The Time Is Now

As climate change intensifies,

urgent action is critical.

Buildings and construction

account for 37% of energy-

related emissions globally.

ANNUAL REPORT

& FINANCIAL

STATEMENTS 2024

Crystal Bridges

Museum of

American Art

Arkansas, USA

Insulated Panels

Morin Pulse Panels

SUMMARY FINANCIALS

1 Earnings before finance costs, income taxes, depreciation and amortisation

2 Operating profit before amortisation of intangibles

3 Trading profit divided by total revenue

REVENUE

€ 8.6 bn

+6%

2023: €8.1bn

EBITDA

€ 1.14 bn

+7%

2023: €1.07bn

PROFIT AFTER TAX

€691m

+6%

2023: €654m

TRADING PROFIT

€907m

+3%

2023: €877m

TRADING MARGIN

1 0.5 %

-30bps

2023: 10.8%

EPS

3 6 5.2 c

+4%

2023: 352.3c

Annual Report & Financial Statements 2024

Kingspan Group plc

CONTENTS

OUR STRATEGY 4

OUR IMPACT 24

OUR GLOBAL REACH 25

BUSINESS & STRATEGIC REPORT

Chairman’s Statement 26

Our Business Model & Strategy 30

Chief Executive’s Review 38

Financial Review 50

Risk & Risk Management 56

Sustainability Report 66

DIRECTORS’ REPORT

The Board 84

Report of the Nominations & Governance Committee 88

Report of the Remuneration Committee 100

Report of the Audit & Compliance Committee 130

Report of the Directors 142

CSRD SUSTAINABILITY STATEMENT

Limited Assurance Report 156

General Information 160

Environmental Information 170

Social Information 208

Governance Information 232

Appendices 238

FINANCIAL STATEMENTS

Independent Auditor’s Report 254

Financial Statements 264

Notes to the Financial Statements 273

OTHER INFORMATION

Alternative Performance Measures 325

Principal Subsidiaries and Substantial Undertakings 328

Shareholder Information 330

Corporate Information 331

Group 5 Year Summary 332

Orlando International

Airport

Florida, USA

Data Solutions

ConCore

2500 raised

access floor panel

Completing the

Envelope Strategy

Kingspan Group plc

Annual Report & Financial Statements 2024

Completing

the Envelope

OUR STRATEGY

Kingspan’s mission is

to accelerate a net zero

emissions built environment.

Through the Completing

the Envelope strategy we offer

customers a wider range of

high-performance building

envelope solutions which

deliver energy efficient, lower

embodied carbon buildings

and can also generate

renewable energy.

Sister Lillian Murphy

Community Housing

California, USA

Insulated Panels

Morin Integrity S-16

wall panel system

Completing the Envelope

OUR HERITAGE

We leverage our rich

heritage in both innovation

and sustainability, applying

them to a broad portfolio of

products to help accelerate

a net zero emissions built

environment.

WHAT WE DO

Building on our position

as both the global

leader in insulated panel

and high-performance

insulation, we have

developed a leading

building envelope

solutions business.

Complementing our

leading position in

insulation, we offer a wider

range of building envelope

solutions with energy

efficiency at their core,

including:

1982

1997

1980

Kingspan manufactures its

first insulation board, a key

component in roofing systems

Kingspan manufactures its

first daylighting product

Kingspan acquires

Ward Building

Components (Est 1949)

Roofing + Waterproofing

Leveraging our position

as a market leader in the

manufacturer of high-

performance flat roof

insulation we have established

a c.€1bn presence in the

built-up roofing market in

which insulation represents

the single largest value

component.

Discover more about Roofing

+ Waterproofing on page 31

Light, Air + Water

Complementing our high

performance insulated panel

building envelope solutions,

Kingspan Light, Air + Water

provides integrated solutions

for optimising natural

daylight, increasing natural

air flow and ventilation, and

managing heat and smoke

in the event of a fire.

Discover more about Light,

Air + Water on page 31

Kingspan manufactures its

first insulated panel for the

roofing market

1976

2001

Kingspan acquires US

raised access floor

provider Tate

2008

Kingspan enters the

US panels market

with the acquisition

of Metecno

Technical Insulation

Kingspan is a global supplier

of pre-insulated pipe systems

for district heating and

manufactures innovative, high-

performance products in both

piping insulation and ducting

insulation.

Discover more about Technical

Insulation on page 31

2015

2021

2024

Kingspan acquires leading

panel and profile manufacturer

Joris Ide (Est 1985)

Kingspan acquires US

raised access floor

provider Tate

Kingspan acquires Logstor (Est

1964), the world’s first pre-

insulated pipe manufacturer

In 2024, Kingspan enters the wood fibre

insulation market with a controlling stake

in Steico (Est 1986)

2022

Kingspan acquires Ondura

(Est 1944) and launched its

Roofing + Waterproofing

Division

Data Solutions

Leading global provider of

innovative solutions in the

data sector. Our factory-

built products offer rapid

deployment, consistent

world class quality and

adaptability for a range

of energy efficient cooling

solutions.

Discover more about Data

Solutions on page 31

1 100mm panel

2 5,000m

roof

3 Across lifecycle modules A-C

THE LOWER EMBODIED CARBON ENVELOPE

Kingspan’s product suite is uniquely

positioned to deliver an energy

efficient, lower embodied carbon

building envelope which can also

generate renewable energy.

Kilon LEC Multiwall

50% recycled content

36%

less embodied carbon

Derbicoat

NT (base sheet)

30% recycled content

5,000 kg

e savings

RMG600+

80% recycled content

57%

less embodied carbon

Tate Grid+ LEC

61%

less embodied carbon

Multichannel LEC

75% recycled content

63%

less embodied carbon

Water & Energy

Rainwater harvesting solutions

QuadCore LEC

48%

recycled content

16%

1,3

less embodied carbon

Annual Report & Financial Statements 2024Kingspan Group plc

HemKor

80% bio-based content

Wood Fibre Insulation

80%+ bio-based content

Bio-based Building Materials

- Wood fibre insulation

- Wood based structures

PowerPanel

Technical Insulation

HOW DO WE COMPARE

Compared to our peers, we provide a much more comprehensive suite of solutions across the building envelope.

Building Envelope Solutions

Kingspan Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6

Insulated panel

✓ ✓ ✓ ✓

Roof lighting

✓

Wall lighting

✓

Integrated roof systems

✓ ✓ ✓ ✓

Integrated solar roofing panel

✓

Complementary products

Water management

✓

District heating

✓

Flooring

✓

Completing the Envelope

See Case Studies on page 22

Sister Lillian Murphy

Community Housing

California, USA

Insulated Panels

Morin Integrity S-16

wall panel system

Annual Report & Financial Statements 2024

Kingspan Group plc

Insulation Manufacturing

Kingspan Peer 1 Peer 2 Peer 3 Peer 4 Peer 5

QuadCore

✓

Optim-R

✓ ✓ ✓

Phenolic

✓

Hemp

✓

Wood

✓ ✓ ✓

Mineral Fibre

✓ ✓ ✓ ✓ ✓

XPS

✓ ✓ ✓ ✓

EPS

✓ ✓ ✓

PIR

✓ ✓ ✓

Greenhill School

Valdes STEM +

Innovation Centre

Texas, USA

Data Solutions

ConCore

1250;

ConCore

1550;

ConCore

2000 raised

access floor panels

Completing the Envelope

Kingspan GreenGuard

XPS compressive strength and moisture resistant

Therma

PIR Adaptable and strong thermal performance

K-Roc

Stonewool for a variety of applications

KoolDuct

Insulation for internal ventilation / piping

FULL SPECTRUM OF SOLUTIONS

FOR ALL APPLICATIONS

Increasingly prescriptive regulations

place added emphasis on multiple

insulation solutions. Kingspan

offers, by some distance, the widest

array of products and solutions.

These applications include, but

are not limited to:

Thermal

Return on Investment

Space

Walkability

Fire

Compression

Acoustics

Price

Speed

Bio-Based or Recycled Content

Steico

Wood fibre insulation

Kooltherm

The most complete balance of space

and thermal performance

QuadCore LEC

Leading thermal performance with

lower embodied carbon

Optim-R

Ultra thin, ultra high thermal

performance

AlphaCore

Premium thermal and fire performance

Troldtekt

Wood based acoustic solutions

Kingspan Group plc

WHAT ARE THE

BENEFITS?

Annual Report & Financial Statements 2024

Completing the

Envelope benefits

all stakeholders

SHAREHOLDERS

Consistent long-term performance, platforms

for future growth

ENVIRONMENT

Future proofed, resource efficient buildings

CUSTOMERS

Supporting customers’ carbon ambitions and

future proofing asset values

COMMUNITIES

Making a positive impact on communities

University of Guelph

Ontario, Canada

Insulated Panels

AD300; AD300R; AD150

Vicwest wall panel systems

Consistently

Outperforming

Consistent high

quality cash/earnings

growth supports

substantial share price

outperformance.

SHAREHOLDERS

Globalisation

The Group’s

globalisation

mitigates against

regional cyclicality

and provides new

platforms for growth.

Annual Report & Financial Statements 2024

Kingspan Group plc

432%

169%

107%

KINGSPAN

EUROSTOXX 600

CONSTRUCTION &

MATERIALS SECTOR

EUROSTOXX 600

10 YEAR TOTAL SHAREHOLDER RETURN (TO

31/12/2024) ASSUMING DIVIDENDS REINVESTED

Source: Bloomberg

Our growth strategy

has underpinned

sustained long-term

performance and

provides compelling

capital deployment

opportunities.

Nova Post

Kyiv, Ukraine

Insulated Panels

KS1150 insulated

wall panel

20%

10 year CAGR in

cashflow

16%

10 year CAGR in

revenue

REVENUE

€8,608M

(2024)

AMERICAS

ROW

IRELAND & UK

EUROPE

AMERICAS

EUROPE

REVENUE

€1,126M

(2009)

ROW

IRELAND & UK

Completing the Envelope

ENVIRONMENT

Our solutions make a significant positive impact

on the resource efficiency of buildings

Our daylighting systems sold in

2024 create 3.8 billion lumens of

natural light annually

Enough to light

up 470k homes

In 2024 alone, we

recycled 1.1 billion

waste plastic bottles³

Enough recycled

bottles to circle Earth

over five times

Over 44.1 billion litres of

rainwater will be harvested by

our tanks produced in 2024²

Enough water to fill over

550 million baths

172 million tonnes of CO

e will

be saved over the life of our

insulation systems sold in 2024

Enough to power a major

airline for over 11 years

NATURAL

DAYLIGHT

3.8 bn

ULTRA ENERGY

EFFICIENT

172m

CONSERVED

WATER

4 4.1bn

RECYCLED

MATERIAL

1.1 bn

FEASABILITY

DEVELOPMENT

TEST &

VALIDATION

PRODUCTION

& LAUNCH

PRELIMINARY

INVESTIGATION

SCOPE

ENGAGE

NEW

MATERIAL

PRODUCTION

TRIALS

MARKET

LAUNCH

SUPPLIER

COLLABORATION

INNOVATION

Al Shaheed Park

Phase III

Kuwait City, Kuwait

Insulated Panels

KingZip

Infiniti standing seam

system; Aluminium Composite Panel

1 Assumes 60 year product life; based on an EU airline disclosure of

over 15.4m tonnes of CO2e emissions for 12 months to March 2024

2 Assumes a 20 year product life

3 Equivalent number of PET bottles by weight

4 Assumes 10 x 60W bulbs per home

IDEA GENERATION

Asset values beginning to reflect energy

performance of buildings

CUSTOMERS

72%

of the top 100 office

occupiers in NYC have

carbon commitments

80%

of the top 100 office

occupiers in Paris have

carbon commitments

7.1 %

North America average

rental premium for green-

certified, class A office stock

across 8 major markets in

the US and Canada

1 1.6 %

London average rental

premium for green-

certified, office stock

9.9 %

Asia average rental premium

for green-certified, class A

office stock across 9 major

markets in Asia

4.2%

JLL’s study highlights that each

additional ‘step’ of an Energy

Performance Certificate (EPC)

results in an average 4.2%

increase in rents

Our range of solutions provide:

Mester Építő

Hungary

Insulated Panels

Evolution QuadCore

Single System Warranty

Product Quality/Integrity

Simplified Supply Chain

Innovation

Source: The commercial case for making more sustainable buildings, JLL

Annual Report & Financial Statements 2024

Kingspan Group plc

BEFORE

AFTER

COMMUNITIES

As we grow our footprint, we regenerate

unused manufacturing sites, increase

employment opportunities and launch

community projects.

163

community

projects across

our footprint

AFTER

Colleagues in Light, Air + Water partnered with Just

a Drop to support water and sanitation initiatives

in Nairobi.

Colleagues in Roofing + Waterproofing donated and

installed a roofing solution to Stepney City Farm which

serves as an education resource for children and an

animal refuge.

BEFORE

AWIP, East Stroudsburg (PA, USA)

developed into a state of the art

Insulated Panel facility

Saint Priest, Lyon (France)

transformed into a world class Light,

Air + Water facility

Completing the Envelope

Opportunity

for growth

WHAT’S NEXT?

Developing product

categories, increased market

penetration and continued

globalisation of the business

provides multiple platforms

for future growth.

Greenhill School

Valdes STEM +

Innovation Centre

Texas, USA

Data Solutions

ConCore

1250;

ConCore

1550;

ConCore

2000 raised

access floor panels

Annual Report & Financial Statements 2024

Kingspan Group plc

INSULATED PANELS

US Commercial Installed Solar Capacity (MWh)

New Markets include

Paraguay, Uruguay, Chile, Vietnam, Thailand and New Zealand

PowerPanel

New generation PowerPanel

now launching

Strong structural growth

drivers for insulated panel

penetration rates

» Thermal performance

» Speed of build

» Increased labour efficiency

» Increased transport efficiency

» Lower embodied carbon

» Demand for solar solutions

Paraguay

Uruguay

Chile

Vietnam

Thailand

New Zealand

Source: Seia / Wood Mackenzie

Installed Solar Capacity (MWh)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

25,000

20,000

15,000

10,000

5,000

Comparative market penetration

USUK

>65%

<20%

Completing the Envelope

$100bn

100%

INSULATION

Our unrivalled spectrum of insulation

solutions leaves us uniquely

positioned to cater for increasingly

complex customer requirements.

A structural need to increase

refurbishment rates and greater

emphasis on innovative solutions,

such as district heating, provides an

attractive long-term backdrop.

DATA SOLUTIONS

Global demand for data centre

infrastructure is accelerating with

demand set to more than triple

by 2030

. Data centres dedicated

to artificial intelligence bring

significantly increased energy

intensity. Our factory built products

offer rapid deployment, consistent

world class quality and adaptability

for a range of energy efficient cooling

solutions.

2 McKinsey & Co: AI power: Expanding data center

capacity to meet growing demand, October 2024

Net Zero

Renovation rates in

Europe are required to

double to meet Net

Zero targets

Steico Growth

Steico’s high growth

niche offering has

capacity to almost

double in size

2024 2030

DENMARK GERMANY FRANCE ITALY UK

65%

14%

70%

60%

50%

40%

30%

20%

10%

2023 2027

€50M

€200M

Penetration of

district heating

Trading Profit Target

Targeting €200m

trading profit by 2027

from €50m in 2023

Sector Investment

Data majors

grow total capex by

$100bn

over 5 years

3 Amazon, Microsoft, Meta,

Alphabet, Bloomberg estimates

4 Source: Bloomberg

2023 2028

1 Renovation Wave, European Commission

Annual Report & Financial Statements 2024

Kingspan Group plc

ROOFING + WATERPROOFING

This division is at the early

stage of its European

consolidation, as well as its

entry into the US market.

LIGHT, AIR + WATER

Light, Air + Water has established

a strong presence in European

markets. The opportunity to

consolidate the global market is

significant while there is ample

scope to broaden the product

offering.

3 Amazon, Microsoft, Meta,

Alphabet, Bloomberg estimates

4 Source: Bloomberg

Divisional

Sales Target

Target for divisional

sales €1.5bn by

2027, proforma

run rate of c.€1bn

exiting FY24

Revenue Targets

Target to grow revenue

from €1bn to €2bn over

the medium-term

Current

revenue

c.€1bn

Potential opportunity >€25bn

€25BN

US Market

Share Target

Targeting 15%

market share of the

US Commercial Flat

Roof Market

EU Market Share

<10% market share

of the EU Flat Roof

Market

2024 2027

€1.5BN

C.€1BN

<10%

15%

€2BN

€1BN

Completing the Envelope

Case Studies

EUROPEAN DISTRIBUTION CENTRE

Kingspan played a central role in delivering

a new 1.3 million sq ft distribution centre,

including cold storage, for a European

multinational supermarket chain. The

construction and management of a

facility of this nature and scale brings

logistical, operational and embodied

carbon challenges.

A key priority for the building owner was optimising

operational performance while embracing sustainability.

Kingspan supplied products from both Insulated Panels

and Data Solutions divisions:

» Topdek

single ply panel powered by QuadCore

;

» QuadCore

cold store wall panel for internal;

and external walls; and

» RMG600+ raised access floor.

Kingspan Group plc

Annual Report & Financial Statements 2024

STATE OF THE ART

WAREHOUSE FACILITY

International real estate manager, Henderson

Park, developed eight new warehouses with

offices and state of the art distribution

facilities. A key requirement of the project

was to meet a range of sustainability

standards including LEED Gold certification.

Kingspan’s insulated panel and Dri-Design

solutions support strong thermal performance,

durability, rapid construction and aesthetic

appeal while our day lighting products allow

natural light into the warehouse space,

increasing employee wellbeing and helping

reduce energy demands.

Kingspan supplied products from both Insulated

Panels and Light, Air + Water divisions;

» QuadCore

roof panel;

» QuadCore

cold store wall panel internal

and external;

» Dri-Design

cassette system; and

» Day-Lite

trapezoidal rooflights.

MULTIPURPOSE BUILDING

Located harbourside in Copenhagen, BLOX

is a multifunctional building that comprises

exhibitions and event spaces, offices, cafes,

restaurants, shops and apartments. The

diverse range of uses for the building required

multiple insulation solutions.

From our Full Spectrum Kingspan supplied:

» vacuum insulation panel product Optim-R

;

» phenolic thermal insulation material

Kooltherm

cavity board; and

» PIR thermal insulation material Therma

flat roof and tapered roof board.

Completing the Envelope

OUR IMPACT

Our products directly

enable lower carbon

and healthier

buildings, now and

into the future.

Kingspan’s insulation systems sold in 2024 will

save an estimated 755m MWh of energy and

172m tonnes of CO₂e over their lifetime.

1 Assumes 60 year product life; based

on an EU airline disclosure of over

15.4m tonnes of CO2e emissions for

12 months to March 2024

2 Assumes a 20 year product life

3 Equivalent number of PET bottles

by weight

4 Assumes 10 x 60W bulbs per home

Our daylighting systems sold in

2024 create 3.8 billion lumens of

natural light annually

Enough to light

up 470k homes

In 2024 alone, we recycled

1.1 billion waste plastic bottles³

Enough recycled bottles to

circle the Earth over five times

Over 44.1 billion litres of

rainwater will be harvested by

our systems produced in 2024²

Enough water to fill over

550m baths

172 million tonnes of CO

e will

be saved over the life of our

insulation systems sold in 2024

Enough to power a major

airline for over 11 years

NATURAL

DAYLIGHT

3.8 bn

ULTRA ENERGY

EFFICIENT

172m

CONSERVED

WATER

4 4.1bn

RECYCLED

MATERIAL

1.1 bn

Annual Report & Financial Statements 2024

Kingspan Group plc

2024 was another year of global

expansion with our manufacturing

footprint growing from 224 sites to 273.

OUR GLOBAL

REACH

Sales

Manufacturing

Americas

Brazil

Canada

Chile

Colombia

Mexico

Panama

Paraguay

Peru

Uruguay

USA

Europe

Austria

Azerbaijan

Belgium

Bosnia

Bulgaria

Croatia

Czech Republic

Denmark

Estonia

Finland

France

Germany

Hungary

Ireland

Italy

Kazakhstan

Latvia

Lithuania

Netherlands

N. Ireland

Norway

Poland

Portugal

Romania

Serbia

Slovakia

Spain

Sweden

Switzerland

Ukraine

Middle East

Qatar

Turkey

UAE

Africa

Egypt

Kenya

Morocco

Asia

China

India

Indonesia

Japan

Malaysia

Pakistan

Philippines

Singapore

Thailand

Uzbekistan

Vietnam

Australasia

Australia

New Zealand

Our Locations

Our Impact and Global Reach

It is my privilege to

present the Annual Report

for Kingspan Group plc

(Kingspan) for the year

ended 31 December 2024.

CHAIRMAN’S

STATEMENT

JOST

MASSENBERG

Trilogy

Limassol, Cyprus

Light, Air + Water

Pressure differential

system

Annual Report & Financial Statements 2024

Kingspan Group plc

Once again, Kingspan has delivered

record results despite a challenging

environment in many of our core

markets; trading profit increased

by 3% to €907m (2023: €877m) and

earnings per share increased 4% to

365.2 cent (2023: 352.3 cent). These

record results reflect the strength of

our strategy, our disciplined execution

and the resilience of our business in an

ever evolving global landscape.

Delivering on strategy

I am also pleased to report on the significant

progress we have made across our four key

strategic pillars: Innovation, Planet Passionate,

Globalisation, and Completing the Envelope.

Our unwavering focus on innovation and

sustainability supports our position as a global

leader in high-performance insulation and building

envelope solutions. It has also informed and

steered our product development pipeline for new

and existing products, including increased use of

bio-based materials, lower carbon materials and

new product solutions including QuadCore

LEC

Panels, Tate Grid+ LEC, and PowerPanel

During 2024 we expanded our geographic footprint

through both organic growth and acquisition. We

commissioned new facilities in Europe, the US, APAC

and LATAM during the year and acquired controlling

stakes in Steico, a global leader in wood fibre

insulation, and Nordic Waterproofing, a leading

provider of waterproofing solutions in Northern

Europe.

We expect to continue to grow our presence in the

US and have ring-fenced $1 billion of capital for

business developments there, including significant

investment in the Roofing + Waterproofing

sector over the coming years. We completed the

acquisition of IB Roof Systems, a high-performance

PVC membrane provider, as well as commencing

work on two further brownfield sites in Oklahoma

and Maryland expected to be commissioned

in 2026. We also continued our growth in Latin

America, by acquiring a controlling interest in

Villalba, a manufacturer of insulated metal panels

in Chile as well as a majority stake in the Kingspan

MV joint venture in Paraguay, bringing our total

manufacturing facility count in the LATAM region

to 16. These developments have broadened our

product portfolio and strengthened our market

presence in key regions.

TRADING PROFIT

€907m

+3%

2023:

€877m

Our unwavering focus on

innovation and sustainability

supports our position as

a global leader in high-

performance insulation and

building envelope solutions.

Business & Strategic Report

Chairman’s Statement

The Planet Passionate programme has been

pivotal in driving Kingspan’s sustainability agenda,

achieving measurable environmental goals,

earning industry recognition, and fostering a

culture of sustainability within Kingspan and its

communities. During the year, we continued

to make excellent strides towards our Planet

Passionate objectives, achieving a 61% reduction

in Scope 1 and 2 GHG emissions (excluding

biogenic emissions) against a 2020 base year,

and achieving 30% on-site renewable energy

generation across our whole business.

Via our Planet Passionate Communities

programme, Kingspan supports the communities

where we operate through educational,

humanitarian, environmental and wellbeing

initiatives. Our colleagues and local businesses

provide time, insight, resource and creativity

in support of diverse projects ranging from

community ambulances and search and rescue,

to mental health and wellbeing, to biodiversity

initiatives like replanting and insect hotels,

to community sports, artistic and cultural

endeavours. We also seek to have a positive

impact beyond our business operations, such as

completion of the Puerto Cortés Hospital project

in Honduras in partnership with GOAL.

Dividend

Subject to approval at the Annual General

Meeting, the Board is recommending a final

dividend of 28.5 cent per share. This will give a

total dividend for the year of 54.8 cent (compared

to 52.9 cent in the prior year). This is in line with

Kingspan’s established shareholder returns policy.

If approved, the final dividend will be paid (subject

to Irish withholding tax rules) on 21 May 2025 to

shareholders on the register at close of business on

11 April 2025.

Our people

Our people are the cornerstone of our success.

Their resilience, creativity and dedication have

been instrumental in driving our achievements

in 2024. We are committed to fostering a culture

of inclusivity, innovation and excellence, and

we continue to invest in their development and

wellbeing through initiatives such as our People

Passionate programme. On behalf of the Board, I

extend my gratitude to all our employees for their

outstanding contributions to another successful

year with Kingspan.

Board governance

Good governance is front and centre to

everything we do. In 2024, our Board continued

to enhance our governance frameworks, ensuring

alignment with best practices and stakeholder

expectations. Engagement with our shareholders

remains a key priority. Throughout the year, we

maintained an open and constructive dialogue

with our investors, addressing not only governance

matters but also strategic direction and financial

performance. This engagement ensures that

we remain aligned with their expectations while

benefiting from valuable insights that enhance

our decision-making processes.

Board changes

Linda Hickey will retire from the Board at the

conclusion of the Annual General Meeting in May

2025, after 12 years of service as a non-executive

director. Throughout her tenure, and particularly in

her role as Senior Independent Director and Chair

of the Remuneration Committee, Linda has always

provided invaluable expertise, sound judgment and

steadfast commitment to our governance and

strategic direction. On behalf of the Board, I would

like to extend my sincere thanks to Linda for her

significant contribution to the Company.

Following the Annual General Meeting we will

welcome Eavan Saunders as a new independent

non-executive director onto the Board. Eavan is

the Managing Partner and founder of the Irish

office of global law firm Dentons, with over 25

years’ experience as a top-tier corporate lawyer

specialising in international M&A and capital

markets, bringing her wealth of international

experience to the Board. I look forward to the

benefit of her contributions to the Board in the

years to come.

Looking ahead

I am confident that our exceptional management

team, strategic initiatives and recent acquisitions

optimally position Kingspan for continued growth

and to capitalise on emerging opportunities.

I believe our commitment to innovation,

sustainability, and strategic growth will ensure

that we remain at the forefront of the industry,

delivering value to our stakeholders, driving

positive change and creating a more sustainable

built environment.

Jost Massenberg

Chairman

25 February 2025

Annual Report & Financial Statements 2024

Kingspan Group plc

Kingspan is part of the

communities where we

operate and we support

those communities

through educational,

humanitarian,

environmental and

cultural initiatives.

Fujirebio GoCo

Mölndal, Sweden

Insulated Panels

Dri-Design

cassette

system

Business & Strategic Report

Chairman’s Statement

OUR BUSINESS MODEL

AND STRATEGY

Our mission is to

accelerate a net

zero emissions built

environment with

people and planet

at its heart.

Annual Report & Financial Statements 2024

Kingspan Group plc

Insulated Panels

Kingspan Insulated Panels is the world’s

largest and leading manufacturer of

high-performance insulated panel

building envelopes. Powered by Kingspan’s

proprietary and differentiated insulation

core technologies, our panelised envelope

provides building owners with consistently

superior build quality and lifetime thermal

performance compared with built-up

constructions using traditional insulation.

Data Solutions

Kingspan is the world’s largest supplier

of raised access flooring and data

centre airflow management systems.

Our raised access flooring systems have

many benefits including optimising

overall building height, achieving

faster construction with greater design

flexibility, enabling easier reconfiguration

of a workspace, and improving indoor

air quality. Our airflow management

systems enable data centres to optimise

cooling energy requirements while also

protecting expensive equipment such as

servers and storage devices.

Harness the power of the natural environment

Light, Air + Water

An established global leader, Kingspan

Light, Air + Water provides a full suite of

daylighting solutions, as well as natural

ventilation and smoke management

solutions, which complement our existing

building envelope technologies. Thermal

comfort, indoor air quality and natural

daylighting are widely recognised as

the most important factors affecting

occupant wellbeing in buildings.

OUR SOLUTIONS

Conserve energy and reduce carbon emissions

Insulation

Kingspan is a world leader in rigid

insulation boards, which accounts

for approximately two thirds of our

Insulation division. Our advanced

insulation technologies deliver superior

thermal performance and air-tightness

when compared with traditional

insulation, resulting in more durable,

thinner solutions that offer multiple

advantages including more internal

floorspace and daylight. More recently,

we have been expanding our bio-

based insulation offering through the

acquisitions of Troldtekt and HempFlax,

and the acquisition of 51% of Steico in

early 2024.

Technical insulation is a segment which

contains significant opportunity for

Kingspan to expand in the future. The

operation of buildings accounts for 28%

of carbon emissions globally. While space

heating is the largest consumer of energy

in buildings, heating water and space

cooling are also key energy consumers.

Kingspan has innovative and ultra-

performance products in both piping

and ducting insulation and we service

the district heating segment through

supplying pre-insulated piping through

our LOGSTOR business.

Roofing + Waterproofing

Our recently developed roofing

and waterproofing segment

complements our insulation board

offering. Roofing membrane and

roofing components are essential

elements for the energy efficiency

and water protection of a building

envelope. The acquisition of IB

Roofing Systems and a controlling

stake in Nordic Waterproofing

increased Kingspan’s proforma

annual sales in the segment to

c.€1bn. Going forward, we expect to

offer single component membrane

solutions and to also offer roof

systems incorporating membrane

and insulation, giving our customers

increased warranty protection from

a single trusted supplier.

Sustainable water management is rapidly

becoming one of the greatest challenges

of our time. We manufacture and support

pioneering new technologies to preserve

and protect water, such as rainwater

harvesting systems and wastewater

treatment systems.

PowerPanel

is part of our Insulated

Panels division. It is an engineering

innovation from Kingspan which has

integrated our QuadCore

insulated

panel with solar technology, enabling

a single fix installation of high-

performance insulated panel with

solar power generation. Our upgraded

PowerPanel

is now launching.

Business & Strategic Report Our Business Model and Strategy

Innovation

Kingspan’s innovation

agenda is driven across

four key themes -

performance, solutions,

sustainability and

digitalisation.

We have a rigorous focus

on iterative performance

improvements in our

current portfolio including

characteristics relating

to thermal, structural,

sustainability, fire and

smoke. We innovate

solutions to enable

architects and building

designers to create

sustainable buildings,

such as our integrated

insulated panel with solar-

PV, PowerPanel

and by

progressively surfacing our

products digitally, we are

making it easier to find

them, specify them, buy

them and track them.

Planet Passionate

Our Planet Passionate

agenda is inextricably

linked with innovation.

Planet Passionate is

Kingspan’s environmental

programme which

aims to impact three

big global challenges

– climate change,

circularity and protection

of the natural world.

By setting ourselves

challenging targets in the

areas of carbon, energy,

circularity and water, we

aim to make significant

advances in both our

business operations and

our products.

Completing the

Envelope

Our strategy of

Completing the

Envelope aims to take

our innovation and

sustainability DNA and

apply them to a wider

portfolio of products

which are complementary

to our current offering.

Our systems and solutions

driven approach deepens

our relationships with our

customers and extends

the opportunities to make

buildings better now and

into the future.

Our business model and

strategic pillars enable

the ongoing conversion to

high-performance building

envelopes from outdated

and inefficient methods of

construction.

OUR STRATEGIC

PILLARS

Global

Kingspan is a truly

global business,

trading in over

80 countries with

manufacturing sites

across the globe.

We aim to continue

expanding globally to

bring high-performance

building envelope

solutions to markets

which are at an earlier

stage in their evolution

to sustainable and

efficient methods of

construction.

Annual Report & Financial Statements 2024

Kingspan Group plc

PowerPanel

is a high performance

insulated panel with integrated solar

PV. The initial composition has been

enhanced based on pilot project

observations. The upgraded design

has recently received testing approval

and is set to launch. PowerPanel

has

the capacity to advance the rapid

deployment of solar power generation

on widespan roofs.

Lower Embodied Carbon

(LEC) Portfolio

Our Innovation and Planet Passionate

teams worked in partnership to

take significant steps forward in the

development of lower embodied

carbon alternatives across our

portfolios. In 2024, we brought 12 LEC

products to market including: KILON

LEC daylighting, SFS LEC, and Tate

Grid+ LEC.

BioKor

Our bio-based insulation category,

branded BioKor

, has made significant

strides with entry into the hemp

insulation market. The acquisition of

a majority stake in Steico, a global

leader in wood fibre insulation, further

positions Kingspan at the forefront of

this expanding sector.

STRATEGIC HIGHLIGHTS 2024

Carbon and Energy

20% on-site renewable energy

generation target achieved.

During the year the Group achieved

30% on-site renewable energy

generation through the continued

rollout of solar PV, wind and heat

generation systems. The acquisition of

a majority stake in Steico also played

an important role through their use of

biomass heat generation.

2024 saw a 61% reduction in Scope 1

& 2 GHG emissions against our 2020

base year.

Circularity

Target to recycle 1 billion PET

bottles into our manufacturing

processes annually achieved.

In 2024, we successfully achieved

this target and recycled 1.1 billion

PET bottles into our manufacturing

processes.

Water

Support of five ocean clean-up

projects target achieved.

In November of this year, we partnered

with rePurpose Global which marks the

fifth and final partner for the ocean

clean-up target. This project aims to

tackle ocean-bound plastic pollution in

Colombia.

We have installed 58 rainwater

harvesting systems across our

businesses to date, which have the

potential to harvest 71.7 million litres

of rainwater annually.

Roofing + Waterproofing

In 2024, we continued to expand

our presence in the Roofing +

Waterproofing category. We acquired

IB Roof Systems in September, a PVC

membrane provider, headquartered

in Texas, USA. During the year, we

acquired a controlling stake in Nordic

Waterproofing, a leading European

producer and supplier of waterproofing

products and services for buildings and

infrastructure.

Full spectrum of

insulation solutions

Kingspan’s entry into the stonewool

market, with the Kingspan Envertek

brand, alongside our leadership

position in high performance products

and investment in wood fibre

insulation further expands the Group’s

unrivalled spectrum of insulation

solutions.

Global

We continue our global expansion

strategy with investment in new

production facilities in France,

Germany, Belgium, Poland, the Czech

Republic, Romania, Saudi Arabia,

Thailand, Vietnam, Indonesia, New

Zealand, Australia, Paraguay, Brazil

and the US. We have made further

progress on our plans to invest in a

Building Technology Campus in Lviv,

Ukraine. These investments lay the

foundations for future growth and

product penetration for Kingspan.

Innovation

Planet Passionate

Expansion

Business & Strategic Report Strategic Pillars and Highlights

Annual Report & Financial Statements 2024

Kingspan Group plc

To be the world’s leading

provider of low energy

building envelopes –

Insulate and Generate.

OUR STRATEGIC GOALS

Innovation Global

Planet Passionate

Completing the Envelope

To advance materials,

building systems and

digital technologies to

address issues such as

climate change, circularity

and the protection of our

natural world.

Our strategic goals are aligned

with our mission to accelerate

a net zero emissions built

environment with people and

planet at its heart.

To expand globally, bringing

high-performance building

envelope solutions to

markets which are at an

earlier stage in the evolution

of sustainable and efficient

building methods.

Oxygene

Marseille, France

Light, Air + Water

Shadometal solar

shading system

Business & Strategic Report Our Strategic Goals and Values

Our values have always been the foundation of our

strategy and are fundamental to how we do business

and interact with each other.

OUR VALUES

Our Belief

Historically, construction has

taken from nature with little

consideration given to the finite

resources available. Buildings were

constructed without contemplating

how they might impact future

generations. We believe that

buildings, now and into the

future, need to deliver more than

ever before. They must combat

climate change by maximising

energy efficiency through superior

thermal performance while

incorporating products that are

lower in embodied carbon across

their entire lifecycle. Using less

energy is not enough; buildings

should generate their own energy

too. Buildings should be healthy

and inspirational, optimising the

benefits of daylight and clean

air. They should be designed,

constructed and operated to

protect natural resources and

conserve water as much as

possible. Above all they must

be safe, protecting people and

property from fire and other

natural hazards.

Our Culture and Values

Kingspan has grown from a family

business and many of the values

associated with family businesses

form the backbone of our culture

today. The business has been built

on trust in the integrity of our

people and of our offering. We

value this trust and recognise it as

being fundamental to our ongoing

success. We are entrepreneurial,

collaborative, honest, and we stand

behind a common cause – better

buildings for a better world.

We are innovative. We are the

market leader in the field of high-

performance building envelope

solutions, which ensure lifetime

carbon and resource savings. We

have gained this position through

a creative and solutions driven

mindset, which continues to inform

our innovation agenda today.

We think long-term. The strategy of

the business is driven by long-term

ambitions and not by quarterly

performance. The success of this

strategy can be seen in our long-

term growth. This ethos is apparent

in our multi-year commitments such

as our Planet Passionate programme

which will drive real, positive impact

for the environment and forms a

common global goal across the

business.

In 2023, we launched our People

Passionate programme which

focuses on the development and

retention of our most important

resource, our people.

Code of Conduct

Kingspan expects the highest

standards of integrity, honesty

and compliance with laws and

regulations from our employees,

our directors and our partners,

globally. We actively encourage

our employees to speak out if

they experience instances that are

not in keeping with the principles

outlined in our Code of Conduct.

All new joiners in Kingspan must

complete training on our Code of

Conduct. Our business success is

linked to our behaviours, and our

aspiration is to maintain a culture

where our everyday actions are

built on five core principles:

» Clear, ethical and

honest behaviours and

communications;

» Compliance with the law;

» Respect for the safety and

wellbeing of colleagues;

» Protection of our Group assets;

and

» Upholding our commitment to

a more sustainable future.

Please see further detail at:

The foundation of

our strategy

Annual Report & Financial Statements 2024Kingspan Group plc

2024 IN A NUTSHELL

How we create value

» Product innovation and differentiation

» Excellent customer service

» Energy efficient and sustainable building

envelope solutions

» We operate our businesses to the highest

standards

» We acquire excellent businesses

» We recycle capital to optimise returns

» We maintain financial discipline

» We balance our portfolio of businesses

across product and geography

» We are reducing our environmental impacts

through our Planet Passionate initiatives

273

Applications

» Retail

» Distribution

» Leisure

» Accommodation

» Food

» Manufacturing

» Data Management

» Infrastructure

Global

manufacturing

facilities

27,000+

Employees

» Health & Safety

paramount

» Management controls

» Quality systems

» Responsible supply

chain partnerships

How we operate

TRADING PROFIT

€906.7m

+3%

REVENUE

€8.6bn

+6%

2023:

€8.1bn

2023:

€876.9m

ASPLA Industrial

Building

Almería, Spain

Insulated Panels

Veneto 85 linear ceiling

Business & Strategic Report In a Nutshell

Value created

DRIVERS

CHANNEL

SECTOR

END-MARKET

85% Energy Efficiency & Conversion

15% Other

63% Direct

37% Via Distribution

12% Office & Data

26% Residential

62% Commercial & Industrial

75% New Build

25% Refurbishment

EBITDA

€1,140.3m

+7%

EPS

365.2c

+4%

ROCE

1 4.4 %

2023:

17.3%

DIVIDEND

5 4.8 c

+4%

2023:

€1,067.8m

2023:

352.3c

2023:

52.9c

1 Operating profit before amortisation of intangibles.

2 Earnings before finance costs, income taxes, depreciation and amortisation.

Products Geography

Light, Air +

Water

11%

Insulation

21%

Insulated

Panels

55%

Roofing +

Waterproofing

Data

Solutions

Central &

Northern

Europe

27%

Americas

22%

Rest of

World

Western &

Southern Europe

43%

Our people have delivered

another strong performance

CHIEF

EXECUTIVE’S

REVIEW

GENE

MURTAGH

In 2024, we delivered record

trading profit of €907m in

challenging markets, while

we invested €1,222m in

development activity sowing

the seeds for future growth.

Malmö Docks

Sweden

Insulation

Kooltherm

K15C;

Kooltherm

K20

Annual Report & Financial Statements 2024

Kingspan Group plc

1 Net debt pre-IFRS 16 per banking covenants

2 Net debt to EBITDA ratio is pre-IFRS 16 per banking covenants

3 Operating profit before amortisation of intangibles

Business Review

The finish to 2024 was particularly strong making

up for a slower start to the year. This momentum

towards year end resulted in total revenue for the

year reaching a record €8.6 billion, ahead of prior

year by 6%. EBITDA, trading profit and EPS also

achieved records at €1,140m, €907m and 365c

per share, respectively. Group trading margin was

10.5%. In all, this was a reasonable outcome given

the obvious economic headwinds, largely in Europe

and Australasia.

Notably, order intake in several of our key businesses

remained strong, building a backlog that bodes

well for the first half of 2025. The Insulated Panels

orderbook ended the year solidly ahead of prior year

in volume, with Data Solutions exiting 2024 with an

orderbook up over 30% in value.

2024 was a year of superb advances in our carbon

reduction and energy conservation processes

with more than 400 initiatives in our Planet

Passionate agenda now active. Since the

commencement of this distinctive programme in

2020, our like for like emissions have reduced by

80%. This demonstrates emphatically what can be

achieved on this front when it is given focus.

Operational Summary

Record performance in a tough environment

and improved momentum towards end of

year. Stronger overall margin in second half.

Insulated Panels sales were broadly in line

with prior year with a strong Americas

performance offset by more subdued activity

in several European markets. Emerging

regional scale in LATAM, exiting year with

c.€500m of annualised revenue. PowerPanel

now launching in Ireland and the UK.

Insulation had a year of transition with a

significant increase in category breadth and

building blocks for the longer term. Strong

progress in acoustic insulation. Market entry

to the natural insulation category via the

acquisition of a majority stake in Steico and

the commissioning of a stonewool plant

acquired during year.

Step change in activity in Data Solutions

with sales up 36% reflecting increased

global data demand driven by artificial

intelligence applications. Energy efficiency

is mission critical, liquid cooling to fuel

further exceptional growth.

Breakthrough year in Roofing +

Waterproofing. Controlling stake acquired

in Nordic Waterproofing. Maiden acquisition

in the US and two scale organic investments

underway in Oklahoma and Maryland with

production planned for early 2026.

Light, Air + Water recorded a year of

consolidation and margin progress. North

America offers opportunities of scale and

agreement reached to acquire Mercor’s

daylighting business, headquartered in

Poland.

Revenue up 6%

to €8.6bn,

(pre-currency,

up 6%).

Trading profit

3% to €907m,

(pre-currency,

up 3%).

Acquisitions

contributed 8% to

sales growth and 5% to

trading profit growth.

Profit after tax of

€691m (2023: €654m).

Basic EPS up 4% to

365.2 cent. Diluted EPS

up 4% to 362.3 cent.

27%

Scope 1 and 2 GHG

emissions reduced by

27% year on year.

17.0%

Effective tax rate of

17.0% (2023: 17.7%).

28.5 c

Final dividend per

share of 28.5 cent

(2023: 26.6 cent)

giving a total

dividend for the

year of 54.8 cent

(2023: 52.9 cent).

€509.4m

Strong free cash

generation of €509.4m

(2023: €890.8m).

€1,573m

Year end net debt

of €1,573.0m (2023:

€979.5m). Net debt

to EBITDA

of 1.47x

(2023: 0.97x).

See page 50 for the Financial Review

Summary Numbers:

Chief Executive’s Review Business & Strategic Report

Business Review (continued)

2024 marked a milestone year in development

activity with investments in acquisitions and

capex totalling €1,222m. The most significant

component of this related to a 56.4% additional

stake acquired in Nordic Waterproofing bringing

the Group’s total position to 87.4% as at 31

December 2024 and the 51% holding acquired in

Steico, the world’s largest manufacturer of wood

fibre insulation.

By market, the picture varied more than any year

in the recent past. North America performed well

and activity in LATAM was also very encouraging.

France delivered a strong performance whilst

Germany and the Nordics were weaker, as was the

case in Australasia. Although the UK market has

been generally under pressure, our Insulated Panels

and Insulation businesses delivered solid results.

Ireland was a standout positive performer.

Planet Passionate and our Impact

GHG emissions from our like for like operations

since 2020 are down by 80%, despite our business

growth. This is the result of more than 400

initiatives globally, 150 of which were activated

in 2024 alone. In 2024, we were powered by over

50% renewable energy, and over 30% of our

consumption was generated on-site. Steico is

powered largely by biomass on-site, including bark

from the timber raw materials, and over 55% of

our freehold facilities worldwide have significant

on-site solar.

In 2025, we will partner on a marquee project

which will provide the entire space heating for

a Kingspan 80,000m

manufacturing facility

and a third-party data centre. The solar energy

will power the data centre with the associated

offtake heating our facility, using a ‘solar to

data centre to hot air’ system. This will replace

approximately one million litres of our annual oil

usage and we plan to extend this system to other

plants in the years ahead.

Deniz Mall

Baku, Azerbaijan

Insulated Panels

KingZip standing seam

Annual Report & Financial Statements 2024

Kingspan Group plc

As part of our 2025-2030 programme update, and

to replace the targets achieved ahead of schedule,

we have set three new targets reflecting the

strong momentum:

» ISO 50001 energy management certification on

all large sites by 2030

» 1.5 million tonnes of recycled and renewable

raw material use annually by 2030

» Facilitate 20 product takeback and recycling

schemes by 2030

Energy use and baseline GHG emissions have

increased by over 300% and 100%, respectively,

since 2020 due to organic growth and acquisitions.

To reflect the significant increase in the scope

and scale of our global operations, we have also

updated our carbon targets.

Caption

Location

Section

Product

Underlying

business

Whole

business

Planet Passionate Targets

Target

Year 2020 2024 2020 2024

Carbon

» Net Zero Carbon Manufacturing -

scope 1 & 2 GHG emissions

(tCO2e)

2030 409,746

82,865 870,482

4,5

337,837

» 50% reduction in product CO2e

intensity from primary supply

partners (% reduction)

2030 - 3.9 - 3.9

» Zero emission company funded

cars⁶ (annual replacement %)

2025 11 89 11 86⁷

Energy

» 60% direct renewable energy (%)

2030 19.9

43.3 19.9⁴ 59.4

» 20% on-site renewable energy

generation (%)

2030 4.9 10.2 4.9 30.3

» Solar PV systems on all wholly

owned sites (%)

2030 20.7⁴ 64.0 20.7⁴ 56.8

Circularity

» Zero company waste to landfill

(tonnes)

2030 18,622

7,088 18,622

12,536

» Recycle 1 billion PET bottles into our

manufacturing processes annually

(million bottles)

2025 573 1,102 573 1,102

» QuadCore

products utilising

recycled PET (no. of sites)

2025 1 12 1 12

Water

» Harvest 100 million litres of

rainwater annually (million litres)

2030 20.1 62.1 20.1 63.2

» Support 5 ocean clean-up projects

(no. of projects)

2025 1 5 1 5

1 Underlying business includes manufacturing, assembly and R&D sites within the Kingspan Group in 2020 and all organic growth to date.

2 Whole business includes manufacturing, assembly and R&D sites within the Kingspan Group, excluding acquisitions made after 30 September

2024 and three minor sites acquired in 2023, which have negligible environmental impacts due to data unavailability.

3 Excluding biogenic emissions. Scope 2 GHG emissions calculated using market-based methodology.

4 Restated figures due to improved data collection, change in calculation methodologies and site disposal.

5 GHG emissions were recalculated due to acquisitions that occurred in 2021 through to 30 September 2024.

6 Kingspan defines a zero emissions car as a vehicle with zero tailpipe emissions. The boundary does not include the energy used to power the

vehicle or the embodied emissions from manufacturing.

7 Due to data unavailability, Steico and Mineral Insulation are excluded.

Business & Strategic Report

Chief Executive’s Review

In 2019, Kingspan set a target to achieve a

90% absolute reduction in Scope 1 and 2 GHG

emissions

by 2030, from a 2020 baseline. As of the

end of 2024, we have reached an 80% reduction

in Scope 1 and 2 emissions from 2020, excluding

acquisitions, and 61% including acquisitions.

Given the Group’s rapid growth, we’ve adjusted

this target to a 65% reduction by 2030, including

current acquisitions and potential organic growth

out to 2030. As a result, the updated target is

projected to achieve an additional reduction

of 197,000 tCO

e by 2030, beyond the original

commitment.

We have also re-evaluated our target to reduce

the carbon intensity of key raw materials from

50% to 15% by 2030, reflecting the pace of

development by suppliers, regulators and

customers. Annual replacement of zero emissions

company cars will be >90% from 2025. Further

detail on our 2025–2030 targets is outlined in our

Planet Passionate report.

Investing in our Future

Over the course of the year we invested a total

of €1,222m across a significant number of

acquisitions and organic projects. We completed

19 acquisitions in the year, the largest of which

were the controlling stakes in both Steico and

Nordic Waterproofing. In addition, we continued

our core bolt-on strategy by adding a number

of strategic small and medium-sized businesses

around the world. Beyond this, a significant

number of new and extended manufacturing

facilities were completed or commissioned for

Insulated Panels in the US, Southeast Asia and

Australia, as well as new plants to support the

rapid growth of both the Data Solutions and

Roofing + Waterproofing businesses. In Ukraine,

after two years of careful navigation, we now have

planning approval for our campus in Lviv. We plan

to start development shortly and work it through

to completion over the coming three to five years.

Innovation in Action

LEC (lower embodied carbon), natural materials,

and PowerPanel

remain the priority focus of our

innovation agenda.

The development of PowerPanel

has been

completed. We have tested and satisfied the

requirements of FM Approvals Standard 4478,

which is a world first, and the product is now

launching in Ireland and the UK as the first

stage in a global rollout. Early interest in this

ground-breaking solution has been encouraging

and we expect deliveries to commence in the

second quarter. Launches in other regions can be

expected later in 2025.

Last year, several LEC products were launched

globally across the various business segments with

more targeted in 2025. This is central to our future

innovation plans.

Our entry into the natural insulation category with

the acquisition of a majority stake in Steico, the

world-leader in wood fibre, firmly places Kingspan

at the vanguard of this growing category.

Circularity innovation is also central for Kingspan

and two glycolysis processes are now up and

running in Spain and the Netherlands. These

convert waste insulation back into a polyol raw

material, which then forms part of new insulation

products, contributing to the acceleration of

the circular economy. We plan to commission a

number of glycolysis plants located at our key

insulation sites worldwide in the coming years.

Furthermore, we have approved the development

of an insulated panel take-back processing plant

at Joris Ide in Belgium.

We believe that these and further innovations in

the pipeline will form a meaningful part of the

Group’s ground breaking proposition in the future.

Product and System Integrity

Our enhanced product integrity programme

is deeply embedded across the Group. We are

pleased to report that we achieved our target

to certify 85 of our global sites to the ISO

37301 standard by the end of 2024. ISO 37301

is the leading global standard for establishing,

developing and monitoring compliance systems.

For 2025, we plan to have 105 sites certified by

year end. In addition, 490 third party external

products and system audits took place throughout

2024 compared to 480 in 2023.

GHG emissions from our

like for like operations

since 2020 are down 80%.

1 Excluding biogenic emissions. Scope 2 emissions are market-based.

Annual Report & Financial Statements 2024

Kingspan Group plc

CC Estepark

Castellón, Spain

Insulated Panels

Italia 30 linear

ceiling

New LEC products,

natural materials and

PowerPanel

innovations

position us at the

vanguard of energy

efficient building

envelope solutions.

Advances in glycolysis

processes, accelerating

the circularity of our

industry, will further

develop our future

proposition.

Business & Strategic Report

Chief Executive’s Review

TURNOVER

€ 4,7 3 7.5 m

2023:

€4,722.1m

TRADING PROFIT

€545.5m

-5%

2023:

€573.8m

TRADING MARGIN

1 1.5 %

-70bps

2023:

12.2%

Insulated Panels

The performance of the business

in North America was most

encouraging, particularly in the US,

but also in Canada and Mexico.

Conversion towards modern

methods of construction is growing

and our performance has been

bolstered by large wins in the US

tech and automotive sectors. Data

centres, battery plants, auto-

assembly and microchip facilities

have all been meaningful drivers for

us. Pre-engineered metal buildings

are converting increasingly to

insulated panels and some recent

sizeable orders for our OneDek

flat roof panel should open up

longer-term traditional built-up

roof conversion. LATAM, now at an

annualised revenue of c.€500m,

grew strongly and we expect to build

upon this in 2025 having recently

entered both Chile and Paraguay

by way of majority stakes in local

partnerships.

European markets were more

subdued in general with volume

growth in France, and more recently

in Germany, compensating for

weaker performances in the Nordics

and Iberia. QuadCore

continued to

grow, now at 29% of insulated panel

value globally, and has been a key

driver of divisional margins. Ireland

delivered a strong performance and

whilst the UK was softer, recent

order intake and pipeline bode very

well for 2025. This should be further

boosted by the imminent launch of

PowerPanel

We experienced an improved

performance in the Middle East and

whilst Australia disappointed, we

anticipate our new mineral fibre

panel plant near Sydney will drive

growth in 2025. During the year we

also commenced manufacturing

operations in New Zealand, Vietnam

and Thailand all of which are exciting

prospects for the years ahead.

1 Comprising underlying -2% and

acquisitions +2%.

Intergio

Arroyomolinos, Spain

Insulated Panels

Mywall panels

Annual Report & Financial Statements 2024

Kingspan Group plc

TURNOVER

€ 1,8 2 4.7 m

+19%

2023:

€1,528.0m

TRADING PROFIT

€147.8m

+2%

2023:

€145.1m

TRADING MARGIN

8.1 %

-140bps

2023:

9.5%

Insulation

2024 was a testing and

transformative year for the

Insulation business. Many European

markets were under pressure

coinciding with cost-driven price

deflation and some tapering off

in the district heating category.

The latter ought to be a longer-

term growth engine despite having

tapered this year. We anticipate

performance improvement across

the rigid board operations this

year, now less than 30% of sales

in the division, with the prospect

of some pickup in residential

activity. The commissioning of the

Kingspan Envertek stonewool plant

in Ronneburg, Germany was also

a margin headwind in the period

which should improve meaningfully

in the year ahead. This impacted

the divisional margin by 70bps in the

year.

In contrast, our acoustics and

interiors insulation activities had

an excellent year. With momentum

continuing to improve, and recent

market entry into the US, we aim

to deliver further growth in this

business. Similarly, our first year

with Steico, the world’s largest

natural insulation producer has

been encouraging. Commissioning

of the most advanced plant in the

industry in Gromadka, Poland, is

progressing well and should support

further growth in the year ahead.

The total investment in the plant

was c.€175m, the majority of which

was incurred pre-acquisition.

1 Comprising underlying

-9%, currency +1% and

acquisitions +27%.

2 8.8% excluding Kingspan

Envertek stonewool plant

start up costs.

Queen’s Business

School

Belfast, UK

Insulation

Kooltherm

K8 Cavity

Board; Kingspan

GreenGuard

GG300

Business & Strategic Report

Chief Executive’s Review

TURNOVER

€516.2m

+36%

TRADING PROFIT

€77.9m

+52%

2023:

€51.2m

TRADING MARGIN

1 5.1 %

+160bps

2023:

13.5%

2023:

€379.7m

Data Solutions

Fujirebio GoCo

Mölndal,

Sweden

Insulated Panels

Dri-Design

Cassette System

2024 was a year of significant and

exciting transition for this division

as it accelerated capacity growth

around the globe to support our

broadening client and applications

base. Revenue grew by 36% and

the backlog is now 33% higher than

it was at the end of 2023, which

should deliver another year of strong

growth in 2025.

This requires further rapid capacity

expansion and, in addition to the

recently opened Virginia plant, an

even larger facility will be added in

Arkansas this year. In Europe, the

demand patterns are similar and

will drive output growth for our

facilities in Germany, Belgium and

Ireland. We also plan to establish

production capacity in Southeast

Asia, supporting the manufacturing

presence we have in Sydney,

Australia.

The Q-nis business acquired in 2023

has bedded in exceptionally well.

We are exploring further strategic

bolt-ons as well as opportunities

to expand our presence in liquid

cooling. This will further differentiate

the offering we provide to the data

giants around the world.

1 Comprising underlying +27% and

acquisitions +9%.

Annual Report & Financial Statements 2024

Kingspan Group plc

2024 was a year focused on

consolidation across our Light,

Air + Water activities following

several years of acquisition-led

growth. The business is largely

concentrated in Europe for

the time being, markets which

naturally presented challenges last

year. Despite this, both trading

profit and trading margin improved

further in the year.

In North America the business

delivered a solid outcome driven by

a strong performance in rooflight

elements which we expect to grow

further as we advance our presence

in this key region.

In November 2024 we signed an

agreement to acquire Mercor’s

daylighting business headquartered

in Gdansk, Poland. This will provide

a significant boost as we push

deeper into central and eastern

Europe.

TURNOVER

€961.1m

-1%

2023:

€967.4m

TRADING PROFIT

€79.7m

+1%

2023:

€78.7m

TRADING MARGIN

8.3 %

+20bps

2023:

8.1%

1 Comprising underlying -2% and

acquisitions +1%.

Light, Air + Water

Business & Strategic Report Chief Executive’s Review

Four Frankfurt

Frankfurt, Germany

Light, Air + Water

Pressure Differential

System

TURNOVER

€568.5m

+15%

2023:

€493.4m

TRADING PROFIT

€55.8m

+99%

TRADING MARGIN

9.8 %

+410bps

2023:

5.7%

2023:

€28.1m

This growing platform for the

Group really broke through in

2024 doubling its profitability.

The business expanded margins

substantially, gained a foothold in

the US with new site acquisitions as

well as bolting on IB Roof Systems to

provide a complementary front-end

in this key region. The performance

of the flat roofing membrane

business was a key driver of the

result, as was an improvement in

underlayment activity.

Over the course of 2024, we

increased our ownership position

in the Swedish quoted Nordic

Waterproofing to 87.4%. We

look forward to driving growth

and operational advances as we

maximise our impact in the Nordic

markets.

We advanced significantly in

North America, acquiring two

existing large industrial facilities

which will accelerate our entry

into the commercial roofing and

insulation sector. We expect to

start production in Oklahoma and

Maryland in early 2026 with the

aim of growing and attaining a 15%

market share of the addressable

sector. This will require further

plants, which we are working on,

and further bolt-on activity as we

deploy approximately €750m on this

advance over a five-year timeframe.

1 Comprising underlying +4%, currency

-3% and acquisitions +14%.

Bei der Mierbaach

Bascharage,

Luxembourg

Roofing +

Waterproofing

EVALON

waterproofing

membrane;

aluminium profiles

Roofing +

Waterproofing

Kingspan Group plc

Annual Report & Financial Statements 2024

The Falcon ATC

Tower

Fujairah, UAE

Insulated Panels

KingZip Infiniti roof

and wall systems

Looking Ahead

2024 was a year of strong progress for

Kingspan. Whilst end markets were

tough, we ploughed on regardless

recording a strong bounce back in the

second half of the year.

€1.2 billion of new capital was

deployed in 2024 across our business

around the world. The seeds have

been sown for the next stage of our

continuum of growth. We do not

distract ourselves by short-term

gyrations in end markets, we think

long and build long.

2025 will inevitably offer up its fair

share of challenges although we

are excited for the year ahead. The

structural demand for an energy

efficient built environment continues

to advance around the world. We

are uniquely placed to harness that

with the breadth of our offering, our

Planet Passionate agenda and our

strong balance sheet.

Our order backlogs are healthy in

general and are soaring in the data

and artificial intelligence arena. This

gives us confidence that 2025 will be

another year of progress at Kingspan.

Gene Murtagh

Chief Executive Officer

25 February 2025

Business & Strategic Report

Chief Executive’s Review

The Financial Review provides

an overview of the Group’s

financial performance for the

year ended 31 December 2024

and of the Group’s financial

position at that date.

FINANCIAL

REVIEW

GEOFF

DOHERTY

Annual Report & Financial Statements 2024

Kingspan Group plc

Melbourne Airport

Australia

Insulated Panels

KingZip standing seam

Overview of result

Group revenue increased by 6% to

€8.6bn (2023: €8.1bn) and trading profit

increased by 3% to €906.7m (2023:

€876.9m) with a decrease of 30 basis

points in the Group’s trading profit

margin to 10.5% (2023: 10.8%). Basic EPS

for the year was 365.2 cent (2023: 352.3

cent), representing an increase of 4%.

The Group’s underlying sales and trading profit growth by division are set out below:

Sales Underlying Currency Acquisition Total

Insulated Panels -2% - +2% -

Insulation -9% +1% +27% +19%

Data Solutions +27% - +9% +36%

Light, Air + Water -2% - +1% -1%

Roofing + Waterproofing +4% -3% +14% +15%

Group -2% - +8% +6%

The Group’s trading profit measure is earnings before interest, tax, and amortisation of intangibles:

Trading Profit Underlying Currency Acquisition Total

Insulated Panels -6% - +1% -5%

Insulation -21% +1% +22% +2%

Data Solutions +42% - +10% +52%

Light, Air + Water - - +1% +1%

Roofing + Waterproofing +81% -5% +23% +99%

Group -2% - +5% +3%

The key drivers of sales and trading profit performance in each division are set out in the Chief

Executive Review.

Business & Strategic Report

Financial Review

Net finance costs

Net finance costs for the year decreased by

€9m to €32.0m (2023: €41.0m). The Group’s net

interest expense on borrowings was €43.3m (2023:

€37.3m). That increase in net interest expense

reflects the increase in outstanding debt year on

year. Lease interest of €7.2m (2023: €6.0m) was

recorded for the year. €1.3m (2023: €1.2m) was

recorded in respect of a non-cash finance charge

on the Group’s defined benefit pension schemes.

Dividend income of €3.7m (2023: €3.5m) was

received in respect of the Group’s investment

in Nordic Waterproofing in the period prior to

acquiring a controlling stake. A one off benefit of

€16.1m was recorded due to a change in the fair

value of deferred contingent consideration.

Dividends and share buyback

The Board has proposed a final dividend of 28.5

cent (2023: 26.6 cent) per ordinary share payable

on 21 May 2025 to shareholders registered on the

record date of 11 April 2025. An interim dividend

of 26.3 cent per ordinary share was declared

during the year (2023: 26.3 cent). In summary, the

total dividend for 2024 is 54.8 cent compared to

52.9 cent for 2023. This payout is in line with our

shareholder returns policy. In addition, during the

year the Group purchased 1,500,000 of its own

shares for an average price of €88.85 per share.

This is consistent with the Group’s stated strategy

of maintaining a stable share count to avoid

dilution associated with share option and other

issuances.

Retirement benefits

The primary method of pension provision

for current employees is by way of defined

contribution arrangements. The Group has three

legacy defined benefit schemes in the UK which

are closed to new members and to future accrual.

The total pension contributions to these schemes

for the year amounted to €nil (2023: €0.8m) and

the expected contributions for 2025 are €nil. In

addition, the Group has smaller defined benefit

pension liabilities in Mainland Europe. The net

pension liability in respect of all defined benefit

schemes was €37.5m as at 31 December 2024

(2023: €37.0m).

Intangible assets and goodwill

Intangible assets and goodwill increased during

the year by €755.9m to €3,604.9m (2023:

€2,849.0m). Intangible assets and goodwill of

€776.8m (2023: €200.8m) were recorded in the

year relating to acquisitions completed by the

Group. An increase of €23.3m (2023: decrease of

€3.4m) arose due to year end exchange rates used

to translate intangible assets and goodwill other

than those denominated in euro. An increase of

€0.4m (2023: €6.0m) was recorded relating to the

purchase of intangible assets. There was an annual

amortisation charge of €44.6m (2023: €41.7m).

Financial key performance indicators

The Group has a set of financial key performance

indicators (KPIs) which are presented in the

table below. These KPIs are used to measure the

financial and operational performance of the

Group and to track ongoing progress in achieving

medium and long term targets to maximise

shareholder return.

Key performance indicators 2024 2023

Basic EPS growth +4% +7%

Sales performance +6% -3%

Trading margin 10.5% 10.8%

Free cashflow (€m) 509.4 890.8

Return on capital employed 14.4%* 17.3%

Net debt/EBITDA 1.47x 0.97x

*15.1 % annualised for acquisitions

(a) Basic EPS growth. The growth in EPS is

accounted for primarily by a 3% increase in

trading profit.

(b) Sales performance of +6% (2023: -3%) was

driven by an 8% contribution from acquisitions

and a 2% decrease in underlying sales. The

decrease in underlying sales reflected, primarily,

the market mix of sales and pass through effect of

lower raw material pricing mainly during the first

half of the year.

2024 2023

Insulated Panels 11.5% 12.2%

Insulation 8.1% 9.5%

Data Solutions 15.1% 13.5%

Light, Air + Water 8.3% 8.1%

Roofing + Waterproofing 9.8% 5.7%

The Insulated Panels division trading margin

decreased year on year reflecting the geographic

market mix of sales. The trading margin decrease

in the Insulation division primarily reflects the

category mix of sales, the initial impact of

acquisitions and commissioning costs of the

acquired stonewool plant. The increased trading

margin in Data Solutions reflects strong volume

growth and associated operating leverage. The

increased trading margin in Light, Air + Water

reflects the ongoing focus on specification.

Annual Report & Financial Statements 2024

Kingspan Group plc

The Roofing + Waterproofing trading margin

progressed year on year reflecting volume growth,

initial synergies and operating efficiencies.

(d) Free cashflow is an important indicator and

reflects the amount of internally generated capital

available for re-investment in the business or for

distribution to shareholders.

Free cashflow 2024 2023

€m €m

EBITDA* 1,140.3 1,067.8

Lease payments (68.7) (60.5)

Movement in working

capital**

10.0 298.1

Movement in provisions (26.3) (2.6)

Net capital expenditure (333.8) (233.5)

Defined benefit pension

scheme buy in settlement

- (15.9)

Net finance costs paid (41.1) (36.3)

Income taxes paid (184.3) (147.5)

Other including non-cash

items

13.3 21.2

Free cashflow 509.4 890.8

* Earnings before finance costs, income taxes,

depreciation and amortisation

** Excludes working capital on acquisition but includes

working capital movements since that point

Working capital at year end was €1,027.2m (2023:

€872.2m) and represents 11.4% (2023: 11.3%) of

annualised sales based on fourth quarter sales.

This metric is closely managed and monitored

throughout the year and is subject to a certain

amount of seasonal variability associated with

trading patterns and the timing of significant

purchases of steel and chemicals.

(e) Return on capital employed, the calculation

of this KPI has been amended following detailed

assessment. The revised measurement is more

reflective of economic returns on the Group’s

growing capital base. It is now calculated by

reference to trading profit plus the Group’s share

of the results of associates divided by capital

employed (calculated as net assets, excluding net

debt and adjusted for cumulative amortisation

of intangibles not fully amortised). The decrease

year on year reflects the 30bps decrease in trading

margin and the increase in capital during the year,

mainly acquisitions, with the associated returns

building overtime. The creation of shareholder

value through the delivery of long term returns well

in excess of the Group’s cost of capital is a core

principle of Kingspan’s financial strategy.

(f) Net debt to EBITDA measures the ratio of

net debt to earnings and at 1.47x (2023: 0.97x)

is comfortably less than the Group’s banking

covenant of 3.5x in both 2024 and 2023. The

calculation is pre-IFRS 16 in accordance with the

Group’s banking covenants.

Acquisitions

The Group spent €888.3m on acquisitions during

the year as follows:

In January 2024, the Group acquired 51% of the

share capital of Steico with an option to acquire a

further 10% in the future. Steico, headquartered

in Germany, is the world leader in wood fibre

insulation and wood-based building envelope

products and is listed on the unofficial markets

of several German Stock Exchanges. The total

consideration paid, including net debt acquired,

amounted to €337.2m.

Over the course of 2024, the Group reached a

controlling shareholding of 87.4% of the share

capital of Nordic Waterproofing increasing by

56.4% during 2024. Nordic Waterproofing is a

publicly listed company on Nasdaq Stockholm

and is a market leader in waterproofing products

and services for the protection of buildings and

infrastructure. The total consideration paid

during 2024, including net debt acquired on

consolidation, amounted to €272.9m.

The Group also made other smaller acquisitions

during the year for a combined cash consideration,

including net debt acquired, of €278.2m:

» The Insulated Panels division acquired the

business and assets of Conqueror in New

Zealand in January 2024, 100% of the share

capital of Rafinor and Eftex in Denmark, 100%

of the share capital of Clastina in Belgium in

April 2024 and 70% of the share capital of

Fatek Advance Insulation in Thailand in June

2024. The division acquired 100% of the share

capital of KZK in the Netherlands in July 2024

and 100% of the share capital of Siegmetall

in Germany in September 2024. The division

also acquired 100% of the share capital of PSP

Profile in France in October 2024, 85% of the

share capital of Solen Energy in the UK and

51% of the share capital of Villalba in Chile in

November 2024, and acquired certain business

and assets of TPF in France in December 2024.

A controlling interest in a venture in Paraguay

was also acquired during the financial year.

» In April 2024 the Insulation division acquired

the stonewool manufacturing business

and assets in Germany from Karl Bachl

Kunststoffverarbeitung GmbH & Co. KG as

well as 75% of the share capital of TreeTops

Business & Strategic Report

Financial Review

in Denmark. In May 2024, the division also

acquired the acoustic business and assets of

Isolco in the Netherlands.

» In April 2024 the Light, Air + Water division

acquired 100% of the share capital of Visa Oeste

and Petaproj in Portugal and in October 2024

acquired 100% of the share capital of National

Poly Industries in Australia.

» In September 2024 the Roofing +

Waterproofing division acquired 90% of the

share capital of IB Roof Systems in the USA.

» Payment of deferred contingent consideration

of €1.1m was incurred on acquisitions made in

previous years.

EU Taxonomy and CSRD

Climate related disclosures are required under the

EU Taxonomy Regulation (Sustainable finance

taxonomy - Regulation (EU) 2020/852) and by the

Corporate Sustainability Reporting Regulations,

2024. These disclosures are included in the 2024

CSRD Sustainability Statement within this report.

Capital structure and Group financing

The Group funds itself through a combination

of equity and debt. Debt is funded through a

combination of public bond debt, syndicated bank

facilities, and private placement loan notes. The

principal syndicated facility is a green revolving

credit facility of €800m entered into in May 2021

with a committed term to May 2027. There were no

drawings on this facility at year end.

In October 2024, the Group established a new

European Medium Term Note programme and

boosted liquidity with a debut public bond in the

European market of €750m for 7 years at a fixed

annual rate of 3.5%. In addition, as part of the

Group’s longer-term capital structure, the Group

has total private placement loan notes of €1,410m

(2023: €1,592m).

The weighted average maturity of all outstanding

private placement loan notes as of 31 December

2024 was 4.5 years (2023: 5 years).

The weighted average maturity of all drawn debt

facilities for wholly owned subsidiaries is 5 years

(2023: 4.4 years).

As well as ongoing free cashflow generation, the

Group has significant available undrawn facilities

and cash which provide appropriate headroom

for operational requirements and development

funding. Total available headroom was €1,950m at

31 December 2024 (2023: €1,874m).

Net debt

Net debt increased by €593.5m during 2024 to

€1,573.0m (2023: €979.5m). This is analysed in the

table below:

Movement in net debt 2024 2023

€m €m

Free cashflow 509.4 890.8

Acquisitions and divestments (775.3) (219.6)

Acquisition/disposal of minority interest (93.4) 1.0

Purchase of financial asset (17.5) (22.2)

Purchase of investment in associates (1.0) -

Deferred consideration paid (1.1) (6.6)

Repurchase of treasury shares (134.6) (0.7)

Dividends paid (96.6) (91.2)

Dividends paid to non-controlling interests (1.0) (0.9)

Dividends from investment in associates 0.3 -

Cashflow movement (610.8) 550.6

Exchange movements on translation 17.3 9.5

Movement in net debt (593.5) 560.1

Net debt at start of year (979.5) (1,539.6)

Net debt at end of year (1,573.0) (979.5)

Annual Report & Financial Statements 2024

Kingspan Group plc

Key financial covenants

The majority of Group borrowings are subject

to primary financial covenants calculated in

accordance with lenders’ facility agreements

which exclude the impact of IFRS 16:

» A maximum net debt to EBITDA ratio of

3.5 times; and

» A minimum EBITDA to net interest coverage

of 4 times.

The performance against these covenants in the

current and comparative year is set out below:

2024 2023

Covenant Times Times

Net debt/

EBITDA

Maximum

3.5

1.47 0.97

EBITDA/Net

interest

Minimum

4.0

24.7 27.0

Investor relations

Kingspan is committed to interacting with the

international financial community to ensure a full

understanding of the Group’s strategic plans and

its performance against these plans. During the

year, the executive management and investor

team conducted 483 institutional one-on-one and

group meetings, including presenting at 7 capital

market conferences.

Share price and market capitalisation

The Company’s shares traded in the range of

€68.60 to €91.45 during the year. The share price

at 31 December 2024 was €70.45 (29 December

2023: €78.40) giving a market capitalisation

at that date of €12.8bn (2023: €14.3bn). Total

shareholder return for 2024 was -9.5% (2023:

+56.2%).

Financial risk management

The Group operates a centralised treasury function

governed by a treasury policy approved by the

Group Board. This policy primarily covers foreign

exchange risk, credit risk, liquidity risk and interest

rate risk. The principal objective of the policy is

to minimise financial risk at reasonable cost.

Adherence to the policy is monitored by the CFO

and the Internal Audit & Compliance function. The

Group does not engage in speculative trading of

derivatives or related financial instruments.

On behalf of the Board

Geoff Doherty

Chief Financial Officer

25 February 2025

Business & Strategic Report

Financial Review

RISK & RISK

MANAGEMENT

As a leading building products

manufacturer in a highly

competitive international

environment, Kingspan is

exposed to a variety of risks

and uncertainties which are

monitored and controlled

by the Group’s internal risk

management framework.

Louisiana

Universities Marine

Consortium

Louisiana, USA

Insulated Panels

QuadCore

Karrier

Panel

wall panel

Annual Report & Financial Statements 2024

Kingspan Group plc

Annual Report & Financial Statements 2024

Kingspan Group plc

To ensure that risk awareness is set at an

appropriate level, the Audit & Compliance

Committee assist the Board by taking delegated

responsibility for risk identification and

assessment, in addition to reviewing the Group’s

risk management and internal control systems and

making recommendations to the Board thereon.

The chairman of the Audit & Compliance

Committee reports to the Board at each board

meeting on its activities, both for audit matters

and risk management. The activities of the Audit &

Compliance Committee are set out in detail in the

Report of the Audit & Compliance Committee.

The Board monitors the Group’s risk management

systems through its consultation with the Audit

& Compliance Committee but also through

the Group’s divisional monthly management

meetings, where at least two executive directors

are present. Business risks and trends are the

focus of each division’s monthly management

meeting, where divisional business performance is

also assessed against budget, forecast and prior

year. Key performance indicators are also used

to benchmark operational performance for all

manufacturing sites.

In addition to this ongoing assessment of risk

within the divisions, the Audit & Compliance

Committee oversees an annual risk assessment for

the Group whereby each divisional management

team is formally asked to prepare a detailed risk

assessment for their business. This assessment

involves evaluating Group-wide risks, as put

forward by the Board, and presenting additional

risks that are specific to their business.

While it is acknowledged that the Group faces a

variety of risks, the Board, through the processes

set out above, has identified the following

principal risks and uncertainties that could

potentially impact upon the Group’s short-to

medium-term strategic goals:

Overall responsibility for

risk management lies with

the Board who ensure

that risk awareness is set

at an appropriate level.

Business & Strategic Report Risk & Risk Management

Volatility in the macro environment

Risk and impact Actions to mitigate

Kingspan products are targeted at

both the residential and non-residential

(including industrial, retail, commercial,

public sector and office) construction

sectors. As a result, demand is dependent

on activity levels which may vary by

geographic market and is subject to the

usual drivers of construction activity

(i.e. general economic conditions and

volatility, pandemics, political uncertainty

and wars in some regions, interest rates,

business/consumer confidence levels,

supply chain disruption, unemployment

and population growth).

While construction markets are

inherently cyclical, changing building and

environmental regulations continue to

act as an underlying positive structural

trend in demand for many of the Group’s

products.

The exposure to cyclicality or downturn of any one construction

market is partially mitigated by the Group’s geographic

diversification, by end application and by product.

As set out in the Business Model & Strategy, the Group has mitigated

this risk through diversification as follows:

» an established globalisation strategy resulting in 273 global

manufacturing sites and a commercial presence in more than 80

countries;

» the launch of new innovative products and an approach of

continual improvements to existing product lines; and

» acquisitions made during the year enhance the geographic and

product diversification of the Group.

Innovation Global Planet Passionate Completing the Envelope

Annual Report & Financial Statements 2024

Kingspan Group plc

Product failure

Risk and impact Actions to mitigate

A key risk to the Kingspan business is

the potential for functional failure of

our products which could lead to health,

safety, and security issues for both our

people and our customers.

The Kingspan brands are well established

and are a key element of the Group’s

overall marketing and positioning

strategy. In the event of a product failure,

the Kingspan brands could be damaged

and if so, this could lead to reputational

damage, a loss of market share, and

other adverse consequences.

Dedicated structures and processes are in place to manage and

monitor product quality controls throughout the business:

» New products go through rigorous internal testing at the

Group’s Global Innovation Centre, IKON, and industry leading

Kingspan Fire Engineering Research Centre before proceeding

to a certification process which is undertaken by internationally

recognised and independent authorities before being brought to

market.

» The Group Head of Internal Audit & Compliance ensures

a rigorous approach to certification, testing and product

compliance across the Group and ensures consistent and robust

application of processes centred around our core commitment to

product safety. The Group Product Compliance team completed

the audit of 123 manufacturing sites in 2024.

» A Group Marketing Integrity Manual (MIM) has been designed

to incorporate the Group Code of Conduct. The MIM establishes

a compliance framework for product marketing materials

and websites. Compliance with the MIM is subject to audit

by the Group Internal Audit function under a dedicated audit

programme.

» The Group’s Product Compliance function has been accredited to

the leading independent standard in compliance, ISO 37301. 85

manufacturing sites are already certified to ISO 37301 with a plan

to have 105 sites certified by the end of 2025.

» Quality management is a key factor in ensuring long-term

product performance. ISO 9001 is a globally recognised standard

for quality management. 153 of Kingspan’s manufacturing sites

are accredited to ISO 9001.

» The terms of reference for the Audit & Compliance Committee

include oversight of the product compliance agenda.

» Our businesses employ quality control specialists and operate

strict policies to ensure consistently high standards are

maintained in addition to the sourcing and handling of raw

materials.

» Effective training is delivered to our employees.

» Proactive monitoring of the public policy, regulatory and

legislative environment.

Innovation Global Planet Passionate Completing the Envelope

Business & Strategic Report Risk & Risk Management

Failure to innovate

Risk and impact Actions to mitigate

Failing to successfully manage and

compete with new product innovations,

changing market trends and consumer

preferences could have an adverse effect

on Kingspan’s market share, future

growth and profitability of the business.

Innovation is one of Kingspan’s four strategic pillars to increasing

shareholder value and delivering on our mission to accelerate a net

zero emissions built environment.

» There is a continual review of each division’s product portfolios

at both the executive and local management level to ensure

that they target current and future opportunities for profitable

growth.

» The Group Head of Innovation and CEO host a bi-monthly

executive innovation forum where key product developments

and opportunities are discussed, and innovation strategies are

updated.

» The Group’s innovation strategy is intertwined with its Planet

Passionate sustainability strategy. Ambitious Planet Passionate

goals require the Group to invest in expanding its existing range

of sustainable building products and establish market leading

supply chains for sustainable raw materials.

» This risk is further mitigated by continuing innovation and

compelling marketing programmes. The launch of the IKON

Global Innovation Centre in 2019 has served to enhance the

capabilities of the Group to innovate.

» The Kingspan Fire Engineering Research Centre enables large

scale fire testing to industry regulation standards thereby

accelerating the pace of innovation and certification on the path

to commercialisation.

» Kingspan also has a deep understanding of changing consumer

and industry dynamics in its key markets and continues to

refine its omnichannel customer centric approach, enabling

management to respond appropriately to issues which may

impact business performance.

» Kingspan has multiple touch points with our customers, engaging

directly on projects, attending trade shows and industry events

and through our Net Promoter Score (NPS) surveys. Insights from

these touch points directly inform innovation in our products and

in our service.

Innovation Global Planet Passionate Completing the Envelope

Annual Report & Financial Statements 2024

Kingspan Group plc

Climate change

Risk and impact Actions to mitigate

Kingspan’s products

provide a solution to help

mitigate climate change,

particularly with respect to

reducing carbon emissions

in the built environment.

Climate change is therefore

both an opportunity and a

risk for Kingspan.

Climate risks within our

business include regulatory

changes, substitution risk

should we fail to maintain

our market leading

offering, rising energy or

carbon prices within our

own operations or in our

supply chain and physical

risk to our operations or

those of our suppliers.

Transforming building and construction is an important element of addressing the

climate crisis as they represent approximately 37% of energy-related carbon emissions.

Kingspan is uniquely placed to help support the decarbonisation of the building sector via

our extensive offering of high-performance, energy saving systems and solutions.

Risks relating to climate change are managed through a multi-disciplinary, and

company-wide, risk management process.

Examples of how climate change risks are mitigated include:

Planet Passionate

» Following the successful completion of our Net Zero Energy programme (our

programme that focused on reducing energy consumption and increasing renewable

energy use where possible), Kingspan launched the next stage of our sustainability

journey in 2020, our 10-year Planet Passionate programme, which includes 11

ambitious targets in the areas of Carbon, Energy, Circularity and Water. This strategic

agenda will enable significant advances in the sustainability of both our business

operations and our products.

» A core facet of our Planet Passionate programme is to reduce carbon emissions within

our value chain. To this end, we have been working with new and existing suppliers on

innovative raw materials, with lower embodied carbon and higher recycled content,

leading to lower embodied carbon (LEC) products across our portfolio.

Innovation

» Our innovation agenda is inextricably linked with our Planet Passionate programme,

helping us to drive market leading products in the areas of carbon savings and

sustainability. Innovation is supported through ongoing investments such as the

opening of IKON in 2019.

» In 2024, our insulation products sold globally are estimated to save 172 million tonnes

of CO2e over their lifetime. In addition, we estimate 44.1 billion litres of rainwater will

be harvested over the lifetime of the tanks we produced, and we recycled 1.1 billion

waste plastic bottles into our manufacturing processes.

» In addition to internal innovation, Kingspan observes the market for inventive or

alternate materials which can add value to our ambition to offer the full spectrum of

energy efficient building envelope solutions, such as our investments in hemp, wood

fibre and wood wool insulations.

Digitalisation

» Digital adoption is a key factor to enabling more efficiency and sustainability in

the manufacture, delivery, construction and operations of the built environment.

» Enhanced digitalised processes for customer engagement provide faster and deeper

insight into the sustainability demands of our customers.

» Our 2024 Building Information Modelling (BIM) & Digital Innovation Programme

drove the enhancement and introduction of several tools to improve the workflows

of our customers. Utilising the latest digital technologies, Kingspan aims to

empower its customers and partners with tailored digital solutions.

Global Presence

» Kingspan operates out of 273 manufacturing sites across the globe, diversifying our

physical risk from climate change. We have also built relationships with a wide range

of global supply partners to limit the reliance on any one supplier or even a small

number of suppliers.

Innovation Global Planet Passionate Completing the Envelope

Business & Strategic Report Risk & Risk Management

Business interruption (including IT continuity)

Risk and impact Actions to mitigate

Kingspan’s performance is dependent on

the availability and quality of its physical

infrastructure, its proprietary technology,

its raw material supply chain and its

information technology. The safe and

continued operation of such systems and

assets are threatened by natural and

man-made perils and are affected by the

level of investment available to improve

them.

Any significant or prolonged restriction

to its physical infrastructure, the

necessary raw materials or its IT systems

and infrastructure could have an

adverse effect on Kingspan’s business

performance.

» Kingspan insists on industry leading operational processes and

procedures to ensure effective management of each facility.

The Group invests significantly in a rigorous programme of

preventative maintenance on all key manufacturing lines to

mitigate the risk of production line stoppages.

» With 273 manufacturing sites globally, the impact of production

line stoppages is also mitigated by having business continuity

plans in place to allow for the transfer of significant production

volume to another plant in the event of a shutdown.

» In addition, and as part of our Property Damage & Business

Interruption (PDBI) insurance, Kingspan is subject to regular

reviews of its manufacturing sites by external risk management

experts, with these reviews being aimed at optimising Kingspan’s

risk profile.

» Kingspan continues to focus on developing, enhancing and

protecting its intellectual property (IP) portfolio. As a global

leader in building envelope solutions, Kingspan considers its IP

security to be paramount. In addition to trade secret policies and

procedures, Kingspan has developed appropriate IP strategies to

protect and defend against infringements.

» To reduce Kingspan’s exposure to raw material supply chain

issues, Kingspan retains strong relationships with a wide range of

raw material suppliers to limit the reliance on any one supplier or

even a small number of global suppliers.

» Kingspan continues to inform all stakeholders of the

characteristics of our product offerings, their appropriate

application and benefits, to limit the risk of misunderstanding

within the building industry.

» Kingspan’s IT infrastructure is constantly reviewed and updated to

meet the needs of the Group. Procedures have been established

for the protection of this infrastructure and all other IT related

assets. These include the development of IT specific business

continuity plans, IT disaster recovery plans and back-up delivery

systems, to reduce business disruption in the event of a major

technology failure.

Credit risks and credit control

Risk and impact Actions to mitigate

As part of the overall service package,

Kingspan provides credit to customers

and as a result there is an associated risk

that the customer may not be able to

pay outstanding balances.

At the year end, the Group was carrying

a receivables book of €1,148.2m (2023:

€1,051.8m) expressed net of provision

for default in payment. This represents

a net risk of 13% (2023: 13%) of sales.

Of these net receivables, approximately

63% (2023: 60%) were covered by credit

insurance or other forms of collateral

such as letters of credit and bank

guarantees.

» Each business unit has rigorous procedures and credit control

functions for managing its receivables and takes appropriate

action when necessary.

» Trade receivables are primarily managed through strong credit

control functions supplemented by credit insurance to the extent

that it is available. All major outstanding and overdue balances

together with significant potential exposures are reviewed

regularly and concerns are discussed at monthly meetings at

which the Group’s executive directors are present.

» Control systems are in place to ensure that credit authorisation

requests are supported with appropriate and sufficient

documentation and are approved at appropriate levels in the

organisation.

Innovation Global Planet Passionate Completing the Envelope

Annual Report & Financial Statements 2024

Kingspan Group plc

Talent development and retention

Risk and impact Actions to mitigate

The success of Kingspan is built upon

effective management teams committed

to achieving a superior performance in

each division. Failure to attract, retain

or develop these teams could have an

impact on business performance.

» Kingspan is committed to ensuring that the necessary policies

are in place to attract, develop and retain the skill levels

needed to achieve the Group’s strategic goals. These policies

are underpinned by strong recruitment processes, succession

planning, remuneration reviews, including short and long term

incentive plans and targeted career development programmes.

» Kingspan’s People Passionate programme is a strategic

framework for attracting, retaining and developing talent within

Kingspan. The programme is sponsored by the Group CEO and

senior leadership team. The People Passionate programme

enshrines all the key aspects of talent development and

engagement:

- health, safety and wellbeing;

- recruitment;

- onboarding;

- performance and reward;

- training and development;

- leadership development;

- career planning and progression;

- engagement and communication; and

- people and organisational policies.

» Kingspan’s leadership team holds an annual talent forum to

review succession plans, metrics on key positions hired throughout

the year and to forecast future talent gaps as part of our human

capital risk assessment.

» Kingspan’s internal career portal provides an open and

transparent forum for Kingspan employees to learn about and

apply for career opportunities across all our businesses worldwide.

It has a wealth of information about the types of roles and skills

that are in demand to deliver on our strategic objectives.

» Kingspan continues to be an attractive employer of choice for

young, talented graduates with over 2,000 applications to our

global website for our 2024 graduate positions.

» Graduates participated in our Yours to Shape development

programme which was in its eighth consecutive year in 2024.

The objective of the programme is to provide new graduates

with a network to collaborate across the Group and develop the

capabilities to drive their careers in Kingspan. It spans 12 months

of interactive workshops, peer coaching, masterclasses with

senior executives and assignments on the Promote e-learning

platform.

» PEAK (Programme for Executive Acceleration in Kingspan) was

launched in 2018 and is targeted at middle to senior managers

who are currently or will soon commence managing a team. It

aims to increase leadership diversity by deepening and widening

the pool of potential senior leaders to match the increasing scale

and global nature of the business.

» An Advanced Management Programme was launched in 2021 in

partnership with INSEAD’s executive business school in France.

This programme supports Kingspan’s senior leaders to engage

with enterprise level goals in a more collaborative way while

transforming their leadership capabilities to drive significant long-

term growth.

Innovation Global Planet Passionate Completing the Envelope

Business & Strategic Report Risk & Risk Management

Fraud and cybercrime

Risk and impact Actions to mitigate

Kingspan is potentially exposed to

fraudulent activity, with particular

focus on the Group’s online banking

systems, online payment procedures and

unauthorised access to internal systems.

» The Group issues extensive guidance and policies, which include critical

process and control policies for the mitigation of fraud risk and they

must be effectively adopted by all Group businesses.

» The Group internal audit programme includes rigorous tests of financial

controls and general IT controls to ensure they align with Group policies

that mitigate fraud risk.

» All fraud and cyber crime attempts, successful and unsuccessful, are

reported to the Audit & Compliance Committee.

» The Group’s cyber strategy is designed by a multi-discipline Group IT

function with support from external advisors and our Group Head of

Cyber Security. The Group Head of Cyber Security is responsible for

owning and executing the Group’s cyber security strategy to ensure

critical assets and technologies are protected against cyber risk.

» The Group’s Cyber Security Roadmap sets out the phased milestones

for the implementation of enhanced cyber risk policies and projects

over a period of 30 months to enhance the Group’s security posture.

» Proactive cyber security services are in place which provide global

24/7 critical security services that include managed threat protection

(Security Information and Event Management – SIEM), managed

detection and incident response services, including access to trusted

and experienced cyber security advisors.

» The Group Internal Audit & Compliance function perform cyber audits

with dedicated audit programmes in addition to separate audits of IT

general controls. Findings of cyber audits are reported to the Audit &

Compliance Committee and form the basis for enhanced IT policies.

» Mandatory implementation of multi-factor authentication (MFA) on all

internet facing and business critical services Group-wide.

» High frequency phishing testing performed globally.

» The Group’s corporate assets can be swiftly ‘auto-contained’ in the event

of a significant cyber security incident to limit the business impact.

Acquisition and integration of new businesses

Risk and impact Actions to mitigate

Acquisitive growth is an important

element of Kingspan’s development

strategy. A failure to execute and properly

integrate significant acquisitions and

capitalise on the potential synergies they

bring may adversely affect the Group.

Failure to comply with M&A regulations

can result in potential fines and

reputational risk for the business.

» All potential acquisitions are rigorously assessed and evaluated, both

internally and by external advisors, to ensure any potential acquisition

meets Kingspan’s strategic and financial criteria.

» The Group has formal policies in place to ensure compliance with M&A

regulations and training is provided on these policies. Internal and

external legal counsel support Group management in complying with

M&A regulations.

» This process is underpinned by extensive integration procedures and the

close monitoring of performance post acquisition by both divisional and

Group management.

» New acquisitions are categorised as higher risk from a financial

controls, IT general controls and product compliance perspective and

are therefore subject to greater internal audit focus in the initial 12

month period post acquisition.

» Kingspan’s global management team has extensive experience in the

successful integration of acquired businesses, which it leverages for

onboarding new acquisitions.

Innovation Global Planet Passionate Completing the Envelope

Annual Report & Financial Statements 2024

Kingspan Group plc

Health and safety

Risk and impact Actions to mitigate

The nature of Kingspan’s operations

can expose its contractors, customers,

suppliers and other individuals to

potential health and safety risks.

Health and safety incidents can lead to

loss of life or severe injuries.

» A robust health and safety framework is in place throughout the

Group’s operations requiring all employees to complete formal

health and safety training on a regular basis.

» ISO 45001 is an internationally-recognised framework for

managing occupational health and safety risks. 122 of Kingspan’s

manufacturing sites are accredited to ISO 45001 with a target to

progress towards achieving 75% (including acquisitions after the

first 12-months).

» The Group monitors the performance of its health and safety

framework and takes immediate and decisive action where non-

adherence is identified.

» The development of a strong safety culture is driven by

management and employees at every level and is a core part of

doing business with integrity.

Laws and regulations

Risk and impact Actions to mitigate

Kingspan is subject to a broad range

of existing and evolving governance

requirements, environmental, health

and safety and other laws, regulations

and standards which affect the way

the Group operates. Non-compliance

can lead to potential legal liabilities,

reputational risk, and curtail the

development of the Group.

» Kingspan’s in-house legal team is responsible for monitoring

changes to laws and regulations that affect the business and is

supported by external advisors. Issued policies include, but are

not limited to, the following:

- Sanctions Compliance Policy;

- Anti-Fraud, Bribery and Corruption Policy;

- Competition Law Compliance Policy;

- Supplier Policy;

- Supplier Human Rights, Environmental Due Diligence Policy;

- Inclusion and Diversity Policy;

- People and Organisational Policy;

- Environmental Policy;

- Directors’ Guidance Policy; and

- Human Rights Policy.

» The Group has formal policies in place to ensure compliance

with M&A regulations and training is provided on these policies.

Internal and external legal counsel support Group management

in complying with M&A regulations.

» The Group’s publicly available Code of Conduct sets out the

fundamental principles which it requires all its directors, officers

and employees to adhere to in order to meet those standards.

» Training is provided through a variety of mediums in key areas of

legal and regulatory compliance, including a suite of mandatory

training for those that join Kingspan.

» The Group has a confidential independent hotline in place that

allows anonymous reporting of any suspected wrongdoing

or unethical behaviour, including reporting instances of non-

compliance with laws and regulations. All reported cases are

investigated and findings reported to the Audit & Compliance

Committee.

Innovation Global Planet Passionate Completing the Envelope

Business & Strategic Report Risk & Risk Management

Kingspan’s Mission

To accelerate a net zero

emissions built environment

with people and planet at its

heart. We do this through

enabling high-performance

buildings via our systems and

solutions that help to save

more energy, carbon and water.

SUSTAINABILITY

REPORT

UC Medical Centre

Ohio, USA

Insulated Panels

QuadCore

Optimo

wall panel system

Annual Report & Financial Statements 2024

Kingspan Group plc

We recognise the vital importance of achieving

this while:

» enhancing the safety and wellbeing

of people in buildings;

» supporting the transition to a circular

economy; and

» always delivering more performance

and value.

We believe the answers lie in challenging building

industry traditions with innovation in advanced

materials and digital technologies. What defines

us is our relentless pursuit for better building

performance whilst incorporating our Planet

Passionate programme into everything we do.

Our commitment to sustainability is instilled

throughout our business.

In line with the EU’s Corporate Sustainability

Reporting Directive (CSRD), which informs

the structure and content of our 2024 CSRD

Sustainability Statement, we have built

upon the comprehensive double materiality

assessment conducted throughout 2023 and

2024 in collaboration with multiple external

consultants. This ongoing process is being further

refined, with its findings actively integrated

into our sustainability strategy to meet CSRD

requirements and drive continuous improvement

in our sustainability practices.

Kingspan recognises that it has a responsibility

as a business leader to contribute towards the

achievement of the United Nation’s Sustainable

Development Goals (SDGs). Our fourth Planet

Passionate Report provides more detail on how we

contribute to the SDGs.

See page 68 for the PLANET PASSIONATE

See page 72 for the PRODUCT PASSIONATE

See page 76 for the PEOPLE PASSIONATE

Scope 1+2

GHG Emissions

61%

SINCE 2020

1 Excluding biogenic emissions. Scope 2 GHG emissions

calculated using market-based methodology.

Business & Strategic Report Sustainability Report

Planet

Passionate

Our Planet Passionate environmental

sustainability programme aims to help

tackle three big global challenges - climate

change, circularity and protection of the

natural world. In 2024, we continued to make

impactful progress through more than 150

projects, achieving three of our 11 targets -

20% on-site renewable generation, to recycle

1 billion PET bottles into our manufacturing

processes annually and to support 5 ocean

clean-up projects.

Isoeste Residential

Project

Minas Gerais, Brazil

Insulated Panels

Isotelha RAL 7024

Insulated Roof; Infinity

Wall Ribbon

Kingspan Group plc

Annual Report & Financial Statements 2024

Caption

Location

Section

Product

Underlying

Business

Whole

Business2

Planet Passionate Targets

Target

Year 2020 2024 2020 2024

Carbon

» Net Zero Carbon Manufacturing -

scope 1 & 2 GHG emissions

(tCO2e)

2030 409,746

82,865 870,482

4,5

337,8375

» 50% reduction in product CO2e

intensity from primary supply

partners (% reduction)

2030 - 3.9 - 3.9

» Zero emission company funded

cars⁶ (annual replacement %)

2025 11 89 11 86⁷

Energy

» 60% direct renewable energy (%)

2030 19.9

43.3 19.9

59.4

» 20% on-site renewable energy

generation (%)

2030 4.9 10.2 4.9 30.3

» Solar PV systems on all wholly

owned sites (%)

2030 20.7⁴ 64.0 20.7⁴ 56.8

Circularity

» Zero company waste to landfill

(tonnes)

2030 18,622

7,088 18,622

12,536

» Recycle 1 billion PET bottles into our

manufacturing processes annually

(million bottles)

2025 573 1,102 573 1,102

» QuadCore

products utilising

recycled PET (no. of sites)

2025 1 12 1 12

Water

» Harvest 100 million litres of

rainwater annually (million litres)

2030 20.1 62.1 20.1 63.2

» Support 5 Ocean Clean-Up projects

(no. of projects)

2025 1 5 1 5

1 Underlying business includes manufacturing, assembly and R&D sites within the Kingspan Group in 2020 and all organic growth to date.

2 Whole business includes manufacturing, assembly and R&D sites within the Kingspan Group, excluding acquisitions made after 30 September 2024

and three minor sites acquired in 2023, which have negligible environmental impacts due to data unavailability.

3 Excluding biogenic emissions. Scope 2 GHG emissions calculated using market-based methodology.

4 Restated figures due to improved data collection, change in calculation methodologies and site disposal.

5 GHG emissions were recalculated due to acquisitions that occurred in 2021 through to 30 September 2024.

6 Kingspan defines a zero emissions car as a vehicle with zero tailpipe emissions. The boundary does not include the energy used to power the vehicle

or the embodied emissions from manufacturing.

7 Due to data unavailability, Steico and Mineral Insulation are excluded.

Sustainable Development Goals that are most closely linked to Kingspan’s operations:

Business & Strategic Report

Sustainability Report

Carbon & Energy

Through our Planet Passionate programme, we aim to help enable

lower carbon buildings, not only in the operational phase but also in

the upfront and construction phase. 2024 highlights include:

» Scope 1 & 2 GHG emissions

: 2024 saw a 61% reduction in Scope 1

& 2 GHG emissions against our 2020 base year. The reduction was

achieved via the implementation of new renewable energy contracts,

deployment of solar PV systems and reduction in the use of high

GWP blowing agents. We made significant progress with our energy

suppliers and in 2024 we have 180 sites with renewable electricity

contracts.

» Scope 3 GHG emissions: In 2024, we achieved a 14% reduction in

Scope 3 GHG emissions against our 2020 base year. A key facet of our

carbon ambition is to reduce our upstream Scope 3 carbon emissions,

particularly as they relate to our purchased goods and services which

in 2024 accounted for over 90% of our total Scope 3 emissions. We

have had significant engagement with our key raw material suppliers

and tracking of their decarbonisation plans, and in 2024 we had over

100 (internal and external) meetings on supply chain engagement.

» 20% on-site renewable energy generation target achievement:

During the year the Group achieved 30% on-site renewable energy

generation through the continued rollout of solar PV, wind and heat

generation systems. The acquisition of a majority stake in Steico, a

global leader in wood fibre insulation, also played an important role

through their use of biomass heat generation.

» Zero emission cars: To date, we have installed 606 EV charging

points across our business. In addition, 86% of our annual

replacement cars were zero emissions cars in 2024.

» Product: In 2024 we brought 12 new LEC products to market,

including AST LEC insulated panel, Kingframe LEC, Multichannel LEC,

Tate Grid+ LEC, Tate Containment LEC and KILON LEC Multiwall.

These have reduced embodied carbon² across their lifespan when

compared to their equivalent standard Kingspan product.

Centre de

Competence

Bettembourg,

Luxembourg

Roofing +

Waterproofing

EVALASTIC

waterproofing

membrane;

Aluminium profiles

1 Scope 1 & 2 GHG emissions. Excluding biogenic emissions. Scope 2 GHG emissions

calculated using market-based methodology.

2 Reduction in embodied carbon (modules A-C) when compared to the standard product

verified by a third party and to EN15804+ A2:2019.

Annual Report & Financial Statements 2024

Kingspan Group plc

Circularity

Our vision is to deliver solutions that

support the transition to a circular

economy within the construction sector.

» Waste to Landfill: In 2024, we

completed 24 landfill diversion projects

resulting in over 2,140 tonnes of waste

being diverted from landfill.

» Product: To achieve zero waste

to landfill, our Brazilian business

developed a new product called EcoPIR,

using remanufactured production

waste from scrap PIR insulated panels.

In 2024, this equipment has been rolled

out in three of our Brazilian sites.

» Recycling: We recycled 69% of our

waste in 2024. Recycling trials are

ongoing to investigate ways in which

Kingspan production waste could be

reutilised to add value, while helping us

divert waste from landfill. In 2024, our

Daylight Centre of Excellence facility

in Kingscourt, Co. Cavan installed a

compounder recycling facility. The

facility has the capacity to recycle up to

2,000 tonnes per year of polycarbonate

and will produce key raw materials for

our daylighting products.

Water

As a manufacturer of solutions that

harvest and recycle water, we recognise

the need for future water security and the

protection of our natural water systems.

» In 2024, we installed nine rainwater

harvesting systems across our businesses.

These systems have the potential to

harvest an additional 2.2 million litres

annually. In total, our 58 systems

harvested 63.2 million litres of rainwater

during the year.

» We are delighted to announce our fifth

and final Ocean Clean Up partnership

with rePurpose Global, which will

facilitate the recovery of a minimum

of 28,000kg of ocean-bound plastic

from Colombia’s Buenaventura region

each year. The partnership consists of a

three-pronged approach which will help

combat ocean-bound plastic waste in

the area. This includes increasing plastic

recovery and recycling in Maguipi Island

(an area currently not serviced by any

waste management services), funding

educational activities to train and equip

local partners to better manage plastic

waste, and facilitating upgrades to local

waste management infrastructure.

This multifaceted approach will help to

remove plastic from the local community

and coastlines, increase recycling rates

and break the cycle of pollution to reduce

the plastic that makes its way into

Colombia’s oceans.

To replace our achieved targets and

reflect the significant increase in scope

and scale of our global operations, we

have updated our carbon targets and set

three new targets for the period 2025 -

2030. Further details on the updates to

the programme are outlined in our Planet

Passionate report. Scan this QR code.

Sustainability Report

Business & Strategic Report

Integrity of Product Information

for the Digital Era

Ensuring the safe performance and use of our

products is central to our approach to product

development, testing, support and marketing. At

Kingspan we have implemented global product and

marketing compliance programmes that ensures

the accuracy of our product information, operating

to the ISO 37301 global compliance standard and

underpinned by a culture of integrity, honesty and

compliance with laws and regulations. Our global

Environmental Claims Guide aims to ensure that

all marketing claims relating to the sustainability

performance of our products are robust and

support our Group vision of making a meaningful

impact on decarbonisation and circularity in the

built environment. In parallel, we are developing

and delivering a technology backbone for accurate

digital product information that enables project

efficiencies and better design decisions.

Product Compliance

Product compliance operates first and foremost

to the high standards set out in our Group

Code of Conduct, which has been rolled out

to all employees across the Group. The Code

of Conduct incorporates a policy for reporting

misconduct anonymously and is highly visible

in all manufacturing sites across the Group.

The group-wide Directors’ Duties handbook

and associated training supports product

compliance at senior management levels. The

Group Compliance and Certification function

operates to the ISO 37301 compliance standard

with internal auditing and Board oversight.

ISO 37301 is an internationally recognised Type

A management system standard which sets

out the requirements and provides guidelines

for establishing, developing, implementing,

evaluating, maintaining, and continually

improving a compliance management

system (CMS). At the end of 2024, we had

85 manufacturing sites globally which were

accredited to the ISO 37301 standard.

Product

Passionate

Tetris House

Brno, Czech Republic

Insulated Panels

NF 120 IPN wall panel;

RW 140 IPN roof panel

Annual Report & Financial Statements 2024

Kingspan Group plc

System testing is one of the

founding principles in our

approach to the safe use of

insulation and panel products.

The following structures are in place:

» Group Head of Internal Audit & Compliance

reports directly to the Audit & Compliance

Committee;

» Product Compliance Officers in each

business across Kingspan Group provide

monthly reports to the Group Product

Compliance team together with updates to

their divisional boards;

» Audit & Compliance Committee are

responsible for monitoring product testing

and marketing compliance; and

» Internal Audit & Compliance function audit

product and marketing compliance.

Product safety and testing

The safety of those working with our products,

and living in buildings that have used our

products, is paramount at Kingspan.

The opening of our industry leading Fire

Engineering Research Centre (FERC) in Holywell,

Wales was a key milestone in our global

compliance programme, which has enabled

a significant increase in the frequency and

scope of fire testing of products. The testing

carried out at FERC is also building a bank of

knowledge which is helping to ensure that fire

safety continues to be central to Kingspan

product innovation. The Kingspan FERC has the

facilities to conduct small scale testing (such

as EN 13501-1 or reaction to fire test) as well as

large scale testing, before sending the product

to external testing houses. It is also used for

prototype testing for R&D purposes.

Fire safety is often reduced to a simplistic

‘combustible’ versus ‘non-combustible’ definition,

based on a small scale test. Important factors

such as building design, installation methodology

and the interaction of the different materials in

the actual system are not tested in small scale

materials classification testing.

Hence, our approach to the safe use of our

insulation and insulated panel products in

buildings is founded on the principle that system

testing is the best way to assess fire performance

of any roof or cladding system, regardless of the

classification of the insulation materials used.

A wide range of Kingspan insulated panels

carry FM Approvals (FM) or Loss Prevention

Certification Board (LPCB) approval, both of

which are system testing regimes developed by

the insurance industry. These approvals provide

objective third party testing, which is underpinned

by quarterly, bi-annual and annual factory

1 Assumes 60 year product life; based on an EU airline disclosure of

over 15.4m tonnes of CO2e emissions for 12 months to March 2024

2 Assumes a 20 year product life

3 Equivalent number of PET bottles by weight

4 Assumes 10 x 60W bulbs per home

Our daylighting systems sold in

2024 create 3.8 billion lumens of

natural light annually

Enough to light

up 470k homes

In 2024 alone, we recycled

1.1 billion waste plastic bottles³

Enough recycled bottles to

circle Earth over five times

Over 44.1 billion litres of

rainwater will be harvested by

our systems produced in 2024²

Enough water to fill over

550 million baths

172 million tonnes of CO

e will

be saved over the life of our

insulation systems sold in 2024

Enough to power a major

airline for over 11 years

NATURAL

DAYLIGHT

3.8 bn

ULTRA ENERGY

EFFICIENT

172m

CONSERVED

WATER

44.1bn

RECYCLED

MATERIAL

1.1 bn

Business & Strategic Report

Sustainability Report

We have 28 product lead

compliance officers appointed

across the business and

over 6,000 people trained in

product compliance.

surveillance audits (depending on the region)

to verify compliance. Independent certification

bodies take samples of insulated panels from our

factories and send them to their own laboratories

for fire testing to verify ongoing compliance. These

independent audits also include assessments

of change control, formulations, processing

parameters, labelling and internal testing.

The Kooltherm

range of insulation boards

and KoolDuct

pre-insulated ductwork are

manufactured with a phenolic insulation core,

which has been proven to offer superior fire and

smoke performance to other commonly used rigid

thermoset insulants.

A comprehensive range of building facade

systems incorporating our insulation board and

insulated panels products have successfully

passed large scale facade tests around the globe

including, but not limited to, NFPA 285 (North

America), LEPIR II (France), SP 105 (Nordics), AS

5113 (Australia), ISO 13785-2 (Czech Republic)

and MSZ 14800-6 (Hungary). As it relates to large

scale fire tests, there are a total of 15 systems

incorporating Kooltherm

which have met the

requirements of BR 135 when tested to BS 8414

(UK) and there are six insulated panel based

systems that have met the requirements of BR

135 when tested to BS 8414. During 2024, a total

of 490 third party external products and system

audits were carried out, providing reassurance on

the safety of our products.

Integrity of Product Marketing

The Group Compliance Manual covers all aspects of

the processes which have been implemented across

the Kingspan Group, including the requirement for a

each product. We have 28 product lead compliance

officers appointed across the business and over

6,000 people trained in product compliance.

The Marketing Integrity Manual (MIM) ensures

that the information in the Product Compliance

in product marketing information. An updated

version of the MIM was released in November

2024 with 12 clauses.

Value Centre

Prahova, Romania

Insulated Panels

KS AWP 100 wall panel

Annual Report & Financial Statements 2024

Kingspan Group plc

KINGSPAN PIM MODEL

The overall programme includes:

» Group MIM e-learning which has been rolled

out to all marketing team members;

» Fire approvals e-learning which has been rolled

out to appropriate marketing team members;

» Environmental claims e-learning has been

rolled out to all marketing team members;

» A Skills, Knowledge, Experience and Behaviour

(SKEB) competency assessment model

which has been introduced with associated

training and strict rules for publishing product

information; and

» A sign-off approvals process which has been

implemented for our new global website

infrastructure.

Business & Strategic Report

Sustainability Report

PIM

Manage compliance of products

data. Generate Product

Compliance Register (PCR)

Generate DoP (60 data points),

Datasheets (16 data points),

Brochures (40 data points)

Exchange trusted products

data with ERP systems

Push trusted technical

products data to core Web

Push trusted product technical

data to e-commerce,

Configurators, BIM tools

Generate product

Digital Passport

Workflows

Documentation

ERP/CRM

WEB

Advanced WEB

We have built a Product Information Management (PIM) technology platform and this is currently being

deployed across our business:

We are People Passionate, and during 2024 we

continued to invest in our people by actioning

three pillars of our programme. We refocused on

the approach to performance and development by

encouraging effective conversations particularly

between our people leaders and team members

to cascade strategy and ensure its execution by

clarifying roles and goals and providing the training

needed to achieve high performance. We also

continued to underpin our strong foundations by

reviewing a number of fundamental policies and

procedures related to our people. These updated

policies and guidelines were published across the

Group and were accompanied by staff training and

communications. During the year we continued to

refine the data collection and reporting approach

for CSRD Workforce as well as People Passionate

progress reporting across our Group. We continued

to make progress on our priority of creating and

sustaining an inclusive workplace. A pulse survey

was undertaken to gather feedback on the current

experiences of our people at work in this regard. The

findings will inform the evolution of the priorities

and action planning for next phase.

People

Passionate

2024 Graduate

Programme

Annual Report & Financial Statements 2024

Kingspan Group plc

Talent Retention

Utilising the CSRD Workforce data gathering

process, we further advanced the quality and

completeness of people data. This helped to provide

better insights and a deeper understanding of our

people and their career choices which helped to

focus our actions. We continue to invest in people

technology and advertise open opportunities across

the Group via our internal career portal.

Training and Development

In 2024, our core people leader programmes

continued across the world. To date over 250 leaders

have participated in the programmes. The focus

of these programmes is to support people leaders

at either front line, middle management or senior

management to lead themselves, their team and

the business effectively. We have certified Kingspan

facilitators to deliver the programmes to the highest

levels which contributes to the integration of the

programmes into the businesses.

Kingspan’s key learning and development

programmes:

» Yours to Shape – Graduate Attraction and

Development;

» Developing Talent Programme;

» The Ignite, Accelerate and Evolve leader

development programmes;

» Programme for Executive Acceleration in

Kingspan (PEAK); and

» Kingspan Executive Development Programme,

in partnership with INSEAD.

Yours to Shape - Graduate Attraction and

Development

Kingspan continues to build leadership pipelines

by investing in our global graduate attraction

and development programme called Yours to

Shape. Over 280 graduates have completed

the programme since it was launched. The

programme’s objective is to support the successful

transition of graduates from university to Kingspan,

create an international collaborative network within

the Group and develop their capabilities to drive

their career in Kingspan forward. It is clear from the

campaign that graduates are consistently attracted

to Kingspan for the Group’s active and practical

focus on sustainability.

This year we continued to attend university career

fairs in-person across all regions.

The Yours to Shape development programme spans

12 months of virtual and in-person workshops and

assignments. A key feature of the programme is

the opportunity to gain an understanding of the

business across different regions and divisions.

In 2024, three modules were delivered virtually

and two modules were delivered face-to-face.

During the in-person modules graduates had the

opportunity to visit sites and meet with our talented

colleagues and understand different processes and

products.

At Kingspan, we are a global leader in sustainable

business and innovation. As such, our leaders are

at the forefront of advances in combating climate

change, the digitalisation of the construction

industry and advanced material research to name

but a few. Graduates get the opportunity to hear

first-hand from those leaders about the progress

that the Group is making in these areas through a

masterclass series.

Each year the graduates work in cross functional,

regional teams and work on diverse business

projects. These projects are identified by the

business as real challenges. The projects are

innovative, align to Kingspan’s strategic priorities,

which include sustainability, and have a commercial

benefit.

In 2024, five projects were showcased to an internal

audience of senior leaders in IKON, our Global

Innovation Centre in Ireland, and the presentations

were live streamed to our facilities around the

world. The level of innovation and the integration

of sustainability into the projects was inspiring.

The projects will be taken forward for further

assessment with an aspiration to integrate the

outcomes into the existing processes and product

range.

The Yours to Shape programme is a key pillar for

Kingspan’s leadership development strategy. As

talented people continue to join and develop

fulfilling careers, the longer-term high performance

of the Group is safeguarded.

Developing Talent Programme

The Developing Talent Programme is an early

careers programme aimed at developing

participants to realise their full potential, now and

into the future, and enabling them to add even

more value to the business.

The design of the programme is based on four

key principles, ownership of personal and career

development, building self-awareness and

confidence, developing and embedding good

learning habits and enabling practical application.

There are six in-person modules in total, alongside

three 1-to-1 coaching sessions. Participants must

also identify and present on an improvement

project which will deliver tangible results for their

own role and their team.

Business & Strategic Report

Sustainability Report

Participants receive exposure to a range of

development experiences which will help them

clarify their future personal and career direction.

The programme allows participants to identify

and develop critical skills and capabilities and

to maximise their impact and contribution to

the business, all while creating a supportive peer

network and broadening their exposure to the wider

Kingspan business.

Ignite Programme for front line managers

The Ignite Programme has been designed

to develop leadership and professional skills

and is tailored to those who are new to team

management and leadership. The core objectives

are to foster high performance in teams, develop

a shared purpose, developing the abilities to work

effectively in a fast-paced business and attracting

and retaining high performing talent.

Accelerate for middle managers and leaders

The Accelerate programme builds on the skills

developed in Ignite and introduces new concepts

on strategy execution, coaching and effectively

approaching and managing change and

transitions.

Evolve for more strategic focused leaders

and managers

The Evolve programme focuses on those in roles

that are a little more forward looking and may be a

manager of other leaders and or bigger businesses.

Through a blend of in person and virtual modules,

the leaders on this programme learn more about

enterprise level leadership.

Programme for Executive Acceleration in

Kingspan – PEAK

The high impact leadership development

Programme for Executive Acceleration in Kingspan

(PEAK) continued in 2024 with another group

of highly motivated and committed leaders

completing the programme. This programme

focuses on enhancing leadership effectiveness and

building a strong network of colleagues across the

Group.

The programme is delivered through a blend of

online and in-person modules underpinned by

individual coaching. Each workshop includes

insights and exposure to subject matter experts.

Project groups tackle a leadership challenge, the

output of which is implemented.

Kingspan Executive Development Programme,

in partnership with INSEAD

This Programme was launched in partnership

with INSEAD’s executive business school in France,

one of the world’s leading and largest business

schools. This is a specific leadership development

programme for senior executive leaders which runs

every two years.

The programme supports Kingspan’s senior

leaders to engage with enterprise level goals

in a collaborative way while transforming their

leadership capabilities to drive significant long-term

growth. The programme consists of learning events

throughout the year as well as a number of 1-to-1

coaching sessions.

Annual Report & Financial Statements 2024

Kingspan Group plc

Male Female

INJURY FREQUENCY RATE FATALITIES

21%79%

2024

1.29

p/100k hours

Protect

Kingspan takes the safety of our employees

incredibly seriously. The Group aims to record

and review all accidents, as well as near misses.

We have made significant progress in reviewing

Health and Safety (H&S) at both the facility and

divisional levels, with ongoing efforts to enhance

our practices. We hosted a H&S Forum at IKON

in November 2024, attended by over 21 H&S

professionals from across the business. There were

several presentations made during the forum,

covering topics such as H&S management systems,

learnings from serious incidents, best practice

commissioning of new machinery, and employee

training. Our North America H&S Forum took place

in January 2025, with our APAC forum scheduled

for February 2025, continuing our commitment to

global collaboration and safety improvement.

We are deeply saddened to report that during

the year a fatal accident occurred at one of

our recently acquired Steico facilities. Training

has been undertaken and policies updated to

incorporate learnings from this tragic incident

and to strengthen our commitment to health

and safety. 122 of Kingspan’s manufacturing sites

are accredited to ISO 45001, an internationally

recognised framework for managing occupational

H&S risks.

Hazard Identification Processes include but are not

limited to:

» all near misses are assessed and processes are

updated;

» employees are encouraged to make

suggestions for process improvements;

» safety walks by responsible persons;

» periodic workplace inspections; and

» risk assessment on new machines at

installation.

Initiatives implemented throughout 2024:

» Behavioural Safety Visits (BSV): the Roofing

+ Waterproofing division partnered with an

external provider to train site management in

identifying and addressing safety anomalies,

improving communication, and reinforcing

positive behaviours;

» Unified Incident Reporting: Developed a

standardised platform for incident data

collection across all North America Insulated

Panels sites, ensuring consistency and

improved H&S oversight; and

» Standardised LOTOTO (Lock-Out Tag-Out Try-

Out) Procedures: Implemented written LOTOTO

procedures across all Insulation sites, ensuring

alignment with divisional standards and

clarifying the distinction between functional

safety and LOTOTO.

Equal opportunities, employee rights

and diversity

Kingspan is committed to providing equal

opportunities from recruitment and appointment,

training and development to appraisal and

promotion opportunities for a wide range of people,

free from discrimination or harassment and in

which all decisions are based on work criteria

and individual performance. We see diversity

and inclusiveness as an essential part of our

productivity, creativity and innovation. Diversity

is widely promoted within Kingspan. 36% of our

most recent graduates are female and 33% of our

senior executive team, reporting to the CEO, are

female. Diversity is actively supported at Kingspan

through foundational policies, including the Group’s

Inclusion and Diversity Policy and our global Code of

Conduct, which outline the Company’s dedication

to equal opportunities, integrity, honesty, and

compliance.

GENDER BALANCE

Business & Strategic Report

Sustainability Report

Initiatives in action

Our All Weather Insulated Panels

(AWIP) business in the US provided

labour and materials to the

non-profit housing organisation,

Habitat for Humanity

Annual Report & Financial Statements 2024

Kingspan Group plc

Our Communities

Planet Passionate Communities is the philanthropic

arm of our Planet Passionate programme. At the

heart of Planet Passionate Communities is an

ambition to create a positive legacy as a business.

Locally, our businesses are devoting their time and

resources to support community projects.

The idea is to build a world that’s powered by

renewable energy, is net zero carbon, manages

water sustainably, and protects the earth’s valuable

resources by reducing, re-using and recycling. We

take pride in our diverse range of global projects,

showcasing our commitment to a sustainable

future for our communities.

Planet Passionate Week

brings to life the benefits

of our environmental

sustainability programme

Business & Strategic Report

Sustainability Report

These policies and related initiatives assist in

ensuring consistency, compliance with laws and

regulations, and alignment with the Group’s goals

and values in the jurisdictions in which we operate.

Human Rights Policy

In 2023, the Group released its global Human

Rights Policy. The policy supports Kingspan’s

fundamental values and the key objective is to

outline our human rights commitments. We have

a zero-tolerance approach to slavery, human

trafficking and other human rights infringements.

The Group is committed to respecting and

safeguarding the people who work for our business

and those who are affected by our various

activities. The Human Rights Charter is issued

under the Human Rights Policy and outlines in

further detail our commitment to promoting and

respecting human rights. The Group is committed

to the highest standards of business and ethical

behaviour including compliance with applicable

laws and regulations as well as company policies,

practices, and procedures.

Human Rights Risk Assessment

As part of the policy development, the Group

engaged with an external consultant to develop

a human rights risk assessment framework. The

assessment involved identifying salient human

rights issues across our value chain, groups

(employees, customers, and communities)

and conducting due diligence pathways. An

assessment to evaluate human rights risks within

our upstream supply-chain was also conducted

throughout the year in a separate piece of

analysis.

Modern Slavery

Slavery and human trafficking are abhorrent

crimes and we all have a responsibility to ensure

that they do not continue. At Kingspan, we pride

ourselves on conducting our business ethically and

responsibly. The Modern Slavery Act 2015 requires

all large UK companies and businesses who supply

goods or services in the UK to publish a slavery and

human trafficking statement each financial year

on their website.

The Group is fully committed to ensuring that

modern slavery is not taking place in our business

or any of our supply chains. We adopted and

published our policy statement at the end of 2016

and all our businesses are responsible for ensuring

supplier compliance with the legislation.

Inclusion and Diversity Policy

In 2024, The Group released its Inclusion and

Diversity Policy. This Policy is issued under

the Human Rights Policy and outlines our

commitment to promoting and respecting a

workplace culture in which inclusion and diversity

is valued and everyone is treated with dignity and

respect. The purpose of the Inclusion and Diversity

Policy is to foster an inclusive environment that

respects and values the diverse background,

perspectives and experiences of all our people,

stakeholders and partners. The policy also seeks

to ensure inclusion, diversity, equal opportunities,

equity and belonging. These are core principles

that we seek to promote across our business. This

policy sets out our approach to encouraging and

supporting inclusion and diversity and promoting

a culture that values difference and seeks to

eliminate discrimination in our workplace.

Supplier Policy and Supplier Human Rights,

Environmental Due Diligence Policy (SHREDD)

The Group continues to develop upon its ethical

and environmental procurement agenda. We seek

to build and maintain long-term relationships

with key suppliers and contractors to ensure that

they are aligned to the same goals and standards

as Kingspan, to address strategic global issues,

emerging trends and ultimately our customer

needs. Our procurement leadership team

engage in events promoting the decarbonisation

of materials used within our supply chain

and in industry leading initiatives such as the

Procurement Leadership Council, Europe. We

continue to promote our Group Supplier Policy

across Kingspan globally which sets out our

expectations of suppliers, generally in terms of

business practices, and specifically with respect to:

Business Integrity; Ethical Employment Practices;

Anti-Bribery and Corruption; and Environmental

Our Policies and

Related Initiatives

Kingspan Group plc

Annual Report & Financial Statements 2024

Responsibility. In 2024, Kingspan developed

our SHREDD Policy, which outlines the Group’s

Supplier SHREDD process. This process is aligned

with international guidelines and principles such

as OECD Guidance for Multinational Enterprises

on Responsible Business Conduct, UN Guiding

Principles on Business and Human Rights, and

ILO Declaration on Fundamental Principles and

Rights at Work. To further support ethical business

practices, the Group provides a confidential

independent hotline for raising concerns.

EcoVadis

EcoVadis is part of the mechanism to assist in our

SHREDD process through which its sustainability

ratings platform helps us to assess a company’s

supply chain network under environmental,

ethics, labour and human rights, and sustainable

procurement criteria. The outcome of the

assessment process is a company scorecard which

provides an overall ESG performance rating of

the supplier. We continue to engage and rollout

these assessments with our supplier base which

now covers more than half of our direct spend

across all our global divisions and businesses. By

collaborating with suppliers and holding them

accountable to ESG standards, the Group aims

to not only reduce its environmental impact but

also promote social equity and governance best

practices across our global network.

Customer Experience Programme

Our customers are at the heart of everything we

do. We are always looking for ways to improve

and better meet their needs. In 2018, we launched

the Worldwide Voice of Customer programme,

led by our Global Customer Experience Team.

This initiative enables us to listen more closely to

our customers and gain a deeper understanding

of their experiences across the 200+ businesses

and diverse brands within our Group. The

programme has been invaluable in identifying

areas where we can do better. It helps us stay

attuned to changing customer expectations

and uncover new opportunities to innovate. By

focusing on what matters most to our customers,

we’ve made meaningful improvements to our

products, services, and processes, while also

driving progress in our Digital Agenda. Since its

launch, the programme has gathered feedback

from over 80,000 customers in more than 80

countries. We are grateful for their insights, and

we remain committed to listening, learning, and

driving meaningful change for a better customer

experience.

People and Organisation Policy

The People and Organisation Policy was released in

2024 and is an integral part of the Group’s human

resources processes. It considers proper balance

between fair treatment of our employees and

business needs. The principles of this policy have

global application.

Environmental Policy

The Group is dedicated to conducting its

business activities responsibly, with due

regard to environmental impacts. In 2024,

the Group updated its Environmental Policy,

detailing its commitments and approach to

five key environmental topics: Climate Change,

Pollution, Water, Biodiversity, and Resource Use

& Circular Economy. Further information on our

Environmental Policy can be found in our 2024

CSRD Sustainability Statement.

Our policies assist in

ensuring compliance

with laws and

regulations while

aligning with our

goals and values.

Sustainability Report

Business & Strategic Report

THE

BOARD

Leadership

and Experience

Danish Crown

Headquarters

Randers, Denmark

Insulation

Troldtekt

acoustic

panels; Troldtekt

line

panels

Annual Report & Financial Statements 2024

Kingspan Group plc

Annual Report & Financial Statements 2024

Kingspan Group plc

Non-executive Chairman

Jost

Massenberg

(Age 68)

Germany

Independent

Jost Massenberg was appointed to the Board in February 2018 and was appointed as non-executive

Chairman of Kingspan in 2021.

Key strengths: Jost brings a wealth of board level experience, having served in both chairman and chief

executive roles. His extensive background in the European steel and major manufacturing sectors equips him

with a deep understanding of industry dynamics. This expertise is particularly valuable as Kingspan navigates

the challenges of decarbonising its supply chain.

Previous relevant experience: Jost has held prominent leadership positions, including Chairman of VTG

Aktiengesellschaft and Chief Executive Officer of Benteler Distribution International GmbH. Prior to these

roles, he served as Chief Sales Officer and was a member of the executive board at ThyssenKrupp Steel

Europe AG. His extensive experience in these high-level positions underscores his capability to drive strategic

growth and operational excellence.

Qualifications: PhD Business Admin.

Chief Executive Officer

Gene

Murtagh

(Age 53)

Ireland

Gene Murtagh is the Group Chief Executive Officer. He was appointed to the Board in

November 1999.

Key strengths: Gene brings over 30 years of extensive experience with Kingspan, having held both

operational and leadership roles. His profound understanding of the Group’s diverse businesses and the

broader construction materials industry provides invaluable insights that drive the Group’s strategic direction.

Gene’s expertise is instrumental in advancing our core strategic pillars: Innovation, Planet Passionate,

Completing the Envelope and Global.

Previous Kingspan roles: Gene joined the Group in 1993 and has been serving as Chief Executive Officer

since 2005. Prior to his current role, he was the Chief Operating Officer from 2003 to 2005. Before that,

he held the positions of Managing Director for both the Group’s Insulated Panels business and the Water +

Energy business.

Executive directors

Geoff

Doherty

(Age 53)

Ireland

Geoff Doherty is the Group Chief Financial Officer. He joined the Group and was appointed to the

Board in January 2011.

Key strengths: Geoff is a qualified Chartered Accountant with extensive experience in capital markets

and financial management within an international manufacturing context. He oversees compliance of

the Group’s financial controls and cybersecurity programmes, ensuring robust compliance and operational

integrity.

Previous relevant experience: Before joining Kingspan, Geoff served as the Chief Financial Officer at

Greencore Group plc, where he also held the position of Chief Executive for its property and agribusiness

divisions. His diverse background equips him with a comprehensive understanding of both financial and

operational aspects of business management.

Principal external appointments: Geoff currently serves as a Non-Executive Director at Ryanair Holdings plc,

where he holds the position of Chair of the Audit Committee.

Russell

Shiels

(Age 63)

United States

of America

Russell Shiels is President of Kingspan’s Insulated Panels business in the Americas as well as Kingspan’s

Data Solutions business globally. He was appointed to the Board in December 1996.

Key strengths: Russell offers the Board significant expertise in the building envelope market across the

Americas, coupled with an in-depth understanding of the global office and data centre market. His strategic

insights and industry knowledge are invaluable assets to our leadership team.

Previous Kingspan roles: Russell has a rich history with Kingspan, having held pivotal roles in several of the

Group’s core businesses. He was previously the Managing Director of Kingspan’s Building Components and

Raised Access Floors businesses in Europe.

Gilbert

McCarthy

(Age 53)

Ireland

Gilbert McCarthy is Managing Director of Kingspan’s Insulated Panels businesses in Europe, Asia and

Australasia. He was appointed to the Board in September 2011.

Key strengths: Gilbert offers the Board a wealth of expertise in the building envelope industry, with a

particular focus on Western Europe and Australasia. His deep understanding of market dynamics and

industry trends in these regions positions him as a valuable resource for strategic decision-making and

growth initiatives.

Previous Kingspan roles: Since joining Kingspan in 1998, Gilbert has held several senior management

positions, demonstrating his leadership and operational insight. His roles have included Managing Director of

the Off-Site division and General Manager of the Insulation business.

Board Committees:

Audit & Compliance

Nominations & Governance

Remuneration Chair

Directors’ ReportThe Board

Non-executive directors

Linda

Hickey

(Age 63)

Ireland

Independent

R N

Linda Hickey was appointed to the Board in June 2013 and is the Senior Independent Director and the

Workforce Engagement Director.

Key strengths: Linda brings a wealth of knowledge and experience to the Board, particularly in the areas

of capital markets and corporate governance. Her extensive background provides invaluable insights that

enhance the Board’s decision-making processes. Additionally, Linda’s expertise in environmental, social

and governance (ESG) matters, gained from her various board level positions, further strengthens her

contributions as the Senior Independent Director.

Previous relevant experience: Linda has an impressive track record in the financial sector. She previously

held the position of Head of Corporate Broking at Goodbody Capital Markets, where she collaborated closely

with multinational corporations and the investor community. Before her tenure at Goodbody, Linda worked

at NCB Stockbrokers in Dublin and Merrill Lynch in New York. She also previously served as Chair of the Irish

Blood Transfusion Service.

Qualifications: B.B.S.

Principal external appointments: Non-executive director of Cairn Homes plc and Greencore Group plc.

Anne

Heraty

(Age 64)

Ireland

Independent

Anne Heraty was appointed to the Board in August 2019.

Key strengths: Anne brings a wealth of experience from her career in international business management

and her current role on the Board of Ibec. As the former Chief Executive Officer of Ireland’s largest

recruitment and outsourcing company, she has unparalleled expertise in talent development and retention

strategies. Anne also served on the sustainability committee of Outsourcing Inc., where her contributions

played an important role in advancing the company’s sustainability initiatives until she stepped down in July

2024.

Previous relevant experience: Anne is the founder and former Chief Executive Officer of Cpl Resources

Limited (formerly Cpl Resources plc). Additionally, Anne has held numerous other public and private non-

executive directorships, further enhancing her broad and versatile leadership capabilities.

Qualifications: B.A. in Mathematics & Economics.

Principal external appointments: Non-executive director of Ibec.

Éimear

Moloney

(Age 54)

Ireland

Independent

Éimear Moloney was appointed to the Board in April 2021.

Key strengths: Éimear brings extensive knowledge and experience in capital markets and asset

management to the table. As a Fellow of both the Institute of Chartered Accountants in Ireland and the

Institute of Directors in Ireland, she possesses extensive financial acumen and board governance experience.

Her background also includes significant compliance experience within the pharmaceutical manufacturing

sector, which she brings to both the Board and the Audit & Compliance Committee.

Previous relevant experience: Éimear was a senior investment manager at Zurich Life Assurance (Ireland)

plc, where she honed her skills in investment strategy and financial oversight.

Qualifications: B.A. Accounting & Finance; MSc. Investment and Treasury.

Principal external appointments: Non-executive director of Hostelworld Group plc and Irish Continental

Group plc.

Paul

Murtagh

(Age 51)

United States

of America

Paul Murtagh was appointed to the Board in April 2021.

Key strengths: Paul is the Chairman and Chief Executive Officer of Tibidabo Scientific Industries Limited. His

career includes significant roles in investment banking at Merrill Lynch, where he worked in both New York

and Sydney. Paul brings to the Board a profound understanding of the US market, coupled with extensive

experience in building successful global businesses.

Previous relevant experience: Paul has held prominent leadership roles in various companies. He was

the Chairman and Chief Executive Officer of Faxitron Bioptics LLC and Chairman of Deerland Probiotics &

Enzymes Inc.

Qualifications: B. Comm International.

Principal external appointments: Non-executive director in a number of private companies.

Board Committees:

Audit & Compliance

Nominations & Governance

Remuneration Chair

Annual Report & Financial Statements 2024

Kingspan Group plc

Non-executive directors

Senan

Murphy

(Age 56)

Ireland

Independent

Senan was appointed to the Board in October 2022.

Key strengths: Senan brings over three decades of international business experience, spanning multiple

industries such as building materials, renewable energy, financial services and banking. His extensive

background equips him with a deep understanding of diverse market dynamics and strategic financial

management.

Previous relevant experience: Senan has held several high-profile roles that underscore his financial and

strategic expertise. He served as the Group Finance Director at CRH plc, where he was instrumental in driving

and reporting on the company’s sustainability targets. Prior to that, he was the Chief Operating Officer of

Bank of Ireland Group. His career also includes significant roles such as Chief Operating Officer and Finance

Director at Ulster Bank, Chief Financial Officer at Airtricity, and various senior financial positions at GE in

both Europe and the United States.

Qualifications: B. Comm., F.C.A. and Dip. in Professional Accounting.

Principal external appointments: Non-executive director of Bluestar Energy Capital, a US-based global

investor in energy transition and renewable energy. He is also a member of the UCD College of Business Irish

Advisory Board.

Louise

Phelan

(Age 58)

Ireland

Independent

Louise was appointed to the Board in April 2023.

Key strengths: Louise is a highly respected business leader and strategic adviser with extensive experience

in both the renewable energy and financial services sectors. Throughout her career she has gained strong

commercial executive experience and valuable insights from her various board and advisory roles. Louise’s

expertise spans across multiple industries, making her an insightful contributor to the Board.

Previous relevant experience: Louise’s career includes her role as Vice President of Global Operations EMEA

at PayPal, where she also held senior positions in customer service, risk operations, and compliance. She also

served as President of the American Chamber of Commerce in Ireland and held a non-executive director role

at Voxpro. Until April 2024, Louise was the Senior Independent Director of Ryanair Holdings plc.

Qualifications: DPhil (hc).

Principal external appointments: Member of the Irish Government’s Top-Level Appointments Committee

(TLAC), and a member of the President’s advisory group at Technological University Dublin.

Company Secretary

Lorcan

Dowd

(Age 56)

Ireland

Lorcan Dowd was appointed Group Company Secretary in July 2005.

Relevant skills & experience: Lorcan qualified as a solicitor in 1992. Before joining Kingspan, Lorcan

was Director of Corporate Legal Services in PwC in Belfast, where he honed his skills in corporate law and

governance. Prior to his tenure at PwC, Lorcan worked as a solicitor in private practice, gaining valuable

experience in various legal disciplines.

Directors’ ReportThe Board

REPORT OF THE

NOMINATIONS &

GOVERNANCE COMMITTEE

JOST

MASSENBERG

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At Kingspan, we understand

that robust corporate

governance and a strong

ethical foundation are

critical to our sustained

success.

Annual Report & Financial Statements 2024

Kingspan Group plc

Annual Report & Financial Statements 2024

Kingspan Group plc

At Kingspan, we understand that robust

corporate governance and a strong ethical

foundation are critical to our sustained success.

Our Board is dedicated to embedding these

principles into every facet of our operations,

ensuring that our long-term objectives

are underpinned by the highest corporate

governance standards. We are committed to

continuously evolving our governance practices

to not only meet but exceed the expectations

placed upon us. This commitment is reflected

in our comprehensive reporting, which aims to

provide clear and meaningful insights into how

our governance framework supports our strategic

goals and decision making processes. Our

entrepreneurial Board remains steadfast in its

pursuit of high governance standards, fostering

a culture of accountability and innovation that

benefits all our stakeholders.

One of the key duties of the committee is to

plan for the renewal and succession of the

Board and its committees. During the year, the

Nominations & Governance Committee planned

for the retirement of Linda Hickey, who will step

down as a non-executive director, Independent

Senior Director, and Chair of the Remuneration

Committee following the upcoming AGM.

The process of selecting a new non-executive

director is complete, and the Board has agreed

to appoint Eavan Saunders as a new independent

non-executive director with effect from 1 May

2025. Senan Murphy will become the new Senior

Independent Director following Linda’s retirement.

Further details of the appointment process are

included in this report.

At Kingspan, we remain committed to fostering

an open dialogue with our shareholders and

stakeholders. These insights and feedback are

invaluable to us, and we strive to integrate them

into our strategic, governance, and sustainability

initiatives. Over the past year, we have had the

pleasure of engaging with many of you and

discussing our vision and plans for the future. I

extend my sincere thanks to all the shareholders

who provided their views during our various

engagements. As we approach our upcoming AGM,

I look forward to continuing these conversations.

Jost Massenberg

Chairman

25 February 2025

I am pleased to present the

2024 Nominations & Governance

Committee report covering

the work and activities of the

committee during the year.

Directors’ ReportReport of the Nominations & Governance Committee

Corporate Governance Statement

Kingspan is dedicated to upholding the highest

standards of governance, accountability and

transparency. This commitment is established by

the Group Board of Directors and is consistently

communicated across all divisions and

geographical locations within the Group.

This statement outlines how Kingspan has applied

the principles and complied with the provisions

set out in the UK Corporate Governance Code

(July 2018) (the Code) and the Irish Corporate

Governance Annex (the Annex). Both the Code

and the Annex can be obtained from the following

websites respectively: www.frc.org.uk and www.

euronext.com.

Euronext Dublin published the first Irish Corporate

Governance Code in 2024. The provisions of

the new Code will apply to Irish incorporated

companies with a listing on Euronext Dubin for

financial years commencing on or after 1 January

2025. Accordingly, Kingspan, in adopting the new

Code, will report against it for the first time in

respect of 2025.

Statement of compliance

The directors confirm that the Company has,

throughout the accounting period ended 31

December 2024, complied with the provisions of

the Code and the Annex as set out in this report.

Our spirit and values

Our mission is to accelerate a net zero emissions

built environment with people and planet at its

heart.

The Group recognises the importance of the

Kingspan spirit and the role it plays in delivering the

long-term success of the Company. Our business

success is inextricably linked to our behaviours,

and our aspiration is to promote and maintain the

Kingspan spirit based on our core principles:

» Integrity and transparency: We prioritise

clear, ethical and honest behaviours and

communications;

» Compliance: We adhere to all applicable laws

and regulations;

» Safety and wellbeing: We respect and

prioritise the safety and wellbeing of our

colleagues;

» Protection: We are committed to

safeguarding our Group’s assets; and

» Sustainability: We uphold our commitment to

a more sustainable future.

By embodying these principles, we aim to ensure

the continued success and positive impact of

Kingspan.

Board committees

The Board has established three standing

committees: Audit & Compliance, Nominations &

Governance, and Remuneration. Each committee

operates under written terms of reference that

outline their authorities and duties, which are

available on the Group’s website at

www.kingspan.com.

The activities of each committee throughout the

year are detailed in their respective reports within

this Annual Report.

The members of each committee as at the

date hereof, along with the date of their first

appointment to the committee and their

attendance at Board and committee meetings are

set out in the following tables.

Audit & Compliance Committee

Senan Murphy (Chair) Appointed 2022 Independent

Anne Heraty Appointed 2019 Independent

Éimear Moloney Appointed 2021 Independent

Nominations & Governance Committee

Jost Massenberg (Chair) Appointed 2019 Independent

Linda Hickey Appointed 2021 Independent

Anne Heraty Appointed 2023 Independent

Remuneration Committee

Linda Hickey (Chair) Appointed 2015 Independent

Éimear Moloney Appointed 2023 Independent

Louise Phelan Appointed 2023 Independent

Annual Report & Financial Statements 2024

Kingspan Group plc

Attendance at AGM, Board and Committee meetings during the year ended 31 December 2024

AGM 2024 Board

(maximum 8)

Audit &

Compliance

(maximum 4)

Nominations

& Governance

(maximum 1)

Remuneration

(maximum 4)

Jost Massenberg

8/8 1/1

Gene Murtagh

8/8

Geoff Doherty

8/8

Russell Shiels

8/8

Gilbert McCarthy

8/8

Linda Hickey

8/8 1/1 4/4

Anne Heraty

8/8 4/4 1/1

Éimear Moloney

8/8 4/4 4/4

Paul Murtagh

8/8

Senan Murphy

8/8 4/4

Louise Phelan

8/8 4/4

The Nominations & Governance Committee met once

in 2024. The activities of the committee included the

following matters:

» Planning for the retirement of Linda Hickey;

» Assessing candidates for appointment as new

independent non-executive directors (iNEDs);

» Reviewing committee membership;

» Nominating directors for re-election at the AGM;

» Approving the Report of the Nominations &

Governance Committee; and

» Considering shareholder feedback from the

2024 AGM.

Board responsibilities

At Kingspan, there is a clear division of responsibilities

between the Board and executive management.

The Board retains control over key strategic and

major decisions, ensuring effective governance and

oversight.

The Chairman leads the Board and is responsible for

its overall effectiveness in directing the Company. A

key role of the Chairman is to promote a culture of

objectivity, openness, and debate. Additionally, the

Chairman facilitates constructive Board relations,

promotes the effective contribution of all non-

executive directors, and ensures that directors receive

accurate, timely, and clear information.

The Board’s diverse skills, backgrounds and

perspectives contribute to the effective leadership

and strategic development of the business. The

composition of the Board is central to ensuring that all

directors can contribute meaningfully to discussions.

The Board continually reviews its composition to

ensure ongoing refreshment and relevance.

As a means of fostering open dialogue and director

engagement, the non-executive directors, led by

the Senior Independent Director, meet without the

Chairman present at least annually. Similarly, the

Chairman holds meetings with the non-executive

directors without the executives present. These forums

encourage scrutiny, discussion and challenge in a

collaborative atmosphere.

All directors have access to the advice and services

of the Company Secretary. Where necessary, or

requested, directors can also avail of independent

third-party advice on Company issues or relevant

Board matters including, but not limited to, matters

such as remuneration and succession. The Company

has procedures in place to ensure that all new

directors receive formal induction and familiarisation

with Kingspan’s business operations, sustainability

matters and systems on appointment. This

includes visits to manufacturing sites with detailed

explanations of the site operations.

Directors’ ReportReport of the Nominations & Governance Committee

Roles and Responsibilities

The Board

The Board is responsible for the effective

leadership and the long-term success of the

Group, generating value for shareholders and

contributing to wider society. It shapes the

ethos and values of the Group, oversees the

implementation of strategy and ensures good

corporate governance practices are in place.

Chairman

The Chairman’s primary responsibility is to lead the

Board. The Chairman is responsible for setting the

Board’s agenda and for the efficient and effective

working of the Board. The Chairman ensures

that all members of the Board, particularly the

non-executive directors, have an opportunity to

contribute effectively and openly. The Chairman

is also responsible for ensuring that there is

appropriate and ongoing communication with

shareholders.

Senior Independent Director

The Senior Independent Director of the Board is

available to shareholders who have concerns that

cannot be addressed through the Chairman, Chief

Executive Officer or Chief Financial Officer. The

Senior Independent Director also leads an annual

meeting with the non-executive directors to

appraise the workings of the Board.

Chief Executive Officer

The Board has delegated executive responsibility

for running the Group to the Chief Executive

Officer and the executive management team.

The Chief Executive is responsible for the strategic

direction and the overall performance of the

Group, and is accountable to the Board for all

authority delegated.

Company Secretary

All directors have access to the advice and services

of the Company Secretary who is responsible for

ensuring that Board procedures are followed.

The Company Secretary is also responsible for

advising the Board, through the Chairman, on all

governance matters.

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Annual Report & Financial Statements 2024

Kingspan Group plc

Workforce engagement

The Board recognises the importance of engaging

with all of our key stakeholders. Elsewhere in this

Annual Report we have detailed the long-lasting

partnerships we have developed with customers,

suppliers and communities. We greatly value

engagement with our workforce. Our people are

key to developing and delivering on our strategy,

and are fundamental to our long-term success.

Linda Hickey, as Senior Independent Director, is

appointed as the director responsible for workforce

engagement, to facilitate the channelling of

employee views to Board discussions. During the

year, she had the opportunity to hear employee

views on a range of topics through engagement

with our People Passionate team, attendance

at our European Works Council meeting in the

Netherlands and by meeting employees onsite

during Board visits.

In 2022, our first European Works Council (EWC)

was established providing a platform to engage

with our employees at a European level on the

strategy and development of the business, as well

as employment, investments and its transnational

issues. The EWC met in person for its second

plenary meeting at the Kingspan Unidek site in

the Netherlands in November 2024. Eighteen

representatives participated in a varied agenda

that included business and financial updates and

presentations on the wider business strategy. We

also discussed Health & Safety matters and had

updates on our People Passionate and Planet

Passionate programmes. Senior management

attended along with Linda Hickey, the Workforce

Engagement Director. These meetings have been

constructive with a very high level of engagement

from the national employee representatives.

We are People Passionate and during 2024

Kingspan continued to progress the design

and implementation of the People Passionate

programme across all its global businesses. This

programme is a team-led initiative, designed to

create the employee experience together.

A global steering group representing all divisions

held quarterly meetings during the year,

establishing a fresh governance and reporting

framework across the Group. The businesses

have integrated the People Passionate pillars

into their people and organisational plans and

continue to report on progress and measure the

effectiveness of their actions through feedback

from employees. All the key processes are being

built into a new global technology platform which

was commissioned during the year, to enable

the overall execution of the People Passionate

programme.

During the year the Group performance and

development framework was refreshed, and

associated communications and development

programmes were also published to underpin this

priority. To further support high performance,

three new leadership programmes were rolled out

aligned with the business drivers. To date, over

250 leaders have completed these development

programmes across all our businesses.

The Group Inclusion & Diversity Forum undertook

a survey to better understand and promote an

inclusive workplace. The recommendations of this

survey will shape the 2025 priorities, with a number

of people policies having already been adopted

by the Board and launched across the Group

with the associated staff training. These include

the Inclusion & Diversity Policy and the People &

Organisation Policy.

The People Passionate programme has also been

introduced and shared with our recently acquired

businesses. This approach helps to articulate the

Kingspan spirit and encourages integration into

the Group.

These strong People Passionate foundations have

been set and underpinned by clear and active

commitment from the Group CEO and the Board.

Board diversity

The Board values diversity in all its forms and

recognises the role it can play in contributing to

the Board’s perspective and decision making. The

Board adopted a Board Diversity Policy in 2022

which supports:

» increasing female representation on the

Board over the coming years to achieve the

best practice benchmark of a minimum 40%

representation of both genders; and

» increasing the international representation on

the Board.

A copy of the Board’s policy is available on the

Group’s website www.kingspangroup.com. The

Board intends to achieve these objectives through

future appointments as the Board is refreshed,

having regard for the need to maintain a stable

and effective Board during this period.

The Board currently comprises seven male and four

female directors (including the Senior Independent

Director) with female directors representing 36%

of the Board. The Company continues to make

progress towards meeting the Board’s Diversity

Policy target of 40% female representation, along

with its broader gender and international diversity

objectives.

Directors’ ReportReport of the Nominations & Governance Committee

Aligning succession planning to Kingspan’s

wider strategy is a cornerstone of strong board

governance, and has been, and will continue to

be, a focus of the committee. A fundamental

aspect of overseeing appointments to senior

management remains the development of a diverse

leadership pipeline. Among Kingspan’s senior

management team, 31% of senior leadership roles

reporting directly to the CEO are held by females,

reflecting the Company’s ongoing commitment to

gender diversity in leadership. Furthermore, this

year 20% and 44% of attendees on Kingspan’s

senior management and graduate development

programmes respectively were female, and 80%

and 69% of the participants in the respective

programmes were from an international (non-Irish)

background, as Kingspan is attracting more and

more diversity into senior leadership roles.

Board composition and renewal

Kingspan is committed to the ongoing renewal

of the Board, which is essential to bring fresh

thinking and constructive challenge to the Board’s

decision making. The Nominations & Governance

Committee leads the process for Board

appointments while ensuring plans are in place for

orderly succession to both the Board and senior

management positions.

In 2024, the committee led the search for

the appointment of a new independent non-

executive director. In considering candidates for

appointment as non-executive directors, the

committee remains guided by the principle that

all appointments will be made based on merit

and skills, whilst having regard to our Board

Diversity Policy, including diversity of gender, age,

nationality and ethnicity. The Board believes that

international skills and experience are equally as

important as nationality, and will have regard to

both factors in making appointments.

The committee agreed the criteria for the new

appointment, to include broad international

experience along with commercial and regulatory

expertise. The committee considered whether or

not to engage a firm of consultants to assist in

the process of recruiting the new non-executive

director, and agreed that in order to ensure best

fit with the Company, it would use the extensive

knowledge and contacts of the committee to

identify suitable candidates.

The committee maintains a pool of potential

candidates which it considered. Having had

regard to key criteria for the role, the committee

identified Eavan Saunders, Managing Partner

of Dentons Solicitors Ireland, as its preferred

candidate to recommend for approval to the

Board. With over 25 years’ experience in London

and Dublin as a top-tier corporate lawyer

specialising in international M&A and capital

markets, working with an array of multinational

public and private sector clients across many

different sectors. Ms Saunders’ appointment

reflects Kingspan’s global business and broadens

the skillset and experience of the Board, whilst

ensuring that the appointment process is aligned

with our diversity commitment.

Key strengths and relevant experience of each

of our current directors are set out in the Board

biographies in the Directors’ Report, and a

breakdown of the background and principal skills

and experience of the non-executive directors on

the Board is set out in the table below.

Experience/Skillset Jost

Massenberg

Linda

Hickey

Anne

Heraty

Éimear

Moloney

Paul

Murtagh

Senan

Murphy

Louise

Phelan

Domicile Germany Ireland Ireland Ireland USA Ireland Ireland

International

ü ü ü ü ü ü ü

Financial

ü ü ü ü ü ü ü

Capital markets

ü ü ü ü ü ü

Governance

ü ü ü ü ü ü ü

Leadership

ü ü ü ü ü ü ü

Industry

ü ü ü ü ü

Environmental*

ü ü

Risk

ü ü

Workforce

ü ü ü ü ü ü ü

* In particular, with respect to Kingspan’s markets, raw materials and Planet Passionate strategy.

Annual Report & Financial Statements 2024

Kingspan Group plc

As part of the committee’s continuous Board

succession planning, the committee also reviewed

the membership of the Board committees,

and agreed the following appointments with

effect from 1 May 2025, following Linda Hickey’s

retirement from the Board:

» Senan Murphy appointed as Senior

Independent Director;

» Éimear Moloney appointed as workforce

engagement iNED;

» Eavan Saunders to be appointed as CSR

engagement iNED;

» Éimear Moloney appointed as Chair of the

Remuneration Committee;

» Eavan Saunders to be appointed to the

Remuneration Committee; and

» Louise Phelan appointed to the Nominations &

Governance Committee.

Board induction programme

Upon joining the Board, each new director

participates in an induction programme to gain

an understanding of Kingspan and enhance

effectiveness in the non-executive role. The

induction programme is built around a series of

meetings with the Board, the Company Secretary

and key members of the senior management

team as well as onsite visits to understand the

operations of the business. Each new director also

completes online training on Directors’ Duties

as well as the Market Abuse Regulations and

Kingspan’s Share Dealing Policy and Code.

Board evaluation

Kingspan has established formal procedures for

evaluating its Board, committees and individual

directors. The primary objective of this evaluation

is to ensure that the Board, both collectively

and individually, is performing effectively and to

maintain stakeholder confidence in its governance.

Annual and triennial reviews

The Chairman conducts an annual review of the

Board’s performance and the conduct of Board and

committee meetings. Additionally, every third year,

an externally facilitated review of the Board’s overall

corporate governance is undertaken. The next

triennial external review will be undertaken in 2025.

As detailed in our 2022 Annual Report, an

externally facilitated review of the Board’s

performance was conducted in 2022 by Better

Boards. Following this evaluation, the Board has

implemented its recommendations, including the

adoption of a formal Board Diversity Policy. This

policy underscores the Board’s commitment to

enhancing diversity and proactively addressing

gender and diversity targets through upcoming

vacancies.

In 2024, the Chairman carried out his annual

review through a series of one-on-one meetings

with each executive and non-executive director.

Additionally, feedback was gathered from the

Senior Independent Director, who conveyed the

collective views of the non-executive directors

regarding the Board’s operations. The outcome

of this evaluation process was positive, providing

the Board with assurance that it is functioning

effectively.

Effectiveness and independence

The committee conducts an annual review of

the Board’s size and performance to ensure its

effectiveness. This process is designed to maintain

the impartiality and independence of non-

executive directors, enabling them to meet the

challenges of their roles effectively. Throughout

the year, 55% of the Board was composed of

independent non-executive directors. Linda

Hickey serves as the Senior Independent Director,

providing a sounding board for the Chairman

and acting as an intermediary for other directors

and shareholders when necessary. The directors

consider that the Board has strong independent

representation.

Assessment of independence

The Board carefully considers various factors

that might affect, or appear to affect, the

independence of its directors. It has determined

that all non-executive directors, with the exception

of Paul Murtagh, are independent.

In evaluating Linda Hickey’s independence, the

Board had due regard to her length of service on

the Board, and to her previous position as a senior

executive at Goodbody Stockbrokers, one of the

Company’s corporate brokers from which she

retired in April 2019. In 2022, the committee agreed

to extend the term of Ms Hickey for a period of up

to three years to 2025, subject to annual re-election

at the AGM, in order to maintain a stable and

effective Board during that period.

In assessing Ms Hickey’s independence, the

committee concluded that she has consistently

demonstrated a strongly independent voice at the

Board and its committee meetings, including as

chair of the Remuneration Committee, and that

she has always exercised her judgement as a non-

executive director and as the Senior Independent

Director, independent of any other relationships

within the Board. The Board also took into account

her extensive experience in capital markets and

governance, which is hugely valuable to the

Directors’ ReportReport of the Nominations & Governance Committee

Company and our shareholders, and concluded

that her independence was not affected.

Conflicts of interests

The Board recognises the critical role of

independent representation in ensuring the

effective functioning of the Board. Independent

directors provide essential scrutiny and, where

necessary, challenge management as part of

a robust governance framework. To manage

conflicts of interest, the committee has

implemented a comprehensive Conflicts of Interest

Policy that guides all Board decisions when actual

or potential conflicts arise.

Policy guidelines

The policy mandates that directors must avoid

situations where they have, or could have,

a direct or indirect interest that conflicts, or

may conflict, with the Company’s interests.

Directors are required to notify the Board of

any potential situational and/or transactional

conflicts. Upon receiving such notifications, the

Board will evaluate the conflict and determine

the appropriate course of action. The Board’s

considerations will include:

» Avoidance or documentation: Whether the

conflict needs to be avoided entirely or simply

documented;

» Impairment of impartiality: Whether the

conflict will realistically impair the director’s

ability to participate impartially in decision

making;

» Appearance of impropriety: The potential for

creating an appearance of improper conduct

that could undermine confidence in, or the

reputation of, the Company; and

» Mitigation measures: Any steps that can

be taken to avoid or mitigate the potential

conflict.

Directors are prohibited from participating in

discussions or voting on matters in which they

have a conflict of interest. This ensures that all

decisions are made impartially and in the best

interest of the Company.

External commitments

Directors are permitted to serve on other boards,

provided they continue to demonstrate the

necessary commitment to effectively discharge

their duties. The committee continuously reviews

the extent of the directors’ external interests

throughout the year to ensure they do not interfere

with their responsibilities to the Company.

The committee is confident that each director

dedicates sufficient time to their duties related

to the Company. Both the Chairman and each

director have confirmed their ability to fulfil their

obligations to the Company. The committee

will maintain ongoing oversight of the external

commitments of all directors to ensure continued

compliance and dedication.

Shareholders’ meetings and rights

The Company operates under the Irish Companies

Act 2014 (the Act). The Act provides for two types

of shareholder meetings: the Annual General

Meeting with all other meetings being called

Extraordinary General Meetings.

Annual General Meeting (AGM)

The Company is required to hold an AGM each

year, in addition to any other shareholder

meetings that may occur within the same

year. The AGM serves as a crucial platform for

shareholders to engage with and hear from the

Company’s directors. The ordinary business of an

AGM includes:

» Receiving and considering the Company’s

Annual Report and statutory financial

statements;

» Reviewing the affairs of the Group;

» Electing directors;

» Declaring dividends;

» Appointing or reappointing auditors; and

» Fixing the remuneration of auditors and

directors.

Extraordinary General Meeting (EGM)

All other shareholder meetings outside the

AGM are classified as EGMs. These meetings are

convened to address urgent or special matters

that require shareholder approval.

Meeting protocols

» Chairmanship: The Chairman of the Board of

Directors presides over every general meeting.

In the Chairman’s absence, one of the directors

present will assume the role of chairman.

» Quorum: A quorum for a general meeting

requires the presence of at least three

members, either in person or by proxy, who are

entitled to vote.

» Voting rights: All ordinary shares rank pari

passu and carry equal voting rights. Each

member present in person or by proxy has one

vote on a show of hands and one vote per

share on a poll. In the event of a tie, whether

on a show of hands or a poll, the chairman has

a casting vote.

Annual Report & Financial Statements 2024

Kingspan Group plc

Further details regarding shareholders’ rights

in relation to General Meetings can be found in

the Report of the Directors and the Shareholder

Information section of this Annual Report.

The Grenfell Inquiry and Eversheds Sutherland

Review

In September 2024, Kingspan welcomed the

publication of the final report from the Grenfell

Inquiry, which is crucial to a public understanding

of what went wrong and why.

The report clearly and unambiguously explained

that the type of insulation was immaterial to the

speed of fire spread, and that the principal reason

for the fire spread was the external polyethylene-

cored ACM cladding, which was not made or

provided by Kingspan.

Kingspan has long acknowledged that

unacceptable historical failings occurred in

part of our UK insulation business. While deeply

regrettable, these failings were not found to be

causative of the fire.

The Board and CEO of Kingspan have taken

extensive steps (cultural, operational and

structural) to address the historic failings. These

include the implementation of extensive and

externally verified measures to ensure our conduct

and compliance standards are world leading,

including:

(1) the roll-out of a group-wide ISO 37301 global

compliance programme,

(2) implementation of a group-wide Marketing

Integrity Manual ensuring the highest

standards of product information in its

marketing and certification,

(3) internal audit of product and marketing

compliance, and

(4) an updated Code of Conduct and external

Speak Out hotline for all businesses. Further

details of the measures taken by Kingspan

are published on our microsite: inquiry.

kingspan.com.

As reported in 2021, Kingspan announced

a rigorous review, conducted by Eversheds

Sutherland, of compliance and governance in our

UK Insulation Boards business, to ascertain how

the issues identified in the course of the Inquiry

occurred, what changes had been made by the

business, and what further actions should be

taken (the Recommendations).

In its 2024 report, Eversheds Sutherland were

engaged to undertake a further review to assess

whether all of the Recommendations had been

actioned fully. In its report, issued in January 2024,

Eversheds Sutherland found that:

» All of the Recommendations have been

actioned;

» Implementation of the Recommendations has

been carried out to a very high level;

» There is strong evidence of an appropriate

focus and commitment to compliance at

Group and divisional level;

» Compliance is embedded across the activities

of the Group and the Insulation Division;

» The Group has applied significant resources

to compliance and has appointed high

quality personnel to key positions across the

Compliance, Marketing, Technical and Audit

functions across the Group and the Insulation

Division;

» There is strong evidence of clear accountability

for risk management, specifically in respect

of fire testing, accreditation, classification of

products and marketing material; and

» There is clear evidence of consistent, well-

documented and effective controls and audit

practices in respect of product changes,

training, fire testing and representation of

product capabilities in the sale process.

Further details of the Eversheds Sutherland’s

Review and Recommendations is published on our

microsite: inquiry.kingspan.com.

Kingspan has committed to pay our share

of remediation costs in circumstances where

we have responsibility for the inappropriate

use of our K15 insulation product in buildings,

and its safe retention cannot be supported by

testing. Kingspan also continues to stand by our

commitment to contribute to an appropriate

industry-wide scheme, to address wider fire safety

issues where those responsible can’t or won’t pay.

Directors’ ReportReport of the Nominations & Governance Committee

BOARD BALANCE

AS AT 31 DECEMBER 2024

INDEPENDENCE

GENDER DIVERSITY

AGE RANGE

TENURE

45%

55%

64%

36%

Independent

Non-Independent

Female

Male

51-60

61-70

36%

64%

46%

18%

27%

Less than 3 years

More than 3 and Less than 6 years

More than 6 and less than 9 years

More than 9 years

Annual Report & Financial Statements 2024

Kingspan Group plc

Industrial Building

ASPLA

Almería, Spain

Insulated Panels

Veneto 85 linear

ceiling

Directors’ ReportReport of the Nominations & Governance Committee

REPORT OF THE

REMUNERATION

COMMITTEE

LINDA

HICKEY

Kingspan has continued its

growth to be a highly successful,

global organisation since our

Remuneration Policy was last

reviewed, with the creation of

a new division, a materially

broadened product range and

further geographical expansion.

Le Pal

Amusement Park

Saint-Pourçain-sur-

Besbre, France

Insulated Panels

LANDRYBAC

roofing profile

Annual Report & Financial Statements 2024

100

Kingspan Group plc

Annual Report & Financial Statements 2024

Kingspan Group plc

100

Kingspan has continued its growth to be a

highly successful, global organisation since our

Remuneration Policy was last reviewed, with

the creation of a new division, a materially

broadened product range and further

geographical expansion. The proposed changes

to our Remuneration Policy will ensure Kingspan’s

remuneration arrangements allow us to secure

the calibre of talent and skill sets required and

incentivise them to continue to deliver our strategy

in a highly competitive global market in the

coming years.

Remuneration philosophy and approach

Kingspan’s remuneration philosophy is a simple

one: to pay for performance and delivery of

our strategy, based on transparent metrics

and ambitious targets, clearly aligned with the

interests of shareholders and other stakeholders.

Our current Directors’ Remuneration Policy was

approved by shareholders at our 2022 AGM. Apart

from some increases to opportunity and changes

to the policy to reflect changes in governance

practice, the implementation of the remuneration

policy has remained largely unchanged from the

policy approved in 2019. Following another year of

record financial performance in 2024, at the 2025

AGM a revised remuneration policy will be put to

shareholders for approval. The new policy includes

certain changes to reflect the significant increase

in the size and complexity of the Group and its

operations over the past number of years and to

ensure we have a policy which is fit for purpose for

the future.

2024 business performance and pay outcomes

This year was another record year for Kingspan

despite sluggish growth and geopolitical

uncertainties affecting construction activity in

many of our core markets. Group revenues rose

to €8.6bn (6%), trading profit was €907m (up

3%) and Earnings Per Share (EPS) increased to

365.2 cent (up 4% over prior year). The delivery of

this record financial performance was driven by

significant progress across our key strategic pillars.

Geographic expansion continued both organically

and through acquisition. We added new innovative

bio-based insulations to our product suite, growing

the range and scale of our Roofing + Waterproofing

division, and made excellent progress towards

Statement by the Chair of the

Remuneration Committee

Dear Shareholders,

On behalf of the Remuneration

Committee (the committee),

I am pleased to present the Report

on Directors’ Remuneration for

2024. I would also like to thank

shareholders for their support at our

2024 AGM when our Remuneration

Report was supported by over 98%

of votes cast.

Contents Page

Statement by the Chair

101

Remuneration at a glance

109

Remuneration Policy

110

Annual remuneration report

- 2024 remuneration outturn

116

- Implementation of the Remuneration Policy for 2025

124

- Committee governance

125

101

Directors’ ReportReport of the Remuneration Committee

our Planet Passionate objectives, all of which are

detailed throughout this Annual Report. As we

continue to grow, and deliver for shareholders, our

focus has been to ensure not only the retention

and motivation of our management team but

ensure we remain able to attract new talent, which

bring diverse and innovative skills to Kingspan.

In 2024, and as detailed in last year’s Annual

Report, the CEO and Mr Shiels received basic

salary increases of 5%, and Mr Doherty and

Mr McCarthy received increases of 9.5%. This

compares with general workforce increases for

the markets in which they are based of c.4% to

5%. The increases in base salaries for Mr Doherty

and Mr McCarthy were aligned with increases in

the scope of their responsibilities (as set out in

last year’s Annual Report). Pensions for executive

directors were reduced again in 2024, in line with

the stepped reductions previously agreed to bring

executive pensions to between 12% and 14% in

2024, with further reductions to 10% of salary for

all executive directors, effective from 2025.

Annual bonus targets for 2024 were based on

a mixture of Group and divisional financial

performance measures, as well as non-financial

targets based on customer experience Net

Promoter Score (NPS). Payouts under the annual

bonus scheme for executive directors in 2024

were between 40.6% and 63.6% of maximum,

reflecting strong Group results and robust

divisional performances in the year, against

stretching targets. Full details of bonus payouts

are detailed on page 118.

Vesting levels under the Performance Share Plan

(PSP) awards made in 2022 were at 23.14% of

maximum, with EPS targets partially met at

13.14% and Planet Passionate targets being

achieved in full. The Total Shareholder Return

(TSR) element of the PSP failed to vest due to

performance below the median of Kingspan’s

peer group. Despite record financial performance

during the performance period, vesting levels

under the PSP were low, reflecting the stretching

targets set by the committee as well as the high

EPS and TSR starting points because of strong

performance in previous years. Full details of

vesting levels and targets are detailed on page 119.

Policy review

Over the last six years, Kingspan has transformed

in terms of global breadth, scope, scale and

performance. The business has grown, organically

and through acquisition, into a diversified global

provider of advanced insulation and building

envelope solutions. At the heart of Kingspan’s

growth and transformation has been our executive

team. Kingspan’s ambitious strategy has been

developed and executed by this team with the

support of senior management and under the

stewardship of the Board. The consistent delivery

of strategy, resulting in record profits year on year

since 2019 despite a variety of challenging trading

conditions, means that Kingspan today is a larger,

stronger and more robust business.

Objectives of the review

As Kingspan continues to refine and enhance its

strategy, identifying new products and markets

for further growth, the committee is conscious

of ensuring remuneration arrangements for our

high performing executive and senior teams are

competitive when reviewed against global and

local peers, where pay levels are materially higher.

On the back of significant growth and increasing

competition for high calibre talent, during the

second half of 2024 the committee conducted a

comprehensive review of the existing executive

directors’ remuneration arrangements, with the

support of independent remuneration advisors,

and through direct engagement with shareholders.

While our philosophy on remuneration has not

changed, the scope, scale and reach of our

business has. As a global company, operating

in multiple markets with differing levels and

structures of remuneration, the committee was

fundamentally aware of the growing challenges

in attracting and retaining talent at all levels of

the organisation, and the effects of compression

on the next layers of senior management below

executive director. Recognising there is scrutiny on

any changes in remuneration from stakeholders,

the committee is charged with ensuring

the remuneration framework and incentive

arrangements will allow us to compete for talent

at every level, which is a core component of our

ability to continue to create value for shareholders

and other stakeholders in the years ahead.

Following a period of high growth and

performance, the committee has sought to put in

place a remuneration policy that will support the

continued delivery and evolution of strategy, as

we look to ensure that the key strategic decisions

made in recent years under the executive directors

and senior management continue to deliver high

levels of performance and returns.

In reviewing the remuneration policy, the

committee was guided by the following key

priorities:

» Strengthening the link between pay and

performance: Our philosophy centres on

rewarding sustainable, long-term business

growth and value creation for shareholders.

Achievement of higher potential pay outcomes

Annual Report & Financial Statements 2024

102

Kingspan Group plc

under the proposed policy will only occur in

the event of the delivery of higher levels of

performance, based on additional metrics and

stretching targets set against previous years’

performance.

» Ensuring market competitiveness: While we

do not aim to position remuneration at the

market median, the current gap between our

pay levels and those of our peers has widened

to an extent that could undermine our ability

to retain and attract senior talent, particularly

when viewed against the changes the Group

has undergone over the past number of years.

» Flexibility and foresight: The new policy

is designed to provide flexibility and remain

relevant over the next four years, reflecting

the Group’s growth trajectory and the evolving

priorities of our business and stakeholders.

Business strategy and performance context

Kingspan first adopted a Remuneration Policy

in 2019, which was subsequently updated and

approved in 2022, largely to reflect changes

in governance practice and to allow for the

potential increase in opportunity under the PSP.

While the changes in 2022 were important, they

did not fundamentally alter the remuneration

structure or potential reward levels. As outlined,

performance during the same period has

transformed the size and scale of the Group, as

set out in the table below.

In addition to our strong performance and

growth over the past number of years, the Group

has made significant progress in evolving and

achieving its strategic priorities, resulting in

consistently high performance.

» Completing the envelope: Established a new

Roofing + Waterproofing division and grown

what was our nascent Light, Air + Water

business to c.€1bn revenue with the integration

of several acquisitions in both Europe and the

Americas.

» Innovation: Expanded our range of products

to offer the full spectrum of insulation solutions

including natural and stonewool insulation

products, as well as lower embedded carbon

products.

» Planet Passionate: Set ambitious Planet

Passionate targets for 2030 aligned with a

1.5°C goal, approved by the Science-Based

Initiative.

» Globalisation: Continued to expand our

geographic footprint through both organic

and inorganic growth in Latin America and

Southeast Asia.

Our sector peers

While the primary drivers of the proposed

remuneration policy changes are to incentivise

superior performance of the existing management

team, the committee employed benchmarking

data as a reference point in determining the

appropriateness, and extent of, any changes to

the remuneration policy. In determining the final

proposals, the committee selected a comparator

peer group which reflects Kingspan’s operations,

complexity, size and global footprint. They

represent a comparable group of companies

against whom we measure our performance

(which comprise the 2024 TSR benchmark for

long-term incentive awards) and compete for

senior level talent and expertise. The committee

also had regard to local Irish listed peers, and a

London Stock Exchange (LSE) peer group of 30

companies which have a median that is reflective

of both Kingspan’s market capitalisation and

revenue.

1 Calculated using average share price as of Q4 2018 and Q4 2024, and assuming dividends are

reinvested.

2018 2024 % Change

Revenue growth €4.4bn €8.6bn Up 95.5%

EPS performance 184.0c 365.2c Up 12.1% CAGR

TSR performance

€39.07 €75.85 Up 101.2%

Global scale 13,469 employees

70 countries

25,401 employees

80 countries

Up 88.6%

Directors’ Report

103

Report of the Remuneration Committee

CEO - TOTAL TARGET REMUNERATION COMPARED TO 13 INTERNATIONAL PEERS AND AN

LSE GROUP

€0 €2,000 €4,000 €6,000 €8,000

€10,000

Expected Value of LTIs

On-target bonus

Total fixed pay

Kingspan CEO - Current FY24

LSE Group - Lower Quartile

Kingspan CEO - FY25

LSE Group - Median

LSE Group - Upper Quartile

The peer comparator group includes:

Armstrong World

Industries Inc

Masco Corporation

Boral Ltd Mohawk Industries Inc

Builders FirstSource Inc Owens Corning Inc

Carlisle Companies Inc Rockwool A/S

Compagnie de Saint

Gobain SA

Sika AG

CRH plc Wienerberger AG

Holcim AG

While some investors express a preference to limit

comparisons of their remuneration practices to

local peers, Kingspan is a truly global business.

We have a significant footprint in the Americas,

where 17% of our employees are based and 22%

of our revenue was generated in 2024. The Group

has a US-based executive director and senior

management team, as well as a ‘hands on’

management culture, with our executive directors

and senior management taking a global approach

by directly overseeing and managing our significant

operations in our many different jurisdictions.

While our primary review has taken account of our

global business and footprint, our remuneration

arrangements are also reviewed against Irish

and UK listed companies with similar sizes and

operations, where the pay gap was similar.

Analysis of our comprehensive peer group

demonstrates that pay is significantly below market

rates at our most direct competitors and peers, a

gap that has persisted over time, despite continued

growth and strong financial performance. The

committee, in determining the final structure of the

proposed policy, identified a significant risk around

the disconnect between our pay and performance,

our pay and market position, and our pay and

calibre of talent. The increasingly competitive global

landscape for senior leadership talent has resulted

in upwards pressure on pay, significant compression

challenges and we have observed disparities when

recruiting talent outside of the market where we are

incorporated.

Shareholder engagement

As part of the review, and to ensure we

incorporate the views of our shareholders in our

decision making, we wrote to holders of over 79%

of the Company’s issued share capital, to set

out proposed changes to our policy and to solicit

feedback. In response, we were pleased to have

met with, or received written feedback from,

shareholders representing over 56% of the issued

share capital, as well as both major proxy advisors.

As a committee, and a board, we have always

valued meaningful engagement with shareholders,

which has consistently played a role in determining

our approach to governance, remuneration and

reporting. During engagement, the committee

articulated the rationale and objectives of the

review set out in this report, considerations that

shareholders acknowledge and were supportive of.

The Remuneration Policy being put to shareholders

has been crafted following three rounds of

constructive engagement with shareholders and

proxy advisors, as set out overleaf.

CEO Remuneration (€'000)

Annual Report & Financial Statements 2024

Kingspan Group plc

104

Engagement First round Second round Third round

Timing July 2024 November - December 2024 January - February 2025

Extent of

engagement

» Letter issued

to shareholders

representing 23%

of issued share

capital to present

initial proposals.

» Received feedback

from shareholders

representing 23% of

issued share capital.

» Letter issued to additional

shareholders representing

56% of issued share

capital to present

revised proposals.

» Received feedback from

shareholders representing

23% of issued share

capital (in addition

to those that already

provided feedback

through the first round).

» Met proxy advisor

Glass Lewis.

» Follow-up on second

round of engagement

and presentation of

final proposals.

» Received feedback

from shareholders

representing 10% of

issued share capital.

» Total shareholder

feedback received

through the

engagement process

was 56% of issued

shared capital.

» Met proxy advisor ISS.

Main

outcomes

Gathered broad

shareholder support

for our approach.

Revised the proposals

to increase downside risk

for executive directors

(see further commentary

below on the TSR multiplier

attached to the proposed

LTIP).

Clarified the timing of the

review (see commentary

below).

Gathered broad shareholder

support for our revised

proposals.

Communicated detailed

rationale for the changes

to policy, with a significant

majority of shareholders

supportive of the proposed

changes.

The final proposed changes to the remuneration

policy reflect changes made as a result of the

extensive programme of shareholder consultation

over a six-month period:

» Support was expressed for the introduction

of new metrics, including Return on Capital

Employed (ROCE) as part of the LTIP and

Health & Safety in the annual performance

bonus.

» Almost all shareholders were supportive of the

rationale for the increase in maximum bonus

and LTIP opportunities, given the significant

increase in the size of the business, the

recognition of remuneration below market,

and the committee’s track record of setting

stretching targets (in 2024, payouts under the

annual bonus scheme for executive directors

were between 40.6% and 63.6% of maximum,

despite the delivery of record financial

performance).

» Shareholders noted the risk around the TSR

multiplier potentially protecting executives

from share price volatility, which has been

addressed by introducing a potential reduction

in overall vesting levels in the event of TSR

performance below median.

Timing of the review

The committee and shareholders also discussed

the timing of the proposed revision. As part of its

review, the committee carefully considered the

Grenfell Inquiry’s Phase 2 Report (the Inquiry),

and had regard both to the report’s findings

and the extensive measures taken by the Group

in response thereto, as detailed in the Report

of the Nominations & Governance Committee.

The committee also recognised that in 2021, the

committee exercised its discretion to reduce the

executive directors’ 2020 bonuses to zero (despite

record performance) and that there was no pay

increases for 2021, considering the matters which

came to light during the Inquiry at that time.

Both the committee and many shareholders

recognised the need to make these policy changes

to continue to drive superior performance over the

next four years. The committee was unanimous

that now was the appropriate time to review the

Remuneration Policy, given the lack of material

changes to the policy since 2019 and the change

to the scale and global nature of the Kingspan

business during that time. In this context and

being conscious of the risks of a failure to address

pay disparities as we enter the next phase of

growth, the committee concluded that it was

105

Directors’ ReportReport of the Remuneration Committee

appropriate to put the revisions of the policy to

shareholders at the 2025 AGM.

Proposed policy and 2025 implementation

The table below sets out a side-by-side

comparison of our current Remuneration Policy

and the proposed changes, to be effective from

2025. Detailed notes and rationale on the primary

changes to remuneration are set out following

the table.

Current policy & 2024

implementation

Proposed policy & 2025

implementation

Salary » Gene Murtagh (CEO): €1,004k

» Geoff Doherty (CFO): €677k

» Russell Shields (MD): $732k

» Gilbert McCarthy (MD): €625k

» Gene Murtagh (CEO): €1,095k (+9%)

» Geoff Doherty (CFO): €738k (+9%)

» Russell Shields (MD): $798k (+9%)

» Gilbert McCarthy (MD): €682k (+9%)

Annual

bonus

Maximum

opportunity

under policy

» All executive directors: 150% of

salary.

» All executive directors: 200% of salary.

Maximum

opportunities

in 2024 and

2025

» All executive directors: 150% of

salary.

» All executive directors: 150% of salary

(unchanged).

Performance

conditions &

structure

» Profit metric(s) (93.3%), and

» Net Promoter Score (6.7%).

» Profit metric(s) (86.6%),

» Net Promoter Score (6.7%), and

» Health & safety metric (6.7%).

» Any bonus in excess of 100% of salary paid in shares deferred for two years.

» If the bonus opportunity is increased above 150% the committee will review the

minimum deferral in the context of such increase.

LTIP Maximum

opportunity

under policy

» All executive directors: 300%

of salary (2024 grants at 250%

for the CEO and 225% for other

executive directors).

» CEO: 450% of salary (initial grant at

300% of salary plus TSR multiplier of

up to 1.5 times).

» Other executive directors: 338% of

salary (initial grant at 225% of salary

plus TSR multiplier of up to 1.5 times).

Performance

conditions &

structure

» EPS growth (45%),

» TSR vs peer group (45%), and

» Planet Passionate goals (10%).

» EPS growth (60%),

» ROCE (25%),

» Planet Passionate goals (15%), with

» TSR vs peer group operating as a

multiplier to the other outcomes:

- 0.9x for below median performance,

- 1.1x for median performance, and

- 1.5x at the 75th percentile, with

straight vesting between the

median and the 75th percentile.

Shareholding

requirements

» CEO: 250% of salary.

» Other executive directors: 225% of

salary.

» CEO: 1,000% of salary.

» Other executive directors: 275% of

salary.

Annual Report & Financial Statements 2024

106

Kingspan Group plc

Base salaries

Base salaries will be increased for all four

executive directors by 9% in 2025, with a further

increase of 9% planned for our CEO in 2026.

These increases will result in salaries within the

mid-market range for each of the executive

directors. The committee is confident that

these changes balance the need to address

the significant gap between our fixed pay and

that of peers, while ensuring that the revised

Remuneration Policy continues to place a

significant emphasis on long-term remuneration,

with a clear focus on performance and equity-

based remuneration.

Annual performance bonus

The maximum bonus opportunity, which has

remained unchanged since 2015, under the

Remuneration Policy will be increased from 150%

to 200% of salary. However, there is no current

intention to utilise this additional headroom.

We have a track-record of providing additional

headroom under our incentive plans without

moving quickly to use it. If the bonus opportunity

is increased above 150% the committee will

review the minimum deferral in the context of

such increase. The proposed policy has been

designed to be in place for four years. Increasing

the maximum opportunity under the policy is

designed to provide the committee with flexibility

over that period in the event that circumstances

necessitate a higher opportunity under the short-

term incentive arrangements.

From 1 January 2025, a Health & Safety metric

will be introduced, focusing on accident and

injury rates. This aligns with our operational

priorities and reinforces accountability for

workplace safety.

LTIP

As context, the maximum opportunity under the

LTIP was increased in 2022, from 200% to 300%

of salary. However, the committee did not fully

utilise the additional headroom provided under

the policy, with grants in 2024 for the CEO and

other executive directors made at 250% and

225%, respectively.

Effective from 2025, the committee intends

to increase the annual grant level of our CEO

from 250% of his salary to 300%. For the other

three executive directors, initial award levels of

225% of salary will be maintained. ROCE will be

introduced as a new metric under the terms of

the LTIP, in addition to the current EPS and Planet

Passionate measures. The introduction of ROCE

reflects shareholder feedback on the inclusion

of such a measure and is fundamentally aligned

with our core focus of delivering long-term

returns well in excess of the cost of capital.

The committee is retaining relative TSR as a

measure however, it will operate as a potential

multiplier to the performance outcomes under

the EPS, ROCE and Planet Passionate measures.

Specifically, for achieving median to upper

quartile TSR, vested awards under the

underlying measures will be multiplied by 110%

(at median) to 150% (at the 75th percentile),

with straight line vesting in between. In the event

of below median performance, a discount factor

will be applied (only 90% of awards will vest),

reflecting initial feedback that the TSR multiplier

would be better aligned with shareholder

interests if there was a downside risk built in, and

reaffirming our commitment to ensuring variable

pay outcomes are aligned with both strong

underlying financial performance and shareholder

feedback. The achievement of maximum targets

under all four metrics would achieve vesting of

450% of salary for the CEO and 338% for the

other three directors, as set out in the table on

the previous page.

Shareholding requirements

Shareholding requirements will be increased,

from 250% to 1,000% of salary for the CEO, and

from 225% of salary to 275% for the other three

executive directors, ensuring ongoing alignment

with shareholder interests.

Board fees

During 2024, the committee also reviewed the

fees paid to the non-executive directors. The non-

executive director base fees were set in 2017, with

the Chair fee and additional fee for committee

chairs last reviewed in 2022. Since then there has

been a clear increase in the time commitment

involved in these roles, particularly with respect to

Board effectiveness, shareholder and stakeholder

engagement and sustainability. Following a review

of the time commitments, and having employed

external data as a reference point, the fees are

being increased to the following levels:

2024 2025

Chairman’s fee €350,000 €350,000

Non-executive

director’s base fee

€75,000 €100,000

Chair of Audit

& Compliance/

Remuneration

Committee

€15,000 €25,000

Senior Independent

Director

€15,000 €25,000

The committee is satisfied the revised fees

accurately reflect the increase in roles and

responsibilities and remain reasonable relative

to market rates. To enable the implementation

107

Directors’ ReportReport of the Remuneration Committee

of these new fees, shareholders will be asked

to approve an increase in the overall limit for

director fees from €1,250,000 to €1,500,000

at the 2025 AGM. We do not intend to use this

maximum amount in 2025, but believe the

flexibility to increase fees, as well as adding future

directors to the board, is in the best interests

of shareholders.

Conclusion

We are pleased to have overseen another year of

record performance at Kingspan. On the back of

that consistent track record of performance under

existing management, we are confident that

the proposed Remuneration Policy builds on the

strong foundations set by the previously approved

policies in 2019 and 2022 and will continue to

support the delivery of strategy and the creation

of value for shareholders. The proposed changes

to the policy reflect that Kingspan is a significantly

larger business today and will protect our ability

to retain high performing individuals throughout

the business, in a range of markets globally. As a

committee, we are confident the new policy will

continue to demand superior performance for

variable remuneration to be released to executive

directors and senior management, underpinned by

our track record of setting truly stretching targets

in alignment with shareholders interests. Informed

by feedback throughout our extensive shareholder

consultation, we have further embedded our

ambitious Planet Passionate agenda, Health &

Safety objectives, and customer NPS performance

into our pay structures. Our commitment remains

steadfast in ensuring that the remuneration

framework aligns with our strategic goals and

meets the evolving needs of stakeholders, with the

achievement of higher potential pay outcomes

subject to the delivery of even higher levels of

performance.

I hope that you will join the Board in approving the

new Remuneration Policy, as well as the resolution

on the Report of the Remuneration Committee at

the AGM on 1 May 2025.

I will be stepping down as Chair of the

Remuneration Committee upon my retirement as

a non-executive director of Kingspan following this

year’s AGM. I want to thank my fellow committee

members for their diligent work and support over

the years. Éimear Moloney will take on my role as

Chair of the Remuneration Committee and I would

like to wish her and the other members of the

committee all the best for the future.

Linda Hickey

Chair of the Remuneration Committee

2024 OUTTURN

70%

30%

51%

49%

2024 FIXED PAY V VARIABLE PAY

Fixed Variable

2024 VARIABLE PAY SHORT-TERM V LONG-TERM

Short-term Long-term

108

Kingspan Group plc

Annual Report & Financial Statements 2024

Remuneration at a Glance

Gene Murtagh Geoff Doherty Russell Shiels Gilbert McCarthy

Fixed pay

2025 salary €1,095k €738k $798k €682k

% increase from

2024

9% 9% 9% 9%

Pension 2025: all at 10%.

2024: 12% to 14%.

Annual bonus

2025 maximum

opportunity

150% of salary.

(No change from 2024)

2025

performance

conditions &

structure

130% of salary Group EPS,

10% of salary NPS targets, and 10%

Health & Safety metric.

(2024: 140% Group EPS and 10% NPS)

70% of salary Divisional

profit targets,

60% of salary Group EPS,

10% of salary NPS targets, and 10%

Health and Safety metric.

(2024: 70% Divisional profit targets,

70% Group EPS, and 10% NPS)

Any bonus in excess of 100% of salary paid in shares

deferred for two years.

2024 outturn Maximum opportunity: 150% of salary.

Outturn: 40.6% to 63.6% of maximum.

Performance

share plan

2025 award

grant level

CEO: 300% of salary.

Other executive directors: 225% of salary.

(2024: CEO 250%, and other executive directors 225%)

2025

performance

conditions &

structure

60% EPS growth, 25% ROCE and

15% Planet Passionate goals.

TSR multiplier to above outcomes:

- multiplier for achieving TSR between median (1.1X) and

upper quartile (1.5X) with a straight line in between.

-TSR below median (0.9X).

3-year performance period plus

2-year post vesting holding period.

(2024: 45% EPS, 45% TSR, and 10% Planet Passionate goals)

2022 Award

vesting level

Award level: CEO 225%, other executive directors 200%.

Vesting level: 23.14% of maximum.

Share ownership

requirements from 2025

CEO: 1,000% of salary.

Other executive directors: 275% of salary.

(2024: CEO 250%, and other executive directors 225%)

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Directors’ ReportReport of the Remuneration Committee

Directors’ Remuneration Policy

Under the Shareholders’ Rights Directive, which

was transposed into Irish Law in March 2020,

Kingspan is obliged to submit its Remuneration

Policy to shareholders for a non-binding advisory

vote at least every four years. Following the review

by the committee and engagement with our

shareholders, we are pleased to put forward our

new remuneration policy for shareholder approval

at the 2025 AGM.

Our remuneration philosophy

At Kingspan, we have developed a clear philosophy

around remunerating and incentivising employees

at all levels of the organisation. The principles

against which we determine our approach to

remuneration, and make decisions, are:

» Pay for performance ensuring that

variable remuneration is only paid for strong

performance and maximum payouts will only

be realised for truly exceptional performance.

» Clarity so that executives and shareholders

can understand our pay arrangements without

overly complex rules.

» Transparency so that it is objectively

transparent with high levels of disclosure in the

Annual Report.

» Alignment with shareholders by delivering

a significant proportion of remuneration

through equity, and by setting executive share

ownership guidelines.

» Alignment to culture designed to drive

superior returns for shareholders based on our

high performance culture and key measures

aligned to strategy, and embedding our Planet

Passionate, Customer NPS, and Health and

Safety goals throughout the business.

This approach cascades through the organisation

and has played a key role in driving the growth

of the business and significant value creation for

stakeholders over the years.

The following section sets out the remuneration

policy proposed for approval at the 2025 AGM, as

well as the key changes where relevant:

Key element Operation 2022 Policy

opportunity and

measures

2025 Policy

proposed changes and operation

of policy

Fixed Remuneration

Base Salary

To attract and

retain the best

global talent of the

calibre required to

deliver the Group’s

strategy.

Base salaries are

reviewed annually by the

Remuneration Committee

in the last quarter of each

year. A broad assessment

of individual and business

performance is used by the

committee as part of the

salary review. Increases will

generally be in line with

increases across the Group,

but may be higher or lower

in certain circumstances

to reflect performance,

changes in remit, roles and

responsibilities, or to allow

newly appointed executives

to move progressively

towards market norms.

Any increase will

typically be in

line with those

awarded to the

broader employee

pay environment.

The committee has

discretion to award

higher increases

in circumstances

that it considers

appropriate, such as

a change in role or

responsibility.

The committee recognises that

total pay levels for our executive

directors have for several years

been significantly below market

while the business continues to

grow and perform strongly. To

address this the base salaries will

be increased for all four executive

directors by 9% for 2025. A further

salary increase of 9% will be

implemented for the CEO for 2026.

Annual Report & Financial Statements 2024

110

Kingspan Group plc

Key element Operation 2022 Policy

opportunity and

measures

2025 Policy

proposed changes and operation

of policy

Benefits

To provide

benefits which are

competitive with

the market.

In addition to their base

salaries, executive directors’

benefits include but are not

limited to life and health

insurance and the use by

the executive directors

of company cars (or a

taxable car allowance)

and relocation or similar

allowances on recruitment,

each in line with typical

market practice.

Benefits are set at

a level which the

committee considers

appropriate in light

of the market and

depending on the role

and an individual’s

circumstances.

No change to current policy.

Pensions

To provide a

retirement benefit

which is competitive

with the market.

Kingspan operates a defined

contribution pension scheme

for executive directors.

Pension contributions are

calculated on base salary

only. Alternatively, Kingspan

may pay a cash amount

subject to all applicable

employee and employer

payroll taxes and social

security.

Incumbent executive

director pensions will

be reduced to 10% of

salary from 2025.

Newly appointed

executive director

pensions will be

capped at the rate

generally applicable in

the relevant market.

No change to current policy.

Variable Remuneration

Annual

performance

bonus

To reward the

delivery of short-

term performance

targets and

business strategy,

satisfied in cash

and deferred share

awards, aligning

management

interests with

shareholders and

the longer term

performance of the

Group.

Executive directors receive

an annual performance

related bonus based on the

attainment of financial and

non-financial targets set

prior to the start of each

year. Bonuses are paid on

a sliding scale if the targets

are met. Maximum bonus is

only achieved if ambitious

incremental growth targets

are achieved.

No more than 100% of salary

can be delivered in cash

through the bonus plan. Any

performance related bonus

achieved in excess of the

cash amount is satisfied by

the grant of share awards,

which are deferred for two

years.

The committee has

discretion to adjust formulaic

bonus outcomes to reflect

Group performance.

The maximum

potential bonus

for the executive

directors is 150% of

base salary.

The committee

selects stretching

performance targets

each year.

Bonus payment for

financial targets is

0% at threshold entry

point. Bonus is paid

on a straight line

basis for achieving

each point on the

NPS target scale.

It is proposed as follows:

» to increase maximum

opportunity to 200% of base

salary;

» to introduce a new Health &

Safety metric alongside the

current profit and customer

NPS metrics;

» there is no current intention to

increase the annual bonus level;

and

» deferred element above

100% to remain. If the bonus

opportunity is increased above

150% the committee will

review the minimum deferral

arrangements in the context of

such increase.

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Directors’ ReportReport of the Remuneration Committee

Key element Operation 2022 Policy

opportunity and

measures

2025 Policy

proposed changes and operation

of policy

Long-term

incentive plan

(LTIP)

To reward the

sustained strong

performance

and delivery of

Group strategic

objectives over

the longer term.

Aligns the interests

of executive

directors and senior

management with

those of the Group’s

shareholders and

recognises and

rewards value

creation over the

longer term.

Executive directors are

entitled to participate

in Kingspan’s PSP. Under

the terms of the PSP,

performance shares are

awarded to the executive

directors and the senior

management team. The

performance shares will

vest after three years only

if the Group’s underlying

performance has improved

during the three-year

performance period, and

if certain financial and

non-financial sustainability

targets are achieved over the

performance period.

The awards are subject to

a two-year post vesting

holding period.

The maximum award

level under the policy

is 300% of salary.

Prior to granting

an award, the

committee sets

performance

conditions which

it considers to

be appropriately

stretching.

On achieving

the threshold

performance target,

not more than 25% of

an award will vest.

It is proposed as follows:

» to increase the grant level for

the CEO to 300% in FY25, and

maintain at 225% for other

executive directors;

» to introduce an additional

ROCE metric alongside the

current EPS, and Planet

Passionate measures. The

proposed weightings are 60%

EPS, 25% ROCE and 15% Planet

Passionate (which are subject

to review by the committee

from time to time); and

» to retain relative TSR as a

measure, acting as a multiplier

to the other outcomes. The

following TSR values will apply:

TSR

Performance

TSR

Multiplier

Below median 0.9X

Between

median &

upper quartile

1.1X to 1.5X

(straightline)

Top quartile 1.5X

The policy on non-executive directors’ remuneration is as follows:

Key element Operation 2022 Policy

opportunity

2025 Policy

proposed changes and operation

of policy

Non-executive

director fees

To reflect time

commitment,

experience and

responsibilities,

and to attract and

retain high calibre

non-executive

directors by

offering a market

competitive fee

level.

Non-executive director fee

levels are reviewed annually.

The Chairman receives a single

fee for all his responsibilities.

Other non-executive directors

receive a basic board

membership fee. The chair of

board committees and the

Senior Independent Director

receive an additional fee for

this role.

Non-executive directors are

entitled to the reimbursement

of reasonable business

expenses including any tax

(grossed up) that may be

payable on those expenses.

Fees for non-

executive directors

are within the

limits set by the

shareholders from

time to time,

with a current

aggregate limit of

€1,250,000.

It is proposed as follows:

» to increase the aggregate

limit of non-executive director

fees to €1,500,000 to provide

headroom for the appointment

of an additional non-executive

director to the Board, and to

increase the current level of

non-executive fees to reflect the

increased responsibilities and

time commitment;

» to increase the basic non-

executive director fee to

€100,000, plus an additional

fee of €25,000 for chairing the

Remuneration and the Audit

& Compliance Committees,

as well as for the Senior

Independent Director.

Annual Report & Financial Statements 2024

112

Kingspan Group plc

The following are key structural aspects of the remuneration policy in relation to the directors’

remuneration contracts:

Clawback and malus

Ensures an appropriate

balance between risk and

reward.

Covers material misstatement of financial results, material

breach of executive’s employment contract, error in

contract, failure of risk management, corporate failure, wilful

misconduct, recklessness and/or fraud resulting in serious

damage to the financial condition or business reputation of the

Group.

The period within which clawback and malus can be operated

is two years from payment of annual bonus and/or vesting of

LTIP awards.

No change

to current

policy.

Shareholding guideline

Ensures alignment

between the interests of

executive directors and

shareholders.

250% of salary for the CEO and 225% for the other executive

directors, to be achieved through the retention of at least 50%

of all vested variable pay awards. Achievement of guideline is

measured through beneficially owned shares only.

For new appointees, the committee may consider it

appropriate to require a percentage of the annual bonus paid

to be deferred into shares (rather than just bonus in excess of

100% of salary), in order to achieve this guideline.

Achievement is measured through beneficially owned shares,

and the retention of vested deferred share and LTIP awards

(subject to sales to meet taxes).

The CEO to

hold 1,000%

of salary and

the other

executive

directors

275% of

salary.

Post cessation of

employment and

general shareholding

requirements

Ensures alignment

between the interests of

executive directors and

shareholders.

All executive directors are subject to a post-employment

shareholding requirement of the lower of (i) shares or equity

interests held on cessation, or (ii) 200% of salary, for two years

post-employment.

No change

to current

policy.

Approach to recruitment

To attract an executive

director of the calibre

required to shape and

deliver the Group’s

business strategy.

In exceptional circumstances, such as to facilitate recruitment,

the committee may exercise its discretion and grant LTIPs up to

the same level as the maximum permitted for the CEO.

An increase

from 400%

under the

current policy

to 450%

under the

new policy.

Termination - notice

periods

Each of the executive directors have service contracts with

Kingspan which provide for 12 months’ notice of termination by

the Company (or, at the discretion of the Company, payment

for all or part thereof) and 6 or 12 months by the director and

it is Kingspan’s policy that notice periods will not exceed 12

months. The service contracts do not include any provision for

compensation for loss of office, other than the notice period

provisions set out above. There are no enhanced provisions

on a change of control and there are no specific severance

arrangements.

The committee’s policy in relation to termination of service

contracts is to deal with each case on its merits having regard

to the circumstances of the individual, the termination of

employment, any legal advice received and what is in the best

interests of Kingspan and its shareholders.

No change

to current

policy.

113

Directors’ ReportReport of the Remuneration Committee

Termination - annual

performance bonus

and long-term

incentive plans

Annual performance bonuses and PSP awards are dealt

with in accordance with the rules of the relevant plans. At

the discretion of the committee (and normally where the

individual has served a minimum of 6 months of the bonus

year), a pro-rata annual performance bonus may become

payable at the normal payment date for the period of service

subject to full year performance targets being met.

The default treatment for share based awards is that any

unvested award will lapse on termination of employment.

However, under the rules of the Performance Share Plan,

in certain prescribed circumstances (e.g. “good leaver”),

awards are eligible to vest subject to the performance

conditions being met over the normal performance period (or

a shorter period at the committee’s discretion) and with the

award being reduced pro-rata by an amount to reflect the

proportion of the vesting period not actually served.

No change

to current

policy.

Total Pay over 5 Years

Fixed pay

Annual bonus

(Malus and clawback

provisions apply)

LTIP

(Malus and clawback

provisions apply)

Shareholding requirement

(From 2025, 1,000% of salary

for the CEO and 275% for

the other executive directors)

Up to

100% of

salary in

cash

Excess bonus in shares

Two-year deferral period

No further performance

conditions

Three-year performance period

Two-year post-vesting

holding period

No further performance

conditions

Executive directors’ minimum shareholding requirement

Year 1

Year 2 Year 3 Year 4

Year 5

Salary,

benefits

and

pension

114

Kingspan Group plc

Annual Report & Financial Statements 2024

National Museum

of the Resistance

Luxembourg

Roofing +

Waterproofing

Aluminium profiles

Report of the Remuneration Committee

115

Directors’ Report

2024 Remuneration Outturn

The table below sets out the total remuneration for the executive and non-executive directors for the financial

years ended 31 December 2024 and 2023.

Directors’ Remuneration for year ended 31 December 2024

Executive directors		Gene		Geoff		Russell		Gilbert		Total
		Murtagh		Doherty		Shiels 1		McCarthy
		EUR’000		EUR’000		EUR’000		EUR’000		EUR’000
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
Fixed Remuneration
Salary and Fees	1,004	956	677	618	676	644	625	571	2,982	2,789
Pension Contributions 2	120	134	88	99	95	122	75	80	378	435
Benefits 3	43	32	50	38	90	94	43	47	226	211
Total Fixed Remuneration	1,167	1,122	815	755	861	860	743	698	3,586	3,435
Performance Pay
Annual Incentives
Cash Element	958	956	646	618	585	644	381	571	2,570	2,789
Deferred Share Awards	-	437	-	283	-	258	-	18	-	996
Long Term Incentives
LTI - Grant Value 4 5	482	1,463	276	827	276	765	262	765	1,296	3,820
LTI - Share Price Growth 4 5	(78)	421	(43)	230	(44)	213	(38)	213	(203)	1,077
Total Performance Pay	1,362	3,277	879	1,958	817	1,880	605	1,567	3,663	8,682
Total Remuneration	2,529	4,399	1,694	2,713	1,678	2,740	1,348	2,265	7,249	12,117

Non executive directors	2024	2023
Jost Massenberg	350	350
Linda Hickey	105	105
Anne Heraty	75	75
Éimear Moloney	75	75
Paul Murtagh	75	75
Senan Murphy	90	85
Louise Phelan 6	75	50
Michael Cawley 7	-	30
John Cronin 8	-	25
Total non-executive pay	845	870
Total Directors’ Remuneration	8,094	12,987

1 Russell Shiels’ remuneration is denominated in USD, and has been converted to Euro at the following average rates USD: 1.082 (2023: 1.0818).

2 The Group operates a defined contribution pension scheme for executive directors. Certain executives have elected to receive part of their

prospective pension entitlement as a non-pensionable cash allowance in lieu of the pension benefit foregone, subject to all applicable employee

and employer payroll taxes.

3 Benefits principally relate to health insurance premiums and company cars/car allowances. In the case of Russell Shiels the cost of life insurance

and permanent health benefit is also included.

4 The vesting value of the 2022 LTIP awards (vesting in 2025) was calculated using the average share price for December 2024, being €70.45. The

calculation for this award will be adjusted in next years’ annual report to reflect the actual share price on the vesting dates (23/02/2025) and

(22/08/2025). The share price decreased from the date of grant in respect of the awards granted on 23/02/2022 (share price: €88.60) and the

share price increased in respect of the awards granted on 22/08/2022 (share price: €58.34) to the share price used to determine the vesting value.

5 The vesting value of the 2021 LTIP awards (that vested in 2024) was calculated using the share prices on their respective vesting dates of

24/02/2024 (share price: €84.94) and 23/08/2024 (share price: €78.95). From the date of grant, the share price increased for awards granted

on 24/02/2021 (share price: €62.70) and decreased for awards granted on 23/08/2021 (share price €96.16) to the date of vesting.

6 Louise Phelan was appointed as a non-executive director on 28 April 2023.

7 Michael Cawley retired as a non-executive director on 28 April 2023.

8 John Cronin retired as a non-executive director on 28 April 2023.

Annual Report & Financial Statements 2024

116

Kingspan Group plc

Base salary

For 2024, the CEO and Mr Shiels received basic

salary increases of 5%, and the CFO and Mr

McCarthy received increases of 9.5%. This

compares with the general workforce increases for

the markets in which they are based of c.4% to

5%. The salaries for 2024 were:

» Gene Murtagh: €1,003,800

» Geoff Doherty: €676,710

» Russell Shiels: $731,850

» Gilbert McCarthy: €625,245

Pension

As outlined in previous Annual Reports, all

executive directors’ contractual pension

contributions will be reduced to 10% of base salary

from 2025. This approach, which balances the

legacy contractual entitlement of the executive

directors with the general expectations of

stakeholders, was adopted by the committee and

subsequently supported by shareholders following

feedback on the 2019 Remuneration Policy.

Pension Contribution

Executive director		Pension Contribution
	2023	2024	2025
Gene Murtagh	14%	12%	10%
Geoff Doherty	16%	13%	10%
Russell Shiels	19%	14%	10%
Gilbert McCarthy	14%	12%	10%

2024 performance related bonus

All executive directors were eligible for a maximum performance related bonus opportunity of up to

150% of base salary.

Annual performance bonus targets are a mixture of Group and divisional financial performance

measures, as well as non-financial targets based on NPS customer experience scores. The CEO and CFO’s

financial targets are based on the achievement of Group EPS performance, and the Divisional MDs’

financial targets are based on a combination of stretching profit targets for their respective divisions,

plus an element of Group EPS. NPS measures brand loyalty and is one of the metrics we use to measure

customer experience as part of the Worldwide Voice of Customer programme. An external review by an

independent third–party validates the NPS scores and underlying methodology.

Report of the Remuneration Committee

117

Directors’ Report

Performance against targets, and bonus achieved, are set out in the tables below.

	Bonus	Max.	Threshold	Target for	Performance	Outcome
	measure	opportunity/	target	maximum		(% of
		weighting				weighted
		(as % salary)				measure)
Chief	Group EPS	140%	317.07 cent	387.53 cent	365.2 cent	65.1%
Executive	NPS	10%	NPS of 42 to 48		44	42.9%
Chief	Group EPS	140%	317.07 cent	387.53 cent	365.2 cent	65.1%
Financial	NPS	10%	NPS of 42 to 48		44	42.9%
Officer
Russell	Divisional	70%	90% of prior	105% of	102.0%	55.8%
Shiels	profit		year	prior year
	Group EPS	70%	317.07 cent	387.53 cent	365.2 cent	39.0%
	NPS	10%		Divisional NPS range not disclosed		33.3%
Gilbert	Divisional	70%	75% of prior	100% of	83.4%	23.6%
McCarthy	profit		year	prior year
	Group EPS	70%	317.07 cent	387.53 cent	365.2 cent	39.0%
	NPS	10%			Divisional NPS range not disclosed	100%

Executive director		Overall annual performance outcome
	% of max. opportunity	% of salary
Gene Murtagh	63.6%	95.4%
Geoff Doherty	63.6%	95.4%
Russell Shiels	57.6%	86.5%
Gilbert McCarthy	40.6%	60.9%

All bonuses earned in excess of 100% of base salary are satisfied by the grant of share awards, which are

deferred for two years.

Annual Report & Financial Statements 2024

118

Kingspan Group plc

Performance Share Plan (PSP)

Vesting of awards granted in 2022

Performance against targets and vesting levels for the PSP awards granted in 2022 is set out below.

	Weighting			% of award that will vest			Outcome	Vesting %
		0%	25%	100%
EPS	45%	Less than			6% CAGR	12% CAGR	6.12% CAGR	13.14%
		6% CAGR
TSR	45%	Less than			Median	At or above	30.7	0.00%
		Median		upper			percentile
				quartile
Planet Passionate	10%	See below		See below	See below		See below	10.00%
Total Vesting								23.14%

Planet Passionate	Performance Measure		Weighting 1	2020	2024	2024	Vesting
				Base Year	Target	Actual	%
Carbon	»	Net Zero carbon	1.1%	409,746 3	286,822	82,865	100%
	manufacturing - scope 1 &
	2 GHG emissions² (tCO2e)
	»	Zero emissions company	1.1%	11	75	89	100%
	funded cars – annual
	replacement (%)
Energy	»	60% direct renewable	1.1%	19.9 3	32.5	43.3	100%
	energy use (%)
	»	20% on-site energy	1.1%	4.9	10	10.2	100%
	generation (%)
	»	Solar PV systems on all	1.1%	20.7 3	46	64	100%
	wholly owned facilities (%)
Circularity	»	Zero company waste to	1.1%	18,622 3	11,173	7,088	100%
	landfill (tonnes)
	»	Recycle 1 billion PET bottles	1.1%	573	750	1,102	100%
	into our manufacturing
	processes annually (million
	bottles)
	»	QuadCore ® products	1.1%	5.9	75	75	100%
	utilising recycled PET
		(%)
Water	»	Harvest 100 million litres	1.1%	20.1	55	62.1	100%
		of rainwater annually
		(million litres)
Overall Vesting of Planet Passionate measures							100%

All figures related to the underlying business. Underlying business includes manufacturing, assembly and R&D sites within the Kingspan

Group in 2020 plus all organic growth.

1 Net Zero Energy target was removed from the programme in 2022 and replaced with an internal carbon charge to put central focus

on absolute GHG emission reduction. Its 1% weighting was reallocated across the other measures on an equal basis.

2 Excluding biogenic emissions. Scope 2 GHG emissions calculated using market-based methodology.

3 Restated figures due to improved data collection, change in calculation methodologies and site disposal.

119

Directors’ ReportReport of the Remuneration Committee

While our philosophy on

remuneration has not

changed, the scope, scale and

reach of our business has.

Istanbul Grand

Airport

Turkey

Insulated Panels

QuadCore

Evolution

facade panels

Annual Report & Financial Statements 2024

120

Kingspan Group plc

The peer group against which TSR performance was measured was as follows:

Armstrong World Industries Inc.	Mohawk Industries Inc.
Boral Ltd	Owens Corning Inc.
Compagnie de Saint Gobain SA	Rockwool A/S
CRH plc	Sika AG
Geberit AG	Travis Perkins plc
Grafton Group plc	Wienerberger AG
Holcim AG

Grant of awards in 2024

The executive directors were granted the following PSP awards in 2024:

Executive	Basis of the award	Threshold vesting	Number of	Grant date
	(% of salary)	(% of award)	awards granted
Gene Murtagh	250%	25%	30,604	19 February 2024
Geoff Doherty	225%	25%	18,568	19 February 2024
Russell Shiels	225%	25%	18,431	19 February 2024
Gilbert McCarthy	225%	25%	17,156	19 February 2024

The vesting of the 2024 PSP awards is based on achievement of the EPS, TSR and sustainability targets

set out below.

	Weighting			% of award that will vest
		0%		25%	100%
EPS 1	45%	Less than 3% p.a.	3% p.a.		6% p.a.
TSR 1	45%	Less than Median	Median	At or above upper quartile
Planet Passionate 1	10%	Various	Various		Various

1. Straight line vesting between threshold and 100% vesting.

The TSR peer Group for the 2024 PSP awards is set out below:

Armstrong World Industries Inc	Masco Corporation
Boral Ltd	Mohawk Industries Inc
Builders FirstSource Inc	Owens Corning Inc
Carlisle Companies Inc	Recticel NV
Compagnie de Saint Gobain SA	Rockwool A/S
CRH plc	Sika AG
Grafton Group plc	Wienerberger AG
Holcim AG

121

Directors’ ReportReport of the Remuneration Committee

Summary of PSP awards

The table below sets out the total number of PSP awards held by the directors and the Company Secretary

during the year:

Performance Share Plan

Director	At 31	Granted	Vested	Exercised	At 31	Option	Earliest	Latest
	Dec	during	during	or lapsed	Dec	price €	exercise	expiry date
	2023	year	year	during	2024		date
				year
Gene Murtagh
Unvested	85,798	30,604	(22,327)	(4,751) 1	89,324	0.13	23/02/2025	19/02/2031
Vested	87,354	-	22,327	-	109,681	0.13	26/02/2021	23/08/2028
	173,152	30,604	-	(4,751)	199,005	0.13
Geoff Doherty
Unvested	49,003	18,568	(12,532)	(2,666) 1	52,373	0.13	23/02/2025	19/02/2031
Vested	-	-	12,532	(12,532) 2	-	0.13	-	-
	49,003	18,568	-	(15,198)	52,373	0.13
Russell Shiels
Unvested	48,900	18,431	(11,591)	(2,466) 1	53,274	0.13	23/02/2025	15/03/2028
Vested	-	-	11,591	(11,591) 3	-	0.13	-	-
	48,900	18,431	-	(14,057)	53,274	0.13
Gilbert McCarthy
Unvested	45,304	17,156	(11,591)	(2,466) 1	48,403	0.13	23/02/2025	19/02/2031
Vested	45,130	-	11,591	-	56,721	0.13	26/02/2021	23/08/2028
	90,434	17,156	-	(2,466)	105,124	0.13
Company Secretary
Lorcan Dowd
Unvested	8,620	2,854	(2,503)	(303) 4	8,668	0.13	23/02/2025	19/02/2031
Vested	10,775	-	2,503	-	13,278	0.13	26/02/2021	24/02/2028
	19,395	2,854	-	(303)	21,946	0.13

1 Cancelled on 24/02/2024 and 23/08/2024 due to partial achievement of performance conditions.

2 Exercised on 19/11/ 2024. Market value on day of exercise €73.40.

3 Exercised 10,454 on 23/05/2024. Market value on day of exercise €90.30.

Exercised 1,137 on 03/12/2024. Market value on day of exercise €70.80.

4 Cancelled on 24/02/2024 due to partial achievement of performance conditions.

Deferred Share Awards

The table below sets out the total number of Deferred Share Awards held by the directors at year end:

Director		At 31 Dec	Granted	Vested &	At 31 Dec	Earliest
		2023	during year	transferred	2024	vesting/
				during year		transfer date
Gene Murtagh	Unvested	8,566	5,329	(5,021)	8,874	31/03/2025
Geoff Doherty	Unvested	5,530	3,445	(3,242)	5,733	31/03/2025
Russell Shiels	Unvested	5,967	3,142	(3,107)	6,002	31/03/2025
Gilbert McCarthy	Unvested	4,969	219	(2,998)	2,190	31/03/2025

Annual Report & Financial Statements 2024

122

Kingspan Group plc

Directors’ & Secretary’s interests in shares

The beneficial interests of the directors and secretary and their spouses and minor children in the shares

of the Company at the end of the financial year are as follows:

	31 Dec 2024	31 Dec 2023	Shareholding at	Shareholding
			31 Dec 2024¹	requirement met
			(% Salary)	(CEO 250% and
				others 225% salary)
Executive directors
Gene Murtagh	1,080,020	1,080,020	7,580%	Yes
Geoff Doherty	266,228	253,547	2,772%	Yes
Russell Shiels	227,145	226,008	2,366%	Yes
Gilbert McCarthy	282,833	282,833	3,187%	Yes
Non-executive directors
Jost Massenberg	1,000	1,000
(Chairman)
Linda Hickey	5,000	5,000
Anne Heraty	2,250	2,250
Éimear Moloney	2,000	2,000
Paul Murtagh	-	-
Senan Murphy	-	-
Louise Phelan	-	-
Company Secretary
Lorcan Dowd	3,816	3,667

1. Expressed as a percentage of base salary on 31 December 2024 and calculated using the average share price for December 2024

(€70.45).

As at 17 February 2025, there have been no

changes in the directors’ and secretary’s interests

in shares since 31 December 2024.

Non-executive directors

The Chairman’s fee is €350,000. The basic non-

executive director fee is €75,000. An additional fee

of €15,000 is paid for chairing the Remuneration

Committee and the Audit & Compliance

Committee, as well as for the Senior Independent

Director.

Payments to former directors and for

loss of office

A payment of €22,700 was paid to former director,

John Cronin, in respect of consultancy services.

There were no other payments to past directors or

payments to directors for loss of office.

Change in directors and employee

remuneration

The following table shows the percentage

change in fixed and variable remuneration using

the single figure methodology for the directors

of the Company and the global average total

remuneration of an employee for the respective

year ends.

123

Directors’ ReportReport of the Remuneration Committee

Fixed Remuneration

Variable Remuneration

% change

2023 to

2024

% change

2022 to

2023

% change

2021 to

2022

% change

2020 to

2021

% change

2023 to

2024

% change

2022 to

2023

% change

2021 to

2022

% change

2020 to

2021

Executive directors

Gene Murtagh 4% 1% 3% 0% -58% 70% -59% 110%

Geoff Doherty 8% 0% 1% 0% -55% 67% -56% 116%

Russell Shiels 0% -1% 17% 0% -57% 54% -51% 136%

Gilbert McCarthy 6% 1% 1% 0% -61% 46% -57% 116%

Non-executive directors

Jost Massenberg

(Chairman)

0% 0% 36% 244% N/A N/A N/A N/A

Linda Hickey 0% 0% 24% 0% N/A N/A N/A N/A

Anne Heraty 0% 0% 0% 0% N/A N/A N/A N/A

Éimear Moloney

0% 0% 50% N/A N/A N/A N/A N/A

Paul Murtagh

0% 0% 50% N/A N/A N/A N/A N/A

Senan Murphy

6% 347% N/A N/A N/A N/A N/A N/A

Louise Phelan

50% N/A N/A N/A N/A N/A N/A N/A

Average

Employee

1% 2% 7% 4% -16% 2% -24% 32%

1. Includes salary and fees, pension contributions and taxable benefits.

2. Includes annual bonus and long term incentives calculated at the market value on the vesting date.

3. Appointed as a director as of 30 April 2021.

4. Appointed as a director as of 1 October 2022.

5. Appointed as a director as of 28 April 2023.

6. Calculated by dividing the aggregate payroll costs of employees for the respective year ends (excluding social welfare costs and

costs related to executive directors) by the average number of employees for the respective year ends as disclosed in note 3 to the

consolidated financial statements.

Implementation of Remuneration Policy for 2025

Base salary and pension

As part of the Remuneration Policy review detailed above, the committee has reviewed the salaries

and overall remuneration packages of each of the executive directors in the context of their roles,

responsibilities and market pay levels. For 2025, all of the executive directors will receive salary

increases of 9%.

Base Salary 2024 Base Salary 2025

Gene Murtagh €1,003,800 €1,094,500

Geoff Doherty €676,710 €738,000

Russell Shiels $731,850 $798,000

Gilbert McCarthy €625,245 €681,500

As outlined previously, pension contributions of all incumbent executives will be 10% from 2025.

Annual bonus

For 2025, the maximum bonus opportunity for all the executive directors remains at 150% of salary and

is to be measured as 130% of salary on financial metrics, 10% of salary on customer NPS, and 10% of

salary on a new Health & Safety metric. The executive directors’ financial element is based solely on

Group EPS and the divisional directors split between Group EPS and divisional profit targets. Targets are

Annual Report & Financial Statements 2024

124

Kingspan Group plc

commercially sensitive and will be disclosed retrospectively with performance against them in the 2025

Report of the Remuneration Committee.

Performance share awards

For 2025, the CEO will receive a PSP award over shares with a market value of 300% of base salary,

and the other executive directors 225% of base salary. An additional ROCE metric has been introduced

alongside the current EPS metric. We propose to retain relative TSR as a measure, acting as a multiplier

to the other outcomes. The sustainability measures included in the LTIP are measured against Kingspan’s

ambitious Planet Passionate goals, drawing a clear focus on achieving one of our core strategic pillars.

In increasing the potential opportunity and headroom under the PSP, the committee was conscious of

ensuring that performance expectations also increased. With the addition of a ROCE measure and the

EPS growth targets being measured off another record year, the committee is confident that this aim

has been achieved.

The 2025 PSP targets are as set out below.

Performance

Measure

Weighting Percentage

vesting at

threshold

Threshold vesting

target

Maximum vesting

target

EPS 60% 25% 3% CAGR 6% CAGR

ROCE 25% 25% 12% 16%

Planet Passionate 15% 0% Various Various

TSR Performance Below median Between median

& upper quartile

Top quartile

TSR Multiplier 0.9X 1.1X to 1.5X

(straightline)

1.5X

Non-executive director fees

The non-executive director fees for 2025 are set out in the table below:

2024 2025

Chairman’s annual fee €350,000 €350,000

Non-executive director’s annual fee €75,000 €100,000

Senior Independent Director’s annual fee €15,000 €25,000

Audit or Remuneration Committee Chair’s annual fee €15,000 €25,000

Committee governance

Committee membership and attendance

Name Number of Meetings Attended

Linda Hickey (Chair) 4/4

Éimear Moloney 4/4

Louise Phelan 4/4

The Chief Executive does not normally attend meetings but provides input where relevant, to the

committee chair prior to the meeting. No individual is present at a meeting when the terms of his or her

own remuneration are discussed. The Company Secretary acts as the secretary to the committee. The

terms of reference are available on the Group’s website: www.kingspan.com

Key activities during the year

125

Directors’ ReportReport of the Remuneration Committee

FEB JUL OCT NOV

Salary and fees

Engage independent consultants for policy and benchmark review

Review implementation of overall remuneration policy

Review and approve executives’ salary, role and responsibilities

for 2025

Review and recommend to the Board, non-executives’ fees for 2025

Review remuneration benchmark

Review non-financial performance measures

Review and approve Chairman’s fee

Performance pay

Assess Group and individual performance against targets for 2023

Review executive bonus measures and weighting for 2025

Agree Group and individual performance targets for 2025

PSP Awards

Assess performance of 2021 PSP Awards against targets

Determine percentage of 2021 PSP Awards which vest

Review performance measures for grants of PSP Awards for 2024

Agree targets and level for grants of PSP Awards for 2024

Review non-financial Planet Passionate measures for 2024

Governance

Review and approve Report of the Remuneration Committee for

Annual Report 2023

Update on governance and remuneration trends generally

Consider shareholder votes and feedback from AGM 2024

Review of the Remuneration Policy

Shareholder engagement on proposed policy changes

Annual Report & Financial Statements 2024

Kingspan Group plc

126

External advisors

The Remuneration Committee obtained advice during the year from independent remuneration

consultants Korn Ferry. Korn Ferry’s fees for advice to the committee were £75.9k. Korn Ferry is a

member of the Remuneration Consultants Group and a signatory to its Code of Conduct, and all advice

is provided in accordance with this code. Korn Ferry also provided some leadership and development

services to Kingspan during the year. The committee concluded that the associated fee for the provision

of this service was not material and would not affect Korn Ferry’s independence and objectivity.

Accordingly, the committee is satisfied that the advice obtained was objective and independent.

Shareholder Voting

The following table summarises the details of votes cast in respect of the resolution on the Report of the

Remuneration Committee at the 2024 AGM.

Resolution Votes For Votes Against Total Votes Votes

Withheld

Number % Number % Number % of

Total

Voting

Rights

Report of the

Remuneration

Committee

150,219,734 98.64% 2,068,688 1.36% 152,288,422 83.09% 5,945

Fusion Building

South Oxfordshire,

Insulated Panels

Dri-Design

facade,

QuadCore

roof and

wall panels

127

Directors’ ReportReport of the Remuneration Committee

CEO REMUNERATION VS KINGSPAN PERFORMANCE

€10,000

€8,000

€6,000

€4,000

€2,000

€0

-€2,000

2020 2021 2022 2023 2024

CEO Remuneration (€’000)

Total Shareholder Return (%)

Earnings Per Share (cents)

600

500

400

300

200

100

Fixed Remuneration

Total Performance Pay (excl. share price growth)

LTI Share Price Growth

EPS

TSR

206c

100%

184%

306c

330c

352c

89%

1,000

900

800

700

600

500

400

300

200

100

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Kingspan

MSCI World

MSCI Europe

TOTAL SHAREHOLDER RETURNS %

The graph below shows the Company’s TSR performance against the performance of the MSCI

World and MSCI Europe indices over the 10-year period to 31 December 2024:

139%

126%

365c

Performance graphs

Annual Report & Financial Statements 2024

128

Kingspan Group plc

The business has grown,

organically and

through acquisition,

into a diversified, global

provider of advanced

insulation and building

envelope solutions.

Report of the Remuneration Committee

129

Directors’ Report

REPORT OF THE

AUDIT & COMPLIANCE

COMMITTEE

SENAN

MURPHY

Space in Lund

Scania, Sweden

Insulation

Troldtekt

acoustic

panel; Troldtekt

tiles; Troldtekt

line

As chairman of the Audit

& Compliance Committee,

I am pleased to present the

report of the committee for

the year ended 31 December

2024 to stakeholders and

wider society.

Annual Report & Financial Statements 2024

Kingspan Group plc

130

The Audit & Compliance Committee focused

particularly on the appropriateness of the Group’s

financial statements and product compliance

processes. During the year, the committee’s Terms

of Reference were expanded to include compliance

with the Corporate Sustainability Reporting

Directive (CSRD) and alignment with European

Sustainability Reporting Standards (ESRS).

The committee has satisfied itself, and has advised

the Board accordingly, that the 2024 Annual

Report and financial statements are fair, balanced

and understandable, and provide the information

necessary for shareholders to assess the Group’s

performance, business model and strategy. The

significant issues that the committee considered in

relation to the financial statements and how these

issues were addressed are set out in this report.

The committee has also satisfied itself in relation

to the effectiveness of the controls and processes

regarding product compliance and monitoring the

culture of compliance across the Group.

The committee acknowledges the requirements

under section 225 of the Companies Act 2014 and

has ensured that the directors are aware of their

responsibilities and comply fully with this provision.

One of the committee’s key responsibilities is to

review the Group’s risk management and internal

controls systems, including internal financial

controls. During the year, the committee

carried out a robust assessment of the principal

risks facing the Group and monitored the risk

management and internal controls system on an

ongoing basis. Further details regarding these

matters are also set out later in this report.

The committee also reviewed the effectiveness

of both the external audit process and the

internal audit function as part of the continuous

improvement of financial reporting and risk

management across the Group. A comprehensive

audit tender process was also undertaken during

the year which is detailed within this report.

Senan Murphy

Chairman, Audit & Compliance Committee

This report details how the

committee has met its

responsibilities under its

Terms of Reference, the Irish

Companies Act 2014 and under

the UK Corporate Governance

Code (July 2018) during the last

twelve months.

131

Directors’ ReportReport of the Audit & Compliance Committee

Role and Responsibilities

The Board has established an Audit & Compliance

Committee to monitor the integrity of the Group’s

financial statements and the effectiveness of the

Group’s internal financial and IT general controls.

Additionally, the committee has responsibility for

reviewing the effectiveness of the processes and

controls associated with product certification and

the marketing of the Group’s products.

During the year, the committee’s Terms of

Reference were expanded to include oversight of

the Group’s compliance with CSRD and alignment

with ESRS. The committee reviews sustainability

disclosures, oversees the assurance process,

monitors sustainability risk integration, and

ensures the Group has the appropriate systems

and expertise from a compliance perspective.

The committee’s role and responsibilities are set

out in the committee’s Terms of Reference which

are available from the Company and are displayed

on the Group’s website (www.kingspan.com).

The Terms of Reference are reviewed annually

and amended where appropriate. During the

year the committee worked with management,

the external auditors and Group Internal Audit in

fulfilling these responsibilities.

The Audit & Compliance Committee Report deals

with the key areas in which the committee plays

an active role and has responsibility. These areas

are as follows:

1. Financial reporting and related primary

areas of judgement;

2. CSRD reporting;

3. The external audit process;

4. The Group’s internal audit function and

risk management controls;

5. The Group’s product compliance and

certification function;

6. Compliance with the Group Marketing

Integrity Manual; and

7. Governance.

Annual Report & Financial Statements 2024

132

Kingspan Group plc

Committee membership

Throughout the financial period, the committee

comprised three independent non-executive

directors, Senan Murphy (chairman), Anne Heraty

and Éimear Moloney. The biographies of each can

be found in the Directors’ Report.

The Board considers that the committee has an

appropriate and experienced blend of commercial,

financial and industry expertise to enable it to

fulfil its duties, and that the committee chairman,

Senan Murphy B.Comm., F.C.A, has appropriate,

recent and relevant financial experience.

Meetings

The committee met four times during the year

ended 31 December 2024. Attendance at the

meetings and matters under review at each

meeting are noted in the following tables.

Committee Member Attended Eligible Appointment Date

Senan Murphy (chairman) 4 4 2022

Anne Heraty 4 4 2019

Éimear Moloney 4 4 2021

Audit & Compliance Committee activities FEB JUN AUG NOV

Financial Reporting

Review and approve preliminary & half-year results

Consider key audit and accounting issues and judgements

Review correspondence with Irish Auditing and Accounting

Supervisory Authority (IAASA)

Approve going concern and viability statements

Consider accounting policies and the impact of new

accounting standards

Review management letter from auditors

Review of any related party matters and intended disclosures

Review Annual Report (including ESEF format) and confirm if

fair, balanced and understandable

CSRD

Engagement with statutory auditor regarding limited assurance

requirements for CSRD Sustainability Statement and associated

planning

Update from management on CSRD readiness and establishment

of reporting processes

External Auditor

Oversight of statutory auditor tender process (including CSRD

Sustainability Statement) and selection of audit firm following

final presentations

Ongoing assessment of auditor performance – including feedback

from management

Approval of external audit plan and ongoing review

Review reports and correspondence from the auditor to the Audit

& Compliance Committee

Review of digital audit findings and insights

Confirm auditor independence and consider non-audit services

and materiality of related fees

Review and consideration of audit fees

133

Directors’ ReportReport of the Audit & Compliance Committee

Audit & Compliance Committee activities FEB JUN AUG NOV

Internal Audit and Risk Management Controls

Ongoing performance assessment of internal audit team

Review of internal audit reports and monitor progress on

open actions

Approve internal audit plan and resources, taking account

of risk management

Review of financial and IT general controls

Review of internal audit reports for cybersecurity controls

Meeting with Group Head of IT for update on the Group’s cyber

risk management policy and procedures

Review and approve the structure of the internal audit team

Review details of global fraud and cyber-attack attempts and

managements’ response

Monitor Group confidential independent hotline procedures and

reports

Assessment of compliance with Group Global Sanctions policy

Review of Group liquidity position

Assessment of the principal risks and effectiveness of

internal control systems

Product Compliance and Certification

Review and approve internal audit plan for audit of product

marketing compliance with Group Marketing Integrity Manual

Review of internal audit reports relating to product

marketing compliance

Review and consider the structure and expertise of the product

compliance and certification team

Meetings and updates from Group Head of Compliance &

Certification and divisional compliance teams

Discussions with divisional management on product

compliance and certification matters as well as site visit

Governance

Formal evaluation of external and internal audit functions

Review and impact assessment of the 2024 UK Corporate

Governance Code

Review and consideration of the consultation on the launch

of the Irish Corporate Governance Code

Review and approve Directors’ Compliance Statement

Update on Group Treasury Strategy and approve Group

Treasury Policy

Update on the new Euronext Dublin Corporate Governance Code

Annual Report & Financial Statements 2024

134

Kingspan Group plc

Each committee meeting was attended by the

Group Chief Financial Officer, the Group Head

of Internal Audit & Compliance and the external

audit lead partner. The Company Secretary is the

secretary of the committee. Other directors and

members of the senior management team may

attend meetings as required.

The chairman of the committee also met with

both the Head of Internal Audit & Compliance

and the external audit lead partner outside of

committee meetings as required throughout

the year.

Committee evaluation

As outlined within the Report of the Nominations

& Governance Committee, the performance of the

Board also includes a review of the committees.

Any recommendations raised in relation to the

Audit & Compliance Committee are acted upon in

a formal and structured manner. No issues were

identified for the year ended 31 December 2024.

Financial reporting

The committee is responsible for monitoring the

integrity of the Group’s financial statements and

reviewing the financial reporting judgements

contained therein. The financial statements are

prepared by a finance team with the appropriate

qualifications, expertise, and experience.

The committee confirmed to the Board that the

Annual Report, taken as a whole, is fair, balanced

and understandable and provides the information

necessary for shareholders to assess the Group’s

position and performance, business model and

strategy.

In respect of the year to 31 December 2024, the

committee reviewed:

» the Group’s Trading Updates issued in April and

November 2024;

» the Group’s Interim Report for the six months

to 30 June 2024; and

» the Preliminary Announcement and Annual

Report to 31 December 2024.

In carrying out these reviews, the committee:

» reviewed the appropriateness of Group

accounting policies and monitored changes to,

and compliance with, accounting standards on

an ongoing basis;

» discussed with management and the external

auditor the critical accounting policies and

judgements that had been applied;

» compared the results with management

accounts and budgets and reviewed

reconciliations between these and the final

results;

» discussed a report from the external auditor

identifying the significant accounting and

judgemental issues that arose in the course of

the audit;

» considered the management representation

letter, requested by the external auditor for

any non-standard issues and monitored action

taken by management as a result of any

recommendations;

» discussed with management future accounting

developments which are likely to affect the

financial statements;

» reviewed the budgets and strategic plans of

the Group to ensure that all forward looking

statements made within the Annual Report

reflect the actual position of the Group; and

» considered key areas in which estimates

and judgement had been applied in the

preparation of the financial statements

including, but not limited to, a review of fair

values on acquisition, the carrying amount

of goodwill, intangible assets and property,

plant and equipment, litigation and warranty

provisions, recoverability of trade receivables,

determination of lease terms, valuation of

inventory, measurement of put option liabilities

and tax matters.

The primary areas of judgement considered by the

committee in relation to the Group’s 2024 financial

statements, and how they were addressed by the

committee are set out overleaf.

In addition, the Group Internal Audit team reviews

the businesses covered in its annual internal audit

plan, as agreed by the committee, and reports

its findings to the committee throughout the

year. These internal audit reviews are focused on

areas of judgement such as warranty provisions,

trade receivables and inventory, and provide the

committee with information on the adequacy and

appropriateness of provisions in these areas.

135

Directors’ ReportReport of the Audit & Compliance Committee

Primary areas

of judgement

Committee activity

Adequacy of

warranty provision

The committee reviewed the judgements applied by management in assessing both specific

and risk based warranty provisions at 31 December 2024. The committee reviewed and

discussed with management the monthly reports presented to the Board which set out, for

each of the Group’s divisions, warranty provisions, warranty costs and an analysis of these

costs as a percentage of divisional sales. Warranty provisions are reviewed on an ongoing

basis throughout the year in conjunction with the internal audit process. The committee

was satisfied that such judgements were appropriate, and the risk had been adequately

addressed.

Recoverability of

trade receivables

and adequacy of

provision

The committee reviewed the judgements applied by management in determining the

provision for expected credit loss at 31 December 2024. The committee reviewed and

discussed with management the monthly board report which sets out aged analysis of gross

receivable balances and associated provisions for expected credit loss and reviewed security

(including credit insurance) that is in place. Expected credit loss provisions are reviewed on

an ongoing basis throughout the year in conjunction with the internal audit process. The

committee was satisfied that such judgements were appropriate and the risk had been

adequately addressed.

Accounting for

acquisitions

Total acquisition consideration in 2024 amounted to €977.9m. The committee discussed

with management and the external auditors the accounting treatment for newly acquired

businesses, and the related judgements made by management, and were satisfied that the

treatment in the Group’s financial statements was appropriate.

Consideration of

impairment of

goodwill, intangible

assets and property,

plant and equipment

The committee considered the annual impairment assessment of goodwill, intangible assets

and property, plant and equipment prepared by management for each Cash Generating

Unit (CGU) using a discounted cash flow analysis based on the strategic plans approved

by the Board, including a sensitivity analysis on key assumptions. The primary judgement

areas were the achievability of the long-term business plans and the key macroeconomic

and business specific assumptions. In considering the matter, the committee discussed with

management the judgements made and the sensitivities performed. Further detail of the

methodology is set out in Note 9 to the financial statements.

Kingspan completed 19 acquisitions during the financial year. The measurement of goodwill is

not yet finalised however, and in accordance with IFRS, the methodology for all acquisitions

and assessment of such items of goodwill was presented to the committee and the results

were determined appropriate.

Valuation of

inventory and

adequacy of

inventory provision

The committee reviewed the valuation and provisioning for inventory at 31 December 2024.

The main area of judgement was the level of provisioning required for slow moving and

obsolete inventory. The committee reviewed and discussed with management the monthly

board report which sets out, for each of the Group’s divisions, gross inventory balances and

associated obsolescence provision including an analysis by inventory, category and ageing.

Inventory provisions are reviewed on an ongoing basis throughout the year in conjunction

with the internal audit process. The committee was satisfied that such judgements were

appropriate and the risk had been adequately addressed.

Taxation Provisioning for potential current tax liabilities and the level of deferred tax asset recognition

in relation to accumulated tax losses are underpinned by a range of judgements. The

committee addresses these issues through a range of reporting streams from senior

management and a process of challenging the appropriateness of management’s views

including the degree to which these are supported by professional advice from external legal

and other advisory firms. This assessment was conducted in line with the provisions of IFRIC

23. The Group’s Accounting Manual sets out detailed policies that prescribe the methodology

to be used by management in calculating such provisions. Each division formally confirms

compliance with these policies on an annual basis. The committee was satisfied that such

judgements were appropriate, and the risk had been adequately addressed.

Annual Report & Financial Statements 2024

136

Kingspan Group plc

CSRD

As part of the committee’s ongoing responsibilities

to oversee financial and non-financial reporting,

the committee’s Terms of Reference were

expanded during the year to include compliance

with CSRD. CSRD introduces a comprehensive

framework for sustainability reporting, requiring

companies to disclose detailed information about

their environmental, social, and governance

(ESG) performance in accordance with the

ESRS standards and its alignment with the EU’s

sustainability objectives.

During the year, the committee, in collaboration

with Group management, undertook significant

work to prepare the Group for its first time

CSRD reporting. The committee oversaw the

development and implementation of processes to

ensure ESRS compliance and enhance the quality

of the Group’s sustainability disclosures. Key

activities during the year include:

» Expanding the committee’s Terms of Reference

to include responsibility for overseeing CSRD

reporting and compliance;

» Appointment of EY as the approved

Sustainability Assurance Service Provider

(SASP) to provide limited assurance on the

Group’s CSRD reporting;

» Regularly reviewing updates from management

and EY on the Group’s CSRD readiness;

» Oversight of the Double Materiality Assessment

(DMA) process to identify the key sustainability

issues relevant to the Group and its

stakeholders and ensuring alignment with ESRS

requirements;

» Monitoring the establishment of systems and

controls for collating, validating, and reporting

sustainability data;

» Ensuring that sustainability reporting processes

are integrated into the Group’s existing

governance and risk management frameworks;

» Overseeing the assurance process, conducted

by EY as SASP, for CSRD-related disclosures;

and

» Review and approve the Group’s CSRD

Sustainability Statement, ensuring compliance

with CSRD and ESRS requirements.

The committee is satisfied that the Group has

made significant progress in its CSRD readiness

and will continue to oversee the integration of

sustainability reporting into the Group’s broader

strategic and operational framework.

Kannerhaus

Beidweiler,

Luxembourg

Roofing +

Waterproofing

EVALASTIC

waterproofing

membrane;

Aluminium profiles

137

Directors’ ReportReport of the Audit & Compliance Committee

External auditor

The committee has responsibility for overseeing

the Group’s relationship with the external

auditor including reviewing the audit team, the

quality and effectiveness of their performance,

their external audit plan and process, their

independence from the Group, their appointment

and their audit fee proposals.

Performance and audit plan

Following the completion of the 2023 year end

audit, the committee carried out a review of the

effectiveness of the external auditor and the audit

process. This review involved discussions with both

Group management and internal audit, in addition

to feedback provided by divisional management.

The committee continues to monitor the

performance, independence and objectivity of the

external auditors and takes this into consideration

when making its recommendations to the Board

on the remuneration, the terms of engagement

and the re-appointment, or otherwise, of the

external auditors.

Prior to commencement of the 2024 year end

audit, the committee approved the external

auditor’s work plan and resources and agreed

with the auditor’s key areas of focus, including

accounting for acquisitions, warranty provisions

and revenue recognition.

During the year, the committee met with the

external auditor without management being

present. This meeting provided the opportunity

for direct dialogue and feedback between the

committee and the auditor, where they discussed

inter alia some of the key audit management

letter points.

EU audit reform

The regulatory framework for the Group’s statutory

audit is governed by EU legislation under Directive

2014/56/EU and Regulation EU No. 537/2014.

EU Audit reform legislation is applicable in the

Member States of the European Union, including

Ireland. Under this legislation, Kingspan Group

plc is considered a Public Interest Entity (PIE). Key

developments falling from the implementation of

this legislation are:

» a requirement that the PIE changes its

statutory auditor every ten years (following

rotation, the statutory audit firm cannot be

reappointed for four years);

» a requirement that certain procedures are

followed for the selection of the new statutory

auditor; and

» restrictions on the entitlement of the statutory

auditing firm to provide certain non-audit

services.

During the year, the Committee conducted a

comprehensive statutory audit tender process.

This decision was influenced by the expanded

reporting obligations under CSRD, for which the

Group auditor also provides limited assurance.

It also enabled the committee to evaluate the

cost competitiveness of the incumbent auditor

amid recent cost inflation in professional services

markets globally.

All invited firms participated, and they were

assessed on criteria including team capabilities,

experience in auditing large multinational

companies, industry expertise, onboarding

acquisitions, transition strategy, and value for

money. Following the evaluation, EY was deemed

to offer the best audit proposition and will

therefore continue as the Group’s auditor. Under

EU legislation, EY is permitted to continue as the

Group’s statutory auditor until the financial year

ended 31 December 2029.

Independence and objectivity

The committee is responsible for ensuring that the

external auditor is objective and independent. EY

was appointed as the Group’s auditor on 1 May

2020, following a formal tender process in which

several leading global firms submitted written

tenders and delivered in-person presentations.

The committee received confirmation from the

external auditor that they are independent of

the Group under the requirements of the IAASA

Ethical Standard for Auditors (Ireland) 2020. The

external auditor also confirmed that they were

not aware of any relationships between the Group

and the firm or between the firm and any persons

in financial reporting oversight roles in the Group

that may affect its independence.

Non-audit services

To further ensure independence, the committee

has a policy on the provision of non-audit services

by the external auditor that seeks to ensure that

the services provided by the external auditor are

not, or are not perceived to be, in conflict with

auditor independence. The committee ensured

that the independence of the external audit was

not compromised by obtaining an account of all

relationships between the external auditor and

the Group, by reviewing the economic importance

of the Group to the external auditor and by

monitoring the audit fees as a percentage of total

income generated from the relationship with the

Group. The committee’s policy on the provision of

non-audit services by the Group’s external auditor

is fully compliant with EU audit reform legislation.

Annual Report & Financial Statements 2024

138

Kingspan Group plc

AUDIT V OTHER ASSURANCE & NON-AUDIT SERVICES (€M)

4.1

0.1

2022

3.7

0.3

2021

2.7

0.1

2020

4.8 0.3

2023

2024

5.8 0.9

Audit services

Other

An analysis of fees paid to the external auditor, including the non-audit fees, is set out in

Note 5 and below:

Internal audit and compliance

The committee reviewed and agreed the annual

internal audit plan. The internal audit plan is risk

based, with all divisions audited every year, and

all new businesses audited within 12 months of

acquisition.

The committee reviewed reports from the Group

Head of Internal Audit & Compliance at its

quarterly meetings. These reports enable the

committee to monitor the progress of the internal

audit plan, to discuss key findings and the plan

to address them, and to obtain status updates of

previous key findings.

The committee is responsible for reviewing the

effectiveness of the internal audit function

and does so based upon discussion with Group

management, the Group’s external auditor and

feedback provided by divisional management.

The committee was satisfied that the internal

audit function is working effectively, improves

risk management throughout the Group and that

the internal audit team is sufficiently resourced

in addition to having the adequate level of

experience and expertise.

The terms of reference of the committee include

oversight of the processes around product

certification and product marketing. During the

year, the Group Head of Product Compliance and

Certification retired, and his role was assumed by

the Group Head of Internal Audit & Compliance.

Risk management and internal controls

The committee has been delegated, by the Board,

the responsibility for monitoring the effectiveness

of the Group’s system of risk management

and internal control. As part of both the year

end audit and the half year review process, the

committee monitors the Group’s risk management

and internal control processes through detailed

discussions with management and executive

directors, the review and approval of the internal

and external audit reports, all of which highlight

the greatest areas of risk and control weakness

in the Group. All weaknesses identified by

either internal or external audits are discussed

by the committee with Group management

and an implementation plan for the targeted

improvements to these systems is put in place.

The implementation plan is overseen by the Group

Chief Financial Officer and the committee is

satisfied that this plan is being properly executed.

139

Directors’ ReportReport of the Audit & Compliance Committee

As part of its standing schedule of business, the

committee carried out an annual risk assessment

of the business to formally identify the key

risks facing the Group. Full details of this risk

assessment and the key risks identified are set out

in the Risks & Risk Management section of this

Annual Report.

These processes, which are used by the committee

to monitor the effectiveness of the Group’s system

of risk management and internal control, are

in place throughout the accounting period and

remain in place up to the date of approval of this

Annual Report.

The main features of the Group’s internal control

and risk management systems that specifically

relate to the Group’s financial reporting and

accounts consolidation process are set out in the

Report of the Directors.

Product compliance framework

The committee has responsibility for reviewing

the effectiveness of the processes and controls

associated with product compliance and

monitoring the culture of compliance across the

Group.

The Group product compliance framework can be

split into two categories:

1. Compliance of products with product specific

laws and regulations, testing, certification and

accreditation; and

2. The accuracy and consistency of product

marketing materials.

The Group Product Compliance & Certification

team, led by the Group Head of Internal Audit

& Compliance, is independent of divisional

management and performs the following

functions:

» Supports compliance governance across the

Group in implementing policies, processes and

procedures to ensure continued improvement

in management systems. This includes

ownership of the Group Product Compliance

Policy;

» Performs extensive audits of processes and

controls associated with product compliance

and the monitoring of compliance across the

Group; and

» Leads the design and roll-out of the Group

Compliance Management System (CMS)

which has achieved the international ISO 37301

standard.

The committee meet with the Group Head of

Internal Audit & Compliance for updates on the

Group’s compliance and certification agenda. This

includes updates on the product compliance audit

schedule and the results of completed audits as

well as reviewing the Group Compliance Auditing

Guidelines. The Audit & Compliance Committee

visit sites with the Group Product Compliance

& Certification team to better understand the

product compliance culture at an operational

level.

The committee also meet regularly with the Group

Head of Internal Audit & Compliance in relation to

product marketing compliance matters. Following

the adoption of the Group Marketing Integrity

Manual in September 2021, the Group Internal

Audit Plan includes specific audits, performed by

appropriately trained internal auditors, of product

marketing compliance with the Group Marketing

Integrity Manual.

The committee noted the following product

compliance highlights in 2024:

» An additional 26 sites have been accredited

with the leading international compliance

standard, ISO 37301. This now brings the total

number of sites with this accreditation to 85

with a plan to have 105 sites certified to this

standard by the end of 2025.

» Updated Group Compliance Auditing

Guidelines issued.

» 123 internal product compliance audits were

conducted by the Group Product Compliance

and Certification team.

» 490 external product compliance audits were

conducted by independent certification bodies.

» 29 business unit marketing audits were

performed by the Group Internal Audit &

Compliance team.

» ISO 37301 education and training systems

delivered.

» Incorporation of newly acquired businesses into

the Compliance Management System (CMS).

» Recruitment of additional compliance experts

for Group Internal Audit & Compliance team.

» Divisional Compliance Managers reporting

to Group Compliance & Certification team

monthly.

» Product compliance registers maintained

across all divisions.

Annual Report & Financial Statements 2024

140

Kingspan Group plc

Anonymous misconduct reporting procedures

The Group has a Code of Conduct, full details

of which are available on the Group’s website

(www.kingspan.com).

Based on the standards set out in this Code of

Conduct, the Group employs a comprehensive,

confidential and independent phone service

to allow all employees to raise their concerns

about their working environment and business

practices. This service then allows management

and employees to work together to address any

instances of fraud or other misconduct in the

workplace.

Any instances of fraud or misconduct reported

on the independent phone service are reported

to the Head of Internal Audit & Compliance and

the Company Secretary who ensure each incident

is appropriately investigated and details of the

incident reported to the committee including: key

control failures, any financial loss and actions for

improvement. All reports through the independent

reporting line and all fraud attempts are presented

at each committee meeting.

During the year, the committee reviewed the

Group’s anonymous misconduct reporting process

and were satisfied with the design and operating

effectiveness of the process.

Linara GmbH

Kaufbeuren,

Germany

Insulated Panels

Karrier BK panel

141

Directors’ ReportReport of the Audit & Compliance Committee

REPORT OF

THE DIRECTORS

GENE MURTAGH

GEOFF DOHERTY

The directors of Kingspan

Group plc (Kingspan) have

pleasure in presenting

their report with the

audited financial

statements for the year

ended 31 December 2024.

103 City Point

Massachusetts, USA

Light, Air + Water

UniQuad

wall

system; PentaClad

cladding system

142

Kingspan Group plc

Annual Report & Financial Statements 2024

Kingspan Group plc

142

Information incorporated by reference

The following information is provided in other appropriate sections of this Annual Report and the financial

statements and is incorporated into this Report of the Directors by reference.

Information Reported in Page

A review of the business of the Group.

Chief Executive’s Review 38

The Group’s key performance indicators (KPIs).

Financial Review 50

A description of likely future developments in

the Group’s business.

Chief Executive’s Review 49

A description of the principal risks and

uncertainties that could affect the Group’s

business.

Risk & Risk Management Report 56

The Company’s application of the principles,

and compliance with the provisions, of the 2018

UK Corporate Governance Code and the Irish

Corporate Governance Annex.

Report of the Nominations &

Governance Committee

The names and biographical details of

the directors.

The Board 85

The directors’ and Company Secretary’s interests

in shares and debentures.

Report of the Remuneration

Committee

123

The Group’s financial risk management objectives

and policies and a description of the use of

financial instruments.

Financial Statements

(Note 20)

301

The amount of interim dividends (if any) paid by

the Company during the year and the amount

(if any) that the directors recommend should be

paid by way of final dividend.

Financial Review 52

Information required by EU Taxonomy Regulation

(Sustainable finance taxonomy - Regulation

(EU) 2020/852), the Corporate Sustainability

Reporting Regulations 2024 and by the European

Union (Disclosure of Non-Financial and Diversity

Information by certain large undertakings and

groups) Regulations 2017.

CSRD Sustainability Statement 154

This Report of the Directors

and the Business & Strategic

Report on pages 26-83 together

comprise the Management

Report for the purposes of

the Transparency (Directive

2004/109/EC) Regulations 2007

of Ireland.

143

Directors’ ReportReport of the Directors

Principal Activities

Kingspan is the global leader in high-performance insulation and building envelope solutions. Kingspan

Group plc is a holding company for the Group’s subsidiaries and other entities. The Group’s principal

activities comprise the manufacture and distribution of the following product suites as part of the

complete Building Envelope:

Stommen Group

Headquarters

Småland, Sweden

Roofing +

Waterproofing

Derbigum

SP Anti-

Root Waterproofing

Membrane

Kingspan’s five key business divisions offer a suite of complementary building envelope solutions for both

the new build and refurbishment markets.

Insulation

Manufacture of

a broad range

of insulation

solutions (rigid

boards, stonewool,

bio-based

and technical

insulation) and

engineered timber

systems.

Data

Solutions

Manufacture

of data

centre airflow

management/

cooling solutions

and raised access

floors.

Light, Air +

Water

Manufacture

of energy and

water solutions,

daylighting, smoke

management and

ventilation systems

and related service

activities.

Roofing +

Waterproofing

Manufacture

of roofing and

waterproofing

solutions for

renovation and

new construction

of buildings.

Insulated

Panels

Manufacture of

insulated panels,

structural framing

and metal

facades.

Annual Report & Financial Statements 2024

144

Kingspan Group plc

At Kingspan, innovation is

a core pillar of our strategy

and we view it as a key

strategic advantage.

Innovation

At Kingspan, innovation is a core pillar of our

strategy and we view it as a key strategic

advantage. We believe building industry traditions

must be challenged through innovation in

advanced materials and digital technologies in

order to achieve a net zero emissions future.

We have innovated a portfolio of advanced

products and solutions for architects and building

owners which enable them to construct buildings

that consume less resources. Future proofing their

investment, generating returns through enhanced

internal space and operational performance, and

facilitating efficient construction through thinner,

lighter and safer to handle materials. Increasingly,

we are enhancing our service and solutions

through digitalisation. By surfacing our products

digitally, we’re making it easier to find, specify,

buy, build with and track them.

In the year ended 31 December 2024, the

Group’s research and development expenditure

amounted to €75.5m (2023: €63.5m). Research

and development expenditure is generally

expensed in the year in which it is incurred.

Kingspan’s continuing investment in research and

development involves a number of key projects

which include:

» the launch of a range of solar PV systems,

suitable for both newbuild and retrofit

applications, with testing and certification

underway to the following global recognised

standards via FM Approvals:

- PV solar-integrated PowerPanel

roof

solution having tested and satisfied the

requirements of FM4478;

- PowerPlus KS1000RW having tested and

satisfied the requirements of FM4478;

- PowerCanopy having tested and satisfied

the requirements of FM4480; and

- PowerPlus KS1000TD with a certification

programme underway to FM4478.

» QuadCore LEC

to FM4540;

» QuadCore

2.0 continued roll-out;

» evolution of QuadCore

to satisfy FM4882

Clean Room Classification;

» evolution of QuadCore

to enhance Fire

Resistance;

» next generation Kooltherm

;

» A-class vacuum insulated panel;

» decarbonisation of materials and products;

» digitalisation of the construction industry;

» translucent insulated solutions;

» lower carbon acoustic solutions;

» bio-based low carbon insulation;

» next generation PIR and Therma insulation

board;

» end of life recycling options, including

mechanical and chemical recycling solutions;

and

» enhanced installation solutions from semi

automated to robotic systems.

Share Certificate Dematerialisation

In accordance with the EU Central Securities

Depositories Regulation (EU) 909/2014 (CSDR),

all securities of Irish issuers admitted to trading

or traded on trading venues in the European

Economic Area are now required to be held in

book-entry form as of 1 January 2025. This change

eliminates the need for physical share certificates

as ownership is now recorded electronically. From

1 January 2023, all new share issuances by the

Company have been issued in book-entry form

and from 1 January 2025, all remaining shares

have transitioned to this format. Share certificates

previously issued to shareholders became invalid as

of 1 January 2025 and have been replaced by book-

entry balances maintained by the Company’s

registrar, Computershare Investor Services

(Ireland) Limited.

Share Buyback Programme

On 26 April 2024, the Board approved a limited

Share Buyback Programme to repurchase up

to 1,500,000 Ordinary Shares of €0.13 each in

the capital of the Company. Over the course

of the Programme, the Company repurchased

in aggregate 1,500,000 ordinary shares

between 26 April 2024 and 11 June 2024 for a

total consideration of €133m and at a volume

weighted average price of €88.85 per share. The

repurchased shares are held in treasury.

145

Directors’ ReportReport of the Directors

The European Communities (Takeover Bids

(Directive 2004/25/EC)) Regulations 2006

The information required by Regulation 21 of the

above Regulations as at 31 December 2024 is set

out below.

Structure of the Company’s share capital

At 31 December 2024, the Company had an

authorised share capital comprised of 250,000,000

(2023: 250,000,000) ordinary shares of €0.13

each and the Company’s total issued share

capital comprised 184,596,642 (2023: 183,591,682)

ordinary shares.

The number of shares held as treasury shares at

the beginning of the year was 1,668,148 (0.92% of

the then issued share capital (excluding treasury

shares)) with a nominal value of €216,859. During

the year, the Company repurchased 1,500,000

shares (0.82% of the issued share capital

(excluding treasury shares)) with a nominal value

of €195,000 which are held in treasury. A further

15,689 shares (with a nominal value of €2,040)

were bought back by the Company and held in

treasury for the purpose of the Deferred Bonus

Plan. A total of 386,678 shares (0.21% of the

issued share capital (excluding treasury shares))

with a nominal value of €50,268 were reissued

during the year relating to the exercise of share

options under the Kingspan Group Performance

Share Plan and the Kingspan Group Employee

Benefit Trust. As at 31 December 2024, the balance

of treasury shares held was 2,797,159 (1.54% of the

issued share capital (excluding treasury shares))

with a nominal value of €363,631.

Analysis of registered shareholding accounts as at 31 December 2024:

Shareholding

range

Number of

accounts

% of total Number of

shares held

% of total

1 - 1000 1,315 70.55 570,626 0.32

1,001 - 10,000 509 27.31 1,391,967 0.75

10,001 - 100,000 34 1.82 725,297 0.39

100,001 - 1,000,000 3 0.16 392,162 0.21

Over 1,000,000 3 0.16 181,516,590 98.33

1,864 100.00 184,596,642 100.00

Substantial Interests

As at 17 February 2025, the Company had received notification of the interests outlined in the table

below, in its ordinary share capital, which were equal to, or in excess of, 3%.

Notification

Date

Shareholder Shares

held

27/01/2021 Eugene Murtagh 27,018,000 14.88%

20/01/2025 Blackrock, Inc. 12,507,574 6.87%

13/02/2025 FMR LLC 10,630,880 5.84%

04/02/2025 Generation Investment Management LLP 9,096,622 4.99%

10/12/2024 The Capital Group Companies, Inc. 9,031,308 4.96%

Rights and obligations attaching to the

ordinary shares

The Company has no securities in issue conferring

special rights with regards control of the Company.

All ordinary shares rank pari passu, and the

rights attaching to the ordinary shares (including

as to voting and transfer) are as set out in the

Company’s Articles of Association (Articles).

The Articles also contain the rules relating to the

appointment and removal of directors, procedures

for amending the Articles, the powers of the

Company’s directors, and the issuing or buying

back by the Company of its shares. A copy of

the Articles may be found on www.kingspan.com

or may be obtained on request to the Company

Secretary.

Holders of ordinary shares are entitled to receive

duly declared dividends in cash or, when offered,

Annual Report & Financial Statements 2024

146

Kingspan Group plc

additional ordinary shares. In the event of any

surplus arising on the occasion of the liquidation of

the Company, shareholders would be entitled to a

share in that surplus pro rata to their holdings of

ordinary shares.

Holders of ordinary shares are entitled to receive

notice of and to attend, speak and vote in person

or by proxy, at general meetings having, on a

show of hands, one vote, and, on a poll, one

vote for each Ordinary Share held. Procedures

and deadlines for entitlement to exercise, and

exercise of, voting rights are specified in the notice

convening the general meeting in question. There

are no restrictions on voting rights except in the

circumstances where a “Specified Event” (as

defined in the Articles) shall have occurred and the

directors have served a Restriction Notice on the

shareholder. Upon the service of such Restriction

Notice, no holder of the shares specified in the

notice shall, for so long as such notice shall remain

in force, be entitled to attend or vote at any

general meeting, either personally or by proxy.

Holding and transfer of ordinary shares

The ordinary shares may be held in uncertificated

form through the Euroclear Bank system or (via a

holding of CREST Depository Interest (CDIs)) the

CREST system.

Save as set out below, there is no requirement to

obtain the approval of the Company, or of other

shareholders, for a transfer of ordinary shares. The

directors may decline to register (a) any transfer

of a partly-paid share to a person of whom they

do not approve, (b) any transfer of a share to

more than four joint holders, or (c) any transfer of

a share on which the Company has a lien.

Transfers of uncertificated shares may be effected

by means of a relevant system in the manner

provided for in the Regulation (EU) No. 909/2014

of the European Parliament and of the Council of

23 July 2014 (the CSD Regulations) and the rules

of the relevant system. The directors may refuse

to register a transfer of uncertificated shares only

in such circumstances as may be permitted or

required by the CSD Regulations.

Rules concerning the appointment and

replacement of the directors and amendment

of the Company’s Articles

Unless otherwise determined by ordinary resolution

of the Company, the number of directors shall not

be less than two or more than 15.

Subject to that limit, the shareholders in general

meeting may appoint any person to be a director

either to fill a vacancy or as an additional director.

The directors also have the power to co-opt

additional persons as directors, but any director

so co-opted is under the Articles required to be

submitted to shareholders for re-election at the

first Annual General Meeting (AGM) following his

or her co-option.

The Articles require that at each AGM of the

Company one-third of the directors retire by

rotation. However, in accordance with best

practice, the directors have resolved they will all

retire and submit themselves for re-election by

the shareholders at the AGM to be held on 1 May

2025.

The Company’s Articles may be amended by

special resolution (75% majority of votes cast)

passed at general meeting.

Powers of directors including powers in relation

to issuing or buying back by the Company of

its shares

Under its Articles, the business of the Company

shall be managed by the directors, who exercise

all powers of the Company as are not, by the

Companies Acts or the Articles, required to be

exercised by the Company in general meeting.

The directors are currently authorised to issue a

number of shares equal to the authorised but

as yet unissued share capital of the Company

on such terms as they may consider to be in

the best interests of the Company, under an

authority that was conferred on them at the

AGM held on 26 April 2024. The directors are also

currently authorised on the issue of new equity

for cash to disapply the strict statutory pre-

emption provisions that would otherwise apply,

provided that the disapplication is limited to

the allotment of equity securities in connection

with (i) any rights issue or any open offer to

shareholders, or (ii) the allotment of shares not

exceeding in aggregate 10% of the nominal value

of the Company’s issued share capital, or (iii)

for the purpose of financing (or refinancing) an

acquisition or other capital investment of a kind

contemplated by the UK Pre-emption Group not

exceeding in aggregate 10% of the nominal value

of the Company’s issued share capital. Both these

authorities expire on 26 July 2025 unless renewed

and resolutions to that effect are being proposed

at the AGM to be held on 1 May 2025.

The Company may, subject to the Companies Acts

and the Articles, purchase any of its shares and

may either cancel or hold in treasury any shares

so purchased, and may re-issue any such treasury

shares on such terms and conditions as may be

determined by the directors. The Company shall

not make market purchases of its own shares

unless such purchases have been authorised by a

147

Directors’ ReportReport of the Directors

special resolution passed by the members of the

Company at a general meeting. At the AGM held

on 26 April 2024, shareholders passed a resolution

giving the Company, or any of its subsidiaries, the

authority to purchase up to 10% of the Company’s

issued ordinary shares. At the AGM to be held on 1

May 2025, shareholders are being asked to renew

this authority.

Change of Control Provisions

Some of the Group’s banking facilities include

provisions that, in the event of a change of control

of the Company, could oblige early prepayment

of the facilities. Some of the Company’s joint

venture arrangements also contain provisions that

would allow the counterparty to terminate the

agreement in the event of a change of control of

the Company. The Company’s Performance Share

Plan contains change of control provisions which

allow for the acceleration of the exercise of share

options/awards in the event of a change of control

of the Company.

There are no agreements between shareholders

that are known to the Company which may result

in restrictions on the transfer of securities or voting

rights.

There are no agreements between the Company

and its directors or employees providing for

compensation for loss of office or employment

(whether through resignation, purported

redundancy or otherwise) that occurs because of

a takeover bid.

Directors and Secretary

The directors and secretary of the Company at

the date of this report are as shown in The Board

section of this Annual Report.

Conflicts Of Interest

None of the directors have any direct or indirect

interest in any contract or arrangement subsisting

at the date hereof which is significant in relation

to the business of the Company or any of its

subsidiaries nor in the share capital of the

Company or any of its subsidiaries.

Financial Instruments

In the normal course of business, the Group has

exposure to a variety of financial risks, including

foreign currency risk, interest rate risk, liquidity

risk and credit risk. The Company’s financial risk

objectives and policies are set out in Note 20 of

the financial statements.

Internal control and risk management systems

The Board confirms that there is an ongoing

process for identifying, evaluating and managing

any significant risks faced by the Group. This

process has been in place for the year under

review and up to the date of approval of the

financial statements, and it is regularly reviewed

by the Board in compliance with ‘Guidance on

Risk Management, Internal Control and Related

Financial and Business Reporting’ issued by the

Financial Reporting Council.

The Board has delegated responsibility to the Audit

& Compliance Committee to monitor and review

the Group’s risk management and internal control

processes, including the financial, operational

and compliance controls. This is done through

detailed discussions with management and the

executive directors, the review and approval of the

internal audit reports, which focus on the areas of

greatest risk to the Group, and the external audit

reports, as part of both the year end audit and

the half year process, all of which are designed to

highlight the key areas of control weakness in the

Group. Further details of the work conducted by

the Audit & Compliance Committee in this regard

is detailed in the Report of the Audit & Compliance

Committee contained in this Annual Report.

The main features of the Group’s internal control

and risk management systems that relate

specifically to the Group’s financial reporting

processes are:

» budgets and strategic plans are approved

annually by the Board and compared to actual

performance and forecasts on a monthly basis;

» sufficiently sized finance teams with appropriate

level of experience and qualifications

throughout the Group;

» formal Group Accounting Manual in place which

clearly sets out the Group financial policies in

addition to the formal controls;

» formal IT and treasury policies and controls in

place;

» centralised tax and treasury functions;

» sales reports are submitted and reviewed on

a weekly basis whilst full reporting packs are

submitted and reviewed on a monthly basis;

and

» internal audit function review financial controls,

IT general controls, cyber security controls and

report results/findings on a quarterly basis to

the Audit & Compliance Committee.

The main features of the Group’s internal control

and risk management systems that relate

specifically to the Group’s consolidation process are:

» the review of reporting packages for each

entity as part of the year end audit process;

Annual Report & Financial Statements 2024

148

Kingspan Group plc

» the reconciliation of reporting packages to

monthly management packs as part of the

audit process and as part of management

review;

» the validation of consolidation journals as part

of the management review process and as

an integral component of the year end audit

process;

» the review and analysis of results by the Chief

Financial Officer and the internal auditors with

the management of each division;

» consideration by the Audit & Compliance

Committee of the outcomes from the annual

risk assessment of the business; and

» the review of internal and external audit

management letters by the Chief Financial

Officer, the Head of Internal Audit &

Compliance and the Audit & Compliance

Committee and the follow up of any critical

management letter points to ensure issues

highlighted are addressed.

In addition, the remit of the Audit & Compliance

Committee also includes reviewing the

effectiveness of the controls and processes

relating to product compliance by:

» reviewing reports from the Group Head of

Audit & Compliance relating to product

compliance, certification and accreditation,

including implementation status of the Group’s

ISO 37301 Compliance Management Systems

targets;

» auditing compliance with the Group Marketing

Integrity Manual; and

» monitoring the culture of compliance across

the Group.

Further information on the risks faced by the Group

and how they are managed are set out in the Risk &

Risk Management section of this Annual Report.

Accounting Records

The directors are responsible for ensuring that

accounting records, as outlined in Sections 281 to

285 of the Companies Act 2014, are kept by the

Group. The directors have provided appropriate

systems and resources, including the appointment

of suitably qualified accounting personnel,

CC Estepark

Castellón,Spain

Insulated Panels

Italia 30 linear ceiling

149

Directors’ ReportReport of the Directors

to maintain adequate accounting records

throughout the Group, in order to ensure that the

requirements of Sections 281 to 285 are complied

with. The accounting records of the Company

are maintained at the principal executive offices

located at Dublin Road, Kingscourt, Co. Cavan,

A82 XY31, Ireland.

Political Donations

Neither the Company nor any of its subsidiaries

have made any political donations in the year

which would be required to be disclosed under the

Electoral Act 1997 (2023: €nil).

Subsidiary Companies

Kingspan is a truly global business, trading in over

80 countries with 273 manufacturing sites across

the globe.

The Company’s principal subsidiary undertakings

at 31 December 2024, country of incorporation

and nature of business are listed on pages 328 to

329 of this Annual Report.

The Company does not have any branches outside

of Ireland.

Significant Events Since Year End

On 4 February 2025, the Group announced a

public offer for all shares in Nordic Waterproofing

Holding AB (NWG) at a price of SEK 182.50

in cash per share (the Offer). The total value

of the Offer, based on the 3,041,052 shares

in NWG which are not owned by the Group,

amounts to approximately SEK 555 million. The

Board of Directors of NWG have unanimously

recommended that the shareholders of NWG

accept the Offer. Please see Note 35 of the

financial statements for further details.

There have been no other material events

subsequent to 31 December 2024 which would

require adjustment to, or disclosure in this report.

Going Concern

The directors have reviewed budgets and

projected cash flows for a period of not less than

12 months from the date of this Annual Report,

and considered its net debt position and capital

commitments, available committed banking

facilities and other relevant information including

the economic conditions currently affecting the

building environment generally and the Group’s

Strategic Plan. On the basis of this review, the

directors have concluded that there are no

material uncertainties that would cast significant

doubt over the Company’s and the Group’s ability

to continue as a going concern. For this reason,

the directors consider it appropriate to adopt the

going concern basis in preparing the financial

statements.

Viability Statement

The directors are required to assess the prospects

of the Company, explain the period over which

we have done so and state whether we have a

reasonable expectation that the Company will be

able to continue in operation and meet liabilities

as they fall due over this period of assessment.

The directors have assessed the prospects of the

Group over the three-year period to February 2028.

The directors concluded that three years was an

appropriate period for the assessment, having had

regard to:

» the Group’s rolling Strategic Plan which extends

to 2028;

» the Group’s long-term funding commitments

some of which fall to be repaid during the

period;

» the inherent short-cycle nature of the

construction market including the Group’s

order bank and project pipeline; and

» the potential impact of macro-economic

events and political uncertainty in some

regions.

It is recognised that such future assessments are

subject to a level of uncertainty that increases

with time, and therefore future outcomes cannot

be guaranteed or predicted with certainty.

The Group Strategic Plan is approved by the Board,

building upon the several divisional management

plans as well as the Group’s strategic goals. It

is based on a number of cautious assumptions

concerning macro growth and stability in our

key markets, and continued access to capital to

support the Group’s ongoing investments. The

strategic plan is subject to stress testing which

involves flexing a number of the main assumptions

underlying the forecast in severe but reasonable

scenarios. Such assumptions are rigorously tested

by management and the directors. It is reviewed

and updated annually and was considered

and approved by the Board at its meeting in

December 2024.

In making this assessment, the directors have

considered the resilience of the Group, taking

account of its current position and the principal

risks facing the business as outlined in the Risk

& Risk Management Report contained in this

Annual Report, and the Group’s ability to manage

those risks. The risks have been identified using

a top-down and bottom-up approach, and their

potential impact was assessed having regard to

the effectiveness of controls in place to manage

each risk. In assessing the prospects of the Group

Annual Report & Financial Statements 2024

150

Kingspan Group plc

such potential impacts have been considered as

have the mitigating factors in place.

Based on this assessment the directors have a

reasonable expectation that the Group will be able

to continue in operation and meet its liabilities as

they fall due over the three-year period of their

assessment.

Directors’ Responsibility Statement

Each of the directors whose names and functions

are set out in The Board section of this Annual

Report confirm their responsibility for preparing

the Annual Report and the consolidated and

Company financial statements in accordance with

applicable Irish law and regulations.

Company law in Ireland requires the directors to

prepare financial statements for each financial

year. Under that law the directors have to

prepare the consolidated financial statements in

accordance with International Financial Reporting

Standards (IFRSs) as adopted by the European

Union (EU). The directors have elected to prepare

the Company financial statements in accordance

with IFRSs as adopted by the EU and as applied by

the Companies Act 2014. The financial statements

are required by law to give a true and fair view of

the assets, liabilities and financial position of the

Group and Company at 31 December 2024 and of

the profit or loss of the Group for that period. In

preparing those financial statements, the directors

are required to:

» select suitable accounting policies and then

apply them consistently;

» make judgements and estimates that are

reasonable and prudent;

» state whether applicable IFRSs have been

followed, subject to any material departures

disclosed and explained in the financial

statements; and

» prepare the financial statements on the going

concern basis unless it is inappropriate to

presume that the Company, and the Group as

a whole, will continue in business.

The directors are responsible for keeping

accounting records which disclose with reasonable

accuracy at any time the financial position of the

Group and the Company and which enable them

to ensure that the financial statements comply

with the Companies Act 2014 and Article 4 of the

IAS Regulation.

They are responsible for safeguarding the assets of

the Group and hence for taking reasonable steps

for the prevention and detection of fraud and

other irregularities.

The directors are responsible for the maintenance

and integrity of the corporate and financial

information on the Company’s website.

Legislation in the Republic of Ireland governing

the preparation and dissemination of financial

statements may differ from legislation in other

jurisdictions.

In accordance with Transparency (Directive

2004/109/EC) Regulations 2007 and the

Transparency Rules of the Financial Regulator,

the directors confirm that to the best of their

knowledge:

» the Group financial statements and the

Company financial statements, prepared

in accordance with the applicable set of

accounting standards, give a true and fair view

of the assets, liabilities, financial position and

profit or loss of the Group and Company; and

» the Report of the Directors includes a fair

review of the development and performance of

the business and the position of the Group and

Company, together with a description of the

principal risks and uncertainties that they face.

They are also satisfied:

» that the Annual Report and financial

statements, taken as a whole, is fair,

balanced and understandable and provides

the information necessary for shareholders to

assess the Group’s position, business model

and strategy.

Statement of Directors’ Responsibilities for the

CSRD Sustainability Statement

The directors are responsible for developing and

implementing a process to identify the information

reported in the CSRD Sustainability Statement (the

Sustainability Statement) in accordance with the

ESRS and for disclosing this process in the basis

of preparation on page 161 of the Sustainability

Statement. This responsibility includes:

» understanding the context in which the Group’s

activities and business relationships take

place and developing an understanding of its

affected stakeholders;

» the identification of the actual and potential

impacts (both negative and positive) related

to sustainability matters, as well as risks and

opportunities that affect, or could reasonably

be expected to affect, the Group’s financial

position, financial performance, cash flows,

access to finance or cost of capital over the

short, medium, or long-term;

» the assessment of the materiality of the

identified impacts, risks and opportunities

151

Directors’ ReportReport of the Directors

related to sustainability matters by selecting

and applying appropriate thresholds; and

» making assumptions and estimates that are

reasonable in the circumstances.

The Directors are further responsible for the

preparation of the Sustainability Statement in

accordance with Part 28 of the Companies Act

2014, including, but not limited to:

» preparation in accordance with the ESRS;

» presenting and reporting a double materiality

assessment process to identify the information

required to be reported in the Sustainability

Statement pursuant to the ESRS and for

disclosing this process in the Sustainability

Statement;

» preparing the disclosures in subsection The EU

Taxonomy within the environmental section of

the Sustainability Statement, in compliance

with Article 8 of EU Regulation 2020/852 (the

Taxonomy Regulations);

» designing, implementing and maintaining such

internal controls that are deemed necessary

to enable the preparation of the Sustainability

Statement free from material misstatement,

whether due to fraud or error; and

» the selection and application of appropriate

sustainability reporting methods and

making assumptions and estimates that are

reasonable in the circumstances.

In reporting forward-looking information in

accordance with ESRS, the Group is required

to prepare the forward-looking information

on the basis of disclosed assumptions about

events that may occur in the future and possible

future actions by the Group. This includes the

selection of different but acceptable estimation,

approximation or forecasting techniques, which

could have resulted in materially different

amounts or disclosures being reported. Actual

outcome is likely to be different since anticipated

events frequently do not occur as expected.

Directors’ Compliance Statement

The directors acknowledge that they are

responsible for securing the Company’s

compliance with its relevant obligations in

accordance with Section 225 (2)(a) of the

Companies Act 2014 (the Act) (described below as

the Relevant Obligations).

In accordance with Section 225 (2)(b) of the Act,

the directors confirm that:

» a Compliance Policy Statement has been

drawn up setting out the Company’s policies

(that are, in the opinion of the directors,

appropriate to the Company) in respect of the

compliance by the Company with its Relevant

Obligations;

» appropriate arrangements or structures are

in place that, in the opinion of the directors,

provide a reasonable assurance of compliance

in all material respects with the Company’s

Relevant Obligations; and

» during the financial year to which this report

relates, a review has been conducted of the

arrangements or structures that are in place

to ensure material compliance with the

Company’s Relevant Obligations.

Relevant Audit Information

Each of the directors have taken all the steps that

they should or ought to have taken as a director

in order to make himself or herself aware of any

relevant audit information and to establish that

the Group’s statutory auditor is aware of that

information. So far as the directors are aware,

there is no relevant information of which the

Group’s statutory auditor is unaware.

Auditor

In accordance with Section 383(2) of the

Companies Act 2014, the Company’s auditor, EY,

will continue in office. EY were first appointed as

the Company’s auditor on 1 May 2020, with effect

for the financial year ending 31 December 2020. A

resolution authorising the directors to determine

their remuneration will be proposed at the AGM.

On behalf of the Board

Gene Murtagh

Chief Executive Officer

Geoff Doherty

Chief Financial Officer

25 February 2025

Annual Report & Financial Statements 2024

152

Kingspan Group plc

By surfacing our products

digitally, we’re making it

easier to find, specify, buy,

build with and track them.

153

Directors’ ReportReport of the Directors

103 City Point

Massachusetts, USA

Light, Air + Water

UniQuad

wall

system; PentaClad

cladding system

CSRD

Sustainability

Statement

Kingspan Group plc Annual Report & Financial Statements 2024

154

Greater Manchester

Major Trauma Hospital

Salford, UK

Insulation

K-Roc

Rainscreen Slab

155

Limited Assurance Report on the CSRD Sustainability Statement 156

General Information 160

Environmental Information 170

EU Taxonomy 171

E1 Climate change 177

E2 Pollution 192

E3 Water and marine resources 194

E4 Biodiversity and ecosystems 196

E5 Resource use and circular economy 198

Social Information 208

S1 Own workforce 209

S2 Workers in the value chain 220

S3 Affected communities 223

S4 Consumers and end-users 226

Governance Information 232

G1 Business conduct 233

Appendices 238

156

Kingspan Group plc

Our limited assurance conclusion

We have performed a limited

assurance engagement on the

sustainability reporting set out in

the CSRD Sustainability Statement

prepared by Kingspan Group plc

(‘the Group’), included on pages

160 to 251 of the Annual Report

of the Group for the year ended

31 December 2024, prepared in

accordance with Part 28 of the

Companies Act 2014.

Based on the procedures performed

and evidence obtained, nothing has

come to our attention to cause us

to believe that the Group’s CSRD

Sustainability Statement for the

year ended 31 December 2024 is not

prepared, in all material respects,

in accordance with Part 28 of the

Companies Act 2014, including:

» The compliance of the CSRD

Sustainability Statement with

the European Sustainability

Reporting Standards (ESRS);

» The process carried out by

the Group to identify material

sustainability related impacts,

risks and opportunities in

accordance with ESRS;

» The compliance with the

reporting requirements of Article

8 of Regulation (EU) 2020/852

(the “Taxonomy Regulations”);

and

» Compliance with the

requirement to mark up the

CSRD Sustainability Statement

in accordance with Section 1600

of the Companies Act 2014.

Basis for our conclusion

We conducted our limited assurance

engagement in accordance with

International Standard on Assurance

Engagements (ISAE) (Ireland)

3000, as adopted by the Irish

Auditing and Accounting Supervisory

Authority (IAASA). The procedures

in a limited assurance engagement

vary in nature and timing from,

and are less in extent than for, a

reasonable assurance engagement.

Consequently, the level of assurance

obtained in a limited assurance

engagement is substantially lower

than the assurance that would have

been obtained had a reasonable

assurance engagement been

performed.

Any internal control structure,

no matter how effective, cannot

eliminate the possibility that fraud,

errors or irregularities may occur and

remain undetected and because

we use selective testing in our

engagement, we cannot guarantee

that all errors or irregularities, if

present, will be detected.

The CSRD Sustainability Statement

includes prospective information

such as ambitions, strategy, plans,

expectations and estimates.

Prospective information relates to

events and actions that have not yet

occurred and may never occur. We

do not provide any assurance on the

assumptions and achievability of this

prospective information.

Our responsibilities under this

standard are further described in the

section titled ‘Our responsibilities’ in

this report.

We are independent of the Group in

accordance with the International

Code of Ethics for Professional

Accountants (including International

Independence Standards) issued

by the International Ethics

Standards Board for Accountants

(IESBA Code), the independence

requirements of the Companies Act

2014 and the Code of Ethics issued

by Chartered Accountants Ireland

that are relevant to our limited

assurance engagement of the CSRD

Sustainability Statement in Ireland.

Our firm applies International

Standard on Quality Management

(ISQM) 1 (Ireland), Quality

Management for Firms that

Perform Audits or Reviews of

Financial Statements, or Other

Assurance or Related Services

Engagements, issued by the IAASA.

This standard requires the firm to

design, implement and operate a

system of quality management,

including policies or procedures

regarding compliance with ethical

requirements, professional standards

and applicable legal and regulatory

requirements.

We believe that the evidence we

have obtained is sufficient and

appropriate to provide a basis for our

conclusion.

Other matter – Compliance with

the requirement to mark-up the

CSRD Sustainability Statement

We note that Section 1613(3)(c) of

the Companies Act 2014 requires

us to report on the compliance by

the Group with the requirement to

mark-up the CSRD Sustainability

Statement in accordance with

Section 1600 of that Act. Section

1600 of the Companies Act 2014

requires that the Directors’ Report is

prepared in the electronic reporting

format specified in Article 3 of

Delegated Regulation (EU) 2019/815

and shall mark-up the CSRD

Sustainability Statement. However,

at the time of issuing our limited

assurance report, the electronic

reporting format has not been

specified nor become effective by

Delegated Regulation. Consequently,

the Group is not required to mark-up

the CSRD Sustainability Statement.

Our conclusion is not modified in

respect of this matter.

Other information

The directors are responsible

for the other information. The

other information comprises the

information included in the Group’s

Annual Report but does not include

the CSRD Sustainability Statement

and our Limited Assurance Report

thereon.

Independent Practitioner’s Limited Assurance Report to the Directors of Kingspan Group plc

Limited Assurance Report on the CSRD Sustainability Statement

Annual Report & Financial Statements 2024

156

Kingspan Group plc

157

Our limited assurance conclusion on

the CSRD Sustainability Statement

does not cover the other information

and we do not express any form of

assurance conclusion thereon.

The comparatives included in the

CSRD Sustainability Statement have

not been part of the assurance

engagement. Consequently, the

comparative sustainability reporting

and thereto related disclosures in the

CSRD Sustainability Statement for

this period are not assured.

Responsibilities for the CSRD

Sustainability Statement

As explained more fully in

the Statement of Directors’

Responsibilities for the CSRD

Sustainability Statement, the

directors of the Group are

responsible for:

» Preparing, measuring, presenting

and reporting the CSRD

Sustainability Statement in

accordance with the relevant

criteria, contained in the

applicable sustainability reporting

framework being the ESRS, Part

28 of the Companies Act 2014;

the Taxonomy Regulations; the

requirement to mark up the

CSRD Sustainability Statement

in accordance with Section 1600

of the Companies Act 2014; and

any additional criteria used by

the Group to supplement and/

or interpret the sustainability

reporting framework criteria; and

» Developing, implementing and

reporting its double materiality

assessment process to identify

the information reported in the

CSRD Sustainability Statement

in accordance with ESRS and

for disclosing this process in the

CSRD Sustainability Statement.

This responsibility includes

identifying and engaging with

the Group’s stakeholders as

identified in the Group’s double

materiality assessment process

(stakeholders) to understand

their information needs.

Those charged with governance

are also responsible for overseeing

the Group’s CSRD Sustainability

Statement reporting process.

Inherent limitations in preparing

the CSRD Sustainability

Statement

Inherent limitations exist in all

assurance engagements. There

are inherent limitations regarding

the measurement or evaluation of

the CSRD Sustainability Statement

subject to limited assurance, which

have been set out below:

» Estimates, approximations and/

or forecasts used by the Group

in preparing and presenting

their CSRD Sustainability

Statement are subject to

significant inherent uncertainty.

The extent to which the CSRD

Sustainability Statement contains

qualitative, quantitative,

objective, subjective, historical

and prospective disclosures, also

represents a significant degree

of uncertainty. The selection

by management of different

but acceptable estimation,

approximation or forecasting

techniques, could have resulted

in materially different amounts

or disclosures being reported.

For the avoidance of doubt, the

scope of our engagement and

our responsibilities will not involve

us performing work necessary for

any assurance on the reliability,

proper compilation, or accuracy

of the prospective information.

» Certain metrics reported

within the CSRD Sustainability

Statement may be subject to

inherent limitations, for example,

value chain information relating

to emissions data provided by

third parties.

Our responsibilities

Our objectives are to plan and

perform the assurance engagement

to obtain limited assurance about

whether the CSRD Sustainability

Statement in scope of our

conclusion, is free from material

misstatement, whether due to

fraud or error, and to issue a Limited

Assurance Report that includes

our conclusion. Misstatements can

arise from fraud or error and are

considered material if, individually

or in the aggregate, they could

reasonably be expected to influence

decisions of users on the basis of the

CSRD Sustainability Statement.

As part of a limited assurance

engagement in accordance with

ISAE (Ireland) 3000, we exercise

professional judgment and maintain

professional scepticism throughout

the engagement. We also:

» Perform risk assessment

procedures, including obtaining

an understanding of internal

controls relevant to the

engagement, to identify

disclosures where material

misstatements are likely to

arise, whether due to fraud or

error, but not for the purpose

of providing a conclusion on

the effectiveness of the Group’s

internal control.

» Design and perform

procedures responsive to where

material misstatements are

likely to arise in the CSRD

Sustainability Statement.

The risk of not detecting a

material misstatement resulting

from fraud is higher than for

one resulting from error, as

fraud may involve collusion,

forgery, intentional omissions,

misrepresentations, or the

override of internal control.

» Design and perform procedures

to evaluate whether the CSRD

Sustainability Statement has

been prepared in accordance

with the ESRS, which includes

the process carried out by the

Group to identify material

sustainability related impacts,

risks and opportunities.

» Design and perform procedures

to evaluate whether the CSRD

Sustainability Statement has

been prepared in compliance

with the Taxonomy Regulations.

» With respect to our conclusion in

respect to the Group’s reporting

obligations and responsibility to

157

CSRD Sustainability Statement

158

Kingspan Group plc

mark up the CSRD Sustainability

Statement in accordance with

Section 1600 of the Companies

Act 2014, we assess whether we

have become aware of anything

to suggest that the CSRD

Sustainability Statement has not

been prepared, in all material

respects in this specified format.

However, as explained in the

‘Other matter - Compliance with

the requirement to mark-up the

CSRD Sustainability Statement’

section of our assurance report,

the Group is not currently

required to mark-up the CSRD

Sustainability Statement.

Summary of the work performed

A limited assurance engagement

involves performing procedures

to obtain evidence about the

CSRD Sustainability Statement.

The nature, timing and extent of

procedures selected depend on

professional judgment, including

the identification of disclosures

where material misstatements are

likely to arise, whether due to fraud

or error, in the CSRD Sustainability

Statement.

The procedures in a limited

assurance engagement vary in

nature and timing from, and are

less in extent than for, a reasonable

assurance engagement and depend

on professional judgment, including

the identification of disclosures

where material misstatements are

likely to arise, whether due to fraud

or error, in the CSRD Sustainability

Statement. Consequently, the

level of assurance obtained in a

limited assurance engagement

is substantially lower than the

assurance that would have

been obtained had a reasonable

assurance engagement been

performed.

In conducting our limited assurance

engagement, the procedures

performed included the following:

» We obtained an understanding

of the CSRD Sustainability

Statement reporting process

performed by the Group,

including the preparation of the

CSRD Sustainability Statement;

» We obtained an understanding

of the Group’s double

materiality assessment process

by performing inquiries to

understand the sources of

the information used by

management and reviewing the

Group’s internal documentation

of this process; and evaluated

whether the evidence obtained

from our procedures about the

Group’s process is consistent

with the description of the

process set out in the CSRD

Sustainability Statement;

» We performed risk assessment

procedures to understand the

Group and its environment,

including the Group’s reporting

boundary, its value chain

information and identified risks

of material misstatement;

» We designed and performed

further assurance procedures

(which included inquiries and

analytical procedures) to

respond to the identified risks of

material misstatement; and

» We evaluated the overall

presentation of the CSRD

Sustainability Statement and

considered whether the CSRD

Sustainability Statement

as a whole, including the

sustainability matters and

disclosures, is disclosed in

accordance with the applicable

criteria.

The purpose of our limited

assurance work and to whom we

owe our responsibilities.

Our report is made solely in

accordance with Section 1613 of the

Companies Act 2014 to the Directors

of the Group.

Our assurance work has been

undertaken so that we might state

to the Directors those matters we

are required to state to them in a

limited assurance report and for

no other purpose. To the fullest

extent permitted by law, we do not

accept or assume responsibility to

anyone other than the Group and its

Directors, as a body, for our limited

assurance work, for this report, or for

the conclusions we have formed.

Dermot Daly

for and on behalf of

Ernst & Young Chartered

Accountants Office: Dublin

Date: 26 February 2025

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159

Linara GmbH

Kaufbeuren,

Germany

Insulated Panels

Karrier BK panel

159

CSRD Sustainability Statement

160

Kingspan Group plc

CSRD SUSTAINABILITY

STATEMENT

Résidence

Étudiante Lemon

Brest, France

Insulated Panels

JI Ouragan P30 reverse

facade cladding

GENERAL

INFORMATION

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160

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161

BP-1 – General basis

for preparation of the

Sustainability Statement

We, the directors of Kingspan Group

plc (the Group) have prepared this

CSRD Sustainability Statement

(the Sustainability Statement) for

the year ended 31 December 2024

in accordance with Part 28 of the

Companies Act 2014. Relevant data

points within the Environmental,

Social and Governance (ESG)

sections have been evaluated

through our Double Materiality

Assessment (DMA) to ensure that

applicable material information is

disclosed in compliance with the

reporting requirements.

Our Sustainability Statement is

prepared on the same consolidated

basis as the financial statements.

Where full integration was not

feasible, we have incorporated

estimates to ensure completeness

and transparency in our disclosures.

In addition to covering our internal

operations, the Sustainability

Statement extends to relevant

aspects of our upstream and

downstream value chain.

Specifically, our DMA identifies

material Impacts, Risks and

Opportunities (IROs) throughout the

value chain and we clearly define

the boundaries of our value chain

coverage where relevant.

In accordance with ESRS, the

Group has opted to omit certain

information due to its commercially

sensitive nature. Specifically, this

omission pertains to details on

future financial resources allocated

to the action plan, including capital

expenditures (capex) and operating

expenses (opex). The Group has

allocated significant operational

and capital resources to execute

its sustainability action plan and

achieve its long-term strategic

objectives. The Group funds its

operations and investments through

a capital structure comprising a

combination of equity and debt.

Debt financing includes a green

revolving credit facility and green

private placement loan notes,

reflecting the Group’s commitment

to sustainable development. In

2024, the Group established a

Green Finance Framework to

support the issuance of green

finance instruments, enabling

the financing or refinancing of

projects that meet Taxonomy

criteria and further advancing its

sustainability initiatives. Additional

details on the Group’s capital

structure, financing arrangements

and available headroom can be

found in the Financial Review

section of this Annual Report. For

further information relevant to the

Group’s core funding and liquidity

risk, please refer to Note 20 of the

Financial Statements.

The Group’s ability to implement

its sustainability action plan

is not dependent on external

preconditions, such as financial

support or public policy

developments. While specific

funding allocations per action are

commercially sensitive and not

disclosed, the Group’s established

financing structure ensures the

flexibility and capacity to execute

the action plan effectively.

External review

This Sustainability Statement has

been subject to a limited assurance

review by the Group’s statutory

auditor, EY. Please refer to the

Limited Assurance Report for

further information.

Summary of Key Terms and Acronyms

Acronym Definition

CSRD Corporate Sustainability Reporting Directive

DMA Double Materiality Assessment

ESRS European Sustainability Reporting Standards

IRO Impact, Risk and Opportunity

DNSH Do No Significant Harm

For a comprehensive list of acronyms and definitions used in this report, please refer to Appendix 6.

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162

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BP-2 – Disclosures in

relation to specific

circumstances

The Group uses estimates in the

reporting of certain data points.

These estimates are reviewed and

updated based on evolving ESG

reporting standards and other

relevant factors. Any changes

to estimates are recognised in

the period they are revised. We

are committed to maintaining

transparency around each data

point, reporting this information

alongside the relevant disclosures

and sharing key estimates,

judgments and assumptions used in

our reporting.

Unless otherwise stated, we define

time horizons as follows: short-term

refers to one year, medium-term

covers the period from the end of

the short-term up to five years and

long-term is defined as more than

five years.

To prepare for the CSRD, we

have aligned our ESG KPI (Key

Performance Indicator) reporting

with the applicable definitions

and requirements of the ESRS. Any

restatements are disclosed in the

accounting principles related to the

relevant KPI.

The Group uses estimates for

reporting selected data points

when direct data is not readily

available. These estimates and

judgments are reviewed on an

ongoing basis to ensure accuracy

and reliability. Management

develops its estimates using

historical experience, insights from

internal experts, independent

advice, external data sources

and other information deemed

reasonable under the given

circumstances. For each data

point, we clearly indicate where

an estimate has been applied.

The measurement of all disclosed

metrics has only been subject

to validation by the assurance

provider, with no additional

external validation. Where specific

information, metrics or data

points are required disclosure for

the purposes of the Statement,

but are noted in the Statement as

being included elsewhere in the

Annual Report, they are hereby

incorporated by reference.

A content index with the ESRS

Disclosure Requirements that

are covered by the Statement is

included alongside information

reported in alignment with other

sustainability frameworks.

GOV-1 – The role of

the administrative,

management and

supervisory bodies

The Group Board of Directors (the

Board) holds overall responsibility

for the Group’s internal control

system, while day-to-day

implementation is delegated to

executive management.

The Audit & Compliance

Committee, established as a

sub-committee of the Board, is

specifically tasked with monitoring

the effectiveness of the Group’s risk

management and internal control

systems. This governance structure

ensures that sustainability matters

are integrated into the highest

levels of oversight, including the

management of material IROs.

To support this, a CSRD working

group, consisting of members

of Group Management and

senior managers, was formed

to coordinate and support

strategic decision-making for the

implementation of CSRD. The

Group holds monthly meetings,

with progress updates on CSRD,

including the DMA and the

management of IROs, provided

to the CFO on a bi-monthly basis

and to the Audit & Compliance

Committee at each of their

meetings throughout the year.

The Group CEO is tasked with

overseeing sustainability related

issues, ensuring they are integrated

into the Group’s strategy, risk

management and business plans.

The CEO, supported by the Board’s

executive directors also oversees

sustainability efforts across our five

operating divisions, with key issues

reported to the Board bi-monthly

via our internal reporting structures.

The Chief Sustainability, Digital and

Marketing Officer reports directly

to the CEO and leads the Planet

Passionate programme, providing

periodic updates to the Board on

environmental initiatives. In 2023,

the Group launched the People

Passionate programme, led by the

Group Head of Leadership and

Development. This programme

focuses on social sustainability,

including employee development

and well-being and is supported by

Human Resource representatives

across the Group.

The Board, CEO, executive directors

and divisional management ensure

that appropriate skills and expertise

are in place to oversee sustainability,

either through direct experience

or external support and promote

the ongoing development of

sustainability expertise across

the Group. Following Linda Hickey’s

retirement from the Board, Éimear

Moloney will be appointed as

workforce engagement iNED.

Additionally, following the Annual

General Meeting, Eavan Saunders

will be appointed as the CSR

Engagement iNED, reinforcing the

Board’s commitment to strong

governance practices in addressing

material sustainability issues.

The Board is composed of four

executive members and seven

non-executive members. Further

information on the Board’s

composition, skills and experience

and responsibilities is incorporated

by reference in The Board section of

this Annual Report.

For details on how the Board and

the Remuneration Committee

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162

Kingspan Group plc

163

oversee sustainability related

targets, including their integration

into remuneration policies, please

refer to section GOV-3 of this

Statement.

GOV-2 – Information

provided to and

sustainability

matters addressed

by the undertaking’s

administrative,

management and

supervisory bodies

The Board, CEO and executive

directors are informed about

sustainability matters through

our internal reporting structures.

These structures allow oversight of

sustainability related IROs across

the Group’s operating divisions. This

process includes reporting material

issues to the Board, with updates

on CSRD compliance provided at

each of the four Audit & Compliance

Committee meetings during the

year ended 31 December 2024.

Divisional management teams must

assess sustainability progress and

raise material IROs for escalation

via our structured internal reporting

processes, which include monthly

divisional management meetings.

The Chief Sustainability, Digital

and Marketing Officer provides

periodic updates to the Board on the

progress of the Planet Passionate

programme. The Board reviews

material sustainability topics,

including climate initiatives, resource

efficiency and employee wellbeing,

ensuring that these topics, as

outlined in ESRS 2 SBM-3 of the

Statement detailing the Group’s

material IROs, are incorporated

into the decision-making processes

across the Group.

The Board also considers

sustainability IROs when overseeing

the Group’s strategy and approving

major transactions. The Board

evaluates relevant factors including

potential fit with our sustainability

goals, opportunities to leverage

synergies and learnings and also

balancing short-term risks to our

sustainability journey against longer-

term success factors.

GOV-3 – Integration of

sustainability related

performance in incentive

schemes

The remuneration principles and

overall remuneration of the Group’s

executive directors are outlined in

the Report of the Remuneration

Committee section within this

Annual Report.

The Group offers both short-term

and long-term incentive schemes for

members of management linked to

sustainability related performance.

This demonstrates the Group’s

commitment to achieving its

sustainability strategy.

» Short-term incentives:

These include an annual bonus

based on the Group’s financial

performance and the customer

performance indicator (Net

Promoter Score). A portion

of the Net Promoter Score

(NPS) is directly tied to the

Group’s perceived sustainability

performance, reflecting key

ESG elements. This includes

factors such as customer trust

in our sustainable practices

and the broader impact of our

ESG initiatives on customer

perception. By linking NPS

to sustainability related

performance, the Group

ensures that customer focused

sustainability outcomes are

meaningfully integrated

into its incentive schemes.

While NPS accounts for 10% of

the base salary component, this

represents 6.7% of the

total maximum bonus

opportunity. Note that from

2025, a new health & safety

metric will also be included

as part of the annual bonus

performance targets.

» Long-term incentive plan

(LTIP): These include specific

sustainability related targets,

which account for 10% of the

vesting criteria applicable to

the annual performance share

plan award (increasing to 15%

for 2025 awards). These targets

focus on nine of the Group’s

Planet Passionate environmental

objectives, such as reducing GHG

emissions, increasing renewable

energy use and rainwater

harvesting. These objectives

directly contribute to the Group’s

overall climate strategy and

performance is assessed against

these targets, which align with

our GHG emission reduction

targets under E1-4 – Targets.

The Board and the Remuneration

Committee review sustainability

linked incentives annually to ensure

they align with the Group’s evolving

ESG priorities and long-term

strategy.

For further information on the

specific sustainability related targets

included within the performance

share plan, please see the Report of

the Remuneration Committee within

this Annual Report.

GOV-4 – Statement on due

diligence

The table below maps where in

our Statement we outline our due

diligence process, including the key

aspects and steps we follow.

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164

Kingspan Group plc

GOV-5 – Risk

management and

internal controls over

sustainability reporting

The Group’s risk management

and internal control system for

sustainability reporting is an

important component of the

Group’s operational and strategic

framework. Risk management is

integrated across the divisions, each

business is responsible for identifying

and managing sustainability related

risks, while ensuring alignment with

the Group’s overall sustainability

strategy. This localised approach

enables a tailored response to

risks that arise at various levels of

the organisation, ensuring they

are addressed effectively and

incorporated into decision making

processes under the oversight of

divisional senior management,

executive directors and the Audit &

Compliance Committee.

Sustainability risks are identified

through a multi-disciplinary

approach including, but not limited

to, divisional management monthly

meetings with executive directors.

The cross-functional management

teams assess and escalate risks,

starting at the business unit

level, ensuring comprehensive

review across all divisions along

with appropriate escalation

in conjunction with divisional

management. Additionally, an

annual risk review is conducted

by the Group Internal Audit &

Compliance function. This includes

an analysis of sustainability related

risks. The findings are submitted

to the Audit & Compliance

Committee and these risks are

a key component of the annual

strategic review presented to senior

management.

Our assessments cover risks across

the entire value chain, including

those related to suppliers and

operations. Risks are prioritised

based on their potential financial

and strategic impact, ensuring

that the material risks receive

appropriate attention.

The Group’s material risks are

detailed within the corresponding

topical sections of this Statement.

To ensure the completeness and

integrity of sustainability related

data, the Group has established

internal validation and reporting

processes across its divisions. These

controls include standardised

reporting procedures, cross-

functional data reviews and

oversight mechanisms to mitigate

the risk of estimation errors and

data gaps.

Findings from our sustainability risk

assessments are integrated into the

Group’s core functions. Operational

adjustments are made where

necessary to address identified

risks and ensure alignment with

the Group’s sustainability goals.

Additionally, these findings feed

into the Group’s broader strategic

planning process, ensuring that

sustainability considerations are

factored into both medium and

long-term business decisions.

Periodic reporting of key

sustainability risk findings to the

Audit & Compliance Committee

supports ongoing monitoring and

governance, ensuring transparency

and accountability in sustainability

disclosures.

Additionally, Planet Passionate data

is collated and reviewed at the Group

level by the Group Sustainability

team and is also subject to review

by Internal Audit to ensure accuracy,

reliability and alignment with

reporting requirements.

SBM-1 – Strategy, business

model and value chain

The Group’s mission is to

accelerate a net zero emissions

built environment with people

and the planet at its heart. We

aim to achieve this through four

strategic pillars: Innovation, Planet

Passionate, Completing the Envelope

and Globalisation. Our business

model and strategic pillars enable

the ongoing transition to high

performance building envelopes,

replacing outdated and inefficient

construction methods.

The Group’s five key operating

segments offer a suite of

complementary building envelope

solutions for both the new-build and

refurbishment construction markets.

With 273 manufacturing sites, the

Group sources key raw materials

such as metals, chemicals, mineral

fibre and wood from supply chain

partners. To secure and develop

these inputs, the Group works with

Further information may be found here:

Core elements of due diligence Section in the

Statement

Page

a) Embedding due diligence in governance, strategy and business model General 165

b) Engaging with affected stakeholders in all key steps of the due diligence General 165

c) Identifying and assessing adverse impacts Environmental /

Social

197, 211, 215

d) Taking actions to address those adverse impacts Environmental /

Social

188, 222

e) Tracking the effectiveness of these efforts and communicating Social 222

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164

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165

key suppliers to identify short and

medium term solutions that reduce

the environmental impacts of our

key products while maintaining their

high performance. Procuring lower

embodied carbon raw materials is

a key part of our strategy, as it will

enable us to offer lower embodied

carbon products to our customers

and contribute to the reduction of

our scope 3 GHG emissions.

The Group’s core product

categories, insulated panels,

insulation boards, roofing and

waterproofing solutions, raised

access flooring, data centre airflow

systems and daylighting and water

management solutions are widely

used across sectors such as retail,

infrastructure, manufacturing and

residential. Through the continuous

development of innovative and

proprietary technology, the Group

has built a portfolio of products

that deliver value across key

metrics. Critically, the differentiated

thermal performance of the Group’s

insulation solutions enables design

teams, architects and ultimately our

customers to play a role in tackling

climate change by reducing energy

consumption and GHG emissions.

These solutions provide recognised

benefits for stakeholders.

The Group distributes its products

through a combination of direct

sales and distribution channels,

primarily targeting the new-build,

commercial and industrial sectors.

Upstream, the Group collaborates

with key suppliers to source key raw

materials, working with partners

to understand and benchmark

their sustainability performance.

Downstream, the Group fosters

strong relationships with a range

of stakeholders including but not

limited to contractors, architects,

developers, engineers, building

designers, building owners, facilities

managers and local authorities to

deliver high-performance building

envelope solutions across a wide

range of applications. For further

details on our global reach and

solutions, please refer to the Our

Business Model and Strategy section

of this Annual Report.

The total headcount for the Group

and the headcount of countries

with greater than 10% of the total

headcount are reported in section

S1-6 of the Statement. For total

revenue breakdown by the Group’s

operating segments please refer to

Note 2 of the Financial Statements.

Where applicable and material,

none of our products or services

are banned in any markets when

installed correctly in systems that

comply with building regulations. We

actively stay ahead of regional and

local regulatory changes to ensure

compliance and there is no evidence

of non-compliance.

SBM-2 – Interests and

views of stakeholders

As a global leader in building

envelope solutions, the Group

engages with a diverse range of

stakeholders at a local, regional

and global scale. The Group defines

stakeholders as individuals or groups

whose interests are affected or could

be affected by our activities and

products.

Key stakeholder groups include:

» Employees;

» Shareholders/Investors;

» Financial institutions;

» Suppliers;

» Customers and end-users;

» Regulatory bodies/government

agencies/policymakers;

» Industry associations/

professional bodies; and

» Community organisations/Non-

governmental organisations

(NGOs).

We engage with key stakeholder

groups through various methods,

including direct meetings, surveys,

industry forums and participation in

working groups. The purpose of these

engagements varies depending on

the specific circumstances, but a

common theme is understanding

their views, needs and expectations.

We recognise that collaboration

with our stakeholders is crucial for

achieving our business objectives,

fostering growth and contributing

to sustainable development.

Maintaining an open dialogue allows

us to build strong relationships

across our value chain, within local

communities and within the broader

construction industry.

Stakeholder engagement is a

critical component of our ongoing

due diligence and DMA processes,

informing both our risk management

approach and the development of

collaborative projects. Stakeholder

feedback and insights have been

incorporated into our decision

making process, especially within

the context of our due diligence and

DMA, as detailed in section IRO-1 of

this Statement.

The feedback and insights gained

from these engagements play a key

role in shaping our business model

and strategy. Stakeholder input

directly influences decisions related

to key sustainability initiatives,

resource efficiency measures and

employee wellbeing. Additionally,

these insights help identify potential

risks and opportunities, which guide

the Group’s long-term strategy

for growth and sustainability. This

ensures that our business model

remains adaptive to evolving

stakeholder expectations and market

dynamics.

SBM-3 – Material impacts,

risks and opportunities

and their interaction with

strategy and business

model

The table below presents the

Group’s analysis of the material

IROs that have been identified

across the relevant ESRS topics.

This is based on the Group’s DMA.

Detailed information on specific

IROs and the actions taken to

address them can be found in the

corresponding topical ESRS sections

of this report. The DMA process is

further explained in section IRO-1.

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166

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IRO-1 – Description of the

process to identify and

assess material impacts,

risks and opportunities

The Group completed a DMA which

was carried out in collaboration

with both internal and external

stakeholders. The process involved

the identification of key IROs across

our value chain. This assessment

spanned short, medium and long-

term time horizons, evaluating

both impact materiality, the

effects of the Group’s activities on

society and the environment and

financial materiality, examining how

sustainability factors could influence

the Group’s financial performance.

The Group’s DMA methodology

aligns with CSRD and ESRS

requirements. This process was

supported by third-party experts

and included a detailed, multi-step

approach:

1. Scoping

The scope of the assessment

included, but was not limited

to, a review of the Group’s

operational segments,

encompassing upstream

and downstream activities,

geographical reach and key

suppliers. Internal business

knowledge and external

expertise was utilised to ensure

an evaluation of impacts.

2. Identification

A list of actual and potential

IROs was developed through

desktop research, peer

benchmarking, internal

consultations with subject

matter experts and input

from external experts. This

assessment considered both the

actual and potential impacts of

the Group’s business on society

and the environment (impact

materiality), as well as how

sustainability matters could

potentially affect the Group’s

financial performance and

position (financial materiality).

Additionally, publicly available

tools were used to assess

environmental risks. Each

identified IRO was mapped to

ESRS topical standards.

For impacts, the Group

assessed materiality based

on criteria of severity and

likelihood, with thresholds set

accordingly. This assessment

considers activities, business

relationships and geographies

where adverse impacts may be

more likely, factoring in resource

dependencies, regulatory

variations and market conditions

that influence risk exposure.

Severity is determined by the

scale, scope and irremediable

nature of negative impacts, as

well as the scale and scope of

positive impacts. In contrast,

the financial materiality of risks

and opportunities is assessed

using thresholds based on the

anticipated financial effects and

likelihood of occurrence. This

dual approach ensures that both

the societal and environmental

impacts, as well as financial

risks and opportunities, are

appropriately evaluated

and prioritised for reporting

purposes. This structured rating

system is aligned with ESRS

guidelines.

3. Engagement

The Group engaged with over

50 stakeholders from a range

of groups, including executives,

customers, employees, NGOs

and regulatory bodies, through

surveys and interviews.

Also, input from NGOs and

community organisations

served as a valuable proxy to

capture societal perspectives.

This broad engagement ensured

the validation of identified

sustainability matters from

both impact and financial

perspectives, helping to prioritise

IROs based on the significance

of their potential societal and

financial impacts.

4. Consolidation

Feedback from stakeholders

was analysed and integrated

into the final DMA. The results

were validated by the Group’s

ESRS topic Impacts Risks Opportunities

Actual Potential

E1 – Climate change

E2 – Pollution

E3 – Water and marine resources

E4 – Biodiversity and ecosystems

E5 – Resource use and circular economy

S1 – Own Workforce

S2 – Workers in the value chain

S3 – Affected communities

S4 – Consumers and end users

G1 – Business conduct

Materiality Thresholds:

Material Not Material

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167

management team to ensure

alignment with the Group’s

strategic priorities. The DMA

process remained flexible,

allowing for recalibration and

refinement where necessary

to reflect additional insights,

emerging issues or regulatory

guidance.

5. Reporting

The outcome of the DMA

identified material IROs across

all ten ESRS topics, as detailed

in the topical ESRS standards,

forming the basis for the Group’s

sustainability reporting. The

findings were aligned with both

impact and financial materiality,

ensuring that the Group’s

sustainability efforts focus on

the most significant societal,

environmental and business risks

and opportunities.

The assessment serves as a

foundational tool for the Group’s

sustainability reporting. The

dynamic nature of this process

allows for continuous refinement

and adjustment as new risks,

opportunities and stakeholder

expectations emerge. The Group

monitors this assessment on an

ongoing basis, with the findings

integrated into the Group’s overall

risk management and decision

making processes.

The following sections describe the

process in more detail, illustrating

how it was implemented for each of

the ESRS Environmental topics.

Topic-Specific Assessment:

E1 – Climate change

To assess our impacts on climate

change, in particular in our GHG

emissions we have a Group-

wide methodology for collecting,

collating, analysing and reporting

our scope 1, 2 and 3 GHG emissions.

These emissions, which are available

in section E1-6, are the basis of our

climate change impact assessment.

Climate change scenario analysis

enables improvement to our

strategic thinking and planning,

which refines the resilience of our

strategy. A resilient strategy allows

the Group to be more flexible,

adaptable to disruptions and remain

effective under many different

circumstances and conditions.

An integral part of this process

is to identify the multifaceted

implications of climate change

scenarios.

To achieve this, we use a two-

pronged approach:

1) Quantitative analysis: In 2024,

we strengthened our approach

by working with external experts

to better understand the

implications of a wider spectrum

of physical and transition

climate change risks across

different scenarios and time

horizons. The tool used is built

on the latest climate change

science with over 1,000 impact

functions based on literature.

Both our own operations and our

key suppliers (which is the most

material part of our upstream

value chain) were included in the

analysis.

a. Physical risks: We examined

eight physical hazards

(extreme temperature,

drought, wildfire, coastal

flooding, fluvial flooding,

pluvial flooding, tropical

cyclone and water stress)

across eight decades (2020

to 2100) and four climate

change scenarios, across a

mix of Shared Socioeconomic

Pathways (SSPs) and

Representative Concentration

Pathways (RCP). These

included, 1. RCP 8.5-SSP5, 2.

RCP 7.0-SSP3, 3. RCP 4.5-

SSP2 and 4. RCP 2.6-SSP1.

The results of the physical

risk analysis showed exposure

to minimal impacts due to

temperature extremes and

water stress in the higher

climate change RCP-SSP

scenarios starting from the

2040s and rising steadily

until the 2090s. However, the

financial impact of physical

risks was not material to the

Group’s operations in the

lower RCP-SSP scenarios.

b. Transition risks: We

examined five transition

risk types (carbon pricing,

litigation, new technology,

reputational damage and

market) across eight decades

(2020 to 2100) and four

climate change scenarios (1.

RCP 8.5-SSP5, 2. RCP 7.0-

SSP3, 3. RCP 4.5-SSP2 and 4.

RCP 2.6-SSP1).

The results of the transition

risk analysis showed a

number of items including,

but not limited to, exposure

to litigation, new technology,

reputational damage and

market risks were not

material to the Group’s

operations in all the scenarios

that we examined. The

exposure to the financial

impact of carbon pricing was

not found to be material in

medium, medium high and

high scenarios. However, we

found that the exposure to

carbon pricing increased only

in the 2090s in the low (RCP

2.6-SSP1) scenario.

2) Qualitative analysis: For

several of our risks and

opportunities, we were

faced with the constraints

and limitations of publicly

available scenarios. Specifically,

quantitative scenario data for

customer demand/ market

fluctuations for insulation

products are not yet available,

so we studied and used a mix

of SSPs and related Integrated

Assessment Models (IAMs) to

construct a relevant narrative.

This approach allowed us

to better understand broad

socio-economic trends that

could shape future society and

gain access to a wider array

of quantitative information.

We used SSP1 (a low challenge

to mitigation and adaptation

pathway), SSP2 (a medium

challenge to mitigation and

adaptation pathway), SSP5 (a

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Kingspan Group plc

high challenge to mitigation, low

challenge to adaptation) and

three RCP targets: 1.9, 3.4 and

6.0 w/m2 targets (1.3 – 1.4, 2.1 –

2.3 and 3.2-3.3 Co respectively).

During the year, the Group updated

the resilience analysis of its strategy

and business model. This update

incorporated both quantitative

and qualitative analyses, as well

as internal expertise in the building

materials industry and was. Based

on these findings and our assertion

that climate change risks and

opportunities are already integrated

into our strategy, products and

business model, we concluded that

our business model and strategy

are resilient across all SSPs. This

includes the worst-case scenario

of SSP3, which assumes lower

demand for sustainable products,

though insulating buildings will be

mandated in all scenarios. We will

continue to refine our strategic

planning as more detailed tools

on future demand for building

and insulation products become

available. While certain critical

climate related assumptions

used in the Financial Statements

are largely compatible with the

scenarios detailed above, the

impairment tests are broader in

scope, which includes additional

factors such as macro-economic

conditions and market dynamics.

Additionally, the Group did not

identify any assets or business

activities that are incompatible with

or require significant adjustments

to align with the transition to a

climate-neutral economy (see our

disclosure on locked-in emissions

in the Climate change section and

our EU Taxonomy alignment in the

Environmental information section

below).

Topic-Specific Assessment:

E2 – Pollution

The Group comprises several

distinct manufacturing processes,

with a variety of inputs, outputs

and scale, which makes the

process of assessing our pollution-

related IROs at the Group level

complex and challenging. To

tackle this challenge, we utilised

our internal expertise across the

Group’s divisions and engaged a

third-party expert in this field. We

also considered and applied the

established knowledge on this area,

as presented in industry standards

and publications and examined

data including, but not limited

to, raw materials, direct pollutant

measurements and production

volumes. Due to the complexity

and broad coverage of the topic

of pollution and its sub-topics, we

are committed to reassess and

refine our list of material IROs in the

following reporting cycles.

Topic-Specific Assessment:

E3 – Water and marine resources

To identify its water-related IROs,

the Group screened its assets

and activities using various tools,

including water withdrawal and

consumption data collected

across the Group and an external

tool (WRI’s Aqueduct) to help to

identify and evaluate water risks

around the world. We evaluated

our dependencies on water by

conducting a detailed analysis

of our processes to understand

for which of them water is an

integral input. We used data on

water withdrawals as a proxy for

water dependencies and water

consumption as a proxy for water

impacts. In summary, due to

the nature and variety of our

operations and processes, we

do not believe our impacts and

dependencies are material at the

Group level. Similarly, given the

large number and geographical

spread of our facilities, we

concluded that water is not a

material risk at the Group level.

Nevertheless, we will continue to

monitor the situation and if we

identify a priority site (based on

either impacts or dependencies on

water) we will examine developing

site specific, water action plans.

For our upstream value chain, we

used publicly available sectoral

water assessment tools and

leveraged our internal expertise

on the topic. Based on this initial

analysis, we concluded that we do

have material impacts on water

due to the nature of operations

of our key suppliers (i.e. steel

and chemicals). As a next step

we envisage conducting a more

detailed assessment of our key

suppliers related to water and

ecosystem services. The results

will help us to refine our impacts

and dependencies materiality

assessment and aid our teams in

deciding if specific actions need to

be taken to mitigate these impacts.

Topic-Specific Assessment:

E4 – Biodiversity and ecosystems

Biodiversity is location specific; its

state and importance can vary

greatly depending on location. The

Group is a global manufacturer with

273 manufacturing, assembly and

R&D sites and a vast and complex

value chain. To understand, assess

and manage biodiversity related

IROs, we used location specific

data. For our first biodiversity

IRO assessment, we used WWF’s

Biodiversity Risk Filter (BRF) tool

that allowed us to combine location

specific data on the integrity of

biodiversity with corporate data

(e.g. site importance and industry

classification) to gain an initial

understanding of our IROs and

assess the need for prioritising

location(s) for action. BRF covers

both physical and reputational risks

(transition and systemic were not

included), with eight underlying

risk categories and a plethora of

indicators. We used the results of

the analysis to conduct our first,

high-level, biodiversity-specific

materiality analysis.

Based on this initial analysis during

the year, which utilised both the

BRF tool and desktop research, we

concluded that we do not have

sites in biodiversity sensitive areas.

In contrast, we have sites located

near these area types, but the

materiality of their impacts will

need to be investigated further.

Topic-Specific Assessment:

E5 – Resource use and

circular economy

As a global leader in advanced

insulation and building envelope

solutions, the Group recognises

circularity as a critical issue and aims

to help accelerate the transition to

a circular economy. Our material

Annual Report & Financial Statements 2024

168

Kingspan Group plc

169

IROs related to resource use and

circular economy have been

identified via the DMA. As part of

the assessment, we screened our

activities and key manufacturing

processes to understand related

IROs. This screening process included

reference to available data on our

material inflows and outflows,

market trends and regulatory drivers.

This assessment was completed by

the Group Sustainability team who

engaged with divisional sustainability

teams and procurement leads for

relevant input and utilised internal

expertise on these topics to assist

in the determination of double

materiality. For the assessment of

the IROs related to our material

inflows, 2023 raw material volumes

and spend data was reviewed. This

dataset is collated from divisional

procurement and finance teams

during and at the end of the year,

respectively. Material outflows,

products and waste were assessed.

Our waste data is collected at site

level, monthly, in our environmental

data collection system. Assessing

product alignment was completed

through review of product literature

including, but not limited to,

environmental product declarations

and consultations with internal

stakeholders.

IRO-2 – Disclosure

requirements in

ESRS covered by

the undertaking’s

sustainability statement

The Group’s DMA process, as defined

in section IRO-1, serves as the

foundation for determining material

information to be included regarding

the relevant IROs.

The tables in Appendix 1 list all the

ESRS disclosure requirements in

ESRS 2 and the 10 topical standards

that are material to the Group,

guiding the preparation of our

Statement. These tables also

indicate where information related

to specific disclosure requirements,

located outside the Statement, is

incorporated by reference to sections

such as Our Business Model and

Strategy, Financial Statements, or

the Report of the Remuneration

Committee within this Annual

Report.

The table in Appendix 4 includes all

the data points derived from other

EU legislation, as listed in ESRS 2

Appendix B, indicating where these

data points can be found in our

report and which are assessed as

not relevant.

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170

Kingspan Group plc

CSRD SUSTAINABILITY

STATEMENT

ENVIRONMENTAL

INFORMATION

Pascal Probst

Headquarters

Burgberg, Germany

Insulated Panels

JI SF Wall 1000 panel

Annual Report & Financial Statements 2024

170

Kingspan Group plc

171

EU TAXONOMY

DISCLOSURE

General

Our mission is to accelerate a net

zero emissions built environment

with people and planet at its heart.

Our business model built around five

key operating divisions - Insulated

Panels, Insulation, Data Solutions,

Light, Air + Water and Roofing +

Waterproofing. These divisions

deliver integrated building envelope

solutions that enhance energy

efficiency and reduce GHG emissions

in both new-build and refurbishment

projects. By replacing outdated,

inefficient construction methods

with innovative, high-performance

solutions, we align with global

sustainability goals and contribute

to climate change mitigation. The

Group is reporting pursuant to Article

8 of Regulation (EU) 2020/852 on

the EU Taxonomy.

Eligible and Aligned Screening

Process

The Group applies a structured

screening process to assess

alignment with the EU Taxonomy

framework, referencing the Climate

Delegated Act (EU 2021/2139),

the Complementary Climate

Delegated Act (EU 2022/1214), the

Environmental Delegated Act (EU

2023/2486) and the amendments

to the Climate Delegated Act (EU

2023/2485).

To determine taxonomy-eligible

activities, we assessed our

economic activities across the

151 taxonomy-eligible activities

outlined in Annex I and II of the

Climate Delegated Act, identifying

those that contribute to one or

more of the six environmental

objectives. Our primary eligible

activity, ‘Manufacture of energy

efficiency equipment for buildings’

(CCM 3.5), was identified based

on its role in enhancing energy

efficiency and reducing carbon

emissions in the built environment.

To ensure compliance with the

Technical Screening Criteria (TSC),

we conducted a detailed assessment

of our aligned activities against

the substantial contribution

requirements set out in Annex I.

This included evaluating product

performance, energy efficiency

thresholds and alignment with

regulatory standards that contribute

to climate change mitigation.

Additionally, we assessed our

operations against Do No Significant

Harm (DNSH) criteria to confirm

that our activities do not adversely

impact other environmental

objectives. The assessment process

also included reviewing governance

and social safeguards to ensure

compliance with minimum

safeguards under Article 18 of the EU

Taxonomy Regulation.

Technical Screening

The Group primarily aligns with

Activity CCM 3.5 – Manufacture

of energy efficiency equipment

for buildings, under the Climate

Change Mitigation objective.

Our insulation and building

envelope solutions enable

significant reductions in energy

consumption and GHG emissions,

supporting the transition to a

low-carbon future. In line with

Regulation (EU) 2020/852,

Article 3, an economic activity

qualifies as taxonomy-aligned if

it substantially contributes to one

or more environmental objectives,

does no significant harm to the

remaining objectives and meets

minimum safeguards for social and

governance standards. The Group’s

taxonomy-aligned activities have

been assessed against Annex I of

the Climate Delegated Act. We

note, certain acquisitions are going

through the onboarding process in

relation to the technical screening

assessment.

Double counting

Reporting to one eligible activity

(CCM 3.5) and excluding

intercompany sales ensures double

counting is avoided from a revenue

KPI perspective. The opex KPI

relates to day-to-day expenditure

and the capex KPI relates to larger

expansion/improvement projects

and/or capacity additions ensuring

double counting is avoided.

Taxonomy-Eligible and Aligned

Turnover

Taxonomy-aligned and/or eligible

turnover is derived from Activity

CCM 3.5 – Manufacture of energy

efficiency equipment for buildings

and from a reporting basis is

consistent with the Group’s revenue

recognition policy outlined in Note

1 to the financial statements. The

denominator reflects total Group

revenue. The numerator represents

the total eligible and aligned

revenue activities derived from the

sale of energy efficient building

envelope solutions.

Taxonomy-Eligible and Aligned

Capex

The numerator for the taxonomy-

aligned and/or eligible capex

KPI, includes expenditure on the

expansion, establishment or

improvement of taxonomy-eligible/

aligned assets. The denominator

consists of all additions to tangible

and intangible assets before

depreciation, amortisation and

remeasurements, excluding fair

value changes. This includes costs

accounted for under relevant

IFRS standards, including IAS 16

Property, Plant & Equipment,

IAS 38 Intangible Assets, IAS

40 Investment Property, IAS 41

Agriculture and IFRS 16 Leases.

There are no capex plans to

specifically extend taxonomy

alignment.

Taxonomy-Eligible and Aligned

Opex

The opex KPI denominator is

defined as direct non-capitalised

costs relating to research and

development, renovation measures,

short-term leases, maintenance

and other direct expenditures

relating to the day-to-day

servicing of the Group’s assets of

property, plant and equipment

that are necessary to ensure the

continued and effective use of

such assets. The opex numerator

includes expenditure within the

above defined boundary that

supports eligible and/or aligned

revenue under Activity CCM 3.5 –

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Manufacture of energy efficiency

equipment for buildings.

Do No Significant Harm (DNSH)

Climate change adaptation

To identify physical climate risks that

might be material to our activities,

we performed a physical climate

risk assessment. The assessment

was performed using a third-party

platform that supports companies to

identify and measure climate risk. It

models eight different hazards over

the next 80 years for several emission

scenarios. Based on the results of the

analysis and the materiality of the

identified physical climate risks, we

concluded that the implementation

of adaptation solutions was not

warranted for our activities. Hence,

we have not adversely affected the

adaptation efforts of other people,

of nature, of cultural heritage,

of assets or of other economics

activities via adaptation solutions

or plans.

Sustainable use and protection

of water and marine resources

Due to the nature of our activities,

including the variance in both size

and location of our operations, our

impacts and dependency on water

vary across our Group. For example,

the majority of our sites withdraw

less than 10,000 m

of water per

year (categorised as very low) and

are therefore not water intensive.

As part of our DMA, we identified

and analysed environmental

degradation risks related to both

water stress and water quality

using third-party tools and internal

expertise. Regarding water stress,

29% of our sites (manufacturing,

assembly and R&D) are located

in areas of high or extremely

high-water stress. These facilities

represent 9% of our water

withdrawals.

We assessed water quality for sites

with water withdrawals exceeding

10,000 m

per year as we believe

that there is a clear correlation

between water withdrawal volumes

and impacts/risks related to water

quality. The results showed that

none of the examined sites have

high (or very high) operational risks

related to water quality.

Based on the above and our

overall water profile, we did not

identify any priority sites for the

implementation of water use and

protection management plans

during the reporting year.

Pollution prevention and control

The Group has collaborated with

a third-party with expertise in the

chemical industry and, based on

this assessment, it is determined

that the Group meets the current

criteria for DNSH as at the end of

2024. Based on this assessment,

the Group’s manufacturing

activities do not use or produce any

substances listed in the Climate

Delegated Act (EU 2021/2139),

under the points (a) to (d) of

the Appendix C: Generic Criteria

for DNSH to pollution prevention

and control regarding use and

presence of chemicals. Regarding

REACH (Registration, Evaluation,

Authorisation and Restriction of

Chemicals) Regulation, substances

used by the Group are either not

restricted by EC 1907/2006 Annex

XVII or are used in full compliance

with the conditions specified in

that Annex.

This applies to both formaldehyde

and methylene diphenyl

diisocyanate (MDI). Formaldehyde

is classified as CMR (Carcinogenic,

Mutagenic, or Reprotoxic) and

its emissions are in the process

of being restricted in consumer

products, whereas industrial

products are covered by worker

protection rules. There are exposure

limits for workers set at an EU level.

Formaldehyde is a building block for

phenolic resins which are purchased

for use in the manufacture of

phenolic foam insulation. In

the final product there is very

little residual formaldehyde left

and hazard thresholds are not

knowingly breached. Similarly,

MDI is used as a building block

for the polyurethane (PU) and

polyisocyanurate (PIR) used in

the manufacture of PU/PIR foam

insulation. Again, the residual

presence of MDI is minimal,

ensuring that the requirements of

Appendix C points (e) and (f) are

satisfied in that case as well.

The Group’s products meet the

requirements of EC 1907/2006

Annex XVII with respect to

microplastics, since they are

either used in industrial settings

or incapsulated in final products

and therefore meet the stated

exemption requirements.

Transition to a circular economy

The Group has assessed

information related to the use of

secondary recycled raw materials

and reused components in the

Group’s manufactured products by

reviewing and reporting data on

key raw materials collected at the

group level and through divisional

sustainability engagement

initiatives. The Group has also set

a new target, under the Planet

Passionate programme, to increase

the use of renewable and recycled

raw materials in the manufacturing

of its products.

The Group continues to assess

and increase adoption of circular

design best practices through

multi-disciplinary collaboration and

innovation. This includes supporting

product design for high durability,

recyclability, ease of disassembly

and adaptability by working in

collaboration with divisional teams.

The majority of the Group’s core

product portfolio is designed to be

highly durable and long lasting.

The Group has also undertaken

multiple initiatives to evaluate

and improve waste management

systems which have helped identify

opportunities for recycling of our

waste and highlight areas for

improvement in our manufacturing

processes. We continue to divert

waste from landfill, driven by

our zero waste to landfill by

2030 target, which has been a

fundamental pillar of our Planet

Passionate programme since 2020.

The Group has begun the

assessment of the availability

of information on substances of

concern throughout the lifecycle

Annual Report & Financial Statements 2024

172

Kingspan Group plc

173

of our manufactured products by

collaborating with a third-party

with expertise in the chemical

industry. Based on this assessment,

it is determined that the Group’s

manufacturing activities do not

use or produce any substances

listed in the regulation under the

points (a) to (d) of the Appendix

C: Generic Criteria for DNSH to

pollution prevention and control

regarding use and presence of

chemicals. Regarding REACH

regulation, all substances used by

the Group are either not restricted

under EC 1907/2006 Annex XVII or

are used in full compliance with the

specified conditions in that Annex.

For more information see Pollution

prevention and control.

Protection and restoration of

biodiversity and ecosystems

Directive 2011/92/EU outlines (in

Annexes I and II) project categories

that are likely to have a significant

effect on the environment. Projects

listed in Annex I are those that

have significant effects on the

environment, whereas projects

listed in Annex II do not necessarily

have significant effects on the

environment in every case. The

Group does not own or operate

projects (i.e. sites) listed in Annex

I. Only four of the Group’s sites

(1.5%) are listed in Annex II. For

the latter, either an Environmental

Impact Assessment (EIA) or

screening has been completed and

the required mitigation measures

– where applicable – for protecting

the environment has been

implemented.

Due to the location of our

activities, the nature of our

impacts and our proactive

management approach, we

maintain that we do not have

any significant effects on the

conservation objectives of

biodiversity-sensitive areas.

Minimum Safeguards

The Group ensures compliance with

the Minimum Safeguards under the

EU Taxonomy by aligning its policies

and practices with key international

frameworks, including the OECD

Guidelines for Multinational

Enterprises, the UN Guiding

Principles on Business and Human

Rights, the ILO Declaration on

Fundamental Principles and Rights

at Work and the International Bill

of Human Rights.

Our approach focuses on nine

key areas, which include, Human

Rights Policies, Human Rights

Due Diligence, Addressing Human

Rights Impacts and Tracking

Effectiveness, Human Rights

Communications, Grievance

Mechanisms, Consumer Interests,

Anti-Corruption, Fair Competition

and Taxation. Through our Human

Rights Policy and Supplier Human

Rights and Environmental Due

Diligence (SHREDD) Policy, we

uphold human rights across our

operations and supply chains,

addressing forced labour, non-

discrimination and supporting

collective bargaining rights.

We also maintain a zero-tolerance

approach to fraud, bribery and

corruption through our Anti-Fraud,

Bribery & Corruption Policy. The

Group Code of Conduct reinforces

this commitment by including a

confidential independent hotline

policy, supported by a secure and

anonymous channel to report

concerns. The SHREDD process

assesses supplier risks, implements

corrective action plans and

ensures ongoing alignment with

international standards.

Governance and transparency

underpin our approach, with

confidential reporting mechanisms

and annual reviews to monitor

and improve compliance. By

embedding robust policies and

fostering accountability, the Group

demonstrates its commitment to

human rights, labour standards

and ethical governance across its

value chain.

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Revenue

Financial year 2024 Substantial contribution criteria DNSH criteria

Economic

Activities

Codes

Absolute turnover (€m)

Proportion of turnover (%)

Climate change mitigation (%)

Climate change adaptation (%)

Water and marine resources (%)

Circular economy (%)

Pollution (%)

Biodiversity and ecosystems (%)

Climate change mitigation (Y/N)

Climate change adaptation (Y/N)

Water and marine resources (Y/N)

Circular economy (Y/N)

Pollution (Y/N)

Biodiversity and ecosystems (Y/N)

Minimum safeguards (Y/N)

Taxonomy-aligned proportion of turnover 2024 (%)

Taxonomy-aligned proportion of turnover 2023 (%)

Category Enabling activity (E)

Category Transitional activity (T)

A. Taxonomy-Eligible Activities

A.1. Environmentally Sustainable Activities (taxonomy-aligned)

Manufacture of

energy efficiency

equipment for

buildings

CCM

3.5

3,466 40% Y N N N N N Y Y Y Y Y Y Y 40% 42% E -

Turnover of

environmentally

sustainable

activities

(taxonomy-

aligned) (A.1)

3,466 40% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 40% 42%

Of which

enabling

3,466 40% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 40% 42% E

Of which

transitional

0 0% - - - - - - - - - -

A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)

EL;N/

EL;N/EL EL;N/EL EL;N/

EL;N/

% %

Manufacture of

energy efficiency

equipment for

buildings

CCM

3.5

1,674 20% EL N/EL N/EL N/EL N/EL N/EL 20% 16%

Turnover of

taxonomy-

eligible but not

environmentally

sustainable

activities (not

taxonomy-

aligned) (A.2)

1,674 20% 100% 0% 0% 0% 0% 0% 20% 16%

Turnover of

taxonomy-

eligible activities

(A1 + A.2)

5,140 60% 100% 0% 0% 0% 0% 0% 60% 58%

B. Taxonomy-non-eligible activities

Revenue of

Taxonomy-non-

eligible activities

3,468 40%

Total 8,608 100%

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174

Kingspan Group plc

175

Revenue

Financial year 2024 Substantial contribution criteria DNSH criteria

Economic

Activities

Codes

Absolute turnover (€m)

Proportion of turnover (%)

Climate change mitigation (%)

Climate change adaptation (%)

Water and marine resources (%)

Circular economy (%)

Pollution (%)

Biodiversity and ecosystems (%)

Climate change mitigation (Y/N)

Climate change adaptation (Y/N)

Water and marine resources (Y/N)

Circular economy (Y/N)

Pollution (Y/N)

Biodiversity and ecosystems (Y/N)

Minimum safeguards (Y/N)

Taxonomy-aligned proportion of turnover 2024 (%)

Taxonomy-aligned proportion of turnover 2023 (%)

Category Enabling activity (E)

Category Transitional activity (T)

A. Taxonomy-Eligible Activities

A.1. Environmentally Sustainable Activities (taxonomy-aligned)

Manufacture of

energy efficiency

equipment for

buildings

CCM

3.5

3,466 40% Y N N N N N Y Y Y Y Y Y Y 40% 42% E -

Turnover of

environmentally

sustainable

activities

(taxonomy-

aligned) (A.1)

3,466 40% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 40% 42%

Of which

enabling

3,466 40% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 40% 42% E

Of which

transitional

0 0% - - - - - - - - - -

A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)

EL;N/

EL;N/EL EL;N/EL EL;N/

EL;N/

% %

Manufacture of

energy efficiency

equipment for

buildings

CCM

3.5

1,674 20% EL N/EL N/EL N/EL N/EL N/EL 20% 16%

Turnover of

taxonomy-

eligible but not

environmentally

sustainable

activities (not

taxonomy-

aligned) (A.2)

1,674 20% 100% 0% 0% 0% 0% 0% 20% 16%

Turnover of

taxonomy-

eligible activities

(A1 + A.2)

5,140 60% 100% 0% 0% 0% 0% 0% 60% 58%

B. Taxonomy-non-eligible activities

Revenue of

Taxonomy-non-

eligible activities

3,468 40%

Total 8,608 100%

Capex

Financial year 2024 Substantial contribution criteria DNSH criteria

Economic

Activities

Codes

Absolute Capex (€m)

Proportion of Capex (%)

Climate change mitigation (%)

Climate change adaptation (%)

Water and marine resources (%)

Circular economy (%)

Pollution (%)

Biodiversity and ecosystems (%)

Climate change mitigation (Y/N)

Climate change adaptation (Y/N)

Water and marine resources (Y/N)

Circular economy (Y/N)

Pollution (Y/N)

Biodiversity and ecosystems (Y/N)

Minimum safeguards (Y/N)

Taxonomy-aligned proportion of Capex 2024 (%)

Taxonomy-aligned proportion of Capex 2023 (%)

Category Enabling activity (E)

Category Transitional activity (T)

A. Taxonomy-Eligible Activities

A.1. Environmentally Sustainable Activities (taxonomy-aligned)

Manufacture of

energy efficiency

equipment for

buildings

CCM

3.5

140 38% Y N N N N N Y Y Y Y Y Y Y 38% 39% E -

Capex of

environmentally

sustainable

activities

(taxonomy-

aligned) (A.1)

140 38% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 38% 39%

Of which

enabling

140 38% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 38% 39% E

Of which

transitional

0 0% - - - - - - - - - -

A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)

EL;N/

EL;N/EL EL;N/EL EL;N/

EL;N/

% %

Manufacture of

energy efficiency

equipment for

buildings

CCM

3.5

123 34% EL N/EL N/EL N/EL N/EL N/EL 34% 14%

Capex of

taxonomy-

eligible but not

environmentally

sustainable

activities (not

taxonomy-

aligned) (A.2)

123 34% 100% 0% 0% 0% 0% 0% 34% 14%

Capex of

taxonomy-

eligible activities

(A1 + A.2)

263 72% 100% 0% 0% 0% 0% 0% 72% 53%

B. Taxonomy-non-eligible activities

Capex of

Taxonomy-non-

eligible activities

104 28%

Total 366 100%

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Opex

Financial year 2024 Substantial contribution criteria DNSH criteria

Economic

Activities

Codes

Absolute Opex (€m)

Proportion of Opex (%)

Climate change mitigation (%)

Climate change adaptation (%)

Water and marine resources (%)

Circular economy (%)

Pollution (%)

Biodiversity and ecosystems (%)

Climate change mitigation (Y/N)

Climate change adaptation (Y/N)

Water and marine resources (Y/N)

Circular economy (Y/N)

Pollution (Y/N)

Biodiversity and ecosystems (Y/N)

Minimum safeguards (Y/N)

Taxonomy-aligned proportion of Opex 2024 (%)

Taxonomy-aligned proportion of Opex 2023 (%)

Category Enabling activity (E)

Category Transitional activity (T)

A. Taxonomy-Eligible Activities

A.1. Environmentally Sustainable Activities (taxonomy-aligned)

Manufacture of

energy efficiency

equipment for

buildings

CCM

3.5

565 41% Y N N N N N Y Y Y Y Y Y Y 41% 67% E -

Opex of

environmentally

sustainable

activities

(taxonomy-

aligned) (A.1)

565 41% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 41% 67%

Of which

enabling

565 41% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 41% 67% E

Of which

transitional

0 0% - - - - - - - - - -

A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)

EL;N/

EL;N/EL EL;N/EL EL;N/

EL;N/

% %

Manufacture of

energy efficiency

equipment for

buildings

CCM

3.5

136 10% EL N/EL N/EL N/EL N/EL N/EL 10% 6%

Opex of

taxonomy-

eligible but not

environmentally

sustainable

activities (not

taxonomy-

aligned) (A.2)

136 10% 100% 0% 0% 0% 0% 0% 10% 6%

Opex of

taxonomy-

eligible activities

(A1 + A.2)

701 51% 100% 0% 0% 0% 0% 0% 51% 73%

B. Taxonomy-non-eligible activities

Opex of

Taxonomy-non-

eligible activities

664 49%

Total 1,365 100%

Notes: EL; N/EL: “EL” denotes that the activity is taxonomy-eligible, meaning it falls under the EU Taxonomy’s defined economic

activities. “N/EL” indicates that the activity is not taxonomy-eligible, as it does not meet the eligibility criteria outlined in the regulation

for substantial contribution to environmental objectives.

Annual Report & Financial Statements 2024

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177

ESRS E1

- CLIMATE CHANGE

ESRS 2 – SBM-3

As climate change intensifies,

it presents an urgent and

multifaceted challenge. While

the Paris Agreement underscores

the pressing need for immediate

measures to limit global

temperature increase at 1.5°C

above pre-industrial levels (which

was surpassed for the first time

in 2024), the journey towards

achieving a net zero world will

not take the trajectory originally

anticipated. Buildings and

construction are responsible for

37%

of energy-related carbon

dioxide emissions globally,

a fact that highlights the

importance of the sector in the

transition to a net zero emission

pathway. We are uniquely

placed to help support the

decarbonisation of the building

sector via our extensive offering of

high-performance, energy saving

systems and solutions.

Through the DMA, we identified our

material IROs pertaining to climate

change, which are presented in

more detail in this section.

The Group’s business strategy

is built around the importance

of addressing climate change

through the built environment. The

Group’s product portfolio consists

of products which have a positive

impact on resource efficiency,

particularly in relation to in-use

energy and carbon saving benefits

(see impacts below). The embodied

carbon of our insulation products

is not material relative to their

estimated lifetime carbon savings.

While our insulation systems

enable significant energy and

carbon savings in the operation

of buildings, the Group recognises

the importance of working

with key suppliers on emission

reduction activities to reduce the

embodied carbon of our products

(see impacts below). We believe

it is imperative that we continue

to demonstrate leadership on

the climate change agenda. As

an industry leader, we take our

position on climate action very

seriously and have set ourselves

ambitious targets with respect

to our own GHG emissions (see

impacts below and disclosure E1-6

for how we assess and measure our

total GHG emissions). The results

of our use of scenario analysis to

assess the resilience of our business

model and strategy in relation to

climate change can be found in

section ESRS 2, IRO-1.

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Positive

impact – actual

Value chain

stage:

Downstream

Reduced

energy used

via insulation

products &

solutions

Consumers can reduce energy

usage and costs by better

insulating their buildings

(reducing usage) or through

installing other insulation

products. In this respect the

Group is indirectly contributing to

reduced energy usage and CO

emissions downstream.

» Product offering: The Group

offers market leading products,

particularly in the field of

building insulation. The Group’s

high-performance insulation

solutions help architects and

building owners design buildings

that consume less energy for

the long-term.

» Innovation strategy:

Decarbonisation of our product

portfolio is a key focus area

for innovation. We aim to

achieve this through two main

strategies: refining existing

products with lower carbon

alternatives and exploring

new bio-based materials and

solutions. Such innovations

ensure our products and

systems help our end users to

meet the need to reduce the

carbon footprint of the built

environment.

United Nations Environment Programme, & Yale Center for Ecosystems + Architecture (2023). Building Materials and the

Climate: Constructing a New Future .

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IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Negative

impact – actual

Value chain

stage: Own

operations

GHG from

operations

The Group is an industry leader in

manufacturing products which

help mitigate climate risk in the

construction sector. We take this

leadership position very seriously

and have set ourselves industry

leading targets with respect to

our direct carbon emissions. The

Group already has an extensive

environmental sustainability

programme, Planet Passionate,

which has set ambitious direct

renewable energy (60% by

2030) and GHG emissions

reduction targets. In 2024, the

Group achieved its 20% on-site

renewable energy generation

target. This programme serves us

well in mitigating the risk of an

increased cost of operations.

» Decarbonisation plan: The

Group developed a transition

plan (the Plan) for climate

change mitigation. The Plan

comprises mitigation levers for

scope 1, 2 and 3 GHG emissions

and is underpinned by our

carbon targets, which are

set out as part of the Planet

Passionate programme.

» Product offering: In recent

years, the Group took

significant steps forward in the

development of lower embodied

carbon (LEC) alternatives across

our portfolios (e.g. QuadCore

LEC

insulated panel, RMG600+

and Tate Grid+ LEC). In addition,

PowerPanel

, a fully integrated

insulated panel with solar

technology is another solution

that embodies the future of

sustainable construction.

Type: Negative

impact – actual

Value chain

stage:

Upstream &

downstream

GHG from our

value chain

(scope 3 GHG

emissions)

The Group relies on the

procurement of raw materials

to manufacture its products.

These raw materials include steel

and chemicals - the embodied

carbon of these products can be

considered moderate to high. The

vast majority of the Group’s total

carbon footprint derives from the

procurement of these materials.

Type: Positive

impact –

potential

Time horizon:

Medium/long-

term

Value chain

stage: Upstream

Reduced

embodied

carbon of key

raw materials we

procure

The Group actively collaborates

with its suppliers to assist them in

reducing their embodied carbon,

resulting in productive partnerships

that aim for a significant 15%

reduction in product CO

e intensity

from primary supply partners by

2030, as documented in our Planet

Passionate report.

Annual Report & Financial Statements 2024

178

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179

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Positive

impact –

potential

Time horizon:

Medium/long-

term

Value chain

stage:

Downstream

New, lower

emission

products

Innovation in the form of new

Group products provides customers

with superior products and added

value. It may also aid customers in

lowering their GHG emissions.

» Product offering: In recent

years, the Group took significant

steps forward in the development

of lower embodied carbon (LEC)

alternatives across our portfolios

(e.g. QuadCore LEC

insulated

panel, RMG600+ and Tate Grid+

LEC). In addition, PowerPanel

a fully integrated insulated panel

with solar technology is another

solution that embodies the future

of sustainable construction.

» Innovation strategy:

Decarbonisation of our product

portfolio is a key focus area for

innovation. We aim to achieve

this through two main strategies:

refining existing products with

lower carbon alternatives

and exploring new bio-based

materials and solutions. Such

innovations ensure our products

and systems help our end users

to meet the need to reduce the

carbon footprint of the built

environment.

Type: Positive

impact –

potential

Time horizon:

Short-term

Value chain

stage:

Downstream

Solar panels

- consumer

benefits

By installing PowerPanel

consumers can experience

multiple positive impacts

including diversifying their energy

sources to reduce dependency on

the grid, decreasing their GHG

emissions and potentially saving

money on energy bills, particularly

if costs of other heating power

sources continue to rise.

Type: Risk/

transitional

(market)

Time Horizon:

Medium-term

Derives from:

Other (market)

Changing

customer

behaviour

Failure to reduce the embodied

carbon of our products may lead

to deselection by the market.

» Innovation strategy:

Decarbonisation of our product

portfolio is a key focus area for

innovation. We aim to achieve

this through two main strategies:

refining existing products with

lower carbon alternatives

and exploring new bio-based

materials and solutions. Such

innovations ensure our products

and systems help our end users

to meet the need to reduce the

carbon footprint of the built

environment.

Type: Risk/

transitional

(market)

Horizon:

Medium-term

Derives from:

Other (market)

Substitution of

existing products

and services with

lower emission

options

If the Group does not continue

to develop industry leading

high-performance, low carbon

insulation technologies, there is a

risk that our existing products are

substituted by competitors.

Type: Risk/

transitional

(regulation)

Time Horizon:

Medium-term

Derives from:

Dependencies

Carbon price

mechanisms

If our key suppliers fail to

decarbonise in line with the latest

climate science there is a risk they

will pass through their increased

cost to their customers.

» Decarbonisation plan: The Plan

for climate change mitigation.

The Plan comprises mitigation

levers for scope 1, 2 and 3 GHG

emissions and is underpinned

by our carbon targets, which

are set out as part of the Planet

Passionate programme. For more

information, see the relevant

transition plan section below.

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IRO detail IRO name IRO brief description Kingspan Initiatives

Type:

Opportunity

Time Horizon:

Short-term

Derives from:

Other (market)

Use of public

sector incentives

In October 2020, the EU adopted

the strategic communication

on the Renovation Wave which

contains an action plan aiming

to at least double the annual

energy renovation rate of buildings

by 2030 and to foster deep

renovations. A key facet within the

renovation wave is to improve the

energy efficiency of the building

envelope. The Group’s high-

performance insulation products

are ideally suited for renovation

given that dimension can be a key

constraint in refurbishment.

» Product offering: In recent

years, the Group have taken

significant steps forward in the

development of lower embodied

carbon (LEC) alternatives across

our portfolios (e.g. QuadCore

LEC

insulated panel, RMG600+

and Tate Grid+ LEC). In addition,

PowerPanel

, a fully integrated

insulated panel with solar

technology is another solution

that embodies the future of

sustainable construction.

» Innovation strategy:

Decarbonisation of our product

portfolio is a key focus area for

innovation. We aim to achieve

this through two main strategies:

refining existing products with

lower carbon alternatives

and exploring new bio-based

materials and solutions. Such

innovations ensure our products

and systems help our end users

to meet the need to reduce the

carbon footprint of the built

environment.

Type:

Opportunity

Time Horizon:

Short-term

Derives from:

Other

(products &

services)

Development of

new products

or services

through R&D and

innovation

Innovation is a key facet to

our strategy. Should the Group

innovate an energy efficient

product with substantially superior

carbon saving performance to

alternatives, it could accelerate

share gains from traditional

insulation.

Type:

Opportunity

Time Horizon:

Short-term

Derives from:

Other

(products &

services)

Development

of climate

adaptation,

resilience and

insurance risk

solutions

The EU is expected to include the

carbon emissions from buildings

in the next phase of its Emissions

Trading Scheme (ETS II). This will

support the demand for high-

performance building envelope

products as they help to lower the

heating and cooling needs of a

building.

Type:

Opportunity

Time Horizon:

Medium-term

Derives from:

Other (market)

Shift in

consumer

preferences

A significant proportion of

a building’s embodied and

operational carbon impact comes

from how the building has been

designed and the materials used.

Based on this, we have seen

increased interest and engagement

from top-tier customers seeking

to develop strategic partnerships

with key suppliers, enabling them

to develop lower embodied carbon,

net zero energy buildings. The

Group regards this as a significant

opportunity to strengthen its

relationships with key customers

who have similar strategic

decarbonisation goals.

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Kingspan Group plc

181

Our mission is to help accelerate

a net zero emissions built

environment with people and

planet at its heart. Our strategy is

to be the global leader in innovative

building envelope solutions which

reduce the resource consumption

of buildings, lowering their long-

term running costs and their

environmental impacts.

Climate change risks and

opportunities are deeply embedded

in our strategy, R&D investment,

products and business model.

We have clear plans and actions

in place to address our impacts,

manage our risks and pursue our

opportunities.

Innovation as a key lever to

manage our material IROs

The Group strives to be the market

leader with the most advanced

solutions. We target to invest

approximately 1% of revenue

annually in R&D and digital

transformation which gives us

significant scale in innovation

versus our peers. The Group’s

innovation efforts has led to

breakthrough products such as

QuadCore

, AlphaCore

, Optim-R

and Kooltherm

. QuadCore

is an

insulated panel technology which

is almost 20% more thermally

efficient than a traditional PUR

(polyurethane) core panel.

Kooltherm

is an insulation board

technology which is almost twice

as efficient as traditional stonewool

type insulation, while Optim-R

a high-performance rigid vacuum

insulation panel (VIP) with a

declared thermal conductivity of

just 0.007 W/mK, offering even

greater insulating performance than

commonly used insulation materials.

These innovative products and

future innovative products, such

as QuadCore LEC

, will continue

to differentiate the Group from

our competitors and help to drive

adoption of advanced materials to

reduce the energy consumption of

buildings. The Group continues to

invest in R&D to create technologies

which combat climate change and

we expect innovation to increment

revenue in the future.

Supplier engagement is an

integral part of our strategy

The Group has made two public

commitments to reduce scope 3

GHG emissions, for more details see

pages 186-188. Supplier engagement

is generally prioritised based on size

of expenditure with focus on key raw

material suppliers. Procurement and

sustainability teams work closely with

our key suppliers on decarbonisation

strategy and product development.

An example of the Group’s intent to

make meaningful progress towards

this goal is its active engagement

with suppliers on an ongoing basis to

obtain data and project updates. The

Group monitors key suppliers’ carbon

emissions performance annually,

where available, to map progression

against its targets and engages to

improve availability of supplier and

product specific emissions data.

Engagement to date has included

site visits, meetings, conference calls,

electronic communications between

procurement and sustainability

functions and testing/development

of alternative materials.

Our business model and strategic

pillars, detailed in section ESRS

2, SBM-1, outline our ongoing

conversion strategy to high-

performance building envelopes

from outdated, inefficient methods

of construction. Scenario analysis

plays a critical role in evaluating the

resilience of our business model and

strategy over the short, medium

and long-term, enabling us to

adapt to climate related risks and

opportunities, such as emerging

regulations, changing customer

preferences and the physical impacts

of climate change. The following

highlights illustrate our ability to

adapt and maintainour resilience:

» Securing Access to Finance: In

alignment with our sustainability

strategy, we have established

a Green Finance Framework to

issue financial instruments such

as bonds and loans, enabling us

to finance and refinance projects

that support the transition to a

low carbon and climate resilient

economy. This ensures continued

IRO detail IRO name IRO brief description Kingspan Initiatives

Type:

Opportunity

Time Horizon:

Medium-term

Derives from:

Other (market)

Expansion into

new markets

The Group recently invested in

additional manufacturing facilities

in new territories. Over time, the

Group will help to develop these

markets and to educate building

owners and regulators on the

benefits of high-performance

insulation and thermally efficient

building envelopes.

» Strategic pillar – Global:

The Group aims to continue

expanding globally to bring high-

performance building envelope

solutions to markets which are at

an earlier stage in their evolution

to sustainable and efficient

methods of construction.

» Strategic pillar – Completing

the Envelope: The Group’s

strategy of Completing the

Envelope aims to take our

innovation and sustainability

DNA and apply them to a wider

portfolio of products which are

complementary to our current

offering.

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access to affordable capital

to drive innovation, reduce

embodied carbon and improve

operationalefficiency.

» Redeploying, Upgrading, or

Decommissioning Assets:

The Group is committed to

reducing emissions across

its operations, with scope 1

and 2 GHG emissions in 2024

accounting for less than 5%

of our total GHG footprint. To

ensure continued progress, we

have set a 1.5°C aligned absolute

reduction target for scope 1 and

2emissions.

» Shifting Products and

Services Portfolio: We have

seen increased engagement

from top-tier customers

seeking strategic partnerships

to develop lower embodied

carbon, net zero energy

buildings. Scenario analysis

has informed decisions to

prioritise innovative, sustainable

product solutions, such as

high-performance insulation

and low carbon materials.

This focus not only ensures our

portfolio evolves in alignment

with market needs but also

strengthens relationships

with customers who share our

decarbonisation goals, securing

the Group’s position as a leader

in sustainable buildingsolutions.

» Reskilling the Workforce:

Our people are central to

the success of all four of our

strategic pillars: Innovation,

Planet Passionate, Completing

the Envelope and Global. By

fostering an agile, innovative

and skilled workforce, we ensure

our employees are equipped to

support the transition to a low

carbon economy and drive our

long-term strategic goals. See

section S1-4 Actions for more

details on the Group’s training

and developmentprogrammes.

E1-1 – Transition plan

for climate change

mitigation, E1-3 – Actions

and E1-4 – Targets

The Plan is managed through our

Planet Passionate environmental

sustainability programme (the

Programme), which is underpinned

by our GHG reduction targets.

Aligned with our climate IROs,

the Plan is deeply integrated into

our strategy, R&D investments,

products and business model.

The Plan has been approved by

our CEO, who is the most senior

person responsible for sustainability

related issues.

Following on from our Net Zero

Energy programme, the Group

launched the Planet Passionate

programme at the end of 2019,

setting ambitious targets across

four key themes: Carbon, Energy,

Circularity and Water. Our targets

included absolute reductions in

scope 1, 2 and 3 GHG emissions,

in line with a 1.5°C trajectory. By

the end of 2024, we have achieved

an 80% reduction in scope 1 & 2

GHG emissions from a 2020 base

year (61% including acquisitions),

against a 90% target. We have also

achieved a 14% reduction in scope

3 GHG emissions, over the same

period.

In line with our strategic pillars of

Globalisation and Completing the

Envelope, our global manufacturing

footprint has more than doubled

since 2020. This expansion (both

organic growth and acquisitions)

has contributed to >300% increase

in energy use and a 100% increase in

baseline (i.e. 2020) GHG emissions.

To align with this growth, for the

period 2025–2030, we have updated

our Plan and our scope 1 & 2 GHG

emissions reduction target from

90% to 65%, including acquisitions

to date and further potential

growth. Our updated target is

projected to achieve an additional

197,000 tCO

e reduction by 2030,

beyond the original commitment.

Further information on our updated

targets and progress to date is

outlined in section E1-4 below.

TRANSITION PLAN

100%

80%

60%

40%

20%

2020 Scope 1 & 2 Scope 3 2024 Potential Scope 1 & 2 Scope 3 2030

Achieved Achieved Organic Reduction Reduction

Reduction Reduction Growth Projects Projects

Scope 3 Scope 1 & 2

-6%

-13%

+10%

-1%

-34%

Annual Report & Financial Statements 2024

182

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183

Scope 1 and 2 GHG emissions

# Target name Base

year

Base year

emissions

Target

year

Scope 2024

emissions

Progress

to date

1 65% absolute

reduction – scope

1 and scope 2

emissions

2020 870,482

tCO

2030 1, 2 337,837

tCO

61%

reduction

Target context and additional information

Overview: We have set a 65% absolute scope 1 and 2 GHG emissions reduction target by 2030, from a 2020

base year. This target is science based, developed based on the absolute contraction approach, compatible

with limiting global warming to 1.5°C, but not externally assured. Due to significant growth since the inception

of the Planet Passionate programme, our externally verified scope 1 and 2 90% reduction target is under review.

Our 2020 baseline emissions are recalculated to account for acquisition impact, in line with the GHG Protocol’s

guidance. The target aims to mitigate our scope 1 and scope 2 (market based) GHG emissions, as outlined in

the climate change section of our environmental policy. Our mitigation actions (both completed to date and

planned) to achieve this target are outlined below, detailed per decarbonisation lever.

Scope: Scope 1 and 2 GHG emissions (market based) excluding biogenic emissions. All manufacturing, assembly

and R&D sites within the Group, including businesses acquired on or prior to 30 September 2024. The impact of

acquisitions after this date were estimated and deemed not material at the Group level.

Consideration of future developments: We will continue to improve energy efficiency and electrify process

equipment, such as our insulated panel manufacturing process, to reduce carbon emissions associated with

fossil fuel use. However, the capacity of the electricity grid is a crucial consideration for future electrification

efforts.

The availability of renewable electricity is critical to our strategy. While we closely monitor market developments

in this area, we will prioritise generating electricity through solar PV systems at our sites. Given the limited

access to renewable electricity in certain regions, we will continue to monitor market developments and pursue

renewable energy solutions as they become available. Unlike the more established renewable electricity markets,

renewable fuel markets are still relatively underdeveloped. However, as biofuel technology matures, we are also

committed to actively seeking biofuel suppliers to replace our fossil fuel usage, where suitable. Our target is also

supported by the phasing out of high Global Warming Potential (GWP) blowing agents.

Progress outlook and trends: The target is monitored on a monthly basis by our Group Sustainability team.

Since 2020, we have achieved a 61% reduction, a rate that is exceeding the minimum annual reduction needed

to limit warming to 1.5

C above preindustrial levels.

Progress so far

In 2024, we achieved a further

14.4% reduction in scope 1 and

2 GHG emissions, approximately

10% of which is attributable to

over 100 energy related, emissions

reduction initiatives. The majority

of the remaining approximately

4% is related to process emissions

reductions, achieved by minimising

the use of high GWP blowing

agents. Overall, the Group has

reduced scope 1 and 2 GHG

emissions by 61% in comparison to

2020, our base year and they now

represent less than 5% of our total

carbon footprint.

These reductions are achieved

through our decarbonisation levers

which include energy efficiency,

fuel conversion and process

electrification, on-site renewable

energy generation, renewable

electricity contracts and phasing out

the use of high GWP blowing agents.

During the development of our Plan

and its decarbonisation levers, we

have considered a climate scenario

compatible with limiting global

warming to 1.5°C.

Our strategy seeks to minimise GHG

emissions from the organic growth

of the business where possible,

however we also account for this

potential impact variable within our

transition plan.

Further information on projects

completed in 2024 and planned

actions are outlined per

decarbonisation lever below.

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1. Decarbonisation Lever: Energy Efficiency

Scope: In addition to pursuing the increased use of renewable energy, we will continue to implement energy

efficiency projects to enhance energy utilisation and decrease reliance on both renewable and non-renewable

energy sources, which also supports our goal of reducing scope 1 and 2 GHG emissions.

Completed actions in the reporting year:

32 projects, including air compressor upgrades and LED light replacements were completed during the year.

These projects are expected to have an estimated 1,198 tCO

e of annual GHG emission savings, representing a

0.1% reduction in GHG emissions for the reporting year.

Planned actions:

Numerous energy efficiency projects are completed every year including air compressor upgrades, LED light

replacements, process energy efficiency projects and heat recovery projects. Planned projects, for 2025 and

2026, will have an estimated 1,374 tCO

e annual GHG emission savings which are expected to contribute 0.2%

to the achievement of our Target #1. However, as these are short-term projects, a plethora of additional projects

are expected to be completed between now and 2030 as appropriate, with additional impacts.

Key mitigation actions taken during the reporting year and planned for the future per identified

decarbonisation lever:

2020

2020 - 2023 Initiatives

2024 Energy related

2024 Process related

2024

Potential organic growth

Purchased renewable energy

On-site generation

Energy efficiency

Lower GWP raw materials

2030 target

100%

80%

60%

40%

20%

100.0%

-46.8%

-10.3%

-4.1%

38.8%

+10.9%

Increase Decrease Total

SCOPE 1 AND 2 DECARBONISATION ROADMAP

- 10.6%

- 0.9%

- 0.2%

- 3.4%

34.6%

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2. Decarbonisation Lever: Purchased Renewable Energy - Renewable Energy Contracts

Scope: The Group has prioritised conversion to renewable electricity where it is available to reduce scope 2 GHG

emissions, focusing initially on European markets. However, as other markets develop (e.g. North America), the

implementation of projects in these areas will be considered.

Completed actions in the reporting year:

23 energy contracts have been converted to renewable energy and are expected to reduce GHG emissions by

approximately 172,419 tCO

e annually (representing a 19.8% reduction in scope 2 GHG emissions). While 53% of

this was realised in 2024, a further 9.2% reduction is expected from these same projects in 2025, when in place

for a full year.

Planned actions:

Nine further energy contracts are planned to be converted to renewable energy, between 2025 and 2026,

which will reduce GHG emissions by approximately 1,259 tCO

e annually and contribute a 0.1% GHG emissions

reduction towards Target #1, with further projects under investigation where renewable energy is becoming

available in the marketplace.

3. Decarbonisation Lever: Purchased Renewable Energy - Fuel Conversion and Process Electrification

Scope: To reduce scope 1 emissions from our operations, the Group utilises both conversion to renewable fuel and

process electrification as an important decarbonisation lever, where suitable.

Completed actions in the reporting year:

30 fuel conversion and electrification projects were completed, across our operations, including forklift

electrification and conversion to biofuels and process conversion to biofuels. These projects are estimated to save

approximately 2,060 tCO

e annually and contribute 0.2% GHG emissions reduction towards our Target #1.

Planned actions:

51 further fuel conversion and electrification projects, including those targeting both mobile combustion and

stationary combustion, related to our manufacturing processes, are planned by 2030. These projects are

estimated to save approximately 9,645 tCO

e annually and contribute 1.1% GHG emissions reduction towards our

Target #1.

4. Decarbonisation Lever: On-site Renewable Energy Generation

Scope: The Group will continue the roll out of on-site solar PV systems across all wholly owned facilities to

minimise the reliance on non-renewable electricity purchases, especially for businesses that have limited access

to renewable electricity suppliers, to further reduce scope 2 GHG emissions. We will also investigate other

renewable energy generation technologies beyond solar PV, to determine when and if suitable.

Completed actions in the reporting year:

24 projects including, solar PV installation and expansion, were completed in 2024. These projects are estimated

to save approximately 1,381 tCO

e annually and contribute 0.2% GHG emissions reduction to Target #1.

Planned actions:

74 further projects, including solar PV installation and expansion and heat pumps, are planned between 2025

and 2030. 10 key projects will have a significant impact, with an estimated 6,119 tCO

e annual carbon GHG

emission savings, which would contribute a further 0.7% GHG emissions reduction to Target #1.

5. Decarbonisation Lever: Lower GWP Raw Materials

Scope: The Group is in the process of phasing our use of high GWP blowing agents for the production of

insulation products where technically possible, which has significantly reduced our scope 1 process related GHG

emissions by 85% prior to 2024.

Completed actions in the reporting year:

Further adoption of lower GWP blowing agents in 2024, has resulted in a 30,000 tCO

e reduction in scope 1 GHG

emissions from 2023. This initiative contributes approximately 3.4% further reduction towards our GHG emissions

reduction Target #1.

Planned actions:

The continued adoption of lower GWP blowing agents by 2030 is expected to save a further 5,000 tCO

e annually

and contribute a further 0.5% GHG emissions reduction towards Target #1.

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Scope 3 GHG emissions

Scope 3 emissions make up the

majority of the Group’s total GHG

emissions, with 92% deriving from

the below three categories:

1. Purchased goods & services

(Category C1)

2. Use of sold products (Category

C11)

3. End of life treatment of sold

products (Category C12)

In 2019, at the commencement of

the Planet Passionate programme,

we set two targets to reduce these

emissions – an absolute reduction

target (C1, C11 and C12) and an

intensity target, which aims to drive

reductions specifically in our C1

scope 3 emissions.

Emissions from C11 and C12 have

significantly reduced to date due to

the phasing out of use of high GWP

blowing agents in North America,

as addressed above in our scope 1

and 2 emissions reductions. Since

2020, we have successfully reduced

our C11 and C12 emissions by 94%.

In 2024, these targets were

assessed and the intensity target

was updated to reflect the pace of

development among regulators,

suppliers and customers. The below

decarbonisation levers have been

identified to help us reduce our C1

GHG emissions and achieve these

targets:

» Data collection and reporting;

» Supplier engagement and

collaboration; and

» Development of lower impact

products.

Our targets, progress and actions

are outlined in further detail below.

# Target name Base

year

Base year

emissions

Target year Scope 2024

emissions

Progress

to date

2 42% absolute

reduction

– scope 3

emissions

2020 8,130,451

tCO

2030 3 6,990,923

tCO

14%

reduction

Target context and additional information

Overview: We have set a 42% scope 3 GHG emissions reduction target by 2030, from a 2020 base year, in line

with a 1.5°C trajectory and verified by the Science Based Targets Initiative. Our 2020 baseline emissions are

recalculated to account for acquisition impact, in line with the GHG protocol’s guidance. The target aims to

mitigate our scope 3 GHG emissions, as outlined in the climate change section of our environmental policy.

Scope: The target covers the following scope 3 categories: purchased goods and services, use of sold products

and end of life treatment of sold products, which represented 92% our total scope 3 GHG emissions in 2024.

Consideration of future developments: Reductions in absolute scope 3 emissions is challenging for a global

manufacturing business with over 91% of emissions embedded in our upstream raw materials. However, it

is critical that each industry sets 1.5°C aligned decarbonisation targets in relation to scope 3. We are closely

monitoring relative industry trends and working closely with our procurement team and suppliers to increase

availability and procurement of lower embodied carbon raw materials to support the progression of this target.

Target monitoring/ progress outlook/ trends: The majority of our reduction is attributable to C1 and

C11/C12, contributing approximately 24% and 65%, respectively. The boundary of this progress includes all

manufacturing, assembly and R&D sites within the Group, including businesses acquired on or prior to 30

September 2024. The impact of acquisitions after this date were estimated and deemed not material at the

Group level.

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Key mitigation actions taken during the reporting year and planned for future per identified

decarbonisation lever:

1. Decarbonisation Lever: Data Collection and Reporting

Scope: This decarbonisation lever relates to both our internal and external data collection. The collection of

raw material volumes and spend data, along with the application of suitable emission factors is critical to

accurately reporting scope 3 GHG emissions. Our data collection and reporting improvement strategy is focused

on collecting more granular product and supplier specific emissions information to allow for more accurate

reporting of emissions and strategic decision making. Internally, we focus on collecting detailed volume data for

key raw materials used in our core product families. This approach improves visibility of our upstream value chain

emissions and supports the achievement of Target #2 and #3.

Completed actions in the reporting year:

In 2024, we increased our collection of supplier specific and product specific data, resulting in 34% of our scope

3 emissions being calculated using primary data. Product specific carbon intensity information is collected in the

form of environmental product declarations and product carbon footprints. These are sourced both directly and

indirectly, through supplier engagement and supplier annual reports, respectively. We also implemented a new

scope 3 data collection and reporting system which is used to both calculate, analyse and report on our C1 scope

3 GHG emissions. The use of this tool has allowed us to calculate >70% of our scope 3 C1 emissions using physical

emission factors as opposed to monetary, supporting our data collection and reporting improvement strategy.

Planned actions:

Further development of internal data collection methodologies, will increase the transition towards emissions

calculated using physical emission factors. We will also continue the collection of further supplier specific and

product specific emissions information to increase the accuracy of our reporting. This is led through our supplier

engagement programme (further details below) and is critical in supporting the achievement of our scope 3

GHG reduction targets.

# Target name Base

year

Base year

intensity

Target year Scope 2024

intensity

Progress

to date

3 15% reduction in

carbon intensity of

key raw materials

2020 2.540

tCO

e/t

2030 3 2.440

tCO

e/t

3.9%

reduction

Target context and additional information

Overview: We seek to find solutions to help reduce emissions from our purchased goods and services, which

account for over 91% of our total value chain emissions. Achieving absolute scope 3 emissions reductions is

challenging and this target was set to help us to track and demonstrate progress as our key suppliers implement

their emissions reduction strategies. This target was developed after consultations with several internal

stakeholders, including members of our group and divisional procurement teams. Our mitigation actions and

decarbonisation levers are outlined in section E1-3.

Scope: This target covers the key raw materials we procure from our primary raw material suppliers. The majority

of our upstream value chain emissions are attributable to three key raw material categories – metals, chemicals

and mineral fibre. In 2024, these raw materials accounted for 76% of emissions related to purchase of raw

materials.

Consideration of future developments: Achievement of our supply chain targets is dependent on the progress

made by our key raw material suppliers. It is also reliant on significant industry decarbonisation in the metals and

chemicals industries. We have taken these dependencies into account in setting our target and developing our

strategy to achieve this target through collaboration with our key suppliers.

Target monitoring/ progress outlook/ trends: To date, through procurement and supplier engagement

strategies, we have reduced the intensity of the carbon in our key raw materials by 3.94%.

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2. Decarbonisation Lever: Supplier Engagement and Collaboration

Scope: Through our supplier engagement strategy, we prioritise engagement with major suppliers of our key raw

materials, as they contribute significantly to our upstream emissions. By collaborating with our key suppliers,

maintaining long-term relationships, we aim to ensure alignment with our environmental objectives.

We recognise the critical role these stakeholders play in contributing to the embodied carbon of our products and

scope 3 emissions at the group level as shown by the fact that C1 scope 3 emissions accounted for 91% of the

total scope 3 emissions.

Completed actions in the reporting year:

As previously mentioned, the Group focused on reducing the embodied carbon of the key raw materials

we purchase. To achieve this, we hold open discussions with our suppliers to address the challenges and

opportunities associated with decarbonisation, requesting decarbonisation roadmaps at both company and

product level for key raw material suppliers.

In 2024, we also developed a SHREDD Policy which outlines the Group’s supplier due diligence process. Through

this process, we aim to reduce environmental impacts by collaboration with critical suppliers of our key raw

materials and holding them accountable to the Group’s environmental standards.

Our supplier engagement programme includes suppliers covering over 62% of our C1 scope 3 emissions.

Planned actions:

We will continue our supplier engagement, working with our suppliers to further reduce the embodied carbon

of our key raw materials and to identify opportunities for collaboration. We also plan to expand the scope of

our engagement programme to include additional suppliers and address a further proportion of our emissions

related to raw materials. Supplier engagement and collaboration is a key lever in progressing both Target #1 and

#2, in relation to C1 scope 3 emissions.

3. Decarbonisation Lever: Development of Lower Impact Products

Scope: To support our scope 3 GHG emissions reduction targets, supplier engagement strategy and the

procurement of lower embodied carbon raw materials, we aim to continue developing and expanding our lower

embodied carbon (LEC) product ranges. These products are designed to help achieve our scope 3 GHG emission

reduction targets by offering a market route for products with enhanced environmental performance. This in

turn, helps our customers meet their own decarbonisation goals.

Completed actions in the reporting year:

The Group has brought 19 products with improved environmental performance to market to date, including

12 LEC products launched in 2024. This helps develop a market for these products while also driving demand

upstream for lower embodied carbon raw materials.

Planned actions:

We are in the process of developing further decarbonisation product roadmaps and continuing to work closely

with our R&D teams to continue the expansion of the LEC product range and other products with improved

environmental performance by 2030 and beyond.

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Our Article 8 disclosures, outlined

in the EU Taxonomy section of this

report, detail the proportion of our

revenue, capex and opex currently

eligible and aligned with the EU

Taxonomy. These disclosures cover

activities suchas:

» CCM 3.5 Manufacturing of

Energy Efficiency Equipment for

Buildings

To support the continued alignment

of our economic activities with

Taxonomy criteria, the Group

established a Green Finance

Framework in 2024. This framework

enables the issuance of green

financial instruments to fund

or refinance projects that meet

Taxonomy criteria. These include

investments in energy-efficient

manufacturing facilities, renewable

energy infrastructure and green

building projects certified under

recognised standards. Eligible

expenditures under the framework

include both capex and opex,

ensuring alignment with substantial

contribution criteria for climate

change mitigation and, where

applicable, compliance with

transitionplans.

The Group’s organic expansion

in 2024, including new lines

and facilities, integrates energy

efficiency and low carbon

technologies, contributing to

increased alignment with Taxonomy

objectives. Ongoing renovations

of existing assets further ensure

operational improvements are

consistent with sustainabilitygoals.

Over time, we expect our alignment

with Taxonomy criteria to evolve

through continued investment in

innovative, low carbon solutions and

the expansion of taxonomy-aligned

revenue, capex andopex.

For further details on our EU

Taxonomy alignment, refer to the

EU Taxonomy section of this report.

To learn more about the Green

Finance Framework, please see

the Green Finance Framework

document

The Group did not invest capex

amounts in coal, oil and gas-related

economic activities (these activities

are related to the following NACE

codes: B.05, C.19, D.35.1, D.35.3,

G.46.71 and gas-related activities

with direct GHG emissions that are

higher than 270 gCO

e/KWh) during

the reporting year. Also, the Group

is not excluded from EU Paris-

aligned Benchmarks.

The Group does not manufacture

GHG-intensive or energy intensive

products; the Group is focused on

reducing the embodied carbon of

its products, delivering enhanced

value to its customers. Regarding

locked-in GHG emissions from its

key assets, the Group has assessed

that it does not have locked-in GHG

emissions that might jeopardise

the achievement of its targets or its

transition plan for climate change

mitigation.

E1-2 - Policies

The Group’s updated Environmental

Policy was approved in December

2024 and communicated to

responsible parties. Kingspan

policies can be accessed on

our website: https://www.

kingspangroup.com/en/about/

policies/. A training programme

is in development, which will be

rolled out to relevant stakeholders

throughout 2025. The Group

has developed a Climate

Change Section (CCS) within its

Environmental Policy to manage,

prevent, mitigate and remediate

actual and potential impacts,

to address risks and to pursue

opportunities related to both

climate change mitigation and

adaptation. The CCS’s provisions

relate to all climate-related

material IROs and it covers our

own operations and the upstream

stage of our value chain, as these

two were the stages with material

IROs. The CCS addresses climate

change mitigation, climate change

adaptation, energy efficiency and

renewable energy generation.

Via our policy, we highlight that

our commitment is aligned with

the Paris Agreement. Also, while

setting the policy, we considered

the views and expectations of

key stakeholders as part of the

DMA process outlined in previous

sections. The divisional managing

directors (MDs) are responsible for

the implementation of the CCS.

Monitoring of the CCS is performed

as part of our Planet Passionate

programme, which included targets

that were designed to help us

achieve our policy objectives. The

CCS is available on our website

and was also made available to

all stakeholders responsible for its

implementation.

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E1-5 - Energy consumption and mix

Metric (MWh) 2020 2021 2022 2023 2024

Total energy consumption

637,370 765,814 831,986 932,665 2,526,110

Total fossil energy consumption 510,294 572,121 544,914 605,325 1,024,081

Share of fossil sources (%) 80% 75% 65% 65% 41%

Coal and coal products 0 0 0 0 126,816

Crude oil and petroleum products 86,271 107,220 105,073 94,742 103,580

Natural gas 279,616 331,389 334,979 415,924 607,973

Other fossil sources

19,822 27,489 24,116 15,381 8,801

Purchased electricity/heat/steam/cooling from

fossil sources

124,585 106,023 80,746 79,278 176,911

Consumption from nuclear sources

n/a n/a n/a n/a n/a

Total renewable energy consumption 127,076 193,693 287,072 327,340 1,502,029

Share of renewable sources (%) 20% 25% 35% 35% 59%

Renewable fuel 18,416 22,170 52,276 65,272 1,087,895

Purchased renewable electricity/heat/steam/

cooling from renewable sources

97,747 159,387 216,512 237,141 384,694

Self-generated, non-fuel 10,913 12,136 18,284 24,927 29,440

Note - Boundary: Whole Business includes manufacturing, assembly and R&D sites within the Group, excluding acquisitions made

after 30 September 2024. The impact of acquisitions after this date were estimated and deemed not material at the Group level.

1 Includes restated figures for historical data due to improved data collection and change in calculation methodologies.

2 Includes other non-renewable, non-fossil sources.

3 The Group does not actively source energy from nuclear sources, however the non-renewable electricity we purchase might

include nuclear sources.

Metric (MWh) 2020 2021 2022 2023 2024

Total energy production

42,099 52,582 73,466 90,320 814,259

Non-renewable energy production 10,993 15,147 13,011 8,555 49,506

Renewable energy production 31,106 37,435 60,455 81,765 764,753

1 Includes restated figures for historical data due to improved data collection and change in calculation methodologies.

Metric (MWh / €m of net revenue) 2024

Energy intensity 293

Net revenue from activities in high climate impact sectors

used to calculate energy intensity (€m) 8,608

Net revenue - other (€m) -

Total net revenue per financial statements (€m) 8,608

1 High climate impact sectors refer to those listed under NACE Sections A to H and Section L, as defined in Commission

Delegated Regulation (EU) 2022/1288. As all our operations fall within these sectors, it is assumed that the entirety of our

revenue is captured under the relevant appendices.

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E1-6 - Gross Scopes 1, 2, 3 and total GHG emissions

Metric (tCO

2020 2021 2022 2023 2024 % (2024

vs 2023)

Gross scope 1 GHG emissions

606,488 594,753 445,154 264,707 227,672 -14.0%

% of scope 1 GHG emissions from regulated

emission trading schemes

- - - - 53% N/A

Biogenic CO

emissions

386,604 479,655 454,915 356,644 394,948 10.7%

Gross location-based scope 2 GHG emissions

254,940 255,969 223,304 204,383 216,093 5.7%

Gross market-based scope 2 GHG emissions

263,994 282,541 243,949 198,747 110,165 -44.6%

Gross scope 1 and 2 (market based) GHG

emissions

870,482 877,294 689,103 463,454 337,837 -27.1%

Gross scope 3 GHG emissions

8,130,451 9,688,866 8,560,679 7,684,446 6,990,923 -9.0%

1. Purchased goods and services

6,680,401 8,163,984 7,486,560 6,846,605 6,375,447

-7.9%

11. Use of sold products

497,975 529,956 329,629 54,978 6,048

12. End of life treatment of sold products

453,925 488,631 303,859 83,364 51,352

2. Capital goods

85,081 81,562 106,575 207,272 133,995 -35.4%

3. Fuel and energy related activities

34,001 48,179 50,518 86,069 139,579 62.2%

4. Upstream transportation and distribution

297,778 292,795 190,161 291,311 222,506 -23.6%

5. Waste generated in operations

4,874 7,512 5,592 11,387 4,918 -56.8%

6. Business travel

46,116 44,524 58,214 73,910 23,849 -67.7%

7. Employee commuting

30,300 31,723 29,571 29,550 33,229 12.5%

Total GHG emissions (location-based)

8,991,879 10,539,588 9,229,137 8,153,536 7,434,688 -8.8%

Total GHG emissions (market-based)

9,000,933 10,566,160 9,249,782 8,147,900 7,328,760 -10.1%

Note 1. Boundary: Whole Business includes manufacturing, assembly and R&D sites within the Group, excluding acquisitions made

after 30 September 2024. The impact of acquisitions after this date were estimated and deemed not material at the Group level.

Note 2. Significant changes: In 2024, we made significant changes to the definition of our reporting boundary due to strategic

acquisitions. We acquired control of Steico through a majority stake and also acquired the stonewool manufacturing business

from Karl Bachl Kunststoffverarbeitung GmbH & Co. KG. We recalculate both base and interval years in line with the GHG

Protocol’s guidance, to allow for better and more accurate year-on-year comparability.

Note 3. GHG emissions include the following GHG gases: CO

, CH

, N

O and HFCs. PFCs, SF

and NF

are not included as they are

not considered to be associated with our inputs.

Note 4. See Appendix 6 for more details on our calculation methodology and assumptions.

1 Includes restated figures due to improved data collection, change in calculation methodologies and recalculations due to

acquisitions.

GHG Intensity per net revenue (tCO

e / €m of net revenue) 2024

Total GHG emissions (location-based) per net revenue 864

Total GHG emissions (market-based) per net revenue 851

Net revenue used to calculate GHG intensity 8,608

Net revenue - other (€m) -

Total net revenue per financial statements (€m) 8,608

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E1-7 - GHG removals

and GHG mitigation

projects financed through

carbon credits

The Group did not purchase carbon

credits from the voluntary market

during the reporting period and

did not generate or apply GHG

removals and/or storage resulting

from projects within its own

operations or value chain.

We follow updated guidance

and recommendations from

several authoritative institutions

and we do not procure carbon

credits to count as reductions

towards meeting our carbon

targets. Our focus is instead

on decarbonisation within our

operations and value chain.

Towards the end of our

decarbonisation roadmap, for hard

to abate residual emissions, we

plan to procure only high quality

carbon credits to neutralise residual

GHG emissions after we have met

our science-based absolute GHG

emission reduction targets.

We will only procure credible,

high-quality carbon credits that

will demonstrate and ensure

additionality and permanence.

Nature-based solutions, such as

reforestation, cannot guarantee

the permanence needed so we

will continue to closely monitor

the market and invest in the most

suitable solution in the coming

years.

E1-8 - Internal carbon

pricing

In January 2023, we introduced

an internal carbon charge across

our global business for all our

manufacturing, assembly and

R&D sites. Each operating business

unit is charged €70* for each

energy-related tCO

e emitted by

their business during the year. The

charge is included in divisional

management accounts, directly

affecting divisional profitability and

management remuneration. The

charge covers our scope 1 and 2

GHG emissions (excluding process

and biogenic emissions) and will

be adjusted as required to ensure

progress against our targets align

to relevant developments in this

field. The carbon charge does not

cover scope 3 GHG emissions.

Scope 1 GHG emissions covered in

2024: 215,252 tCO

e (95% of overall

scope 1 GHG emissions).

Scope 2 GHG emissions (market-

based) covered in 2024: 110,165

tCO

e (100% of overall scope 2 GHG

emissions).

The carbon charge was implemented

to accelerate reduction of direct

GHG emissions. It has helped

to further incentivise the rapid

deployment of decarbonisation

projects including renewable

energy contract conversions and

forklift fleet decarbonisation, while

facilitating increased focus across

the business on our decarbonisation

strategy.

* The carbon charge price was

determined through an extensive

review of carbon pricing guidance,

existing carbon pricing mechanisms

and rates already implemented,

both at corporate and national level,

including a review of the EU ETS

carbon price and trajectory. A variety

of carbon price levels were modelled

against our business footprint and

strategic decarbonisation projects to

determine a suitable price to assist

in furthering our science based 1.5˚C

aligned decarbonisation strategy.

ESRS E2 – POLLUTION

Interaction with

other ESRS

a) Relevant Greenhouse gases

connected to air pollution:

carbon dioxide (CO

), methane

(CH

), nitrous oxide (N

O),

hydrofluorocarbons (HFCs),

perfluorocarbons (PFCs), sulphur

hexafluoride (SF

) and nitrogen

trifluoride (NF

) are covered in

E1 - Climate change.

b) Water consumption, water

recycling and storage. Emissions

to water, air and soil and

substances of concern are

covered in E3 - Water and

marine resources.

c) Biodiversity loss and interaction

with ecosystems and species are

covered in E4 - Biodiversity and

ecosystems.

d) Transition away from extraction

of non-renewable resources and

the implementation of practices

that prevent waste generation

are covered in E5 - Resource use

and circular economy.

ESRS 2 - SBM-3

Our overall DMA approach for the

topic of Pollution is outlined in the

ESRS 2 IRO-1 section of this Report.

The outcome of this analysis is as

follows:

» Pollution to air, water and

soil (including generation

and use of microplastics):

As a global manufacturer of

building materials with 273

manufacturing sites, the sub-

topic of pollution to air, water

and soil is considered relevant

and IROs were identified and

assessed in further detail. Both

impact and financial materiality

were assessed and we concluded

that based on the assessment

to date, this sub-topic is not

material at the Group level for

our own operations. Given the

nature, extent and complexity

of our value chain, we have

assessed that this topic is

material for our upstream value

chain, while not material for our

downstream value chain.

» Substances of concern

(SoC)/ Substances of very

high concern (SVHC): As

a global manufacturer of

building materials with 273

manufacturing sites, this

sub-topic of SoC and SVHC is

considered relevant and IROs

were identified and assessed in

further detail. Using a risk-based

approach we identified key

chemical raw materials from a

group level, which were further

assessed by a third-party expert.

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193

Material impacts related to Pollution

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Negative

impact - potential

Time Horizon:

Short-term

Value chain

stage: Upstream

Pollution to air,

water and soil

Due to the nature of the

construction industry and

its value chain, we consider

the Group’s impacts related

to pollution of air, water and

soil material for our upstream

value chain.

» Policy update: In 2024,

the Group updated its

Environmental Policy to include

considerations and provisions

aligned with potential

pollution related IROs.

» Certifications: In 2024,

50% of our sites held ISO

14001 certification, reflecting

the implementation of their

environmental management

systems.

Type: Negative

impact - potential

Time Horizon:

Short-term

Value chain

stage: Upstream

Pollution caused

by substances of

concern/very high

concern

Due to the nature of the

construction industry and its

value chain, we consider the

Group’s impacts related to

pollution caused by substances

of concern/ very high concern

material for our upstream

value chain.

E2-1 – Policies, E2-2 -

Actions and E2-3 - Targets

In the Pollution Section (PS) of our

Environmental Policy, we recognise

the importance of pollution, as

a critical global issue. Our policy

outlines our objectives in relation

to material pollution related to our

IROs, including our commitment

to develop a process to identify

and monitor these IROs within our

operations. Specifically, it outlines

our aim to manage material IROs

related to pollution to air, water

and soil (including pollution from

microplastics and of living organisms

and food resources). As we have

not identified any material IROs

related to SoC or SVHC within

our operations and due to the

complexity of the topic and unique

regional requirements, management

of IROs related to the substituting

or minimising of substances of

concern and incident and emergency

prevention are not addressed in our

Environmental Policy.

As we did not identify any material

pollution related IROs for our own

operations, we did not set Group

level pollution targets or related

actions, but we will continue to

monitor the materiality of our

IROs and reassess our approach if

needed.

Although we have not identified

any material IROs at a group

level for our own operations, this

topic is managed by our local

teams at the site level, in line with

applicable regulations and giving

consideration to unique local

circumstance. Our manufacturing

sites hold environmental permits

or equivalent, where applicable,

in line with national and/or

regional requirements. Compliance

with these requirements may

include, but is not limited to, the

monitoring and reporting of air

emissions, water discharges and

soil contamination. Environmental

permits outline the local pollution

regulatory thresholds and limits,

thus providing clear guidance and

thresholds for the manufacturing

sites to operate in. We monitor

material environmental breaches

and/or concerns raised by local

communities (i.e. those in or

around our business locations) and

no material fines or breaches have

been reported for 2024.

Another key element of our

environmental management

approach is the implementation

of ISO 14001 environmental

management systems at our sites.

At the end of 2024, 50% of our

manufacturing sites have achieved

ISO 14001 certification.

The above measures support in

tracking the effectiveness of the

PS of our Environmental Policy,

however, we plan to establish a

group level reporting mechanism

to enhance the monitoring and

management of pollution-related

IROs. As a first step, by consulting

with both internal experts and

The results of this assessment

allowed us to consider the

materiality of SoCs and SVHCs in

relation to our overall materials

procured and product portfolio.

We concluded, based on this

assessment completed to date,

that SoCs and SVHCs are not

a material sub-topic at the

Group level for our operations

(including procured materials)

and downstream value chain.

Given the nature, extent and

complexity of our value chain, we

have determined that this topic

is likely material for our upstream

value chain.

The assessment to date included

estimates and assumptions. As

availability of primary data increases

through the development of a group

level reporting mechanism, we will

continue to refine and review our

assessment.

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third-party consultants, we aim to

gather more comprehensive and

accurate data on our key value

chain partners’ pollution-related

impacts. This increased visibility will

facilitate the development of an

effective process to manage our

material impacts.

ESRS E3 - WATER AND

MARINE RESOURCES

Interaction with

other ESRS

a) Emissions to water and the use

and generation of microplastics

will be covered in E2 – Pollution.

b) Sustainable use and impacts on

freshwater aquatic ecosystems

are covered in E4 – Biodiversity

and ecosystems.

c) Waste management, including

plastic and wastewater are

covered in E5 – Resource use and

circular economy.

ESRS 2 – SBM-3

Data from the Food and Agriculture

Organisation of the United

Nations from 2017 indicates that

of the global annual freshwater

withdrawals, agriculture accounts

for 71% of the total, domestic

withdrawals account for 12% and

industry for 17%. Most of our sites

(90%) withdraw less than 10,000

of water per year (categorised

as very low) and are therefore not

water intensive. 27.5% of our sites

consume water as an integral part

of their manufacturing purposes,

while the other 72.5% use water

only for social purposes.

As part of our IRO assessment,

we have established a process to

identify any priority sites, in relation

to water. Priority sites are those

which are deemed to have material

water impacts or dependencies,

determined by annual water

withdrawal exceeding 100,000

(categorised as medium) and

location in areas of high or very high

water stress. During the reporting

period, no priority sites have been

identified, supporting our claim that

we do not have material impacts or

risks within our own operations. See

the results of this assessment of our

sites in the heatmap below.

Nevertheless, we acknowledge

that our business relies on the

procurement of raw materials

from industries that consume large

quantities of water. The Group does

not rely nor have impacts on marine

resources (e.g. gravels and seafood

products), hence we deem that

we do not have any material IROs

related to this topic. Through the

DMA we conducted (as outlined in

section ESRS 2 IRO-1), we identified

material IROs related to water,

which are presented in more detail

in this section.

100%

KINGSPAN’S WATER HEATMAP

1,000,000

100,000

10,000

Water withdrawals (m

/year)

2 sites

16 sites

152 sites

Low/medium High/ very high

Very Low

Low

Medium

Baseline water stress

40%

0 sites

6 sites

64 sites

Note: Water withdrawal categories based on WWF (2024) WWF Risk Filter Suite version 2.0. https://riskfilter.org/

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Regarding our water-related

opportunity, we manufacture and

support pioneering new technologies

to preserve and protect water, such

as rainwater harvesting systems and

wastewater treatment systems. As

water stress and water availability

become more severe in the coming

decades, we anticipate an increased

demand for these products can lead

to increased sales and revenues.

Our ambition is to grow our Light,

Air + Water divisional revenue to

over c.€2bn over the medium to

long-term. Water broadly represents

c.30% of this division and should

expect growth rates in line with

the overall division. The growth

in revenue could accelerate as

consumer awareness of the value of

water rises based on higher incidence

rates of both droughts and floods.

As we continue to improve our

IRO assessment processes across

our Group, we will examine the

possibility of conducting further

water consultations in the future.

E3-1 - Policies

The Group has developed a

dedicated Water Section (WS)

in its Environmental Policy to

manage, prevent, mitigate and

remediate actual and potential

impacts, to address risks and to

pursue opportunities related to

water. The WS’s provisions relate

to our material impacts and

dependencies and covers all of our

manufacturing, R&D and assembly

facilities (including sites in water

stressed areas). The WS addresses

water management at priority

sites – priority sites are identified

based on their dependency on

water (i.e. water withdrawal), their

impacts (i.e. water consumption)

and their water-stress status.

Water considerations related

to water treatment and use/

sourcing, product and service

design and consumption reduction

commitments are not explicitly

addressed in the WS, since our

management approach, including

the water-related topics tackled,

will depend on the local context of

water and the specific needs and

circumstances at priority sites.

Our SHREDD Policy (see section

S2-1 for further detail), which is

aligned with several guidelines and

principles (i.e. OECD Guidance for

Multinational Enterprises (MNCs) on

Responsible Business Conduct (RBC)

(OECD, 2023); UN Guiding Principles

on Business and Human Rights

(UNGP, 2011); International Labour

Organisation (ILO) Declaration on

Fundamental Principles and Rights at

Work (ILO, 1998) seeks to address our

material upstream environmental

impacts – including water. The WS

does not include provisions related to

sustainable oceans and seas, as they

were deemed not material topics.

Divisional MDs oversee and

are responsible for the WS’s

implementation. Monitoring of

the WS is performed as part of our

Planet Passionate programme. Our

Environmental Policy is available

on our website and was also

made available to all stakeholders

responsible for its implementation.

Note: Water pollution is under the scope

of our pollution policy.

E3-2 - Actions and

E3-3 - Targets

As outlined above, our impacts and

dependency on water vary across

our Group. This fact, along with

the local context of water, means

that a Group-wide target based

on absolute reductions is neither

the most efficient nor the most

strategically relevant option. Instead,

we are focusing our attention and

resources on sites and helping

to address their water-related

challenges. As outlined in the WS

of our Environmental Policy, priority

sites will be identified by using

relevant criteria such as exposure

Material impacts and opportunities related to Water and marine resources

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Negative

impact - actual

Value chain stage:

Upstream

Water

consumption

quantities

The Group’s key suppliers operate in

industries that consume large quantities

of water (e.g. steel and plastics), hence

having negative impacts on water

availability.

» Policy update: In 2024,

the Group updated its

Environmental Policy to

include considerations and

provisions aligned with our

water-related IROs.

Type: Positive

impact - actual

Value chain stage:

Downstream

Manufacture

of water-

products

The Group has a range of products

available to customers which aid in

treating water to improve its quality

including sewage treatment, septic tanks

and rainwater collection infrastructure.

» Product offering: The

Group manufactures and

supports new technologies

to preserve and protect

water, such as rainwater

harvesting systems and

wastewater treatment

systems. The Group sells

rainwater harvesting and

telemetry systems.

Type: Opportunity

Time Horizon:

Short-term

Derives from:

Other (market)

Increased

sales of

existing

products and

services

The Group sells rainwater harvesting and

telemetry systems. As water stress and

water availability become more severe in

the coming decades, we anticipate an

increased demand for these products can

lead to increased sales and revenues.

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to water stress and dependency

on water (see more detailed

explanation and heatmap above)

and action plans developed, as

needed. The site-specific action

plans will have a focus on the

local nature of water and local

circumstances. As mentioned above,

no priority sites were identified in

2024, therefore there are no specific

actions at the Group level related

to water. As the Group grows, our

methodologies will evolve. In 2024,

we have not set targets related to

our material IROs for E3. The Group

tracks the effectiveness of the WS

of our Environmental Policy through

our internal environmental data

collection and reporting processes.

However, as part of Planet

Passionate, we have set a voluntary

water-related target; to harvest 100

million litres of rainwater annually

by 2030. The target covers all Group

manufacturing, assembly and R&D

sites. Harvesting rainwater helps

our sites reduce their impacts and

alleviate stress on local aquifers

and water systems by withdrawing

less freshwater from third-party

providers or groundwater sources.

This target was not designed to

address any of our material impacts

or risks, however, helps further our

goal of playing a role in helping

address global environmental

challenges and be a good neighbour

to our local communities.

ESRS E4 – BIODIVERSITY

AND ECOSYSTEMS

Interaction with

other ESRS

a) Climate change, which

addresses in particular GHG

emissions, is covered in E1 -

Climate change.

b) Pollution, which addresses

pollution to air, water and soil is

covered in E2 – Pollution.

c) Transition away from extraction

of non-renewable resources and

the implementation of practices

that prevent waste generation,

including pollution generated

by waste, is addressed in

E5 – Resource use and circular

economy.

ESRS 2 – SBM-3 and

E4-1 - Transition plan

and consideration

of biodiversity and

ecosystems in strategy

and business model

The results of the DMA (see section

ESRS 2 IRO-1 for more information

on how we identified and assessed

our biodiversity-related IROs)

showed that our most material

impact on biodiversity from our

operations (based on the type and

nature of our activities) is pollution

and our most material dependency

is water availability. As presented in

the E3 – Water and marine resources

section, our water-related impacts

are not deemed material, so in turn,

we do not consider our dependency

and hence risks, on the biodiversity

water provisioning services as

material.

Similarly, as outlined in the E2 –

Pollution section, we do not consider

pollution to air, water and soil and

pollution caused by SoC/SVHC as

material sub-topics for our own

operations based on our assessment

to date. The Paper & Forest Products

parts of our business are associated

with an increased number of

material impacts and dependencies,

but their contribution to the Group-

level materiality was assessed and

deemed not material (based on

contribution to revenue and size).

Furthermore, we recognise that

climate change is inextricably linked

with biodiversity loss and ecosystem

integrity, so we also consider our

impact via climate change as a key

pressure on biodiversity as material.

Examining these results through

another high-level filter, namely the

direct impact drivers on biodiversity

loss, as outlined in CSRD, some

commonalities are visible that

showcase the nature of our impacts

based on our industry.

Material impacts and

dependencies at the Group

level based on the WWF

Biodiversity Risk Filter (BRF) tool:

» Dependency - water scarcity:

deemed to be not material

after additional analysis (see

E3 - Water and marine resources

section for more detail);

» Impact – pollution: deemed not

material for our own operations

(see E2 - Pollution section for

more detail).

Key biodiversity impact

drivers (source: CSRD, ESRS

4 – paragraph 4):

» Climate change – material

covered in E1 - Climate change;

» Land-use, freshwater and sea-

use change – not applicable;

» Direct exploitation – not

applicable;

» Invasive alien species - not

applicable; and

» Pollution - deemed not material

for our own operations (see E2 –

Pollution for more information).

Finally, we have not identified

material negative impacts with

regards to land degradation,

desertification or soil sealing.

Site materiality and site

proximity to biodiversity-

sensitive areas:

Due to the type and nature of our

material impacts on biodiversity, we

have not provided a list of material

sites with activities that negatively

affect biodiversity sensitive areas.

We recognise that further analysis is

needed to determine the existence

and magnitude of impacts on

biodiversity sensitive areas. We

aim to do so in the coming years

pending the availability of detailed

biodiversity footprinting tools.

Due to the location of our activities,

the nature of our impacts and our

proactive management approach,

we assessed that we do not have

operations that affect threatened

species. As we refine our approach

and more sector-specific tools

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197

become available, we will reassess

the materiality of our impacts on

threatened species.

Value chain:

Given the location specific nature of

biodiversity, assessing IROs across

our extensive value chain poses a

greater challenge. Even though

we used the BRF tool to assess the

impacts and dependencies of our

upstream value chain, we realise

that it is going to take a lot of

resources, including collaborative

effort, to assess our value chain

IROs in detail. In the meantime

and in the absence of conclusive

evidence, we have applied the

precautionary principle and

classify our upstream impacts on

biodiversity as material. We will

monitor this situation, in line with

our SHREDD Policy and through

our current supplier due diligence

process. We aim to further progress

our analysis when tools and

guidance mature.

Material impacts related to Biodiversity and ecosystems

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Negative

impact – actual

Value chain

stage: Own

operations

Climate

change

Climate change is one of the key

impact drivers on biodiversity and

ecosystems degradation and as

explained in the E1 - Climate change

section, the Group has material

impacts on climate change from its

own operations.

» Policy: In 2024, the Group updated

its Environmental Policy to include

considerations and provisions

aligned with our biodiversity-related

IROs.

» Decarbonisation plan: The Group

developed a transition plan (the

Plan) for climate change mitigation.

The Plan comprises mitigation levers

for scope 1, 2 and 3 GHG emissions

and is underpinned by our carbon

targets, which are set out as part of

the Planet Passionate programme.

Type: Negative

impact – actual

Value chain

stage:

Upstream

Climate

change

Climate change is one of the key

impact drivers on biodiversity and

ecosystems degradation and as

explained in the E1- Climate change

section, the Group has material

impacts on climate change from its

upstream value chain.

Type: Negative

impact – actual

Value chain

stage:

Upstream

Pressures on

biodiversity

Direct drivers or pressures are

impacts that unequivocally

influence biodiversity and ecosystem

processes. Areas with high pressures

on biodiversity are likely to decline

in the future, independent from

whether the current status of

biodiversity is intact or already

compromised. This risk category

includes the following pressures on

biodiversity: land, freshwater and

sea use change; tree cover loss;

invasives and pollution.

» Policy: In 2024, the Group updated

its Environmental Policy to include

considerations and provisions

aligned with our biodiversity-related

IROs.

Planet Passionate, our Group

environmental sustainability

programme, which is one of our

four strategic pillars, aims to help

tackle climate change, promote

circularity and the protection of the

natural world. Planet Passionate is

deeply embedded in our business

model and strategy. We did not

perform a resilience analysis

related to biodiversity because

we’re still exploring the implications

of different biodiversity-related

scenarios on our strategy. We aim to

do so in the coming years pending

the availability of relevant tools and

guidance. In addition, based on

the above analysis and the nature

and materiality of our biodiversity

IROs, we believe that our business

model/ strategy is to a large extent

compatible with global public policy

ambitions and targets. For example,

many of the Kunming-Montreal

Global Biodiversity Framework’s

targets are not relevant for the

Group (e.g. invasive species, wild

species, genetic resources and

biotechnology), showing that much

of the international focus is in areas

where the Group is not involved in.

With a trading presence in over 80

countries and 273 manufacturing

facilities, our geographical

diversification enhances the

resilience of our business model,

reducing exposure to localised

biodiversity risks and allowing us

to adapt to regional ecosystem-

related regulatory changes, while

also capturing opportunities for

sustainable growth.

E4-2 - Policies

The Biodiversity Appendix (BA)

of our Environmental Policy was

developed based on the identified

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impacts, risks, dependencies and

opportunities related to biodiversity

and ecosystems. With the BA we

aim to manage and mitigate our

material direct impact drivers as

identified in our materiality analysis

(e.g. climate change) and support

the traceability of timber products,

by obtaining relevant certification

for material timber quantities. The

BA also covers all sites that are in or

near biodiversity areas and does not

cover: sustainable land/agricultural

practices, invasive alien species,

sustainable oceans/seas practices,

deforestation commitments,

production, sourcing or consumption

from ecosystems that are

managed to maintain or enhance

conditions for biodiversity and social

consequences of biodiversity and

ecosystems-related impacts.

Divisional MDs are responsible for

the implementation of the BA.

Based on the nature and materiality

of our IROs, we concluded that

it is not necessary to implement

biodiversity mitigation measures,

such as those identified in: Directive

2009/147/EC of the European

Parliament and of the Council on

the conservation of wild birds;

Council Directive 92/43/EEC on the

conservation of natural habitats

and of wild fauna and flora; an

Environmental Impact Assessment

(EIA) as defined in Article 1(2),

point (g), of Directive 2011/92/EU

of the European Parliament and of

the Council on the assessment of

the effects of certain public and

private projects on the environment;

and for activities located in third

countries, in accordance with

equivalent national provisions or

international standards, such as the

International Finance Corporation

(IFC) Performance Standard 6:

Biodiversity Conservation and

Sustainable Management of Living

Natural Resources.

E4-3 - Actions

As explained above, our material

biodiversity-related IROs are

connected to climate change for

our own operations. To address the

biodiversity IROs related to climate

change, we have developed a

detailed transition plan for climate

change mitigation to ensure our

business model is compatible with

a 1.5°C future, in line with the Paris

Agreement. The plan will help us

not only reduce our GHG emissions,

but also reduce our climate-related

biodiversity impacts. We do not

use biodiversity offsets in any of

our action plans. More details

on the plan are presented in the

E1- Climate change section of

this Report. The Group has not

implemented additional biodiversity

specific actions.

E4-4 - Targets and E4-5 -

Impact metrics

Our targets relate to our material

IROs for our own operations

(i.e. climate change). They are

not directly linked to ecological

thresholds nor informed by relevant,

global/regional biodiversity

frameworks and strategies. For

targets that address the climate

change-related biodiversity IROs,

we have set GHG mitigation

targets that serve as the basis for

our transition plan. More details

on the targets are presented in

the E1- Climate change section

of this Report. The Group has not

set additional biodiversity specific

targets.

Similarly, our progress against

our targets is monitored using

relevant metrics. We are not

reporting impacts metrics related to

biodiversity and ecosystems change

for this reporting period as we have

concluded we do not materially

contribute to:

» the impact drivers of land-use

change, freshwater-use change

and/or sea-use change;

» the accidental or voluntary

introduction of invasive alien

species; and

» the state of species.

For our analysis on a number of

sites near or in biodiversity sensitive

areas, see site materiality and site

proximity to biodiversity-sensitive

areas section.

ESRS E5 - RESOURCE

USE AND CIRCULAR

ECONOMY

Interaction with other

sustainability topics

a) GHG emissions and energy

resources (energy consumption)

are covered in E1 - Climate

change.

b) Emissions to water, air and soil

and substances of concern are

covered in E2 – Pollution.

c) Water management and water

harvesting are covered in E3 -

Water and marine resources.

d) Interaction of the Group’s

activities and processes with

ecosystems, species and raw

materials are covered in E4 -

Biodiversity and ecosystems.

ESRS 2 – SBM-3

The majority of the Group’s

material IROs are in our upstream

and downstream value chain.

Our use of virgin, non-renewable

materials across the business has

an impact on resource depletion.

However, the durability of our key

product categories, with typical

expected lifespans of approximately

50 years, has a positive impact by

reducing or eliminating the need

for replacement during the lifespan

of a building and therefore can

contribute to reduced demand for

raw materials.

We identified both material risks and

opportunities in relation to evolving

customer behaviour and potentially

increasing demand for solutions with

higher recycled and/or renewable

content and end of life solutions that

can help reduce upstream resource

depletion and material leakage from

the economy.

The Group’s waste from its own

operations was not identified as

material. However, we have a

robust waste management and

monitoring process in place with

the aim to minimise our impact, to

the extent possible.

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Material impacts, risks and opportunities related to Resource use and circular economy

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Positive

impact - actual

Value chain stage:

Upstream

Reduce resource

depletion due

to long life

of products

(durability –

typically around

50 years)

The average durability of

the Group’s key building

products (approximately

50 years) prevents the

need for replacement

through the lifespan of a

building and therefore can

reduce the overall material

impacts on the upstream

use of materials.

» Policy: In 2024, the Group updated

its Environmental Policy, including

considerations and provisions aligned

with circular economy-related IROs.

» LIFECycle Product Framework -

Input Materials: Input materials,

which is a lever of our circular

economy programme, was designed

to help us increase the use of recycled

and renewable raw materials, in line

with our new recycled and renewable

raw materials target.

» Innovation: Decarbonisation of our

product portfolio is a key focus area

for innovation. We aim to achieve this

through two main strategies: refining

existing products with lower carbon

and increased recycled content

alternatives and exploring new bio-

based materials and solutions e.g.

QuadCore LEC

insulated panel,

RMG600+ and Tate Grid+ LEC.

Type: Positive

impact – potential

Time Horizon:

Long-term

Value chain stage:

Upstream

Reduce resource

depletion from

increased use of

recycled and/or

renewable raw

materials

The Group has a strategy

to increase use of

recycled and renewable

materials, in production

processes. This could lead

to a reduction in resource

depletion.

Type: Negative

impact – actual

Value chain stage:

Upstream

Resource depletion

from use of non-

renewable and/

or virgin raw

materials

The Group uses virgin,

non-renewable materials

in products across the

business and while certain

materials can be reused or

recycled, this does result in

depletion of resources.

Type: Risk

Time Horizon:

Long-term

Derives from:

Other (market)

Changing

customer

behaviour -

Increased demand

for products with

recycled and /or

renewable content

Increased emphasis being

placed on the recycled

and/or renewable content

when selecting products,

could impact market

share of existing products,

resulting in reduced

revenues.

» LIFECycle Product Framework -

Input Materials: Input materials,

which is a lever of our circular

economy programme, aims to

increase the use of recycled and

renewable raw materials, in line with

our new recycled and renewable raw

materials target.

» Innovation: Decarbonisation of our

product portfolio is a key focus area

for innovation. We aim to achieve this

through two main strategies: refining

existing products with lower carbon

and increased recycled content

alternatives and exploring new bio-

based materials and solutions e.g.

QuadCore LEC

insulated panel,

RMG600+ and Tate Grid+ LEC.

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The Group’s strategy to mitigate

impacts, reduce risk and capitalise

on opportunities through policies

and actions is explained in the

following sections.

E5-1 - Policies

As a global manufacturer, we are

committed to helping to accelerate

the use of circularity practices

within our industry. To achieve

this, we have included a dedicated

Circular Economy Section (CES)

within our Environmental Policy.

As part of the DMA process, key

internal and external stakeholder

groups including regulatory

bodies, shareholders, customers,

employees, industry associations

and community organisations were

consulted through surveys and

interviews. Their feedback has been

considered in the CES, along with

circularity principles as outlined in

The UN Environment programme

and World Economic Forum Centre

for Nature and Climate.

The CES aims to further integrate

circular economy into our

environmental strategy and

consider circularity principles

throughout the Group’s operations

and product development

processes. The CES aims to achieve

this by outlining our approach

to managing, preventing and

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Risk

Time Horizon:

Long-term

Derives from:

Other (market)

Changing

customer

behaviour -

Increased demand

for products

with end of life

recycling or reuse

options

Increased customer

emphasis on recyclability

when selecting products,

could impact market

share of current products,

resulting in reduced

revenue.

» LIFECycle Product Framework-

Cycling: Developing a range of

options to help keep materials and

products that reach the end of their

service life circulating within the

economy, in line with our target. We

aim to do this through partnerships

and the deployment of in-house

mechanical and chemical recycling

facilities, such as Winterswijk’s

glycolysis plant and Derbigum’s No

Roof to Waste Scheme.

Type: Opportunity

Time Horizon:

Long-term

Derives from:

Other (market)

Changing

customer

behaviour -

Increased demand

for products with

recycled and/or

renewable content

Opportunity to take steps

to become a market

leader in the production

of products with increased

recycled/renewable

content, resulting in

increased revenue.

» LIFECycle Product Framework -

Input Material: Input materials,

which is a lever of our circular

economy programme, aims to

increase the use of recycled and

renewable raw materials, in line with

our new recycled and renewable raw

materials target.

» Innovation: Decarbonisation of our

product portfolio is a key focus area

for innovation. We aim to achieve this

through two main strategies: refining

existing products with lower carbon

and increased recycled content

alternatives and exploring new bio-

based materials and solutions e.g.

QuadCore LEC

insulated panel,

RMG600+ and Tate Grid+ LEC.

Type: Opportunity

Time Horizon:

Long-term

Derives from:

Other (market)

Development and

deployment of

solutions to divert

products from

landfill and/or

energy recovery

Development and

deployment of solutions

for end of life of products.

» LIFECycle Product Framework

- Cycling: Developing a range of

options to help keep materials and

products that reach the end of their

service life circulating within the

economy, in line with our target. We

aim to do this through partnerships

and the deployment of in-house

mechanical and chemical recycling

facilities, such as Winterswijk’s

glycolysis plant and Derbigum’s No

Roof to Waste Scheme.

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# Target name Target year Target (Million Tonnes)

1 1.5 million tonnes recycled and renewable

raw materials used annually

2030 1.5

Target context and additional information

Overview: Aim to increase our use of recycled and responsibly sourced, renewable materials in our material

inflows. We have set this target to directly address our material IROs related to material inflows. In order to

mitigate negative impacts on biodiversity and ecosystem degradation, the renewable content must be procured

from sources using responsible production practices, in line with our Environmental Policy. The target supports the

embedding of circular design principles and aims to increase the circular material use rate.

Scope: This target aims to increase the recycled and renewable content in the raw materials used in the

manufacture of our products, the scope of which includes materials such as metals, chemicals, mineral fibre and

bio-based materials.

Target monitoring/ progress outlook/ trends: This is a 5 year target, starting in 2025. Progress towards this

target will be made through the supplier engagement programme, increasing the procurement of lower embodied

carbon and high recycled content raw materials.

Linked LIFECycle themes and actions: Input materials.

mitigating actual and potential

impacts, addressing risks and

pursuing opportunities related

to the circular economy. The

CES outlines our aim to increase

our use of secondary and

sustainably sourced, renewable

raw materials. In addition, it also

addresses our aim to follow the

waste hierarchy when managing

our waste generation from our

manufacturing processes and to

report in a clear and transparent

manner. As a result, the CES has

a direct impact on the setting of

our targets and actions, which

are managed through our Planet

Passionate programme. Further

detail is provided in the Actions &

Targets section. Divisional MDs are

responsible for the implementation

of the CES, which is made available

to relevant stakeholders and on our

website.

E5-2 - Actions and E5-3 -

Targets

As a global manufacturer,

enhancing the circularity of our

products is a key focus. Our

strategic actions related to resource

use and the circular economy

are underpinned by our LIFECycle

Product Circularity Framework.

This framework is aligned with

internationally recognised

Circular Economy principles. The

LIFECycle Framework shall assist

in embedding these principles

within our operations and our

upstream and downstream value

chain through the lean design for a

circularity approach. The framework

addresses four key themes:

» Input materials;

» Factory processes;

» Extended life models & reuse;

and

» Cycling.

To achieve our policy objectives the

Group has set voluntary targets,

outlined below, which cover all

Group manufacturing, assembly

sites and R&D centres. Through the

achievement of our targets, we aim

to increase our use of recycled and

renewable raw materials, reduce

waste to landfill, develop recycling

technologies and facilitate the

takeback and reuse or recycling of

our products in key markets. Our

circular economy targets are built

on the recommendations from our

DMA and designed to help address

our material impacts, risks and

opportunities identified. Our targets

have been set considering the

scientific evidence that the current

global rate of natural resource

consumption is at a rate of 1.7

times

the rate that our planet’s

biocapacity can regenerate and

that accelerating a transition to a

circular economy can greatly help to

alleviate the resource pressures on

our planet.

Input from relevant stakeholders was

considered and targets were set to

mitigate negative impacts and risks.

These targets focus on increasing

our use of renewable and recycled

resources, developing products

with improved environmental

performance and innovating to meet

customer and market demands.

Our strategy aims to contribute to

the acceleration of the transition

to a more circular economy. Waste

data is collected at site level and

reported through our Group wide

sustainability reporting software

platform. Our target to facilitate

product takeback and recycling

schemes has been set based on an

assessment of our material flows

and product families. Further details

for each of the targets are provided

below.

Note 1: World Economic Forum, Circular

Transformation of Industries, 2023.

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# Target name Target year Target

2 Facilitate 20 product takeback and

recycling schemes

2030 20

Target context and additional information

Overview: We aim to improve the end of life or end of first use options for our products and materials. For

construction products, extended life models can take many forms and this target was designed to help us

manage our IROs for resource outflows through a variety of solutions aiming to reduce material leakage from the

economy. It also helps provide another driver for circular product design to consider the use phase and the end of

functional life of our products and materials to improve the durability, disassembly, repairability and recyclability

of our products as we aim to accelerate our progress towards this target.

Scope: This target aims to improve the end of life options for key products in key markets.

Target monitoring/ progress outlook/ trends: This is a five year target starting in 2025. The Group is managing

a number of internal projects including but not limited to the technical development of recycling solutions. These

projects are assisting in building the pipeline of LIFECycle schemes to be offered to the market by 2030.

Linked LIFECycle themes and actions: Extended life models and cycling.

# Target name Target year Target (%) Progress to date

3 Zero company waste to landfill

(90% reduction from 2020)

2030 90 33%

Target context and additional information

Overview: Prevention of material leakage from the economy is a key focus in the implementation of our

circularity strategy. This target is designed to manage our IROs for resource outflows in relation to waste and

development and deployment of solutions to divert waste from landfill. It was designed to directly prevent waste

going to disposal, the least preferred stage in the waste hierarchy and address improving the circularity of the

end of functional life of the materials we use.

Scope: All manufacturing, assembly and R&D sites within the Group, including business acquired on or prior to

30 September 2024. The impact of acquisitions after this date were estimated and deemed not material at the

Group level.

Target monitoring/ progress outlook/ trends: The Group has reduced waste to landfill by over 33% since 2020

(18,622 tonnes). This includes additional waste to landfill from acquisitions of over 5,000 tonnes since 2020.

Linked LIFECycle themes and actions: Factory processes and cycling.

Target Waste Hierarchy

1.5 million tonnes recycled and renewable raw materials used annually Prevention

Facilitation of 20 product takeback and recycling schemes

Preparing for re-use

Recycling

Zero company waste to landfill (90% reduction from 2020)

Other recovery

Disposal

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We have completed actions and

planned further steps to support

the progress of our targets in

each theme of the LIFECycle

product framework, along with

the overarching aim to develop

our new and existing products

with circularity principles in mind,

denoted within the framework as

Lean Design for Circularity.

Lean Design for Circularity

Circular economy is considered

as part of our sustainability

focused innovation strategy

during the development of new

products. By incorporating circular

design principles in construction

product design, we can seek to

design processes with the vision

of minimising the embodied

carbon and end of life impacts of

construction products and projects.

At our Global Innovation Centre,

IKON, we have incorporated a

sustainable design review process

into our product development

stage gate process including

considerations for longevity,

reusability, disassembly and

recyclability.

While existing and upcoming policy

and legislative frameworks aim to

incentivise and enable the transition

to a circular economy, models within

the built environment (including but

not limited to reuse, refurbishment

and reverse logistics) are not yet

widespread. This is crucial to enable

circularity at scale in our industry.

Moving forward, we aim to actively

work with industry partners with

the intention of addressing these

issues and will continue to adapt our

approach as the topic evolves.

Lever: Input Materials

The use of recycled, bio-based and

recyclable input materials that are

responsibly sourced is an important

element of our circularity strategy.

We are working to increase our

use of recycled materials whilst

also exploring potential bio-based

raw material options for future

products.

Completed actions:

In 2024, we have achieved our

target to recycle 1 billion PET bottles

annually into our manufacturing

processes, one year ahead of

schedule. This target contributes

towards mitigating resource

depletion by consuming secondary

recycled raw materials.

Steel has been one of the key focus

areas as it significantly contributes

to the embodied carbon of our

insulated panel products. In 2021,

the Group invested in Stegra,

a manufacturer of green steel

(formerly H2 Green Steel), reflecting

its intention to establish a long-term

supply agreement to meet a share

of its future steel requirements.

This will contribute to our recycled

and renewable content target (see

Target #1 above).

In 2023, the Group launched

HemKor

, our first bio-based

insulation product range largely

made of hemp. HemKor

represents

a significant step forward in the

Group’s strategy to combine

advanced material science, bio-

based products and product

innovations which can help to

reduce embodied carbon emissions

in buildings. In 2024, the Group

acquired a controlling stake in

Steico, a wood fibre insulation

manufacturer, increasing the use

of renewable raw materials and

supporting our strategy to offer the

full spectrum of insulation solutions

to our customers.

Planned actions:

Our procurement and sustainability

teams are actively engaging with

suppliers to source raw material

options with lower embodied

carbon and higher recycled or

renewable content. This aligns with

our target of utilising 1.5 million

tonnes of recycled and renewable

raw materials by 2030. For further

information on our supplier

engagement strategy and planned

actions see section E1-1 - scope 3

GHG emissions.

Lever: Factory Processes

We aim to increase resource

efficiency in factory processes

to minimise the generation of

waste. When production waste

cannot be reintroduced back into

our manufacturing processes,

we seek to repurpose and recycle

it into other products thanks to

established partnerships with other

industry stakeholders.

Completed actions:

We have made strong progress

on waste segregation and we are

continually improving our waste

data collection systems and

processes. The strategic focus on

segregation of waste helps to divert

eligible waste streams from landfill.

This allows for increased visibility

on material flows and highlights

areas for improvement. As part

of the effort to improve waste

management and segregation,

various sites have conducted waste

diversion training for employees

which involves education around

good waste management

practices. Implementation of waste

segregation programmes have

reduced municipal waste to landfill

by over 75% since 2020.

Our Brazilian business has

developed a new product called

EcoPIR using remanufactured

production waste from the insulated

panel process. This significantly

reduces waste sent to landfill. Due

to the introduction of this new

process, our site at Araquari has

achieved zero waste to landfill

certification from the Zero Waste

International Alliance. We also work

closely with our waste contractors

where possible to maximise

the diversion of our waste from

landfill. In some cases, we may

use multiple waste contractors to

ensure appropriate management

of different waste streams. The

combination of said actions

completed to date has contributed

to waste to landfill reduction of 33%

since 2020.

Planned actions:

The Group will continue to invest

in improving material efficiency in

our manufacturing processes while

focusing on waste management,

segregation and data collection

systems to drive progress

towards minimising material

leakage from the economy. The

pipeline of projects will focus on

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finding recycling solutions for

traditionally difficult to recycle

materials (including technologies

to separate heavily mixed waste

materials), finding new reuse

and remanufacturing pathways

for manufacturing waste and

finding new partnerships to

support the development of

circular infrastructure where

existing recycling pathways are

not available. Our planned actions

will aim to continue to reduce

and ultimately minimise material

leakage from our factory processes

in line with achieving our zero

company waste to landfill target by

2030.

Lever: Extended Life Models

and Reuse

Extended life models or reuse of

products is critical to reduction of

material leakage from the economy

and can take many forms. Due

to construction and demolition

practices and current regulations, it

can be challenging to find ways to

reuse or extend the life of a building

product.

Planned actions:

With the introduction of our new

target, we are planning to develop

alternative end of life solutions

for our products in key markets to

help reduce material leakage from

the economy. These solutions will

include takeback schemes, support

of industry extended producer

responsibility programmes and

collaboration with key partners

to help us achieve our goals, in

accordance with the aims set out

in the CES and in line with our

target of facilitation of 20 product

takeback and recycling schemes by

2030. Multiple internal and external

stakeholders have been engaged

in developing a roadmap for the

development of solutions across

key European and US markets in

product sets including insulated

panels, daylighting and data and

flooring products.

Lever: Cycling

Where feasible, we strongly

advocate for reuse over recycling.

However, as this is not always

possible, we are also exploring and

implementing cycling options to

keep materials within the economy.

We are involved in ongoing projects

to develop and implement chemical

and mechanical cycling solutions

for products and materials at each

stage of production, installation and

end of life, as well as finding new

purposes for waste generated in

production.

Completed actions:

An example is our partnership

with BelterTech, a company that

makes products containing up to

85% recycled content from post-

consumer and post-industrial

waste, which help recycle PIR

(polyisocyanurate) insulation waste.

BelterTech uses the insulation waste

to make a variety of products

including cement fill, ceiling tiles

and panel products.

The Group has also developed a

chemical recycling process which

is taking place on two of our

manufacturing sites: Castellbisbal

(Synthesia) and Winterswijk

(Insulation). The Winterswijk

recycling process has the capacity

to manage up to 500 tonnes of

insulation waste from production,

annually.

Planned actions:

Focusing on a 2030 time horizon,

the Group will expand the ongoing

projects to support operations

in other regions, which are

currently underway and outlined

in the completed actions above.

The Group has now built both

mechanical recycling solutions

and chemical recycling solutions

for insulation materials with the

construction of further recycling

facilities envisaged. The Group

has plans to build more recycling

facilities which will significantly

contribute to our target of 20

takeback and recycling schemes

and zero waste to landfill targets by

2030.

E5-4 - Resource inflows

Our 273 manufacturing sites produce

a wide range of products for the

construction sector, utilising a variety

of raw materials.

The use of sustainably sourced,

biological raw materials is an

important element of our circularity

strategy, as stated in the CES. In

2024, 95% of our biological raw

materials are certified as sustainably

sourced by PEFC (Programme for the

Endorsement of Forest Certification)

and FSC (Forest Stewardship

Council). We also aim to increase

our use of recycled raw materials,

supporting the achievement of our

target. Since 2020, we have recycled

the equivalent of over 4 billion PET

bottles into our manufacturing

processes.

The table below provides further

detail on our resource inflows. Our

packaging materials have been

excluded from this disclosure as they

are not deemed a material resource

inflow.

Metric Unit 2024

Total weight of technical materials Tonnes 3,982,224

Total weight of biological materials Tonnes 352,744

Weight of secondary reused or recycled content Tonnes 316,341

Percentage of secondary reused or recycled content % 7

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205

Our total weight of technical and

biological raw material disclosure

is based on a variety of data

sources. Information related to the

procurement of our key raw materials

is collated monthly at group level.

Further raw material information

is collected annually, with the

balance of our raw material volumes

estimated based on our spend.

The disclosure of secondary raw

materials used throughout the year

is calculated based on product or

supplier specific recycled content

information, where available. If

specific recycled content data is

not available, industry averages for

the reporting period are applied.

We are continuously improving

our data collection and reporting

methodologies, with the aim of

increasing the accuracy of our

disclosure each year.

E5-5 - Resource outflows

Products and materials

The Group’s divisions manufacture

a variety of products for numerous

applications including, but not

limited to: insulation solutions (rigid

boards, bio-based, technical),

insulated panels, structural steel

products and systems, facades,

ceiling systems, raised access

floors and daylighting solutions.

Our reporting boundary for E5-5

encompasses the Group’s key

product groups and excludes

packaging as it is not deemed to be

a material resource outflow.

The Group takes actions to ensure

products can be aligned with circular

economy principles by considering

circular design principles during

product development, where

possible, such as designing for

durability, disassembly, recyclability

and repairability. The methodology

to determine product alignment to

circularity principles, detailed below,

included desktop research and

reference to our third party verified

Environmental Product Declarations

(EPDs), which can be found on our

website.

Circularity principle - Durability

Our insulation and insulated panel

products have long reference service

lives, typically around 50 years,

with the remainder of our product

portfolio between 25-60 years.

This reflects the fact our products

have been designed to last for the

typical lifespan of building projects,

depending on the end-use conditions

and material specification and

therefore have been designed for

durability.

Circularity principle - Disassembly

While current construction and

demolition practices do not always

prioritise disassembly, certain Group

products, such as insulated panels

and raised access floor products,

are prefabricated modular single

component units and site experience

has shown that they can be safely

disassembled for reuse or recycling.

The design of our products for ease

of disassembly also contributes to the

repairability of buildings where they

are installed.

Circularity principle - Recyclability

Certain products have been designed

considering recyclability with the aim

that their main constituent materials

can be separated at end of life to

maximise recycling potential. The

recyclability of our products vary

depending on the type of material

and application. Our product

portfolio also includes many products

which consist mainly of a single

material (such as steel, aluminium

or polycarbonate) which generally

can be recycled (or reused) by the

relevant industry. Our insulated

panels and insulation boards consist

of a variety of insulation materials

combined with steel or other facers.

The recycling of insulated panels

involves the recycling of the metal

and the insulation material which

may require further processing. The

separation of insulation materials

from the metal can be executed

manually, therefore such processing

can be undertaken at reclamation

plants. The metal components can

be recycled by the relevant metal

industry. Wood-based insulation

products, including Steico wood

fibre insulation boards form an

important part of our full spectrum

insulation product portfolio and

can also be re-introduced back into

production processes at end of life.

While recycling solutions exist for

insulation materials, they are not yet

considered widely recycled in practice.

However, we have set targets and

are undertaking initiatives (outlined

in the Targets and Actions Section)

to develop and support end of life

solutions for our products.

Circularity principle - Repairability

The repairability is not presented as

there are currently no international

standards or agreed metrics for

classifying the repairability of building

materials and construction products.

Our products, like all building

products, are designed to last. The

current available methodologies

for classifying repairability are not

applicable to building materials

because a discussion on repairability

will need to consider how the product

will contribute to the available circular

design choices and the repairability

of the building as a whole rather than

just the repairability of the product on

its own. Without these considerations

and without recognised international

standards or metrics, a meaningful

representation of repairability is

not possible therefore we have not

included repairability as a metric at

this time.

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Expected durability and recyclable content of key product groups

Key Product Group

Expected Durability

Recyclable Content

Insulated panels

1, 2, 3

40-60 31-69%

Insulation solutions

1, 2, 3

30-50 0%

Wood fibre insulation

1, 2, 3

50 81-91%

Structural steel products & systems

1, 2, 3

60 100%

Facades

1, 2, 3

50 97%

Ceiling systems

1, 2, 3

50 100%

Raised access floors

1, 2, 3

25 99%

Polycarbonate daylighting solutions

1, 2, 3

25-30 100%

While every effort has been made to ensure the accuracy and reliability of the information in this table, it is provided for general reporting

purposes only and should not be construed as definitive or exhaustive. The data and assumptions are subject to change and the information

does not constitute a guarantee of any specific product performance, durability or otherwise. Please refer to specific product guidelines and

recommendations for such information.

1 The above information for each Key Product Group is indicated based on a sample of products reviewed, within the product category and ranges

included where necessary to provide indication of variety of product parameters within said category.

2 Expected durability as stated above is indicated based on the Reference Service Life (RSL), durability or warranty, stated in EPDs, product

datasheets or brochures, where available.

3 Recyclable content is based on product material composition stated in EPDs, where available, or material composition stated in product

datasheets and brochures. Conservatively, only the metal portion of our insulated panel products has been included as recyclable, based on

product with thickness ≥ 100mm.

Description of methodologies,

criteria and assumptions used to

calculate data in relation to the

table above:

The expected durability is based

on the published reference service

life obtained from a representative

sample of product EPDs for

each Key Product Group. The

representative sample includes at

least one product from each major

product with similar performance

and characteristics.

The recyclable content is based

on the published material

composition data obtained from a

representative sample of product

EPDs for each Key Product Group.

The representative sample includes

at least one product from each

major product family with similar

performance and characteristics.

The recyclable content presented in

the table encompass closed loop or

open loop materials that are widely

recyclable in practice and at scale.

However, for insulation solutions,

although recycling technologies

exist and are available, we have

conservatively assumed these

materials to not yet be widely

recyclable in practice and therefore

they do not contribute to the

recyclable content in the table.

Waste reporting

The waste metrics provided below

encompass all of the Group’s

manufacturing and assembly sites,

as well as R&D centres. To ensure

accuracy and completeness of our

waste data, we have established a

comprehensive Environmental Data

Reporting Procedure, which sets

reporting requirements and overall

guidance for data collation and

reporting. Waste data is monitored

at the site level, with all applicable

sites required to report both

hazardous and non-hazardous

waste streams, along with the

relevant treatment methods, on a

monthly basis. Each waste fraction

entry is supported by applicable

evidence, increasing our confidence

in data accuracy. Data is collated

and reviewed at the group level by

the Group Sustainability team and

subject to an Internal Audit review.

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207

Metric (tonnes) 2024

Total amount of waste generated 172,261

Total amount by weight diverted from disposal 119,980

Non-Hazardous Waste 118,796

Preparation for reuse -

Recycling 118,631

Other recovery operations 165

Hazardous Waste 1,184

Preparation for reuse -

Recycling 1,178

Other recovery operations 6

Total amount by weight directed to disposal 52,281

Non-Hazardous Waste 44,571

Incineration 32,635

Landfill 11,936

Other disposal operations -

Hazardous Waste 7,710

Incineration 7,110

Landfill 600

Other disposal operations -

Total amount of non-recycled waste 52,452

Total percentage (%) of non-recycled waste 30.4%

Total amount of hazardous waste generated 8,895

Total amount of radioactive waste generated -

Note 1. Boundary: Whole Business includes manufacturing, assembly and R&D sites within the Group, excluding acquisitions made after 30

September 2024. The impact of acquisitions after this date were estimated and deemed not material at the Group level.

The relevant waste streams and waste composition is presented in the table below which represents the Group’s key

waste streams covering 94% of our total waste by volume.

Relevant waste streams and materials present in waste

Metals

Municipal, construction and demolition waste

Insulation materials

Chemicals

Paper and cardboard

Wood and wood production waste

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CSRD SUSTAINABILITY

STATEMENT

Zénith de Strasbourg

Strasbourg, France

Light, Air + Water

Ecofil lighting vault;

Ecofeu DV 110

ventilation rooflight

SOCIAL

INFORMATION

Annual Report & Financial Statements 2024

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Kingspan Group plc

209

ESRS S1 - Own Workforce

ESRS 2 - SBM-3

The material IROs related to our

own workforce have been identified

through a DMA. In alignment with

the ESRS standards, this section

includes only employees with

direct employment contracts,

encompassing full-time, part-time

and temporary staff across various

roles and functions. In accordance

with the one year transition

exemption, non-employee workers,

such as agency staff and sub-

contractors, are excluded from the

scope of this section.

We focus on key positive impacts,

including employee engagement,

learning and career development

and health and safety, through

our People Passionate programme,

which includes initiatives addressing

core people policies, including our

commitment to Human Rights.

While still in its first phase, the

programme has provided valuable

insights into workforce risks. The

nature of the Group’s operations

has the potential, in some

instances, to expose employees,

such as those directly engaged

in the manufacturing process, to

increased health and safety risks.

Each division already implements

comprehensive approaches tailored

to meet the specific needs of their

people and organisation.

Through risk assessments,

stakeholder engagement and

feedback collection, we have

developed a more informed

understanding of how different

roles, activities and individual

characteristics contribute to these

risks. This ongoing process informs

our proactive risk management

approach, helping us tailor our

internal controls and processes to

address the unique challenges faced

by different groups, ensuring the

well-being of all employees across

various contexts and functions.

In terms of negative impacts,

while no systemic issues have been

identified, any material negative

impacts related to occupational

health and safety would likely

manifest as individual incidents.

To address these risks, we have

implemented strict internal

controls, mandatory safety

training and a strong safety culture

supported by the rollout of ISO

45001 certification. ISO 45001 is an

internationally recognised standard

for occupational health and safety

management systems, designed to

improve employee safety, reduce

workplace risks and create safer

working conditions. Additionally, no

material impacts on the workforce

have been identified related to

our transition to climate-neutral

operations.

Through the ongoing development

of the People Passionate

programme, we have gained

insights into risks affecting

different workforce groups by

utilising stakeholder engagement,

risk assessments and feedback

mechanisms. This helps us better

understand and address the unique

needs and challenges faced by our

workforce.

The Group engaged and

collaborated with an external

consultant to develop a human

rights risk assessment framework

which included screening potential

risks of forced labour and child

labour within our operations. To

identify countries with elevated

risks, we consulted indices such as

the Global Slavery Index (GSI) by

Walk Free and Children’s Rights in

the Workplace by UNICEF.

Based on this assessment, the

Group has no operations in

countries considered at significant

risk of incidents of forced labour

or compulsory labour. However,

United Arab Emirates, China and

Vietnam, are considered to be

at significant risk of incidents of

child labour. Our presence in these

regions is limited, with less than

0.1% of Group employees located in

China. Building on this assessment,

we are updating and deploying

due diligence processes to assess

countries and/or Group sites at

significant risk of incidents of forced

labour or child labour.

Our assessment concluded that

the potential salient human rights

risks of forced labour and child

labour scored lower relative to other

risks. This is due to relevant internal

controls and policies, including The

Group’s Human Rights Policy and

Human Rights Charter, which apply

universally across all our businesses,

helping to mitigate localised risks

associated with forced or child

labour. For further information,

regarding how the Group applied

the indices through our global

approach to human rights please

refer to our Human Rights Policy.

The relationship between material

risks and opportunities arising

from workforce impacts is closely

aligned with the Group’s strategy

and business model. Our people

are central to the success of all four

of our strategic pillars; Innovation,

Planet Passionate, Completing the

Envelope and Globalisation. Failure

to manage workforce health, safety

and wellbeing could lead to material

negative impacts, while effectively

managing these aspects drives

innovation, productivity and long-

term business success. Furthermore,

our policies on ethical labour

practices enhance our reputation

and align with stakeholder

expectations, ultimately supporting

value creation.

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Material impacts, risks and opportunities related to own workforce

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Positive

Impact - actual

Value chain:

Own Operations

Career

progression

through

training and

development

The Group offers

comprehensive learning

and development

programmes, which

support employee career

progression. These

programmes foster skill

development, develop

leaders and facilitate

transitions from

academia to industry or

to more senior positions.

» People Passionate: The Group’s People

Passionate programme encapsulates key aspects

of talent management and engagement such

as performance evaluation, career development

and opportunities for upskilling.

» Talent, Management and Leadership

Development programmes:

- PEAK (Programme for Executive Acceleration

in the Company) targets middle to senior

managers to enhance leadership diversity and

expand the pool of future senior leaders in line

with the Group’s global growth.

- Executive Development Programme, in

partnership with INSEAD, supports the

Group’s senior leaders to engage with

enterprise level goals in a more collaborative

way while transforming their leadership

capabilities to drive significant long-term

growth.

- A suite of tailored programmes for frontline,

middle and senior managers is offered

globally.

- Graduates participate in the Yours to Shape

development programme.

- Early Career staff can undertake programmes

such as Developing Talent Programme and

Explore.

» Succession planning: The Group regularly

reviews its pipeline of leaders to support the

growth of the business as part of our Human

Capital risk assessment. The Group Head of

Leadership Development is responsible for

succession planning.

» Careers portal: The Group’s internal career

portal provides an open and transparent

forum for employees to learn about and

apply for career opportunities throughout the

Group. The Group has a strong track record of

fostering internal promotions across divisions,

demonstrating its commitment to employee

growth and development.

» Policies: Through key policies such as the

Group’s Inclusion and Diversity Policy and our

global Code of Conduct, the Group sets out the

Group’s commitment to equal opportunities,

integrity, honesty and compliance. Supporting

these are the Group’s Board Diversity Policy.

» Steering groups: The Group established a

Group Inclusion & Diversity (I&D) Forum in

September 2023.

» Surveys: The Group’s Global People Pulse Survey

gathers feedback with a view of identifying any

risks in the workplace related to diversity, equity

and inclusion.

Type:

Potential Risk

Time Horizon:

Short-term

Triggered by:

Our Impacts

Effective

talent

management

There is a potential

risk that some sites

might not effectively

manage talent

attraction, retention

and development. If

talent management

is inefficient, it could

lead to the departure

of skilled employees,

subsequently increasing

costs related to hiring

and training new

talent and operational

inefficiencies.

Type: Potential

Opportunity

Time Horizon:

Short-term

Triggered by:

Our Impacts

Learning and

development

programmes

The Group’s

comprehensive learning

and development

programmes support

career progression,

fostering skill

development, aiding

retention and ensuring a

skilled workforce for the

future.

Type: Positive

Impact - actual

Value chain:

Own Operations

Employee

engagement

programme

The Group is

continuously engaging

and implementing

various programmes

that promote wellbeing

of employees and a

collaborative working

culture.

Type: Positive

Impact - potential

Time Horizon:

Short-term

Value chain:

Own Operations

Equal

opportunities

The Group can

contribute to the

promotion of inclusive

policies in the areas

of recruitment,

training and career

development.

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211

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Positive

Impact - actual

Value chain:

Own Operations

Occupational

health and

safety

Initiatives promoting

health and safety can

enhance employees’

overall occupational

health and safety.

» ISO certifications: 122 of the Group’s

manufacturing sites are accredited to ISO

45001.

» Internal control mechanisms: The Group

closely monitors the performance of its health

and safety framework, using KPIs to track

adherence and identify areas for improvement.

Immediate and decisive action is taken in

response to any instances of non-compliance.

The Group Health and Safety Auditor provides

monthly reports and regular updates, including

a best practice league table, ensuring

continuous improvement and accountability

across the Group.

» Training and awareness: A robust health and

safety framework is in place throughout the

Group’s operations requiring all employees to

complete formal health and safety training on a

regular basis.

» Internal communications and network: A

Group health and safety reporting platform

was created to share best practice guidance,

safety alerts and report near misses and

safety concerns, ensuring that the entire

Group remains informed of key issues and

improvements. All safety professionals have

access to this platform, which also includes

detailed policies. Additionally, annual safety

forums bring together safety professionals to

review KPI performance, address challenges and

foster a community focused on sharing best

practices.

» Culture: The development of a strong

safety culture is driven by management and

employees at every level and is a core part of

doing business with integrity.

Type: Negative

Impact - actual

Value chain:

Own Operations

Occupational

health and

safety

Insufficient actions to

ensure health and safety

would negatively affect

employees’ overall

occupational health and

safety.

Type:

Potential Risk

Time Horizon:

Short-term

Triggered by:

Our Impacts

Occupational

health and

safety

Failures in health and

safety can lead to

injuries, illnesses, or

even fatalities among

employees, resulting in

significant human and

financial consequences.

Type: Potential

Opportunity

Time Horizon:

Short-term

Triggered by:

Our Impacts

Occupational

health and

safety

The Group recognises

that a safe workplace

builds trust, improves

performance and boosts

employee retention.

Type: Positive

Impact - actual

Value chain:

Own Operations

Established

Human Rights

Policy and

due diligence

procedures

The Group has

established

comprehensive policies

and procedures ensuring

safe and ethical labour

practices but also

significantly reducing

the risk of modern

slavery and human

trafficking.

» Internal and external policies: The Group has

established clear standards for ethical practices

and sustainability expectations across our own

workforce through key policies such as the

Group’s Human Rights Policy and the Code of

Conduct.

» Reporting mechanisms: The Group provides

anonymous reporting channels that allow

employees to raise concerns including but not

limited to ethical or human rights violations.

These mechanisms, outlined in our Human

Rights Policy, ensure that concerns can be

raised confidentially and are addressed through

appropriate processes.

Type: Potential

Risk

Time Horizon:

Short-term

Triggered by:

Our Impacts

Human rights

breaches

Potential breaches

of human rights

regulations could lead

to reputational damage,

litigation and may

impact the Group’s

ability to attract labour.

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ESRS 2 - SBM-2 - Interests

and views of stakeholders

The Group recognises its own

workforce as key stakeholders,

whose interests, views and rights are

integral to shaping our strategy and

business model. People are a critical

driver of the Group’s success and

our People Passionate programme

further integrates the interests and

views of our workforce into both our

business model and strategy.

S1-1 – Policies

The below policies apply to the

Group, its subsidiaries, joint

ventures and their directors, officers

and employees. These policies cover

all our businesses, wherever they are

located. The Group policies can be

accessed on our website:

https://www.kingspangroup.com/

en/about/policies/.

The Group policies relevant to the

material IROs related to our own

workforce, for which divisional MDs

are responsible, include:

The People and Organisation Policy

establishes global principles for

the implementation of our People

Passionate programme, ensuring

a balance between fair treatment

of employees and business needs.

The programme includes key

aspects of talent management and

engagement such as recruitment,

onboarding, training and

development, career progression,

opportunities for upskilling

and leadership development.

This supports effective talent

management, career progression

and learning and development

programmes.

The Code of Conduct, applicable

to all Group businesses, details

our commitment to responsible

behaviour and compliance with

laws and regulation. It outlines

how we commit to do all that

is reasonably practicable to

prevent personal injury and to

protect against work hazards

and environmental risks to

employees. This commitment is

reinforced through the Group’s

health and safety framework,

which implements the ISO 45001

standard to support robust

management of workplace

safety and risk prevention. This

supports occupational health

and safety. The Code of Conduct

also promotes our core values of

honesty, integrity and compliance

with the law, guiding our

behaviours and decision-making.

The Human Rights Policy outlines

our commitment to upholding and

promoting human rights values

in all aspects of our operations.

Aligned with International Labour

Organisation (ILO) conventions

and UN principles, it includes

mechanisms for reporting breaches

of human rights. For more

information on the salient human

rights risks we seek proactively to

identify, prevent or mitigate see our

Human Rights Policy.

The I&D Policy ensures inclusion,

diversity, equal opportunities,

equity and a sense of belonging

across our business. It promotes

a culture that values differences

and aims to eliminate workplace

discrimination. This policy supports

equal opportunities and fosters

a supportive and equitable

environment for all employees. As

part of our zero-tolerance approach

to discrimination in any form, we

are committed to encouraging

inclusion and diversity among our

workforce. While our policies do

not explicitly list specific grounds

for discrimination, we enforce

a comprehensive and robust

framework to ensure all employees

are treated fairly and with respect.

This framework is upheld through

communication of the policy,

training and awareness programmes

to promote understanding and

adherence. To ensure employees are

treated fairly, ultimate responsibility

for the policy’s implementation rests

with the divisional MDs. Additionally,

we provide access to remedy

through anonymous reporting

channels, including our global

confidential independent hotline,

which empowers employees to raise

concerns in a safe and

secure manner.

S1-2 - Processes for

engaging with own

workers and workers’

representatives about

impacts

Employee engagement played

a key role in shaping the People

Passionate programme. In 2023,

we established a Global Steering

Group representing all divisions

to contribute to the design and

implementation of this global

programme.

In 2023, we collaborated with

employee representatives to

establish a European Works

Council (EWC), which serves as

a platform for engaging with

our employees at the European

level on business strategy,

development, employment matters,

investments and transnational

issues. The EWC represents over

13,200 Group employees across 24

countries. Additionally, our Human

Rights Policy is aligned with ILO

conventions and UN principles

that outlines our commitment to

upholding and promoting human

rights values across all operations.

Employee engagement across

the Group is actively managed

at the local level, with the

frequency depending on the

type of interaction. There is

also positive interaction with

employee representatives and

works councils at the local

level. Internal communications

are supported by a network of

communication champions across

each division. The effectiveness

of the engagement is assessed

through various means, including

employee surveys and regular

review meetings. By continuously

integrating feedback from our

workforce into our strategic people

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Kingspan Group plc

213

programmes, we ensure that our

strategies and actions are informed

by their perspectives, leading to

more effective management of

actual and potential impacts.

The divisional MDs hold ultimate

responsibility for ensuring active

employee engagement.

Through our People Passionate

programme, we are actively

working to identify and

address workforce risks, across

varying employee categories

which may include groups

potentially vulnerable to impacts

or marginalisation. In the

programme’s first phase, valuable

insights have been gathered,

and we are continuing to refine

our engagement processes to

better understand and support

these groups.

See section ESRS 2 SBM-2 for

more information on stakeholder

engagement.

S1-3- Processes to

remediate negative

impacts and channels

for own workers to raise

concerns

The Group is committed to

achieving an open working

environment in which employees

feel able to report directly to their

line manager. However, in rare

circumstances when an employee is

not comfortable with that or feels

unable to do so, concerns may be

reported to Group legal teams or

through EthicsPoint. EthicsPoint

is a comprehensive, confidential

and entirely anonymous reporting

tool created by NAVEX Global to

assist management and employees

to work together in addressing

misconduct in the workplace, all

while cultivating a positive work

environment. For further details,

please refer to Section G1-1

regarding procedures that protect

the Group’s anonymous and

independently run hotline.

S1-4 - Actions

The Group has developed a

framework to address workforce

engagement wellbeing, career

development, health and safety

and ethical labour practices. These

initiatives are guided by senior

leadership to ensure that the Group

continues to foster a positive and

supportive workplace environment.

Below are the key actions that

support the Group’s approach to

addressing own workforce impacts,

risks and opportunities.

People Passionate Programme

The People Passionate programme,

endorsed by the Group CEO, is the

Group’s global initiative, launched

in 2023, focused on enhancing

employee engagement, career

development and wellbeing.

Phase 1 of the programme, which

will run from 2024 to 2026, was

communicated to the Group in 2023.

This programme builds on the

Group’s past successes while

identifying areas for improvement,

aiming to create a workplace where

employees feel empowered to

contribute their unique strengths

and perspectives. The programme

emphasises employee performance

and development, leadership

development and upskilling

opportunities, supporting the

Group’s ambition of maintaining

a highly engaged and productive

workforce. Progress and

effectiveness are monitored by

the Global Steering Group, with

key metrics such as retention rates

being reviewed regularly to ensure

alignment with business objectives.

The Group identifies appropriate

actions through a combination of

employee feedback and regular risk

assessments. These processes allow

the Group to proactively address

potential risks and capitalise

on opportunities for workforce

development and wellbeing.

Examples of dedicated resources

include, but are not limited to,

dedicated human resources teams,

digital learning platforms, employee

feedback tools such as pulse surveys

and leadership and management

development programmes aligned

to the Group’s Business drivers.

Learning and Development

Programmes

The Group offers a range of

learning and development

initiatives designed to support

talent progression, upskilling and

leadership development.

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Programme Objective Target

Yours to Shape » Build a pipeline of leaders for now and into the future

» Provide opportunities for graduate employees to form

networks across the Group

» Complement on the job functional development

Graduates are hired directly from

university into a full–time roles in

all divisions across the Group.

Explore (New

for 2025)

» Develop skills for self-leadership, interpersonal

effectiveness and team working

» Learn more about prioritising and being productive

» Develop core skills like change and resilience

» Learn about an approach to career development

For employees hired in the last 5

years and are at an early stage in

their working life.

Ignite » Transition from Peer to Boss

» Inspiring others to deliver results

» Planning and prioritisation

» Communicating with impact

Frontline team leaders or

managers or about to become a

manager for the first time.

Accelerate » Creating high performing teams

» Communication and engagement

» Strategic workforce planning

» Agility and pace

For team managers or managers

of team leaders.

Safety

Leadership

Programme

(New for 2025)

» Effective communication for safer workplaces

» Coaching and motivating at the front line

» Delegation and goal-setting at the front line

» The role of conflict and change in safety

Employees with safety leadership

responsibilities.

Evolve » Creating high performing organisations

» Energising teams and organisations

» Collaborating to achieve shared purpose

» Creating and sustaining fulfilling workplaces

Manager of managers, director,

member of leadership teams.

Transform

(New for 2025)

» Develop enterprise level leadership skillset, mindset and

toolkit

» Align organisational goals and drive strategic direction

across the business

» Leading at enterprise level, align resources, drive cross-

functional collaboration to deliver outstanding results

» Lead complex transformations and integrations and

tackle enterprise-level challenges successfully

Senior leaders with significant

leadership responsibility.

PEAK » Leading in a global business

» Grow and empower others

» Cross group networking and collaboration organisation

» Strategic thinking, vision and execution

Middle to senior leaders currently

responsible for effectively leading

and managing significant teams

and committed to even more

significant roles within the

Group.

Executive

Leadership

Development

in partnership

with INSEAD

» Engage with enterprise level goals

» Lead and drive significant long terms growth

The Group’s most senior leaders.

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215

These initiatives foster a culture

of continuous learning and

development, ensuring employees

are supported to perform their

current role and have the tools

they need to grow within the

organisation. Programme

evaluations including impact

evaluations as well as annual

talent forums and regular feedback

mechanisms allow the Group to

evaluate the effectiveness of these

programmes and adjust them

based on evolving workforce needs.

The Group’s divisions track metrics

internally, such as improving

employee engagement scores.

Tracking these metrics allows the

Group to assess the success of

its initiatives and make informed

adjustments as needed. Examples

of dedicated resources include, but

are not limited to, learning and

development teams, digital learning

platforms, mentorship programmes

and financial support for further

education.

Occupational Health and Safety

The Group takes a proactive

approach to occupational health

and safety, implementing the

ISO 45001 standard across our

manufacturing facilities. This

comprehensive safety framework

includes regular training, internal

audits and prompt corrective actions

when non-compliance is identified.

The Group continuously tracks

progress on ISO 45001 certification

through internal KPIs, including

monthly reports and best practice

league tables, provided by the

Group Health and Safety Auditor.

These help to ensure continuous

improvement, accountability and

alignment with the ISO 45001

standard. Health and safety is

prioritised at every level of the

organisation, with management

and employees actively promoting

a strong safety culture. To support

these efforts, the Group has

dedicated divisional health and

safety professionals.

Further initiatives to deliver positive

impacts include the creation of a

Group health and safety reporting

platform to share best practice

guidance, safety alerts and report

near misses and safety concerns,

ensuring that the entire Group

remains informed of improvements

and developments. All safety

professionals have access to this

platform, which also includes

relevant policies. Additionally,

our annual safety forums bring

together our safety professionals

to review KPI performance,

address challenges and foster a

stronger culture of safety through

collaboration and the sharing

of best practices. Examples of

dedicated resources include, but are

not limited to, health and safety

personnel, comprehensive training

programmes, provision of safety

equipment and investments in new

safety technologies.

Human Rights Policies and

Due Diligence

The Group has developed a Human

Rights Policy and Human Rights

Charter which includes an insight

into the ongoing development

of due diligence processes that

promote and safeguard ethical

labour practices across our

operations. This policy is designed

to mitigate human rights violations

where possible, such as modern

slavery and human trafficking

and to promote ethical standards

throughout the workforce. The

Group provides employees with

anonymous reporting channels

through the confidential

independent hotline, allowing

concerns about ethical or human

rights violations to be raised

and addressed confidentially. All

reported cases are investigated and

findings are shared with the Audit

& Compliance Committee. This

approach ensures that the Group

maintains high ethical standards

while mitigating the risks associated

with human rights breaches.

The Group’s commitment to human

rights not only aids in mitigating

potential risks but also enhances

our reputation as a responsible

and ethical employer, aligning

with core values, contributing to

talent attraction and retention and

aligning with global sustainability

initiatives. Examples of dedicated

resources include, but are not limited

to, the confidential independent

hotline for anonymous reporting and

dedicated compliance teams.

S1-5 - Targets

The Group’s People Passionate

programme is aligned with the

Group’s strategy and material

IROs related to own workforce.

The programme is a multi-year

initiative which aims to address

critical workforce priorities, with

the first phase running from 2024

to 2026, focusing on performance,

learning and career development,

health and safety and ethical

labour practices.

The next phase, spanning 2027

to 2029, will be informed by a

comprehensive employee feedback

exercise planned for 2026. This

complements current feedback

mechanisms, including employee

surveys and regular management

evaluations and reinforces a

continuous feedback loop, ensuring

that the relevant people policies

and initiatives remain responsive

to material IROs related to own

workforce.

The Group tracks the effectiveness

of its policies through qualitative

assessments such as surveys,

feedback and management

reviews. While specific quantitative

targets and a base year have

not yet been adopted, insights

gathered during this phase

will guide the development of

measurable targets and baselines

in future phases. This phased

approach ensures the programme

evolves to meet workforce needs

while remaining aligned with the

Group’s long-term strategy.

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S1-6 - Characteristics

of the undertaking’s

employees, S1-8 -

Collective bargaining

coverage and social

dialogue and S1-9

Diversity metrics

The Group’s reported employee

metrics encompass all businesses

controlled by the Group as of

the end of 2023, with additional

estimates reflecting acquisitions

made in 2024. This encompasses

employees with direct employment

contracts, including full-time,

part-time and temporary staff.

Employee numbers are expressed

as headcount.

In line with CSRD guidance, the

Group defines top management as

individuals occupying positions one

and two levels below the CEO. This

includes divisional MDs and their

direct reports.

The Group collates workforce data

quarterly at the group level. Data

collection is conducted at the

global divisional level, with each

division preparing and submitting

consolidated reports. Each division

is required to submit a standardised

template to the Group, detailing

workforce metrics, including

employee numbers, turnover and

diversity figures.

To further improve the accuracy,

consistency and efficiency of data

collection, an enterprise-wide

People and Organisation IT system

is being implemented across the

Group. This system will streamline

the process of recording and

reporting employee data, gradually

replacing the existing approach

and enhancing the integration of

workforce data across divisions.

The average number of persons

employed by the Group can be

reconciled with the information

reported in the Financial Statements

under Note 3.

Key employee figures for 2024:

Category Female Male Other Not

Disclosed

Total

Total number of employees

1,5

5,664 20,671 - 2 26,337

Percentage of total employees 22% 78%

Number of permanent employees

1,5

5,351 19,449 - 2 24,802

Number of temporary employees

1,5

301 1,201 - - 1,502

Number of non-guaranteed hours employees

1,2,5

12 21 - - 33

Average number of employees

3,5

25,401

Total number of leavers

4,5

4,520

Employee total turnover rate %

17.8%

Diversity metrics:

Category 2024

Number of males and females in top management

1,5

179 / 31

Percentage of males and females in top management 85% / 15%

Employees under 30

1,5

4,540

Employees aged 30–50

1,5

14,206

Employees over 50

1,5

7,591

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216

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217

Number of employees in countries representing at least 10% of total number of employees:

Country Total

Poland

1,5

3,533

United Kingdom

1,5

3,220

Collective bargaining coverage and social dialogue:

In 2024, 71%

of the Group’s total employees within the European Economic Area (EEA) were covered by collective

bargaining agreements. This figure excludes employees in non-EEA countries, in line with the one-year transition

exemption for non-EEA data collection.

Coverage Rate Collective Bargaining Coverage:

EEA Countries Only (>10% of

Total Employees)

1,5

Social Dialogue and Workplace

Representation: EEA Countries

Only (>10% of Total Employees)

1,5

0-19%

20-39% Poland

40-59% Poland

60-79%

80-100%

1 The number of persons employed by the Group at 31 December 2024.

2 Non-guaranteed hours employees are employed by the undertaking without a guarantee of a minimum or fixed number of

working hours.

3 The average number of persons employed by the Group in the financial year.

4 Total number of employees who left the division during the reporting period, excluding those who transferred within the

business and excluding contracted agency staff (non-employees).

5 Includes estimates for acquisitions completed in 2024.

The Group’s current methodology does not support a breakdown of employee numbers by gender at the country level. However,

we are actively developing our data collection processes and plan to provide this breakdown in future reporting cycles.

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S1-10 - Adequate wages

All employees across the Group

are paid an adequate wage, in

line with applicable benchmarks.

For the purpose of defining an

adequate wage, we use the

national minimum wage in each

jurisdiction, as specified by national

legislation or collective agreements.

The adequate wage indicator

is calculated by comparing the

wages of employees earning the

lowest wage (basic wage plus fixed

additional payments) with market

data on the minimum wage in the

respectivearea.

The Group is committed to ensuring

that all employees receive at

least the legal minimum wage in

every country where we operate.

As outlined in our People and

Organisation Policy, the Group

provides fair compensation for work

performed, including overtime,

in accordance with local laws,

individual contracts, or union

agreements. We regularly monitor

local wage standards to maintain

full compliance with applicable laws

andregulations.

In alignment with our Human Rights

Policy, this approach to assessing

and maintaining adequate wages

helps to mitigate potential salient

human rights risks related to wages

and benefits. By ensuring that all

employees are fairly compensated

for their work, the Group reduces

the risk of economic exploitation,

poverty-level wages and inequitable

treatment across its global

operations. Beyond meeting legal

requirements, we actively assess our

global compensation packages to

ensure they remain competitive and

aligned with market benchmarks.

This reflects our commitment

to protecting human rights

and fostering a responsible and

ethicalworkplace.

S1-14 - Health and

safety metrics

The Group’s health and safety

figures pertain exclusively to

employees in our manufacturing

sites, as these are the primary

focus of our health and safety

management system. Our total

number of work-related accidents

includes Group employees with

a contract of employment, as

well as agency workers and sub-

contractors. Agency workers are

defined as individuals employed

by an agency that has been hired

to supply staff for specific tasks

over a short period, without

placing the individual on a short-

term employment contract with

the Group. Sub-contractors are

employed by third parties and hired

to perform specific tasks, either

for a fixed price or a daily rate, but

are not on short-term employment

contracts with the Group.

The Group tracks and monitors

health and safety data on a

monthly basis at the group level.

Data is collected monthly at the

divisional level, with each division

required to submit a standardised

template to the Group Health

and Safety Auditor. This template

details key metrics, including the

number of total recordable and

lost time accidents, which are then

reported to senior management to

ensure continuous oversight and

improvement.

We are deeply saddened to report

that during the year, a fatal

accident occurred at one of our

recently acquired Steico facilities.

Training has been undertaken and

policies updated to incorporate

learnings from this tragic incident

and to strengthen our commitment

to health and safety.

Health and safety metrics:

Unit 2024

Share of workforce covered by the health and safety

management system

% 84

Fatalities

Number 1

Total recordable work-related accidents

Number 523

Total recordable rate of work-related accidents

Per million hours worked 12.9

1 The percentage of workforce covered by the health and safety management system pertains exclusively to employees in our

manufacturing sites, as these are the primary focus of the system.

2 Fatalities refer to the number of employees who lost their lives due to work-related injuries or ill health.

3 Injuries that result in more than one day away from work.

4 Assumes 8-hour workday and 225 workdays per year.

Note: Boundary includes all businesses controlled by the Group as of the end of 2023, as well as any material acquisitions made

in 2024.

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219

S1-16 - Compensation

metrics (pay gap and

total compensation)

The below metrics encompasses

employees with direct employment

contracts, including full-time,

part-time and temporary staff.

Total remuneration data is collected

at the global divisional level. The

standardised template includes

base salary, bonuses paid during

the relevant period and benefits-

in-kind. Additionally, it incorporates

the total fair value of all annual

long-term incentives per employee.

This standardised and transparent

approach ensures consistency

across divisions and comparability

ofdata.

In line with ESRS standards, the

calculation for the metrics adheres

to detailed guidance to ensure

compliance and accuracy. For the

gender pay gap, we leverage the

data obtained in calculating total

remuneration to assess the average

gross hourly pay levels of male and

female employees. The gender pay

gap shows the pay gap between

men and women without adjusting

for other factors impacting

pay levels (e.g. career level and

workexperience).

The formula specified within the

ESRS standards is then applied to

determine the difference, expressed

as a percentage of the average

male gross hourlypay.

The table below illustrates the key

compensation metrics for 2024,

including the gender pay gap

and the ratio of the highest-paid

individual to the median annual

remuneration for all employees

(excluding the highest-paid

individual), covering the reporting

period from 1 November 2023 to 31

October 2024.

2024

Gender pay gap

3.75%

Total remuneration ratio

121

1 The difference between the average gross hourly pay of male and female employees, expressed as a percentage of the average

male gross hourly pay. Average gross hourly pay represents total remuneration.

2 Total remuneration ratio represents the ratio of the highest paid individual’s remuneration to the median total remuneration of

all employees. Total remuneration includes base salary, bonus, cash benefits, non-cash benefits and long-termincentives i.e.

share options.

Note: The metrics are based on the period from November 2023 to October 2024. As this differs from our financial reporting

period timeline, the figures should be considered an estimate.

S1-17 - Incidents, complaints and severe human rights impacts

The information presented below has been gathered using the methodologies specified in sections S1-6 and G1-1

of this report. Section S1-6 details the process for collecting complaints raised through local channels, such as

reporting directly to a line manager. In contrast, section G1-1 outlines the procedure for handling complaints

submitted via EthicsPoint, the Group’s confidential and independent hotline.

The Group is committed to creating an open working environment where employees feel comfortable reporting

issues directly to their line manager. However, in exceptional cases where an employee is uncomfortable or unable

to do so, concerns can be reported to Group legal teams or through EthicsPoint, the Group’s anonymous and

independently managed hotline. Whilst all complaints are fully investigated not all are substantiated.

Unit 2024

Complaints of incidents of discrimination, including harassment

1,3

Number 36

Complaints filed through channels for people to raise concerns

1, 2,3

Number 147

Complaints filed to National Contact Points for OECD Multinational Enterprises Number 0

Fines, penalties and compensation for damages as a result of the incidents

and complaints of discrimination

€ 0

Severe human rights incidents, including cases of non-respect of UN Guiding

Principles and OECD Guidelines for Multinational Enterprises

Number 0

Fines, penalties and/or compensation severe human rights issues and incidents € 0

1 Including complaints filed throughEthicsPoint.

2 Excluding incidents of discrimination, including harassment.

3 Includes estimates for acquisitions completed in 2024.

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ESRS S2 – WORKERS IN

THE VALUE CHAIN

ESRS 2 - SBM-3

The material IROs related to

workers in the value chain have

been identified through a DMA,

which relied on internal business

knowledge and focused on our tier 1

direct suppliers. This approach was

particularly crucial in identifying

and assessing IROs. No specific

groups within these suppliers have

been identified as disproportionately

impacted at this stage. For this

section, workers at the Group’s

tier 1 direct suppliers are included

in scope. With the development

of our SHREDD process we are

actively working to identify ways to

continuously improve the process

to identify risk where possible and

meaningfully seek to impact change

in our supply chain.

To address positive impacts, we

base our efforts on our policies

and supplier due diligence. We

monitor the ESG performance of

our upstream suppliers and provide

internal training on human rights to

embed ethical standards and ensure

compliance with international

labour laws.

As a global leader in high-

performance insulation and building

envelope solutions, we rely on a

global network of suppliers. With

273 manufacturing sites, the Group

operates within a complex supply

chain, depending on the practices,

policies and standards of our

partners to ensure compliance with

ethical labour practices. Workers

involved in the extraction and

processing of key raw materials such

as metals, chemicals and stonewool

are essential to our supply chain but

may face risks related to working

conditions and human rights

violations, including but not limited

to forced labour or child labour

in certain regions and industries.

To address these risks, the Group

has developed and continues to

enhance its supplier due diligence

processes, promoting ethical

sourcing and aiming to ensure

compliance with international

labour laws and sustainability

standards, ultimately reducing these

risks and creating opportunities for

improving labour conditions across

our supply chain. Country indices

were referenced to assess social

and environmental risk such as the

Global Slavery Index (GSI) by Walk

Free and Children’s Rights in the

Workplace by UNICEF.

The Group’s strategy and

business model are aligned with

managing the impacts, risks and

opportunities related to suppliers’

workers. Supplier engagement,

data tracking and collaboration are

integral to our Planet Passionate

strategic pillar, ensuring that

our building envelope solutions

deliver long-term, sustainable

performance. In line with our

mission to accelerate a net zero

emissions built environment with

people and planet at its heart,

we work to ensure that our supply

chain reflects our commitment

to ethical labour practices and

environmental responsibility. We

periodically hold supplier forums,

attended by the Group CEO, to

articulate the Group’s strategy and

strengthen relationships with our

key partners.

Material impacts, risks and opportunities related to workers in the value chain

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Positive

Impact - actual

Value chain:

Upstream

The Group

promotes

sustainable

supply chains

through its Code

of Conduct and

Supplier Policy

The Group promotes

sustainable supply chains

through a detailed code

of conduct and supplier

policy, utilising ESG rating

tools such as EcoVadis to

monitor ESG scores across

its supply chain.

» Due diligence: The Group has

developed a due diligence process that

includes supplier audits, corrective

action plans and the use of various

ESG rating tools to monitor supplier

sustainability performance.

» Internal and external policies: The

Group has established clear standards

for ethical practices and sustainability

expectations across our supply

chain through key policies, including

our Human Rights Policy, Code of

Conduct, Supplier Policy and SHREDD

Policy.

Type: Positive

Impact - actual

Value chain:

Upstream

Current/

emerging

regulation

The Group observes the

evolving regional and

jurisdiction-specific supply

chain regulations.

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221

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Positive

Impact - actual

Value chain:

Upstream

Established

human rights

policy and

due diligence

procedures

The Group has established

comprehensive policies

and procedures helping to

mitigate adverse human

rights impacts across its

supply chain.

» Training programmes: The Group

provides training programmes for

internal teams on its human rights

policies.

» Engagement and collaboration:

The Group promotes continuous

improvement by prioritising

collaboration and engagement

to enhance supplier practices and

further align them with the Group’s

sustainability initiatives.

» Regulatory compliance: The Group

actively stays informed and up to

date with evolving regional and

jurisdiction-specific supply chain

regulations, ensuring that our policies

and practices reflect the latest

requirements and best practices.

» Reporting mechanisms: The Group

provides anonymous reporting

channels that allow workers in the

value chain to raise concerns about

ethical or human rights violations.

These mechanisms, outlined in our

Supplier Policy, ensure that concerns

can be raised confidentially and

are addressed through appropriate

processes.

Type: Potential

Risk

Time Horizon:

Short-term +

Medium-term

Triggered by:

Dependency

Risks of human

rights breaches

Potential breaches of

human rights regulations

could lead to reputational

damage and litigation

issues.

Type: Potential

Opportunity

Time Horizon:

Short-term +

Medium-term

Triggered by:

Our Impacts

Policies and

procedures

mitigating

human rights

risk

The Group’s policies help

to prevent human rights

violations and ensure

ethical labour practices,

reducing modern slavery

risks. Promoting human

rights and protection for

confidential independent

hotlines boosts the Group’s

reputation, enhancing

business relationships and

stakeholder trust.

ESRS 2 - SBM-2 - Interests

and views of stakeholders

As detailed in section ESRS 2, SBM-2

of this report, the Group recognises

suppliers as a key stakeholder group.

We seek to build and maintain long-

term relationships with key suppliers

and contractors. This vision assists

in aligning goals and standards

to address strategic global issues,

emerging trends and ultimately

our customer needs, while also

respecting the interests, views and

rights of workers employed by our

suppliers.

S2-1 Policies

The below policies apply to the

Group, its subsidiaries, joint

ventures and their directors, officers

and employees. These policies

cover all our businesses, wherever

they are conducted. The Group

expects the same high standards

of its contractors, suppliers and

other business partners. The

Group policies can be accessed

on our website: https://www.

kingspangroup.com/en/about/

policies/.

The Group promotes a sustainable

supply chain through its Supplier

Policy (also referred to as the

Supplier Code of Conduct),

Environmental Policy and Human

Rights Policy. These policies,

approved by the Board of Directors

and available on our website, aim

to minimise environmental impacts,

human rights risks, including child

labour, human trafficking and

anti-slavery and ensure compliance

with health, safety and applicable

laws. Suppliers are encouraged to

highlight to the Group any areas of

legal or ethical concern, allowing

for constructive dialogue to resolve

gaps and deficiencies. The divisional

MDs take ultimate responsibility

for the implementation of these

policies.

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Our internal SHREDD Policy, also

approved by the Board, outlines

our supplier human rights and

environmental due diligence

process, ensuring accountability

and transparency across business

functions. This policy helps us

identify and prioritise actual and

potential risks to human rights and

the environment related to our

business activities, products and

relationships. Through SHREDD, we

proactively seek to address, prevent

and mitigate impacts on individuals,

communities and the environment.

Furthermore, the policy is dynamic,

allowing us to stay abreast of

current and emerging regulations,

ensuring our due diligence processes

remain robust and compliant.

SHREDD is aligned with the

following guidelines and principles:

» OECD Guidance for

Multinational Enterprises

(MNCs) on Responsible Business

Conduct (RBC) (OECD, 2023);

» UN Guiding Principles on

Business and Human Rights

(UNGP, 2011); and

» International Labour

Organisation (ILO) Declaration

on Fundamental Principles and

Rights at Work (ILO, 1998)

We continue to closely monitor the

channels designed to capture where

a breach of human rights may have

occurred or is occurring. Please see

section S2-4 for further details.

S2-2 - Processes for

engaging with value

chain workers about

impacts

The Group seeks to build and

maintain long-term relationships

with key suppliers and contractors.

Engagement with workers

employed by the Group’s suppliers

occurs through various stages

and formats. The views of workers

are conveyed indirectly through

a range of supplier management

activities, which occur at varying

frequencies depending on their

nature. Ongoing processes

such as contract negotiations,

surveys and self-assessment

questionnaires take place as

part of routine operations, while

broader engagements, including

supplier forums, conferences and

interviews, are conducted on a

quarterly, semi-annual, or annual

basis, depending on their purpose.

The insights gathered from these

indirect engagements help inform

our decisions and actions aimed

at managing actual and potential

impacts on value chain workers.

The effectiveness of these

engagement channels are

assessed through ongoing two-

way communication, including

open dialogue and regular

interactions with key suppliers and

stakeholders. This open dialogue

not only creates opportunities for

value chain workers to share their

perspectives, particularly those who

may be vulnerable to impacts or

marginalisation, but also supports

the ongoing development and

refinement of our due diligence

process. Additionally, the Group

engaged with NGOs during the

DMA process to gain further insight.

By developing these processes, the

Group aims to create opportunities

for value chain workers to

collaborate and share their

perspectives, especially those who

may be vulnerable to impacts or

marginalisation. The divisional MDs

take ultimate responsibility

for the implementation of the

SHREDD Policy.

For more on agreements related

to respecting the human rights of

workers, please refer to section S2-1,

which outlines our policies aligned

with ILO conventions.

See section ESRS 2 SBM-2 for

more information on stakeholder

engagement.

S2-3- Processes to

remediate negative

impacts and channels for

value chain workers to

raise concerns

The Group has channels for workers

employed by our suppliers to raise

concerns.

As highlighted in the Group’s

Human Rights Policy and

Supplier Policy there are various

channels available, which include

confidential independent platform

for stakeholders to raise concerns.

Both policies are publicly available

and can be accessed on the Group

website. Third parties can contact

us directly by visiting our website

for further contact information.

The Group does not currently

assess if workers in the value

chain are aware of and trust these

existing structures. For further

details, please refer to Section

G1-1 regarding procedures that

protect the Group’s confidential

independent hotline and processes.

S2-4 – Actions

The Group’s SHREDD Policy outlines

our commitment to ensuring that

our suppliers adhere to the highest

standards of human rights and

environmental sustainability. This

policy applies to the Group, its

subsidiaries, joint ventures, directors,

procurement teams and their key

raw material suppliers. The SHREDD

Policy establishes a due diligence

process, which identifies, prioritises

and mitigates risks related to human

rights violations and environmental

impacts across our supply chain.

This process is aligned with global

frameworks such as the OECD

Guidelines, UN Guiding Principles

and ILO Standards, ensuring

accountability and transparency

in all supplier engagements. The

SHREDD process itself serves as an

action plan and resource to manage

material IROs related to value chain

workers. This entails continuous

identification, prioritisation

and mitigation of potential

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222

Kingspan Group plc

223

environmental and human rights

IROs. Where relevant, additional

action plans may be required based

on the outcomes of this process to

ensure that any emerging risks are

effectively addressed.

The SHREDD process is built on

three key phases:

1. Identification: Suppliers are

assessed based on inherent risk

factors such as raw material

type, country of manufacture,

spending levels and their

environmental, social and

governance (ESG) performance.

This process helps identify high-

risk suppliers for further due

diligence.

2. Prioritisation: Suppliers

are categorised by risk level

(low, medium or high), which

determines the level of due

diligence required. High-

risk suppliers are prioritised

for further assessment and

mitigation measures.

3. Due Diligence Execution:

A range of due diligence

mechanisms, including audits,

corrective action plans and

regular reviews, are employed

for high-risk suppliers to address

potential human rights and

environmental risks. The remedy

approach employed will depend

on the level and type of risk

identified. These mechanisms

help mitigate risks such as forced

labour and child labour, ensuring

that ethical standards are

upheld across the supply chain.

As referenced in our Supplier

Policy, the Group reserves the

right to terminate the supplier

relationship in the event that

the supplier fails to uphold the

standards as contained in the

Policy. Training and awareness

programmes on the SHREDD

Policy will be provided to

employees where applicable.

The SHREDD process will be

regularly reviewed and refined to

ensure it continues to support the

values and objectives of the Group

and evolving regulations. Please

refer to section S2-2 for details on

how we track effectiveness.

To reduce the risk of contribution

to material negative impacts

on workers employed by our

suppliers, the Group has developed

its SHREDD Policy in alignment

with the Code of Conduct which

highlights our commitment

to acting responsibly and in

compliance with the law whilst

maintaining high standards of

ethics, honesty and integrity in

all dealings with stakeholders.

The Group prioritises long-term,

sustainable partnerships that align

with its values.

The Group has allocated the

necessary resources to support the

SHREDD process, including, but not

limited to, subscriptions to various

ESG rating platforms, allotting

additional personnel and arranging

structured collaboration across

divisions and functions within the

global Group.

The Group remains committed to

addressing severe human rights

issues. The business closely monitors

channels designed to identify

potential or actual breaches of

human rights and the mechanisms

for reporting such issues are clearly

outlined in our Supplier Policy and

Human Rights Policy. Through these

channels and mechanisms, we have

not yet identified any potential or

actual breaches of human rights.

S2-5 – Targets

The Group is in the early phase of

implementing its SHREDD process,

which was developed and released

across the Group in 2024. The

SHREDD process is focused on

mitigating risks related to human

rights violations and environmental

impacts across our supply chain.

Specific quantitative targets have

not yet been adopted, but the

Group is focusing on developing its

due diligence framework to identify,

prioritise and mitigate risks.

Effectiveness is tracked through

qualitative reviews such as supplier

assessments and risk evaluations.

These methods help us monitor

how well the SHREDD process is

addressing material impacts, risks

and opportunities for workers

employed by our suppliers, without

relying on formal numerical targets

at this early stage.

The Group’s ambition is centred

on continuous improvement,

using insights gathered during the

implementation of the SHREDD

process to guide our strategy.

As formal targets have not yet

been set, a base year for measuring

progress is not in place. However,

insights from this phase will

inform future target-setting and

evaluation.

ESRS S3 – AFFECTED

COMMUNITIES

ESRS 2 - SBM-3

The material IROs related to

affected communities have been

identified through a DMA. The

scope for this section generally

includes all affected communities

that could be materially impacted

by our operations or through our

value chain. These communities

are diverse and numerous, given

that we have a trading presence

in over 80 countries with a wide

range of supplier types and sizes.

Affected communities considered

in the assessment include those

adjacent to our manufacturing

facilities, those along our value

chain, including both endpoints and

indigenous peoples. Based on the

results of the DMA we conducted,

the actual impacts on affected

communities are deemed not

material for the purposes of this

Statement.

The Group does not operate in a

higher risk sector (e.g. agribusiness,

oil and gas), hence its impacts to

the rights of indigenous peoples are

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Kingspan Group plc

minimal, if any. The Group is not

in the business of land acquisition

and does not exploit the land

for resources. The Group is not

connected with activities related to

adequate food or housing and does

not have security-related impacts.

There are no ongoing complaints,

identified incidents involving the

rights of indigenous peoples, legal

exposure, or experienced boycotts

by indigenous peoples.

Assessing and understanding the

full spectrum of our IROs across

our value chain will take time and

the support from publications

and/or tools that are not currently

available. Consequently, for this

reporting period, we applied the

precautionary principle to account

for potential impacts in our value

chain where evidence is lacking. As

a result, we included a potential

negative impact covering both

our upstream and downstream

value chain as material. We will

continue to refine our DMA and

due diligence processes and expect

more dedicated external tools will

become available to enable us to

adequately identify impacts in our

upstream and downstream value

chain. No material opportunities

were identified.

Any potential negative impacts

across the Group’s value chain

related to local communities and

indigenous peoples are not directly

connected to our business model

and strategy, but rather via the

business activities of our suppliers

and downstream partners. True to

our mission of helping accelerate a

net zero emissions built environment

with people and planet at its heart,

we aim to stay vigilant, monitor any

relevant developments and take

appropriate action, to the extent

possible, if such a material impact

ever occurs.

Material impacts, risks and opportunities related to affected communities

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Negative

Impact -

potential

Time Horizon:

Short-term

Value chain:

Upstream and

downstream

Upstream

and

downstream

potential

negative

impacts on

indigenous

and local

communities

Includes potential negative

impacts across our value

chain (both upstream and

downstream) relating to

environmental factors.

» Due diligence: The Group has developed

a due diligence process that includes but

is not limited to supplier audits, corrective

action plans and the use of various ESG

rating tools to monitor supplier sustainability

performance.

» Internal and external policies: The Group

has established clear standards for ethical

practices and sustainability expectations

across our supply chain through key policies,

including our Human Rights Policy, Code

of Conduct, Supplier Policy, Corporate

Citizenship Policy, Environmental Policy and

SHREDD Policy.

» Reporting mechanisms: As highlighted in

our Human Rights Policy, there are various

channels available for affected communities.

Third parties can contact the Group directly

by visiting our website for further contact

information.

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225

ESRS 2 - SBM-2 - Interests

and views of stakeholders

As detailed in section ESRS 2,

SBM-2 of this report, the Group

recognises local communities and

NGOs as key stakeholder groups.

We actively engage with various

key stakeholder groups, including

NGOs, sponsorship and donation

partners and local communities

to better understand their views,

interests and expectations. We

did not engage directly with local

communities in the DMA process,

however, their views were considered

indirectly via the divisional business

representatives who took part in the

DMA process to help identify and

assess our IROs. They were included

in the process due to their knowledge

and work with our local communities

and understanding of local-specific

circumstances. Moving forward, we

aim to develop a more formalised

process for feedback via our Planet

Passionate Communities initiative.

S3-1 – Policies

As detailed in section SBM-3 of this

report, material impacts related to

local communities include potential

negative impacts arising from

environmental factors across both

our upstream and downstream

value chain. The Group applies the

precautionary principle to account

for potential impacts where evidence

or data may currently be insufficient.

Consequently, we do not yet have a

Group policy that directly manages

this potential negative impact

related to affected communities.

We aim to establish such policies

within a dynamic and evolving

framework, aligned with the

availability of reliable data and best

practices in the industry. While we

cannot provide a definitive timeline

at this stage, we continue to refine

our DMA and due diligence processes

to enhance our ability to identify and

address impacts across our value

chain. This reflects our commitment

to adopting policies that effectively

manage material risks and

opportunities while promoting

responsible practices aligned with

our sustainability objectives.

Following the materiality assessment

of our impacts on indigenous

peoples (see previous page), we

have determined that, at present,

our policies do not include specific

provisions for preventing and

managing impacts on indigenous

peoples. We will continue to monitor

this area to ensure our policies

remain aligned with evolving

materiality and stakeholder

expectation.

While several policies indirectly

manage material impacts on

affected communities, these

primarily focus on the Group’s own

operations rather than addressing

upstream or downstream activities.

These policies set standards for

ethical practices and provide

reporting mechanisms. They include

the Code of Conduct, Supplier Policy,

Environmental Policy, Corporate

Citizenship Policy and SHREDD

Policy.

Our Human Rights Policy outlines

our commitment to upholding and

promoting human rights values in

all aspects of our operations and

aligns with ILO conventions and UN

principles. We continue to monitor

and maintain channels for reporting

and addressing potential breaches

of human rights, as detailed in the

policy. Through these channels

and mechanisms, we have not

yet identified any cases of non-

compliance with these principles

relevant to affected communities.

While we apply the precautionary

principle to address potential

impacts where evidence or data

may be insufficient, we continue to

refine our due diligence processes

and will review and expand the policy

accordingly to address interactions

with affected communities across

our value chain, if required.

S3-2 – Processes for

engaging with affected

communities about

impacts

The Group promotes open dialogue

and understands the importance

of engagement and collaboration

with its local communities. We

engage in dialogue with local

communities via several initiatives,

the most significant being our

Planet Passionate Communities

initiative. Launched in 2021, the

Planet Passionate Communities is

the philanthropic arm of our 10-year

sustainability programme, Planet

Passionate. Through this initiative,

we aim to support people and

communities around the world.

On a local level, our businesses are

devoting a portion of their time and

resources to support community

projects. In 2024 we completed over

100 projects.

The scope, frequency and process

for engagement differs across

our Group, influenced by several

factors. Engagement with local

communities can be on an ad-

hoc basis or through more formal

initiatives. A site representative

is responsible for overseeing

community engagement and

escalating any feedback or

concerns to senior management

if required.

An example of engagement would

be for infrastructure projects.

During the implementation of a

key environmental project, a 1.5

MWh wind turbine installation

at our site at Holywell, UK, we

engaged extensively with the

local community throughout the

process which ran from 2011 – 2017.

An example of a more formal

engagement initiative is our Planet

Passionate Community Fund in

Ireland. We are currently reviewing

our processes and will update them

in 2025 if required to potentially

include an assessment of the

effectiveness of our engagement

processes.

The Group did not have an active

conflict with a local community

(including indigenous peoples) on

matters related to their economic,

cultural, civil or political rights

during the reporting year and

historically has not been involved

with any breaches or litigation

relevant to the aforementioned

human rights issues.

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For more information on

stakeholder engagement, see

section ESRS 2 SBM-2.

S3-3 – Processes to

remediate negative

impacts and channels for

affected communities to

raise concerns

The Group has channels for

affected communities to raise

concerns. These channels are

localised across the Group and

may vary across divisions to

ensure accessibility and relevance

for each specific market. The

Group ensures that each of our

273 manufacturing facilities

provides a means for local

communities to voice concerns,

such as via a site address, phone

number, or email. Tracking and

monitoring of concerns raised

is a site and business level

responsibility, potential concerns

can be escalated to Group level for

support if required.

The Group’s Human Rights Policy

is publicly available and can be

accessed on the Group website.

Third parties can contact us directly

by visiting our website for further

contact information. The Group

does not currently assess if affected

communities are aware of and

trust these existing structures.

However, the Group Code of

Conduct incorporates our policy for a

confidential and independent hotline

and explicitly outlines protections

against retaliation for individuals

who raise concerns or report issues.

For further details, please refer to the

disclosure provided in accordance

with ESRS G1-1.

We recognise the need to

engage actively and cooperate in

addressing and, where appropriate,

remediating adverse impacts which

we may have caused or contributed

to through our own activities.

We will review the processes that

are currently in place across the

businesses in 2025. Based on the

outcome of this review, if required,

we will update processes to ensure

that processes to provide or enable

remedy in the event of material

negative impacts are available and

effective in their implementation

and outcomes.

S3-4 – Actions

The Group is committed to ensuring

our suppliers uphold our rigorous

standards for ethical behaviour and

environmental sustainability. As

part of our commitment, the Group

applies the precautionary principle

to account for potential impacts

related to affected communities

where evidence or data may

currently be insufficient.

As outlined in section S3-1, we

currently do not have a Group

policy specifically addressing

this potential negative impact

on affected communities.

Consequently, no direct action is in

place to mitigate these potential

impacts within our upstream

value chain at this time. However,

consistent with our approach to

such policies, we aim to develop

targeted actions as part of a

dynamic and evolving framework,

informed by the availability of

reliable data and industry best

practices.

The Group’s SHREDD process was

developed and released across

the Group in 2024. Its primary

objective is to proactively address,

prevent and mitigate impacts on

human rights, the environment and

associated individuals, communities

and ecosystems. To help mitigate

potential negative impacts related

to affected communities, the

Group is dedicated to the continued

development and roll-out of our

SHREDD process. For further details,

please refer to section S2-4 Actions

section of this report.

In addition, the Group remains

committed to addressing severe

human rights issues. The business

monitors channels designed

to identify potential or actual

breaches of human rights and the

mechanisms for reporting such

issues are clearly outlined in our

Human Rights Policy. Through these

channels and mechanisms, we have

not yet identified any potential or

actual breaches of human rights.

S3-5 – Targets

We currently do not have any actual

impacts on local communities.

We haven’t identified any relevant

issues or concerns that would be

material at the Group level and

therefore have not deemed it

necessary to set targets pertaining

to local communities and

indigenous peoples. As we continue

to refine both our IRO process and

our process of engaging with local

communities, we will re-examine

the setting of a relevant target in

the coming years.

Nevertheless, for information on

targets related to the Group’s

SHREDD process, see section S2-5

Targets of this report.

ESRS S4 – CONSUMERS

AND END-USERS

ESRS 2 - SBM-3

The material IROs related to

consumers and end-users have

been identified through a DMA.

Our consumer base is wide ranging

and includes a diverse cohort of key

stakeholders across the construction

service and maintenance of buildings

and manufacturing industry.

This includes but is not limited to

professionals involved in building

design (e.g. architects, engineers,

building designers), installation

(e.g. contractors or installers),

management (e.g. building owners

or facilities managers) as well as

those responsible for the operation

and maintenance of buildings and

infrastructure (e.g. local authorities).

Based on our end-market mix and

the context outlined in the ESRS

standards (ESRS S4, AR 7), the

Group, through its due diligence

process, believes that its operations

do not involve consumers or end-

users with characteristics, contexts,

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227

or activities that would place

them at greater risk of harm. We

will continue to develop our DMA

process, aiming to ensure that

any emerging risks to stakeholders

are appropriately identified and

addressed.

To address positive impacts, we

focus on continuous product

innovation, customer service

improvements and the digitalisation

of the construction industry,

enhancing product safety, quality

and satisfaction.

We are continuously developing

our understanding of risks for

specific groups through ongoing

stakeholder engagement,

comprehensive risk assessments

and feedback mechanisms.

As per ESRS S4, DR 10 classifications,

the most relevant category for

our consumers is: consumers

and/or end-users who depend on

accurate and accessible product-

or service-related information

to avoid potentially damaging

use of a product or service. Risks

associated with product failure and

product marketing exist. The Group

recognises this and have initiatives

to address these risks as described

in the initiatives in the table below.

The Group’s strategy and business

model are aligned with managing

impacts on consumers and

end-users. Product quality and

safety are central to our strategic

pillars, ensuring that our building

envelope solutions deliver long-

term performance and safety

for our customers. To address

these impacts, our business

model continually adapts through

investments in product innovation

and digital engagement, as

demonstrated by the development

of tools like BIM (Building

Information Modelling) and the

3D Viewer. Through mitigating

potential risks such as product

failure or marketing integrity issues,

we’ve shaped our strategy with

robust compliance measures and

rigorous product testing throughout

our operations.

Digital adoption plays a crucial

role in enabling greater efficiency

and sustainability across

the manufacture, delivery,

construction and operation of the

built environment.

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Material impacts, risks and opportunities related to consumers and end-users

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Positive

Impact - actual

Value chain:

Downstream

Safety and

quality of

products

The Group has a positive

impact on the lives of

consumers through the

provision of products and

services that are safe and

of high quality.

» Dedicated Oversight Structures:

The Group has established dedicated

structures and processes to oversee

product quality and compliance, with the

Audit & Compliance Committee reviewing

their effectiveness and monitoring

compliance culture.

» Global Compliance Programme: The

Group has implemented a global product

compliance and marketing programme,

led by the Group Head of Internal Audit &

Compliance, following ISO 37301 standards

and supported by internal audits and

Board oversight.

» Policies: The Group’s Product Compliance

Policy outlines our commitment to

the safety, quality and integrity of our

products. This policy is further reinforced

by an internal-facing Group Compliance

Manual, which details the processes

implemented across the Group. The

manual also includes the requirement

for maintaining a Register of External

Certificates and Test Reports for each

product.

» Marketing Integrity: The Group launched

an updated Group Marketing Integrity

Manual in 2023, providing a compliance

framework for marketing materials and

websites, with adherence audited by the

Group Internal Audit function.

» Environmental Claims Guide: The Group

introduced a global Environmental Claims

Guide to ensure all sustainability-related

marketing claims are accurate and robust.

» Product Testing & Safety: New

products undergo rigorous testing at our

Global Innovation Centre, IKON and Fire

Engineering Research Centre (FERC),

adhering to ISO 9001 standards, to ensure

product safety and quality.

» Continuous Improvement: The Group

regularly reviews and updates compliance

and quality management systems,

with progress tracked and reported to

the Audit & Compliance Committee,

including specific targets for continuous

improvement.

Type: Positive

Impact - actual

Value chain:

Downstream

Product

Information

Providing accurate

product information

is crucial for ensuring

structural integrity and

optimal performance.

Type: Potential

Risk

Time Horizon:

Short-term

Triggered by:

Our impacts

Product failure Potential functional failure

of our products could lead

to health and safety issues

alongside reputational

damage. Dedicated

structures and processes

are in place to manage

and monitor product

quality.

Type: Potential

Risk

Time Horizon:

Short-term

Triggered by:

Our impacts

Integrity

of product

marketing

Risk of reputational

damage and/or litigation

issues resulting from mis-

marketing incidents. The

Group Marketing Integrity

Manual (MIM) establishes

a compliance framework

for product marketing

materials/websites and is

subject to internal audit.

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IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Potential

opportunity

Time Horizon:

Medium-term

Triggered by:

Our impacts

Leverage

technology

The Group could

leverage technology to

enhance its customer

service capabilities by

progressively surfacing

products digitally, making

it easier for customers

to find, specify, buy and

track them.

» 3D Viewer 2.0 & Mobile App: Launched

advanced 3D Viewer and complementary

mobile app to improve product

visualisation and on-the-go access for

customers.

» Digital Calculation Tools: Introduced a

Panel & Fastener calculator to streamline

product specification, enhancing accuracy

and ease of use.

» BIM & Digital Integration: Expanded

use of BIM and Digital Project Delivery to

improve customer workflows and integrate

products seamlessly into projects.

» Devleo Platform Expansion: Added

new apps to the Devleo platform,

offering tailored digital tools for design,

specification and operations.

ESRS 2 - SBM-2 - Interests

and views of stakeholders

As outlined in section ESRS 2,

SBM-2 of this report, the Group

recognises consumers and end-

users as key stakeholders whose

interests, views and rights play

a significant role in shaping our

strategy and business model. Two

of our four key strategic pillars,

Planet Passionate and Innovation,

are informed by consumer feedback

and engagement.

The Customer Experience

Programme places customers

at the centre of the Group’s

operations, aiming to improve all

aspects of the business to better

serve them. In 2018, we launched

the Worldwide Voice of Customer

programme, led by our Global

Customer Experience team. This

initiative enables us to listen more

closely to our customers and

gain a deeper understanding of

their experiences across the 200+

businesses and diverse brands

within our Group. This programme

helps the Group track evolving

customer expectations and identify

areas for improvement, driving

changes in products, services,

processes and advancing the

Group’s digital agenda.

S4-1 Policies

The below policies apply to the

Group, its subsidiaries, joint

ventures and their directors, officers

and employees. These policies apply

to all our businesses, wherever they

are conducted. The Group policies

can be accessed on our website:

https://www.kingspangroup.com/

en/about/policies/.

The Group Product Compliance

Policy, publicly available and aligned

with the Group Code of Conduct,

ensures the safety, quality and

integrity of products through a

comprehensive framework. It

emphasises product safety and

quality by adhering to legal and

industrial standards, supported by

compliance risk assessments and

procedures aligned with the ISO

37301 standard.

This policy is further supported

by an internal-facing Group

Compliance Manual. This manual

comprehensively covers all aspects

of the implemented processes

across the Group, including the

requirement for a Register of

External Certificates and Test

Reports for each product. Marketing

information is controlled and

maintained in accordance with

the MIM, ensuring ethical and

transparent representation of

products. The manual is reviewed

annually to ensure continuous

improvement and compliance.

In addition, the policy ensures

accurate product information

through robust documentation and

governance, while mitigating risks

of product failure via confidential

reporting mechanisms that enable

early issue identification and

resolution. It upholds the integrity

of product marketing by embedding

the Group’s core values of integrity

and honesty into operations.

Together, these measures effectively

manage critical product impacts

across the Group’s operations.

By leveraging technology to

enhance our customer service

capabilities, the Group can

progressively surface products

digitally, making it easier for

customers to find, specify, buy and

track them. This approach aligns

with our commitment to accurate

product information and ethical

marketing practices outlined in

our policies. Furthermore, the

continuous review and improvement

of our compliance processes ensure

that we can adapt and integrate

new technological advancements

while maintaining high standards of

product safety and integrity.

Sustainability for the Group’s

consumers and end-users is also

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indirectly guided by several policies,

including the Code of Conduct,

Supplier Policy and Environmental

Policy, all approved by the Board

of Directors and available on our

website. These policies aim to

minimise environmental impacts

and ensure compliance with

health, safety and applicable laws,

demonstrating our commitment to

sustainability and product safety.

The divisional MDs takes ultimate

responsibility for the implementation

of these policies.

Additionally, our SHREDD Policy

outlines our supplier human rights

and environmental due diligence

process, while our Human Rights

Policy outlines our commitment to

upholding and promoting human

rights values in all aspects of our

operations. Both are aligned with

ILO conventions and UN principles.

We continue to monitor and

maintain channels for reporting

and addressing potential breaches

of human rights, as detailed in the

Human Rights Policy. Through these

channels and mechanisms, we have

not yet identified any cases of non-

respect to the principles relevant

to consumers and end-users. We

continue to develop our processes.

S4-2 Processes for

engaging with consumers

and end users about

impacts

The Group aims to sustain long-

term consumer relationships.

Engagement occurs at various

stages across the purchase cycle,

with frequency dependent on

the type of engagement. The

effectiveness of engagement is

assessed through various means

including, but not limited to, follow-

up surveys, customer satisfaction

scores and regular review meetings.

Through continuously integrating

feedback from consumers into

our decision-making processes,

we ensure that our strategies

and actions are informed by their

perspectives, leading to more

effective management of actual

and potential impacts. The divisional

MD take ultimate responsibility for

ensuring active consumer and end-

user engagement.

See section ESRS 2 SBM-2 for

more information on stakeholder

engagement.

S4-3 Processes to

remediate negative

impacts and channels for

consumers and end users

to raise concerns

The Group has channels for

consumers and end-users to raise

concerns. These channels are

localised across the Group and

may vary across divisions to ensure

accessibility and relevance for

each specific market. Concerns are

typically received via electronic mail

or telephone and shall be directed

to the appropriate team allowing

for efficient and thorough handling

of each issue.

If a concern is raised, it is addressed

using procedures that are tailored

to the specific needs and regulatory

requirements of each region. These

processes endeavour to ensure

responses are appropriate and

effective, taking into account local

laws, cultural expectations and

market conditions.

If issues or concerns are raised,

they are monitored using various

platforms and systems, which

differ between divisions and

regions. Each division employs

its own methods to foster

improvement in addressing and

resolving consumer and end-user

concerns. This structure enhances

our responsiveness and consumer

satisfaction across our global

footprint. Considering the diverse

nature of the aforementioned

structures or processes, trust and

awareness are assessed through

ongoing two-way communication,

including open dialogue and regular

interactions with key consumers

and stakeholders. We do not

currently assess the effectiveness

of our engagement processes but

are actively focused on reviewing

and improving them as part of our

ongoing reporting efforts.

As highlighted in the Group’s

Human Rights Policy, there are

various channels available for

consumers to raise concerns.

The Group’s Human Rights Policy

is publicly available and can be

accessed on the Group website.

Third parties can contact the

Company directly by visiting

our website for further contact

information. https://www.

kingspangroup.com/en/contact/.

For further details, please

refer to Section G1-1 regarding

procedures that protect the Group’s

confidential independent hotline

and processes.

S4-4 – Actions

The Group has developed a

framework to manage product

quality, safety and integrity,

ensuring these elements are

prioritised throughout product

development, testing, support

and marketing. Below are the key

actions supporting the Group’s

approach to addressing impacts,

risks and opportunities for

consumers and end-users.

Product Safety and

Compliance Initiatives

The Group has implemented a

comprehensive framework to

manage and monitor product

quality, safety and compliance

across the organisation. This

framework is supported by a

robust internal control system and

overseen by the Audit & Compliance

Committee. The Group Head of

Internal Audit & Compliance, who

reports to the Audit & Compliance

Committee, ensures the programme

adheres to the globally recognised

ISO 37301 standard for compliance

management. As of December

2024, 85 global sites were certified,

with plans to certify 105 sites by

the end of 2025. Additionally, 153

manufacturing sites are accredited

to the ISO 9001 standard for

quality management.

The Group conducted 123 internal

audits across its global sites in 2024,

alongside 490 third-party external

audits of products and systems.

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This ongoing auditing process,

coupled with rigorous internal

testing at IKON and FERC, ensures

products meet the highest safety

and performance standards before

entering the market. New products

undergo thorough certification

by independent, internationally

recognised authorities.

The Group’s MIM, aligned with the

Group Code of Conduct establishes

clear guidelines for product

marketing materials. Compliance

with the MIM is monitored through a

dedicated audit programme led by

the Group Internal Audit function,

ensuring integrity and transparency.

In addition, the Group Compliance

Manual outlines clear responsibilities

for operating divisions to develop

and maintain the Product

Compliance Register (PCR). The

PCR serves as a centralised record

of approved products, detailing

applicable legal obligations and

standards in their commercial

markets. Marketing materials,

product labels and order forms

are required to adhere to the PCR

to ensure compliance. The Group

tracks the effectiveness of these

actions through regular reporting

and key performance indicators

(KPIs), providing oversight into the

impact of its product compliance

and integrity programme.

Examples of dedicated resources

include, but are not limited to, the

product compliance team and the

IKON and FERC testing facilities. We

have 28 product lead compliance

officers appointed across the

business and over 6,000 people

trained in product compliance.

Digital Solutions for Enhanced

Consumer Experience

The Group is leveraging technology

to enhance the customer experience

through the continued development

and enhancement of established

digital tools that empower users

to interact with products more

efficiently, access real-time data

and improve overall satisfaction.

While these tools were not newly

launched this year, they are

continuously evolving to meet the

diverse needs of customers across

regions and markets. Examples

include:

» 3D Viewer 2.0 & Mobile App:

An advanced 3D visualisation

tool used globally within our

Insulated Panels division,

enabling customers to explore

products interactively. The

complementary mobile app

enhances on-the-go accessibility

and product engagement.

» Panel & Fastener Calculator:

A digital calculation tool

designed to streamline product

specification and enhance

accuracy and ease of use.

Currently utilised in the UK

and Ireland markets within

the Insulated Panels division,

with plans to expand into new

markets in the coming years.

» BIM & Digital Integration: A

process leveraging data to

create comprehensive plans

and models in construction,

improving customer workflows

by integrating products

seamlessly into projects. BIM

adoption and digital project

delivery are being expanded

across divisions to enhance

project collaboration and

efficiency.

These tools, tailored to different

products, customers and regions,

are part of the Group’s long-term

strategy to innovate and adapt

in response to the changing

needs of the construction and

building industries. These tools

reflect the Group’s ongoing

commitment to driving digital

innovation, simplifying workflows

and delivering better outcomes

for customers worldwide, while

continuously evolving to address the

dynamic needs of our markets and

stakeholders.

Human Rights

The Group remains committed to

addressing severe human rights

issues. The Group closely monitors

channels designed to identify

potential or actual breaches of

human rights and the mechanisms

for reporting such issues are clearly

outlined in the Group’s Human

Rights Policy. Through these

channels and mechanisms, we have

not yet identified any potential or

actual breaches of human rights.

S4-5 - Targets

The Group is committed to tracking

the effectiveness of its policies and

actions in relation to IROs as they

pertain to consumers and end-

users. Our approach integrates

ISO 37301 as a cornerstone

of compliance management,

supported by internal audits and

compliance assessments that

evaluate adherence to policies and

identify areas for improvement.

Progress on certification targets,

such as the number of sites

achieving ISO 37301 certification, is

assessed annually and reported to

the Audit & Compliance Committee.

Customer insights gathered

through surveys and engagement

channels further help refine our

product offerings and customer

satisfaction initiatives. Additionally,

independent evaluations, including

Net Promoter Score (NPS) tracking,

provide qualitative indicators

of performance. CEO and CFO

performance goals linked to NPS

are detailed in the Report of the

Remuneration Committee, with

results tracked annually to align

with stakeholder expectations.

While formal targets and base years

are yet to be defined, the Group

leverages existing compliance

processes and customer feedback

to inform future target setting

and performance evaluations, as

required. Data gathered through

these mechanisms may assist in

the development of measurable

targets and a base year for tracking

progress. This approach underscores

the Group’s dedication to building

a strong foundation for assessing

and enhancing the effectiveness

of its related policies and actions,

focusing alignment with long-term

goals and continual improvement.

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CSRD SUSTAINABILITY

STATEMENT

GOVERNANCE

INFORMATION

Tscherning

Hedehusene, Denmark

Insulation

Troldtekt

acoustic

panels

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233

ESRS G1 - BUSINESS

CONDUCT

ESRS 2 – SBM- 3

The material IROs related to

business conduct have been

identified through the Group’s DMA,

which serves as the foundation

for this section. The Group is

committed to upholding best

practice standards in governance,

accountability and transparency.

This commitment is set by the

Board and cascades throughout

the organisation, across all divisions

and geographical locations. The

Board’s proactive approach to risk

management is supported by a

robust internal control system that

monitors business risks and ensures

compliance with ethical standards.

The internal audit and compliance

functions provide additional

assurance, with key findings

reported directly to the Board.

This comprehensive approach

helps the Group stay aligned with

best practices in governance and

business conduct, maintaining

accountability and transparency

across all operations.

IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Positive

Impact - actual

Value chain:

Own operations

Confidential

independent

hotline service

The Group’s confidential

independent hotline

encourages employees

and other stakeholders

to report issues via

a dedicated hotline,

positively impacting

stakeholders by fostering

a culture of transparency

and accountability.

» Reporting mechanisms: The Group

employs a comprehensive, confidential

independent hotline service to allow all

employees to raise their concerns about

their working environment and business

practices.

» Control procedures: Any instances of

fraud or misconduct reported on the

confidential independent hotline service

are reported to the Head of Internal

Audit & Compliance and the Company

Secretary. All reports through the hotline

and all fraud attempts are presented at

each Audit & Compliance Committee

meeting.

» Policies: The Group’s Code of Conduct

incorporates our policy for a confidential

and independent hotline which was

enhanced in 2021 with higher visibility

in all manufacturing sites across the

Group. All key policies including but not

limited to our Code of Conduct outline

how employees can raise any potential

concern.

Type: Potential

Risk

Time Horizon:

Short-term +

Medium-term

Triggered by:

Dependency

If trust in the confidential

independent hotline

diminishes and suspected

misconduct goes

unreported, it could

adversely impact the

Group’s reputation.

Type: Positive

Impact - actual

Value chain:

Downstream

Board oversight

and culture

Strong board oversight

fosters a positive and

transparent culture across

the Group. Ethics and

integrity are emphasised

to all employees, positively

impacting all stakeholders.

» Oversight: The Board foster a

transparent and accountable culture

across the Group. Key responsibilities

include:

- Setting strategic direction and values.

- Overseeing compliance, internal

controls and major decisions.

- Supporting governance through

three standing committees: Audit

& Compliance, Nominations &

Governance and Remuneration.

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IRO detail IRO name IRO brief description Kingspan Initiatives

Type: Positive

Impact - actual

Value chain:

Downstream

Transparency

and reporting

The Group promotes

transparency by regularly

reporting financial and

non-financial information

to stakeholders.

» Reporting & engaging: The

Group promotes transparency by

regularly providing stakeholders with

comprehensive financial and non-

financial information. Through annual

reports, sustainability updates and

active stakeholder engagement, we

ensure stakeholders are fully informed

about the Group’s operations, strategy

and impacts. In 2024, the executive

management and investor team

conducted 483 institutional one-on-one

and group meetings, including presenting

at 7 capital market conferences.

Type: Potential

Risk

Time Horizon:

Short-term +

Medium-term

Triggered by:

Dependency

Anti-fraud,

bribery and

corruption

The Group’s Anti-Fraud,

Bribery & Corruption

Policy aims to minimise

financial and reputational

damage from fraud,

bribery, or corruption.

Any violations could lead

to severe consequences,

including financial losses,

fines, imprisonment and

significant harm to the

Group’s reputation.

» Policies & internal controls: The Group’s

Anti-Fraud, Bribery & Corruption Policy

establishes a comprehensive system

to prevent, detect and respond to

incidents of fraud and corruption through

regular employee training, independent

investigations, clear reporting

mechanisms and strict disciplinary

measures, ensuring compliance with

legal and ethical standards across the

Group.

GOV-1 – The role of

the administrative,

management and

supervisory bodies

The Board of the Company is

responsible for the leadership,

strategic direction and overall

management of the Group,

ensuring the Company operates

with integrity and maintains

strong corporate governance. It

has established three standing

committees, Audit & Compliance,

Nominations & Governance and

Remuneration, to oversee specific

areas of governance and business

conduct. These committees

operate under written terms

of reference that clearly define

their responsibilities, ensuring

accountability and transparency

across the Group.

The Audit & Compliance Committee

monitors the integrity of the Group’s

financial statements and internal

controls, ensuring adherence to

regulatory and ethical standards.

This committee works closely with

the internal audit and compliance

teams to manage risks related to

business conduct. The Nominations

& Governance Committee ensures

the Board has the necessary

skills and experience to govern

effectively, including overseeing

matters of business conduct

and ethics. The Remuneration

Committee, meanwhile, ensures

that executive remuneration aligns

with both financial performance

and ethical behaviour.

The key strengths and relevant

experience of each director are

outlined in the Directors’ Report,

while the background, principal

skills and experience of the non-

executive directors are detailed in

the Report of the Nominations &

Governance Committee section of

this Annual Report.

G1-1 – Corporate

culture and business

conduct policies

The below policies apply to the

Group, its subsidiaries, joint

ventures and their directors, officers

and employees. These policies cover

all our businesses wherever they are

located. The Group policies can be

accessed on our website:

https://www.kingspangroup.com/

en/about/policies/.

The Group has implemented a suite

of policies to manage its IROs related

to business conduct and corporate

culture, with ultimate responsibility

held by divisional MDs. These

policies are designed to uphold the

highest ethical standards, ensure

transparency and foster a culture of

integrity across all operations. Key

publicly available policies include the

Code of Conduct, Anti-Fraud, Bribery

& Corruption Policy and Conflicts of

Interest Policy.

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235

The Code of Conduct reflects the

Group’s commitment to acting

responsibly, complying with

the law and maintaining high

ethical standards in interactions

with stakeholders. It applies to

all employees across the Group

and is supported by mandatory

training for all staff, including

new joiners. The Group Code of

Conduct incorporates our Policy

for a confidential independent

hotline and details that retaliation

or reprisals will not be tolerated.

The policy is underpinned by the

EthicsPoint hotline, a confidential

and anonymous reporting tool

available to both internal and

external stakeholders. Employees

are encouraged to report concerns

directly to their line managers,

but if this is not possible, they can

escalate matters to the Group Legal

team or through EthicsPoint. All

reports are overseen by the Head

of Internal Audit & Compliance and

the Company Secretary, ensuring

a robust process for investigating

incidents. Reports and outcomes,

including fraud attempts or

misconduct, are presented to the

Audit & Compliance Committee,

which also evaluates the

effectiveness of the confidential

independent hotline process. These

mechanisms are critical to how the

Group manages the material IROs

related to business conduct and

corporate culture.

The Anti-Fraud, Bribery & Corruption

Policy underscores the Group’s zero

tolerance approach to bribery and

corruption, mandating that all

incidents or suspicions are promptly

investigated and that appropriate

recovery and disciplinary actions

are taken. Compliance with this

policy is supported by the internal

Group Accounting Manual (GAM),

which governs financial and legal

compliance by providing clear

guidelines to prevent fraud, bribery

and corruption. The Group identifies

IT users as being at the highest risk

for corruption and bribery. For more

details on the training provided,

please refer to section G1-3.

The Conflicts of Interest Policy

establishes a framework for

identifying, disclosing and managing

conflicts of interest to maintain

impartiality and integrity. The

Board is responsible for establishing

systems to manage conflicts across

the Group, monitoring compliance

with the policy and reviewing

the policy regularly to ensure its

effectiveness. This policy strengthens

the Group’s governance by ensuring

transparency in managing potential

or actual conflicts.

Our People Passionate initiative,

launched in 2023, is a key

component of the Group’s efforts to

promote and evaluate its corporate

culture. This initiative aims to

enhance the employee experience

across the Group, while over time

enabling the Board to assess and

monitor the evolution of the Group’s

performance and corporate culture.

See section S1-4 Actions for further

detail. Corporate culture within the

Group is further supported by the

Group’s People & Organisation Policy.

The Group has no policies in place

with respect to animal welfare,

as this is not a material topic for

the Company. The Group remains

committed to ongoing evaluations

of its policies and practices to ensure

alignment with best practices and

regulatory requirements.

G1-2 – Management

of relationships with

suppliers

The Group seeks to build and

maintain long-term relationships

with key suppliers. Supplier

engagement, data tracking and

collaboration are integral to our

Planet Passionate strategic pillar,

ensuring that our building envelope

solutions deliver long-term,

sustainable performance. The Group

does not have a specific Policy to

prevent late payments to small and

medium-sized enterprises (SMEs).

However, we are committed to

working collaboratively with our

suppliers to ensure fair and timely

payments and to maintaining

positive relationships across the

supply chain.

The Group’s Code of Conduct plays

a central role in our approach to

managing supplier relationships. It

sets clear expectations of integrity,

honesty and legal compliance

for all employees, directors and

partners globally. These principles

are incorporated into the Group’s

Supplier Policy, which ensures that

our suppliers are aligned with our

ethical standards and expectations

for responsible business practices.

Sustainability factors are taken

into account through engagement

with suppliers, including during the

selection process, and alignment

with the Group’s Supplier Policy

and Code of Conduct. We aim to

ensure ongoing adherence to these

standards through continuous

engagement. As referenced in our

Supplier Policy, the Group reserves

the right to terminate the supplier

relationship if a supplier fails to

uphold the standards outlined in

the Policy.

In 2024, the Group developed the

SHREDD Policy, which outlines

our commitment to ensuring that

suppliers adhere to the highest

standards of human rights and

environmental sustainability. This

policy enables the Group to assess

and manage risks related to human

rights violations and environmental

impacts within our supply chain. The

SHREDD process will be regularly

reviewed and refined to ensure

that it continues to align with our

Group’s values, objectives and

evolving regulatory standards.

G1-3 – Prevention and

detection of corruption

and bribery

The Group has established a

comprehensive system to prevent,

detect and respond to allegations or

incidents of corruption and bribery.

This is outlined in our Anti-Fraud,

Bribery & Corruption Policy and

supported by the Group’s Code of

Conduct and our internal GAM,

which governs financial and legal

235

CSRD Sustainability Statement

236

Kingspan Group plc

compliance. These policies reflect

our commitment to integrity and

full compliance with applicable

laws. Oversight is provided by

the Board, Audit & Compliance

Committee and the Internal Audit &

Compliance team.

Our system includes comprehensive

measures such as fraud risk

assessments, third-party due

diligence and continuous

communication and training

to ensure compliance with our

standards. All relevant employees

receive mandatory training on the

Anti-Fraud, Bribery & Corruption

Policy every two years, reinforcing

their understanding of anti-

corruption laws, risk identification

and reporting procedures.

Responsibility for delivering this

training is assigned to each division’s

MD, supported by solutions from

Group Legal, ensuring tailored

implementation across functions.

Compliance with the Group’s

policies on corruption and bribery is

mandatory for all employees.

The Group rolled out targeted

training on its Anti-Fraud, Bribery &

Corruption Policy to all employees,

with a particular focus on functions

identified as at-risk. The Group

considers all IT users at risk due to

their access to sensitive systems

and data. Training is mandatory for

all employees and is delivered on a

two-year cycle to ensure ongoing

awareness and compliance with the

Group’s policy.

The Group Legal team provides

divisional teams with standardised

examples and guidance on training

content to ensure alignment

with regulatory requirements and

evolving risks. Responsibility for the

successful rollout of the training

lies with divisional teams, which

are equipped with the necessary

tools and resources to facilitate

compliance.

During the reporting period,

100% of employees in identified

at-risk functions received access

to training. Divisional teams are

also responsible for monitoring

training rollout rates and ensuring

timely notification of employee

obligations.

Allegations regarding corruption

and/or bribery may be addressed

through our confidential

independent hotline and all

investigations are conducted

independently by the Group Head

of Internal Audit & Compliance and

the Internal Audit & Compliance

Team, which operates separately

from the business functions

involved in the issue. All fraud and

cybercrime attempts, successful

or not, are reported to the Audit

& Compliance Committee at each

meeting, ensuring transparency and

comprehensive oversight.

Any suspected or confirmed

incidents of fraud, bribery,

corruption, sanctions violations, or

anti-competitive behaviour must

be promptly reported to the Group

CFO, Group Head of Internal Audit &

Compliance, Group Head of Legal,

Group Financial Controller and

Group Treasurer.

Failure to comply with these policies

may result in disciplinary action,

up to and including dismissal or

prosecution. This strict enforcement

upholds the Group’s ethical

standards and ensures compliance

across all operations. Each

leadership team is responsible for

clearly communicating the Group’s

stance on fraud to employees,

emphasising their roles and the

resources available to them.

The illustration below, which is

included in our Anti-Fraud, Bribery

& Corruption Policy, summarises the

key owners and measures for the

prevention, detection and response

to incidents of fraud, corruption and

bribery:

PREVENTION DETECTION RESPONSE

OWNERS

Board / Audit & Compliance Committee oversight

Executive and Line Management functions

Internal Audit & Compliance and monitoring functions

MEASURES

Fraud and misconduct

risk assessment

Code of Conduct and

related standards

Employee and third-party

due diligence

Communication and training

Process-specific fraud

risk controls

Confidential independent

hotline

Auditing and monitoring

Proactive forensic data

analysis

Fraud investigation protocols

Remedial action protocols

Internal disciplinary actions

External investigation and

prosecution

Annual Report & Financial Statements 2024

236

Kingspan Group plc

237

G1-4 – Confirmed

incidents of corruption

or bribery

The Group has established a

comprehensive framework to

prevent, detect and respond to

incidents of corruption and bribery,

as outlined in our Anti-Fraud,

Bribery & Corruption Policy (section

G1-3 of this report).

Key resources supporting these

efforts include a confidential

independent hotline for anonymous

reporting and a dedicated Internal

Audit & Compliance team who

oversee investigations to ensure

objectivity and impartiality. The

Group’s action plan incorporates

measures such as fraud risk

assessments, due diligence and

mandatory anti-corruption training,

which is delivered every two years.

Allegations are addressed through

confidential mechanism, with

findings regularly reported to the

Audit & Compliance Committee to

ensure accountability and oversight.

During the financial year, the Group

has reported zero convictions for

violations of anti-corruption and

anti-bribery laws.

Anti-corruption and anti-bribery: Unit 2024

Number of convictions for anti-corruption and anti-bribery laws Number 0

Total fines for violation of anti-corruption and anti-bribery laws €m 0

237

CSRD Sustainability Statement

238

Kingspan Group plc

APPENDICES

Appendix 1: Disclosure requirements and incorporation by reference

Disclosure

code

Disclosure name Section/

report

Page Reason for omitting

ESRS 2 - General disclosures

BP-1 General basis for preparation of the sustainability

statement

SUS 161

BP-2 Disclosures in relation to specific circumstances SUS 162

GOV-1 The role of the administrative, management and

supervisory bodies

BOARD/SUS 91

162

GOV-2 Information provided and sustainability matters

addressed by the undertaking’s administrative,

management and supervisory bodies

SUS 163

GOV-3 Integration of sustainability-related performance in

incentive schemes

REM/SUS 119, 163

GOV-4 Statement on due diligence SUS 163

GOV-5 Risk management and internal controls over

sustainability reporting

SUS 164

SBM-1 Strategy, business model and value chain BM&S/SUS/FS 30, 164,

286

SBM-2 Interests and views of stakeholders SUS 165

SBM-3 Material impacts, risks and opportunities and their

interaction with strategy and business model

SUS 165

IRO-1 Description of the process to identify and assess

material impacts, risks and opportunities

SUS 166

IRO-2 Disclosure requirements in ESRS covered by the

undertaking’s sustainability statement

SUS 169

ESRS E1 - Climate change

ESRS 2 GOV-3 Integration of sustainability-related performance in

incentive schemes

REM/SUS 119, 163

E1-1 Transition plan for climate change mitigation SUS 182

ESRS SBM-3 Material impacts, risks and opportunities and their

interaction with strategy and business model

SUS 177

ESRS 2 IRO-1 Description of the processes to identify and

assess material climate-related impacts, risks and

opportunities

SUS 166

E1-2 Policies related to climate change mitigation and

adaptation

SUS 189

E1-3 Actions and resources in relation to climate change

policies

SUS 182

E1-4 Targets related to climate change mitigation and

adaptation

SUS 182

E1-5 Energy consumption and mix SUS 190

E1-6 Scopes 1, 2 & 3 GHG emissions SUS 191

Annual Report & Financial Statements 2024

238

Kingspan Group plc

239

Disclosure

code

Disclosure name Section/

report

Page Reason for omitting

ESRS E1 - Climate change (continued)

E1-7 GHG removals and GHG mitigation projects

financed through carbon credits

SUS 192

E1-8 Internal carbon pricing SUS 192

E1-9 Anticipated financial effects from material physical

and transition risks and potential climate-related

opportunities

- - Transition exemption

ESRS E2 - Pollution

ESRS 2 IRO-1 Description of the processes to identify and assess

material pollution-related impacts, risks and

opportunities

SUS 166

E2-1 Policies related to pollution SUS 193

E2-2 Actions and resources related to pollution SUS 193

E2-3 Targets related to pollution SUS 193

E2-4 Pollution of air, water and soil (note: including

microplastics)

- No material IRO

identified related to

data points

E2-5 Substances of concern and substances of very high

concern

- No material IRO

identified related to

data points

E2-6 Anticipated financial effects from material

pollution-related risks and opportunities

- Transition exemption /

sensitive information

ESRS E3 – Water and marine resources

ESRS 2 IRO-1 Description of the processes to identify and assess

material water and marine resources-related

impacts, risks and opportunities

SUS 166

E3-1 Policies related to water and marine resources SUS 195

E3-2 Actions and resources related to water and marine

resources policies

SUS 195

E3-3 Targets related to water and marine resources SUS 195

E3-4 Water consumption - - Not material

E3-5 Anticipated financial effects from material

water and marine resources-related risks and

opportunities

- - Transition exemption

ESRS E4 – Biodiversity and ecosystems

ESRS 2 SBM-3 Material impacts, risks and opportunities and their

interaction with strategy and business model

SUS 196

ESRS 2 IRO-1 Description of the processes to identify and assess

material biodiversity and ecosystem-related

impacts, risks and opportunities

SUS 166

E4-1 Transition plan and consideration of biodiversity

and ecosystems in strategy and business model

SUS 196

E4-2 Policies related to biodiversity and ecosystems SUS 197

E4-3 Actions and resources related to biodiversity and

ecosystems

SUS 198

E4-4 Targets related to biodiversity and ecosystems SUS 198

Appendix 1: Disclosure requirements and incorporation by reference (continued)

239

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240

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Disclosure

code

Disclosure name Section/

report

Page Reason for omitting

E4-5 Impact metrics related to biodiversity and

ecosystems change

SUS 198

E4-6 Anticipated financial effects from material

biodiversity and ecosystem-related risks and

opportunities

- - Transition exemption

ESRS E5 – Resource use and circular economy

ESRS 2 IRO-1 Description of the processes to identify and assess

material resource use and circular economy-related

impacts, risks and opportunities

SUS 166

E5-1 Policies related to resource use and circular

economy

SUS 200

E5-2 Actions and resources related to resource use and

circular economy

SUS 201

E5-3 Targets related to resource use and circular

economy

SUS 201

E5-4 Resource inflows SUS 204

E5-5 Resource outflows SUS 205

E5-6 Anticipated financial effects from material

resource use and circular economy-related risks

and opportunities

- - Transition exemption

ESRS S1 – Own Workforce

ESRS 2 SBM-2 Interests and views of stakeholders SUS 212

ESRS 2 SBM-3 Material impacts, risks and opportunities and their

interaction with strategy and business model

SUS 209

S1-1 Policies related to own workforce SUS 212

S1-2 Processes for engaging with own workforce and

workers’ representatives about impacts

SUS 212

S1-3 Processes to remediate negative impacts and

channels for own workers to raise concerns

SUS 213

S1-4 Taking action on material impacts and approaches

to mitigating material risks and pursuing material

opportunities related to own workforce and

effectiveness of those actions and approaches

SUS 213

S1-5 Targets related to managing material impacts SUS 215

S1-6 Characteristics of the undertaking’s employees SUS 216

S1-7 Characteristics of non-employee workers in the

undertaking’s own workforce

- - Transition exemption

S1-8 Collective bargaining coverage and social dialogue

metrics

SUS 216

S1-9 Diversity metrics SUS 216

S1-10 Adequate wages SUS 218

S1-11 Social protection - - Transition exemption

S1-12 Persons with disabilities metrics - - Transition exemption

S1-13 Training and skills development metrics - - Transition exemption

S1-14 Health and safety metrics SUS 218

S1-15 Work-life balance metrics - - Transition exemption

Appendix 1: Disclosure requirements and incorporation by reference (continued)

Annual Report & Financial Statements 2024

240

Kingspan Group plc

241

Disclosure

code

Disclosure name Section/

report

Page Reason for omitting

S1-16 Compensation metrics (pay gap and total

remuneration)

SUS 219

S1-17 Incidents, complaints and severe human rights

impacts metrics

SUS 219

ESRS S2 – Workers in the value chain

ESRS 2 SBM-2 Interests and views of stakeholders SUS 221

ESRS 2 SBM-3 Material impacts, risks and opportunities related to

workers in the value chain

SUS 220

S2-1 Policies related to value chain workers SUS 221

S2-2 Processes for engaging with value chain workers

about impacts

SUS 222

S2-3 Processes to remediate negative impacts and

channels for value chain workers to raise concerns

SUS 222

S2-4 Taking action on material impacts on value chain

workers and approaches to managing material

risks and pursuing material opportunities related

to value chain workers and effectiveness of those

actions

SUS 222

S2-5 Targets related to managing material negative and

positive impacts

SUS 223

ESRS S3 – Affected communities

ESRS SBM-2 Interests and views of stakeholders SUS 225

ESRS SBM-3 Material impacts, risks and opportunities related to

affected communities

SUS 223

S3-1 Policies related to affected communities SUS 225

S3-2 Processes for engaging with affected communities

about impacts

SUS 225

S3-3 Processes to remediate negative impacts and

channels for affected communities to raise

concerns

SUS 226

S3-4 Taking action on material impacts on affected

communities and approaches to managing

material risks and pursuing material opportunities

related to affected communities and effectiveness

of those actions

SUS 226

S3-5 Targets related to managing material negative and

positive impacts

SUS 226

ESRS S4 – Consumers and end-users

ESRS 2 SBM-2 Interests and views of stakeholders SUS 229

ESRS 2 SBM-3 Material impacts, risks and opportunities related to

consumers and end-users

SUS 226

S4-1 Policies related to consumers and end-users SUS 229

S4-2 Processes for engaging with consumers and end-

users about impacts

SUS 230

S4-3 Processes to remediate negative impacts and

channels for consumers and end-users to raise

concerns

SUS 230

Appendix 1: Disclosure requirements and incorporation by reference (continued)

241

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242

Kingspan Group plc

Disclosure

code

Disclosure name Section/

report

Page Reason for omitting

S4-4 Taking action on material impacts on consumers

and end-users and approaches to managing

material risks and pursuing material opportunities

related to consumers and end-users and

effectiveness of those actions

SUS 230

S4-5 Targets related to managing material negative &

positive impacts

SUS 231

ESRS G1 – Business conduct

ESRS 2 GOV-1 The role of the administrative, supervisory and

management bodies

SUS 162,234

ESRS 2 IRO-1 Description of the processes to identify and assess

material impacts, risks and opportunities

SUS 166

G1-1 Business conduct policies and corporate culture SUS 234

G1-2 Management of relationships with suppliers SUS 235

G1-3 Prevention and detection of corruption and bribery SUS 235

G1-4 Confirmed incidents of corruption or bribery 237

G1-5 Political influence and lobbying activities - - Not Material

G1-6 Payment practices - - Not material

1 REM = Remuneration report. SUS = CSRD Sustainability Statement. BOARD = The Board.

BM&S = Business Model and Strategy. FS = Financial statements.

Appendix 1: Disclosure requirements and incorporation by reference (continued)

Annual Report & Financial Statements 2024

242

Kingspan Group plc

243

Appendix 2: Reporting with reference to the GRI (Global Reporting Initiative)

Standards

Statement of use Kingspan has reported the information cited in this GRI content index for the period

01.01.2024 to 31.12.24 with reference to the GRI Standards.

GRI 1 used GRI 1: Foundation 2021

GRI Standard Disclosure Page

GRI 2: General Disclosures 2021 2-1 Organisational details 30

GRI 2: General Disclosures 2021 2-2 Entities included in the organisation’s

sustainability reporting

328

GRI 2: General Disclosures 2021 2-4 Restatements of information A note has been added to all

cases where a restatement

has been provided

GRI 2: General Disclosures 2021 2-5 External assurance 156

GRI 2: General Disclosures 2021 2-9 Governance structure and composition 90, 98

GRI 2: General Disclosures 2021 2-11 Chair of the highest governance body 85

GRI 2: General Disclosures 2021 2-14 Role of the highest governance body in

sustainability reporting

162

GRI 2: General Disclosures 2021 2-18 Evaluation of the performance of the highest

governance body

GRI 2: General Disclosures 2021 2-19 Remuneration policies 110

GRI 2: General Disclosures 2021 2-22 Statement on sustainable development strategy 38

GRI 2: General Disclosures 2021 2-26 Mechanisms for seeking advice and raising

concerns

234

GRI 2: General Disclosures 2021 2-29 Approach to stakeholder engagement 165

GRI 3: Material Topics 2021 3-1 Process to determine material topics 165

GRI 101: Biodiversity 2024 101-1 Policies to halt and reverse biodiversity loss 196

GRI 301: Materials 2016 301-1 Materials used by weight or volume 204

GRI 301: Materials 2016 301-2 Recycled input materials used 204

GRI 302: Energy 2016 302-1 Energy consumption within the organisation 190

GRI 302: Energy 2016 302-3 Energy intensity 190

GRI 303: Water and Effluents

2018

303-1 Interactions with water as a shared resource 194

GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions 191

GRI 305: Emissions 2016 305-2 Energy indirect (Scope 2) GHG emissions 191

GRI 305: Emissions 2016 305-3 Other indirect (Scope 3) GHG emissions 191

GRI 305: Emissions 2016 305-4 GHG emissions intensity 191

GRI 306: Waste 2020 306-3 Waste generated 207

GRI 306: Waste 2020 306-4 Waste diverted from disposal 207

GRI 306: Waste 2020 306-5 Waste directed to disposal 207

GRI 403 Occupational Health

and Safety 2018

403-1 Occupational health and safety management

system

218

243

CSRD Sustainability Statement

244

Kingspan Group plc

Appendix 3: SASB

Topic Accounting metric Section Comment Code

Greenhouse

Gas

Emissions

Gross global Scope 1 emissions, percentage

covered under emissions-limiting regulations

E1-6 - EM-CM-

110a.1

Discussion of long-term and short-term

strategy or plan to manage Scope 1

emissions, emissions reduction targets and

an analysis of performance against those

targets

E1-1, E1-

3, E1-4

- EM-CM-

110a.2

Air Quality Air emissions of the following pollutants:

(1) NOx (excluding N

O), (2) SOx, (3)

particulate matter (PM

), (4) dioxins/

furans, (5) volatile organic compounds

(VOCs), (6) polycyclic aromatic

hydrocarbons (PAHs) and (7) heavy metals

- As per section E2 - Pollution,

the sub topic of Pollution to

Air, Water and Soil has been

deemed not material for our

own operations.

EM-CM-

120a.1

Energy

Management

(1) Total energy consumed, (2) percentage

grid electricity, (3) percentage alternative,

(4) percentage renewable

E1-5 - EM-CM-

130a.1

Water

Management

(1) Total fresh water withdrawn, (2)

percentage recycled, (3) percentage in

regions with High or Extremely High Baseline

Water Stress

- As per section E3 - Water and

marine resources, water has

been deemed not material for

our own operations.

EM-CM-

140a.1

Waste

Management

Amount of waste generated, percentage

hazardous, percentage recycled

E5-5 - EM-CM-

150a.1

Biodiversity

Impacts

Description of environmental management

policies and practices for active sites

- See Kingspan’s Environmental

Policy.

EM-CM-

160a.1

Terrestrial acreage disturbed, percentage of

impacted area restored

- This indicator is not applicable

to Kingspan. Kingspan does not

operate quarries.

EM-CM-

160a.2

Workforce

Health &

Safety

(1) Total recordable incident rate (TRIR)

and (2) near miss frequency rate (NMFR)

for (a) fulltime employees and (b) contract

employees

S1-14 Near miss data is recorded

at divisional level for internal

reporting purposes only.

EM-CM-

320a.1

Number of reported cases of silicosis - This indicator is not applicable

to Kingspan. Employees and

workers are not exposed to

large amounts of crystalline

silica dust.

EM-CM-

320a.2

Product

Innovation

Percentage of products that qualify for

credits in sustainable building design and

construction certifications

- 55%% of Kingspan’s product

revenue contributes directly or

indirectly to resource efficiency,

such as, energy efficiency or

lowering carbon emissions.

EM-CM-

410a.1

Total addressable market and share of

market for products that reduce energy,

water and/or material impacts during usage

and/or production

- A 2024 report from Grand View

Research estimated the Global

Insulation Market size to be

$65.1bn in 2023.

EM-CM-

410a.2

Pricing

Integrity &

Transparency

Total amount of monetary losses as a result

of legal proceedings associated with cartel

activities, price fixing and anti-trust activities

- Kingspan did not receive any

fines or sanctions in relation to

cartel activities, price fixing and

anti-trust activities.

EM-CM-

520a.1

Annual Report & Financial Statements 2024

244

Kingspan Group plc

245

Appendix 4: Datapoints that derive from other EU legislation

Disclosure requirement Data

point

SFDR

reference

Pillar 3

reference

Benchmark

regulation

reference

EU Climate

Law

reference

Section Page

ESRS 2 GOV-1 Board’s

gender diversity

21 (d) x x BOARD 98

ESRS 2 GOV-1 Percentage

of board members who

are independent

21 (e) x BOARD 98

ESRS 2 GOV-4 Statement

on due diligence

30 x SUS 163

ESRS 2 SBM-1 Involvement

in activities related to

fossil fuel activities

40 (d) i x x x Not applicable -

ESRS 2 SBM-1 Involvement

in activities related to

chemical production

40 (d) ii x x Not applicable -

ESRS 2 SBM-1 Involvement

in activities related to

controversial weapons

40 (d) iii x x Not applicable -

ESRS 2 SBM-1 Involvement

in activities related to

cultivation and production

of tobacco

40 (d) iv x Not applicable -

ESRS E1-1 Transition plan

to reach climate neutrality

by 2050

14 x SUS 182

ESRS E1-1 Undertakings

excluded from Paris-

aligned Benchmarks

16 (g) x x SUS 182

ESRS E1-4 GHG emission

reduction targets

34 x x x SUS 182

ESRS E1-5 Energy

consumption from fossil

sources disaggregated by

sources (only high climate

impact sectors)

38 x SUS 190

ESRS E1-5 Energy

consumption and mix

37 x SUS 190

ESRS E1-5 Energy intensity

associated with activities

in high climate impact

sectors

40-43 x SUS 190

ESRS E1-6 Gross Scope 1, 2,

3 and Total GHG emissions

44 x x x SUS 191

ESRS E1-6 Gross GHG

emissions intensity

53-55 x x x SUS 191

ESRS E1-7 GHG removals

and carbon credits

56 x Not applicable -

ESRS E1-9 Exposure of the

benchmark portfolio to

climate-related physical

risks

66 x Transition

exemption

245

CSRD Sustainability Statement

246

Kingspan Group plc

Disclosure requirement Data

point

SFDR

reference

Pillar 3

reference

Benchmark

regulation

reference

EU Climate

Law

reference

Section Page

ESRS E1-9 Disaggregation

of monetary amounts by

acute and chronic physical

risk; location of significant

assets at material physical

risk

66 (a);

66 (c)

x Transition

exemption

ESRS E1-9 Breakdown

of the carrying value of

its real estate assets by

energy-efficiency classes

67 (c) x Transition

exemption

ESRS E1-9 Degree of

exposure of the portfolio

to climate-related

opportunities

69 x Transition

exemption

ESRS E2-4 Amount of each

pollutant listed in Annex II

of the E-PRTR Regulation

emitted to air, water and

soil

28 x Not material -

ESRS E3-1 Water and

marine resources

9 x SUS 195

ESRS E3-1 Dedicated policy 13 x SUS 195

ESRS E3-1 Sustainable

oceans and seas

14 x Not material -

ESRS E3-4 Total water

recycled and reused

28 (c) x Not material -

ESRS E3-4 Total water

consumption in m3 per

net revenue on own

operations

29 x Not material -

ESRS 2- SBM 3 - E4 16 (a)i x SUS 196

ESRS 2- SBM 3 - E4 16 (b) x SUS 196

ESRS 2- SBM 3 - E4 16 (c) x SUS 196

ESRS E4-2 Sustainable

land / agriculture practices

or policies

24 (b) x Not material -

ESRS E4-2 Sustainable

oceans / seas practices or

policies

24 (c) x Not material -

ESRS E4-2 Policies to

address deforestation

24 (d) x Not material -

ESRS E5-5 Non-recycled

waste

37 (d) x SUS 205

ESRS E5-5 Hazardous

waste and radioactive

waste

39 x SUS 205

ESRS 2- SBM3 – S1 Risk of

incidents of forced labour

14 (f) x SUS 209

ESRS 2- SBM3 – S1 Risk of

incidents of child labour

14 (g) x SUS 209

Appendix 4: Datapoints that derive from other EU legislation (continued)

Annual Report & Financial Statements 2024

246

Kingspan Group plc

247

Disclosure requirement Data

point

SFDR

reference

Pillar 3

reference

Benchmark

regulation

reference

EU Climate

Law

reference

Section Page

ESRS S1-1 Human rights

policy commitments

20 x SUS 212

ESRS S1-1 Due diligence

policies on issues

addressed by the

fundamental International

Labour Organisation

Conventions 1 to 8

21 x SUS 212

ESRS S1-1 Processes and

measures for preventing

trafficking in human

beings

22 x SUS 212

ESRS S1-1 Workplace

accident prevention policy

or management system

23 x SUS 212

ESRS S1-3 Grievance/

complaints handling

mechanisms

32 (c) x SUS 213

ESRS S1-14 Number of

fatalities and number

and rate of work-related

accidents

88 (b)

and (c)

x x SUS 218

ESRS S1-14 Number of

days lost to injuries,

accidents, fatalities or

illness

88 (e) x Transition

exemption

ESRS S1-16 Unadjusted

gender pay gap

97 (a) x x SUS 219

ESRS S1-16 Excessive CEO

pay ratio

97 (b) x SUS 219

ESRS S1-17 Incidents of

discrimination

103 (a) x SUS 219

ESRS S1-17 Non-respect of

UNGPs on Business and

Human Rights and OECD

104 (a) x x SUS 219

ESRS 2- SBM3 – S2

Significant risk of child

labour or forced labour in

the value chain

11 (b) x SUS 221

ESRS S2-1 Human rights

policy commitments

17 x SUS 221

ESRS S2-1 Policies related

to value chain workers

18 x SUS 221

ESRS S2-1 Non-respect of

UNGPs on Business and

Human Rights principles

and OECD guidelines

19 x x SUS 221

Appendix 4: Datapoints that derive from other EU legislation (continued)

247

CSRD Sustainability Statement

248

Kingspan Group plc

Disclosure requirement Data

point

SFDR

reference

Pillar 3

reference

Benchmark

regulation

reference

EU Climate

Law

reference

Section Page

ESRS S2-1 Due diligence

policies on issues

addressed by the

fundamental International

Labour Organisation

Conventions 1 to 8

19 x SUS 221

ESRS S2-4 Human rights

issues and incidents

connected to its upstream

and downstream value

chain

36 x SUS 222

ESRS S3-1 Human rights

policy commitments

16 x SUS 225

ESRS S3-1 Non-respect

of UNGPs on Business

and Human Rights, ILO

principles and OECD

guidelines

17 x x SUS 225

ESRS S3-4 Human rights

issues and incidents

36 x SUS 226

ESRS S4-1 Policies related

to consumers and end-

users

16 x SUS 229

ESRS S4-1 Non-respect of

UNGPs on Business and

Human Rights and OECD

guidelines

17 x x SUS 229

ESRS S4-4 Human rights

issues and incidents

35 x SUS 230

ESRS G1-1 United Nations

Convention against

Corruption

10 (b) x SUS 234

ESRS G1-1 Protection of

whistle-blowers

10 (d) x SUS 234

ESRS G1-4 Fines for

violation of anti-corruption

and anti-bribery laws

24 (a) x x SUS 237

ESRS G1-4 Standards of

anti-corruption and

anti-bribery

24 (b) x SUS 237

Note: Sustainable Finance Disclosures Regulation (SFDR).

SUS = CSRD Sustainability Statement. BOARD = The Board

Appendix 4: Datapoints that derive from other EU legislation (continued)

Annual Report & Financial Statements 2024

248

Kingspan Group plc

249

Appendix 5: Summary of Key Terms and Acronyms:

Acronym Definition

CSRD Corporate Sustainability Reporting Directive

DMA Double Materiality Assessment

ESRS European Sustainability Reporting Standards

IRO Impact, Risk and Opportunity

DNSH Do No Significant Harm

GHG Greenhouse Gas

KPI Key Performance Indicator

SAQ Self-Assessment Questionnaire

TCFD Task Force on Climate-related Financial Disclosures

ESG Environmental, Social and Governance

EFRAG European Financial Reporting Advisory Group

CEO Chief Executive Officer

NPS Net Promoter Score

LTIP Long-Term Incentive Plan

NGOs Non-Governmental Organisations

SSPs Shared Socioeconomic Pathways

IAMs Integrated Assessment Models

RCP Representative Concentration Pathways

BRF Biodiversity Risk Filter

MDI Methylene Diphenyl Diisocyanate

PU/PUR Polyurethane

PIR Polyisocyanurate

EIA Environmental Impact Assessment

CO2 Carbon Dioxide

LEC Lower Embodied Carbon

ETS II Emissions Trading Scheme

GWP Global Warming Potential

CCS Climate Change Section

CMR Carcinogenic, Mutagenic, Reprotoxic

WS Water Section

MNCs Multinational Enterprises

RBC Responsible Business Conduct

UNGP UN Guiding Principles on Business and Human Rights

ILO International Labour Organisation

MD Managing Director

RWH Rainwater Harvesting

BA Biodiversity Appendix

EIA Environmental Impact Assessment

IFC International Finance Corporation

CES Circular Economy Section

EPDs Environmental Product Declarations

GSI Global Slavery Index

249

CSRD Sustainability Statement

250

Kingspan Group plc

Acronym Definition

PEAK Programme for Executive Acceleration in Kingspan

EWC European Works Council

SHREDD Supplier Human Rights and Environmental Due Diligence Policy

MIM Marketing Integrity Manual

FERC Fire Engineering Research Centre

PCR Product Compliance Register

SMEs Small and Medium-sized Enterprises

GAM Group Accounting Manual

Scope 1 GHG emissions:

Environmental data is collated

in the environmental reporting

platform we use at Kingspan

Group on a monthly basis (where

applicable). Scope 1 emissions

were calculated in the platform

by applying an extensive range of

emission factors from a plethora of

sources, including but not limited

to IEA, DEFRA and EPA, to the

energy consumption data. Energy

sources included are purchased

fuels for both stationary and mobile

combustion, while non-energy

sources include emissions from the

use of blowing agents and catalysts.

Scope 1 emissions include CH

and N

O from the combustion of

biomass.

Scope 2 GHG emissions:

Environmental data is collated

in the environmental reporting

platform we use at Kingspan

Group on a monthly basis (where

applicable). Scope 2 emissions

were calculated in the platform

by applying an extensive range of

emission factors from a plethora

of sources, including but not

limited to IEA, DEFRA and EPA,

to the energy consumption data.

Our platform calculates both

location and market-based scope 2

emissions by applying the applicable

emission factors; the emission

factors applied to calculate scope

2 emissions do not separate the

percentage of biomass or biogenic

emissions. Our renewable energy

related to scope 2 GHG emissions

is made up of approximately 2%

district heating and 98% Renewable

electricity supply contracts bundled

with renewable energy attributes

including Renewable Energy

Certificates (RECs) and Change to

Guarantees of Origin (GoOs). The

remaining approximately 31% of our

purchased energy, related to scope

2 GHG emissions, is non-renewable.

Note: Emission factor databases

may be a source of limitation

for scope 1 & 2 GHG emissions

calculations.

Scope 3 GHG emissions:

Our scope 3 GHG emissions are

calculated for the whole business,

excluding all acquisitions that

occurred after 30 September 2024.

34% of our scope 3 GHG emissions

were calculated using primary data

obtained from suppliers and value

chain partners, supported by our

supplier engagement programme.

Methodologies and assumptions

for each scope 3 category, where

applicable, are outlined below.

Note: Scope 3 GHG emissions

calculation is limited by challenges

in data collection, reliance on

secondary data and the use of

monetary-based emissions.

C1. Purchased good and services:

In 2024, we transitioned to

a SaaS platform to manage

our scope 3, category 1

GHG emissions, utilising

both monetary and physical

emissions factors from primary

and secondary sources.

For raw materials, we prioritise

primary data, product and

supplier specific, when

available. When primary data is

not available, we aim to apply

alternative physical emission

factors.

For the remaining activity data,

we use monetary emission

factors from sources including

but not limited to the EPA,

Ecoinvent, DEFRA, accounting

for inflation and deflation,

where necessary.

C2. Capital goods: For this

category, the most suitable

monetary emission factors,

sourced from the EPA, were

applied for each category of

capital expenditure.

C3. Fuel-and-energy related

activities: Fuel-based method.

We calculated this category by

using the amount of fuels and

electricity consumed during the

year and a combination of WTT

emission factors (factor source:

mainly DEFRA).

C4. Upstream transportation

and distribution: Spend-

based method. According to

the GHG Protocol - Guidance

document: Outbound

transportation and distribution

services that are purchased

Appendix 6: Methodologies and significant assumptions for the

calculation of GHG emissions

Appendix 5: Summary of Key Terms and Acronyms (continued):

Annual Report & Financial Statements 2024

250

Kingspan Group plc

251

by the reporting company

are excluded from category

9 and included in category

4 (Upstream transportation

and distribution) because the

reporting company purchases

the service. Taking this into

account, all transport costs

(both for upstream and

downstream transport)

are reported under this

category. We used spend-

based emission factors and

calculated our emissions

based on the amount we

spent on transportation

costs. The monetary

emissions factor was sourced

from the EPA database.

C5. Waste generated in

operations: Waste-type-

specific method. We

calculated the emissions

for waste generated in our

operations using the amount

of waste generated during

the year and waste specific

emission factors (factor

source: mainly DEFRA).

C6. Business travel: Spend-

based method. We used the

cost for business travel across

our Group for 2024 and then

we made assumptions for

the breakdown of that cost

in different categories (e.g.

hotel stays and meals).

We then applied relevant

monetary emissions factors

from the EPA database.

C7. Employee commuting:

Spend-Based Method: Our

calculations for this category

are based on the number of

employees. We estimated

employees’ commuting

distances (round trip) and

the number of working days,

applying a relevant emission

factor, sourced from the

DEFRA database.

C8. Upstream leased assets:

Emissions from operation of

assets leased by Kingspan,

already included in Scope

1 and 2 and therefore, this

Scope 3 category is assumed

to be not applicable.

C9. Downstream

transportation and

distribution: Reported under

category 4, in accordance

with GHG protocol guidance.

C10. Processing of sold

products: The majority of

Kingspan products do no

need processing, so this

category is assumed to be

not applicable.

C11. Use of sold products: This

category includes emissions

from blowing agents released

during product use. Each

blowing agent has an annual

loss rate, as provided by the

IPCC, which we apply over a

50-year period to estimate

total emissions. Using

IPCC data, we calculate

fugitive emissions taking

place annually from our

products. We then assume a

product lifespan and apply

the relevant annual loss

percentages to estimate total

emissions over the lifetime of

products sold in 2024.

C12. End of life treatment of

sold products: More than

80% of the emissions of

this category are attributed

to the end-of-life loss of

blowing agents used for

our insulation products.

The E-o-l percentage is

derived from IPPC. The rest

of the emissions are from

the end-of-life treatment

of sold products. They

are estimated based on

sold product volumes and

industry average end-of-life

management practices.

C13. Downstream leased assets:

Kingspan’s business model

does not include the lease

of assets to other entities,

so this scope 3 category

is assumed to be not

applicable.

C14. Franchises: The Group did

not operate any franchises,

so scope 3, category 14 is not

relevant to our operations.

C15. Investments: According to

the GHG protocol, category

15 is designed primarily for

private financial institutions

(e.g., commercial banks),

but is also relevant to public

financial institutions (e.g.,

multilateral development

banks, export credit

agencies) and other entities

with investments not

included in scope 1 and scope

2. As a result, it’s not relevant

for Kingspan.

Recalculations:

To ensure comparable boundaries

for each year, Kingspan

recalculates its emissions from

acquisitions prior to ownership

for all relevant categories ( C1,

C2, C4, C6, C7). An “all year”

approach is used to recalculate

emissions for the whole year,

as recommended by the GHG

Protocol. These emissions are

retroactively added to each

year from 2020 (the base year)

onwards.

For 2024, scope 3 emissions for

acquisitions were calculated

as described above, covering

only the period of ownership.

To extrapolate to a full year,

an average monthly rate is

determined based on the related

data. This rate is then used

to estimate emissions for the

pre-ownership period, utilising

appropriate emission factors for

each period.

Appendix 6: Methodologies and significant assumptions for the

calculation of GHG emissions (continued)

251

CSRD Sustainability Statement

Financial

Statements

Kingspan Group plc

Annual Report & Financial Statements 2024

252

Crystal Bridges

Museum of

American Art

Arkansas, USA

Insulated Panels

Morin Pulse Panels

253

Financial Statements

Independent Auditor’sReport 254

Consolidated Income Statement 264

Consolidated Statement of Comprehensive Income 265

Consolidated Statement of Financial Position 266

Consolidated Statement of Changes In Equity 267

Consolidated Statement of Cash Flows 269

Company Statement of Financial Position 270

Company Statement of Changes In Equity 271

Company Statement of Cash Flows 272

NOTES TO THE FINANCIAL STATEMENTS 273

1 Statement of Accounting Policies 273

2 Segment Reporting

283

3 Employees 286

4 Finance Expense And Finance Income 288

5 Profit For The Year Before Income Tax 288

6 Directors’ Remuneration 289

7 Income Tax Expense 290

8 Earnings Per Share 291

9 Goodwill 291

10 Other Intangible Assets 293

11 Property, Plant And Equipment 294

12 Financial Assets 295

13 Investment In Associates 295

14 Inventories 296

15 Trade And Other Receivables 296

16 Trade And Other Payables 297

17 Leases 297

18 Interest Bearing Loans And Borrowings 298

19 Deferred Contingent Consideration 300

20 Financial Risk Management And Financial Instruments 301

21 Provisions For Liabilities 310

22 Deferred Tax Assets And Liabilities 311

23 Business Combinations 312

24 Share Capital 315

25 Share Premium 315

26 Treasury Shares 316

27 Retained Earnings 316

28 Dividends 316

29 Non-Controlling Interest 317

30 Reconciliation Of Net Cash Flow To Movement In Net Debt 317

31 Guarantees And Other Financial Commitments 318

32 Pension Obligations 318

33 Related Party Transactions 322

34 ContingentLiabilities 323

35 Events Subsequent To Year End 324

36 Approval Of Financial Statements 324

OTHER INFORMATION

Alternative Performance Measures 325

Principal Subsidiaries and Substantial Undertakings 328

Shareholder Information 330

Corporate Information 331

Group 5 year summary 332

INDEPENDENT AUDITOR’SREPORT

to the Members of Kingspan Groupplc

Report on the audit of the

financialstatements

Opinion

We have audited the European Single

Electronic Format financial statements

(‘the financial statements’) of

Kingspan Group plc (‘the Company’)

and its subsidiaries (‘the Group’) for

the year ended 31 December 2024,

which comprise the Consolidated

Income Statement, the Consolidated

Statement of Comprehensive Income,

the Consolidated Statement of Financial

Position, the Consolidated Statement

of Changes in Equity, the Consolidated

Statement of Cash Flows, the Company

Statement of Financial Position, the

Company Statement of Changes in

Equity, the Company Statement of

Cash Flows and notes to the financial

statements, including the material

accounting policy information set out in

note 1. The financial reporting framework

that has been applied in their preparation

is Irish Law and International Financial

Reporting Standards (IFRS) as adopted

by the European Union and, as regards

the Company financial statements, as

applied in accordance with the provisions

of the Companies Act 2014.

In ouropinion:

• the Group financial statements give

a true and fair view of the assets,

liabilities and financial position of the

Group as at 31 December 2024 and of

its profit for the year then ended;

• the Company statement of financial

position gives a true and fair view of

the assets, liabilities and financial

position of the Company as at 31

December 2024;

• the Group financial statements

have been properly prepared in

accordance with IFRS as adopted by

the EuropeanUnion;

• the Company financial statements

have been properly prepared in

accordance with IFRS as adopted

by the European Union as applied in

accordance with the provisions of the

Companies Act 2014; and

• the Group financial statements and

Company financial statements have

been properly prepared in accordance

with the requirements of the

Companies Act 2014 and, as regards

the Group financial statements,

Article 4 of the IASRegulation.

Basis foropinion

We conducted our audit in accordance

with International Standards on Auditing

(Ireland) (‘ISAs (Ireland)’) and applicable

law. Our responsibilities under those

standards are further described in the

Auditor’s Responsibilities for the Audit of

the Financial Statements section of our

report. We are independent of the Group

and Company in accordance with ethical

requirements that are relevant to our

audit of financial statements in Ireland,

including the Ethical Standard as applied

to public interest entities issued by the

Irish Auditing and Accounting Supervisory

Authority (‘IAASA’), and we have fulfilled

our other ethical responsibilities in

accordance with theserequirements.

We believe that the audit evidence

we have obtained is sufficient and

appropriate to provide a basis for

ouropinion.

Conclusions relating to

going concern

In auditing the financial statements,

we have concluded that the Directors’

use of the going concern basis of

accounting in the preparation of the

financial statements is appropriate. Our

evaluation of the Directors’ assessment

of the Group and Company’s ability to

continue to adopt the going concern

basis of accounting included:

• In conjunction with our walkthrough

of the Group’s financial statement

close process, we confirmed our

understanding of management’s

going concern assessment process

and also engaged with management

early to ensure all key factors were

considered in theirassessment.

• We obtained management’s going

concern assessment, including

the cash forecast and covenant

calculation for the going concern

period which covers a period of at

least twelve months from the date of

signing this audit opinion.

• We considered the appropriateness

of the methods used to calculate

the cash forecasts and covenant

calculations and determined

through inspection and testing of

the methodology and calculations

that the methods utilised were

appropriately sophisticated to be able

to make an assessment for theGroup.

• We considered the mitigating factors

included in the cash forecasts and

covenant calculations that are within

control of the Group. This includes

review of the Group’s non-operating

cash outflows and evaluating the

Group’s ability to control these

outflows as mitigating actions if

required.

• We performed reverse stress testing in

order to identify factors which would

lead to the Group utilising all liquidity

or breaching financial covenants

during the going concern assessment

period. None of these factors were

considered likely.

• We reviewed the Group’s going

concern disclosures included in the

annual report in order to assess that

the disclosures were appropriate

and in conformity with reporting

standards.

The Group continued to generate

significant operating cash flows which

amounted to €894.5 million in 2024.

At 31 December 2024, the Group has

unrestricted cash and cash equivalents of

€1,005.4 million and unused committed

debt facilities of up to €800 million from

a revolving bank credit facility expiring in

May 2027.

The maintenance and integrity of the Kingspan Group plc web site is the responsibility of the directors; the work carried out by the auditors does

not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the

financial statements since they were initially presented on the web site.

254

Kingspan Group plc Annual Report & Financial Statements 2024

INDEPENDENT AUDITOR’SREPORT (continued)

to the Members of Kingspan Groupplc

Conclusion

Based on the work we have performed,

we have not identified any material

uncertainties relating to events

or conditions that, individually or

collectively, may cast significant doubt

on the Group and Company’s ability to

continue as a going concern for a period

of at least twelve months from when

the financial statements are authorised

for issue.

In relation to the Group and Company’s

reporting on how they have applied the

UK Corporate Governance Code, we

have nothing material to add or draw

attention to in relation to the Directors’

statement in the financial statements

about whether the Directors considered it

appropriate to adopt the going concern

basis of accounting.

Our responsibilities and the

responsibilities of the Directors with

respect to going concern are described

in the relevant sections of this report.

However, because not all future events

or conditions can be predicted, this

statement is not a guarantee as to the

Group and the Company’s ability to

continue as a going concern.

Overview of our auditapproach

Key audit matters • The key audit matters that we identified in the current yearwere:

» Warranty provisions included within Provisions for Liabilities

» Revenuerecognition

» Accounting for acquisitions

Audit scope • We performed an audit of the complete financial information of 20 operating units and performed

audit procedures on specific balances for a further 42 operating units and central procedures on

purchase price accounting for acquisitions, goodwill impairment testing, taxation and transfer pricing,

leases, share-based payments, retirement benefit obligations and going concern.

• We performed procedures at a further 18 operating units that were specified by the Group audit team in

response to specific risk factors.

• ‘Operating units’ represent business units across the Group considered for audit scoping purposes.

Materiality • Overall Group materiality was assessed to be €41.6 million which represents approximately 5% of Group

Profit before tax.

The key audit matters set out in the table below are consistent with those reported in 2023, with the exception of the addition of

“Accounting for acquisitions” due to the increase in the size and level of acquisition activity in 2024.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial

statements in the current period and include the most significant assessed risks of material misstatement (whether or not due to

fraud) that we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources

in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the

financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

255

Financial Statements

INDEPENDENT AUDITOR’SREPORT (continued)

to the Members of Kingspan Groupplc

Risk Our response to the risk Key observations

communicated to the

Audit & Compliance

Committee

Warranty provisions (included within

Provisions for Liabilities 2024: €164.3

million, 2023: €183.9 million)

The Group’s business involves the sale of

products under warranty, some of which

use new technology and applications.

Due to the nature of its product offering,

the Group has significant exposure to

warranty claims which are inherently

uncertain in nature. Management

are required to exercise significant

judgement with regard to warranty

provision assumptions.

Changes in these assumptions, which

may be subject to management

override, can materially affect the levels

of provisions recorded in the financial

statements due to the higher estimation

uncertainty on the Group’s costs of

repairing and replacing, or otherwise

making reparations for the consequences

of, product that is ascertained to

befaulty.

Refer to the Audit and Compliance

Committee Report (page 130); the

Statement of Accounting Policies (page

273); and note 21 of the Group Financial

Statements (page 310).

We performed audit procedures that included

understanding the Group’s process for recording and

monitoring potential warranty claims incorporating

management’s review of significant assumptions

applied in the provision calculation and the recording

of the resulting amounts (including walkthroughs of

the design and implementation of relevant controls);

consideration of the nature and basis of the provision;

review and assessment of correspondence in relation

to specific claims; progress on individual significant

claims; and relevant settlement history of claims and

utilisation of relatedprovisions.

We tested the validity, completeness and accuracy

of the data used in the calculations of product

return rates. We evaluated and tested the Group’s

assumptions developed and used in the determination

of the provisions by examining potential failure rates,

considering past failure rates, the costs estimated for

remediation and examining related settlements where

necessary. We considered whether alternative rates

to those employed by management might be more

appropriate and further tested manual journal entries.

We substantively tested material movements in

the provisions, including warranty provisions arising

on acquisitions, and considered the accounting for

movements in the provision balances and the related

disclosures for compliance with IAS 37 Provisions,

Contingent Liabilities and Contingent Assets.

The above procedures are performed locally

by component teams. We performed full and

specific scope audit procedures over this risk at

38 operating units.

Our observations included

an outline of the audit

procedures performed,

management’s key

judgements and the

results of our testing.

Our planned audit

procedures in respect

of warranty provision

were completed without

exception.

256

Kingspan Group plc Annual Report & Financial Statements 2024

INDEPENDENT AUDITOR’SREPORT (continued)

to the Members of Kingspan Groupplc

Risk Our response to the risk Key observations

communicated to the

Audit & Compliance

Committee

Revenue recognition (2024: €8,608.0

million, 2023: €8,090.6million)

There is a risk that revenue may be

inflated through management override

of controls by posting manual journal

adjustments to achieve revenue targets

orforecasts.

There is no significant judgement

or estimate associated with the

identifiedrisk.

Refer to the Audit and Compliance

Committee Report (page 130); the

Statement of Accounting Policies (page

273); and note 2 of the Group Financial

Statements (page 283).

We performed procedures on revenue at all in-scope

components, as outlined in further detail in the

‘Tailoring the scope’ sectionbelow.

We obtained an understanding of each in-scope

component’s revenue recognition policy and how it

is applied (depending on the nature of the revenue

recognised at each component), including a

walkthrough of the design and implementation of

relevant controls; performed detailed transactional

testing of revenue recognised throughout the year,

commensurate with the higher audit risk assigned

to revenue; examined supporting documentation

including customer contracts and terms of

agreements, statements of works or purchase orders,

sales invoices, customer balance confirmations

and cash receipts to determine whether revenue is

recognised in accordance with terms of contracts and

the Group accounting policies. We also performed cut-

off procedures and review of credit memos and other

adjustments such as discounts andrebates.

For significant manual journals posted to revenue, we

identified journal sources, profiled journal activity by

month and compared it to the prior year, analysed who

posted these journals considering our understanding

of the process, and followed up on any unusual trends

and anomalies. We tested non-routine material top-

side adjustments recorded in revenueaccounts.

In some components, we utilised data analytics

procedures. This included correlation analysis of

the strength of relationship between revenue and

other accounts to identify anomalies and unusual

journalentries.

We performed procedures on key financial statement

disclosures for compliance with IFRS 15 Revenue from

Contracts withCustomers.

The above procedures are performed locally by

component teams. We performed full and specific

scope audit procedures over this risk at 55 locations.

Our observations included

an overview of the risk,

outline of the audit

procedures performed,

the judgements we

focused on and the results

of ourtesting.

Our planned audit

procedures in respect

of revenue recognition

were completed without

exception.

257

Financial Statements

INDEPENDENT AUDITOR’SREPORT (continued)

to the Members of Kingspan Groupplc

Risk Our response to the risk Key observations

communicated to the

Audit & Compliance

Committee

Accounting foracquisitions

Significant acquisitions identified

during the year relate to STEICO SE

(consideration of €510 million) and

Nordic Waterproofing Holding AB

(consideration of €162.3million)

There is a risk of improper accounting for

the treatment of acquired businesses,

due to the level of estimation uncertainty

included in management’sassessments.

Specifically, fair value adjustments

to property, plant and equipment

(PP&E) and the need for complex and

judgemental valuation techniques to

beutilised.

Also, the recognition and valuation of

intangible assets recorded in the opening

balance sheets, require significant

estimates and judgements to be made

bymanagement.

Refer to the Audit and Compliance

Committee Report (page 130); the

Statement of Accounting Policies (page

273); and note 23 of the Group Financial

Statements (page 312).

We obtained an understanding of the Group’s

process for accounting for acquisitions, including a

walkthrough of the design and implementation of

relevantcontrols.

We completed detailed procedures on the opening

balance sheets, purchase price allocations and fair

value adjustments, including the identification and

valuation of intangible assets where possible for

all significant acquisitions. Where the accounting

remained provisional for significant acquisitions, we

assessed the reasonableness of the provisional values

attributable to the assets and liabilities on the opening

balancesheets.

We reviewed key agreements including the share

purchase agreements for material acquisitions to

understand the key terms and conditions. We reviewed

the appropriateness of the valuation techniques used

to determine the fair value of PP&E and intangible

assets. This includes assessing whether the methods

are suitable for the specific assets beingvalued.

We identified the key assumptions and judgements

made by management and challenged the

appropriateness thereof by reference to external

information, whereavailable.

In respect of the recognition and valuation of the

fair value adjustments to PP&E and intangibles,

we examined how the Group identified all material

adjustments, obtained related evidence and examined

the key assumptions and calculations used to

ensure they were recorded in accordance with IFRS 3

BusinessCombinations.

We remained alert to the risk of management override

of controls in the fair value measurement process and

the potential for bias in management's estimates

andjudgments.

We performed an evaluation of any experts engaged

by management and sought assistance from our

own specialists and team members with specialised

skills. Whilst our procedures were principally focused

on recognition and valuation, we also assessed the

completeness of recordedintangibles.

We considered compliance with IFRS 3 regarding the

adequacy of the relateddisclosures.

Work performed to address this risk was undertaken by

the Group audit team.

Our observations included

an outline of the audit

procedures performed,

management’s key

judgements and the

results of ourtesting.

Our planned audit

procedures in respect

of accounting for

acquisitions were

completed without

exception.

258

Kingspan Group plc Annual Report & Financial Statements 2024

INDEPENDENT AUDITOR’SREPORT (continued)

to the Members of Kingspan Groupplc

Our application of materiality

We apply the concept of materiality

in planning and performing the audit,

in evaluating the effect of identified

misstatements on the audit and in

forming our audit opinion.

Materiality

The magnitude of an omission or

misstatement that, individually or in

the aggregate, could reasonably be

expected to influence the economic

decisions of the users of the financial

statements. Materiality provides a basis

for determining the nature and extent of

our auditprocedures.

We determined materiality for the

Group to be €41.6 million (2023: €39.7

million), which is approximately 5% of

the Group’s Profit before tax (2023: 5%

of the Group’s Profit before tax). Profit

before tax is a key performance indicator

for the Group and is also a key metric

used by the Group in the assessment of

the performance of management. We

therefore considered the Group’s Profit

before tax to be the most appropriate

performance metric on which to base our

materiality calculation as we consider

it to be the most relevant performance

measure to the stakeholders of

the Group.

We determined materiality for the

Company to be €23.3 million (2023:

€22.8 million), which is approximately 1%

of total equity.

During the course of our audit, we

reassessed initial materiality and

considered that no further changes to

materiality werenecessary.

Performancemateriality

The application of materiality at the

individual account or balance level. It

is set at an amount to reduce to an

appropriately low level the probability

that the aggregate of uncorrected

and undetected misstatements

exceedsmateriality.

On the basis of our risk assessments,

together with our assessment of the

Group’s overall control environment,

our judgement was that performance

materiality should be set at 50% (2023:

50%) of our planning materiality, namely

€20.8 million (2023: €19.9 million). We

have set performance materiality at this

percentage based on our assessment of

the risk of misstatements, both corrected

anduncorrected.

Audit work was undertaken at

component locations for the purpose

of responding to the assessed risks of

material misstatement of the Group

financial statements. The performance

materiality set for each component

is based on the relative scale and risk

of the component to the Group as a

whole and our assessment of the risk of

misstatement at that component.

In the current year, the range of

performance materiality allocated

to components was €4.0 million to

€6.0 million (2023: €3.9 million to

€5.89million).

Reportingthreshold

An amount below which identified

misstatements are considered as being

clearlytrivial.

We agreed with the Audit & Compliance

Committee that we would report

to them all uncorrected audit

differences in excess of €2.1 million

(2023: €1.99 million), which is set at

5% of planning materiality, as well as

differences below that threshold that,

in our view, warranted reporting on

qualitative grounds.

We evaluate any uncorrected

misstatements against both the

quantitative measures of materiality

discussed above and in light of other

relevant qualitative considerations in

forming ouropinion.

An overview of the scope of our

audit report

Tailoring the scope

We are required to establish an overall

audit strategy that sets the scope,

timing, and direction of our audit.

Audit scope comprises the operating

units, activities, and processes to be

audited that, in aggregate, are expected

to provide sufficient coverage of the

financial statements for us to express an

auditopinion.

In the current year our audit scoping

has been updated to reflect the new

requirements of ISA (Ireland) 600

(Revised). We followed a risk-based

approach when developing our audit

approach to obtain sufficient appropriate

audit evidence on which to base our

audit opinion. We performed risk

assessment procedures, with input from

our component auditors, to identify and

assess risks of material misstatement

of the Group financial statements

and identified significant accounts

anddisclosures.

Our assessment of audit risk, our

evaluation of materiality and our

allocation of performance materiality

determined our audit scope for each

operating unit within which, when taken

together, enabled us to form an opinion

on the consolidated financial statements.

Our audit effort was focused towards

higher risk areas, such as management

judgements and on operating units that

we considered significant based upon

size, complexity orrisk.

We assessed our 2024 audit scope

following the completion of our 2023

audit. We identified those operating

units that were significant by virtue

of their contribution to results or

significant by virtue of their associated

risk or complexity. In identifying the

operating units where we would perform

audit procedures, we considered

our understanding of its operating

environment, the potential impact of

climate change, the Group’s system

of internal control at the entity

level, centralised processes and IT

applications. We also considered the

history or expectation of unusual or

complex transactions, potential for

material misstatements, the previous

259

Financial Statements

INDEPENDENT AUDITOR’SREPORT (continued)

to the Members of Kingspan Groupplc

effectiveness of controls, our fraud

assessment and internal audit findings.

We then considered the adequacy of

account coverage and remaining audit

risk of operating units not directly

covered by audit procedures. Finally,

we assessed the appropriateness of

our audit scope by comparing to the

prior year; ensured that there was

sufficient unpredictability in our scope

and made the necessary changes

where appropriate. We applied our risk

analysis which consolidate internal and

external data to inform us on higher

risk components to be included in

scope. This allowed us to risk rate the

group’s operating units. We identified

80 operating units where we believed

that it was appropriate to carry out

targetedtesting.

By following this approach, our audit

effort focused on higher risk areas,

such as management judgements. Our

group wide procedures enabled us to

obtain audit evidence over the operating

units that were full, specific or specified

procedurescope.

We did not make substantial changes to

our 2023 assessment of the components

where we performed audit procedures.

Also, there were no significant changes

to the number of IT applications

wetested.

1 These procedures were performed at operating units and at the group level, to address specified risks of the audit or for audit coveragepurposes.

2 We performed supplementary audit procedures in relation to centralised group accounting and reporting processes. These included, but were not

limited to, purchase price accounting on significant acquisitions, goodwill impairment testing, taxation and transfer pricing, leases, share-based

payments, retirement benefit obligations and goingconcern.

We determined that certain centralised

audit procedures could be performed in

the following audit areas: purchase price

accounting for significant acquisitions,

goodwill impairment testing, taxation

and transfer pricing, leases, share-based

payments, retirement benefit obligations

and goingconcern.

We then identified 14 components

as individually relevant to the Group

due to relevant events and conditions

underlying the identified risks of material

misstatement of the Group financial

statements being associated with the

reporting components or a pervasive

risks of material misstatement of

the Group financial statements or a

significant risk or an area of higher

assessed risk of material misstatement

of the Group financial statements being

associated with the components and

26 of the components of the Group as

individual relevant due to materiality or

financial size of the component relative

to theGroup.

For those individually relevant

components, we identified the

significant accounts where audit work

needed to be performed at these

components by applying professional

judgement, having considered the

Group significant accounts on which

centralised procedures will be performed,

the reasons for identifying the financial

reporting component as an individually

relevant component and the size of the

component’s account balance relative to

the Group significant financial statement

accountbalance.

We then considered whether the

remaining Group significant account

balances not yet subject to audit

procedures, in aggregate, could give rise

to a risk of material misstatement of the

Group financial statements. We selected

40 components of the Group to include

in our audit scope to address theserisks.

Having identified the components

for which work will be performed, we

determined the scope to assign to

eachcomponent.

Of the 80 components selected,

we designed and performed audit

procedures on the entire financial

information of 20 components

(“full scope components”). For 42

components, we designed and performed

audit procedures on specific significant

accounts balances or disclosures of the

financial information of the component

(“specific scope component”). For

the remaining 18 components, we

performed specified audit procedures

to obtain evidence for one or more

relevantassertions.

We kept our audit scope under review throughout the year to reflect changes in the underlying business and risks; however, no

significant changes were required. The table below illustrates the scope of work performed by our audit teams:

Operating Units

procedures

2024 2023 No. of

Countries

Basis of inclusion Extent of

Full Scope 20 23 11 Size & significant risk Complete financial information

Specific Scope 42 37 18 Significant risk or higher risk estimates Individual account balances

Specified Procedures

18 16 7 Other risk factors Individual transactions or processes

Other Procedures 419 392 58 Residual risk of error Supplementary audit procedures

Total 499 468

260

Kingspan Group plc Annual Report & Financial Statements 2024

INDEPENDENT AUDITOR’SREPORT (continued)

to the Members of Kingspan Groupplc

Involvement with component teams

In establishing our overall approach to

the Group audit, we determined the type

of work that needed to be undertaken

at each of the components by us, as

the Group audit engagement team, or

by component auditors operating under

ourinstruction.

The Group audit team continued to

follow a programme of planned visits

that has been designed to ensure that

senior members of the Group audit

team, including the Audit Engagement

Partner, visit a number of overseas

locations. During the current year’s audit

cycle, visits were undertaken by the

primary audit team to the component

teams in the UK, Canada, USA, Brazil,

Poland, Germany and Belgium. These

visits involved discussing the audit

approach and any issues arising with the

component team, holding discussions

with local management, and attending

closing meetings as well as review of

component team files. The Group audit

team interacted regularly with the

component teams where appropriate

during various stages of the audit,

reviewed relevant working papers and

were responsible for the scope and

direction of the audit process. Where

relevant, the section on key audit

matters details the level of involvement

we had with component auditors to

enable us to determine that sufficient

audit evidence has been obtained as a

basis for our opinion on the Group as

awhole.

This, together with the additional

procedures performed at Group

level, gave us appropriate evidence

for our opinion on the Group

financialstatements.

Other conclusions relating to principal

risks, going concern and viability

statement

We have nothing to report in respect of

the following information in the annual

report, in relation to which the ISAs

(Ireland) require us to report to you

whether we have anything material to

add or draw attentionto:

• the disclosures in the annual report set

out on pages 56 to 65 that describe

the principal risks and explain how

they are being managed ormitigated;

• the Directors’ confirmation set out on

pages 150 to 151 in the annual report

that they have carried out a robust

assessment of the principal risks

facing the Group and the Company,

including those that would threaten its

business model, future performance,

solvency orliquidity;

• the Directors’ statement set out on

page 150 in the financial statements

about whether the Directors

considered it appropriate to adopt the

going concern basis of accounting in

preparing the financial statements

and the directors’ identification of

any material uncertainties to the

Group’s and the Company’s ability to

continue to do so over a period of at

least twelve months from the date of

approval of the financialstatements;

• whether the Directors’ statement

relating to going concern required

under the Listing Rules of Euronext

Dublin is materially inconsistent with

our knowledge obtained in the audit;

• the Directors’ explanation set out

on page 150 to 151 in the annual

report as to how they have assessed

the prospects of the Group and the

Company, over what period they

have done so and why they consider

that period to be appropriate, and

their statement as to whether they

have a reasonable expectation that

the Group and the Company will be

able to continue in operation and

meet its liabilities as they fall due

over the period of their assessment,

including any related disclosures

drawing attention to any necessary

qualifications orassumptions.

Corporate Governance Statement

We report, in relation to information

given in the Corporate Governance

Statement on pages 90 to 99that:

• in our opinion, based on the work

undertaken during the course of the

audit, the information given in the

Corporate Governance Statement

pursuant to subsections 2(c) and (d)

of section 1373 of the Companies Act

2014 is consistent with the Company’s

statutory financial statements

in respect of the financial year

concerned and such information has

been prepared in accordance with

the Companies Act 2014. Based on

our knowledge and understanding of

the Company and its environment

obtained in the course of the audit,

we have not identified any material

misstatements in thisinformation;

• in our opinion, based on the work

undertaken during the course of the

audit, the Corporate Governance

Statement contains the information

required by Regulation 6(2) of the

European Union (Disclosure of Non-

Financial and Diversity Information

by certain large undertakings and

Groups) Regulations 2017; and

• in our opinion, based on the work

undertaken during the course of

the audit, the information required

pursuant to section 1373(2)(a),(b),(e)

and (f) of the Companies Act

2014 is contained in the Corporate

GovernanceStatement.

Other information

The Directors are responsible for the

other information. The other information

comprises the information included in the

annual report other than the financial

statements and our auditor’s report

thereon. Our opinion on the financial

statements does not cover the other

information and, except to the extent

otherwise explicitly stated in our report,

we do not express any form of assurance

conclusionthereon.

Our responsibility is to read the other

information and, in doing so, consider

whether the other information is

materially inconsistent with the financial

statements or our knowledge obtained

in the audit or otherwise appears to be

materially misstated. If we identify such

material inconsistencies or apparent

material misstatements, we are required

to determine whether there is a material

misstatement in the financial statements

or a material misstatement of the other

information. If, based on the work we

have performed, we conclude that there

is a material misstatement of this other

information, we are required to report

thatfact.

We have nothing to report in thisregard.

261

Financial Statements

INDEPENDENT AUDITOR’SREPORT (continued)

to the Members of Kingspan Groupplc

In this context, we also have nothing to

report in regard to our responsibility to

specifically address the following items

in the other information and to report

as uncorrected material misstatements

of the other information where we

conclude that those items meet the

followingconditions:

• Fair, balanced and understandable –

(set out on page 151)- the statement

given by the Directors that they

consider the annual report and

financial statements taken as a whole

is fair, balanced and understandable

and provides the information

necessary for shareholders to assess

the Group’s and the Company’s

performance, business model and

strategy, is materially inconsistent

with our knowledge obtained in the

audit; or

• Audit & Compliance Committee

reporting – (set out on page 130 to

141)- the section describing the work

of the Audit & Compliance Committee

does not appropriately address

matters communicated by us to

the Audit & Compliance Committee

is materially inconsistent with our

knowledge obtained in the audit; or

• Directors’ statement of compliance

with the UK Corporate Governance

Code (set out on page 90 to 99)– the

parts of the Directors’ statement

required under the Listing Rules

relating to the Company’s compliance

with the UK Corporate Governance

Code containing provisions

specified for review by the auditor

in accordance with the Listing Rules

of Euronext Dublin do not properly

disclose a departure from a relevant

provision of the UK Corporate

GovernanceCode.

Opinions on other matters

prescribed by the Companies

Act 2014

In our opinion, based solely on the work

undertaken in the course of the audit, we

reportthat:

• the information given in the Directors’

Report, other than those parts dealing

with the non-financial statement

pursuant to the requirements of S.I.

No. 360/2017, is consistent with the

financial statements; and

• the Directors’ Report, other than

those parts relating to sustainability

reporting required by Part 28 of

the Companies Act 2014 and

those parts dealing with the non-

financial statement pursuant to the

requirements of S.I. No. 360/2017 has

been prepared in accordance with the

Companies Act2014.

We have obtained all the information

and explanations which, to the best of

our knowledge and belief, are necessary

for the purposes of ouraudit.

In our opinion the accounting records of

the Company were sufficient to permit

the financial statements to be readily

and properly audited and the Company

statement of financial position is in

agreement with the accountingrecords.

Matters on which we are required

to report by exception

Based on the knowledge and

understanding of the Group and its

environment obtained in the course of

the audit, we have not identified material

misstatements in the Directors’ report.

The Companies Act 2014 requires us

to report to you if, in our opinion, the

disclosures required by sections 305 to

312 of the Act, which relate to disclosures

of Directors’ remuneration and

transactions, are not complied with by

the Company. We have nothing to report

in thisregard.

We have nothing to report in respect

of section 13 of the European Union

(Disclosure of Non-Financial and

Diversity Information by certain large

undertakings and Groups) Regulations

2017, which require us to report to you

if, in our opinion, the Company has not

provided in the non-financial statement

the information required by Section 5(2)

to (7) of those Regulations, in respect of

year ended 31 December2023.

The Companies Act 2014 also requires

us to report to you if, in our opinion,

the Company has not provided the

information required by Section 1110N in

relation to its remuneration report for

the financial 31 December 2023. We have

nothing to report in thisregard.

The Listing Rules of the Irish Stock

Exchange require us toreview:

• the Directors’ statement, set out on

pages 142 to 153, in relation to going

concern and longer-termviability;

• the part of the Corporate Governance

Statement on page 90 to 99 relating

to the Company’s compliance with

the provisions of the UK Corporate

Governance Code specified for our

review; and

• certain elements of disclosures in the

report to shareholders by the Board on

Directors’ remuneration.

Respective responsibilities

Responsibilities of Directors for

the financial statements

As explained more fully in the Directors’

responsibilities statement set out on

pages 142 to 153, the Directors are

responsible for the preparation of the

financial statements in accordance

with the applicable financial reporting

framework that give a true and fair view,

and for such internal control as they

determine is necessary to enable the

preparation of financial statements that

are free from material misstatement,

whether due to fraud orerror.

In preparing the financial statements,

the Directors are responsible for assessing

the Group and the Company’s ability to

continue as going concerns, disclosing,

as applicable, matters related to going

concern and using the going concern

basis of accounting unless management

either intends to liquidate the Group or

the Company or to cease operations, or

has no realistic alternative but to doso.

262

Kingspan Group plc Annual Report & Financial Statements 2024

INDEPENDENT AUDITOR’SREPORT (continued)

to the Members of Kingspan Groupplc

Auditor’s responsibilities for the audit

of the financial statements

Our objectives are to obtain reasonable

assurance about whether the financial

statements as a whole are free from

material misstatement, whether due to

fraud or error, and to issue an auditor’s

report that includes our opinion.

Reasonable assurance is a high level

of assurance but is not a guarantee

that an audit conducted in accordance

with ISAs (Ireland) will always detect a

material misstatement when it exists.

Misstatements can arise from fraud

or error and are considered material

if, individually or in the aggregate,

they could reasonably be expected

to influence the economic decisions

of users taken on the basis of these

financialstatements.

Explanation to what extent the audit

was considered capable of detecting

irregularities, including fraud

Irregularities, including fraud, are

instances of non-compliance with laws

and regulations. We design procedures

in line with our responsibilities, outlined

above, to detect irregularities, including

fraud, that could reasonably be expected

to have a material effect on the financial

statements. The risk of not detecting a

material misstatement due to fraud is

higher than the risk of not detecting one

resulting from error, as fraud may involve

deliberate concealment by, for example,

forgery or intentional misrepresentations,

or through collusion. In addition, the

further removed any non-compliance

is from the events and transactions

reflected in the financial statements, the

less likely it is that our procedures will

identify such non-compliance. The extent

to which our procedures are capable

of detecting irregularities, including

fraud is detailed below. However, the

primary responsibility for the prevention

and detection of fraud rests with both

those charged with governance of the

Company andmanagement.

Our approach was asfollows:

• We obtained an understanding of

the legal and regulatory frameworks

that are applicable to the Group

and determined that the most

significant are those that relate to

the form and content of external

financial and corporate governance

reporting including company law,

tax legislation, employment law and

regulatorycompliance;

• We understood how the Group

companies are complying with those

frameworks by making enquiries of

management, internal audit, those

responsible for legal and compliance

procedures and the Company

Secretary. We corroborated our

enquiries through our review of the

Group’s Compliance Policies, board

minutes, papers provided to the

Audit & Compliance Committee

and correspondence received with

regulatory bodies;

• We assessed the susceptibility of

the Group’s financial statements to

material misstatement, including

how fraud might occur by meeting

with management, including within

various parts of the business, to

understand where they considered

there was susceptibility to fraud. We

also considered performance targets

and the potential for management to

influence earnings or the perceptions

of analysts. Where this risk was

considered to be higher, we performed

audit procedures to address each

identified fraud risk. These procedures

included testing manual journals and

were designed to provide reasonable

assurance that the financial

statements were free from fraud

orerror; and

• Based on this understanding we

designed our audit procedures to

identify non-compliance with such

laws and regulations. Our procedures

included a review of board minutes

to identify any non-compliance with

laws and regulations, a review of the

reporting to the Audit & Compliance

Committee on compliance with

regulations; and enquiries of

internal and external legal counsel

andmanagement. We have involved

our own internal legal specialists in the

execution of certain procedures.

A further description of our

responsibilities for the audit of the

financial statements is located on the

IAASA’s website at: https://iaasa.ie/

wp-content/uploads/docs/media/

IAASA/Documents/audit-standards/

Description_of_auditors_responsibilities_

for_audit.pdf. This description forms part

of our auditor’sreport.

Other matters which we are

required to address

We were appointed by the Board of

Directors following the AGM held on

1 May 2020 to audit the financial

statements for the year ended 31

December 2020 and subsequent financial

periods. The period of total uninterrupted

engagement including previous renewals

and reappointments of the firm is

5years.

The non-audit services prohibited by

IAASA’s Ethical Standard were not

provided to the Group and we remain

independent of the Group in conducting

ouraudit.

Our audit opinion is consistent with

the additional report to the Audit &

ComplianceCommittee.

The purpose of our audit work

and to whom we owe our

responsibilities

Our report is made solely to the

Company’s members, as a body, in

accordance with section 391 of the

Companies Act 2014. Our audit work

has been undertaken so that we might

state to the Company’s members

those matters we are required to state

to them in an auditor’s report and for

no other purpose. To the fullest extent

permitted by law, we do not accept or

assume responsibility to anyone other

than the Company and the Company’s

members, as a body, for our audit work,

for this report, or for the opinions we

haveformed.

Dermot Daly

for and on behalf of

Ernst & Young Chartered Accountants

and Statutory AuditFirmDublin

26 February 2025

263

Financial Statements

CONSOLIDATED INCOME STATEMENT

For The Year Ended 31 December 2024

		Note 2024	2023
		€m	€m
REVENUE	2	8,608.0	8,09 0.6
Cost of sales		(6,061.6)	(5,7 50.9)
GROSS PROFIT		2,546.4	2,339 .7
Operating costs, excluding intangible amortisation		(1,639 .7)	(1,462.8)
TRADING PROFIT	2	906.7	87 6.9
Intangible amortisation	10	(4 4.6)	(41.7)
OPERATING PROFIT		862.1	835.2
Finance expense	4	(67 .4)	(63 .7)
Finance income	4	35.4	22.7
Share of associates’ profit after tax	13	1.7	-
PROFIT FOR THE YEAR BEFORE INCOME TAX	5	83 1.8	794.2
Income tax expense	7	(141.0)	(140.3)
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS		690.8	653 .9
Attributable to owners of Kingspan Group plc		665.5	640.3
Attributable to non-controlling interests	29	25.3	13.6
		690.8	653.9
EARNINGS PER SHARE FOR THE YEAR
Basic	8	365.2c	352.3c
Diluted	8	362.3c	349 .6c

Gene Murtagh Geoff Doherty 25 February2025

Chief Executive Officer Chief FinancialOfficer

264

Kingspan Group plc Annual Report & Financial Statements 2024

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For The Year Ended 31 December 2024

		Note 2024	2023
		€m	€m
Profit for the year		690.8	653.9
Other comprehensive income/(loss):
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations		93.0	(19 .0)
Effective portion of changes in fair value of cash flow hedges		0.3	(0.6)
Items that will not be reclassified subsequently to profit or loss
Actuarial gains/(losses) on defined benefit pension schemes	32	3.4	(5.0)
Income taxes relating to actuarial (gains)/ losses on defined benefit pension schemes	22	(0.5)	0. 4
Equity investments at FVOCI – net change in fair value	12	(2.7)	12.5
Total other comprehensive income/(loss)		93.5	(1 1.7)
Total comprehensive income for the year		784 .3	642.2
Attributable to owners of Kingspan Group plc		76 9. 8	626.4
Attributable to non-controlling interests	29	14.5	15.8
		784 .3	642.2

265

Financial Statements

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As At 31 December 2024

		Note 2024	2023
		€m	€m
ASSETS
NON-CURRENT ASSETS
Goodwill	9	3,36 5.7	2,660.6
Other intangible assets	10	239 .2	188.4
Investment in associates	13	14.5	-
Financial assets	12	23.9	128. 4
Property, plant and equipment	11	2,254.2	1,567 .2
Right of use assets	17	235.8	219 .2
Retirement benefit assets	32	4.3	1.0
Deferred tax assets	22	84.5	7 9. 6
CURRENT ASSETS		6,222.1	4,844.4
Inventories	14	1,197 .1	964.3
Trade and other receivables	15	1,390.2	1,254.2
Derivative financial instruments	20	4. 7	-
Cash and cash equivalents	18	1,005.4	938.7
		3,597 .4	3,157 .2
TOTAL ASSETS		9 ,819 .5	8,001.6
LIABILITIES
CURRENT LIABILITIES
Trade and other payables	16	1,560.2	1,346.1
Provisions for liabilities	21	55.9	70. 2
Lease liabilities	17	63.9	48.0
Derivative financial instruments	20	-	0.2
Deferred contingent consideration	19	345.5	190 .2
Interest bearing loans and borrowings	18	197 .7	200.6
Current income tax liabilities		2 9. 3	5 7. 6
NON-CURRENT LIABILITIES		2,252.5	1,912.9
Retirement benefit obligations	32	41.8	38.0
Provisions for liabilities	21	108.4	1 13.7
Interest bearing loans and borrowings	18	2,385.3	1,717 .6
Lease liabilities	17	174 .7	171.8
Deferred tax liabilities	22	113.9	60.9
Deferred contingent consideration	19	152.1	38.9
		2,97 6.2	2,140.9
TOTAL LIABILITIES		5,228.7	4,053.8
NET ASSETS		4,5 90.8	3,9 47 .8
EQUITY
Share capital	24	24. 0	23.9
Share premium	25	215.9	129 .3
Capital redemption reserve		0.7	0. 7
Treasury shares	26	(186.8)	(55.8)
Other reserves		(401.1)	(336.7)
Retained earnings		4,6 39 .8	4,086.6
EQUITY ATTRIBUTABLE TO OWNERS OF KINGSPAN GROUP PLC		4,29 2.5	3,848 .0
NON-CONTROLLING INTEREST	29	298.3	99.8
TOTAL EQUITY		4 ,590.8	3,9 47 .8

Gene Murtagh Geoff Doherty 25 February2025

Chief Executive Officer Chief FinancialOfficer

266

Kingspan Group plc Annual Report & Financial Statements 2024

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For The Year Ended 31 December 2024

	€m	€m	€m	€m	€m	€m	€m	€m	€m	€m	€m	€m	€m	€m
Balance at 1 January 2024	23.9	129 .3	0.7	(55.8)	(158.4)	-	61.3	0. 7	(240.3)	-	4,086.6	3 ,848.0	99 .8	3,94 7 .8
Transactions with owners
recognised directly in equity
Employee share-based
compensation	-	-	-	-	-	-	19 .9	-	-	-	-	19 .9	-	19 .9
Tax on employee share-based
compensation	-	-	-	-	-	-	(2.2)	-	-	-	2.4	0. 2	-	0.2
Exercise or lapsing of share
options	-	23 .9	-	3. 6	-	-	(14.7)	-	-	-	(12.8)	-	-	-
Repurchase of shares	-	-	-	(134.6)	-	-	-	-	-	-	(0 .3)	(134.9)	-	(134.9)
Dividends	-	-	-	-	-	-	-	-	-	-	(96.6)	(96.6)	-	(96.6)
Share consideration for acquisition	0.1	62.7	-	-	-	-	-	-	-	12.3	-	75.1	-	75.1
Transactions with non-controlling interests:
Arising on acquisition	-	-	-	-	-	-	-	-	(148.8)	-	-	(148.8)	264.8	116.0
Purchase of NCI	-	-	-	-	-	-	-	-	-	-	(5.2)	(5.2)	(88.2)	(93.4)
Increase in NCI	-	-	-	-	-	-	-	-	-	-	-	-	8.4	8.4
Dividends to NCI	-	-	-	-	-	-	-	-	-	-	-	-	(1.0)	(1.0)
Fair value movement	-	-	-	-	-	-	-	-	(35.0)	-	-	(35 .0)	-	(35.0)
Transactions with owners	0.1	86.6	-	(131.0)	-	-	3. 0	-	(183.8)	12.3	(112.5)	(325.3)	184.0	(141.3)
Total comprehensive income
for the year
Profit for the year	-	-	-	-	-	-	-	-	-	-	665.5	665.5	25 .3	690.8
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss
Cash flow hedging in equity
- current year	-	-	-	-	-	0.3	-	-	-	-	-	0.3	-	0.3
- tax impact	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Exchange differences on translating foreign operations	-	-	-	-	103 .8	-	-	-	-	-	-	10 3.8	(10.8)	93.0
Items that will not be reclassified subsequently to profit or loss
Actuarial gains on defined benefit
pension scheme	-	-	-	-	-	-	-	-	-	-	3. 4	3.4	-	3.4
Income taxes relating to actuarial
gains on defined benefit pension
scheme	-	-	-	-	-	-	-	-	-	-	(0.5)	(0.5)	-	(0.5)
Equity investments at FVOCI – net
change in fair value	-	-	-	-	-	-	-	-	-	-	(2.7)	(2.7)	-	(2.7)
Total comprehensive income
for the year	-	-	-	-	103 .8	0.3	-	-	-	-	665.7	769. 8	14.5	784 .3
Balance at 31 December 2024	24.0	215.9	0.7	(186.8)	(54.6)	0.3	64.3	0. 7	(424.1)	12.3	4,6 39 .8	4,292.5	298.3	4,5 90.8

Total Equity

Non-Controlling Interest

Total Attributable to

Owners of the Parent

Retained Earnings

Other Reserve

Put Option Liability Reserve

Revaluation Reserve

Share-based Payment Reserve

Cash Flow Hedging Reserve

Translation Reserve

Treasury Shares

Capital Redemption Reserve

Share Premium

Share Capital

267

Financial Statements

267

Financial Statements

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For The Year Ended 31 December 2023

	€m	€m	€m	€m	€m	€m	€m	€m	€m	€m	€m	€m	€m
Balance at 1 January 2023	23.9	112.4	0.7	(56.9)	(13 7 .2)	0.6	55.1	0.7	(20 7 .2)	3 ,527 .6	3,319 .7	75.8	3,395.5
Transactions with owners
recognised directly in equity
Employee share-based
compensation	-	-	-	-	-	-	22.7	-	-	-	22.7	-	22.7
Tax on employee share-based
compensation	-	-	-	-	-	-	3.2	-	-	1.4	4.6	-	4. 6
Exercise or lapsing of share options	-	16.9	-	1.8	-	-	(19 .7)	-	-	1.0	-	-	-
Repurchase of shares	-	-	-	(0.7)	-	-	-	-	-	-	(0.7)	-	(0.7)
Dividends	-	-	-	-	-	-	-	-	-	(91.2)	(91.2)	-	(91.2)
Transactions with non-controlling interests:
Arising on acquisition	-	-	-	-	-	-	-	-	(22.9)	-	(22.9)	7. 7	(15.2)
Increase in NCI	-	-	-	-	-	-	-	-	-	(0.4)	(0.4)	1.4	1.0
Dividends to NCI	-	-	-	-	-	-	-	-	-	-	-	(0 .9)	(0.9)
Fair value movement	-	-	-	-	-	-	-	-	(10.2)	-	(10.2)	-	(10.2)
Transactions with owners	-	16.9	-	1.1	-	-	6.2	-	(33 .1)	(89 .2)	(98.1)	8.2	(89 .9)
Total comprehensive income for the year
Profit for the year	-	-	-	-	-	-	-	-	-	640.3	640.3	13 .6	653.9
Other comprehensive loss:
Items that may be reclassified
subsequently to profit or loss
Cash flow hedging in equity
- current year	-	-	-	-	-	(0.6)	-	-	-	-	(0.6)	-	(0.6)
- tax impact	-	-	-	-	-	-	-	-	-	-	-	-	-
Exchange differences on translating foreign operations	-	-	-	-	(21.2)	-	-	-	-	-	(21.2)	2.2	(19.0)
Items that will not be reclassified subsequently to profit or loss
Actuarial losses on defined benefit
pension scheme	-	-	-	-	-	-	-	-	-	(5.0)	(5.0)	-	(5.0)
Income taxes relating to actuarial
losses on defined benefit pension
scheme	-	-	-	-	-	-	-	-	-	0. 4	0. 4	-	0.4
Equity investments at FVOCI – net
change in fair value	-	-	-	-	-	-	-	-	-	12.5	12.5	-	12.5
Total comprehensive income for the year	-	-	-	-	(21.2)	(0.6)	-	-	-	648.2	626.4	15.8	642.2
Balance at 31 December 2023	23.9	129 .3	0.7	(55.8)	(158.4)	-	61.3	0.7	(240.3)	4,086.6	3,848.0	99.8	3,94 7 .8

Total Equity

Non-Controlling Interest

Total Attributable to

Owners of the Parent

Retained Earnings

Put Option Liability Reserve

Revaluation Reserve

Share-based Payment Reserve

Cash Flow Hedging Reserve

Translation Reserve

Treasury Shares

Capital Redemption Reserve

Share Premium

Share Capital

268

Kingspan Group plc Annual Report & Financial Statements 2024

CONSOLIDATED STATEMENT OF CASH FLOWS

For The Year Ended 31 December 2024

		Note 2024	2023
		€m	€m
OPERATING ACTIVITIES
Profit for the year		690.8	653.9
Add back non-cash and/or non-operating expenses:
Income tax expense	7	141.0	140.3
Depreciation	5	231.9	190.9
Amortisation of intangible assets	10	4 4. 6	41.7
Impairment of property, plant and equipment	11	3.9	2.9
Employee equity settled share options	3	19 .9	22.7
Finance income	4	(35.4)	(22.7)
Finance expense	4	6 7. 4	63. 7
Profit on sale of property, plant and equipment	5	(7 .9)	(1.3)
Movement of deferred contingent consideration		-	0.3
Changes in working capital:
Inventories		(67 .4)	299 .2
Trade and other receivables		56.0	7 4.0
Trade and other payables		21.4	(75.1)
Other:
Change in provisions		(26.3)	(2.6)
Defined benefit pension scheme buy in settlement		-	(15.9)
Pension contributions	32	(2.6)	(3.4)
Cash generated from operations		1,137 .3	1,368.6
Income tax paid		(184 .3)	(147 .5)
Interest paid		(58.5)	(58.9)
Net cash flow from operating activities		894. 5	1,162.2
INVESTING ACTIVITIES
Additions to property, plant and equipment		(366.3)	(234.2)
Additions to intangible assets		(0.4)	(3.5)
Additions to investment in associates		(1.0)	-
Proceeds from disposals of property, plant and equipment		32.9	4.2
Purchase of subsidiary undertakings (including net debt/cash acquired)	23	(775.3)	(219.6)
Transactions involving non-controlling interests		-	1.0
Purchase of financial asset		(17 .5)	(22.2)
Dividends from investment in associates	13	0.3	-
Payment of deferred contingent consideration	19	(1.1)	(6.6)
Finance income received		17 .4	22.6
Net cash flow from investing activities		(1,111.0)	(458.3)
FINANCING ACTIVITIES
Drawdown of loans	30	899 .7	319 .0
Repayment of loans and borrowings	30	(246.2)	(582.0)
Acquisition of minority interest		(9 3.4)	-
Acquired derivative financial instruments not settled in period		(4.6)	-
Payment of lease liability	17	(68.7)	(60.5)
Repurchase of shares	26	(134.6)	(0.7)
Dividends paid to non-controlling interest	29	(1.0)	(0.9)
Dividends paid	28	(96.6)	(91.2)
Net cash flow from financing activities		254.6	(416.3)
INCREASE IN CASH AND CASH EQUIVALENTS	30	38.1	2 8 7. 6
Effect of movement in exchange rates on cash held		28.6	1.8
Cash and cash equivalents at the beginning of the year		938.7	649 .3
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR		1,005.4	938.7

269

Financial Statements

COMPANY STATEMENT OF FINANCIAL POSITION

As At 31 December 2024

Note 2024

€m

2023

€m

ASSETS

NON-CURRENT ASSETS

Investments in subsidiaries 12 2,328.0 2,118.4

CURRENT ASSETS

Amounts owed by group undertakings 15 18.3 165.9

Cash and cash equivalents 0.4 0.4

TOTAL ASSETS 2,346.7 2,284.7

LIABILITIES

CURRENT LIABILITIES

Amounts owed to group undertakings 16 0.1 0.1

Payables 16 0.5 0.2

TOTAL LIABILITIES 0.6 0.3

NET ASSETS 2,346.1 2,284.4

EQUITY

Equity attributable to owners of Kingspan Group plc

Share capital 24 24.0 23.9

Share premium 25 215.9 129.3

Capital redemption reserve 0.7 0.7

Treasury shares 26 (186.8) (55.8)

Retained earnings 27 2,292.3 2,186.3

TOTAL EQUITY 2,346.1 2,284.4

In accordance with section 304 of the Companies Act 2014, the Company’s profit for the financial year was €194.6m (2023: profit

of €1,000.1m).

Gene Murtagh Geoff Doherty 25 February2025

Chief Executive Officer Chief FinancialOfficer

270

Kingspan Group plc Annual Report & Financial Statements 2024

COMPANY STATEMENT OF CHANGES IN EQUITY

For The Year Ended 31 December 2024

Capital

Premium

Capital

Redemption

Reserve

Treasury

Retained

Earnings

Total Equity

€m €m €m €m €m €m

Balance at 1 January 2024 23.9 129.3 0.7 (55.8) 2,186.3 2,284.4

Shares issued 0.1 86.6 - 3.6 (11.9) 78.4

Repurchase of shares - - - (134.6) - (134.6)

Employee share-based compensation - - - - 19.9 19.9

Dividends - - - - (96.6) (96.6)

Transactions with owners 0.1 86.6 - (131.0) (88.6) (132.9)

Profit for the year - - - - 194.6 194.6

Balance at 31 December 2024 24.0 215.9 0.7 (186.8) 2,292.3 2,346.1

Capital

Premium

Capital

Redemption

Reserve

Treasury

Retained

Earnings

Total Equity

€m €m €m €m €m €m

Balance at 1 January 2023 23.9 112.4 0.7 (56.9) 1,263.2 1,343.3

Shares issued - 16.9 - 1.8 (8.5) 10.2

Repurchase of shares - - - (0.7) - (0.7)

Employee share-based compensation - - - - 22.7 22.7

Dividends - - - - (91.2) (91.2)

Transactions with owners - 16.9 - 1.1 (77.0) (59.0)

Profit for the year - - - - 1,000.1 1,000.1

Balance at 31 December 2023 23.9 129.3 0.7 (55.8) 2,186.3 2,284.4

271

Financial Statements

COMPANY STATEMENT OF CASH FLOWS

For The Year Ended 31 December 2024

2024

€m

2023

€m

OPERATING ACTIVITIES

Profit for the year after tax 194.6 1,000.1

Net cash flow from operating activities 194.6 1,000.1

FINANCING ACTIVITIES

Change in receivables 147.6 134.2

Change in payables 0.3 (195.4)

Repurchase of shares (134.6) (0.7)

Proceeds from shares issued 62.8 -

Proceeds from equity settled share scheme 27.3 18.7

Dividends paid (96.6) (91.2)

Net cash flow from financing activities 6.8 (134.4)

INVESTING ACTIVITIES

Investment in subsidiaries (201.4) (865.7)

Net cash flow from investing activities (201.4) (865.7)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 0.4 0.4

Net increase in cash and cash equivalents - -

CASH AND CASH EQUIVALENTS AT END OF YEAR 0.4 0.4

272

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

1 Statement of Accounting Policies

General information

Kingspan Group plc is a public limited

company registered and domiciled in

Ireland. Its registered number is 70576

and the address of its registered office is

Dublin Road, Kingscourt, Co Cavan.

The principal activities of Kingspan

Group plc (“the Group”) comprise the

manufacture of insulated panels, rigid

insulation boards, stonewool, bio-based

and technical insulation, architectural

facades, roofing and waterproofing

solutions, data solutions, daylighting

and ventilation systems and water and

energy solutions. The Group’s Principal

Subsidiary Undertakings are set out on

page 328 to 329.

Statement of compliance

The consolidated and Company financial

statements have been prepared in

accordance with International Financial

Reporting Standards (IFRSs) and

their interpretations issued by the

International Accounting Standards

Board (IASB) as adopted by the EU and

those parts of the Companies Acts 2014,

applicable to companies reporting under

IFRS and Article 4 of the IAS Regulation.

The Company has availed of the

exemption in Section 304 of the

Companies Act 2014 and has not

presented the Company Income

Statement, which forms part of the

Company’s financial statements,

to its members and the Registrar

of Companies.

Basis of preparation

The financial statements have been

prepared on a going concern basis,

under the historical cost convention, as

modified by:

• measurement at fair value of share-

based payments at initial date

of award;

• certain financial assets (including

derivative financial instruments) and

deferred contingent consideration

recognised and measured at fair

value; and

• recognition of the defined benefit

liability as plan assets less the present

value of the defined benefit obligation.

The accounting policies set out below

have been applied consistently to all

years presented in these financial

statements, unless otherwise stated.

These consolidated financial statements

have been prepared in Euro (millions),

rounded to one decimal point. The Euro

is the presentation currency of the Group

and the functional and presentation

currency of the Company.

The Group uses a number of Alternative

Performance Measures (APMs)

throughout these financial statements

to give assistance to investors in

evaluating the performance of the

underlying business and to give a better

understanding of how management

review and monitor the business on an

ongoing basis. These APMs have been

defined and explained in more detail on

page 325 to 327.

Changes in Accounting Policies and Disclosures

New and amended standards and interpretations effective during 2024

The following amendments to standards and interpretations are effective for the Group from 1 January 2024 and do not have a

material effect on the results or financial position of the Group:

	Effective Date – periods
	beginning on or after
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures:	1 January 2024
Supplier Finance Arrangements
Amendments to IAS 1 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current, Classification of Liabilities as Current or Non-current – Deferral of Effective Date and Non-current Liabilities with Covenants	1 January 2024
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback	1 January 2024

273

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

1 Statement of Accounting Policies (continued)

There are a number of new standards, amendments to standards and interpretations that are not yet effective and have not been

applied in preparing these consolidated financial statements. These new standards, amendments to standards and interpretations

are either not expected to have a material impact on the Group’s financial statements or are still under assessment by the Group.

The principal new standards, amendments to standards and interpretations are as follows:

	Effective Date – periods
	beginning on or after
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability	1 January 2025
Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)	1 January 2026*
Contracts Referencing Nature-dependent Electricity - Amendments to IFRS 9 and IFRS 7	1 January 2026*
Annual Improvements Volume 11	1 January 2026*
IFRS 18 Presentation and Disclosure in Financial Statements	1 January 2027*
IFRS 19 Subsidiaries without Public Accountability: Disclosures	1 January 2027*

*Not EU endorsed

Basis of consolidation

The Group consolidated financial

statements incorporate the financial

statements of the Company and its

subsidiary undertakings.

Subsidiaries

Subsidiaries are entities controlled by

the Group. The Group controls an entity

when it is exposed to, or has the rights

to, variable returns from its involvement

with the entity and has the ability to

affect those returns through its power

over the entity.

Subsidiaries are included in the Group

financial statements from the date on

which control over the entity is obtained

and cease to be consolidated from the

date on which control is transferred out

of the Group.

Transactions eliminated

on consolidation

Intragroup transactions and balances,

and any unrealised gains arising from

such transactions, are eliminated in

preparing the consolidated financial

statements. Unrealised losses are

eliminated in the same manner as

unrealised gains, but only to the extent

that there is no evidence of impairment.

Segment reporting

The Group’s accounting policy for

identifying segments is based on internal

management reporting information

that is routinely reviewed by the Chief

Executive Officer and Chief Financial

Officer, who perform the function of

Chief Operating Decision Maker (CODM)

for the Group.

The measurement policies used for

the segment reporting under IFRS 8

Operating Segments are the same as

those used in the consolidated financial

statements. Segment results that are

reported to the CODM include items

directly attributable to a segment as

well as those that can be allocated on

a reasonable basis. Unallocated items

comprise mainly corporate assets,

finance income and expenses and tax

assets and liabilities.

The Group has determined that it has

five (2023: five) operating segments:

Insulated Panels, Insulation, Light, Air

+ Water, Data Solutions, and Roofing +

Waterproofing.

Revenue recognition

The Group recognises revenue exclusive

of sales tax and trade discounts which

would occur over time or at a point in

time. The Group uses the five-step model

as prescribed under IFRS 15 Revenue from

Contracts with Customers on the Group’s

revenue transactions. This includes

the identification of the contract,

identification of the performance

obligations under same, determination

of the transaction price, allocation of

the transaction price to performance

obligations and recognition of revenue.

Typically, individual performance

obligations are specifically called out in

the contract which allows for accurate

recognition of revenue as and when

performances are fulfilled.

The Group has generally concluded

that it is the principal in its revenue

arrangements, because it typically

controls the goods or services before

transferring them to the customers.

The Group has identified a number

of revenue streams where revenue is

recognised at a point in time and/or over

time. These are detailed overleaf:

274

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

1 Statement of Accounting Policies (continued)

Supply only contracts

The point of recognition arises when the

Group satisfies a performance obligation

by transferring control of a promised

good or service to the customer, which

could occur over time or at a point in

time. Revenue is recognised at the time

of delivery at the delivery address (where

Kingspan is to deliver the goods to the

delivery address) or at Kingspan’s works

(where the customer is to collect the

goods) or, if the customer wrongfully fails

to take delivery of the goods, the time

when Kingspan has tendered delivery

of the goods. Invoicing occurs at the

point of final delivery of the product or

performance obligation, at which point

a right is established for unconditional

consideration as control passes to the

customer. Typically, payment terms are

30 days from the end of the month in

which the invoice is raised.

Supply and install projects

If a contract requires the Group to install

or commission a product and the product

can be separated or sold separately from

the installation service and the contract

specifically separates the performance

obligations then the product only supply

element is recognised in line with the

criteria set out in the supply only policy.

The installation element is recognised

over time in line with the milestones set

out in the contract. If there is significant

integration provided for in the contract

then a single purchase order is identified

and the revenue is recognised over time.

Service and maintenance

Where the Group provides a post-sale

service and maintenance offering the

revenue associated with this separately

identifiable performance obligation is

initially recognised in deferred income.

The revenue is recognised in the

Consolidated Income Statement as each

site visit occurs.

Research and Development

Expenditure on research and

development is recognised as an expense

in the period in which it is incurred. An

asset is recognised only when all the

conditions set out in IAS 38 Intangible

Assets are met.

Business Combinations

Business combinations are accounted for

using the acquisition method as at the

date of acquisition.

In accordance with IFRS 3 Business

Combinations, the fair value of

consideration paid for a business

combination is measured as the

aggregate of the fair values at the date

of exchange of assets given and liabilities

incurred or assumed in exchange for

control. The assets, liabilities and

contingent liabilities of the acquired

entity are measured at fair value as at

the acquisition date. When the initial

accounting for a business combination is

determined, it is done so on a provisional

basis with any adjustments to these

provisional values made within 12 months

of the acquisition date and are effective

as at the acquisition date.

To the extent that deferred contingent

consideration is payable as part of the

acquisition cost and is payable after

one year from the acquisition date, the

deferred contingent consideration is

discounted at an appropriate interest

rate and, accordingly, carried at net

present value (amortised cost) in the

Consolidated Statement of Financial

Position. The discount component is then

unwound as an interest charge in the

Consolidated Income Statement over the

life of the obligation.

Where a business combination

agreement provides for an adjustment

to the cost of a business acquired

contingent on future events, other than

put options held by non-controlling

interests, the Group accrues the fair

value of the additional consideration

payable as a liability at acquisition

date. This amount is reassessed at

each subsequent reporting date with

any adjustments recognised in the

Consolidated Income Statement.

If the business combination is

achieved in stages, the fair value of

the acquirer’s previously held equity

interest in the acquiree is re-measured

at the acquisition date through the

Consolidated Income Statement

or the Consolidated Statement of

Comprehensive Income.

For each business combination, the

Group elects whether to measure the

non-controlling interests in the acquiree

at fair value or at the proportionate share

of the acquiree’s identifiable net assets.

Transaction costs are expensed to

the Consolidated Income Statement

as incurred.

Put options held by non-controlling

interest shares

Any contingent consideration is

measured at fair value at the date of

acquisition. Where a put option is held

by a non-controlling interest (NCI) in a

subsidiary undertaking, whereby that

party can require the Group to acquire

the NCI’s shareholding in the subsidiary at

a future date, but the NCI retains present

access to the results of the subsidiary, the

Group applies the present access method

of accounting to this arrangement.

The Group recognises a contingent

consideration liability at fair value, being

the Group’s estimate of the amount

required to settle that liability and a

corresponding reserve in equity. Any

subsequent remeasurements required

due to changes in fair value of the put

liability estimation are recognised in the

Put Option Liability Reserve in equity.

Goodwill

Goodwill arises on business combinations

and represents the difference between

the fair value of the consideration and

the fair value of the Group’s share of the

identifiable net assets of a subsidiary at

the date of acquisition.

The Group measures goodwill at the

acquisition date as:

• the fair value of the consideration

transferred; plus

• the recognised amount of any non-

controlling interest in the acquiree;

plus

• if the business combination is

achieved in stages, the fair value of

the pre-existing equity interest in the

acquiree; less

• the net recognised amount (generally

fair value) of the identifiable assets

acquired and liabilities assumed.

275

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

1 Statement of Accounting Policies (continued)

Following initial recognition, goodwill is

measured at cost less any accumulated

impairment losses.

As at the acquisition date, any goodwill

acquired is allocated to each of the cash

generating units expected to benefit

from the combination’s synergies. The

cash generating units represent the

lowest level within the Group which

generate largely independent cash

inflows and these units are not larger

than the operating segments (before

aggregation) determined in accordance

with IFRS 8 Operating Segments.

Goodwill is tested for impairment at the

same level as the goodwill is monitored

by management for internal reporting

purposes, which is at the individual cash

generating unit level.

Goodwill is subject to impairment

testing on an annual basis and at any

time during the year if an indicator

of impairment is considered to exist.

The goodwill impairment tests are

undertaken at a consistent time each

year. Impairment is determined by

assessing the recoverable amount of

the cash generating unit to which the

goodwill relates. Where the recoverable

amount of the cash generating unit

is less than the carrying amount, an

impairment loss is recognised in the

Consolidated Income Statement.

Impairment losses arising in

respect of goodwill are not reversed

following recognition.

On disposal of a subsidiary, the

attributable amount of goodwill, not

previously written off, is included in

the calculation of the profit or loss

on disposal.

Intangible Assets (other than

goodwill)

Intangible assets separately acquired

are capitalised at cost. Intangible

assets acquired as part of a business

combination are capitalised at fair

value as at the date of acquisition.

Following initial recognition, intangible

assets, which have finite useful lives,

are carried at cost or initial fair value

less accumulated amortisation and

accumulated impairment losses.

The amortisation of intangible assets is

calculated to write off the book value of

intangible assets over their useful lives on

a straight-line basis on the assumption of

zero residual value. Amortisation charged

on these assets is recognised in the

Consolidated Income Statement.

The carrying amount of intangible assets

is reviewed for indicators of impairment

at each reporting date and is subject

to impairment testing when events

or changes of circumstances indicate

that the carrying values may not

be recoverable.

The estimated useful lives are as follows:

Customer relationships	2 - 10 years
Trademarks & Brands	2 - 12 years
Patents	8 years
Technological know how and order backlogs	1 - 10 years

Amortisation methods, useful lives

and residual values are reviewed at

each reporting date and adjusted

as necessary.

Foreign currency

Functional and presentation currency

The individual financial statements of

each Group company are measured

and presented in the currency of the

primary economic environment in which

the company operates, the functional

currency. The Group financial statements

are presented in Euro, which is the

Company’s functional currency.

Transactions and balances

Transactions in foreign currencies are

translated into the functional currency

at the exchange rates at the date of

the transaction. Monetary assets

and liabilities denominated in foreign

currencies are translated to the

functional currency at the exchange

rates at the reporting date. All currency

translation differences on monetary

assets and liabilities are taken to the

Consolidated Income Statement, except

when deferred in equity as qualifying net

investment hedges, which are recognised

in the Consolidated Statement of

Comprehensive Income.

Goodwill and fair value adjustments

arising on the acquisition of a foreign

entity are initially translated at the

exchange rate at the date of acquisition

and then subsequently these assets

and liabilities are treated as part of a

foreign entity and are translated at the

closing rate.

276

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

1 Statement of Accounting Policies (continued)

Exchange rates of material currencies used were as follows:

	Average rate		Closing rate
Euro =	2024	2023	2024	2023
Pound Sterling	0.847	0.870	0.830	0.869
US Dollar	1.082	1.082	1.041	1.106
Canadian Dollar	1.482	1.459	1.496	1.464
Australian Dollar	1.640	1.629	1.675	1.622
Czech Koruna	25.118	24.000	25.150	24.701
Polish Zloty	4.305	4.541	4.274	4.344
Hungarian Forint	395.350	381.550	410.770	382.520
Brazilian Real	5.835	5.401	6.424	5.374

Foreign operations

The Income Statement, Statement

of Financial Position and Cash Flow

Statement of Group companies that

have a functional currency different

from that of the Company are translated

as follows:

• Assets and liabilities at each reporting

date are translated at the closing rate

at that reporting date.

• Results and cash flows are translated

at actual exchange rates for the year,

or an average rate where this is a

reasonable approximation.

All resulting exchange differences

are recognised in the Consolidated

Statement of Comprehensive Income and

accumulated as a separate component

of equity, the Translation Reserve.

On disposal of a foreign operation,

any such cumulative retranslation

differences, previously recognised

in equity, are reclassified to the

Consolidated Income Statement as part

of gain or loss on disposal.

Inventories

Inventories are stated at the lower of cost

and net realisable value.

Cost is based on the first-in, first-out

principle and includes all expenditure

incurred in acquiring the inventories and

bringing them to their present location

and condition.

Raw materials are valued at the purchase

price including transport, handling costs

and net of trade discounts.

Work in progress and finished goods

are carried at cost consisting of direct

materials, direct labour and directly

attributable production overheads and

other costs incurred in bringing them to

their existing location and condition.

Net realisable value represents the

estimated selling price less costs to

completion and appropriate marketing,

selling and distribution costs.

A provision is made, where necessary,

in all inventory categories for obsolete,

slow-moving and defective items.

Income tax

Income tax in the Consolidated Income

Statement represents the sum of

current income tax and deferred tax

not recognised in other comprehensive

income or directly in equity.

Current tax

Current tax represents the expected tax

payable or recoverable on the taxable

profit for the year using tax rates

and laws that have been enacted, or

substantively enacted, at the reporting

date and taking into account any

adjustments from prior years. Liabilities

for uncertain tax treatments are

recognised in accordance with IFRIC 23

Uncertainty Over Income Tax Treatments

and are measured using either the most

likely amount method or the expected

value method – whichever better predicts

the resolution of the uncertainty.

Deferred Tax

Deferred tax is provided using the liability

method on temporary differences at the

reporting date. Temporary differences

are defined as the difference between

the tax bases of assets and liabilities

and their carrying amounts in the

consolidated financial statements.

Deferred tax assets and liabilities are not

subject to discounting and are measured

at the tax rates that are expected to

apply in the period in which the asset is

realised or the liability is settled based

on tax rates and tax laws that have been

enacted or substantively enacted at the

reporting date.

The Group offsets deferred tax assets

and deferred tax liabilities only if it has a

legally enforceable right to set off current

tax assets and current tax liabilities and

the deferred tax assets and deferred tax

liabilities relate to income taxes levied

by the same taxation authority on either

the same taxable entity or different

taxable entities which intend either to

settle current tax liabilities and assets

on a net basis, or to realise the assets

and settle the liabilities simultaneously,

in each future period in which significant

amounts of deferred tax liabilities

or assets are expected to be settled

or recovered.

Deferred tax liabilities are recognised for

all taxable temporary differences (i.e.

differences that will result in taxable

amounts in future periods when the

carrying amount of the asset or liability is

recovered or settled).

277

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

1 Statement of Accounting Policies (continued)

Deferred tax assets are recognised in

respect of all deductible temporary

differences (i.e. differences that give

rise to amounts which are deductible

in determining taxable profits in future

periods when the carrying amount of the

asset or liability is recovered or settled),

carry-forward of unused tax credits and

unused tax losses to the extent that

it is probable that taxable profits will

be available against which to offset

these items.

The carrying amounts of deferred tax

assets are subject to review at each

reporting date and reduced to the extent

that future taxable profits are considered

to be inadequate to allow all or part of

any deferred tax asset to be utilised.

Changes in deferred tax assets or

liabilities are recognised as a component

of tax income or expense in profit or loss,

except where they relate to items that

are recognised in other comprehensive

income or directly in equity, in which case

the related deferred tax is also recognised

in other comprehensive income or equity,

respectively.

The Group has applied the amendment

to IAS 12 Income Taxes on the mandatory

temporary exception to recognising and

disclosing information about deferred tax

assets and liabilities that are related to

tax law enacted or substantively enacted

to implement the Pillar Two model

rules published by the Organisation

for Economic Co-operation and

Development (OECD).

Investments in subsidiaries

Investments in subsidiaries are stated at

cost less any accumulated impairments

and are reviewed for impairment if there

are indications that the carrying value

may not be recoverable.

Investments in associates

An associate is an entity over which the

Group has significant influence and that

is neither a subsidiary nor an interest in a

joint venture. Significant influence is the

power to participate in the financial and

operating policy decisions of the investee

but is not control or joint control over

those policies.

The consolidated income statement

incorporates the results of the associate

using the equity method of accounting.

Under the equity method, an investment

in an associate is recognised initially in

the consolidated statement of financial

position at cost and adjusted thereafter

to recognise the Group’s share of the

profit or loss. If the Group’s share of

losses of an associate exceeds the

Group’s interest in that associate, the

Group discontinues recognising its share

of further losses. Additional losses are

recognised only to the extent that the

Group has incurred legal or constructive

obligations or made payments on behalf

of the associate.

The Group applies the equity method

from the date in which significant

influence is obtained and discontinues

the use of the equity method from the

date when the investment ceases to be

an associate.

Property, Plant and Equipment

Property, plant and equipment is

measured at cost less accumulated

depreciation and accumulated

impairment losses.

Depreciation is provided on a straight line

basis at the rates stated below, which

are estimated to reduce each item of

property, plant and equipment to its

residual value by the end of its useful life:

Freehold buildings	2% to 2.5%
	on cost
Plant and machinery	4% to 20%
	on cost
Fixtures and fittings	10% to 20%
	on cost
Computer	12.5% to 33%
equipment	on cost
Motor vehicles	10% to 25%
	on cost

Freehold land is stated at cost and is

not depreciated.

The estimated useful lives and residual

values of property, plant and equipment

are determined by management at

the time the assets are acquired and

subsequently reassessed at each

reporting date. These lives are based on

historical experience with similar assets

across the Group.

In accordance with IAS 36 Impairment of

Assets, the carrying values of property,

plant and equipment are reviewed

at each reporting date to determine

whether there is any indication of

impairment. An impairment loss is

recognised whenever the carrying value

of an asset or its cash generating unit

exceeds its recoverable amount.

Impairment losses are recognised in

the Consolidated Income Statement.

Following the recognition of an

impairment loss, the depreciation

charge applicable to the asset or cash-

generating unit is adjusted to allocate

the revised carrying amount, net of

any residual value, over the remaining

useful life.

Assets under construction are carried at

cost less any recognised impairment loss.

Depreciation of these assets commences

when the assets are ready for their

intended use.

Leases

The Group recognises right of use

assets representing its right to use the

underlying assets and lease liabilities

representing its obligation to make lease

payments at the lease commencement

date. The right of use assets are initially

measured at cost, and subsequently

measured at cost less accumulated

depreciation and impairment losses. The

cost of the right of use asset consists

of the initial measurement of the lease

liability, any initial direct costs incurred in

entering into the lease, restoration costs

and any payments made on or before

the lease commencement date, net of

any lease incentives received.

278

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

1 Statement of Accounting Policies (continued)

Depreciation is provided on a straight

line basis over the period of the lease, or

useful life if shorter.

Lease liabilities are measured at the

present value of the future lease

payments, discounted at the Group’s

incremental borrowing rate. Subsequent

to the initial measurement, the

lease liabilities are increased by the

interest cost and reduced by lease

payments made.

The right of use assets and lease

liabilities are remeasured when there are

changes in the assessment of whether

an extension option is reasonably

certain to be exercised or a termination

option is reasonably certain not to be

exercised or where there is a change in

future lease payments as a result of a

change in an index or rate. The Group

applies judgement when determining

the lease term where renewal and

termination options are contained in the

lease contract.

The Group applies the short-term lease

recognition exemption to leases that

have a lease term of 12 months or less

from the commencement date. The

Group also applies the lease of low-value

assets recognition exemption to leases

of equipment that are considered to be

low value. Lease payments on short-term

leases and leases of low-value assets are

recognised as an expense on a straight-

line basis over the term of the lease.

Retirement benefit obligations

The Group operates defined contribution

and defined benefit pensions schemes.

Defined contribution pension schemes

The costs arising on the Group’s defined

contribution schemes are recognised in

the Consolidated Income Statement in

the period in which the related service

is provided. The Group has no legal or

constructive obligation to pay further

contributions in the event that these

plans do not hold sufficient assets to

provide retirement benefits.

Defined benefit pension schemes

The Group’s net obligation in respect

of defined benefit plans is calculated

separately for each plan by estimating

the amount of future benefit that

employees have earned in return for their

service in the current and prior periods,

discounting that amount and deducting

the fair value of any plan assets.

The calculation is performed annually by

a qualified actuary using the projected

unit credit method. When the calculation

results in a benefit to the Group, the

recognised asset is limited to the total of

any unrecognised past service costs and

the present value of economic benefits

available in the form of any future

refunds from the plan or reductions in

future contributions to the plan.

Remeasurements of the net defined

benefit liability or asset, which comprise

actuarial gains and losses, the return

on plan assets (excluding interest)

and the effect of the asset ceiling,

are recognised immediately in other

comprehensive income.

The Group determines the net interest

expense on the net defined benefit

liability or asset by applying the discount

rate used to measure the defined benefit

obligation at the beginning of the annual

period to the then net defined benefit

liability or asset, taking into account

any changes in the net defined benefit

liability or asset during the period as

a result of contributions and benefit

payments. Net interest expense and

other expenses related to defined benefit

plans are recognised in profit or loss.

When the benefits of a plan are changed

or when a plan is curtailed, the resulting

change in benefit that relates to past

service or the gain or loss on curtailment

is recognised immediately in profit or

loss. The Group recognises gains and

losses on the settlement of a defined

benefit plan when the settlement occurs.

Provisions

A provision is recognised in the

Consolidated Statement of Financial

Position when the Group has a present

constructive or legal obligation as a

result of a past event and it is probable

that an outflow of economic benefit will

be required to settle the obligation and

the amount of the obligation can be

estimated reliably.

A specific provision is created when a

claim has actually been made against

the Group or where there is a known

issue at a known customer’s site, both

relating to a product or service supplied

in the past. In addition, a risk-based

provision is created where future claims

are considered incurred but not reported.

The warranty provision is based on

historical warranty data and a weighting

of all possible outcomes against their

associated probabilities.

Specific provisions will generally be

aged as a current liability, reflecting the

assessment that a current liability exists

to replace or repair product sold on foot

of an accepted valid warranty issue.

Only where the liability is reasonably

certain not to be settled within the next

12 months, will a specific provision be

categorised as a long-term obligation.

Risk-based provisions will generally be

aged as a non-current liability, reflecting

the fact that no warranty claim has yet

been made by the customer.

Provisions which are not expected to

give rise to a cash outflow within 12

months of the reporting date are, where

material, determined by discounting

the expected future cash flows. The

unwinding of the discount is recognised

as a finance expense.

Dividends

Final dividends on ordinary shares are

recognised as a liability in the financial

statements only after they have been

approved at the Annual General Meeting

of the Company. Interim dividends on

ordinary shares are recognised when they

are paid.

279

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

1 Statement of Accounting Policies (continued)

Cash and cash equivalents

Cash and cash equivalents principally

comprise cash at bank and in hand and

short-term deposits with an original

maturity of three months or less.

Derivative financial instruments

Derivative financial instruments,

principally interest rate and currency

swaps, are used to hedge the Group’s

foreign exchange and interest rate

risk exposures.

Derivative financial instruments are

recognised initially at fair value and

thereafter are subsequently remeasured

at their fair value. Fair value is the price

that would be received to sell an asset

or paid to transfer a liability in an orderly

transaction between market participants

at the measurement date. The fair value

of these instruments is the estimated

amount that the Group would receive

or pay to terminate the swap at the

reporting date, taking into account

current interest and currency exchange

rates and the current creditworthiness of

the swap counterparties.

The Group designates all of its derivatives

in one or more of the following types

of relationships:

i. Fair value hedge: Hedges the

exposure to movements in fair value

of recognised assets or liabilities that

are attributable to hedged risks.

ii. Cash flow hedge: Hedges the

Group’s exposures to fluctuations

in future cash flow derived from

a particular risk associated with

recognised assets or liabilities or

forecast transactions.

iii. Net investment hedge: Hedges the

exchange rate fluctuations of a net

investment in a foreign operation.

At inception of the transaction, the

Group documents the relationship

between the hedging instruments

and hedged items, including the risk

management objectives and strategy in

undertaking the hedge transactions. The

Group also documents its assessment,

both at inception and on an ongoing

basis, as to whether the derivatives that

are used in hedging transactions are

highly effective in offsetting changes in

fair values or cash flows of hedged items.

Fair value hedge

Any gain or loss resulting from the

re-measurement of the hedging

instrument to fair value is reported in

the Consolidated Income Statement,

together with any changes in the fair

value of the hedged asset or liability that

are attributable to the hedged risk. The

gains or losses of a hedging instrument

that are in hedge relationships with

borrowings are included within Finance

Income or Finance Expense in the

Consolidated Income Statement. In the

case of the related hedged borrowings,

any gain or loss on the hedged item

which is attributable to the hedged

risk is adjusted against the carrying

amount of the hedged item and is

also included within Finance Income or

Finance Expense in the Consolidated

Income Statement.

If the hedge no longer meets the criteria

for hedge accounting, the adjustment to

the carrying amount of the hedged item

is amortised on an effective interest basis

to the Consolidated Income Statement

with the objective of achieving full

amortisation by maturity of the

hedged item.

Cash flow hedge

The effective part of any gain or loss

on the derivative financial instrument

is recognised in other comprehensive

income and presented in the Cash

Flow Hedge Reserve in equity with the

ineffective portion being recognised

within Finance Income or Finance

Expense in the Consolidated Income

Statement. If a hedge of a forecasted

transaction subsequently results in the

recognition of a financial asset or a

financial liability, the associated gains

and losses that were recognised directly

in other comprehensive income are

reclassified into profit or loss in the same

period or periods during which the asset

acquired or liability assumed affects

profit or loss. For cash flow hedges, other

than those covered by the preceding

statements, the associated cumulative

gain or loss is removed from other

comprehensive income and recognised

in the Consolidated Income Statement in

the same period or periods during which

the hedged forecast transaction affects

profit or loss. The ineffective part of any

gain or loss is recognised immediately in

the Consolidated Income Statement.

Hedge accounting is discontinued when

a hedging instrument expires or is sold,

terminated or exercised, or no longer

qualifies for hedge accounting. The

cumulative gain or loss at that point

remains in other comprehensive income

and is recognised when the transaction

occurs. If a hedged transaction is no

longer expected to occur, the net

cumulative gain or loss recognised

in other comprehensive income is

transferred to the Consolidated Income

Statement in the period.

280

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

1 Statement of Accounting Policies (continued)

Net investment hedge

Any gain or loss on the hedging

instrument relating to the effective

portion of the hedge is recognised

in other comprehensive income and

presented in the Translation Reserve

in equity. The gain or loss relating to

the ineffective portion is recognised

immediately in either Finance Income

or Finance Expense in the Consolidated

Income Statement. Cumulative gains

or losses remain in equity until disposal

of the net investment in the foreign

operation at which point the related

differences are reclassified to the

Consolidated Income Statement as part

of the overall gain or loss on sale.

Financial Assets

On initial recognition, a financial asset is

classified as measured at amortised cost

and subsequently measured using the

effective interest rate (EIR) method and

subject to impairment. Financial assets

may also be initially measured at fair

value with any movement being reflected

through other comprehensive income or

the Consolidated Income Statement.

On initial recognition of an equity

investment that is not held for trading,

the Group may irrevocably elect

to present subsequent changes in

the investment’s fair value in other

comprehensive income. This election

is made on an investment-by-

investment basis.

The Group applies the simplified

approach for expected credit losses

(ECL) under IFRS 9 Financial Instruments,

which requires expected lifetime

losses to be recognised from initial

recognition of receivables. Under IFRS 9

Financial Instruments, the Group uses

an allowance matrix to measure ECL

of trade receivables from customers.

Loss rates are calculated using a “roll

rate” method based on the probability

of a receivable progressing through

successive chains of non-payment to

write-off. The rates are calculated at a

business unit level which reflects the risks

associated with geographic region, age,

mix of customer relationship and type of

product purchased.

Financial Liabilities

Financial liabilities held for trading are

measured at fair value through the profit

and loss, and all other financial liabilities

are measured at amortised cost unless

the fair value option is applied.

Finance Income

Finance income primarily comprises

interest income on funds invested and

any gains on hedging instruments that

are recognised in the Consolidated

Income Statement. Interest income

is recognised as it accrues using the

effective interest rate method.

Finance Expense

Finance expense comprises interest

charged on cash balances held in

certain currencies, interest payable on

borrowings calculated using the effective

interest rate method, fair value gains and

losses on hedging instruments that are

recognised in the Consolidated Income

Statement, the net finance cost of the

Group’s defined benefit pension scheme,

lease interest, the discount component

of the deferred contingent consideration

which is unwound as an interest charge

in the Consolidated Income Statement

over the life of the obligation and fair

value movements associated with

deferred contingent consideration.

Share-Based Payment Transactions

The Group grants equity settled share-

based payments to employees through

the Performance Share Plan and the

Deferred Bonus Plan.

The fair value of these equity settled

transactions is determined at grant

date and is recognised as an employee

expense in the Consolidated Income

Statement, with the corresponding

increase in equity, on a straight line

basis over the vesting period. The fair

value at the grant date is determined

using a combination of the Monte Carlo

simulation technique and the Black

Scholes model, excluding the impact

of any non-market conditions. Non-

market vesting conditions are included

in the assumptions about the number

of options that are expected to vest. At

each reporting date, the Group revises

its estimates of the number of options

that are likely to vest as a result of

non-market conditions. Any adjustment

from this revision is recognised in the

Consolidated Income Statement with a

corresponding adjustment to equity.

Where the share-based payments give

rise to the issue of new share capital,

the proceeds received by the Company

are credited to share capital (nominal

value) and share premium (where

applicable) when the share entitlements

are exercised. Where the share-based

payments give rise to the re-issue of

shares from treasury shares, the proceeds

of issue are credited to share premium.

The Group does not operate any cash-

settled share-based payment schemes

or share-based payment transactions

with cash alternatives as defined in IFRS

2 Share-based Payments.

Treasury Shares

Where the Company purchases

its own equity share capital, the

consideration paid is deducted from

total shareholders’ equity and classified

as treasury shares until such shares

are cancelled or reissued. Where

such shares are subsequently sold or

reissued, any consideration received is

included in share premium account. No

gains or losses are recognised on the

purchase, sale, cancellation or issue of

treasury shares.

Non-controlling interest

Non-controlling interests represent the

portion of the equity of a subsidiary not

attributable either directly or indirectly to

the parent company and are presented

separately in the Consolidated Income

Statement and within equity in the

Consolidated Statement of Financial

Position, distinguished from shareholders’

equity attributable to owners of the

parent company.

281

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

1 Statement of Accounting Policies (continued)

Accounting Estimates and

Judgements

In the process of applying the Group’s

accounting policies, as set out on pages

273 to 283, management are required

to make estimates and judgements

that could materially affect the Group’s

reported results or net asset position.

The preparation of the Group’s

consolidated financial statements

requires management to make

judgements, estimates and assumptions

that affect the reported amounts of

revenues, expenses, assets and liabilities,

and the accompanying disclosures, and

the disclosure of contingent liabilities.

Uncertainty about these assumptions

and estimates could result in outcomes

that require a material adjustment to the

carrying amount of assets or liabilities in

future periods. The Group has considered

the impact of climate change on the

consolidated financial statements,

including the carrying value of assets,

the useful economic life of assets,

and provisions.

The areas where key estimates and

judgements were made by management

and are material to the Group’s reported

results or net asset position, are

as follows:

Impairment (Note 9)

The Group is required to review assets for

objective evidence of impairment.

It does this on the basis of a review of

the budget and rolling 5 year forecasts

(4 year strategic plan, as approved by

the Board, plus year 5 forecasted by

management), which by their nature are

based on a series of assumptions and

estimates. The forecasts used for the

Roofing + Waterproofing CGU are based

on a 4 year financial plan approved by

the Board of Directors, plus years 5-10 as

forecasted by management.

The Group has performed impairment

tests on those cash generating units

which contain goodwill, and on any

assets where there are indicators of

impairment. The key assumptions

associated with these reviews are

detailed in Note 9. The Group also

considered the potential impact of

climate change. This is an area of

estimation and judgement.

Guarantees & warranties (Note 21)

Certain products carry formal

guarantees of satisfactory functional

and aesthetic performance of varying

periods following their purchase. Local

management evaluate the constructive

or legal obligation arising from customer

feedback and assess the requirement

to provide for any probable outflow

of economic benefit arising from a

settlement. This is an area of estimation

and judgement.

Recoverability of trade receivables

(Note 15)

The Group provides credit to customers

and as a result there is an associated risk

that the customer may not be able to

pay outstanding balances.

Under IFRS 9 the Group uses an

allowance matrix to measure ECL of

trade receivables from customers.

Loss rates are calculated using a “roll

rate” method based on the probability

of a receivable progressing through

successive chains of non-payment to

write-off. The rates are calculated at a

business unit level which reflects the risks

associated with geographic region, age,

mix of customer relationship and type

of product purchased. This is an area of

estimation and judgement.

Valuation of inventory (Note 14)

Inventories are measured at the lower of

cost and net realisable value. The Group’s

policy is to hold inventories at original

cost and create an inventory provision

where evidence exists that indicates

net realisable value is below cost for a

particular item of inventory. Damaged,

slow-moving or obsolete inventory are

typical examples of such evidence. This is

an area of estimation and judgement.

Leases (Note 17)

The Group has applied judgement to

determine the lease term of contracts

that include termination and extension

options. If the Group is reasonably

certain to exercise such options, the

relevant amount of right of use assets

and lease liabilities are recognised.

The Group has also applied judgement in

determining the incremental borrowing

rates (IBR). The incremental borrowing

rate is the rate of interest that a lessee

would expect to incur on funds borrowed

over a similar term and security to

obtain a comparable value to the right

of use asset in the relevant economic

environment. The Group estimates the

IBR using observable inputs (such as

market interest rates) when available

and makes certain entity-specific

estimates (such as country risk and

entity specific credit rating) as required.

Business Combinations (Note 23)

Business combinations are accounted

for using the acquisition method

which requires that the assets and

liabilities assumed are recorded at

their respective fair values at the date

of acquisition. The application of this

method requires certain estimates and

assumptions relating, in particular, to the

determination of the fair values of the

acquired assets and liabilities assumed at

the date of acquisition.

For intangible assets acquired, the Group

bases valuations on expected future cash

flows. This method employs a discounted

cash flow analysis using the present value

of the estimated cash flows expected

to be generated from these intangible

assets using appropriate discount rates

and revenue forecasts. The period of

expected cash flows is based on the

expected useful life of the intangible

asset acquired.

282

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

1 Statement of Accounting Policies (continued)

Measurement of deferred contingent

consideration and put option liabilities

related to business combinations require

assumptions to be made regarding

profit forecasts and discount rates used

to arrive at the net present value of the

potential obligations. The Group has

considered all available information

in arriving at the estimate of liabilities

associated with deferred contingent

consideration obligations. This is an area

of estimation and judgement.

Income taxes (Note 7)

The Group is subject to income tax

in numerous jurisdictions. Significant

judgement is required in determining

the worldwide provision for income

taxes. There are many transactions for

which the ultimate tax determination

is uncertain. The Group recognises

liabilities based on estimates of whether

additional taxes will be due. Once it has

been concluded that a liability needs to

be recognised, the liability is measured

based on the tax laws that have been

enacted or substantially enacted at the

end of the reporting period. The amount

shown for current taxation includes an

estimate for uncertain tax treatments

where the Group considers it probable

that uncertain tax treatments will not

be accepted by tax authorities and

the estimate is measured using either

the most likely amount method or the

expected value method, as appropriate,

prescribed by IFRIC 23. Where the

final tax outcome of these matters is

different from the amounts that were

initially estimated, such differences will

impact the income tax and deferred tax

provisions in the period in which such

determination is made.

Deferred tax assets are recognised

to the extent that it is probable that

future taxable profit will be available

against which the unused tax losses

and unused tax credits can be utilised.

The Group estimates the most probable

amount of future taxable profits, using

assumptions consistent with those

employed in impairment calculations,

and taking into consideration applicable

tax legislation in the relevant jurisdiction.

These calculations also require the use of

estimates and judgement.

Deferred Contingent Consideration

(Note 19)

Measurement of put option liabilities and

deferred contingent consideration require

assumptions to be made regarding

profit forecasts and discount rates used

to arrive at the net present value of the

potential obligations. The Group has

considered all available information

in arriving at the estimate of liabilities

associated with put option obligations

and deferred contingent consideration.

This is an area of estimation.

2 Segment Reporting

In identifying the Group’s operating segments, management based its decision on the product supplied by each segment and the

fact that each segment is managed and reported separately to the Chief Operating Decision Maker. These operating segments

are monitored and strategic decisions are made on the basis of segment operating results.

Operating segments

The Group has the following five operating segments:

Insulated Panels	Manufacture of insulated panels, structural framing and metal facades.
Insulation	Manufacture of a broad range of insulation solutions (rigid boards,
	stonewool, bio-based and technical insulation) and engineered
	timber systems.
Data Solutions	Manufacture of data centre airflow management/cooling solutions and
	raised access floors.
Light, Air + Water	Manufacture of energy and water solutions, daylighting, smoke
	management and ventilation systems and related service activities.
Roofing + Waterproofing	Manufacture of roofing and waterproofing solutions for renovation and
	new construction of buildings.

283

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

2 Segment Reporting (continued)

Analysis by class of business

	Insulated	Insulation	Data	Light, Air +	Roofing +	Total
	Panels		Solutions	Water	Waterproofing
	€m	€m	€m	€m	€m	€m
Total revenue – 2024	4,737.5	1,824.7	516.2	961.1	568.5	8,608.0
Total revenue – 2023	4,722.1	1,528.0	379.7	967.4	493.4	8,090.6
Disaggregation of revenue 2024
Point of Time	4,730.7	1,801.6	447.4	640.5	542.8	8,163.0
Over Time & Contract	6.8	23.1	68.8	320.6	25.7	445.0
	4,737.5	1,824.7	516.2	961.1	568.5	8,608.0
Disaggregation of revenue 2023
Point of Time	4,719.8	1,502.9	333.3	671.8	493.4	7,721.2
Over Time & Contract	2.3	25.1	46.4	295.6	-	369.4
	4,722.1	1,528.0	379.7	967.4	493.4	8,090.6

The disaggregation of revenue by geography is set out in more detail on page 286.

The segments specified above capture the major product lines relevant to the Group.

The combination of the disaggregation of revenue by product group, geography and the timing of revenue recognition capture the

key categories of disclosure with respect to revenue. Typically, individual performance obligations are specifically called out in the

contract which allow for accurate recognition of revenue as and when performance obligations are fulfilled. Given the nature of

the Group’s product set, customer returns are not a significant feature of our business model. No further disclosures are required

with respect to disaggregation of revenue other than what has been presented in this note.

Inter-segment transfers are carried out at arm’s length prices and using an appropriate transfer pricing methodology. As inter-

segment revenue is not material, it is not subject to separate disclosure in the above analysis. For the purposes of the segmental

analysis, corporate overheads have been allocated to each division based on their respective revenue for the year.

	Insulated	Insulation	Data	Light, Air +	Roofing +	Total	Total
	Panels		Solutions	Water	Waterproofing	2024	2023
	€m	€m	€m	€m	€m	€m	€m
Trading profit – 2024	545.5	147.8	77.9	79.7	55.8	906.7
Intangible amortisation	(9.4)	(14.8)	(0.3)	(3.1)	(17.0)	(44.6)
Operating profit – 2024	536.1	133.0	77.6	76.6	38.8	862.1
Trading profit – 2023	573.8	145.1	51.2	78.7	28.1		876.9
Intangible amortisation	(10.2)	(10.1)	(0.7)	(3.5)	(17.2)		(41.7)
Operating profit - 2023	563.6	135.0	50.5	75.2	10.9		835.2
Net finance expense						(32.0)	(41.0)
Share of associates’ profit after tax						1.7	-
Profit for the year before tax						831.8	794.2
Income tax expense						(141.0)	(140.3)
Net profit for the year						690.8	653.9

284

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

2 Segment Reporting (continued)

	Insulated	Insulation	Data	Light, Air +	Roofing +	Total	Total
	Panels		Solutions	Water	Waterproofing	2024	2023
	€m	€m	€m	€m	€m	€m	€m
Assets – 2024	3,606.8	2,415.7	359.9	934.0	1,408.5	8,724.9
Assets – 2023	3,352.8	1,568.9	291.9	915.3	854.4		6,983.3
Derivative financial instruments						4.7	-
Cash and cash equivalents						1,005.4	938.7
Deferred tax assets						84.5	79.6
Total assets as reported in the Consolidated Statement of Financial Position						9,819.5	8,001.6

	Insulated	Insulation	Data	Light, Air +	Roofing +	Total	Total
	Panels		Solutions	Water	Waterproofing	2024	2023
	€m	€m	€m	€m	€m	€m	€m
Liabilities – 2024	(1,176.7)	(572.2)	(180.5)	(313.7)	(259.4)	(2,502.5)
Liabilities – 2023	(1,114.4)	(278.7)	(122.3)	(320.7)	(180.8)		(2,016.9)
Interest bearing loans and borrowings (current and non-current)						(2,583.0)	(1,918.2)
Derivative financial instruments (current and non-current)						-	(0.2)
Income tax liabilities (current and deferred)						(143.2)	(118.5)
Total liabilities as reported in the Consolidated Statement of Financial Position						(5,228.7)	(4,053.8)

	Insulated	Insulation	Data	Light,	Roofing +	Total
	Panels		Solutions	Air +	Waterproofing
				Water
	€m	€m	€m	€m	€m	€m
Capital investment – 2024*	231.9	553.5	34.0	37.6	108.6	965.6
Capital investment – 2023*	173.5	55.4	13.1	20.2	51.5	313.7
Depreciation included in segment result – 2024	(105.3)	(69.5)	(9.3)	(30.4)	(17.4)	(231.9)
Depreciation included in segment result – 2023	(95.1)	(45.7)	(7.7)	(27.9)	(14.5)	(190.9)
Non-cash items included in segment result – 2024	(9.7)	(4.7)	(2.1)	(2.7)	(0.7)	(19.9)
Non-cash items included in segment result – 2023	(12.7)	(4.4)	(1.7)	(3.3)	(0.6)	(22.7)

* Capital investment also includes fair value of property, plant and equipment and intangible assets acquired in

business combinations.

285

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

2 Segment Reporting (continued)

Analysis of segmental data by geography

	Western &	Central &	Americas	Rest of	Total
	Southern	Northern		World
	Europe	Europe
	€m	€m	€m	€m	€m
Income Statement Items
Revenue – 2024	3,681.8	2,352.0	1,919.0	655.2	8,608.0
Revenue – 2023	3,650.6	2,021.1	1,877.9	541.0	8,090.6
Statement of Financial Position Items
Non-current assets – 2024 *	2,449.7	2,396.5	964.9	326.5	6,137.6
Non-current assets – 2023 *	2,409.3	1,269.0	805.4	281.1	4,764.8
Other segmental information
Capital investment – 2024	186.1	599.9	140.5	39.1	965.6
Capital investment – 2023	112.7	119.2	47.3	34.5	313.7

* Total non-current assets excluding deferred tax assets.

The Group is trading in over 80 countries worldwide. Foreign regions of operation are as set out above and specific countries of

operation are highlighted separately below on the basis of materiality where revenue exceeds 15% of total Group revenues.

Revenues, non-current assets and capital investment (as defined in IFRS 8 Operating Segments) attributable to France were

€1,324.9m (2023: €1,259.5m), €842.1m (2023: €757.7m) and €93.9m (2023: €20.4m) respectively.

Revenues, non-current assets and capital investment (as defined in IFRS 8 Operating Segments) attributable to the country of

domicile (Ireland) were €236.1m (2023: €234.3m), €119.4m (2023: €230.5m) and €11.3m (2023: €16.1m) respectively.

The country of domicile (Ireland) is included in Western & Southern Europe. Western & Southern Europe also includes France,

Benelux, Spain, and Britain while Central & Northern Europe includes Germany, the Nordics, Poland, Hungary, Romania, Czech

Republic, the Baltics and other South Central European countries. Americas comprises the US, Canada, Central Americas and

South America. Rest of World is predominantly Australasia and the Middle East.

There are no material dependencies or concentrations on individual customers which would warrant disclosure under IFRS 8

Operating Segments. The individual entities within the Group each have a large number of customers spread across various

activities, end-uses and geographies.

3 Employees

a) Employee numbers

The average number of persons employed by the Group in the financial year was:

	2024	2023
	Number	Number
Production	15,599	13,437
Sales and distribution	5,250	5,032
Management and administration	4,552	3,915
	25,401	22,384

286

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

3 Employees (continued)

b) Employee costs, including executive directors

	2024	2023
	€m	€m
Wages and salaries	1,290.9	1,126.1
Social welfare costs	173.8	144.2
Pension costs - defined contribution (Note 32)	43.6	37.8
Share-based payments and awards	19.9	22.7
	1,528.2	1,330.8
Actuarial (gains)/losses recognised in other comprehensive income	(3.4)	5.0
	1,524.8	1,335.8

c) Employee share-based compensation

The Group currently operates two equity settled share-based payment schemes; a Performance Share Plan (PSP) and a Deferred

Bonus Plan. The details of these schemes are provided in the Report of the Remuneration Committee.

Performance Share Plan (PSP)

		Number of PSP Options
	2024	2023
Outstanding at 1 January	1,635,093	1,714,879
Granted	491,852	505,989
Forfeited	(110,285)	(269,903)
Lapsed	-	-
Exercised	(365,240)	(315,872)
Outstanding at 31 December	1,651,420	1,635,093
Of which, exercisable	419,847	468,760

The Group recognised a PSP expense of €18.4m (2023: €22.7m) in the Consolidated Income Statement during the year. All PSP

options are exercisable at €0.13 per share. For PSP options that were exercised during the year the average share price at the date

of exercise was €82.82 (2023: €66.66). The weighted average contractual life of share options outstanding at 31 December 2024 is

4.4 years (2023: 4.4 years). The weighted average exercise price during the period was €0.13 (2023: €0.13).

The fair values of options granted under the PSP scheme during the current and prior year were determined using the Black

Scholes Model or the Monte Carlo Pricing Model as appropriate. The key assumptions used in the model were as follows:

	2024	Awards	2023	Awards
		19 February 2024		20 February 2023
Share price at grant date		€83.04		€63.58
Exercise price per share		€0.13		€0.13
Expected volatility		39.9%		43.8%
Expected dividend yield		1.25%		1.25%
Risk-free rate		2.4%		2.6%
Expected life		3 years		3 years

287

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

3 Employees (continued)

The resulting weighted average fair value of options granted in the year was €59.82 (2023: €47.95).

As set out in the Report of the Remuneration Committee, the number of options that will ultimately vest is contingent on

market conditions such as Total Shareholder Return and non-market conditions such as the Earnings Per Share of the Group and

achievement of its Planet Passionate targets. Market conditions were taken into account in determining the above fair value,

and non-market conditions were considered when estimating the number of shares that will eventually vest. Expected volatility

was determined by calculating the historical volatility of the Group and peer company share prices over the previous 3 years. The

Report of the Remuneration Committee sets out the current companies within the peer group.

Deferred Bonus Plan

As set out in the Report of the Remuneration Committee, the Deferred Bonus Plan (DBP) is intended to reward incremental

performance over and above the growth targeted by the annual performance related bonus. Any DBP bonus earned for such

incremental performance is satisfied by the payment of deferred share awards. These shares are held for the benefit of the

individual participants for two years without any additional performance conditions. These shares vest after two years but are

forfeited if the participant leaves the Group within that period.

During the year, 15,689 (2023: 13,547) awards were granted under the DBP and 21,438 (2023: nil) awards were exercised. 29,236

awards remain outstanding at 31 December 2024 (2023: 34,985). A charge of €1.5m was recognised in the Consolidated Income

Statement for 2024 (2023: €1.6m).

4 Finance Expense And Finance Income

	2024	2023
	€m	€m
Finance expense
Lease interest	7.2	6.0
Bank loan interest	21.6	24.9
Private placement loan note and bond interest	37.3	31.6
Other interest	1.3	1.2
Finance income	67.4	63.7
Interest earned	(15.6)	(19.2)
Deferred consideration – fair value movement	(16.1)	-
Equity investments at FVOCI – dividend income	(3.7)	(3.5)
	(35.4)	(22.7)
Net finance expense	32.0	41.0

€3.6m of borrowing costs were capitalised during the year (2023: €0.8m). No costs were reclassified from other comprehensive

income to profit during the year (2023: €nil).

5 Profit For The Year Before Income Tax

	2024	2023
	€m	€m
The profit before tax for the year is stated after charging/(crediting):
Distribution expenses	386.6	327.2
Product development costs (total, including payroll)	75.5	63.5
Depreciation	231.9	190.9
Amortisation of intangible assets	44.6	41.7
Impairment of property, plant and equipment	3.9	2.9
Foreign exchange net gains	(11.5)	(1.6)
Profit on sale of property, plant and equipment	(7.9)	(1.3)

288

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

5 Profit For The Year Before Income Tax (continued)

Analysis of total auditor’s remuneration

	EY Ireland	Other EY	Total	EY Ireland	Other EY	Total
	2024	Offices	2024	2023	Offices	2023
		2024			2023
	€m	€m	€m	€m	€m	€m
Audit of Group and subsidiaries	2.3	3.5	5.8	1.5	3.3	4.8
Other assurance services	0.7	0.1	0.8	-	-	-
Tax compliance and advisory services	0.1	-	0.1	0.3	-	0.3
	3.1	3.6	6.7	1.8	3.3	5.1

Included in Audit of Group are total fees of €0.4m which are due to EY in respect of the audit of the Parent Company (2023:

€0.4m).

6 Directors’ Remuneration

	2024	2023
	€m	€m
Fees	0.8	0.9
Other emoluments	5.8	6.8
Pension costs	0.4	0.4
	7.0	8.1
Performance Share Plan accounting charge	3.7	4.1
	10.7	12.2

In accordance with the Statement of Accounting Policies (Share-Based Payment Transactions) and Note 3, the Performance

Share Plan accounting charge of €3.7m (2023: €4.1m) is the fair value expense, accounted for in accordance with IFRS 2 Share-

based Payments, of equity settled share-based payments attributable to directors for the period. The fair value of each equity

settled share-based payment is determined at grant date and is recognised as an employee expense in the Consolidated Income

Statement on a straight-line basis over the vesting period.

Pursuant to the Companies Act 2014 and related guidance, the Report of the Remuneration Committee only reports share-based

payments which vested in the period, and they are measured at market value rather than fair value. This explains differences

between the total Directors’ Remuneration expense of €10.7m (2023: €12.2m) in this Note and the total Directors’ Remuneration

expense of €8.1m (2023: €13.0m) in the Report of the Remuneration Committee.

Aggregate gains of €1.9m (2023: €3.8m) were realised with respect to share options exercised by directors during the financial

year. Details of the number of share options exercised by each director, the market value of the shares on the date of exercise, and

the exercise price are included in the Performance Share Plan section of the Report of the Remuneration Committee.

A detailed analysis of Directors’ Remuneration is contained in the Report of the Remuneration Committee.

289

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

7 Income Tax Expense

	2024	2023
	€m	€m
Tax recognised in the Consolidated Income Statement
Current taxation:
Current tax expense	147.9	160.2
Adjustment in respect of prior years	(9.8)	(6.9)
Deferred taxation:	138.1	153.3
Origination and reversal of temporary differences	2.5	(12.1)
Effect of rate change	0.4	(0.9)
	2.9	(13.0)
Income tax expense	141.0	140.3

The following table is the numerical reconciliation between tax expenses and the product of accounting profit multiplied by the

applicable tax rate:

	2024	2023
	€m	€m
Profit for the year	831.8	794.2
Applicable notional tax charge (12.5%)	104.0	99.3
Expenses not deductible for tax purposes	17.8	16.2
Net effect of differing tax rates	28.8	45.6
Utilisation of unprovided deferred tax assets	(1.9)	(3.6)
Other items	(7.7)	(17.2)
Total income tax expense	141.0	140.3

The total tax charge in future periods will be affected by any changes to the corporation tax rates in force in the countries in which

the Group operates. Changes in the geographical mix of future earnings will also impact the total tax charge.

The Group is subject to the Global Anti-Base Erosion Model Rules, also referred to as the Pillar Two model rules, with effect from

1 January 2024. The objective of these complex rules is to achieve minimum effective tax rates of 15% globally. The Group has

assessed the impact of these new rules and determined that the Group already has a Pillar Two effective tax rate of greater than

15% in the majority of the countries in which it operates. The Pillar Two tax charge is immaterial for 2024 and is included in the

total income tax expense.

The methodology used to determine the recognition and measurement of uncertain tax positions is set out in Note 1 ‘Statement of

Accounting Policies’.

The total value of deductible temporary differences which have not been recognised is €28.6m (2023: €33.4m) consisting mainly of

tax losses forward. €0.3m (2023: €0.1m) of the losses expire within 5 years while all other losses may be carried forward indefinitely.

No provision has been made for tax in respect of temporary differences arising from unremitted earnings of foreign operations as

there is no commitment to remit such earnings and no current plans to do so. Deferred tax liabilities of €29.9m (2023: €25.0m)

have not been recognised for withholding tax that would be payable on unremitted earnings of €598.0m (2023: €500.1m) in

certain subsidiaries.

290

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

8 Earnings Per Share

	2024	2023
	€m	€m
The calculations of earnings per share are based on the following:
Profit attributable to ordinary shareholders	665.5	640.3

	Number of	Number of
	shares (‘000)	shares (‘000)
	2024	2023
Weighted average number of ordinary shares for the calculation of basic earnings per share	182,224	181,773
Dilutive effect of share options	1,446	1,371
Weighted average number of ordinary shares for the calculation of diluted earnings per share	183,670	183,144

	2024	2023
	€ cent	€ cent
Basic earnings per share	365.2	352.3
Diluted earnings per share	362.3	349.6

Dilution is attributable to the weighted average number of share options outstanding at the end of the reporting period.

The number of options which are anti-dilutive and have therefore not been included in the above calculations is nil (2023: nil).

9 Goodwill

	2024	2023
	€m	€m
At 1 January	2,660.6	2,495.5
Additions relating to acquisitions (Note 23)	682.5	168.2
Net exchange movement	22.6	(3.1)
Carrying amount 31 December	3,365.7	2,660.6
At 31 December
Cost	3,433.4	2,728.3
Accumulated impairment losses	(67.7)	(67.7)
Carrying amount	3,365.7	2,660.6

Cash generating units

Goodwill acquired through business combinations is allocated, at acquisition, to CGUs that are expected to benefit from

synergies in that combination. The CGUs are the lowest level within the Group at which the associated goodwill is monitored for

internal management reporting purposes and are not larger than the operating segments determined in accordance with IFRS 8

Operating Segments.

A total of 12 (2023: 12) CGUs have been identified and these are analysed between the five business segments in the Group as set

out below. Assets and liabilities have been assigned to the CGUs on a reasonable and consistent basis.

291

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

9 Goodwill (continued)

		Cash generating units	Goodwill (€m)
	2024	2023	2024	2023
Insulated Panels	6	6	1,106.4	1,041.9
Insulation	1	1	904.5	633.3
Data Solutions	2	2	122.7	119.2
Roofing + Waterproofing	1	1	807.5	466.4
Light, Air + Water	2	2	424.6	399.8
Total	12	12	3,365.7	2,660.6

Significant goodwill amounts

Management has assessed that, in line with IAS 36 Impairment of Assets, there are three CGUs that are individually significant

(greater than 10% of total goodwill) that require additional disclosure and these are as follows:

		Panels		Insulation	Roofing +
		Joris Ide			Waterproofing
	2024	2023	2024	2023	2024	2023
Goodwill (€m)	397.1	364.3	904.5	633.3	807.5	466.4
Discount rate (%)	10.1	10.1	10.1	10.2	9.9	10.1
Excess of value-in-use over carrying amount (€m)	973.6	1,120.0	1,143.6	1,419.5	368.9	327.5

The goodwill allocated to these 3 CGUs (2023: 5 CGUs) accounts for 63% (2023: 78%) of the total carrying amount of €3,365.7m

(2023: €2,660.6m). The remaining goodwill balance of €1,256.6m (2023: €581.3m) is allocated across the other 9 CGUs (2023: 7

CGUs), none of which are individually significant. Similar assumptions and techniques are applied on the impairment testing of

these CGUs.

None of the individually significant CGUs are included in the “Sensitivity analysis” section as it is not considered reasonably

possible that there would be a change in the key assumptions such that the carrying amount would exceed value-in-use.

Consequently, no further disclosures have been provided for these CGUs.

Impairment testing

Goodwill acquired through business combinations has been allocated to the above CGUs for the purpose of impairment testing.

Impairment of goodwill occurs when the carrying value of the CGU is greater than the present value of the cash that it is expected

to generate (i.e. the recoverable amount). The Group reviews the carrying value of each CGU at least annually or more frequently

if there is an indication that a CGU may be impaired.

The recoverable amount of each CGU is determined from value-in-use calculations. The forecasts used in these calculations are

based on a 4 year financial plan approved by the Board of Directors, plus year 5 as forecasted by management, and specifically

excludes any future acquisition activity. The forecasts used for the Roofing + Waterproofing CGU are based on a 4 year financial

plan approved by the Board of Directors, plus years 5-10 as forecasted by management, and specifically excludes any future

acquisition activity. Roofing + Waterproofing is a relatively new CGU which was formed during 2022 and as a result, a longer

forecast period is required to reach a year that a long-term growth rate can be applied and is more akin to the existing CGUs

in order to calculate the terminal value. The forecast for the others include assumptions regarding future organic growth with

cash flows after year 5 assuming to continue in perpetuity at a general growth rate of 2% to 5% (Panels LATAM 5%), reflecting

the relevant CGU market growth. The use of cash flows in perpetuity is considered appropriate in light of the Group’s established

history of earnings growth and cash flow generation, its strong financial position and the nature of the industry in which the

Group operates.

The value in use calculation represents the present value of the future cash flows, including the terminal value, discounted at a

rate appropriate to each CGU. The real pre-tax discount rates used range from 9.8% to 23.3% (2023: 9.7% to 16.7%). These rates

are based on the Group’s estimated weighted average cost of capital, adjusted for risk, and are consistent with external sources

of information.

292

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

9 Goodwill (continued)

The cash flows and the key assumptions used in the value in use calculations are determined based on the historical performance

of the Group, its strong current financial position as well as management’s knowledge and expectation of future trends in the

industry. Expected future cash flows are, however, inherently uncertain and are therefore liable to material change over time.

The key assumptions used in the value in use calculations are subjective and include projected EBITDA margins, net cash flows,

discount rates used and the duration of the discounted cash flow model. Net cashflows incorporate the estimated capital

expenditure required to meet the Group’s Planet Passionate targets.

Sensitivity analysis

Sensitivity analysis was performed by reducing cash flows by 14%, increasing the discount rate by 11%, reducing the average

operating margin of each division by 14% and by reducing the long-term growth rate to 1%. Each test resulted in a positive

recoverable amount for each CGU under each approach. Management believes, therefore, that any reasonable change in any

of the key assumptions would not cause the carrying value of goodwill to exceed the recoverable amount, thereby giving rise to

an impairment.

10 Other Intangible Assets

2024	Customer	Patents &	Other	Total
	Relationships	Brands	Intangibles
	€m	€m	€m	€m
Cost
At 1 January	140.5	211.0	86.6	438.1
Acquisitions through business combinations (Note 23)	43.0	47.8	3.5	94.3
Additions	-	0.1	0.3	0.4
Net exchange difference	0.3	1.9	1.2	3.4
At 31 December	183.8	260.8	91.6	536.2
Accumulated amortisation
At 1 January	67.9	124.3	57.5	249.7
Charge for the year	19.4	18.3	6.9	44.6
Net exchange difference	0.4	1.5	0.8	2.7
At 31 December	87.7	144.1	65.2	297.0
Net Book Value as at 31 December 2024	96.1	116.7	26.4	239.2

2023	Customer	Patents &	Other	Total
	Relationships	Brands	Intangibles
	€m	€m	€m	€m
Cost
At 1 January	126.8	199.2	74.7	400.7
Acquisitions through business combinations (Note 23)	11.8	8.4	12.4	32.6
Additions	2.4	3.6	-	6.0
Net exchange difference	(0.5)	(0.2)	(0.5)	(1.2)
At 31 December	140.5	211.0	86.6	438.1
Accumulated amortisation
At 1 January	50.7	109.1	49.1	208.9
Charge for the year	17.7	15.2	8.8	41.7
Net exchange difference	(0.5)	-	(0.4)	(0.9)
At 31 December	67.9	124.3	57.5	249.7
Net Book Value as at 31 December 2023	72.6	86.7	29.1	188.4

Other intangibles relate primarily to technological know-how and order backlogs.

293

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

11 Property, Plant And Equipment

	Land and	Plant,	Motor	Total
	buildings	machinery	vehicles
		and other
		equipment
	€m	€m	€m	€m
As at 31 December 2024
Cost	1,280.4	2,934.8	90.6	4,305.8
Accumulated depreciation and impairment charges	(405.8)	(1,592.5)	(53.3)	(2,051.6)
Net carrying amount	874.6	1,342.3	37.3	2,254.2
At 1 January 2024, net carrying amount	690.2	848.4	28.6	1,567.2
Acquisitions through business combinations (Note 23)	103.7	395.6	5.5	504.8
Additions	104.7	244.9	16.5	366.1
Disposals	(12.3)	(12.1)	(0.6)	(25.0)
Reclassification	6.3	(5.1)	(1.2)	-
Depreciation charge for year	(25.3)	(130.7)	(11.1)	(167.1)
Impairment charge for year	(0.2)	(3.7)	-	(3.9)
Effect of movement in exchange rates	7.5	5.0	(0.4)	12.1
At 31 December 2024, net carrying amount	874.6	1,342.3	37.3	2,254.2

	Land and	Plant,	Motor	Total
	buildings	machinery	vehicles
		and other
		equipment
	€m	€m	€m	€m
As at 31 December 2023
Cost	1,024.6	2,113.2	71.0	3,208.8
Accumulated depreciation and impairment charges	(334.4)	(1,264.8)	(42.4)	(1,641.6)
Net carrying amount	690.2	848.4	28.6	1,567.2
At 1 January 2023, net carrying amount	657.2	757.8	22.9	1,437.9
Acquisitions through business combinations (Note 23)	5.0	36.2	0.2	41.4
Additions	51.2	169.5	13.0	233.7
Disposals	(0.3)	(2.0)	(0.6)	(2.9)
Reclassification	5.3	(6.5)	1.2	-
Depreciation charge for year	(22.5)	(103.9)	(8.0)	(134.4)
Impairment charge for year	(0.3)	(2.6)	-	(2.9)
Effect of movement in exchange rates	(5.4)	(0.1)	(0.1)	(5.6)
At 31 December 2023, net carrying amount	690.2	848.4	28.6	1,567.2

Included in land and buildings and plant, machinery and other equipment were amounts of €66.2m and €176.5m respectively

(2023: of €15.8m and €117.1m) relating to expenditure for assets in the course of construction. These assets have not yet

been depreciated.

The Group has no material investment properties and hence no property assets are held at fair value.

No property, plant or equipment have been pledged as security for liabilities entered into by the Group.

294

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

12 Financial Assets

	2024	2023
	€m	€m
Equity investments designated as FVOCI
At 1 January	128.4	93.6
Additions	23.4	22.2
Acquisitions through business combinations (Note 23)	0.2	-
Step up to subsidiary	(125.2)	-
Fair value remeasurement	(2.7)	12.5
Effect of movement in exchange rates	(0.2)	0.1
At 31 December	23.9	128.4

In October 2024, Kingspan acquired a controlling interest in Nordic Waterproofing Holding AB (Nordic Waterproofing) and

from this date has accounted for Nordic Waterproofing as a subsidiary and this has been disclosed in the Business Combination

note (see Note 23). Nordic Waterproofing is a publicly listed company on the Nasdaq Stockholm and is a market leader in

waterproofing products and services for the protection of buildings and infrastructure.

Investments in Subsidiaries

	2024	2023
	€m	€m
Company
At 1 January	2,118.4	1,238.5
Additions	201.4	865.7
Share options and awards	8.2	14.2
At 31 December	2,328.0	2,118.4

The Company increased its investment in Kingspan Holdings Limited during the year.

The share options and awards addition reflect the cost of share-based payments attributable to employees of subsidiary

undertakings, which are treated as capital contributions by the Company. The carrying value of investments is reviewed at each

reporting date and there were no indicators of impairment.

13 Investment In Associates

	2024	2023
	€m	€m
Interest in Associates accounted for using the equity method
At 1 January	-	-
Acquisitions through business combinations (Note 23)	11.9	-
Additions	1.0	-
Share of profit after tax	1.7	-
Dividends	(0.3)	-
Effect of movement in exchange rates	0.2	-
At 31 December	14.5	-

295

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

14 Inventories

	2024	2023
	€m	€m
Raw materials and consumables	869.5	732.4
Work in progress	55.4	40.1
Finished goods	452.1	359.5
Inventory impairment allowance	(179.9)	(167.7)
At 31 December	1,197.1	964.3

A total of €4.8bn (2023: €4.7bn) of inventories was included in the Consolidated Income Statement as an expense. This includes

a net income statement charge of €22.8m (2023: €18.6m) arising on the inventory impairment allowance. Inventory impairment

allowance levels are continuously reviewed by management and revised where appropriate, taking account of the latest available

information on the recoverability of carrying amounts.

No inventories have been pledged as security for liabilities entered into by the Group.

15 Trade And Other Receivables

	2024	2023
	€m	€m
Amounts falling due within one year:
Trade receivables, gross	1,264.6	1,163.2
Expected credit loss allowance	(116.4)	(111.4)
Trade receivables, net	1,148.2	1,051.8
Other receivables	159.0	133.6
Prepayments	77.0	68.8
Value added tax	6.0	-
	1,390.2	1,254.2

The maximum exposure to credit risk for trade and other receivables at the reporting date is their carrying amount.

The Group uses an allowance matrix to measure Expected Credit Loss (ECL) of trade receivables from customers. The simplified

approach has been adopted and this gives rise to an ECL of €116.4m in 2024 (2023: €111.4m). This is presented in more detail in

Note 20.

Company

	2024	2023
	€m	€m
Amounts falling due within one year:
Amounts owed by group undertakings	18.3	165.9
	18.3	165.9

The amounts due from group undertakings are unsecured, interest free and are repayable on demand.

296

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

16 Trade And Other Payables

	2024	2023
	€m	€m
Current
Trade payables	726.3	610.9
Accruals	630.5	524.7
Deferred income and customer prepayments	142.1	140.1
Income tax & social welfare	61.3	51.1
Value added tax	-	19.3
	1,560.2	1,346.1

Deferred income primarily relates to service and maintenance and projected related revenue and is primarily short-term.

The directors consider that the carrying amount of trade and other payables approximates to their fair value.

Company

	2024	2023
	€m	€m
Current
Amounts owed to group undertakings	0.1	0.1
Payables	0.5	0.2
	0.6	0.3

The amounts due to group undertakings are unsecured, interest free and are repayable on demand.

17 Leases

Right of use asset

	Land and	Plant,	Motor	Total
	buildings	machinery	vehicles	2024
		and other
		equipment
	€m	€m	€m	€m
At 1 January 2024	158.6	22.9	37.7	219.2
Additions	17.1	5.8	26.5	49.4
Arising on acquisitions (Note 23)	20.2	3.1	2.2	25.5
Remeasurement	12.5	0.3	0.6	13.4
Terminations	(7.6)	(0.1)	(1.4)	(9.1)
Depreciation charge for the year	(35.6)	(7.7)	(21.5)	(64.8)
Reclassification	(0.3)	-	0.3	-
Effect of movement in exchange rates	2.2	(0.3)	0.3	2.2
At 31 December 2024	167.1	24.0	44.7	235.8

297

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

17 Leases (continued)

	Land and	Plant,	Motor	Total
	buildings	machinery	vehicles	2023
		and other
		equipment
	€m	€m	€m	€m
At 1 January 2023	154.3	21.7	29.3	205.3
Additions	17.9	7.3	26.4	51.6
Arising on acquisitions (Note 23)	(6.8)	1.5	0.2	(5.1)
Remeasurement	33.3	0.5	0.3	34.1
Terminations	(7.5)	(0.1)	(0.5)	(8.1)
Depreciation charge for the year	(30.6)	(7.6)	(18.3)	(56.5)
Reclassification	(0.1)	-	0.1	-
Effect of movement in exchange rates	(1.9)	(0.4)	0.2	(2.1)
At 31 December 2023	158.6	22.9	37.7	219.2

Lease liability

	2024	2023
	€m	€m
At 1 January	219.8	196.8
Additions	48.1	47.9
Arising on acquisitions (Note 23)	26.2	5.5
Remeasurement	13.2	34.4
Terminations	(9.9)	(8.2)
Payments	(68.7)	(60.5)
Interest	7.2	6.0
Effect of movement in exchange rates	2.7	(2.1)
At 31 December	238.6	219.8
Split as follows:
Current liability	63.9	48.0
Non-current liability	174.7	171.8
At 31 December	238.6	219.8

Expenses of €17.4m (2023: €13.3m) relating to short-term leases, leases of low-value assets and variable lease payments were

recognised in the Consolidated Income Statement.

18 Interest Bearing Loans And Borrowings

	2024	2023
	€m	€m
Current financial liabilities
Private placements	42.5	193.0
Bank loans (unsecured)	154.9	5.3
Lease obligations per banking covenants	0.3	2.3
	197.7	200.6

298

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

18 Interest Bearing Loans And Borrowings (continued)

	2024	2023
	€m	€m
Non-current financial liabilities
Private placements	1,367.6	1,398.9
Public bonds	750.0	-
Bank loans (unsecured)	256.6	310.2
Lease obligations per banking covenants	11.1	8.5
	2,385.3	1,717.6

Analysis of Net debt

	2024	2023
	€m	€m
Cash and cash equivalents	1,005.4	938.7
Derivatives financial instruments	4.6	-
Current borrowings	(197.7)	(200.6)
Non-current borrowings	(2,385.3)	(1,717.6)
Total Net debt	(1,573.0)	(979.5)

The Group’s core funding is provided by seven (2023: seven) private placement loan notes; one (2023: one) USD private placement

totalling $200m (2023: $200m) maturing in December 2028 and six (2023: six) EUR private placements totalling €1.2bn (2023:

€1.4bn) which mature in tranches between January 2025 and December 2032. The notes have a weighted average maturity of 4.5

years (2023: 5.0 years).

In October 2024, the Group established a new European Medium Term Note programme and boosted liquidity with a debut public

bond in the European market of €750m for 7 years at a fixed annual rate of 3.5%.

The primary bank debt facility is a €800m revolving credit facility, which was undrawn at year end, and which matures in May

2027.

During the year, the Group repaid part (€150m) of a 2022 acquisition related financing facility, with the remainder (€150m) to be

repaid in April 2025.

Included in cash at bank and in hand are overdrawn positions of €1,679.9m (2023: €1,789.1m). These balances form part of

a notional cash pool arrangement and are netted against cash balances of €1,698.9m (2023: €1,805.9m). The net cash pool

balance of €19.0m (2023: €16.8m) is included in the cash and cash equivalents balance above. There is a legal right of offset

between these balances and the balances are physically settled on a regular basis.

More details of the Group’s loans and borrowings are set out in Note 20.

Net debt, which is an Alternative Performance Measure, is stated net of interest rate and currency hedges which relate to hedges

of debt. Foreign currency derivative assets of €0.1m (2023: €nil) and foreign currency derivative liabilities of €nil (2023: €0.2)

which are used for transactional hedging are not included in the definition of net debt. Lease liabilities recognised due to the

implementation of IFRS 16 and deferred contingent consideration have also been excluded from the calculation of net debt which

is consistent with the terms and conditions of the covenants as set out in the Group’s external borrowing arrangements.

299

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

19 Deferred Contingent Consideration

	2024	2023
	€m	€m
At 1 January	229.1	187.1
Deferred contingent consideration arising on acquisitions (Note 23)	127.5	7.3
Movement in deferred contingent consideration arising from fair value adjustment	(16.1)	0.3
Put liability arising on acquisitions	148.8	22.9
Movement in put liability arising from fair value adjustment	35.0	10.2
Amounts paid	(1.1)	(6.6)
Effect of movement in exchange rates	(25.6)	7.9
At 31 December	497.6	229.1
Split as follows:
Current liabilities	345.5	190.2
Non-current liabilities	152.1	38.9
	497.6	229.1
Analysed as follows:
Deferred contingent consideration	125.8	16.2
Put option liability	371.8	212.9
	497.6	229.1

The put liability arising on acquisitions relates principally to the acquisitions of Steico, Villalba, TreeTops, IB Roofing, Fatek and

Solen. The deferred contingent consideration arising on acquisitions primarily relates to the acquisition of Steico and TreeTops.

For each acquisition for which deferred contingent consideration has been provided, an annual review takes place to evaluate

if the payment conditions are likely to be met. For the purposes of the fair value assessments all of the put option liabilities

are valued using the option price formula in the shareholders agreement and the most recent financial projections. These are

classified as unobservable inputs. The significant unobservable inputs used in the fair value measurements and the quantitative

sensitivity analysis are shown in the table below:

Type	Valuation technique	Significant		Sensitivity of the input to the fair
		unobservable inputs		value
Deferred contingent	Discounted cashflow method	•	Risk adjusted	•	A 10% decrease in the risk adjusted
consideration	The net present value of the expected	discount rates of		discount rate would result in an
	payment is calculated by using a risk	between 0.0% and		increase in the fair value of the
	adjusted discount rate where material.		3.6%.	deferred contingent consideration of
	The expected payments are valued	•	Forecast		€0.1m.
	using the earn out formula in the	performance		•	A 5% increase in the assumed
	shareholders’ agreement and the most	in excess of a		profitability of the acquired entities
	recent financial projections.	predetermined		would result in an increase in the
		base target.		fair value of the deferred contingent
				consideration of €17.8m.
Put option liabilities	Discounted cashflow method	•	Risk adjusted	•	A 10% decrease in the risk adjusted
	The net present value of the expected	discount rates of		discount rate would result in an
	payment is calculated by using a risk	between 2.8% and		increase in the fair value of the put
	adjusted discount rate. The expected	15.6%.		option liabilities of €4.8m.
	payments are valued using the option	•	EBITDA multiples of	•	A 5% increase in the assumed
	price formula in the shareholders’		between 5.0 and		profitability of the acquirees would
	agreement and the most recent		10.2.		result in an increase in the fair value
	financial projections.				of the put option liabilities of €17.7m.

300

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

19 Deferred Contingent Consideration (continued)

The amount of the deferred contingent consideration and put liability that have been recognised are arrived at by the application

of a range of outcomes and associated probabilities in order to determine the carrying amounts.

Liabilities in the range of €3.7m (2023: €nil) to €125.8m (2023: €16.2m) could arise with respect to potential deferred contingent

consideration obligations and €nil (2023: €nil) to €371.8m (2023: €212.9m) with respect to potential put option obligations.

Further detail has been presented below in relation to the principal put option liabilities and deferred contingent consideration.

The put option in the shareholders’ agreement with non-controlling shareholders of Isoeste has been exercisable since 2023. The

undiscounted expected cash outflow is estimated to be €145.0m (2023: €167.8m).

The put option in the shareholders’ agreement with non-controlling shareholders of Steico can be exercised in 2025. The

undiscounted expected cash outflow is estimated to be €68.6m (2023: N/A).

The put option in the shareholders’ agreement with non-controlling shareholders of PanelMET has been exercisable since 2022. The

undiscounted expected cash outflow is estimated to be €13.8m (2023: €14.8m).

The put option in the shareholders’ agreement with non-controlling shareholders of Kingspan Jindal has been exercisable since

2022. The undiscounted expected cash outflow is estimated to be €27.8m (2023: €16.6m).

The put option in the shareholders’ agreement with non-controlling shareholders of Q-nis can be exercised in 2029. The

undiscounted expected cash outflow is estimated to be €43.7m (2023: €24.2m).

The put option in the shareholders’ agreement with non-controlling shareholders of TreeTops can be exercised in 2028. The

undiscounted expected cash outflow is estimated to be €41.1m (2023: N/A).

The put option in the shareholders’ agreement with non-controlling shareholders of Villalba can be exercised in 2028. The

undiscounted expected cash outflow is estimated to be €31.5m (2023: N/A).

In relation to the put options listed above, call options also rest over the remaining shareholding held by non-controlling interests,

which are exercisable by the Group in a very limited range of circumstances. No value has been attributed to these call options.

The deferred contingent consideration in respect of Steico becomes exercisable in 2025. The undiscounted expected cash outflow

is estimated to be €82.9m (2023: N/A).

20 Financial Risk Management And Financial Instruments

Financial Risk Management

In the normal course of business, the Group and Company have exposure to a variety of financial risks, including foreign currency

risk, interest rate risk, liquidity risk and credit risk. The Group’s and Company’s focus is to understand these risks and to put in

place policies that minimise the economic impact of an adverse event on the Group’s performance. Meetings are held on a

regular basis to review the result of the risk assessment, approve recommended risk management strategies and monitor the

effectiveness of such policies.

The Group’s and Company’s risk management strategies include the usage of derivatives (other than for speculative

transactions), principally forward exchange contracts, interest rate swaps, and cross currency interest rate swaps.

Liquidity risk

In addition to the high level of free cash flow, the Group operates a prudent approach to liquidity management using a mixture of

long-term debt together with short-term debt and cash and cash equivalents to enable it to meet its liabilities when due.

The Group’s core funding is provided by a number of private placement loan notes totalling €1,410.1m (2023: €1,591.9m). The

notes have a weighted average maturity of 4.5 years (2023: 5 years).

In October 2024, the Group established a new European Medium Term Note programme and boosted liquidity with a debut public

bond in the European market of €750m for 7 years at a fixed annual rate of 3.5%. The primary bank debt facility is a €800m

revolving credit facility, which was undrawn at year end, and which matures in May 2027. During the year, the Group repaid part

(€150m) of a 2022 acquisition related financing facility, with the remainder (€150m) to be repaid in April 2025.

301

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

20 Financial Risk Management And Financial Instruments (continued)

Both the private placements and the banking facilities (revolving credit facility and one additional banking facility) have an

interest cover test (EBITDA: Net interest must not be less than 4 times) and a net debt test (Net debt: EBITDA must not exceed

3.5 times). These covenant tests have been met for the covenant test period to 31 December 2024.

The Group also has in place a number of uncommitted bilateral facilities including working capital facilities totalling €222.1m

(2023: €212.8m) and are supported by a Group guarantee. Core funding arrangements arise from a wide and varied number of

institutions and, as such, there is no significant concentration of liquidity risk.

The following are the carrying amounts and contractual maturities of financial liabilities (including estimated interest payments):

As at 31 December 2024	Carrying	Contractual	Within 1	Between	Between	Greater
	amount	cash flow	year	1 and 2	2 and 5	than 5
	2024			years	years	years
	€m	€m	€m	€m	€m	€m
Non derivative financial instruments
Bank loans	411.5	433.4	168.3	259.3	3.7	2.1
Private placement loan notes	1,410.1	1,566.9	76.5	194.2	818.5	477.7
Public bonds	750.0	933.8	26.3	26.3	78.8	802.4
Lease obligations per banking covenants	11.4	11.4	0.3	5.0	4.9	1.2
Lease liabilities	238.6	258.3	67.8	54.6	81.4	54.5
Trade and other payables	1,418.1	1,418.1	1,418.1	-	-	-
Deferred contingent consideration	497.6	540.6	364.3	12.6	163.7	-
Derivative financial liabilities/(assets)
Foreign exchange forwards used for hedging:
Carrying value liabilities	-	-	-	-	-	-
Carrying value assets	(4.7)	-	-	-	-	-
- outflow	-	168.4	168.4	-	-	-
- inflow	-	(173.1)	(173.1)	-	-	-

As at 31 December 2023	Carrying	Contractual	Within 1	Between	Between	Greater
	amount	cash flow	year	1 and 2	2 and 5	than 5
	2023			years	years	years
	€m	€m	€m	€m	€m	€m
Non derivative financial instruments
Bank loans	315.5	333.6	19.4	308.5	4.6	1.1
Private placement loan notes	1,591.9	1,784.6	230.0	76.3	666.6	811.7
Lease obligations per banking covenants	10.8	10.8	2.3	1.9	5.8	0.8
Lease liabilities	219.8	244.0	54.7	45.9	79.2	64.2
Trade and other payables	1,206.0	1,206.0	1,206.0	-	-	-
Deferred contingent consideration	229.1	244.1	202.1	15.1	2.7	24.2
Derivative financial liabilities/(assets)
Foreign exchange forwards used for hedging:
Carrying value assets	-	-	-	-	-	-
Carrying value liabilities	0.2	-	-	-	-	-
- outflow	-	4.4	4.4	-	-	-
- inflow	-	(4.2)	(4.2)	-	-	-

For provisions, the carrying amount represents the Group’s best estimate of the expected future outflows. As it does not represent

a contractual liability at the year end, no amount has been included as a contractual cash flow.

302

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

20 Financial Risk Management And Financial Instruments (continued)

Deferred contingent consideration, which includes any put option liabilities, is valued using the relevant agreed multiple of the

expected future EBITDA in each acquired business which is appropriately discounted using a risk-adjusted discount rate. The

estimated fair value of deferred contingent consideration would decrease if EBITDA was lower or if the risk adjusted discount rate

was higher. The range of outcomes are set out in Note 19.

The actual future cash flows could be different from the amounts included in the tables above, if the associated obligations

were to become repayable on demand as a result of non-compliance with covenants or other contractual terms. No such non-

compliance is envisaged.

Market Risks

Foreign exchange risk

There are two types of foreign currency risk to which the Group is exposed, namely transaction risk and translation risk. The

objective of the Group’s foreign currency risk management strategy is to manage and control market risk exposures within

acceptable parameters. As set out below the Group uses derivatives to manage foreign exchange risk. Transactions involving

derivatives are carried out in accordance with the Treasury policy. The Group seeks to apply hedge accounting, where practicable,

to manage volatility in profit or loss.

Transaction risk

Apart from transaction risk on debt, this arises where operating units have input costs or sales in currencies other than their

functional currencies. These exposures are internally hedged as far as possible. Group policy is to hedge up to a maximum of 75%

of a forecast exposure. Material exposures are hedged on a rolling 12 months basis. The Group’s principal exposure relates to GBP

and USD, with less significant exposure to the Canadian dollar.

In addition, where operating entities carry monetary assets and liabilities at year end denominated other than in their functional

currency, their translation at the year end rates of exchange into their functional currency will give rise to foreign currency gains

and losses. The Group seeks to manage these gains and losses to net to nil.

Based on current cash flow projections for the businesses to 31 December 2025, it is estimated that the Group is long GBP55m

(2023: long GBP24m) and long US$50m (2023: long US$35m). At 31 December 2024 these amounts were unhedged.

Translation risk

This exists due to the fact that the Group has operations whose functional currency is not the Euro, the Group’s presentational

currency. Changes in the exchange rate between the reporting currencies of these operations and the Euro, have an impact on

the Group’s consolidated reported result. For 2024, the impact of changing currency rates versus Euro compared to the average

2023 rates was positive €93.0m (2023: negative €19.0m). The key drivers of the change year on year are the movements in

GBP and USD. In common with many other international groups, the Group does not currently seek to externally hedge its

translation exposure.

Sensitivity analysis for primary currency risk

A 10% volatility of the EUR against GBP and USD in respect of transaction risk in the reporting entities functional currencies would

impact reported after tax profit by €10m (2023: €6m) and equity by €10m (2023: €6m).

Interest rate risk

The Group has an exposure to movements in interest rates on its debt portfolio, and on its cash and cash equivalent balances and

derivatives. The Group policy is to ensure that at least 40% of its debt is fixed rate.

In respect of interest bearing loans and borrowings, the following table indicates the effective average interest rates at the

year end and the periods over which they mature. Interest on interest bearing loans and borrowings classified as floating rate is

repriced at intervals of less than one year. The table further analyses interest bearing loans and borrowings by currency and fixed/

floating mix.

303

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

20 Financial Risk Management And Financial Instruments (continued)

As at 31 December 2024	Weighted average	Total	At fixed	At floating	Under 5	Over
	effective interest rate		interest rate	interest rate	years	5 years
		€m	€m	€m	€m	€m
Bank loans	0.69%	411.5	23.1	388.4	409.5	2.0
Loan notes	1.34%	1,410.1	1,410.1	-	946.6	463.5
Public bonds	1.02%	750.0	750.0	-	-	750.0
		2,571.6	2,183.2	388.4	1,356.1	1,215.5

	Total	At fixed	At floating
		interest rate	interest rate
	€m	€m	€m
Euro	2,379.5	1,991.1	388.4
USD	192.1	192.1	-
Other	-	-	-
	2,571.6	2,183.2	388.4

The weighted average maturity of debt for wholly owned entities is 5 years as at 31 December 2024 (2023: 4.4 years).

As at 31 December 2023	Weighted average	Total	At fixed interest	At floating	Under 5	Over
	effective interest rate		rate	interest rate	years	5 years
		€m	€m	€m	€m	€m
Bank loans	4.68%	315.5	15.5	300.0	314.3	1.2
Loan notes	2.34%	1,591.9	1,591.9	-	809.4	782.5
		1,907.4	1,607.4	300.0	1,123.7	783.7

	Total	At fixed interest	At floating
		rate	interest rate
	€m	€m	€m
Euro	1,726.5	1,426.5	300.0
USD	180.9	180.9	-
Other	-	-	-
	1,907.4	1,607.4	300.0

An increase or decrease of 100 basis points in each of the applicable rates and interest rate curves would impact reported after tax

profit by €6.1m (2023: €2.7m) and equity by €6.1m (2023: €2.7m) as there are floating rate borrowings in place and cash on the

balance sheet.

Credit risk

Credit risk encompasses the risk of financial loss to the Group of counterparty default in relation to any of its financial assets. The

Group’s maximum exposure to credit risk is represented by the carrying value of each financial asset:

	2024	2023
	€m	€m
Cash & cash equivalents	1,005.4	938.7
Trade receivables	1,264.6	1,163.2
Derivative financial assets	4.7	-

304

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

20 Financial Risk Management And Financial Instruments (continued)

Trade receivables arise from a wide and varied customer base spread across various activities, end users and geographies, and as

such there is no significant concentration of credit risk. The Group’s credit risk management policy in relation to trade receivables

involves periodically assessing the financial reliability of customers, taking into account their financial position, past experience

and other factors. The utilisation of credit limits is regularly monitored and a significant element of credit risk is covered by credit

insurance or other forms of collateral such as letters of credit or bank guarantees.

At the year end, the Group was carrying a receivables book of €1,148.2m (2023: €1,051.8m) expressed net of provision for default

in payment. This represents a net risk of 13% (2023: 13%) of sales. Of these net receivables, approximately 63% (2023: 60%) were

covered by credit insurance or other forms of collateral such as letter of credit and bank guarantees.

At 31 December, the exposure to credit risk for trade receivables by geographic region was as follows:

	2024	2023
	€m	€m
Western & Southern Europe	612.1	608.8
Central & Northern Europe	257.3	204.5
Americas	279.6	248.7
Rest of World	115.6	101.2
	1,264.6	1,163.2

At 31 December, the exposure to credit risk for trade receivables by customer type was as follows:

	2024	2023
	€m	€m
Insulated Panels customers	719.8	689.5
Insulation customers	220.9	204.3
Other customers	323.9	269.4
	1,264.6	1,163.2

The Group uses an allowance matrix to measure Expected Credit Loss (ECL) of trade receivables from customers. The ECL

simplified approach has been adopted.

Loss rates are calculated using a roll rate method based on the probability of a receivable progressing through successive chains

of non-payment to write-off. The rates are calculated at a business unit level which reflects the risks associated with geographic

region, age, mix of customer relationship and type of product purchased. The identifiable loss pertaining to cash positions

is immaterial.

The following table provides the information about the exposure to credit risk and ECL for trade receivables as at

31 December 2024.

	Weighted	Gross	Loss
	average loss	carrying	allowance
	rate	amount
	%	€m	€m
Current (not past due)	0%	873.1	4.1
1-30 days past due	2%	212.9	4.5
31-60 days past due	10%	52.9	5.5
61-90 days past due	36%	18.4	6.7
More than 90 days past due	89%	107.3	95.6
		1,264.6	116.4

305

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

20 Financial Risk Management And Financial Instruments (continued)

The following table provides the information about the exposure to credit risk and ECL for trade receivables as at

31 December 2023.

	Weighted	Gross	Loss
	average loss	carrying	allowance
	rate	amount
	%	€m	€m
Current (not past due)	1%	800.8	7.3
1-30 days past due	3%	199.0	6.2
31-60 days past due	7%	41.6	3.1
61-90 days past due	18%	21.4	3.9
More than 90 days past due	91%	100.4	90.9
		1,163.2	111.4

Loss rates are based on actual credit loss experience over an appropriate diverse sample of trading periods. Trade receivables are

written off when there is no reasonable expectation of recovery.

Movements in the allowance for impairment in respect of trade receivables

The movement in the allowance for impairment in respect of trade receivables during the year was as follows:

	2024	2023
	€m	€m
Balance at 1 January	111.4	125.5
Arising on acquisition	4.0	3.2
Written off during the year	(6.4)	(13.5)
Net remeasurement of loss allowance	4.7	(3.4)
Effect of movement in exchange rates	2.7	(0.4)
At 31 December	116.4	111.4

There are no material trade receivables written off during 2024 (2023: €nil) which are still subject to enforcement activity.

The increase in the expected credit loss allowance during 2024 reflects the increase in the gross carrying amount of

trade receivables.

Cash & cash equivalents

On the Group’s cash and cash equivalents and derivatives, counterparty risk is managed by dealing with banks that have a

minimum credit rating and by spreading business across a portfolio of 10 relationship banks (2023: 10).

306

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

20 Financial Risk Management And Financial Instruments (continued)

Financial instruments by category

The carrying amount of financial assets presented in the Consolidated Statement of Financial Position relate to the following

measurement categories as defined in IFRS 9:

	Financial	Assets at	Derivatives	Total
	asset at	amortised	designated
	fair value	cost	as hedging
	through OCI		instrument
	€m	€m	€m	€m
2024
Current:
Trade receivables, net	-	1,148.2	-	1,148.2
Other receivables	-	165.0	-	165.0
Cash and cash equivalents	-	1,005.4	-	1,005.4
Derivative financial instruments	-	-	4.7	4.7
	-	2,318.6	4.7	2,323.3
Non-current:
Financial asset	23.9	-	-	23.9
	23.9	-	-	23.9

	Financial	Assets at	Derivatives	Total
	asset at	amortised	designated
	fair value	cost	as hedging
	through OCI		instrument
	€m	€m	€m	€m
2023
Current:
Trade receivables, net	-	1,051.8	-	1,051.8
Other receivables	-	133.6	-	133.6
Cash and cash equivalents	-	938.7	-	938.7
Derivative financial instruments	-	-	-	-
	-	2,124.1	-	2,124.1
Non-current:
Financial asset	128.4	-	-	128.4
	128.4	-	-	128.4

It is considered that the carrying amounts of the above financial assets approximate their fair values.

307

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

20 Financial Risk Management And Financial Instruments (continued)

The carrying amounts of financial liabilities presented in the Consolidated Statement of Financial Position relate to the following

measurement categories as defined in IFRS 9:

	Financial	Financial	Financial	Derivatives	Total
	liabilities at	liabilities	liabilities at	designated
	fair value	measured at	fair value	as hedging
	through profit	amortised cost	though OCI	instrument
	or loss
	€m	€m	€m	€m	€m
2024
Current:
Borrowings	-	197.7	-	-	197.7
Lease liabilities	-	63.9	-	-	63.9
Trade payables	-	726.3	-	-	726.3
Derivative financial instruments	-	-	-	-	-
Accruals	-	630.5	-	-	630.5
Deferred contingent consideration	103.2	-	242.3	-	345.5
	103.2	1,618.4	242.3	-	1,963.9
Non-current:
Borrowings	-	2,385.3	-	-	2,385.3
Lease liabilities	-	174.7	-	-	174.7
Deferred contingent consideration	22.7	-	129.4	-	152.1
	22.7	2,560.0	129.4	-	2,712.1

	Financial	Financial	Financial	Derivatives	Total
	liabilities at fair	liabilities	liabilities at fair	designated
	value through	measured at	value though	as hedging
	profit or loss	amortised cost	OCI	instrument
	€m
		€m	€m	€m	€m
2023
Current:
Borrowings	-	200.6	-	-	200.6
Lease liabilities	-	48.0	-	-	48.0
Trade payables	-	610.9	-	-	610.9
Derivative financial instruments	-	-	-	0.2	0.2
Accruals	-	524.7	-	-	524.7
Deferred contingent consideration	-	-	190.2	-	190.2
	-	1,384.2	190.2	0.2	1,574.6
Non-current:
Borrowings	-	1,717.6	-	-	1,717.6
Lease liabilities	-	171.8	-	-	171.8
Deferred contingent consideration	16.2	-	22.7	-	38.9
	16.2	1,889.4	22.7	-	1,928.3

Fair value hierarchy

Financial assets and liabilities recognised at fair value are analysed between those based on quoted prices in active markets

for identical assets or liabilities (Level 1), those involving inputs other than quoted prices that are observable for the assets

or liabilities, either directly or indirectly (Level 2); and those involving inputs for the assets or liabilities that are not based on

observable market data (Level 3) as set out in Note 19.

308

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

20 Financial Risk Management And Financial Instruments (continued)

Normally, the derivatives entered into by the Group are not traded in active markets. The fair values of these contracts are

estimated using a valuation technique that maximises the use of observable market inputs, e.g. market exchange and interest

rates (Level 2). All derivatives entered into by the Group are included in Level 2 and consist of foreign currency forward contracts,

interest rate swaps and cross currency interest rate swaps.

	As at 31 December 2024			As at 31 December 2023
	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
	€m	€m	€m	€m	€m	€m
Financial Assets
Equity investments	-	23.9	-	110.8	17.6	-
Foreign exchange contracts for hedging	-	4.7	-	-	-	-
Financial Liabilities
Deferred contingent consideration	-	-	125.8	-	-	16.2
Put option liabilities	-	-	371.8	-	-	212.9
Foreign exchange contracts for hedging	-	-	-	-	0.2	-

The principal movements in Level 3 liabilities in 2024 are set out in the table below:

	Balance	Settlement	Fair value	Arising on	Translation	Balance
	1 January		movement	acquisition	adjustment	31 December
	2024					2024
	€m	€m	€m	€m	€m	€m
Deferred contingent consideration	16.2	(1.1)	(16.1)	127.5	(0.7)	125.8
Put option liabilities	212.9	-	35.0	148.8	(24.9)	371.8
	229.1	(1.1)	18.9	276.3	(25.6)	497.6

The principal movements in Level 3 liabilities in 2023 are set out in the table below:

	Balance	Settlement	Fair value	Arising on	Translation	Balance
	1 January		movement	acquisition	adjustment	31 December
	2023					2023
	€m	€m	€m	€m	€m	€m
Deferred contingent consideration	15.7	(6.6)	0.3	7.3	(0.5)	16.2
Put option liabilities	171.4	-	10.2	22.9	8.4	212.9
	187.1	(6.6)	10.5	30.2	7.9	229.1

During the year ended 31 December 2024, the put liabilities were reassessed based on the most recent available financial

information. There were no other significant changes in the business or economic circumstances that affect the fair value of the

remaining financial assets and liabilities, no reclassifications and no transfers between levels of the fair value hierarchy used in

measuring the fair value of the financial instruments.

Except as detailed below, it is considered that the carrying amounts of financial assets and financial liabilities recognised at

amortised cost approximate their fair values. The fair value of the Level 2 financial liabilities below has been determined through

the use of external market data available publicly.

309

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

20 Financial Risk Management And Financial Instruments (continued)

			As at 31 December 2024			As at 31 December 2023
	Carrying	Fair Value	Level	Carrying	Fair Value	Level
	amount			amount
	€m	€m		€m	€m
Private placements	1,410.1	1,426.5	2	1,591.9	1,594.8	2
Public bonds	750.0	817.3	2	-	-	-

Capital Management Policies and Procedures

The Group employs a combination of debt and equity to fund its operations. As at 31 December the total capital employed in the

Group was as follows:

	2024	2023
	€m	€m
Equity	4,590.8	3,947.8
Add back accumulated amortisation of intangible assets not fully amortised	139.2	130.9
Net debt	1,573.0	979.5
Total Capital Employed	6,303.0	5,058.2

The Board’s objective when managing capital is to preserve a strong capital base to maintain the confidence of investors, creditors

and the market. The Board monitors the return on capital (defined as total shareholders’ equity plus net debt and adjusted

for cumulative amortisation of intangibles not fully amortised), and targets a return in excess of 20% for investments over the

medium-term.

The Board seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and

the advantages and security afforded by a sound capital position. The Group actively manages foreign currency and interest

rate exposure, as well as actively managing the net asset position, in order to create bottom line value. This necessitates the

development of a methodology to optimise the allocation of financial resources on the one hand and the return on capital on

the other.

The Board closely monitors externally imposed capital restrictions which are present due to covenants within the Group’s core

banking facilities.

There were no material changes to the Group’s approach to capital management during the year.

21 Provisions For Liabilities

	2024	2023
	€m	€m
Guarantees and warranties
At 1 January	183.9	181.5
Arising on acquisitions (Note 23)	5.0	6.3
Provided during year	67.4	71.4
Claims paid	(57.8)	(47.8)
Provisions released	(35.9)	(26.3)
Effect of movement in exchange rates	1.7	(1.2)
At 31 December	164.3	183.9
Current liability	55.9	70.2
Non-current liability	108.4	113.7
	164.3	183.9

310

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

21 Provisions For Liabilities (continued)

The Group manufactures a wide range of insulation and related products for use primarily in the construction sector. Some

products carry formal guarantees of satisfactory performance of varying periods following their purchase by customers and a

provision is carried in respect of the expected costs of settling warranty, and guarantee claims which arise. The Group in the

course of its operations can be party to claims, litigation or enforcement actions. Both the number of claims and the cost of

settling the claim are sensitive to change. Where a performance obligation exists, in most cases, a sufficiently reliable estimate

can be made based on a range of possible outcomes and a provision has been recognised. In some cases where a performance

obligation exists but the extent and cost of settling a claim or potential claim or enforcement action cannot be measured with

sufficient reliability, no provision is recognised until such a reliable estimate can be made. Provisions are reviewed by management

on a regular basis and adjusted to reflect the current best estimate of the economic outflow. If it is no longer probable that an

outflow of economic benefits will be required, the related provision is reversed.

For the non-current element of the provision, the Group anticipates that these will be utilised within three years of the reporting

date. Discounting of the non-current element has not been applied because the discount would be immaterial.

22 Deferred Tax Assets And Liabilities

Deferred tax assets and liabilities arising from temporary differences and unused tax losses after offset are as follows:

	2024	2023
	€m	€m
Deferred tax assets	84.5	79.6
Deferred tax liabilities	(113.9)	(60.9)
Net position	(29.4)	18.7

Deferred tax arises from differences in the carrying value of items such as property, plant and equipment, intangibles, pension

obligations, and other temporary differences in the financial statements and the tax base established by the tax authorities.

The movement in the net deferred tax position for 2024 is as follows:

	Balance	Recognised	Recognised	Recognised	Translation	Arising on	Balance
	1 Jan	in profit	in equity	in other	adjustment	acquisitions	31 Dec
	2024	or loss		comprehensive			2024
				income
	€m	€m	€m	€m	€m	€m	€m
Property, plant and equipment	(60.8)	(3.2)	-	-	(1.7)	0.2	(65.5)
Intangibles	(44.9)	10.0	-	-	(1.0)	(24.5)	(60.4)
Other temporary differences	95.6	(5.1)	(2.2)	-	1.0	(16.5)	72.8
Pension obligations	5.5	0.9	-	(0.5)	-	-	5.9
Unused tax losses	23.3	(5.5)	-	-	-	-	17.8
	18.7	(2.9)	(2.2)	(0.5)	(1.7)	(40.8)	(29.4)

The movement in the net deferred tax position for 2023 is set out overleaf:

311

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

22 Deferred Tax Assets And Liabilities (continued)

	Balance	Recognised	Recognised	Recognised	Translation	Arising on	Balance
	1 Jan	in profit or	in equity	in other	adjustment	acquisitions	31 Dec
	2023	loss		comprehensive			2023
				income
	€m	€m	€m	€m	€m	€m	€m
Property, plant and equipment	(53.4)	(7.7)	-	-	0.5	(0.2)	(60.8)
Intangibles	(60.9)	5.5	-	-	(1.0)	11.5	(44.9)
Other temporary differences	77.5	8.5	3.2	-	(1.3)	7.7	95.6
Pension obligations	6.4	(1.2)	-	0.4	(0.1)	-	5.5
Unused tax losses	15.3	7.9	-	-	-	0.1	23.3
	(15.1)	13.0	3.2	0.4	(1.9)	19.1	18.7

23 Business Combinations

A key strategy of the Group is to create and sustain market leading positions through acquisitions in markets it currently operates

in, together with extending the Group’s footprint in new geographic markets. In line with this strategy, the principal acquisitions

completed during the year were as follows:

In January 2024, the Group acquired 51% of the share capital of Steico SE (Steico) with an option to acquire a further c.10% of

shares in Steico in the future. Steico is the world leader in wood fibre insulation and wood-based building envelope products, based

in Germany and listed on the unofficial markets of several German Stock Exchanges. The total combined consideration, including

deferred contingent consideration and net debt acquired, amounted to €510.0m.

In October 2024, the Group increased its shareholding in Nordic Waterproofing Holding AB (Nordic Waterproofing) to 62.6%

thereby attaining a controlling shareholding. Nordic Waterproofing is a publicly listed company on the Nasdaq Stockholm and

is a market leader in waterproofing products and services for the protection of buildings and infrastructure. The total combined

consideration, including net debt acquired, amounted to €162.3m.

The Group also made a number of smaller acquisitions during the year for a combined consideration, including deferred

contingent consideration and net debt acquired, of €305.6m:

• The Insulated Panels division acquired the business and assets of Conqueror in New Zealand in January 2024, 100% of the share

capital of Rafinor and Eftex in Denmark and 100% of the share capital of Clastina in Belgium in April 2024 and 70% of the

share capital of Fatek Advance Insulation in Thailand in June 2024. The division acquired 100% of the share capital of KZK in the

Netherlands in July 2024 and 100% of the share capital of Siegmetall in Germany in September 2024. The division also acquired

100% of the share capital of PSP Profile in France in October 2024, 85% of the share capital of Solen Energy in the UK, 51% of

the share capital of Villalba in Chile in November 2024 and acquired certain business and assets of TPF in France in December

2024. A controlling interest in a venture in Paraguay was also acquired during the financial year.

• In April 2024 the Insulation division acquired the stonewool manufacturing business and assets in Germany from Karl Bachl

Kunststoffverarbeitung GmbH & Co. KG as well as 75% of the share capital of TreeTops in Denmark. In May 2024, the division

also acquired the acoustic business and assets of Isolco in the Netherlands.

• In April 2024 the Light, Air + Water division acquired 100% of the share capital of Visa Oeste and Petaproj in Portugal and in

October 2024 acquired 100% of the share capital of National Poly Industries in Australia.

• In September 2024 the Roofing + Waterproofing division acquired 90% of the share capital of IB Roof Systems in the USA.

The table below reflects the provisional fair value of the identifiable net assets acquired in respect of the acquisitions completed

during the year. Any amendments to fair values will be made within the twelve month period from the date of acquisition, as

permitted by IFRS 3 Business Combinations.

312

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

23 Business Combinations (continued)

	Steico	Nordic	Other*	Total
		Waterproofing
	€m	€m	€m	€m
Non-current assets
Intangible assets	65.7	7.5	21.1	94.3
Investment in associates	-	11.9	-	11.9
Financial assets	-	0.2	-	0.2
Property, plant and equipment	341.9	39.3	123.6	504.8
Right of use assets	2.2	11.0	12.3	25.5
Current assets
Inventories	50.2	60.6	51.7	162.5
Trade and other receivables	45.2	75.7	56.2	177.1
Current liabilities
Trade and other payables	(76.9)	(71.9)	(66.1)	(214.9)
Provisions for liabilities	(1.9)	(1.2)	(1.9)	(5.0)
Lease liabilities	(0.7)	(4.3)	(3.2)	(8.2)
Non-current liabilities
Retirement benefit obligations	(4.0)	-	-	(4.0)
Lease liabilities	(1.5)	(7.0)	(9.5)	(18.0)
Deferred tax liabilities	(22.8)	(9.6)	(8.4)	(40.8)
Total identifiable assets	397.4	112.2	175.8	685.4
Non-controlling interest arising on acquisition	(121.9)	(131.0)	(11.9)	(264.8)
Step up from financial asset	-	(125.2)	-	(125.2)
Goodwill	234.5	306.3	141.7	682.5
Total consideration	510.0	162.3	305.6	977.9
Satisfied by:
Cash (net of cash acquired)	337.2	162.3	275.8	775.3
Deferred contingent consideration	97.7	-	29.8	127.5
Share capital issued	75.1	-	-	75.1
Total consideration	510.0	162.3	305.6	977.9

* Other includes the remaining acquisitions completed during the period together with certain immaterial remeasurements of

prior year accounting estimates.

The acquired goodwill is attributable principally to the profit generating potential of the businesses, together with a strong

workforce, new geographies and synergies expected to be achieved from integrating the acquired businesses into the Group’s

existing business.

In the post-acquisition period to 31 December 2024, the businesses acquired during the current year contributed revenue of

€536.3m and trading profit of €35.3m to the Group’s results.

The Group’s full year revenue and trading profit had the acquisitions taken place at the start of the year, would have been

€9,171.4m and €947.6m respectively.

The gross contractual value of trade and other receivables as at the respective dates of acquisition amounted to €181.1m. The fair

value of these receivables is €177.1m, all of which is recoverable, and is inclusive of an aggregate impairment provision of €4.0m.

There is €33.3m of goodwill (2023: €nil) which is expected to be deductible for tax purposes.

The Group incurred acquisition related costs of €6.1m (2023: €6.8m) relating to external legal fees and due diligence costs. These

costs have been included in operating costs in the Consolidated Income Statement.

313

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

23 Business Combinations (continued)

The initial assignment of fair values to identifiable net assets acquired has been performed on a provisional basis due to the

relative size of the acquisitions and the timing of the transactions. Any amendments to these fair values within the twelve-month

timeframe from the date of acquisition will be disclosed in the 2025 Annual Report, as stipulated by IFRS 3.

Prior year acquisitions

The following principal acquisitions completed during the prior year were as follows:

In April 2023, the Group acquired 100% of the share capital of CaPlast, enhancing our Roofing + Waterproofing underlayment and

vapour control offerings in the DACH region. The total consideration, including net debt acquired amounted to €86.9m.

The Group also made a number of smaller acquisitions during the prior year for a combined consideration of €140.0m:

• The Insulated Panels division acquired 100% of the share capital of Alaço in Portugal in January 2023, 100% of the share capital

of LRM in France in May 2023, 51% of the share capital of MontFrio in Uruguay in June 2023 and 100% of the share capital of

Toode Group in the Baltics in September 2023.

• In June 2023, the Insulation division acquired 80% of the share capital of HempFlax Building Solutions in Germany and 100% of

the share capital of Thor Building Products in Australia.

• The Data Solutions division acquired 70% of Q-nis in Ireland during September 2023 and 100% of the share capital of Provan

Group in Belgium in November 2023.

The table below reflects the fair value of the identifiable net assets acquired in respect of the acquisitions completed during the

prior year. Any amendments to fair values are made within the twelve month period from the date of acquisition, as permitted by

IFRS 3, Business Combinations.

	CaPlast	Other*	Total
	€m	€m	€m
Non-current assets
Intangible assets	22.7	9.9	32.6
Property, plant and equipment	16.5	24.9	41.4
Right of use assets	1.8	(6.9)	(5.1)
Deferred tax assets	-	29.1	29.1
Current assets
Inventories	10.4	23.5	33.9
Trade and other receivables	6.5	9.5	16.0
Current liabilities
Trade and other payables	(7.9)	(51.7)	(59.6)
Provisions for liabilities	(2.0)	(4.3)	(6.3)
Lease liabilities	(0.6)	(0.8)	(1.4)
Non-current liabilities
Retirement benefit obligations	-	(0.1)	(0.1)
Lease liabilities	(1.2)	(2.9)	(4.1)
Deferred tax liabilities	(7.0)	(3.0)	(10.0)
Total identifiable assets	39.2	27.2	66.4
Non-controlling interest arising on acquisition	(0.2)	(7.5)	(7.7)
Goodwill	47.9	120.3	168.2
Total consideration	86.9	140.0	226.9
Satisfied by:
Cash (net of cash acquired)	86.9	132.7	219.6
Deferred contingent consideration	-	7.3	7.3
Total consideration	86.9	140.0	226.9

314

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

23 Business Combinations (continued)

*Included in Other are certain immaterial remeasurements of prior year accounting estimates as a result of the finalisation of the

assignment of fair values to identifiable net assets.

The acquired goodwill is attributable principally to the profit generating potential of the businesses, together with cross-

selling opportunities and other synergies expected to be achieved from integrating the acquired businesses into the Group’s

existing business.

In the post-acquisition period to 31 December 2023, the businesses acquired during the year contributed revenue of €110.6m and

trading profit of €12.8m to the Group’s results.

The full year revenue and trading profit had the acquisitions taken place at the start of the year, would have been €8,198.5m and

€889.6m respectively.

The gross contractual value of trade and other receivables as at the respective dates of acquisition amounted to €19.2m. The fair

value of these receivables is €16.0m, all of which is recoverable, and is inclusive of an aggregate impairment provision of €3.2m.

There was €nil of goodwill expected to be deductible for tax purposes.

24 Share Capital

		2024	2023
		€m	€m
Authorised
250,000,000	Ordinary shares of €0.13 each (2023: 250,000,000 Ordinary shares of €0.13 each)	32.5	32.5
Issued and fully paid
Ordinary shares of €0.13 each Opening balance – 183,591,682 (2023: 183,591,682) shares		23.9	23.9
Shares allotted– 1,004,960 (2023: nil) shares		0.1	-
Closing balance – 184,596,642 (2023: 183,591,682) shares		24.0	23.9

1,004,960 new ordinary shares (2023: nil) were issued as partial consideration for the acquisition of a majority shareholding in

Steico SE (Note 23).

25 Share Premium

	2024	2023
	€m	€m
At 1 January	129.3	112.4
Shares issued	62.7	-
Re-issued treasury shares	23.9	16.9
At 31 December	215.9	129.3

1,004,960 new ordinary shares (2023: nil) were issued at a premium as partial consideration for the acquisition of a majority

shareholding in Steico SE (Note 23).

During the year, the Company issued treasury shares in satisfaction of obligations falling under share schemes. The treasury shares

were issued for consideration exceeding their carrying value and the difference has been accounted for as share premium.

315

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

26 Treasury Shares

Consideration paid

			2024			2023
	No. of	Consideration	Total	No. of shares	Consideration	Total
	shares	paid			paid
		€	€m		€	€m
At 1 January	1,668,148	33.48	55.8	1,982,473	28.74	56.9
Repurchase of shares	1,515,689	88.80	134.6	13,547	57.68	0.7
Shares issued	(386,678)	9.30	(3.6)	(327,872)	5.67	(1.8)
At 31 December	2,797,159	66.80	186.8	1,668,148	33.48	55.8

Nominal value

			2024			2023
	No. of	Nominal	Total	No. of shares	Nominal	Total
	shares	value			value
		€	€		€	€
At 1 January	1,668,148	0.13	216,859	1,982,473	0.13	257,721
Repurchase of shares	1,515,689	0.13	197,040	13,547	0.13	1,761
Shares issued	(386,678)	0.13	(50,268)	(327,872)	0.13	(42,623)
At 31 December	2,797,159	0.13	363,631	1,668,148	0.13	216,859

The Company repurchased 1,515,689 shares during the year (2023: 13,547).

During the year, the Company issued 386,678 (2023: 327,872) shares in satisfaction of obligations falling under share schemes.

The Company holds 1.5% (2023: 0.9%) of the issued ordinary share capital as treasury shares.

27 Retained Earnings

In accordance with Section 304 of the Companies Act 2014, the Company is availing of the exemption from presenting its

individual Income Statement to the Annual General Meeting and from filing it with the Registrar of Companies. The Company’s

profit for the financial year was €194.6m (2023: €1,000.1m).

28 Dividends

		2024	2023
		€m	€m
Equity dividends on ordinary shares:
2024	Interim dividend 26.3 cent (2023: 26.3 cent) per share	47.8	47.9
2023	Final dividend 2 6.6 cent (2022: 23 .8 cent) per share	48.8	43.3
Proposed for approval at AGM		96.6	91.2
Final dividend of 28.5 cent (2023: 26.6 cent) per share		51.8	48.4

The proposed final dividend for 2024 is subject to approval by the shareholders at the Annual General Meeting and has not been

included as a liability in the Consolidated Statement of Financial Position of the Group as at 31 December 2024 in accordance with

IAS 10 Events after the Reporting Period. The proposed final dividend for the year ended 31 December 2024 will be payable on 21

May 2025 to shareholders on the Register of Members at close of business on 11 April 2025.

316

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

29 Non-Controlling Interest

	2024	2023
	€m	€m
At 1 January	99.8	75.8
Profit for the year attributable to non-controlling interest	25.3	13.6
Arising on acquisition (Note 23)	264.8	7.7
Purchase of non-controlling interest	(88.2)	-
Increase in non-controlling interest	8.4	1.4
Dividends paid to minorities	(1.0)	(0.9)
Share of foreign operations’ translation movement	(10.8)	2.2
At 31 December	298.3	99.8

During the year, the Group acquired an additional shareholding in Nordic Waterproofing and as a result held a 87.37%

shareholding at 31 December 2024.

30 Reconciliation Of Net Cash Flow To Movement In Net Debt

	2024	2023
	€m	€m
Movement in cash and bank overdrafts	38.1	287.6
Drawdown of loans	(899.7)	(319.0)
Repayment of loans and borrowings	246.2	582.0
Change in net debt resulting from cash flows	(615.4)	550.6
Translation movement - relating to US dollar loan	(11.2)	6.5
Translation movement – other	28.5	3.0
Derivative financial instruments movement	4.6	-
Net movement	(593.5)	560.1
Net debt at start of the year	(979.5)	(1,539.6)
Net debt at end of the year	(1,573.0)	(979.5)

Lease liabilities of €238.6m (2023: €219.8m) are excluded from net debt.

A reconciliation of liabilities/(assets) arising from financing activities in 2024 is set out below.

	Balance	Repayments	Drawdowns /	Non cash	Balance
	1 Jan 2024		Receipts	movements	31 Dec 2024
	€m	€m	€m	€m	€m
Bank loans and borrowings	326.3	(53.2)	149.7	0.1	422.9
Loan notes	1,591.9	(193.0)	-	11.2	1,410.1
Public debt	-	-	750.0	-	750.0
Derivatives	-	-	-	(4.6)	(4.6)
	1,918.2	(246.2)	899.7	6.7	2,578.4

A reconciliation of liabilities arising from financing activities in 2023 is set out below.

	Balance	Repayments	Drawdowns /	Non cash	Balance
	1 Jan 2023		Receipts	movements	31 Dec 2023
	€m	€m	€m	€m	€m
Bank loans and borrowings	866.9	(539.5)	-	(1.1)	326.3
Loan notes	1,322.0	(42.5)	319.0	(6.6)	1,591.9
	2,188.9	(582.0)	319.0	(7.7)	1,918.2

317

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

31 Guarantees And Other Financial Commitments

(i) Guarantees and contingencies

The Group’s principal debt facilities are secured by means of cross guarantees provided by Kingspan Group plc. These include

drawn private placement notes of US$200m (2023:US$200m) and €1,218m (2023: €1,411m), public bond of €750m (2023: €nil),

an undrawn bank facility of €800m (2023: €800m) and one (2023: one) additional banking finance facility with an aggregated

value of €150m (2023: €300m).

Kingspan Group plc has guaranteed the relevant debts of certain Dutch and German subsidiaries in accordance with Article 403,

Book 2 of the Dutch Civil Code and Section 264 of the German Commercial Code (HGB) respectively. The respective entities

(noted in Principal Subsidiaries and Substantial Undertakings) have therefore availed of the exemption from preparing and filing

audited financial statements and management reports in the Netherlands and Germany.

(ii) Future capital expenditure

Capital expenditure in subsidiary entities, approved by the directors but not provided in the financial statements, is as follows:

	2024	2023
	€m	€m
Contracted for	96.6	93.1
Not contracted for	151.2	74.1
	247.8	167.2

32 Pension Obligations

The Group operates defined contribution schemes in each of its main operating locations. The Group also has a number of defined

benefit schemes in the UK and mainland Europe.

Defined contribution schemes

The total cost charged to profit or loss of €43.6m (2023: €37.8m) represents employer contributions payable to these schemes

in accordance with the rules of each plan. An amount of €5.9m (2023: €5.7m) was included at year end in accruals in respect of

defined contribution pension accruals.

Defined benefit schemes / obligations

The Group has three defined benefit schemes in the UK, all of which are closed to new members and to future accrual. The total

pension contributions to these schemes for the year amounted to €nil (2023: €0.8m) and the expected contributions for 2025

are €nil. On 6 December 2022, the Group executed a €150.8m bulk insurance annuity insurance policy ‘buy in’ for the Colt Life

Assurance and Retirement Scheme (CLARS). This buy in ensures that an insurance asset fully matches the remaining pension

liability. Therefore for this particular scheme the Group is no longer exposed to the pension risks outlined below. The Group cash-

settled the pension buy in arrangement during 2023 for €15.9m.

The Group also has pension obligations in mainland Europe which are accounted for as defined benefit obligations. These

obligations have been accounted for in line with the Group’s existing pension obligations whereby companies are not required to

fund independent schemes for post employment benefit obligations. Instead, commencing from the date the employee becomes

eligible to receive the income stream, this obligation is satisfied from available cash resources of the relevant employing company.

A provision has been made for the unfunded liability. €2.8m of pension entitlements have been paid to retired former employees

during the year (2023: €2.5m).

The pension costs relating to all of the above defined benefit obligations are assessed in accordance with the advice of qualified

actuaries. In the case of the three UK legacy schemes, the most recent actuarial valuations were performed as of 31 December

2024. In general, actuarial valuations are not available for public inspection however, the results of valuations are advised to

members of the various schemes.

318

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

32 Pension Obligations (continued)

The UK and European defined benefit schemes expose the Group to the following risks:

Interest Rate Risk: The discount rates employed in determining the present value of the Group’s defined benefit liabilities are

set with reference to corporate bond yields. A decrease in corporate bond yields would increase the schemes’ defined benefit

obligation. Such movements in bond yields would result in volatility in the Group’s Consolidated Financial Statements.

Inflation Risk: A significant proportion of the Group’s defined benefit obligation is linked to inflation therefore higher inflation

will result in a higher defined benefit obligation (subject to the appropriate caps in place to protect the schemes against

extreme inflation). This is expected to be offset to an extent by an increase in the value of the Group’s holdings in liability driven

investments (LDI) type plan assets.

Longevity Risk: The present value of the Group’s defined benefit obligation is calculated with reference to the mortality of scheme

members, both during and after employment. If scheme members live longer than expected, the scheme’s benefits will need to be

paid for longer, increasing the scheme’s defined benefit obligation.

The directors note that the Group’s UK defined benefit schemes are also exposed to the following significant risk:

Asset Volatility: The Group’s defined benefit obligations are calculated using discount rates set with reference to corporate bond

yields. The schemes’ assets comprise of equities, bonds, property and LDI, all of which may fluctuate significantly in value. These

assets are expected to outperform corporate bonds in the long-term, but provide volatility and risk in the short-term.

The extent of the Group’s obligation under these schemes is sensitive to judgemental actuarial assumptions, of which the principal

ones are set out below. It is not considered that any reasonable sensitivity analysis on these assumptions would materially alter

the scheme obligations.

		2024		2023
	Funded	Un-funded	Funded	Un-funded
	Schemes	Schemes	Schemes	Schemes
Life expectancies
Life expectancy for someone aged 65 - Males	21.5	20.7	21.6	21.1
Life expectancy for someone aged 65 - Females	24.0	23.6	24.1	25.4
Life expectancy at age 65 for someone aged 45 - Males	22.9	21.5	22.9	23.6
Life expectancy at age 65 for someone aged 45 - Females	25.5	23.4	25.6	28.1
Rate of increase in salaries	-	2% - 4%	-	2.50% -3.20%
Rate of increase of pensions in payment	0% - 3.03%	2% - 2.5%	0% - 3.05%	1.50% - 2.50%
Rate of increase for deferred pensioners	2.75% - 3.95%	-	2.20% - 2.55%	-
Discount rate	5.50%	2.5% - 5.6%	4.50%	3.17% - 4.59%
Inflation rate	3.35%	1.8% - 2.6%	3.20%	1.75% - 3.20%

It is noted that the ‘Funded Schemes’ relate to the wholly and partly funded UK schemes and 5 partially funded immaterial

European schemes. The ‘Un-funded Schemes’ covers all other European defined benefit schemes.

The table below gives an indication of the impact of a change in the principal actuarial assumptions on the funded defined

benefit scheme liabilities.

319

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

32 Pension Obligations (continued)

	Assumption	Change in	Impact on plan liabilities
		assumption
			2024	2023
Funded Schemes	Discount rate	Increase/decrease by	Decrease by 6% /	Decrease by 6% /
		0.5%	increase by 6%	increase by 7%
Un-Funded Schemes	Discount rate	Increase by 0.25%	Decrease by 3%	Decrease by 3%
Funded Schemes	Inflation rate	Increase/decrease by	Increase by 3% /	Increase by 4% /
		0.5%	decrease by 3%	decrease by 4%
Un-Funded Schemes	Inflation rate	Increase by 0.25%	Increase by 1%	Increase by 2%
Funded Schemes	Mortality assumptions	Increase by 1 year	Increase by 3%	Increase by 3%
Un-Funded Schemes	Mortality assumptions	Increase by 1 year	Increase by 3%-7%	Increase by 3%-6%

The sensitivity analyses above have been determined on a method that extrapolates the impact on the defined benefit obligation

as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analyses are

based on a change in a significant assumption, keeping all other assumptions constant. The sensitivity analyses may not be

representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in

isolation from one another.

Movements in net liability recognised in the Consolidated Statement of Financial Position

	2024	2023
	€m	€m
Net liability in schemes at 1 January	(37.0)	(49.5)
Acquisitions through business combinations (Note 23)	(4.0)	(0.1)
Employer contributions	2.6	3.4
Defined benefit pension scheme buy in settlement	-	15.9
Recognised in consolidated income statement	(2.5)	(2.1)
Recognised in consolidated statement of comprehensive income	3.4	(5.0)
Foreign exchange movement	-	0.4
Net liability in schemes at 31 December	(37.5)	(37.0)

Defined benefit pension income/(expense) recognised in the Consolidated Income Statement

	2024	2023
	€m	€m
Current service cost	(1.3)	(0.9)
Other expenses	(0.2)	(0.5)
Settlements of scheme obligations	0.3	0.5
Total, included in operating costs	(1.2)	(0.9)
Movement on scheme obligations	(9.1)	(8.9)
Interest on scheme assets	7.8	7.7
Net interest expense, included in finance expense (Note 4)	(1.3)	(1.2)

320

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

32 Pension Obligations (continued)

Analysis of amount included in other comprehensive income

	2024	2023
	€m	€m
Actual return less interest on scheme assets	(14.2)	6.5
Experience gain/(loss) arising on scheme liabilities	0.8	(4.9)
Actuarial gain arising from changes in demographic assumptions	11.0	2.0
Actuarial gain/(loss) arising from changes in financial assumptions	5.8	(8.6)
Gain/(loss) recognised in other comprehensive income	3.4	(5.0)

The cumulative actuarial loss recognised in other comprehensive income to date is €38.8m (2023: €42.2m).

In 2024, the actual return on plan assets was a loss of €11.6m (2023: gain of €8.9m).

Asset Classes and Expected Rate of Return

The assets in the scheme at each year end were as follows:

	2024	2023
Asset Classes as % of Total Scheme Assets
Equities	9.5%	2.0%
Bonds (Corporates)	0.4%	0.4%
Bonds (Gilts)	6.4%	6.1%
Cash	2.0%	0.4%
Property	4.5%	4.3%
Liability Driven Investment	9.9%	18.1%
Insurance Policy net of Insurance Premium due	67.3%	68.7%
	100%	100%

The net pension liability is analysed as follows:

		2024		2023
		€m		€m
	Funded	Un-funded	Funded	Un-funded
	Schemes	Schemes	Schemes	Schemes
Equities	15.0	-	3.5	-
Bonds (Corporates)	0.7	-	0.7	-
Bonds (Gilts)	10.2	-	10.4	-
Cash	3.2	-	0.6	-
Property	7.1	-	7.4	-
Liability Driven Investment	15.6	-	30.8	-
Insurance Policy net of Insurance Premium due	106.7	-	116.8	-
Fair market value of plan assets	158.5	-	170.2	-
Present value of obligation	(154.5)	(41.5)	(169.8)	(37.4)
Surplus/(deficit)	4.0	(41.5)	0.4	(37.4)

321

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

32 Pension Obligations (continued)

	2024	2023
	€m	€m
Analysed between:
Funded schemes’ surplus	4.3	1.0
Unfunded obligations	(41.8)	(38.0)
	(37.5)	(37.0)
Related deferred tax asset	5.9	5.5

	2024	2023
	€m	€m
Changes in present value of defined benefit obligations
At 1 January	207.2	195.1
Acquired through business combinations (Note 23)	4.0	0.1
Current service cost	1.3	0.9
Other expenses	(0.2)	-
Interest cost	9.1	8.9
Benefits paid	(15.1)	(11.6)
Settlement	(0.5)	(0.5)
Actuarial (gains)/losses	(17.6)	11.5
Effect of movement in exchange rates	7.8	2.8
At 31 December	196.0	207.2

	2024	2023
	€m	€m
Changes in present value of scheme assets during year
At 1 January	170.2	145.6
Interest on scheme assets	7.8	7.7
Employer contributions	0.1	0.9
Defined benefit pension scheme buy in settlement	-	15.9
Benefits paid	(12.5)	(9.1)
Settlement	(0.2)	-
Other expenses	(0.5)	(0.5)
Actual return less interest	(14.2)	6.5
Effect of movement in exchange rates	7.8	3.2
At 31 December	158.5	170.2

The weighted average duration of the defined benefit obligation at 31 December 2024 was 10.5 years (2023: 13.0 years).

33 Related Party Transactions

The principal related party relationships requiring disclosure under IAS 24 Related Party Disclosures relate to (i) transactions

between group companies, (ii) compensation of key management personnel and (iii) goods and services purchased

from directors.

(i) Transactions between subsidiaries are carried out on an arm’s length basis.

The Company received €195m dividends from subsidiaries (2023: €1,000m), and there was a net decrease in the intercompany

balance of €147.6m (2023: €61.2m increase).

322

Kingspan Group plc Annual Report & Financial Statements 2024

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

33 Related Party Transactions (continued)

Transactions with the Group’s non-wholly owned subsidiaries primarily comprise trading sales and capital funding, carried out on

an arm’s length basis. These transactions are not considered to be material.

(ii) For the purposes of the disclosure requirements of IAS 24 Related Party Disclosures, the term “key management personnel”

(i.e. those persons having the authority and responsibility for planning, directing and controlling the activities of the

Company), comprise the board of directors (executive and non-executive directors) who manage the business and affairs

of the Company. As identified in the Report of the Remuneration Committee, the directors, other than the non-executive

directors, serve as executive officers of the Group.

Key management personnel compensation is set out in Note 6. Dividends of €1.0m were paid to other key management personnel

(2023: €0.9m). €nil (2023: €nil) was outstanding at year end.

(iii) During the financial year, there were no disclosable goods and services purchased from directors (2023: €nil).

34 Contingent Liabilities

European Commission Proceedings

In March 2021, the Group notified the European Commission (EC) of its plan to acquire Trimo, architekturne rešitve, d.o.o.

(“Trimo”). In April 2021, the EC began an in-depth review of the transaction under the EU Merger Regulation (“EUMR”). After an

extensive process, the EC issued a Statement of Objections in March 2022, suggesting the acquisition could impact competition in

certain EU building materials markets. The transaction was abandoned in April 2022.

In November 2022, the EC opened an investigation to determine whether Kingspan supplied incorrect or misleading information

during the EUMR proceedings. The Group received a Statement of Objections from the EC on 19 March 2024, alleging that, as a

preliminary view, the Group supplied incorrect or misleading information during the EUMR proceedings related to the abandoned

Trimo acquisition. The Group has stated publicly that it disagrees with the EC’s preliminary views and that it fully cooperated with

the EC.

The Group filed a comprehensive rebuttal response to the EC’s Statement of Objections in August 2024 and subsequently

attended an oral hearing with the EC on the matter in November 2024. Since the oral hearing, the EC has requested additional

information from the Group to further consider the case and this process remains ongoing. There is no legal deadline for the EC to

complete their proceedings.

While the EC can impose fines up to 1% of consolidated turnover for an Article 14(1) EUMR breach, there are few precedent cases,

making it uncertain what the outcome or potential fine might be. The Group has not recognised a provision for a potential fine on

the basis that a present obligation does not exist. Moreover, any potential fine cannot be measured with sufficient reliability and

it would not be practical to do so.

A final decision from the EC is expected later in 2025, and the Group will have the right to appeal the decision via the European

judicial system. In order to appeal, the Group may be required to provisionally pay any fine, or provide a bank guarantee in that

amount. The outcome of the EC’s final decision, or any subsequent appeal by the Group of an adverse finding by the EC, cannot

be guaranteed.

Grenfell Tower Inquiry

In 2017, a subsidiary of the Group became a core participant of the Grenfell Tower Inquiry (the “Inquiry”), which was established

to examine the circumstances leading up to and surrounding the fire at Grenfell Tower in London, United Kingdom on 14 June

2017. While the Group’s subsidiary had no role in the design of the cladding system on Grenfell Tower, the Group’s K15 product

(constituting approximately 5% of the insulation on the tower) was misused without the Group’s knowledge in an unsafe and non-

compliant cladding system on the exterior of the building.

The Inquiry published its Phase 2 report on 4 September 2024 (the “Phase 2 Report”), which found that the primary cause of the

spread of the fire was the PE ACM cladding panels, which were not manufactured by the Group. Although not found by the Inquiry

to be causative of the tragedy, the Group has acknowledged certain historical failings that occurred in part of the business of the

relevant subsidiary, which the Group has since comprehensively addressed. There can be no assurance that the findings of the

Inquiry, negative press or industry sentiment following the Inquiry, will not negatively impact the Group or lead to the Group being

the subject of additional investigations, litigation, regulatory responses or other legal proceedings. The Group has not recognised

a provision for any liabilities that may arise on the basis that a present obligation does not exist. Any potential liabilities cannot be

measured with sufficient reliability, and it would not be practicable to do so.

323

Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 December 2024

35 Events Subsequent To Year End

During 2024, the Group increased its shareholding in Nordic Waterproofing Holding AB (“NWG”) from 30.95% to 87.37% through

a series of market transactions. NWG is a leader in the waterproofing market in Northern Europe and is publicly listed on Nasdaq

Stockholm, Mid Cap.

On 4 February 2025, the Group announced a public offer for all shares in NWG at a price of SEK 182.50 in cash per share (“the

Offer”). The total value of the Offer, based on the 3,041,052 shares in NWG which are not owned by the Group, amounts to

approximately SEK 555 million. The Board of Directors of NWG have unanimously recommended that the shareholders of NWG

accept the Offer.

The acceptance period for the Offer commenced on 6 February 2025 and expires on 6 March 2025. Settlement of the Offer is

expected to commence on or about 13 March 2025 and will be financed from the Group’s existing cash and/or credit facilities.

NWG has a well-established reputation in the market, a proud heritage of innovation, and a strong brand in the manufacture of

high-quality waterproofing solutions across Sweden, Denmark, and other countries. This makes NWG a good fit for Kingspan’s

portfolio and aligns it with the Group’s strategic objectives.

There have been no other material events subsequent to 31 December 2024 which would require adjustment to, or disclosure in

this report.

36 Approval Of Financial Statements

The financial statements were approved by the directors on 25 February 2025.

324

Kingspan Group plc Annual Report & Financial Statements 2024

ALTERNATIVE PERFORMANCE MEASURES

The Group uses a number of metrics, which are non-IFRS measures, to monitor the performance of its operations.

The Group believes that these metrics assist investors in evaluating the performance of the underlying business. Given that

these metrics are regularly used by management, they also give the investor an insight into how Group management review and

monitor the business on an ongoing basis.

The principal APMs used by the Group are defined as follows:

Trading profit

This comprises the operating profit as reported in the Consolidated Income Statement before intangible asset amortisation and

non trading items. This equates to the Earnings Before Interest, Tax and Amortisation (EBITA) of the Group. Trading profit is used

by management as it excludes items which may hinder year on year comparisons.

		2024	2023
	Financial Statements Reference	€m	€m
Trading profit	Consolidated Income Statement	906.7	876.9

Trading margin

Measures the trading profit as a percentage of revenue.

		2024	2023
	Financial Statements Reference	€m	€m
Trading profit	Consolidated Income Statement	906.7	876.9
Revenue	Consolidated Income Statement	8,608.0	8,090.6
Trading margin		10.5%	10.8%

EBITDA

The Group defines EBITDA as earnings before finance expenses, income taxes, depreciation, amortisation and non trading item.

		2024	2023
	Financial Statements Reference	€m	€m
Trading profit	Consolidated Income Statement	906.7	876.9
Share of associates’ profit after tax	Consolidated Income Statement	1.7	-
Depreciation	Consolidated Statement of Cash Flows	231.9	190.9
EBITDA		1,140.3	1,067.8

Free cash flow

Free cash flow is the cash generated from operations after net capital expenditure, interest paid, income taxes paid and lease

payments and reflects the amount of internally generated capital available for re-investment in the business or for distribution to

shareholders.

		2024	2023
	Financial Statements Reference	€m	€m
Net cash flow from operating activities	Consolidated Statement of Cash Flows	894.5	1,162.2
Additions to property, plant and equipment	Consolidated Statement of Cash Flows	(366.3)	(234.2)
Additions to intangible assets	Consolidated Statement of Cash Flows	(0.4)	(3.5)
Proceeds from disposals of property, plant and equipment	Consolidated Statement of Cash Flows	32.9	4.2
Finance income received	Consolidated Statement of Cash Flows	17.4	22.6
Lease payments	Consolidated Statement of Cash Flows	(68.7)	(60.5)
Free cash flow		509.4	890.8

325

Financial Statements

ALTERNATIVE PERFORMANCE MEASURES (continued)

Return on capital employed (ROCE)

During the year, the Group redefined ROCE as trading profit plus share of associate’s profit after tax as a percentage of net assets

employed at the end of each reporting period, which excludes net debt and adjusts for cumulative amortisation of intangibles not

fully amortised. This enhances comparability with peers, and ensures consistency between internal and external reporting. Prior

period figures have been restated accordingly.

		2024	2023
	Financial Statements Reference	€m	€m
	Consolidated Statement of Financial
Net assets	Position	4,590.8	3,947.8
Add back accumulated amortisation of intangible assets not fully amortised		139.2	130.9
Net debt	Note 18	1,573.0	979.5
		6,303.0	5,058.2
Trading profit	Consolidated Income Statement	906.7	876.9
Share of associates’ profit after tax	Consolidated Income Statement	1.7	-
		908.4	876.9
Return on capital employed		14.4%	17.3%

Banking Covenants

The Net debt: EBITDA and the EBITDA: Net Interest ratios disclosed in this report are calculated in accordance with the terms and

conditions of the covenants as set out in the Group’s external borrowing arrangements. Therefore, EBITDA and Net Interest are

adjusted to exclude the impact of IFRS 16 Leases for these calculations.

Net debt

Net debt represents the net total of current and non-current borrowings, current and non-current derivative financial instruments,

(excluding foreign currency derivatives which are used for transactional hedging), and cash and cash equivalents as presented in

the Consolidated Statement of Financial Position. Lease liabilities recognised due to the implementation of IFRS 16 and deferred

contingent consideration have also been excluded from the calculation of net debt. Consistent with the 2023 APMs, this definition

is in accordance with the terms and conditions of the covenants as set out in the Group’s external borrowing arrangements.

		2024	2023
	Financial Statements Reference	€m	€m
Net debt	Note 18	1,573.0	979.5

Net debt : EBITDA

Net debt as a ratio to 12 month EBITDA. For the purpose of this calculation, EBITDA is solely adjusted for the impact of IFRS

16 Leases.

		2024	2023
	Financial Statements Reference	€m	€m
EBITDA		1,140.3	1,067.8
Lease liability payments	Consolidated Statement of Cash Flows	(68.7)	(60.5)
EBITDA (adjusted for the impact of IFRS 16)		1,071.6	1,007.3

		2024	2023
	Financial Statements Reference	€m	€m
Net debt	Note 18	1,573.0	979.5
EBITDA (adjusted for the impact of IFRS 16)		1,071.6	1,007.3
Net debt: EBITDA times		1.47	0.97

326

Kingspan Group plc Annual Report & Financial Statements 2024

ALTERNATIVE PERFORMANCE MEASURES (continued)

Net interest

The Group defines net interest as the Group’s interest expense on borrowings net of bank interest receivable. The impact of IFRS

16 Leases is excluded from the calculation which is consistent with the terms and conditions of the covenants as set out in the

Group’s external borrowing arrangements.

		2024	2023
	Financial Statements Reference	€m	€m
Bank loan interest	Note 4	21.6	24.9
Private placement loan note interest	Note 4	37.3	31.6
Bank interest earned	Note 4	(15.6)	(19.2)
Net Interest		43.3	37.3

Working capital

Working capital represents the net total of inventories, trade and other receivables and trade and other payables, net of

transactional foreign currency derivatives excluded from net debt.

		2024	2023
	Financial Statements Reference	€m	€m
Trade and other receivables	Note 15	1,390.2	1,254.2
Inventories	Note 14	1,197.1	964.3
Trade and other payables	Note 16	(1,560.2)	(1,346.1)
Foreign currency derivatives excluded from net debt	Note 20	0.1	(0.2)
Working capital		1,027.2	872.2

Working capital ratio

Measures working capital as a percentage of October to December turnover annualised. The annualisation of turnover reflects the

current profile of the Group rather than a partial reflection of any acquisitions completed during the period.

		2024	2023
	Financial Statements Reference	€m	€m
Working capital		1,027.2	872.2
October - December turnover annualised		8,986.2	7,752.8
Working capital ratio		11.4%	11.3%

Total shareholder return (TSR)

Total shareholder return (TSR) is a key performance metric for the Performance Share Plan (PSP).

The methodology for calculating the total shareholder return assumes the following: the open price is set as the closing price

of the final trading day prior to the beginning of the performance period; the close price is set as the closing price on the final

trading day of the performance period; the calculation assumes all dividends are reinvested on the ex-dividend date, at the closing

price on that day.

		2024	2023
	Financial Statements Reference	%	%
Total Shareholder Return	Page 55	(9.5)	56.2

327

Financial Statements

PRINCIPAL SUBSIDIARIES AND SUBSTANTIAL UNDERTAKINGS

	%	Nature of
	Shareholding	Business
AUSTRALIA
Kingspan Insulated Panels Pty Limited	100	Manufacturing
Kingspan Insulation Pty Limited	100	Manufacturing
Kingspan Water & Energy Pty Limited	85	Manufacturing
BELGIUM
Imperbel NV	100	Manufacturing
Joris Ide NV	100	Manufacturing
Kingspan Insulation NV	100	Manufacturing
BRAZIL
Kingspan-Isoeste Trading Importadora	51	Sales & Marketing
E Exportadora Limitada
Kingspan-Isoeste Construtivos	51	Manufacturing
Isotérmicos SA
CANADA
Kingspan Insulated Panels Limited	100	Manufacturing
Vicwest Inc.	100	Manufacturing
CZECH REPUBLIC
Kingspan AS DENMARK	100	Manufacturing
Hetag Tagdækning Syd A/S	34.94	Installation
IFA Tagdaekning A/S	34.94	Installation
LOGSTOR Denmark Holding ApS	100	Manufacturing
Troldtekt A/S	100	Manufacturing
FINLAND
Kerabit Kattoelementit Oy	87.37	Manufacturing
Kingspan Oy	100	Sales & Marketing
FRANCE
B.A.C. Acier SAS	100	Manufacturing
Comptoir du Batiment et	100	Manufacturing
de L’Industrie SAS
Isocab France SASU	100	Manufacturing
Joris Ide Auvergne SASU	100	Manufacturing
Joris Ide Sud Ouest SASU	100	Manufacturing
Kingspan Light Air SASU	100	Sales & Marketing
Metal SASU	100	Manufacturing
Onduline France SASU	100	Manufacturing
Profinord SASU	100	Manufacturing
Skydôme SASU	100	Manufacturing
Societe Bretonne de Profilage SASU	100	Manufacturing

	%	Nature of
	Shareholding	Business
GERMANY
alwitra GmbH	100	Manufacturing
alwitra Holding (Germany) GmbH	100	Holding Company
CaPlast Kunststoffverarbeitungs	100	Manufacturing
GmbH
Colt International GmbH	100	Manufacturing
Joris Ide Deutschland GmbH	100	Manufacturing
Kingspan Access Floors GmbH	100	Manufacturing
Kingspan GmbH	100	Sales & Marketing
Kingspan Holding GmbH	100	Holding Company
Kingspan Insulation GmbH & Co. KG	100	Manufacturing
Kingspan Light + Air GmbH	100	Manufacturing
Kingspan Mineral Insulation GmbH	100	Manufacturing
Kingspan Services GmbH	100	Sales & Marketing
Kingspan STG GmbH	100	Manufacturing
LOGSTOR Deutschland GmbH	100	Sales & Marketing
STEICO SE	51	Manufacturing
HUNGARY
Kingspan Kereskedelmi Kft	100	Manufacturing
INDIA
Kingspan Jindal Private Limited	51	Manufacturing
INDONESIA
PT Onduline Indonesia	100	Manufacturing
IRELAND
Kingspan Holdings (Irl) Limited	100	Management &
		Procurement
Kingspan Holdings (North	100	Holding Company
America) Limited
Kingspan Holdings (Overseas) Limited	100	Holding Company
Kingspan Holdings Limited	100	Holding Company
Kingspan Insulation Limited	100	Manufacturing
Kingspan International Finance	100	Finance Company
Unlimited Company
Kingspan Light & Air Limited	100	Manufacturing
Kingspan Limited	100	Manufacturing
Kingspan Nominees Limited	100	Holding Company
Kingspan Securities (Ireland) DAC	100	Finance Company
Kingspan Securities Limited	100	Finance Company
MALAYSIA
Onduline Building Materials	100	Manufacturing
(M) SDN BHD

328

Kingspan Group plc Annual Report & Financial Statements 2024

328

Kingspan Group plc

PRINCIPAL SUBSIDIARIES AND SUBSTANTIAL UNDERTAKINGS (continued)

	%	Nature of
	Shareholding	Business
MEXICO
Kingspan Insulated Panels SA DE CV	100	Manufacturing
NETHERLANDS
Derbigum Nederland B.V.	100	Sales & Marketing
Joris Ide Nederland B.V.	100	Manufacturing
Kingspan B.V.	100	Sales & Marketing
Kingspan Holding Netherlands B.V.	100	Holding Company
Kingspan Insulation B.V.	100	Manufacturing
Kingspan Light + Air Netherlands B.V.	100	Manufacturing
Kingspan Unidek B.V.	100	Manufacturing
LOGSTOR Nederland B.V.	100	Sales & Marketing
NEW ZEALAND
Kingspan Insulation NZ Limited	100	Manufacturing
NORWAY
Nordic Waterproofing AS	87.37	Sales &
		Distribution
PHILIPPINES
OFIC Philippines Inc.	100	Sales & Marketing
POLAND
Balex Metal Sp. Z o.o.	100	Manufacturing
Corotop SA	100	Manufacturing
Kingspan Sp. Z o.o.	100	Manufacturing
LOGSTOR International Sp. Z.o.o	100	Holding Company
STEICO Sp. Z o.o	51	Manufacturing
ROMANIA
Terasteel SA	99	Manufacturing
Wetterbest SA	100	Manufacturing
SPAIN
Huurre Iberica SA	100	Manufacturing
Kingspan Insulation SAU	100	Manufacturing
Synthesia Technology Europe SLU	100	Manufacturing
Teczone Española SA	100	Manufacturing
THU Perfil SLU	100	Manufacturing

	%	Nature of
	Shareholding	Business
SWEDEN
Kingspan AB	100	Sales & Marketing
Kingspan Insulation AB	100	Manufacturing
Nordic Waterproofing AB	87.37	Manufacturing
Nordic Waterproofing Holding AB	87.37	Holding Company
Powerpipe Systems AB	100	Manufacturing
TURKEY
Kingspan Yapi Elemanlari A.S.	85	Manufacturing
Onduline Avrasya Insaat Malzemeleri	100	Manufacturing
Sanayi Ve Ticaret A.S.
UNITED ARAB EMIRATES
Kingspan Insulated Panels	85	Manufacturing
Manufacturing LLC
Kingspan Insulation LLC	100	Manufacturing
UNITED KINGDOM
Colt Group Limited	100	Holding Company
Colt International Limited	100	Sales & Marketing
Euroclad Group Limited	100	Manufacturing
Kingspan Group Limited	100	Holding Company
Kingspan Insulation Limited	100	Manufacturing
Kingspan Limited	100	Manufacturing
Kingspan Services (UK) Limited	100	Management &
		Procurement
Kingspan Water & Energy Limited	100	Manufacturing
UNITED STATES
Kingspan Insulated Panels Inc.	100	Manufacturing
Kingspan Insulation LLC	100	Manufacturing
Kingspan Light & Air LLC	100	Manufacturing
Morin Corporation	100	Manufacturing
Pre-insulated Metal Technologies Inc.	100	Manufacturing
Tate Access Floors Inc.	100	Manufacturing
URUGUAY
Bromyros SA	51	Manufacturing

Pursuant to section 316 of the Companies Act 2014, a full list

of subsidiaries, joint ventures and substantial undertakings will

be annexed to the Company’s Annual Return to be filed in the

Companies Registration Office in Ireland.

329

Financial Statements

329

Financial Statements

SHAREHOLDER INFORMATION

Stock exchange listing

The Company’s shares are listed on the main market of the

Euronext Dublin StockExchange.

Share Registrar

Computershare Investor Services (Ireland) Limited

(“Computershare”) maintains the Company’s register of

members. Should a shareholder have any queries in respect of their

shareholding, they should contact Computershare directly using

the contact details providedbelow:

The Company Registrar:

Computershare Investor Services (Ireland) Limited,

3100 Lake Drive,

Citywest Business Campus,

Dublin 24,

D24 AK82.

Telephone number +353 1 4475103.

Dematerialisation

Under the EU Central Securities Depositories Regulation (EU)

909/2014 (CSDR), all securities of Irish issuers admitted to trading

or traded on trading venues in the European Economic Area are

now required to be represented in book-entry form, effective by

1 January 2025. Book-entry form refers to an electronic record

of ownership, eliminating the need for physical documents such

as share certificates. In line with CSDR, from 1 January 2023, all

new share issuances in the Company have been held in book-

entry form, and as of 1 January 2025, all remaining shares have

transitioned to this format. No action was required by shareholders

for this to take effect. Share certificates previously issued to

shareholders became invalid as a form of evidence of title to

shares as of 1 January 2025 and have been replaced by book-

entry balances maintained by our share registrar, Computershare

Investor Services (Ireland) Limited. Whilst paper certificates are

no longer valid, shareholdings are otherwise unchanged. For more

information, please visit the Dematerialisation section of our

website at www.kingspan.com/dematerialisation or contact the

Company’s Registrar, Computershare.

Amalgamation of Shareholding Accounts

Shareholders who receive duplicate sets of Company mailings due

to multiple accounts in their name should write to the Company’s

Registrar to have their accountsamalgamated.

Annual General Meeting

The Annual General Meeting (AGM) of the Company will be held on

Thursday, 1 May 2025 at 9.00 a.m.

Notice of the 2025 AGM will be made available to view online at

www.kingspan.com/agm2025.

Shareholders’ right to table draft resolutions and to put items

on the agenda

A shareholder or a group of shareholders holding 3% of the issued

share capital, representing at least 3% of the total voting rights

of all shareholders who have a right to vote at the meeting, have

a right to table a draft resolution for an item on the agenda of

the meeting subject to any contrary provisions in company law. In

the case of the 2025 Annual General Meeting, the latest date for

submission of such requests is 20 March 2025 (being 42 days prior

to the date of themeeting).

Therequest:

• may be in hard copy form or in electronic form;

• must set out in writing details of the draft resolution in full or,

if supporting a draft resolution sent by another shareholder,

clearly identify the draft resolution which is being supported;

• must be authenticated by the person or persons making it

(by identifying the shareholder or shareholders meeting the

qualification criteria and, if in hard copy, by being signed by the

shareholder or shareholders); and

• must be received by the Company not later than 42 days before

the meeting to which the request relates.

In addition to the above, the request must be made in accordance

with one of the followingways:

• a hard copy request which is signed by the shareholder(s),

states the full name and address of the shareholder(s) and

is sent to the Company Secretary, Kingspan Group plc, Head

Office, Dublin Road, Kingscourt, Co Cavan, Ireland; or

• a request which states the full name and address of the

Shareholder Reference Number (SRN), as printed on the

accompanying Form of Proxy of the shareholder(s) and is sent

to lorcan.dowd@kingspan.com.

A draft resolution must not be such as would be incapable of

being passed or otherwise be ineffective (whether by reason of

inconsistency with any enactment or the Company’s Memorandum

and Articles of Association or otherwise). Any draft resolution must

not be defamatory of anyperson.

330

Kingspan Group plc Annual Report & Financial Statements 2024

330

Kingspan Group plc

CORPORATE INFORMATION

Company Information

Kingspan Group plc was incorporated on 14 August 1979. It is an

Irish domiciled company and the registered office is Kingspan

Group plc, Dublin Road, Kingscourt, Co. Cavan, A82 XY31, Ireland.

The registered company number of Kingspan Group plc is70576.

Financial Calendar

Preliminary Results

Trading Update

AGM

Half-Yearly Results

Trading Update

21 February 2025

30 April 2025

1 May 2025

8 August 2025

10 November 2025

Banks

Bank of America Merrill Lynch

ING Bank NV

Commerzbank

KBC Bank NV

Bank of Ireland

HSBC Bank plc

BNP Paribas

Danske Bank AS

NatWest Bank Plc

UniCredit Bank AG

Stockbrokers

Goodbody,

9-12 Dawson St,

Dublin 2,

D02 YX99,

Ireland.

Bank of America Merrill Lynch,

2 King Edward St,

Farringdon,

London,

EC1A 1HQ,

England.

Auditor

Ernst & Young,

Chartered Accountants,

EY Building,

Harcourt Centre,

Harcourt Street,

Dublin 2,

Ireland.

Solicitors

McCann FitzGerald,

Riverside One,

Sir John Rogerson’s Quay,

Dublin 2,

Ireland.

331

Financial Statements

331

Financial Statements

GROUP FIVE YEAR SUMMARY

Results (amounts in €m) 2024 2023 2022 2021 2020

Revenue 8,608.0 8,090.6 8,340.9 6,497.0 4,576.0

Trading profit 906.7 876.9 833.2 754.8 508.2

Net profit before tax 831.8 794.2 746.6 689.0 459.7

Operating cashflow 1,137.3 1,368.6 884.0 490.6 750.8

Equity (amounts in €m) 2024 2023 2022 2021 2020

Gross assets 9,819.5 8,001.6 7,681.4 6,387.9 5,341.6

Working capital 1,027.2 872.2 1,195.9 977.8 450.8

Total shareholder equity 4,590.8 3,947.8 3,395.5 2,959.3 2,397.6

Net debt 1,573.0 979.5 1,539.6 756.1 236.2

Ratios 2024 2023 2022 2021 2020

Net debt as % of total shareholders’ equity 34.3% 24.8% 45.3% 25.5% 9.9%

Current assets / current liabilities 1.60 1.65 1.78 1.80 2.21

Net debt / EBITDA 1.47 0.97 1.62 0.88 0.40

Per Ordinary Share (amounts in €cent) 2024 2023 2022 2021 2020

Earnings 365.2 352.3 329.5 305.6 206.2

Operating cashflows 624.1 752.9 487.1 270.5 414.3

Net assets 2,519.3 2,171.8 1,870.9 1,631.8 1,323.1

Dividends 54.8 52.9 49.4 45.9 20.6

Average number of employees 25,401 22,384 20,590 17,880 15,424

50 8.2

75 4.8

20 6.2

30 5.6

20.6

45.9

2021

2020

6,4 9 7.0

4,5 7 6.0

2022

8,3 4 0.9

83 3.2

32 9.5

49.4

2023

8,0 9 0.6

87 6.9

35 2.3

52.9

REVENUE (€M)

TRADING PROFIT (€M)

EPS (CENT) DPS (CENT)

2024

8,6 0 8.0

90 6.7

36 5.2

54.8

2021

2020

2022

2023

2024

2021

2020

2022

2023

2024

2021

2020

2022

2023

2024

ENVIRONMENTAL CREDENTIALS

Paper

» Essential Velvet

» Edixion Offset

Paper Credentials

» Sustainably sourced from managed

wood fibre

» Manufactured in accordance with ISO

certified standards for environmental,

quality and energy management

» Carbon balanced

» Recyclable and biodegradable

Print Credentials

» 98% vegetable based inks

» The bioglaze laminate used on this

cover can be recycled along with paper,

as it is an acetate polymer made from

wood pulp and cotton

Aligned with our Planet Passionate

strategy, we are committed to

producing an environmentally

conscious Annual Report. To reduce our

environmental impact, this report is

printed on sustainably sourced, carbon-

balanced paper.

design: reddog.ie

Our daylighting systems sold in

2024 create 3.8 billion lumens

of natural light annually

Enough to light

up 470k homes

In 2024 alone, we

recycled 1.1 billion

waste plastic bottles

Enough recycled bottles to

circle the Earth over five times

Over 44.1 billion litres of

rainwater will be harvested by

our systems produced in 2024

Enough water to fill over

550m baths

172 million tonnes of CO

e will

be saved over the life of our

insulation systems sold in 2024

Enough to power a major

airline for over 11 years

NATURAL

DAYLIGHT

3.8 bn

ULTRA ENERGY

EFFICIENT

172m

CONSERVED

WATER

4 4.1bn

RECYCLED

MATERIAL

1.1 bn

1 Assumes 60 year product life; based on an EU airline disclosure of

over 15.4m tonnes of CO2e emissions for 12 months to March 2024

2 Assumes a 20 year product life

3 Equivalent number of PET bottles by weight

4 Assumes 10 x 60W bulbs per home

Scan here to explore

our digital report

Dublin Road, Kingscourt

Co. Cavan, Ireland, A82 XY31

Tel: +353 42 969 8000

Email: admin@kingspan.com

www.kingspan.com

KINGSPAN GROUP PLC ANNUAL REPORT & FINANCIAL STATEMENTS 2024