Climate Change Data

VELUX Group

Climate Impact & Sustainability Data (2020, 2021, 2022)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:54,413 tCO2e
Renewable Energy Share:39%

ESG Focus Areas

  • Climate change
  • Biodiversity
  • Sustainable buildings
  • Diversity & Inclusion
  • Safety
  • Circular Economy
  • Responsible sourcing

Environmental Achievements

  • Reduced company carbon footprint by 59% compared to the 2007 baseline (exceeding the 50% target by 9%)
  • 97.8% of production waste reutilised
  • 99.6% FSC or PEFC certified wood in European windows

Social Achievements

  • Accident frequency four times lower than the comparable industry benchmark
  • Increased female senior managers to 23% (7 percentage points increase from 2019)
  • 86% of relevant employees completed anti-corruption training

Governance Achievements

  • 100% of suppliers signed the code of conduct

Climate Goals & Targets

Long-term Goals:
  • Become Lifetime Carbon Neutral by 2041 (100-year anniversary)
Medium-term Goals:
  • Become a carbon neutral company by 2030
  • Halve carbon emissions from the value chain by 2030
  • 30% of sold windows to have sensor-driven automation by 2030
  • 45% of all management positions held by women by 2030
  • 40% of senior management positions held by women by 2030
  • 3% of the workforce with disabilities by 2030
  • 1 accident per 1 million working hours by 2030
  • 0.2 lost working hours per 1,000 working hours by 2030
  • Single material, 100% recyclable packaging with zero plastic by 2030
  • 50% reduction in average non-utilised waste per produced window by 2030
  • 30% reduction in flights by 2030
  • 100% zero emission company cars by 2030
  • Good daylight conditions and fresh air in all new builds and renovations by 2030
  • At least 5 sustainable innovations by 2030
Short-term Goals:
  • Set a quantitative 2030 target for circular economy by 2021

Environmental Challenges

  • COVID-19 pandemic impacting operations and workflows
  • Increased accident frequency in 2020 due to COVID-19 related operational changes
Mitigation Strategies
  • Implemented measures to safeguard employee health and well-being during the pandemic
  • Continued focus on reducing accidents through VELUX Vision Zero and ISO 45001 certification

Supply Chain Management

Supplier Audits: 80

Responsible Procurement
  • Code of conduct for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), RE100, GHG Protocol

Certifications: ISO 50001, ISO 14001:2015, ISO 45001

UN Sustainable Development Goals

  • SDG 3 (Good Health and Well-being)
  • SDG 11 (Sustainable Cities and Communities)
  • SDG 13 (Climate Action)

The strategy contributes to 11 out of 17 SDGs, with the most significant contributions to SDGs 3, 11, and 13.

Sustainable Products & Innovation

  • VELUX Active

Reporting Period: 2021

Environmental Metrics

Scope 1 Emissions:28,496 tonnes CO2e
Scope 2 Emissions:45,049 tonnes CO2e (location based), 8,609 tonnes CO2e (market based)
Scope 3 Emissions:2,055,646 tonnes CO2e
Renewable Energy Share:78%

ESG Focus Areas

  • Climate change
  • Nature
  • Sustainable buildings
  • Diversity & Inclusion
  • Employee well-being
  • Responsible business practices
  • Circular economy

Environmental Achievements

  • Established Purchasing Power Agreements (PPA) for 100% renewable electricity by 2023.
  • Introduced new paper-based packaging in Europe and the US, replacing plastic-based packaging.
  • Launched the first forest conservation and restoration project in Uganda, estimated to capture around one million tonnes of CO2.

Social Achievements

  • Established a Global Diversity, Equity and Inclusion Steering Committee.
  • Launched the Build for Life concept, a set of design principles for sustainable buildings.
  • Maintained a strong focus on safety, resulting in a low accident rate.

Governance Achievements

  • Anchored the 2030 Sustainability Strategy as a priority in the overall Group corporate strategy.
  • Implemented a clear reporting structure within Sustainability and Finance teams.
  • Increased governance standards for sustainability reporting to the same level as financial reporting.

Climate Goals & Targets

Long-term Goals:
  • Company carbon neutral target by 2030 (scope 1 and 2).
  • Lifetime Carbon Neutral by 2041.
  • Capture 4.5 million tonnes CO2 through forest and biodiversity projects by 2041.
Medium-term Goals:
  • Achieve 100% renewable electricity by 2023.
  • 50% reduction of product carbon footprint by 2030.
  • 50% reduction of carbon footprint from the value chain by 2030.
  • 30% reduction in air travel and 100% zero emission cars by 2030.
Short-term Goals:
  • Reduce water consumption by 10% by 2025
  • 30% of the car fleet will have been replaced with zero-emission cars by 2025.

Environmental Challenges

  • Global shortage in supply of digital components.
  • Supply chain disruptions.
  • Complexity of accurately calculating scope 3 emissions.
  • Lack of harmonised waste standards in the EU.
  • Challenges in measuring the percentage of employees with disabilities due to local legislation and GDPR.
Mitigation Strategies
  • Established an internal climate pool of money to finance climate and energy projects.
  • Partnered with Schneider Electric to support decarbonisation efforts.
  • Developed a carbon footprint calculation tool for suppliers.
  • Developed long-term waste reduction plans.
  • Developed an approach to collect information related to disability in a confidential and GDPR-compliant manner.

Supply Chain Management

Supplier Audits: 76 completed audits

Responsible Procurement
  • Code of Conduct for suppliers.
  • VELUX Restricted Substance Management Standard.

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products and solutions.

Reporting Standards

Frameworks Used: GRI, SBTi, Greenhouse Gas Protocol (GHGP)

Third-party Assurance: EY (limited assurance)

UN Sustainable Development Goals

  • SDG 3 (Good Health and Well-being)
  • SDG 11 (Sustainable Cities and Communities)
  • SDG 13 (Climate Action)

VELUX's initiatives contribute to these goals through sustainable building design, healthy workspaces, and carbon emission reduction.

Sustainable Products & Innovation

  • Intelligent sensor-driven solutions for energy optimization.
  • Paper-based packaging.

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1991.4 Kt CO2e
Scope 1 Emissions:26 Kt CO2e
Scope 2 Emissions:43 Kt CO2e
Scope 3 Emissions:1991 Kt CO2e
Renewable Energy Share:98%

ESG Focus Areas

  • Climate change
  • Biodiversity
  • Circular economy
  • Diversity and inclusion
  • Employee health and safety
  • Responsible supply chain

Environmental Achievements

  • Reduced scope 1 and 2 emissions by 26.2 percentage points.
  • Increased share of renewable electricity to 98%.
  • 98% of packaging for VELUX Residential roof windows in Europe is now paper-based.
  • More than 600 tonnes of EPS/plastic saved in 2022 compared to 2021.
  • Enabled two new solar plants in southern Spain, generating 167 GWh of renewable electricity annually.

Social Achievements

  • Introduced a new Diversity, Equity and Inclusion (DEI) policy.
  • Improved lost workday case rate from 2.58 in 2021 to 1.63 in 2022.
  • Implemented the VELUX Care program to support employees returning to work after illness or surgery.

Governance Achievements

  • Obtained reasonable assurance on six key indicators in the ESG data table.
  • Updated the Code of Conduct for VELUX employees.
  • Updated the code of conduct for suppliers and improved supplier due diligence procedures.

Climate Goals & Targets

Long-term Goals:
  • Capture 4.5 million tonnes of CO2e through forest and biodiversity projects by 2041
Medium-term Goals:
  • 50% reduction of CO2e from value chain by 2030
  • 50% reduction of product carbon footprint by 2030
  • 40% of senior management positions and 45% of all management positions held by women by 2030
Short-term Goals:
  • 100% carbon neutral company by 2030
  • Implement DEI policy
  • Implement global travel policy

Environmental Challenges

  • Continued impact of the Covid-19 pandemic, supply chain disruptions, increased energy prices, economic turbulence, and difficulties in gathering data on employee disabilities.
  • Long delivery times for electric vehicles.
  • Challenges in defining and measuring disability due to GDPR legislation.
Mitigation Strategies
  • Established an emergency fund for colleagues in Ukraine affected by the war.
  • Permanently closed operations in Russia and Belarus.
  • Decreased production in European factories to retain staff (though redundancies were unavoidable).
  • Adjusted the target for measuring management diversity and defined a qualitative target instead.
  • Changed how employee disability is assessed to allow for self-reported data.
  • Engaged in dialogue to understand and break down perceived barriers to switching to electric vehicles.

Supply Chain Management

Supplier Audits: 71 completed audits

Responsible Procurement
  • Code of conduct for suppliers
  • Strategic partnerships with aluminium suppliers
  • Focus on sourcing low-carbon materials

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SBTi, UN Global Compact

Certifications: FSC, PEFC

Third-party Assurance: EY Godkendt Revisionspartnerselskab

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 13 (Climate action)
  • Goal 8 (Decent work and economic growth)
  • Goal 11 (Sustainable cities and communities)
  • Goal 12 (Responsible consumption and production)

Initiatives contribute to these goals through emission reductions, renewable energy use, sustainable product development, responsible supply chain management, and improved working conditions.

Sustainable Products & Innovation

  • Paper-based packaging
  • Sensor-driven automation in windows