June 2016 ATLAS COPCO PROHIBITED AND DECLARABLE LISTS

WHY A PROHIBITED AND DECLARABLE LIST?  Purpose of the list is to ensure that: –Atlas Copco products and processes meets legal and customer requirements –Exposure to hazardous chemicals and materials is minimized  Scope: –products sold by Atlas Copco –items delivered to Atlas Copco by any of its business partners like suppliers, contractors, subcontractors, joint venture partners, agents, … –production processes carried out by or outsourced (as defined by ISO14001) by Atlas Copco, not the processes of our suppliers 2

RESTRICTED LIST  DECLARABLE LIST  Problem: –Atlas Copco have a duty to inform customers if products contains specific substances (e.g. substances included in EU Candidate list) –Restriction of substances does not provide us with information if and where substances are used  we cannot fulfil that requirement  Change to Declarable list: –Suppliers must provide information if any item deleivered to us contains substances in Declarable list –We must provide customers with infomration if any product sold contains substances in Declarable list 3 Why change and what does it mean?

THREE DIFFERENT LISTS 4 Actions needed Business partners and involved Atlas Copco staff shall check for compliance with the lists and take actions as above Prohibited substances Phase-out substances Declarable substances Existing items DO NOT USEREPLACEAVOID/REPORT IF USED New itemsDO NOT USE AVOID Prohibited substances must not be included unless clearly exempted in the list Phase-out substances will soon be included in Prohibited list and must be phased out Content of Declarable substances must be reported (we are obliged to provide such information to customers)

CLARIFICATIONS OF SCOPE  Some legal references are limited to a product type (e.g. electronics) or a region (e.g. Europe). Atlas Copco does not make this distinction!  If national rules are more restrictive in the individual case such national rules must be followed.  A substance can be both prohibited and declarable depending on use.  Compliance with Atlas Copco Prohibited list and correct declaration of Declarable substances is part of the 10-Criteria letter for suppliers. 5 Compliance Obligations

ABOUT THE LIST 6 Example of know uses -for illustration only, not limited Exempted uses are given if applicable Some legal references are limited to a product type (e.g. electronics) or a region (e.g. Europe). Atlas Copco does not make this distinction! The CAS-number is given if the entry is for an single substance. If the word several is given the entry is for a family or group of substances. The concentration limits may vary between materials and product. General threshold limit refers to 0.1 weight-% in articles. For EEE and RoHS substances it refers to homogeneous materials. The word all indicates that the prohibition applies to all substances of a family/group. The word selected indicates that selected substances of a family/group are prohibited.

ABOUT THE LIST 7 Example of know uses -for illustration only, not limited Exempted uses are given if applicable Some legal references are limited to a product type (e.g. electronics) or a region (e.g. Europe). Atlas Copco does not make this distinction! The CAS-number is given if the entry is for an single substance. If the word several is given the entry is for a family or group of substances. The concentration limits may vary between materials and product. General threshold limit refers to 0.1 weight-% in articles. For EEE and RoHS substances it refers to homogeneous materials. The word all indicates that the prohibition applies to all substances of a family/group. The word selected indicates that selected substances of a family/group are prohibited.

TOOLS  External partners can find the lists on and under section Sustainability/business partnerswww.atlascopco.com/gsd  Full excel list with all substances having a compliance obligation  For practical reasons short lists are available –Prohibited list –Declarable list –Phase-out list is shown as Annex 2 in both Prohibited and Declarable lists 8 Where are the lists found?

COMMITTED TO SUSTAINABLE PRODUCTIVITY. 9