Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Used 14.2 GWh of bioenergy for heating at its plants.
• Recycled 216 tonnes of foamed plastic offcuts.
• Sold 469 tonnes of leather offcuts to producers of small articles.

Social Achievements

• Seven apprentices received certificates of completed apprenticeship.
• Continued to provide Norwegian language tuition to a large number of employees.
• Christmas donation allocated to welfare initiatives for the elderly in local communities.

Governance Achievements

• Endorsed the UN Global Compact.
• Published an updated version of its Code of Conduct and anti-corruption policy.
• Established a remuneration committee and an audit committee.

Climate Goals & Targets

Environmental Challenges

• Decline in sales in the period 2011-2014, partly due to overall market situation and loss of market share due to low product development rate.
• Unsatisfactory results in Ekornes Beds AS in recent years.
• Downturn in operating margins in recent years despite cost-cutting measures.

Mitigation Strategies

• Launched new Stressless® City and Stressless® Metro models, followed by the largest new product launch in company history (14 new models).
• Launched new bed concept Svane® 630™.
• Efforts to adjust the cost base to the revenue stream will continue in 2015.

Supply Chain Management

Responsible Procurement

• Sets standards for suppliers through purchasing specifications that balance requirements for quality, environmental friendliness, and sustainability.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, ISO 9001, ISO 14001

Sustainable Products & Innovation

• Stressless® City, Stressless® Metro, Stressless® Signature base with BalanceAdapt™ system, Stressless® YOU collection, Svane® 630™ bed collection.

Awards & Recognition

• 1983 Export Award
• 2010 Interiors Monthly awards ("Best Overseas Furniture Manufacturer", "Best Marketing Support"), Stockman Prize
• 2011 Visual Grand Prix gold medal (Japan), Hong Kong’s Most Valuable Companies
• 2012 Norwegian Award for Design Excellence (Stressless® Jazz)
• 2013 Interiors Monthly awards ("Best Marketing Support", "Best Recliner Manufacturer")
• 2014 Driving Force Prize (Ekornes Grodås), ScanStar and WorldStar awards (packaging), Coastal Living 2015 Design Award (Stressless® City)

Environmental Metrics

ESG Focus Areas

• People
• Product
• Planet

Environmental Achievements

• Increased recycling rate in Stressless production to 80%
• Reduced electricity consumption at Norwegian and American production plants by 15% (from 2015)
• Launched recycled styropor packaging, Styropor® Ccycled™, saving at least 50 percent of CO2 compared with conventional Styropor®

Social Achievements

• Received the Diversity Prize for 2021 in Møre og Romsdal county for conscious work to exploit the potential of diversity
• 45% of employees are women

Governance Achievements

• Endorsed the UN Global Compact since 2009
• Has a Code of Conduct and anti-corruption policy

Climate Goals & Targets

Environmental Challenges

• Challenging logistics and inflated prices on critical input factors increased Ekornes’ overall cost base in 2021, impacting margins
• Sea freight constraints
• Increased cost on raw material and input factors, particularly during the second half of the year, negatively impacting margins in the fourth quarter.

Mitigation Strategies

• Increased prices on most products
• Significant efforts were taken to secure distribution capacity
• Adjusted campaign programmes

Supply Chain Management

Supplier Audits: All suppliers are risk and precision evaluated every year

Responsible Procurement

• Ekornes Supplier Code of Conduct
• Use of only FSC-certified materials

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Stressless® Dining with removable covers
• Stressless® Dining chairs completely separable

Awards & Recognition

• Diversity Prize for 2021 in Møre og Romsdal county

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption at Norwegian and American production plants by 15% by 2023 (compared to 2015 baseline).
• Secured biofuel transportation line between Oslo and Ikornnes, reducing carbon footprint.
• Implemented a project to increase water recirculation in Thailand facility.

Social Achievements

• Reduced annual operating costs by more than NOK 200 million and working capital by over NOK 400 million.
• Zero incidents of discrimination and human rights violations in 2023.
• Implemented comprehensive health and safety training programs in Lithuania.

Governance Achievements

• Implemented a new vision and values in 2018.
• Updated Code of Conduct and anti-corruption policy in December 2013.
• Conducted annual supplier audits assessing compliance with Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions with reduced consumer demand due to high inflation and rising living costs.
• Disrupted supply chains and rising input material prices.
• Weakened order intake for Stressless® in Q4 2023.

Mitigation Strategies

• Implemented initiatives to reduce costs and safeguard profitability (Focus 23 program).
• Restructured Asian operations, concentrating production in Thailand and discontinuing operations in Vietnam.
• Initiated further operational capacity adjustments in January 2024, announcing temporary redundancies at Stressless® facilities in Norway.

Supply Chain Management

Supplier Audits: Annual supplier audit program.

Responsible Procurement

• Supplier Code of Conduct covering human and labor rights, environmental regulations, and anti-corruption.
• Use of FSC® certified wood and LWG certified leather.

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather events, droughts

Transition Risks

• Rising energy prices, limited availability of renewable energy, increased carbon pricing, higher transportation costs, regulatory changes

Reporting Standards

Frameworks Used: EU Corporate Sustainability Reporting Directive (CSRD), EU Taxonomy Regulation

Certifications: ISO 14001, FSC®

Sustainable Products & Innovation

• Stressless® Sky mattress
• Recycled styropor packaging
• Recycled plastic in packaging
• Washable covers for Stressless® Dining