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al and external: fuel, electricity, heating and district heating.2 ENVIRONMENTAL SUSTAINABILITY4 SUSTAINABILITY REPORT 2 Flender calculates its annual greenhouse gas footprint using the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (the GHG Protocol), the most widelyused international standard for accounting of greenhouse gasemissions. Greenhouse gases (GHG) include carbon dioxide, methane, nitrous oxide and fluorinated gases (hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride and nitrogen trifluoride (NF ). Other gases such as PFC, HFCand NF 3 are not used in ouroperations. The GHG Protocol divides emissions into the following three types: cope 1 emissions (directemissions); cope 2 emissions (indirect emissions from energy purchases such as electricity and district heating); and cope 3 emissions (other indirect emissions along the value chain).Direct and indirect GHG emissions sources at Flender include: cope 1 emissions: those directlyrelated to fuel consumption, including natural gas, LPG, motor fuels, heating oiland acetylene, and emissions ofother greenhouse gases from manufacturing operations; cope 2 emissions: the consumption of purchased electricity and district heating energy for product manufacture; and cope 3 emissions: emissions from upstream and downstream processes, such as those caused by business travel, investments, transport and sales, but also emissions caused by purchasing products and services fromsuppliers.4.4 ANAGING OUR CARBON EMISSIONS: OUR PATH TO NET-ZERO EMISSIONS Source: Greenhouse Gas Protocol Corporate Value Chain Accounting and Reporting Standard, 2, . 5. Note that perfluorocarbons (PCFs), hydrofluorocarbons (HFCs) and nitrogen trifluoride (NF are not relevant to our Company.Our strategy to net-zero emissions Our targets to reduce our CO2 footprint by 2: CH4CO2N2OHFC SCOPE 2 INDIRECTSCOPE 1 DIRECTSCOPE 3 INDIRECT UPSTREAM REPORTING COMPANY D