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)