Climate Change Data

Ontex Group NV

Climate Impact & Sustainability Data (2012-2014, 2013 to 2015, 2016, 2021, 2022)

Reporting Period: 2012-2014

Environmental Metrics

Total Energy Consumption:200 GWh/year (approx.)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • MOLTEX Nature no.1 diaper won the “Green Brand” seal of quality and came second place in the “product” category of the annual ECOCARE Awards.
  • Entire “Serenity” product range certified with Environmental Product Declarations (EPDs) in 2013.
  • Reduced raw materials by 3% and packaging materials by 5% from 2009 to 2014 (with exceptions in some categories).

Social Achievements

  • Established a new Group-level HR function to improve global people management.
  • Segovia, Spain facility received the Workplace Conditions Assessment Award from Intertek with a score of 94%.
  • Launched a health and safety campaign with safety-themed photographs featuring employees’ children.

Governance Achievements

  • Implemented a Group-wide Compliance Program covering policies, procedures, training, risk prioritization, monitoring, investigation, and reporting.
  • Achieved high scores (85% to 98%) on a questionnaire about the Business Code of Conduct and business integrity policies.

Climate Goals & Targets

Short-term Goals:
  • Certify one additional production site to ISO 14001 in 2016 and two additional production sites to ISO 50001 in 2015.
  • Reduce the carbon footprint of logistics by 20% by 2017 (2012 baseline).

Environmental Challenges

  • Significant environmental impact from the industry (trees for pulp, energy demand, waste, distribution).
  • Limited access to hygiene products in some parts of the world.
  • Building and maintaining awareness of sustainability throughout the organization.
Mitigation Strategies
  • Improving eco-efficiency of products, production processes, and logistics.
  • Establishing production facilities in various parts of the world to increase access.
  • Publishing a Sustainability Report to emphasize commitment and build awareness.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Sustainability questions in supplier audits
  • Sustainability questionnaire for suppliers
  • Chain-of-custody certificates

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 guidelines, Core option

Certifications: ISO 14001, ISO 50001, ISO 9001

Sustainable Products & Innovation

  • MOLTEX Nature no.1 diaper
  • Eco-design products

Awards & Recognition

  • Green Brand Award – MOLTEX
  • Second place ECOCARE Awards – MOLTEX Nature no.1
  • Workplace Conditions Assessment Award – Segovia plant

Reporting Period: 2013 to 2015

Environmental Metrics

Total Carbon Emissions:72,600 tons/CO2e (2015)
Total Energy Consumption:255,528 MWh (2014)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 25% reduction in the weight of premium Ontex baby diapers over 15 years
  • 60% of plants + Ontex HQ certified to ISO 14001 environmental management system
  • 40% of plants + Ontex HQ certified to ISO 50001 energy management system
  • 100% of our pulp originates from sustainable resources

Social Achievements

  • Launched 'Caring4You' employee well-being program
  • 85% of employees are engaged, understand and believe in company goals
  • 30% more employees participated in compliance training in 2015 compared to 2014

Governance Achievements

  • Established Local Compliance Charters
  • Established Compliance Steering Committee
  • Implemented Group Speak-up Policy

Climate Goals & Targets

Long-term Goals:
  • Vision 2020: To be a socially responsible partner for consumers, customers, employees and shareholders by 2020
Medium-term Goals:
  • At least 50% of plants OHSAS 18001 certified by 2020
  • Specific energy consumption reduction: 10% by 2020 (vs 2015)
  • Zero waste from production sent to landfill by 2020
  • 100% response to yearly sustainability questionnaire from advanced and partner suppliers (by 2020)
  • Launch the Partnership Tracker including sustainability and aim for commitment (and actions) from all suppliers (by 2020)
  • Accomplish a yearly sustainability program with our partner suppliers (by 2020)
  • Reduce raw material and packaging use per product (by 2020)
  • 100% compliance with defined product safety rules in audits (by 2020)
  • 100% documented safety clearance on active used materials (by 2020)
Short-term Goals:
  • Determine corporate values (by end of 2015)
  • Conduct employee engagement survey (by end of 2015)

Environmental Challenges

  • Role-modeling sustainability at all levels of Ontex
  • Expanding sustainability focus beyond cost savings to include ecological and social aspects
  • Considering the entire value chain, from suppliers to product end-of-life
Mitigation Strategies
  • Vision 2020 to embed sustainability throughout the organization
  • Initiatives to better understand markets and consumers to create desired products and services
  • Partnership Program to assess and improve supplier relationships, including sustainability criteria

Supply Chain Management

Supplier Audits: 55 organizations evaluated in 2015 based on Supplier Code of Conduct

Responsible Procurement
  • Supplier Code of Conduct
  • Partnership Program
  • Partnership Tracker

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 guidelines, Core option

Certifications: ISO 14001, ISO 50001, ISO 9001, OHSAS 18001 (planned for 2016 at HQ and Turkey)

Sustainable Products & Innovation

  • Eco-diapers

Reporting Period: 2016

Environmental Metrics

Total Carbon Emissions:54.7 ktCO2 (2015)
Renewable Energy Share:45% (2016)
Total Energy Consumption:181,073,496 kWh (2016)
Waste Generated:32,495 tons (2016)

ESG Focus Areas

  • Sustainable Growth
  • People at the Heart
  • Human Rights and Business Ethics
  • Responsible Production

Environmental Achievements

  • Reduced carbon emissions by 28% between 2014 and 2015
  • 99% of cotton comes from organic sources
  • 100% of wood-based fiber comes from certified or controlled sources
  • 89% of waste recycled or incinerated for energy recovery in 2016
  • Reduced CO2 emissions per cargo unit by 9.3% in 2016

Social Achievements

  • 5,500 people joined adult care training program
  • 85% of employees agree Ontex looks after its people and the environment
  • 7 manufacturing sites supported local social initiatives
  • Zero fatalities across all Ontex sites

Governance Achievements

  • 59% of direct spend material suppliers signed the Supplier Code of Conduct by the end of 2016
  • International Compliance Day launched
  • Over 56% of employees responded to voluntary online compliance questionnaire with an average score of 98%

Climate Goals & Targets

Long-term Goals:
  • Zero production waste to landfill by 2020
  • All main production plants conform to SA8000 by 2025
Medium-term Goals:
  • All main production sites certified to ISO 14001 and ISO 50001 by 2020
  • Reduce scope 1 and 2 CO2 emissions by 20% compared with 2015 by 2020
  • Reduce electricity consumption by 10% compared with 2016 by 2020
  • 100% of electricity from sustainable sources by 2020
  • 50% of main production sites OHSAS 18001 certified by 2020
  • Accident frequency rate below 6.5 by 2020
Short-term Goals:
  • All fiber to originate from certified or controlled sources by end of 2017
  • All cotton used in tampons to come from organic resources by end of 2018
  • All direct spend suppliers to have signed Code of Conduct by end of 2017
  • Achieve CDP rating of B by end of 2017
  • Reduce CO2 emissions of goods transport by 20% compared with 2012 by end of 2017

Environmental Challenges

  • 7.63% increase in occupational accidents in 2016
  • 11% of waste sent to landfill in 2016
  • Need to reduce the environmental impact of products while meeting consumer demands for comfort and aesthetics
  • Addressing end-of-life waste issues in emerging countries
Mitigation Strategies
  • Established Group Health and Safety Steering Committee
  • Hired dedicated person to lead safety initiatives
  • Implementing ISO 14001 and ISO 50001 standards
  • Working with EDANA Waste working group to improve waste management in emerging countries
  • Investing in eco-innovation and exploring bio-based materials

Supply Chain Management

Supplier Audits: About 70 supplier audits conducted in 2016

Responsible Procurement
  • Supplier Code of Conduct
  • Sustainability performance monitoring through online questionnaires
  • Supplier sustainability awards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core option), UN Sustainable Development Goals (SDGs)

Certifications: ISO 14001, ISO 50001, OHSAS 18001 (some plants)

UN Sustainable Development Goals

  • Responsible Consumption and Production
  • Good Health and Well-being
  • Quality Education
  • Affordable and Clean Energy
  • Climate Action
  • No Poverty
  • Reduced Inequalities
  • Life on Land
  • Partnerships for the Goals
  • Peace, Justice and Strong Institutions
  • Decent Work and Economic Growth

The report details how Ontex's initiatives contribute to these goals.

Sustainable Products & Innovation

  • Bio Baby brand diapers

Awards & Recognition

  • COOP Sustainability Award
  • Green Brands award (Moltex)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:2090644 tCO2e (Scope 3)
Scope 1 Emissions:15567 tCO2e
Scope 2 Emissions:18587 tCO2e
Scope 3 Emissions:2090644 tCO2e
Renewable Energy Share:80% of total energy consumed
Total Energy Consumption:431697 MWh
Water Consumption:178143 m³
Waste Generated:46641 tons
Carbon Intensity:16.8 gCO2/€ product sold (Scope 1 & 2 market-based)

ESG Focus Areas

  • Climate action
  • Circular economy
  • Sustainable supply chain
  • Building trust

Environmental Achievements

  • Reduced Scope 1 & 2 emissions market-based by 53% since 2018
  • Increased renewable electricity to 91% of total electricity purchased
  • Increased total renewable energy to 80% of total energy consumed
  • 93% of sites ISO 14001 certified
  • 96% of packaging uses recycled paper and board
  • 83% of fluff pulp from FSC®/PEFC™ certified sources
  • 48% of turnover from products with eco/health labels

Social Achievements

  • 93% of raw material & packaging suppliers signed Supplier Code of Conduct
  • 100% of new suppliers screened using social criteria
  • Reduced occupational accident frequency rate to 2.96
  • 83% of employees participated in at least one training course
  • 85% of employees represented by a health & safety committee

Governance Achievements

  • Board oversees and approves Ontex sustainable development commitments
  • Executive Management Committee determines strategy and approves targets
  • Sustainability integrated into management agenda

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce Scope 1 & 2 emissions by 42% by 2030 (from 2020 baseline)
  • Reduce Scope 3 emissions by 25% by 2030 (from 2020 baseline)
  • Achieve carbon neutral operations by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Reducing Scope 3 emissions
  • Further improving supplier social audit coverage
  • Addressing water management and biodiversity impacts across the value chain
  • Managing risks associated with raw materials sourcing and deforestation
Mitigation Strategies
  • Implementing a value chain approach to sustainability
  • Working with suppliers to improve sustainability practices
  • Investing in sustainable innovations
  • Promoting responsible waste management and circular economy initiatives
  • Engaging with stakeholders to address concerns

Supply Chain Management

Supplier Audits: 7 BSCI audits conducted in 2021; 32% of risk suppliers covered by a valid social audit report

Responsible Procurement
  • Supplier Code of Conduct
  • Requirements and documentation on material safety & quality
  • Sourcing agricultural and forestry materials only from FSC® and PEFC™ certified suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI, Greenhouse Gas Protocol

Certifications: ISO 14001, ISO 50001, ISO 45001, BSCI, FSC, PEFC, OEKO-TEX 100, Asthma&Allergy Nordic, AllergyCertified

Third-party Assurance: PwC

UN Sustainable Development Goals

  • Not disclosed

The UN Sustainable Development Goals inspire Ontex's work and guide ambition setting; focus on SDGs where Ontex can have the biggest positive impact

Sustainable Products & Innovation

  • Eco-labeled products
  • Sustainable innovations (75% of top 20 innovations)

Awards & Recognition

  • Ecovadis Bronze Medal

Reporting Period: 2022

Environmental Metrics

Renewable Energy Share:93%
Total Energy Consumption:420 GWh/year

ESG Focus Areas

  • Climate action
  • Plastic reduction
  • Building trust through inclusive and fair society
  • Sustainable and transparent supply chain

Environmental Achievements

  • Reduced Scope 1-2 carbon emissions by 55% vs 2020
  • 93% of electricity consumption from renewable sources (100% in European plants)
  • Climate action targets approved by the Science Based Targets initiative
  • Received a top 'A' rating on climate action transparency from the Carbon Disclosure Project

Social Achievements

  • Donated more than 1.7 million products to charity, mainly focusing on Ukraine
  • Introduced a global onboarding program embedding key behavioral policies
  • Intensified talent review and succession planning process

Governance Achievements

  • Received a top ‘A’ rating for leadership in corporate transparency and performance on climate change from Carbon Disclosure Project
  • Revised the size and composition of the Board and its Committees
  • Reviewed the Management remuneration policy

Climate Goals & Targets

Long-term Goals:
  • Carbon neutral operations (scope 1-2) by 2030
Medium-term Goals:
  • Reduce emissions across operations (scope 1-2) with 80% by 2030
  • Reduce emissions in value chain (scope 3) by 25% by 2030 compared with 2020
  • Achieve gender parity by 2030
  • Achieve zero occupational accidents by 2030

Environmental Challenges

  • Unprecedented challenges including major war, global supply chain disruptions, and inflation
  • High inflation impacting cost base
  • Industry supply disruption
  • Supply chain disruptions due to geopolitical and economic turmoil
  • Volatility in demand and supply
  • Birth rate decline in large part of Europe
  • Volatility in supply requiring constant qualification of new materials and suppliers
  • Increasingly stringent environmental and sustainability regulations
  • Demand for technical skills
  • Tight labor market in many countries
  • Volatility in energy prices
  • Gas supply in Europe
  • Inflation level in services and equipment
Mitigation Strategies
  • Pricing initiatives and cost-saving efforts
  • Divesting emerging market businesses
  • Leadership and organizational changes
  • Transparency about cost drivers to customers
  • Cost-efficient operations
  • Minimizing scrap and operating efficient product platforms
  • Accelerated innovation
  • Shorter time for qualification process to mitigate supply chain risk
  • Less complex product portfolio
  • Less scrap waste in production process
  • Consolidating diverse asset base, optimizing networks, increasing robustness by manufacturing close to customers
  • Investing in faster, more reliable machines
  • Consolidating production in fewer production sites and fewer product lines
  • Agile approach to supply, leveraging market knowledge
  • Accelerated qualification processes for new suppliers
  • Flexibility in switching between suppliers
  • Ongoing and transparent communication with stakeholders
  • Establishing an approach of ensuring job security through performance
  • Regular third party intellectual property rights screening and legal analyses
  • Disciplined reporting and steering to assess impact on leverage
  • Initiatives to stimulate co-ownership of the business on working capital
  • Proceeds of discontinued operations will be used to lower the debt

Supply Chain Management

Responsible Procurement
  • Code of conduct
  • Supplier sustainability requirements

Climate-Related Risks & Opportunities

Transition Risks
  • Regulatory changes

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

  • Hybrid diaper with a reusable outer shell and disposable pad

Awards & Recognition

  • A-rating for leadership in corporate transparency and performance on climate change from CDP
  • B-rating for sustainable forestry from CDP