORT

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ANTI-CORRUPTION ACTIVITIES

The TOYA Group is opposed to any signs of

corruption and bribery. The parent company

complies with the provisions of the Anti-Corruption

Code which precisely defines the meaning of

corruption and unequivocally opposes all its

manifestations. The Code applies to members of the

Company’s corporate bodies and all employees of

the TOYA Group, regardless of their position or

function. It prohibits, among other things, offering

and accepting any extralegal benefits in relations

with representatives of the administration and other

companies. Additionally, it prohibits any relations

with business partners whose information is

incomplete or indicates that they are operating in a

dishonest manner.

Our Anti-Corruption Code sets out, among other

things, the basic principles for avoiding conflicts of

interest within the Group, and also governs the

matter of giving or receiving gifts in connection with

performance of official duties. This is because we

recognise that in certain situations, this issue may

constitute a an act of corruption and affect the

ability to make objective business decisions. Among

other things, the document prohibits the giving or

accepting of gifts in the form of cash or cash

equivalents, as well as the giving of any gifts to

public sector employees.

The Group’s parent company maintains an

appropriate register to record information related to

gifts and entertainment expenses. Small gifts,

customarily given at business meetings, are an

exception.

The Anti-Corruption Code also obliges employees to

avoid activities and relationships which go against

the interests of the company.

It is in particular forbidden to use one’s position or

internal information for personal gain and to enter

into agreements with entities in which the employee

holds shares or interests. The above applies to all

employees, including members of the top

management bodies.

Training for employees and managers on anti-

corruption policies and procedures

Percentage of Management

Board members who have

received anti-corruption

training

Percentage of employees

who have received anti-

corruption training

100%

97.5%

3 persons Number of Management Board

members who have received anti-

corruption training

317 persons Number of employees who have

received anti-corruption training

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

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5. PEOPLE

6. ABOUT THE

REPORT

97.5%

employees have received anti-

corruption training

100%

members of the Management Board

have received anti-corruption

training

TOYA GROUP

2023 SUSTAINABILITY

REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

WHISTLEBLOWING PROCEDURE

TOYA S.A. has solutions in place to report incidents

regarding activities which go against the law or

internal regulations. Employees have the right and

duty to report any irregularities they notice. They can

report in person to the Compliance Officer, by e-

mail to compliance@yato.pl or, also anonymously,

via a dedicated online platform which is active 24

hours a day. Notifications are handled by the

Compliance Officer and the Management Board or,

if the notification relates to the Management Board,

the Supervisory Board is informed of the initiation of

proceedings. The basic deadline for processing

cases is 30 days, however this deadline may be

extended in particularly complex cases,. The

notifications are handled under uniform rules for all

employees.

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At TOYA Group, we ensure full data confidentiality

and whistleblower protection. Employees who have

reported in good faith can be sure that they will not

face any retaliation, sanctions or reprisals as a result.

The Management Board of TOYA S.A. is responsible

for the effectiveness of the whistleblowing process.

The Compliance Officer reviews the procedure at

least once a year and, if necessary, updates it.

Using the same channels employees can also

address their questions and concerns to the

Compliance Officer. In 2023, the whistleblowing

channels were only available to employees. We

plan to extend their availability to external

stakeholders as well.

The Office for Competition and Consumer

Protection imposed a fine of PLN 65,000 on TOYA

S.A. for marketing a product (charcoal barbecue)

that did not meet safety requirements. When

information about the safety hazard reached us, we

removed its cause which was announced by the

Office in its decision.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

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1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

TOYA GROUP 2023 SUSTAINABILITY REPORT

RELATIONS WITH

STAKEHOLDERS

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

We know our stakeholders. We want to hear their

opinions and we want them to hear our opinions.

Within the Group, we have formally identified a list of

key stakeholder groups and we base our relations on

dialogue and mutual communication. We inform the

stakeholders of current activities, plans,

achievements and challenges.

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In terms of subject matter, delivery channels, data

presentation, location and time communication is

tailored to the expectations of each stakeholder

group. TOYA S.A., the parent company of our

Group, is a listed company and, as such, complies

with its reporting and information obligations.

Current and interim reports are published at

https://toya.pl/raporty-biezace and https://toya.

pl/periodic-reports.

selected

Main forms of dialogue,

communication and

engagement with key

stakeholders

TOYA GROUP 2023 SUSTAINABILITY REPORT

• Participation in trade fairs

• Business meetings

• Presentations

• Periodic reports

• Current reports

• Presentations, current reports,

interim reports on the website

• Tips Section in the

www.toya24.pl and

www.yatogastro.com online

shops with presentations on

how to use selected products

and other useful information

• Online Video Section with

instructions for selected

products

• Newsletter

• Attending national and

international trade fairs

• Face-to-face meetings with

customers

• Ongoing

communication

within

the Capital

Group

• Intranet toYa Portal:

– key information and news

– Library of internal documents and

information materials, including rules

and regulations

– TOYA-Wiki section, a collection of

procedures and training materials

• Business

meetings

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REPORT

Customers

Subsidiaries

Relations with key stakeholder groups were verified

through an internal evaluation process by

representatives of the organisation’s key

departments. Feedback included the impact of

stakeholder relations and decisions on the

organisation’s business continuity. The degree of

stakeholder interest in the TOYA Group was also

assessed. The results of the verification, together with

the conclusions, were used in daily practice to

regulate and improve stakeholder relations.

An example of this is the survey we sent to key

stakeholder groups to learn of their perspective on

how to assess the relevance of specific TOYA Group

sustainability issues.

• Toya S.A. is a member of the Association

of Stock Exchange Issuers

• YATO Tools (Shanghai) is a member of

the Shanghai Pudong International

Chamber of Commerce for Foreign

Economic Relations

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Membership of associations and organisations

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

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REPORT

A solid technical foundation, high quality production

and reliable distribution are the ﬁelds through which

we have achieved our position in global markets.

Our customers include major retail chains and local

distributors on all continents, although the focus of

our business is mainly on the Central, Southern and

Eastern European markets (including Romania,

Ukraine, Belarus, the Baltic States, Hungary,

Moldova, the Czech Republic, Bulgaria and

Germany). The trust, experience and knowledge

gained, complemented by investments in modern

logistics and distribution centres, enable production

and delivery to be optimised.

We are consistently strengthening our position

outside Europe. Our Chinese company, YATO Tools

(Jiaxing), which, in addition to its normal operations,

supports the development of logistics processes in

the Group, based on a newly built warehouse

equipped with modern infrastructure played a

special role in this process in 2023.

CUSTOMERS

MILITARY CONFLICT IN UKRAINE

Before the outbreak of the Russian-Ukrainian

conflict, the TOYA Group co-operated with

trading partners from Russia, Belarus and

Ukraine. Russian aggression has disrupted our

trading relations in these markets, resulting in

temporary freezing of relations with some

customers. Sales to customers based in Russia,

Belarus and Ukraine accounted for

approximately 9 percent of TOYA Group’s total

sales in 2022. In 2023, sales to customers in this

region have recovered and accounted for

nearly 11 percent, with a significant increase in

sales to Ukrainian customers.

We strictly comply with all sanctions imposed by

the European Union, Poland and foreign

governments on entities, persons and goods

designated in the relevant acts. The need to

verify all economic sanctions causes a

periodic, independent of the Group, slowdown

in trade with customers from these markets.

GRI

3-3

GRI

2-6

The TOYA S.A. Group supplies

products to more than

4000

B2B customers

worldwide

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

Operational decisions regarding distribution

channels and geographical areas of operations are

made by the Management Board of the TOYA

Group’s parent company in consultation with its

subsidiaries.

We have identified four distribution segments in the

Group:

• sales on domestic markets (Poland, Romania) to

retail chains;

• sales on domestic markets (Poland, Romania and

China) – wholesale market;

• foreign sales;

• retail sales – mainly e-commerce sales (Poland,

Romania and China).

Within the network segment, we cooperate with

large retail chains in Poland and Romania.

Wholesale market sales are carried out through a

network of wholesalers and shops, as well as through

sales representatives. Overseas markets’ matters are

handled using the resources of the parent

company’s sales department and the subsidiaries,

YATO Tools (Shanghai) Co., Ltd. and YATO Tools

(Jiaxing) Co. Ltd. Retail sales take place mainly via

the online shop (in Poland and Romania) and

marketplace platforms (in Poland and China).

A key factor in maintaining the TOYA Group’s

competitive edge is the broadly defined customer

service quality. We focus greatly on ensuring that

our product range is fully accessible to any customer

in any region of the world. We improve our logistics

processes and maintain good relations with

suppliers, based on mutual business benefits.

The team representing the Sales Department and

Product Development Department is responsible for

day-to-day customer service at TOYA Group.

Relations with customers are supported by modern IT

technology and product management systems and

devices.

Satisfaction of business partners and customers, both

in trade carried out through traditional channels and

e-commerce, is also based on the availability of

goods and a constantly expanding product

portfolio. The presence of goods on shop shelves is

ensured by efficient yet continuously improving

logistics processes which are of particular

importance to the TOYA Group.

For the sake of the purchasers’ comfort, their safety

and the proper and trouble-free use of tools and

equipment, all products in the TOYA Group’s range

are accompanied by reliably prepared and legally

required user manuals and the necessary

descriptions and, where necessary, data sheets,

pictograms and graphical or photographic

references, energy labels and information on

disposal methods.

The packaging and products sold by the TOYA

Group comply with REACH and PAHs regulations.

Information on the composition of products that are

intended to come into contact with the skin or

clothing is always provided.

GRI

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TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

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1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

Percentage of key product

categories assessed and

covered by labelling

procedures:

100%

The packaging and products

sold by the TOYA Group

comply with REACH and PAHs

regulations.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

We know almost everything there is to know about

tools, which is why we support all kinds of technical

initiatives and projects that develop the interests

and skills of local communities. For years we have

been eager to share our capabilities and

experience for years. The scale of its operations and

market achievements allow the TOYA Group to

engage in various forms of social involvement, such

as educational, environmental or healthy lifestyle

promotion projects.

LOCAL COMMUNITIES

COOPERATION WITH ODRA CENTRE

TOYA S.A. supports the Odra Centrum educational

and cultural centre in Wrocław. The organisation

fosters environmental awareness, promotes tourist

activities on the River Oder and organises workshops

related to sailing, water and the environment. During

the classes, the young participants learn how to

build model boats, which they then make

themselves using zero waste materials and YATO

tools our company makes available.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

YATO AMONG WATAHA CLUB PARTNERS

In 2023, we continued our support of the Pupils’

Sports Club 71, which runs the Wataha hockey team

in Wrocław. We support initiatives that promote

sports activities for children and youth, which is why

the YATO logo can be seen among the partners of

this initiative.

CHARITABLE INITIATIVES

We also contribute to improving the quality of life of

those under the care of charitable foundations and

associations.

TOYA S.A. and our employees have become

involved in the Noble Gift [Szlachetna Paczka]

programme. We supported a family selected by

Stowarzyszenie Wiosna, the coordinator of the

campaign. Among other things, those in need

received clothes, tools and catering equipment from

our commercial range.

The Club has an extensive curriculum, including

skating lessons and learning the basics of ice

hockey. It also organises hockey training and

matches. The young players wear our donated

jerseys as well as helmets and skates, which are

loaned to the students for their first classes. We also

donated a net surrounding the rink to increase the

safety of the hockey players and spectators during

classes.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

Within the Group, we purchase goods from suppliers

located in different parts of the world, but mainly in

Asia. Our analysis shows that the supply chain

depends on means of production and transport,

manpower, infrastructure, and natural phenomena

and events, among others. One way to minimise the

impact of adverse events on logistics and on-time

delivery is to work with multiple contractors from

different countries.

For European importers of equipment from Asia, the

supply chain is relatively long. The challenge is both

the process of ordering goods well in advance from

sub-suppliers/manufacturers and the sea transport

itself, which is often complex (the necessity to use

intermediaries, transshipment depots, and

warehouses). Therefore, most large companies

trading in goods imported from Asia maintain high

inventory levels. The cost optimisation we are

pursuing in the Group is also made possible by

investments in our own warehouse centres – both in

terms of available space and automation. In

addition, the scale of orders and shipped freight

ensures the Group’s strong negotiating position with

carriers and freight forwarders, which translates into

the ability to obtain favourable transport prices.

SUPPLY CHAIN

GRI

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2-6

As the supply chain is a key issue for the entire

Group, our parent company is continuously carrying

out analytical work related to the optimisation of

logistics processes. The solutions being implemented

and considered are intended to provide the Group

with additional competitive advantages in the long

term.

BEST PRACTICE

YATO Tools (Jiaxing), a subsidiary with its

registered office in Baibu Town, China, has

opened a high-bay warehouse which will

become the central warehouse for companies

across our Group. The warehouse has state-of-

the-art automated equipment to optimise

logistics processes while not engaging

significant human resources. The very good

location of the warehouse, close to two

seaports which are some of the largest

transshipment centres in the world and in

relatively close proximity to the largest suppliers,

will promote the optimisation of logistics

processes, which will improve the availability of

the product range for customers of all

companies in the Group.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

Percentage of domestic suppliers

in Poland analysed against

environmental criteria

90%

Percentage of domestic suppliers in

Poland who have accepted the TOYA

Supplier Code:

100%

TOYA GROUP 2023 SUSTAINABILITY REPORT

GRI

414-1

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

The Group maintains close business relationships

both directly with factories and with trade

companies that supply us with goods from selected

factories. Through YATO Tools (Shanghai) Co. Ltd.

and YATO Tools (Jiaxing) Co. Ltd. we buy goods

from more than 600 different factories. This form of

cooperation with factories allows for quality control

carried out locally in China by the relevant

department and the organisation of direct,

consolidated shipments from several factories at the

same time. These companies also seek out new

suppliers and, by having direct access to local

manufacturers, often obtain more favourable terms

of cooperation.

Most of our Group’s overseas suppliers are Chinese

companies with whom we maintain close relations.

TOYA Group companies operating in this market

have quality control departments within their

structures that verify the tools supplied by sub-

suppliers. Control takes place at the production

stage during which the materials used are checked

for conformity with the declared specification as

well as the quality of the final goods. TOYA Group

representatives regularly visit factories and

warehouses abroad.

A small number of the products in the TOYA Group’s

portfolio is also manufactured in Poland by reliable

partners. It is mainly equipment for the construction,

agricultural, automotive, furniture and horticultural

industries. All of the domestic manufacturers that the

Group works with meet high quality and business

ethics requirements.

The standards developed jointly with manufacturers

mean that the number of complaints is relatively

low, and those that do happen are identified at an

early stage so that appropriate action can be taken

at the factory stage.

GRI

3-3

We expect all Group suppliers to respect our TOYA

Supplier Code of Conduct. The document

represents a commitment by suppliers to respect

labour laws, ensure safe conditions for workers,

protect the environment and respect human rights.

The Code is available on our website.

For both Polish and foreign suppliers, we have never

received reports of breaches of the Supplier Code

of Conduct, nor have we witnessed any situation or

behaviour that would be indicative of unethical

conduct.

Purchasing department staff personally visit almost

all suppliers in Poland (90% of domestic suppliers)

with whom we commence cooperation. Such visit

involves supplier presentation, inspection of the

warehouses and production halls during working

hours and learning about production processes. Due

to the distance, we meet with foreign suppliers at

tool trade fairs. Later on, we visit some of them in

factories in China to learn more of the overall

production process.

Approved in 2023, the TOYA Capital Group Code of

Ethics (see Chapter 1 for more on the Code of

Ethics) contains key principles related to compliance

with the law and market standards.

TOYA GROUP 2023 SUSTAINABILITY REPORT

GRI

414-1

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

ENVIRONMENT

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

TOYA Group’s total energy consumption in 2023 [in GJ]:

*Data refers to natural gas consumption for heating purposes

Toya S.A.TOYA GroupEnergy from individual

sources

Energy from renewable sources

4,460,4725,504,389Electricity

Energy from non-renewable sources

02,925,580Electricity

5,224,9036,523,983

Energy from natural

gas combustion*

815,0471,260,480

Energy from diesel

combustion in

vehicles

4,125,7506,654,435

Energy from petrol

combustion in

vehicles

14,626,17222,868,867Total

GRI

302-1

Total energy consumption in MWh in 2023:

Toya S.A.TOYA Group

1,239,0202,341,659Electricity

1,451,3621,812,217Heat

The environmental matter area, climate impact

issues and the Circular Economy are on the list of

important topics conditioning TOYA Group’s

activities and our business relationships. Concern for

the environment is also part of our Code of Ethics

which we have adopted in 2023. In addition, next

year we intend to adopt a Resource Use

Management Policy.

The TOYA Group does not accept the destruction of

natural ecosystems and biodiversity. It has similar

expectations of its suppliers. Our Supplier Code of

Conduct obliges all companies that wish to work

with us to protect the environment and to conduct

their business in an environmentally friendly manner.

Moreover, we keep a close eye on the growing

need for climate concern, stay up to date with the

latest green developments and remain open to

expanding the environmental provisions currently in

place for the Group and our suppliers.

We have expectations not only in relation to

suppliers, but also to ourselves. That is why at TOYA

Group we use hybrid cars which have lower

consumption than petrol and diesel cars and

therefore lower emissions.

GRI

3-3

GRI

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GRI

303-5

TOYA Group has no significant negative impact on

water resources and our operations do not take

place in areas where these resources are at risk.

Water is used for utility purposes and drawn from

municipal water supplies. This applies to locations in

Wrocław and Nadarzyn as well as in Romania and

China. Wastewater is directed to municipal

treatment plants.

Total water consumption in 2023 by TOYA Group companies

(in megalitres)

6.33TOYA Group

1.93Including TOYA S.A.

The electricity that TOYA S.A. purchased from

the supplier was entirely from certified

ecological sources. TOYA Romania S.A. also

used certified green electricity.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

GRI

305-1

GRI

305-2

Direct greenhouse gas emissions (in tCO

Indirect greenhouse gas emissions (in tCO

Total (renewable and non-renewable) energy consumption

in the TOYA Group [in GJ]

1090.15Total direct CO

emissions (Scope 1)

785.71TOYA S.A.

491.63The sum of indirect CO

emissions (Scope 2)

(

market-based method)

0TOYA S.A.

1345.11The sum of indirect CO

emissions (Scope 2)

(location-based method)

848.73TOYA S.A.

26,244,552

Total energy consumption in the

organisation in GJ in the TOYA Group

14,626,172

Total energy consumption in the

organisation in GJ at TOYA S.A.

In Scope 2, reported emissions include emissions for

the TOYA Group’s electricity consumption. Electricity

origin guarantee certificates were included in the

calculation. For the location in China, the electricity

grid emissivity factor was assumed without taking

into account information on the origin of renewable

energy sources. Calculations for companies in China

were carried out using a single method due to the

unavailability of the emissivity factors necessary to

carry out calculations using two methods.

Sources of emission factors for the market-based

method:

• Poland: European Residual Mixes: Results of the

calculation of Residual Mixes for the calendar year

2022, AIB associate of issuing bodies, September

2023;

• Romania: European Residual Mixes: Results of the

calculation of Residual Mixes for the calendar year

2022, AIB associate of issuing bodies, September

2023;

• China: Carbon intensity of the power sector in

China from 2000 to 2022, Statista 2024.

Sources of emission factors for the location-based

method:

• The CO

, SO

, NO

, CO and total dust for electricity

based on information from the National Database

on Greenhouse Gases and Other Substance

Emissions for 2022, KOBiZE, December 2023;

• Romania: Raport anual privind activitatea

autoritatii nationale de reglementare in domeniul

energiei, ANRE, 2022.

We have not analysed the carbon footprint of our

products at the TOYA Group in 2023.

In Scope 1 of the carbon footprint, the data includes

fuel combustion in stationary sources and in vehicles

used by the company and the associated CO

emissions.

At the TOYA Group, we have started a review of existing documents in the organisation in 2023 to work

on climate change risks. For 2024 we have planned the adoption of a climate strategy including a

decarbonisation plan and a climate change adaptation plan.

The carbon footprint of the Group’s parent company in 2023

(in Scopes 1 and 2):

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

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1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

The wear of any tool is a matter of time ... or

improper handling. Although we do our best to

ensure that the accompanying manuals include

clear instructions for use and possible maintenance,

to ensure that the equipment we sell is durable and

as useful as possible for as long as possible, we are

aware that nothing lasts forever. We also know that

incorrectly disposed of, damaged electrical

appliances and used tools have a negative impact

on the environment and, on a global scale,

contribute to adverse climate change. Shaping

environment-oriented habits and behaviours related

to the disposal of no longer needed items within

households is our common interest!

In our online shops’ topic sections customers will find

data on how to handle waste electrical and

electronic equipment. There we inform, among

other things, that the of the crossed-out wheeled bin

symbol on the products indicates that waste

electrical and electronic equipment cannot be

disposed of with municipal waste. We point out that

throwing electro-waste into a container poses a

threat to the environment, and segregating and

returning used equipment for treatment, recovery,

recycling and disposal prevents pollution and

contamination of the environment.

CLIMATE AND ENVIRONMENTAL

EDUCATION

Such a procedure also contributes to reducing the

use of natural resources and the cost of

manufacturing new equipment.

As a retailer operating an online shop, we also

comply with all requirements for the acceptance

and collection of waste equipment from

households. We also provide a website address with

a list of waste equipment collection points in the

Republic of Poland.

Additionally, the TOYA Group participates in the

Biosystem Group’s “Switch on Eco Imagination”

campaign, a nationwide education and information

campaign on proper disposal of selected groups of

waste and methods of preventing waste generation.

Accompanying the campaign are projects related

to important environmental issues, including the

management of packaging waste and waste

electrical equipment and batteries, and the

activities undertaken are intended to shape pro-

environmental habits and behaviour.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

National Education Programme for Schools - “Collect

Batteries and Phones!”

With children and youth as its target audience, the

initiative focused on the proper disposal of used

batteries and mobile phones. Schools which

qualified for the Programme received topic-related

educational materials specified in the rules,

including special “Battery ABC” and “Mobile

Phones” brochures, scenarios for lessons on

environmental issues and posters to be displayed on

school grounds. Each institution also received a

special container for the collection of used batteries

and rechargeable batteries. In addition,

participating schools took part in a competition for

the largest collection of used batteries and mobile

phones.

166 tonnes of used batteries and 2 tonnes of phones

were collected during the 11th edition of the

Programme which ended in May 2023. A total of

1,353 educational institutions from all over Poland

participated in the campaign.

“Electro-Waste Garbage Truck”

An educational and informational project promoting

the possibility of collecting waste electrical and

electronic equipment free of charge from people

living in selected Polish cities (Kraków, Katowice,

Mysłowice, Chorzów, Sosnowiec, and Wrocław). The

initiative increased knowledge and raised

environmental awareness of the risks to the

environment and human health and life resulting

from improper disposal of hazardous waste. It also

made it possible to dispose of waste which, due to

its composition and properties, required special

management methods. For each piece of bulky

waste equipment, campaign participants received

a reusable shopping bag. The collected equipment

was recycled in an environmentally safe manner at

the Waste Electrical and Electronic Equipment

Processing Plant in Bolęcin near Chrzanów, one of

Poland’s most modern facilities of this type.

Switch on Eco Imagination – Facebook activities

As part of the 2023 project, the organiser

implemented communication activities on the social

networking site Facebook. Among other things,

entries presented updates on current environmental

education activities, advice on proper waste

handling, tips on waste generation prevention

methods, and environmental trivia.

The “Switch on Eco Imagination” proﬁle was

followed by 4,600 people and the Facebook page

reach was 96,366 people.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

In 2023, actions implemented as part of the “Switch

on Eco Imagination” campaign included:

TOYA GROUP 2023 SUSTAINABILITY REPORT

CIRCULAR ECONOMY

Tools do not last forever, but in many cases they can

be given a second “life”, i.e. repaired. And this is the

procedure we recommend to our customers,

making available a range of related options. Waste,

and in particular electro-waste, is a huge challenge

in today’s world, and we do not want to add to the

problem. This is why TOYA Group supports the idea

of Circular Economy, convincing customers that

repairing a piece of equipment is usually cheaper

and much more environmentally friendly than

throwing it away and buying a new one.

We have our own repair centre that accepts

complaints for products purchased directly from us.

A clear complaint process, described in the terms

and conditions, makes it easy for buyers to exercise

all their legal rights or our warranty coverage.

In the event of a complaint, the customer can

expect the damaged product to be collected free

of charge from the place indicated and the

complaint to be dealt with to the extent indicated in

the complaint. When we receive a complaint, the

buyer is informed by e-mail about the progress of

the complaint processing, in particular:

• the registration of the case;

• ordering the courier company to pick up the

defective product;

• receipt of the consignment by the repair centre

and forwarding it for processing.

GRI

3-3

• taking a complaint decision on the case.

Once the warranty has expired, we provide a post-

warranty service that includes the sale of spare parts

and repair in our centre. In addition, we publish

straightforward and clear product documentation,

including an assembly drawing of the product with

numbered components and a list of spare parts

provided for the product. This documentation

enables the buyer to become familiar with the

design of the piece of equipment and decide how

to carry out a post-warranty repair. When the buyer's

skills permit, this usually means buying the spare parts

from the company and carrying out the repair

themselves.

When the buyer’s skills do not allow for this, we offer

to carry out post-warranty repairs at our repair

centre. The buyer can expect an assessment of the

type of defect, the amount of work and the

necessary spare parts and an estimate of the

resulting costs.

In cases where repair is technically or

economically unviable, we offer the option of

leaving the piece of equipment for disposal in

accordance with the regulations for waste

electrical and electronic equipment.

LETTER FROM THE

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1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

* Data relates to TOYA S.A. and TOYA Romania S.A. only.

GRI

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GRI

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Recovered products and packaging

Total weight of waste generated by waste category

(in metric tonnes)

TOYA

Romania

S.A.

TOYA S.A.

Percentage of recovered

products per product category*

65%65%Electrical and electronic

equipment

50%45%Batteries and rechargeable

batteries

-50%Lubricating oils

-75%Pneumatic tyres

Percentage of recovered

packaging per product

category*

65%70%Paper and cardboard packaging

65%40%Plastic packaging

65%21%Wood packaging

TOYA S.A.TOYA Group

43,70772,707Paper and cardboard packaging

48,13454,334Plastic packaging

1,7831,843

Waste electrical and

electronic equipment

13,59413,594

Components removed from

waste electrical and electronic

equipment

012.36Metal

0.2520.252Batteries and rechargeable

batteries

8.468.46

Mixed waste from

construction, renovation and

disassembly works

Total weight of waste generated

[in tonnes]

262.06

TOYA Group

115.93

TOYA S.A.

We hand waste over to authorised entities who then

process it, recover raw materials or dispose of it.

BEST PRACTICE

The approved TOYA Group Code of Ethics

approved in 2023 (see Chapter 1 for more

information on the Code) includes provisions

deﬁning commitment to sustainability and care

for the surrounding world.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

TAXONOMY

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

In accordance with Article 8 of EU Regulation

2020/852 (Taxonomy), information is provided below

on how and to what extent TOYA Group’s activities

are related to economic activities that qualify as

environmentally sustainable (activities in line with the

systematics). The key performance indicators have

been prepared in accordance with the

requirements set out in EU Delegated Regulation

2021/2178, to the best of our knowledge and with

due diligence.

The assessment of the compliance of the business

with the systematic framework under the individual

key performance indicators was carried out on the

basis of the technical criteria set out in EU Delegated

Acts 2021/2139 and 2022/1214.

MINIMUM SAFEGUARDS

TOYA Group complies with the minimum safeguards

referred to in Article 18 of EU Regulation 2020/852.

The assessment of compliance with the Minimum

Safeguards in TOYA Group was conducted based

on the recommendations from the Final Report on

Minimum Safeguards document by Platform On

Sustainable Finance published in October 2022,

which identifies as non-compliance with the

Minimum Safeguards the occurrence of at least one

of two indications within the four performance

areas:

• Human rights

• Corruption

• Taxes

• Fair competition

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

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3. ENVIRONMENT

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5. PEOPLE

6. ABOUT THE

REPORT

KPI TURNOVER

“Do No Serious

Harm” criteria

Significant

contribution

criteria

“Transition activities” category (20)

“Supporting activities” category (19)

Share of activity in line with the taxonomy in

revenue (%) (18)

Minimum safeguards (17)

Biodiversity (16)

Circular economy (15)

Pollution (14)

Water and marine resources (13)

Climate change adaptation (12)

Climate change mitigation (11)

Biodiversity (10)

Circular economy (9)

Pollution (8)

Water and marine resources (7)

Climate change adaptation (6)

Climate change mitigation (5)

Part of turnover, N year (4)

Turnover (3)

Code (2)

Business activities (1)

T/N

T; N; N/EL

PLN

A. Taxonomy-eligible activity

A.1. Environmentally

sustainable activity (in line with

the taxonomy)

0.00000000.000.00

A.1. Turnover from

environmentally sustainable

activity (in line with the

taxonomy)

E000000.00

Including supporting

T00

Including for transition

A.2. Taxonomy-eligible

environmentally

unsustainable activity (activity

not in line with the taxonomy)

0.000.00

A.2. Turnover from taxonomy-

eligible environmentally

unsustainable activity (activity

not in line with the taxonomy)

0.000.00

A. Turnover from taxonomy-

eligible activity (A1+A2)

B. Taxonomy non-eligible activity

T100.00732,395,685.00

Other

100.00732,395,685.00

Turnover from taxonomy non-

eligible activity

0.000.000.00100.00732,395,685.00

TOTAL

TOYA GROUP 2023 SUSTAINABILITY REPORT

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3. ENVIRONMENT

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REPORT

The company conducts the research, develops, demonstrates and deploys, innovative electricity

generating systems generating energy through nuclear processes with minimal waste from the fuel

cycle, finances such activity or is exposed to it.

NOThe company builds and safely operates new nuclear facilities for the production of electricity or process

heat, including for district heating or industrial processes such as hydrogen production, and upgrades them

for safety, using the best available technology, finds or has exposure to this activity.

The company operates safely existing nuclear facilities generating electricity or process heat, including for

district heating or industrial processes such as production of hydrogen from nuclear energy, and upgrades

them for safety, finances these activities or has exposure to them.

Natural gas activities

The company builds or operates a system for the generation of electricity using gaseous fossil fuels,

finances this activity or has exposure to it.

The company builds, upgrades and operates a system for the combined generation of heat/cooling and

electricity using gaseous fossil fuels, finances this activity or has exposure to it.

The company builds, upgrades and operates thermal/cooling cogeneration systems using gaseous

fossil fuels, finances this activity or has exposure to it.

Share of turnover

Qualification for

the taxonomy by

purpose

Compliance with

the taxonomy by

purpose

00CCM - climate change mitigation

00CCA - climate change adaptation

00WTR - sustainable use and protection of water and marine resources

00CE - transition to a circular economy

00PPC - pollution prevention and control

00BIO - protection and restoration of biodiversity and ecosystems

TOYA GROUP 2023 SUSTAINABILITY REPORT

DISCLOSURES RELATED TO NUCLEAR ENERGY AND NATURAL GAS ACTIVITIES

Disclosure according to the guidelines of Annex III of Commission Delegated Regulation (EU) 2022/1214,

supplementing Commission Delegated Regulation (EU) 2021/2178 with Annex XII as regards the templates for

disclosures referred to in Article 8(6) and (7).

LETTER FROM THE

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Template 1. Nuclear energy and natural gas activities

Nuclear energy activities

Climate change

adaptation

(CCA)

Climate change

mitigation

(CCM)

CCM + CCA

Types of economic activity

%Amount%Amount%Amoun

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.26 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.27 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.28 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.29 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.30 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.31 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and share of other economic activity in line with

the taxonomy, not listed in lines 1 to 6 above in the

denominator of the applicable key performance indicator

0%0.000%0.000%0.00Total applicable key performance indicator8

Template 2. Economic activity in line with the taxonomy (denominator)

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Amount and share (information to be provided in

monetary amounts and percentages)

Climate change

adaptation

(CCA)

Climate change

mitigation

(CCM)

CCM + CCA

Types of economic activity

%Amount%Amount%Amount

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with

the taxonomy referred to in Section 4.26 of Annexes I and II

of Delegated Regulation (EU) 2021/2139 in the numerator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with

the taxonomy referred to in Section 4.27 of Annexes I and II

of Delegated Regulation (EU) 2021/2139 in the numerator

of the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with

the taxonomy referred to in Section 4.28 of Annexes I and II

of Delegated Regulation (EU) 2021/2139 in the numerator

of the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with

the taxonomy referred to in Section 4.29 of Annexes I and II

of Delegated Regulation (EU) 2021/2139 in the numerator

of the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with

the taxonomy referred to in Section 4.30 of Annexes I and II

of Delegated Regulation (EU) 2021/2139 in the numerator

of the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with

the taxonomy referred to in Section 4.31 of Annexes I and II

of Delegated Regulation (EU) 2021/2139 in the numerator

of the applicable key performance indicator

0%0.000%0.000%0.00

Amount and share of other economic activities following

the systematic approach not listed in lines 1 to 6 above in

the numerator of the applicable key performance

indicator

0%0.000%0.000%0.00

Total amount and total share of economic activity in line

with the taxonomy in the numerator of the applicable key

performance indicator

Template 3. Economic activity in line with the systematics (numerator)

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Amount and share (information to be provided in

monetary amounts and percentages)

Template 4. Taxonomy-eligible economic activity not in line with the taxonomy

Climate change

adaptation

(CCA)

Climate change

mitigation

(CCM)

CCM + CCA

Types of economic activity

%Amount%Amount%Amount

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.26 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.27 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.28 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.29 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.30 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.31 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of other taxonomy-eligible economic

activity not in line with the taxonomy, not listed in lines 1 to 6

above in the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Total amount and total share of taxonomy-eligible economic

activity not in line with the taxonomy in the denominator of the

applicable key performance indicator

TOYA GROUP 2023 SUSTAINABILITY REPORT

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Amount and share (information to be provided

in monetary amounts and percentages)

Template 5. Taxonomy non-eligible economic activity

%AmountTypes of economic activity

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.26 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.27 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.28 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.29 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.30 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.31 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

100%732,395,685.00

(PLN)

Amount and share of other taxonomy non-eligible economic activity, not

mentioned in lines 1 to 6 above, in the denominator having the applicable key

performance indicator

100%732395685.00

(PLN)

Total amount and total share of taxonomy non-eligible economic activity, in

the denominator having the applicable key performance indicator

TOYA GROUP 2023 SUSTAINABILITY REPORT

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ACCOUNTING POLICY

The key performance indicator for Turnover (KPI

Turnover) was based on TOYA Group’s 2023

financial statements prepared in accordance with

International Financial Reporting Standards (IFRS).

Net sales revenue from the aforementioned report

was used as the denominator of the indicator.

INFORMATION ON THE ASSESSMENT OF

COMPLIANCE WITH REGULATION (EU) 2020/852

TOYA Group’s individual revenue categories were

analysed for taxonomy eligibility. This process

included an analysis of taxonomy-eligible activities

as defined in EU Regulation 2021/2139 and EU

Regulation 2022/1214 to confirm whether the

activities of the TOYA Group are listed in the

aforementioned Regulations.

The analysis did not identify revenues from activities

that qualify for taxonomy.

CONTRIBUTION TO MULTIPLE OBJECTIVES,

DISAGGREGATION OF KEY PERFORMANCE

INDICATORS

Not applicable. As part of TOYA group’s 2023

revenue, no revenue related to environmentally

sustainable activity (in line with the taxonomy) was

identified.

CONTEXTUAL INFORMATION

Not applicable. As part of TOYA group’s 2023

revenue, no revenue related to environmentally

sustainable activity (in line with the taxonomy) was

identified.

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KPI CAPEX

2023

“Do No Serious

Harm” criteria

Significant

contribution

criteria

“Transition activities” category (20)

“Supporting activities” category (19)

Share of activity in line with the taxonomy in

revenue (%)

Minimum safeguards (17)

Biodiversity (16)

Circular economy (15)

Pollution (14)

Water and marine resources (13)

Climate change adaptation (12)

Climate change mitigation (11)

Biodiversity (10)

Circular economy (9)

Pollution (8)

Water and marine resources (7)

Climate change adaptation (6)

Climate change mitigation (5)

Percentage of capital expenditure, N year (4)

Capital expenditure (3)

Code or codes (a) (2)

Business activities (1)

T/N

T; N; N/EL

PLN

A. Taxonomy-eligible activity

a.1. Environmentally

sustainable activity (in line with

the taxonomy)

0.000000000.000.00

Capital expenditures for

environmentally sustainable

activity (in line with the

taxonomy) (a.1)

E0000000.00

Including supporting

T00

Including for transition

a.2. Taxonomy-eligible

environmentally

unsustainable activity (activity

not in line with the taxonomy)

0.000.00

Capital expenditure for taxonomy-

eligible environmentally

unsustainable activity (activity not

in line with the taxonomy) (a.2)

0.000.00

a. A. Capital expenditure for

taxonomy-eligible activity

(a.1+a.2))

B. Taxonomy non-eligible activity

T100.0027,732,158.00

Other

100.0027,732,158.00

Capital expenditure for

taxonomy non-eligible activity

0.000.000.00100.0027,732,158.00

TOTAL (a + B)

TOYA GROUP 2023 SUSTAINABILITY REPORT

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Template 1. Nuclear energy and natural gas activities

Nuclear energy activities

The company conducts the research, develops, demonstrates and deploys, innovative electricity

generating systems generating energy through nuclear processes with minimal waste from the fuel

cycle, finances such activity or is exposed to it.

NOThe company builds and safely operates new nuclear facilities for the production of electricity or process

heat, including for district heating or industrial processes such as hydrogen production, and upgrades them

for safety, using the best available technology, finds or has exposure to this activity.

The company operates safely existing nuclear facilities generating electricity or process heat, including for

district heating or industrial processes such as production of hydrogen from nuclear energy, and upgrades

them for safety, finances these activities or has exposure to them.

Natural gas activities

The company builds or operates a system for the generation of electricity using gaseous fossil fuels,

finances this activity or has exposure to it.

The company builds, upgrades and operates a system for the combined generation of heat/cooling and

electricity using gaseous fossil fuels, finances this activity or has exposure to it.

The company builds, upgrades and operates thermal/cooling cogeneration systems using gaseous

fossil fuels, finances this activity or has exposure to it.

Part of capital expenditure/Total capital

expenditure

TOYA GROUP 2023 SUSTAINABILITY REPORT

Qualification for

the taxonomy by

purpose

Compliance with

the taxonomy by

purpose

00CCM - climate change mitigation

00CCA - climate change adaptation

00WTR - sustainable use and protection of water and marine resources

00CE - transition to a circular economy

00PPC - pollution prevention and control

00BIO - protection and restoration of biodiversity and ecosystems

LETTER FROM THE

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5. PEOPLE

6. ABOUT THE

REPORT

Climate change

adaptation

(CCA)

Climate change

mitigation

(CCM)

CCM + CCA

Types of economic activity

%Amoun

%Amount

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.26 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.27 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.28 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.29 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.30 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.31 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and share of other economic activity in line with the

taxonomy, not listed in lines 1 to 6 above in the denominator

of the applicable key performance indicator

0%0.000%0.000%0.00Total applicable key performance indicator8

Template 2. Economic activity in line with the taxonomy (denominator)

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Amount and share (information to be provided

in monetary amounts and percentages)

Climate change

adaptation

(CCA)

Climate change

mitigation

(CCM)

CCM + CCA

Types of economic activity

%Amount%Amount%Amount

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.26 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the numerator of the

applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.27 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the numerator of the

applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.28 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the numerator of the

applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.29 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the numerator of the

applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.30 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the numerator of the

applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.31 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the numerator of the

applicable key performance indicator

0%0.000%0.000%0.00

Amount and share of other economic activities following the

systematic approach not listed in lines 1 to 6 above in the

numerator of the applicable key performance indicator

0%0.000%0.000%0.00

Total amount and total share of economic activity in line with

the taxonomy in the numerator of the applicable key

performance indicator

Template 3. Economic activity in line with the systematics (numerator)

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Amount and share (information to be provided

in monetary amounts and percentages)

Template 4. Taxonomy-eligible economic activity not in line with the taxonomy

Climate change

adaptation

(CCA)

Climate change

mitigation

(CCM)

CCM + CCA

Types of economic activity

%Amount%Amount%Amount

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.26 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.27 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.28 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.29 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.30 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.31 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of other taxonomy-eligible economic

activity not in line with the taxonomy, not listed in lines 1 to 6

above in the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Total amount and total share of taxonomy-eligible economic

activity not in line with the taxonomy in the denominator of the

applicable key performance indicator

TOYA GROUP 2023 SUSTAINABILITY REPORT

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Amount and share (information to be

presented in monetary amounts and

percentages)

Template 5. Taxonomy non-eligible economic activity

%AmountTypes of economic activity

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.26 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.27 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.28 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.29 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.30 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.31 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

100%27732158.00

(PLN)

Amount and share of other taxonomy non-

eligible economic activity, not mentioned in

lines 1 to 6 above, in the denominator having the applicable key performance

indicator

100%27732158.00

(PLN)

Total amount and total share of taxonomy non-eligible economic activity, in

the denominator having the applicable key performance indicator

TOYA GROUP 2023 SUSTAINABILITY REPORT

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ACCOUNTING POLICY

The basis for calculating the capital expenditure key

performance indicator was the capital expenditure

recognised in the financial statements in

accordance with the applicable International

Financial Reporting Standards (IFRS). The

denominator of the Capex KPI was assigned the

costs accounted for based on:

a. IAS 16 Property, Plant and Equipment, paragraph

73(e)(i) and (iii);

b. IAS 38 Intangible Assets, paragraph 118(e)(i);

c. IAS 40 Investment Property, paragraph 76(A) and

(b) (for the fair value model);

d. IAS 40 Investment Property, paragraph 79(D)(i)

and (ii) (for the cost model);

e. IAS 41 Agriculture, paragraphs 50(b) and (e);

f. IFRS 16 Leases, paragraph 53(h).

INFORMATION ON THE ASSESSMENT OF

COMPLIANCE WITH REGULATION (EU) 2020/852

Individual categories of the TOYA Group capital

expenditure were analysed in accordance with the

provisions of EU Regulation 2021/2178, Annex I, point

1.1.2.1, to determine whether they meet one of the

following conditions:

a. they concern assets or processes related to

economic activity in line with the taxonomy;

b. are part of a plan to expand economic activity in

line with the taxonomy or to enable a taxonomy-

eligible economic activity to adapt to the

taxonomy (“capital expenditure plan”) under the

conditions set out in the second paragraph of this

point 1.1.2.2;

c. relate to the purchase of products of an

economic activity in line with the taxonomy and

to individual measures enabling the target

activity to become low-carbon or enabling it to

reduce greenhouse gas emissions, in particular

relating to the activities listed in points 7.3 to 7. 6

of Annex I of the Climate Delegated Act, as well

as other economic activities listed in the

delegated acts adopted pursuant to Article

10(3), Article 11(3), Article 12(2), Article 13(2),

Article 14(2) or Article 15(2) of Regulation (EU)

2020/852, and provided that such measures are

implemented and brought into operation within

18 months.

No expenditure linked to activity in line with the

taxonomy (point A above) was identified.

Expenditure meeting condition b or c indicated

above was not identified, either.

CONTRIBUTION TO MULTIPLE OBJECTIVES,

DISAGGREGATION OF KEY PERFORMANCE

INDICATORS

Not applicable. Within the TOYA Group’s capital

expenditures for 2023, no expenditures related to

environmentally sustainable activities (in line with the

taxonomy) were identified.

CONTEXTUAL INFORMATION

Not applicable. Within the TOYA Group’s capital

expenditures for 2023, no expenditures related to

environmentally sustainable activities (in line with the

taxonomy) were identified.

TOYA GROUP 2023 SUSTAINABILITY REPORT

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REPORT

KPI OPEX

2023

“Do No Serious

Harm” criteria

Significant

contribution

criteria

“Transition activities” category (20)

“Supporting activities” category (19)

Share of activity in line with the taxonomy in

revenue (%)

Minimum safeguards (17)

Biodiversity (16)

Circular economy (15)

Pollution (14)

Water and marine resources (13)

Climate change adaptation (12)

Climate change mitigation (11)

Biodiversity (10)

Circular economy (9)

Pollution (8)

Water and marine resources (7)

Climate change adaptation (6)

Climate change mitigation (5)

Percentage of operating expenditure, N year

(4)

Operating expenditure (3)

Code or codes (a) (2)

Business activities (1)

T/N

T; N; N/EL

PLN

A. Taxonomy-eligible activity

A.1. Environmentally

sustainable activity (in line with

the taxonomy)

0.000000000.000.00

Operating expenditure for

environmentally sustainable

activity (in line with the

taxonomy) (A.1)

E0000000.00

Including supporting

T00

Including for transition

A.2. Taxonomy-eligible

environmentally

unsustainable activity (activity

not in line with the taxonomy)

0.000.00

Operating expenditure from

taxonomy-eligible environmentally

unsustainable activity (activity not

in line with the taxonomy) (A.2)

0.000.00

A. Operating expenditure for

taxonomy-eligible activity

(A.1+A.2)

B. Taxonomy non-eligible activity

T100.001,316,312.60

Other

100.001,316,312.60

Operating expenditure for

taxonomy non-eligible activity

0.000.000.00100.001,316,312.60

TOTAL (A + B)

TOYA GROUP 2023 SUSTAINABILITY REPORT

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Template 1. Nuclear energy and natural gas activities

Nuclear energy activities

The company conducts the research, develops, demonstrates and deploys, innovative electricity

generating systems generating energy through nuclear processes with minimal waste from the fuel

cycle, finances such activity or is exposed to it.

NOThe company builds and safely operates new nuclear facilities for the production of electricity or process

heat, including for district heating or industrial processes such as hydrogen production, and upgrades them

for safety, using the best available technology, finds or has exposure to this activity.

The company operates safely existing nuclear facilities generating electricity or process heat, including for

district heating or industrial processes such as production of hydrogen from nuclear energy, and upgrades

them for safety, finances these activities or has exposure to them.

Natural gas activities

The company builds or operates a system for the generation of electricity using gaseous fossil fuels,

finances this activity or has exposure to it.

The company builds, upgrades and operates a system for the combined generation of heat/cooling and

electricity using gaseous fossil fuels, finances this activity or has exposure to it.

The company builds, upgrades and operates thermal/cooling cogeneration systems using gaseous

fossil fuels, finances this activity or has exposure to it.

Part of operating expenditure/Total

operating expenditure

TOYA GROUP 2023 SUSTAINABILITY REPORT

Qualification for

the taxonomy by

purpose

Compliance with

the taxonomy by

purpose

00CCM - climate change mitigation

00CCA - climate change adaptation

00WTR - sustainable use and protection of water and marine resources

00CE - transition to a circular economy

00PPC - pollution prevention and control

00BIO - protection and restoration of biodiversity and ecosystems

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Climate change

adaptation

(CCA)

Climate change

mitigation

(CCM)

CCM + CCA

Types of economic activity

%Amoun

%Amount

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.26 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.27 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.28 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.29 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.30 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.31 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the denominator of

the applicable key performance indicator

0%0.000%0.000%0.00

Amount and share of other economic activity in line with the

taxonomy, not listed in lines 1 to 6 above in the denominator

of the applicable key performance indicator

0%0.000%0.000%0.00Total applicable key performance indicator8

Template 2. Economic activity in line with the taxonomy (denominator)

TOYA GROUP 2023 SUSTAINABILITY REPORT

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Amount and share (information to be provided

in monetary amounts and percentages)

Climate change

adaptation

(CCA)

Climate change

mitigation

(CCM)

CCM + CCA

Types of economic activity

%Amount%Amount%Amount

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.26 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the numerator of the

applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.27 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the numerator of the

applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.28 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the numerator of the

applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.29 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the numerator of the

applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.30 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the numerator of the

applicable key performance indicator

0%0.000%0.000%0.00

Amount and percentage of economic activity in line with the

taxonomy referred to in Section 4.31 of Annexes I and II of

Delegated Regulation (EU) 2021/2139 in the numerator of the

applicable key performance indicator

0%0.000%0.000%0.00

Amount and share of other economic activities following the

systematic approach not listed in lines 1 to 6 above in the

numerator of the applicable key performance indicator

0%0.000%0.000%0.00

Total amount and total share of economic activity in line with

the taxonomy in the numerator of the applicable key

performance indicator

Template 3. Economic activity in line with the systematics (numerator)

TOYA GROUP 2023 SUSTAINABILITY REPORT

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Amount and share (information to be provided in

monetary amounts and percentages)

Template 4. Taxonomy-eligible economic activity not in line with the taxonomy

Climate change

adaptation

(CCA)

Climate change

mitigation

(CCM)

CCM + CCA

Types of economic activity

%Amount%Amount%Amount

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.26 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.27 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.28 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.29 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.30 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of taxonomy-eligible economic activity

not in line with the taxonomy referred to in Section 4.31 of

Annexes I and II of Delegated Regulation (EU) 2021/2139 in

the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Amount and share of other taxonomy-eligible economic

activity not in line with the taxonomy, not listed in lines 1 to 6

above in the denominator of the applicable key performance

indicator

0%0.000%0.000%0.00

Total amount and total share of taxonomy-eligible economic

activity not in line with the taxonomy in the denominator of the

applicable key performance indicator

TOYA GROUP 2023 SUSTAINABILITY REPORT

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Amount and share (information to be provided in

monetary amounts and percentages)

Template 5. Taxonomy non-eligible economic activity

%AmountTypes of economic activity

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.26 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.27 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.28 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.29 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.30 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

0%0.00

Amount and percentage of taxonomy non-eligible economic activity referred to in

Section 4.31 of Annexes I and II of Delegated Regulation (EU) 2021/2139 in the

denominator of the applicable key performance indicator

100%1316312.60

(PLN)

Amount and share of other taxonomy non-eligible economic activity, not

mentioned in lines 1 to 6 above, in the denominator having the applicable key

performance indicator

100%1316312.60

(PLN)

Total amount and total share of taxonomy non-eligible economic activity, in

the denominator having the applicable key performance indicator

TOYA GROUP 2023 SUSTAINABILITY REPORT

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REPORT

ACCOUNTING POLICY

The basis for calculating the Opex KPI in

accordance with the provisions of Annex 1 to

Regulation 2021/2178 was to extract from TOYA

Group’s overheads the direct, non-capitalised

expenses, based on the TOYA Group’s financial

statements for the year ended 31 December 2023,

relating to:

• research and development work;

• building renovation activities;

• short-term lease;

• maintenance and repairs; and

• any other direct expenses related to the day-to-

day operation of tangible fixed assets by the

company or a third party to whom activities

necessary to ensure the continuous and efficient

operation of those assets have been outsourced.

INFORMATION ON THE ASSESSMENT OF

COMPLIANCE WITH REGULATION (EU) 2020/852

The individual TOYA Group operating expenditure

categories were analysed in accordance with the

provisions of EU Regulation 2021/2178 to determine

whether they meet one of the following conditions:

a. they relate to assets or processes connected with

economic activity in line with the taxonomy,

including training and other human resource

adjustment needs and direct non-capitalised

costs that represent research and development;

b. are part of a plan to expand economic activity

in line with the taxonomy or to enable a

taxonomy-eligible economic activity to adapt to

the taxonomy (“capital expenditure plan”) under

the conditions set out in the second paragraph

of this point 1.1.2.2;

The analysis did not identify any operating

expenditure meeting at least one of the above

criteria.

CONTRIBUTION TO MULTIPLE OBJECTIVES,

DISAGGREGATION OF KEY PERFORMANCE

INDICATORS

Not applicable. Within the TOYA Group’s 2023

operating expenditure, no expenditure related to

environmentally sustainable activities (in line with the

taxonomy) was identified.

CONTEXTUAL INFORMATION

Not applicable. Within the TOYA Group’s 2023

operating expenditure, no expenditure related to

environmentally sustainable activities (in line with the

taxonomy) was identified.

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c. relate to the purchase of products of an

economic activity complying with the

systematics and to individual measures enabling

the target activity to become low-carbon or

enabling it to reduce greenhouse gas emissions,

in particular relating to the activities listed in

points 7.3 to 7.6 of Annex I of the Climate

Delegated Act, as well as other economic

activities listed in the delegated acts adopted

pursuant to Article 10(3), Article 11(3), Article

12(2), Article 13(2), Article 14(2) or Article 15(2) of

Regulation (EU) 2020/852, and provided that such

measures are implemented and brought into

operation within 18 months.

TOYA GROUP 2023 SUSTAINABILITY REPORT

PEOPLE

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3. ENVIRONMENT

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6. ABOUT THE

REPORT

EMPLOYEES

Toya Group is a growing and forward-looking

workplace. We employ 550 people in all our

companies, including 325 in Poland. Most of them

on full-time, permanent employment contracts. We

know that Toya Group’s development would not be

possible without qualified staff representing many

different fields of business activity. We value our

employees’ commitment, creativity and

experience. We provide attractive working

conditions, remuneration competitive with market

rates, and care for a friendly and creative

atmosphere. In selected Group companies, a

package of non-wage benefits is available,

including private medical care, life insurance, co-

financing of sports activities and tickets for cultural

events, Christmas gift cards, discounts on company

products and integration meetings. There are no

collective agreements in place at Toya Group

companies.

GRI

2-30

GRI

3-3

GRI

401-2

GRI

2-7

TOYA Group employees:

TOYA S.A.TOYA GroupBy gender:

73144women

252406men

325550all

TOYA S.A.TOYA Group

Indefinite term

employment:

59130women

197351men

256481all

TOYA S.A.TOYA Group

Fixed term employment:

1414women

5555men

6969all

TOYA S.A.TOYA Group

Employed full-time:

71142women

247400men

318542all

TOYA S.A.TOYA Group

Employed part-time:

22women

56men

78all

BEST PRACTICE

Thanks to RPA (Robotic Process Automation)

technology and partnership with a leading

technology company, a robot named Stefan

has become a key component in the bank

statement posting process at TOYA S.A. It settles

up to 8,000 transfers per month, performing up

to 240,000 clicks. By relieving humans of time-

consuming and tedious tasks, it has improved

the team’s work comfort level.

TOYA GROUP 2023 SUSTAINABILITY REPORT

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REPORT

34 persons (23 of them in Poland) cooperated with

us on terms other than employment contracts.

Among them were members of the Management

Board and the Supervisory Board – a total of 10

persons. Their tasks and powers are governed by the

Commercial Companies Code and the Regulations

of the Supervisory Board and the Regulations of the

Management Board of TOYA S.A. A further 9 persons

were performing work under contract of mandate

and the rest were temporary workers performing

warehouse work. One such contract concerned

programming work. In total, all contracts, other than

employment contracts, accounted for 4% of the

forms of employment across the Group.

The TOYA Group is growing all the time, which

involves recruiting for new positions. A total of 16% of

employees working in the four companies joined the

team in 2023. The recruitment process mainly

assesses the competence, experience and

ambitions of employees.

GRI

2-8

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TOYA S.A.TOYA Group

MenWomenMenWomen

292318

Number of employees entitled to parental leave in 2023

1238

Number of employees who have taken parental leave in 2023

0215

Number of employees who returned from parental leave in

2023

1225

Number of employees who returned to work after parental leave and

were still employed 12 months after their return

100%100%67%63%

Return to work rate of employees who have taken parental

leave

100%100%100%100%

Retention rate of employees who have taken parental

leave

At TOYA Group, we create an atmosphere

conducive to the use of parental and maternity

leave. Parental leave can be taken by all

employees, regardless of gender, within the

framework of rights under the law. In 2023, 39

persons were entitled to such leave within the TOYA

Group, with 31 persons at TOYA S.A. There were 11

persons on parental leave.

GRI

401-3

GRI

401-1

Total number of new employees hired in the organisation

during the reporting period (percentage in brackets)

TOYA S.A.TOYA Group

4 (1.23%)15 (2.70%)Women

30 (9.23%)74 (13.33%)Men

11 (3.38%)31 (5.59%)Under 30 years

21 (6.45%)51 (9.19%)30–50 years

2 (0.62%)7 (1.26%)Over 50 years

Total number of employees who left the organisation during

the reporting period (percentage in brackets)

TOYA S.A.TOYA Group

6 (1.85%)11 (1.98%)Women

32 (9.85%)83 (14.85%)Men

9 (2.77%)24 (4.32%)Under 30 years

23 (7.08%)60 (10.81%)30–50 years

6 (1.85%)10 (1.80%)Over 50 years

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REPORT

HEALTH AND SAFETY

TOYA GROUP 2023 SUSTAINABILITY REPORT

The TOYA Group operates in all its companies in

compliance with the relevant legislation and meets

OHS standards. Work safety issues at TOYA S.A. are

supervised by the OHS Officer. At TOYA Romania

S.A., these tasks are carried out by an external

specialist ﬁrm, EURAMIS Health & Safety. In

accordance with local regulations companies

located in China provide employees with all the

necessary information on occupational health risks

and ensure adequate precautions. The Group’s

workplace safety procedures are monitored and

evaluated.

All employees of the Group’s parent company

undergo initial and periodic OHS training, and

additional refresher training is carried out after every

recorded accident or near miss. The company also

ensures that employees starting work with

equipment and machinery, especially in

warehouses, are properly trained. At TOYA Romania

S.A., safety training is also provided to all employees

(4 times a year).

GRI

3-3

GRI

403-3

GRI

403-5

GRI

403-6

YATO Tools (Jiaxing) and YATO Tools (Shanghai)

organises training courses in the form of theoretical

and practical classes for administrative staff (2-3

times a year). The trained individuals then pass on

and implement the principles among the rest of the

staff, including new employees.

TOYA S.A. ensures that employees have access to

private medical care. The package is ﬁnanced by

the employer (with a partial symbolic payment by

the employee). In addition, the employee can

extend the private healthcare programme to their

family members and partners (at an additional

cost). TOYA Romania S.A. also guarantees individual

subscriptions for its staff, provided by the largest

private healthcare provider in Romania. YATO Tools

(Jiaxing) and YATO Tools (Shanghai) offer free

medical insurance to employees with more than 5

years of service.

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REPORT

EDUCATION AND DEVELOPMENT

TOYA GROUP 2023 SUSTAINABILITY REPORT

The global scale of the business means that our

employees also have the opportunity for

professional development in an international

environment. The Group organises and ﬁnances a

variety of training courses for its staff, ensuring that

employees have equal access to opportunities to

improve their qualifications and competencies. In

line with the adopted solutions, training can be

initiated by both the supervisor and the employee

themselves. The most common forms of training

include:

• external training:

− in out-of-school forms, e.g. professional courses,

seminars, webinars, congresses, meetings

organised by professional organisations;

− in in-school forms, i.e. higher education,

postgraduate studies;

• in-house training:

− in-house training, on-the-job training carried out

in the form of self-education through

consultation with superiors, analysis of legislation,

analysis of professional literature related to the

performance of the tasks of the position.

An important role in achieving the established

training objectives rests with the proper identification

of current and future training needs. This process

involves both the Board of Management and the

managers of the organisational units, as well as the

employees themselves. The analysis of training

needs takes into account:

• current needs related to the tasks performed in a

given position (e.g. change in legal regulations);

• the need to prepare the employee to assume

new responsibilities (e.g. promotion, change of

position);

• the current needs of the company;

• individual employee development.

GRI

404-1

Average number of training hours by gender:

TOYA S.A.*

11.92Women

7.81Men

TOYA S.A.*

14.35Executive staff

7.41Middle management

8.54Specialists

8.41Other employees

*Other TOYA Group companies did not keep training records in

2023

Average number of training hours by organisational

structure:

*Other TOYA Group companies did not keep training records in

2023

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EQUALITY AND DIVERSITY

TOYA GROUP 2023 SUSTAINABILITY REPORT

Employee relations and decisions regarding

employees are based on full gender neutrality at

TOYA Group and solely on merit. The organisation

does not have a separate diversity policy, but only

the competences or experience and ambitions of

the employees are assessed both in the recruitment

process and during employment.

GRI

3-3

GRI

405-1

Diversity groups in the management bodies of TOYA Group companies:

Employees of TOYA Group companies in the following diversity groups:

Over 50 years30–50 yearsUp to 30 yearsMenWomen

Company

77%15%8%92%8%

TOYA Group

80%20%0%90%10%

TOYA S.A.

Other employees

SpecialistsMiddle management

Executive staff

Company

TOYA Group

27.25%44.11%20.88%26.92%Women

72.75%55.87%79.12%73.08%Men

24.78%17.93%4.05%0%Up to 30 years

60.72%79.24%90.39%78.85%30–50 years

14.50%4.33%5.56%21.15%Over 50 years

TOYA S.A.

8.99%46.52%18.52%30.77%Women

91.01%53.48%81.48%69.23%Men

17.42%6.73%3.70%0.00%Up to 30 years

66.29%75.96%74.07%61.54%30–50 years

16.29%17.31%22.23%38.46%Over 50 years

This also applies to company officers and key

managers.

We do not allow any discrimination or socially

unacceptable behaviour and we are pleased that

this approach is shared by all employees.

LETTER FROM THE

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1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

At TOYA S.A., remuneration issues, rules for awarding

prizes and other work-related benefits are defined in

the Remuneration Regulations. The remuneration

rules for the members of the Management Board

and Supervisory Board are set out in a separate

document. Pursuant to provisions, our objective with

regard to top management is to provide balanced

and competitive salaries that are geared towards

continuous performance and that motivate to

perform tasks to the best standards. The

remuneration of top management consists of a fixed

part and may consist of a variable part.

GRI

2-19

GRI

2-20

The remuneration policy for Management and

Supervisory Boards’ members is a public document

and can be found on the TOYA Group website.

TOYA Romania S.A. provides employees with a fixed

salary and variable allowances, including

performance-related pay and bonuses. YATO Tools

(Jiaxing) and YATO Tools (Shanghai) take into

account the position occupied in the structure and

work performance in the process of determining

remuneration. The companies have an employee-

consulted remuneration plan in place, taking into

account the possibility of salary changes depending

on external and internal factors.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

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1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

The salary was determined on the basis of the sum of

the total remuneration of employees working as at

31/12/2023, i.e. fixed remuneration, variable

remuneration, cash and non-cash benefits and all

other payments paid to employees in the calendar

year (in a 12-month period). The salaries of part-time

employees have been converted to the full-time

value and the salaries of employees hired during the

year have been converted to the value for the full

calendar year.

TOYA GROUP 2023 SUSTAINABILITY REPORT

GRI

2-21

The ratio of the total annual remuneration for the best-paid

individual in the organisation in each country where the

organisation conducts significant operations to the average

annual total remuneration of all employees (excluding the

best-paid individual):

4.07 to 1

TOYA Group

5.61 to 1

TOYA S.A.

GRI

405-2

Level of women’s basic salary compared to men’s salary by grade*:

The relationship between the total salary of women and men by grade:

OthersSpecialistsMiddle management

Executive staff

Management Board

Company

110%101%127%151%n/a**

TOYA S.A.

OthersSpecialistsMiddle management

Executive staff

Management Board

Company

89%96%142%146%n/a**

TOYA S.A.

* Data relates only to TOYA S.A. as the parent company

** The company’s management board has no female members

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TOYA GROUP 2023 SUSTAINABILITY REPORT

ABOUT THE REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

GRI

2-2

GRI

2-1

GRI

2-3

GRI

2-4

GRI

2-5

The report is the first ESG report of the TOYA Group

which comprises four companies: TOYA S.A., TOYA

Romania S.A. with its main office in Bucharest and

two companies in China – YATO Tools (Shanghai)

Co., Ltd. with its registered office in Shanghai and

YATO Tools (Jiaxing) Co., Ltd. with its registered office

in Baibu Town. The parent company is TOYA S.A.

with its registered office in Wrocław at ul.

Sołtysowicka 13/15. The other three companies are

subsidiaries.

The report meets the requirements for disclosure of

non-financial information set out in the Act of 15

December 2016 amending the Accounting Act,

implementing Directive 2014/95/EU of the European

Parliament and of the Council of 22 October 2014

into the Polish legal system. According to this Act, an

entity may apply any rules, including its own rules,

national, EU or international standards, norms or

guidelines, when preparing a statement on non-

financial information, so the report has been

prepared in accordance with the requirements of

the Global Reporting Initiative Standards (GRI

Standards). The report covers the period from 1

January 2023 to 31 December 2023.

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

There were no significant changes in the size,

structure or form of the TOYA Capital Group’s

operations during the period covered by this report.

Beginning with the 2023 issue, the Group will report

on an annual basis. The report was published in

March 2024.

The report has not been subject to third-party

verification. As part of the audit of the ﬁnancial

statements, the Group auditor only veriﬁes the

consistency of data in the ESG report with the data

presented in the ﬁnancial statements. The

Management Board was involved in all stages of the

report’s preparation - from data collection to

verification of the final content.

If you have any questions regarding the report or ESG issues

within TOYA Group, please write to ir@yato.pl

Chapter 1 “About the TOYA

Group”

Brief description of the entity’s business model

Chapter 1 “About the TOYA

Group”

Chapter 3 “Environment”

Chapter 5 “People”

Key non-financial performance indicators related to the

entity’s activities

Chapter 1 “About the TOYA

Group”

Chapter 3 “Environment”

Chapter 5 “People”

A description of the policies applied by the entity in relation to social,

labour, environmental, respect for human rights and anti-corruption

issues, and a description of the results of applying these policies

Chapter 3

“Environment”

Chapter 5 “People”

A description of significant risks associated with the entity’s activities that

could have an adverse effect on the matters referred to in point 3, including

risks associated with the entity’s products or its relations with the external

environment, including business partners, and a description of management

of those risks

Mandatory disclosures under the Accounting Act

TOYA GROUP 2023 SUSTAINABILITY REPORT

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1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

SIGNIFICANCE DEFINITION PROCESS

GRI

3-1

GRI

2-29

A survey sent out to six key stakeholder groups

helped us to best prepare this report and identify

relevant topics. 161 respondents assessed the

impact on 18 environmental, community and

corporate governance issues. Those respondents

judged whether TOYA Group had any impact on a

given issue and, if so, whether the impact was

positive, negative or both positive and negative.

Issues that were identified as significant based on

the work carried out were also assessed by an

independent advisor. The analysis was carried out in

January 2023 and reviewed in December of the

same year by a consulting ﬁrm which, based on an

analysis of the environment, including relevant

topics identified by other industry players and its

experience, identified those on which the TOYA

Capital Group has the greatest impact.

List of significant topics identified:

TOYA GROUP 2023 SUSTAINABILITY REPORT

SIGNIFICANT TOPICS

LETTER FROM THE

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GRI

3-2

Environmental area (E)

Social area (S)

Corporate governance area (G)

• Climate

• Circular economy

• Employee health and safety

• Equality and diversity

• Employee engagement,

development and well-being

• Employees in the value chain

• Consumers and end users –

product safety and

responsible selling

• Ethics and corporate governance

The report was prepared in

accordance with the

requirements of

GRI Standards

This is the

first

TOYA Group ESG report

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

Statement of application

TOYA Group has submitted the report in accordance with the GRI Standards

for the period from 01/01/2023 to 31/12/2023.

Application of GRI 1

GRI 1: Basics 2021

Applicable GRI sector standards

Not applicable

Explanation

Reasons

Requirements (omitted)

Page

number

Disclosure

GRI

Standard/

other

source

General disclosures

5, 67

2-1 Organisation data

GRI 2:

General

disclosures

2021

2-2 Entities included in sustainability

reporting

2-3 Reporting period, frequency and

contact details

2-4 Correction of information

2-5 External verification

5, 19, 24

2-6 Business types, value chain and

other business relationships

2-7 Employees

2-8 Non-employee contributors

2-9 Management structure and

composition of management bodies

2-10 Nomination and election of

members of the top management

2-11 Chairman of the top management

body

2-12 Role of the top management body

in overseeing impact management

2-13 Delegating responsibilities in

impact management

2-14 The role of the top management

body in sustainability reporting

2-15 Conflict of interests

2-16 Communicating critical issues

GRI INDEX

TOYA GROUP 2023 SUSTAINABILITY REPORT

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2-17 Collective knowledge of the top

management body

GRI 2:

General

disclosures

2021

2-18 Evaluation of the top management

performance

642-19 Salary policy

642-20 Salary determination process

The Group

plans to

disclose

information

on the

percentage

of salary

increases in

future reports

This is the

Group’s first

ESG report.

Previously,

data on

median and

annual salary

index were

not collected

Ratio of the

percentage increase

in total annual

compensation for the

highest-paid person

in the organisation to

the median

percentage increase

in total annual

compensation for all

employees

(excluding the

highest-paid person)

2-21 Total annual salary ratio

2-22 Statement on the sustainable

development policy

112-23 Commitments included in policies

2-24 Implementation of commitments

included in policies

2-25 Remediation processes for

negative impacts

2-26 Mechanisms for seeking advice

and raising concerns

152-27 Compliance with laws and regulations

2-28 Membership of associations and

organisations

2-29 Approach to stakeholder

engagement

582-30 Collective labour agreements

Significant topics

693-1 Process for identifying significant topicsGRI 3:

Significant

topics 2021

693-2 List of significant topics

Climate

283-3 Management of significant topicsGRI 3:

Significant

topics 2021

TOYA GROUP 2023 SUSTAINABILITY REPORT

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REPORT

28302-1 Energy consumption within the

organisation

GRI 302:

Energy

2016

303-1 Use of water as a shared

resource

GRI 303:

Water

and

waste

water

2018

28303-5 Water consumption

305-1 Direct greenhouse gas

emissions (scope 1)

GRI 305:

Emissions

2016

305-2 Indirect greenhouse gas

emissions (scope 2)

Circular economy

323-3 Management of significant topics

GRI 3:

Significant

topics 2021

301-3 Recovered products

and packaging

GRI 301:

Resources

2016

33306-3 Waste generated

GRI 306:

Waste

2020

33306-4 Recovered waste

Employee health and safety

613-3 Management of significant topics

GRI 3:

Significant

topics 2021

61403-3 Unit responsible for managing

occupational safety

GRI 403:

Health

and safety

2018

61403-5 Training in occupational safety for

employees

403-6 Health promotion among

employees

Equality and diversity

633-3 Management of significant topics

GRI 3:

Significant

topics 2021

405-1 Composition of supervisory

bodies and staff by gender, age,

minority membership and other

diversity indicators

GRI 405:

Diversity

and equal

treatment

2016

405-2 Male to female ratio of

basic salary by position held

TOYA GROUP 2023 SUSTAINABILITY REPORT

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1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

Employee engagement, development and well-being

583-3 Management of significant topicsGRI 3:

Significant

topics 2021

401-1 Total number and percentage of

new employees hired and total number

of departures during the reporting period

GRI 401

Employment

2016

401-2 Benefits (perks) provided to full-time

employees

60401-3 Parental leaves

Employees in the value chain

243-3 Management of significant topicsGRI 3:

Significant

topics 2021

25414-1 Percentage of new suppliers that have

been assessed according to social criteria

GRI 414:

Social

assessment

of suppliers

2016

Consumers and end users – product safety and responsible selling

193-3 Management of significant topicsGRI 3:

Significant

topics 2021

417-1 Labelling obligations for products

and services

GRI 417:

Marketing

and

labelling

2016

Ethics and corporate governance

133-3 Management of significant topicsGRI 3:

Significant

topics 2021

205 -2 Training for employees and

managers on anti-corruption

policies and procedures

GRI 205:

Anti-

corruption

activities

2016

TOYA GROUP 2023 SUSTAINABILITY REPORT

LETTER FROM THE

MANAGEMENT BOARD

1. TOYA GROUP 2. RELATIONS WITH STAKEHOLDERS

3. ENVIRONMENT

4. TAXONOMY

5. PEOPLE

6. ABOUT THE

REPORT

Photo authors: Vardan Papikyan (p. 30),

Pedro Henrique Santos (p. 34), Rafael Macedo (p. 35),

Sander Weeteling (p. 42), Amanda Klamrowski (p. 70)

TOYA S.A.

ul. Sołtysowicka 13/15

51-168 Wrocław

e-mail: ir@yato.pl