Climate Change Data

Clas Ohlson AB (publ)

Climate Impact & Sustainability Data (2010-05-01 to 2011-04-30, 2021-05 to 2022-04, 2022-05 to 2023-04, 2023-05-01 to 2024-04-30)

Reporting Period: 2010-05-01 to 2011-04-30

Environmental Metrics

Total Carbon Emissions:16,289 tCO2e (2010)

ESG Focus Areas

  • Human Rights
  • Working Conditions
  • Environmental Impact
  • Community Involvement

Environmental Achievements

  • Reduced annual CO2 emissions by 1,000 tonnes through district heating in the distribution centre and head office.
  • Promoted phase-out of conventional light bulbs through marketing campaigns and in-store assistance.

Social Achievements

  • Launched Employee Satisfaction Index (ESI) survey with 84% response rate and 74% ESI score.
  • Established a strategy for cooperation with NGOs, leading to a joint venture with Save the Children.
  • Collaborated with Cancerfonden on two campaigns.

Governance Achievements

  • Introduced a policy against corruption and bribes, applicable to employees, suppliers, and manufacturers.

Climate Goals & Targets

Medium-term Goals:
  • Reduce carbon dioxide emissions per tonne/kilometre for freight and person/kilometre for business travel by 30% by 2020 (compared to 2007).

Environmental Challenges

  • Excessive overtime, poor working conditions, inadequate protective equipment, weak unions, and manipulated timesheets in Asian factories.
  • Corruption and bribery in the supply chain.
  • Varying levels of CSR awareness and experience among manufacturers.
  • Dependence on fossil fuels for freight transportation.
Mitigation Strategies
  • Combination of internal CSR auditors and external audit firms.
  • Close cooperation between CSR department in China and purchasing office in Insjön.
  • Anti-corruption policy added to Code of Conduct.
  • Cooperation with CSR Asia and Save the Children's CCR-CSR in China.
  • Joint demands with other purchasing companies for better conditions.
  • Increased use of sea and rail freight to reduce carbon emissions.

Supply Chain Management

Supplier Audits: 426 audits in 2011 (combination of internal and external audits)

Responsible Procurement
  • Code of Conduct for suppliers and manufacturers.
  • Regular verifications and audits.
  • Termination of contracts with non-compliant manufacturers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Reporting Period: 2021-05 to 2022-04

Environmental Metrics

Renewable Energy Share:80%

ESG Focus Areas

  • Climate change
  • Diversity & Inclusion
  • Children's rights
  • Circular Economy
  • Responsible Supply Chain

Environmental Achievements

  • Reduced GHG emissions under Scope 1 and 2 by 18% in 2021/22
  • Avoided 350 tonnes of fossil carbon emissions from using stearin instead of paraffin in candles.
  • 83% of purchasing volume covered by environmental audits.
  • 22% of proprietary product sales assessed according to the new product evaluation model.
  • 80% renewable energy use in stores (target 100% by 2025)

Social Achievements

  • International diversity of workforce at 10%
  • 99.8% of suppliers meet the requirements of the Code of Conduct.
  • 100 sustainability ambassadors trained.
  • Ranked highest among all companies in their industry in Sweden and Norway’s Sustainable Brand Index.
  • Launched 'Give some love' initiatives including repair kits and DIY workshops.

Governance Achievements

  • No deviations reported from the Code of Conduct or Code of Business Ethics.
  • Continued work with anti-corruption training and compliance monitoring.

Climate Goals & Targets

Long-term Goals:
  • Become climate neutral and fully circular by 2045.
Medium-term Goals:
  • Reduce emissions relative to total sales by 50% by 2030 (20% reduction in absolute terms).
  • Achieve 100% renewable energy in all stores, offices, and distribution center by 2025.
  • 15-20% of co-workers to have a background in a different country by 2025.
Short-term Goals:
  • Assess and classify all proprietary products based on the new product evaluation model by 2025 (sub-target of 15% by 2021/22 achieved).

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic and the war in Ukraine.
  • Rising prices of food, fuel, electricity, and transportation.
  • Increased sourcing costs.
  • Limited use of renewable energy among suppliers (less than 10%).
  • Difficulties in measuring Scope 3 emissions.
Mitigation Strategies
  • Placed orders earlier and maintained close dialogue with suppliers and forwarding agents.
  • Established new purchase offices in Poland and Vietnam (and planned for India).
  • Built up slightly larger inventories.
  • Focused on developing priority areas of the range (e.g., home organization, increasing sales by 16%).
  • Continued to optimize store network (opened 4, closed 3, remodeled/relocated 9).
  • Shortened delivery times through feeder stores with e-com warehouses.
  • Improved online shopping website experience.
  • Increased the number of Club Clas members by approximately one million to 4.3 million.

Supply Chain Management

Supplier Audits: 167 internal social audits, 142 unannounced social audits, 113 environmental audits in 2021/22.

Responsible Procurement
  • Code of Conduct
  • Social, technical, and environmental audits of suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Sustainable Products & Innovation

  • SmartStore Ocean buckets (made from recycled fishing nets)

Awards & Recognition

  • Brilliant Awards – Customer Experience 2022 (Best customer service)
  • Empati Grand Prix 2021 (top in Hardware & DIY category)

Reporting Period: 2022-05 to 2023-04

Environmental Metrics

Total Carbon Emissions:10,484.3 tCO2e/year (Scope 1, 2 & 3)
Scope 1 Emissions:46.3 tCO2e/year
Scope 2 Emissions:926.6 tCO2e/year
Scope 3 Emissions:9,511.4 tCO2e/year
Renewable Energy Share:52% (own operations, market-based method)

ESG Focus Areas

  • Climate change
  • Gender equality
  • Supply chain responsibility
  • Product sustainability
  • Children's rights
  • Ethical business practices

Environmental Achievements

  • Reduced carbon emissions in own operations (Scope 1+2) by 23% in 2022 (39% reduction from 2019 baseline)
  • 53% of own-brand products assessed and classified according to PSAM (Product Sustainability Assessment Model)

Social Achievements

  • Club Clas loyalty program surpassed 5 million members
  • Won 'best in retail' customer service award for the fourth consecutive year

Governance Achievements

  • Applied to the Science Based Targets initiative
  • New green financing agreement linked to sustainability targets

Climate Goals & Targets

Long-term Goals:
  • Climate neutral and fully circular value chain by 2045
Medium-term Goals:
  • 20% reduction in total CO2e emissions (Scope 1, 2 & 3) by 2030
  • 50% renewable energy in suppliers’ production by 2030
  • 15-20% of co-workers with international background by 2025
Short-term Goals:
  • Climate neutrality in own operations (Scope 1+2) by 2026
  • 100% renewable energy in own operations by 2025

Environmental Challenges

  • High sourcing costs due to weak SEK and high transportation costs
  • Cautious consumers due to strained household budgets
  • Market volatility and economic uncertainty
  • Gross margin challenges
Mitigation Strategies
  • Focus on cost reduction through simplified work processes and organizational changes (reducing approximately 160 positions)
  • Closure of UK operations
  • Streamlining IT systems
  • Broadening purchasing to more manufacturing markets
  • Optimizing inventory management
  • Optimizing store network

Supply Chain Management

Supplier Audits: 212 social audits, 203 unannounced

Responsible Procurement
  • Code of Conduct
  • Social and environmental audits
  • Sedex membership

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting suppliers
Transition Risks
  • Carbon price regulations
  • Changing customer preferences
  • Increased ecodesign requirements
  • Investor concerns
Opportunities
  • Reduced emissions in own operations and supply chain
  • Expanding offering of low-impact products
  • Developing a more circular business model
  • More efficient production and distribution

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: Deloitte AB

Sustainable Products & Innovation

  • Recycled plastic storage boxes

Awards & Recognition

  • 'Newcomer of the year' in the SHE Index

Reporting Period: 2023-05-01 to 2024-04-30

Environmental Metrics

Total Carbon Emissions:304,419 tCO2e/year (Scopes 1, 2 & 3)
Scope 1 Emissions:56 tCO2e/year
Scope 2 Emissions:543 tCO2e/year
Scope 3 Emissions:303,820 tCO2e/year
Renewable Energy Share:58% (market-based method)
Total Energy Consumption:32,652 MWh/year
Waste Generated:129 tons/year (from Insjön distribution centre, head office and ~10 stores)

ESG Focus Areas

  • Climate change
  • Diversity & Inclusion
  • Supply chain responsibility
  • Children's rights
  • Circular economy

Environmental Achievements

  • Reduced carbon emissions in own operations (Scopes 1+2) by 62% from 2019 baseline.
  • Achieved 58% renewable energy share in own operations using market-based method.
  • Improved energy efficiency by 33% in stores since 2014.
  • Spare parts now available in all stores.

Social Achievements

  • Increased number of sustainability ambassadors to over 300.
  • Employee attendance at 93.6% (target 96%).
  • eNPS score of 36 (market average 16).

Governance Achievements

  • Board diversity improved (specific figures not explicitly stated but mentioned as a goal).
  • Implemented a new green financing agreement incorporating climate neutrality targets.
  • All board members completed Clas Ohlson's internal sustainability courses.

Climate Goals & Targets

Long-term Goals:
  • Climate neutral and fully circular throughout the value chain by 2045.
Medium-term Goals:
  • Halve emissions throughout the value chain by 2030.
  • 50% renewable energy in production at suppliers by 2030.
  • Fossil-free transportation in the Nordic region by 2030.
  • 30% reduction in energy consumption in stores by 2030.
Short-term Goals:
  • Climate neutral in own operations (Scopes 1+2) by 2026.
  • 100% renewable energy in own operations by 2025.
  • Increase spare part volume by 20%.

Environmental Challenges

  • Weak SEK impacting purchasing costs.
  • Customer spending pullback due to inflation and high mortgage rates.
  • Geopolitical uncertainty and macroeconomic challenges.
  • Increased competition in the retail sector.
  • Supply chain disruptions due to extreme weather events.
Mitigation Strategies
  • Streamlining business operations to improve efficiency and lower costs.
  • Simplification of IT landscape to reduce costs.
  • Expansion of store network and refurbishment of existing stores.
  • Continued focus on relevant product assortment and effective marketing.
  • Acquisition of Spares to strengthen core business.
  • Diversification of supply chain (purchasing offices in Poland and Vietnam).

Supply Chain Management

Supplier Audits: 465 audits of suppliers in high-risk countries.

Responsible Procurement
  • Code of Conduct
  • Code of Business Ethics
  • Third-party audits (BSCI).

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting supply chain.
Transition Risks
  • Carbon price regulations
  • Changing customer preferences
  • Increased ecodesign requirements.
Opportunities
  • Reduced emissions through efficient operations and supply chain.
  • Expanding the offering of low-emission products.
  • Developing a more circular business model.

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: Deloitte AB

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)

Initiatives contribute to these goals through emissions reduction, renewable energy use, circular economy practices, and responsible supply chain management.

Sustainable Products & Innovation

  • Energy-efficient products
  • Products with recycled materials
  • Spare parts.

Awards & Recognition

  • Climate Leader in Europe (Financial Times and Statista)
  • Second place in Sweden in the ‘Hobby & Leisure’ category in Sustainable Brand Index.
  • Seventh place (of 130 listed companies) in Sustainable Companies 2023 survey.