Climate Change Data

Rusta AB (publ)

Climate Impact & Sustainability Data (2022-05 to 2023-04, 2023-05 to 2024-04)

Reporting Period: 2022-05 to 2023-04

Environmental Metrics

Renewable Energy Share:37% of distribution volume

ESG Focus Areas

  • Products
  • Environment
  • Social
  • Economic

Environmental Achievements

  • Reduced energy consumption by 12% in the distribution center and stores.
  • Saved more than 500 tonnes of virgin plastic from products and packaging.
  • 37% of distribution volume transported by renewable fuels.
  • 100% of container hauling transported with renewable fuels.
  • Saved 10,628 pallets (equal to 177 containers or trucks).

Social Achievements

  • Further developed external Code of Conduct and launched an internal version.
  • 88% co-worker survey participation rate.
  • Maintained record low level of defective customer returns.
  • Launched e-learning about sustainability.
  • Increased efficiency in waste handling in Finnish stores.
  • Deepened cooperation with Doctors Without Borders.

Governance Achievements

  • Updated sustainability strategy with emphasis on human rights, climate, and biodiversity.
  • Implemented a new policy with increased sustainability emphasis for company vehicles.

Climate Goals & Targets

Long-term Goals:
  • Climate neutral by 2045 (GHG scope 1, 2, 3).
Medium-term Goals:
  • Climate neutral by 2030 (GHG scope 1,2).
  • Eliminate consumer packaging on 25% of all Rusta products until 2026.
  • By 2023 all plastic products sold by Rusta shall be made of recyclable plastic.
  • By 2025, 50% of all plastic used in Rusta products will be produced from renewable sources or from recycled material.
Short-term Goals:
  • Reduce customer returns related to poor quality by 15% annually.
  • Increase share of suppliers at level “Good” to 75% in accordance with social requirements in the Rusta Code of Conduct by 2023.
  • Reduce energy consumption in Finnish stores by 10%.

Environmental Challenges

  • Rising prices for raw materials and energy.
  • Economic recession and high inflation affecting consumers.
  • Supply chain disruptions.
  • Availability of sustainable materials.
Mitigation Strategies
  • Simple operations, centralized purchasing, and efficient logistics to maintain low prices.
  • Continuous improvements in quality and sustainability work.
  • Major measures to reduce energy consumption.
  • Increased share of recycled raw materials.
  • Reduced unnecessary plastic in products and packaging.
  • Improved supplier quality evaluation.
  • Developed alternative sourcing strategies.

Supply Chain Management

Supplier Audits: 229 factories evaluated based on Supplier Quality Evaluation (SQE) guidelines in 2022/23; 249 factories evaluated according to social criteria; 245 evaluated according to environmental criteria.

Responsible Procurement
  • Code of Conduct
  • Supplier Quality Evaluation (SQE)
  • Supplier environmental evaluation
  • Regular visits to suppliers

Climate-Related Risks & Opportunities

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

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

  • 1, 2, 3, 5, 8, 9, 11, 12, 13, 15, 17

Rusta aligns its operations with 11 of the UN's Sustainable Development Goals.

Reporting Period: 2023-05 to 2024-04

Environmental Metrics

Total Carbon Emissions:1,166,428 tCO2e/year
Scope 1 Emissions:154 tCO2e/year
Scope 2 Emissions:3,344 tCO2e/year
Scope 3 Emissions:1,162,929 tCO2e/year
Renewable Energy Share:84% (own operations)
Waste Generated:221,970 tons/year (hazardous) + 9,435,677 tons/year (non-hazardous)
Carbon Intensity:104.93 tCO2e/MSEK net sales

ESG Focus Areas

  • Products
  • Social responsibility
  • Environment
  • Economic

Environmental Achievements

  • Reduced greenhouse gas emissions from transport and distribution by 6.8 percent
  • Reduced energy consumption by more than 10% in 19 Rusta stores
  • Invested in a new type of heavy electric truck, enabling daily emission-free transport

Social Achievements

  • Continued strong membership growth in Club Rusta (5.6 million members, an increase of almost 18 percent)
  • In 2023/24, 97% of all co-workers reported not being subjected to bullying or harassment
  • All new employees digitally sign Rusta’s internal Code of Conduct
  • All suppliers must sign Rusta’s external Code of Conduct

Governance Achievements

  • Successful IPO on Nasdaq Stockholm

Climate Goals & Targets

Long-term Goals:
  • Climate neutrality (GHG scope 1, 2 and 3) by 2045
  • Rusta aims to use only renewable and/or recycled materials by 2030
Medium-term Goals:
  • Climate neutrality (GHG scope 1 and 2) by 2030
  • By 2025/26, 100% of our packaging materials will be recyclable
  • By 2025/26, 25% of our assortment will be sold without customer packaging
  • Annual goal to save more than 10,000 pallets
  • Annual increase in certified packaging materials by 5%
Short-term Goals:
  • Carry out gap analysis by 2025 based on the latest materiality analysis
  • Increase the share of suppliers at the level “Good” or higher to 55% during the 2024/25 financial year (environmental requirements)
  • Increase the share of suppliers at the level “Good” or higher to 85% during the 2024/25 financial year (social requirements)
  • 15% fewer defective customer returns annually
  • Annual savings of over 10,000 pallets
  • 100% fossil-free energy purchased by 2025
  • By 2025, 50% of all plastic used in Rusta products will be produced from renewable sources or from recycled materials

Environmental Challenges

  • Rusta’s IT systems suffered disruptions due to an incident at hosting provider Tietoevry, negatively affecting sales and profitability
  • Uncertainty in the global economy (supply chain disruptions, energy market volatility, higher interest and inflation rates)
Mitigation Strategies
  • Mitigation of the negative impact during the IT incident
  • Continuous monitoring of market conditions and adaptation to demand
  • Currency hedging transactions (forward contracts for USD)

Supply Chain Management

Supplier Audits: 198 environmental evaluations + 271 social evaluations

Responsible Procurement
  • External Code of Conduct (CoC) signed annually by all suppliers
  • Supplier environmental and social evaluations
  • Supplier Quality Evaluation (SQE) tool
  • Regular visits to suppliers and factories

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather, rainfall, floods, landslides, rising sea levels
Transition Risks
  • Market impact and changes in consumer behaviour
Opportunities
  • Offering a sustainable assortment at a low price
  • Driving innovation through proactive work on environmental risks

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

  • Goal 7
  • Goal 13

Rusta’s activities in the area of sustainability are aligned with the UN Sustainable Development Goals.

Sustainable Products & Innovation

  • Ellen yarn (100% recycled polyester)
  • Villastad outdoor furniture (FSC-certified acacia)