Hexatronic Group AB (publ)
Climate Impact & Sustainability Data (2022, 2023, 2024)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:973 + 8234 + 588280 tCO2e/year (Scope 1, 2, 3 respectively)
Scope 1 Emissions:973 tCO2e/year
Scope 2 Emissions:8234 tCO2e/year
Scope 3 Emissions:588280 tCO2e/year
Renewable Energy Share:40%
Total Energy Consumption:46787 MWh/year
ESG Focus Areas
- Strong business ethics
- Low climate impact
- Sustainable supply chain
- Diversity and gender equality
- Good health, safety, and working environment
- Social involvement
Environmental Achievements
- Calculated carbon footprint on 61% of total volume of products produced in-house (target 100% by 2025)
- Mapped scope 3 emissions
- Reduced energy intensity/MSEK sales by over 25% in 2022 compared to 2021
- Reduced scope 1-2 climate intensity/MSEK sales by 42% compared to 2021
- Reducing plastics in packaging
- Drum return projects
Social Achievements
- Launched a new sustainability organization with clear ownership and dedicated action teams
- Conducted an employee survey worldwide
- Health & wellness week for employees
- Training on Code of Conduct for all employees (91% completion)
- Training and workshops on diversity and gender equality
- Rolled out an Equal pay tool
- Corporate partner of the Hand in Hand project
- Supporting local initiatives (e.g., Dallas Children’s Advocacy Center)
Governance Achievements
- Launched updated Code of Conduct, Anti-corruption policy, and Tax policy
- Established a new sustainability organization with dedicated action teams for each priority area
- Regular risk monitoring and risk management process implemented
- Onboarding of new companies to Hexatronic’s sustainability work
Climate Goals & Targets
Long-term Goals:
- Reduce scope 1-3 GHG emissions by 50% by 2030
- Become a climate-neutral business within own operations by 2030
- Declare climate footprint for most products by 2030
- 90% of employees covered by a health and safety management system by 2030
- 100% calculated carbon footprint on products by 2030
- 100% Equal Pay Index by 2030
- 100% employees trained on Code of Conduct by 2030
- 90% spend from sustainability approved suppliers by 2030
Medium-term Goals:
- 90% employees covered by health and safety management system by 2030
- 60% spend from sustainability approved suppliers by 2030
- >35% women managers by 2030
- >40% women overall by 2030
- >40% women in Executive Management by 2030
- 76% Employee Satisfaction Index by 2030
- 86% Employee Loyalty Index by 2030
- 100% employees finding Hexatronic makes a positive difference in society by 2030
Short-term Goals:
- 100% employees trained on Code of Conduct by 2025
- 30% spend from sustainability approved suppliers by 2025
- 75% employees covered by ISO 45001 or similar by 2025
- 75% calculated carbon footprint on products by 2025
- >30% women managers by 2025
- >35% women overall by 2025
- >30% women in Executive Management by 2025
- 75% Employee Satisfaction Index by 2025
- 80% employees finding Hexatronic makes a positive difference in society by 2025
- 93% Equal Pay Index by 2025
Environmental Challenges
- Increased pressure on climate transition
- Increased regulatory environment
- Increased focus on companies’ sustainability performance
- Supply chain disruptions caused by severe weather events
- Disruptions in own operations caused by severe weather events
- Increased energy consumption due to expanded operations in the USA and acquisitions
Mitigation Strategies
- Systematic work to become carbon neutral within own operations and reduce climate impact from value chains
- Staying on top of regulatory developments
- Sustainability high on the agenda
- Adequate insurance coverage for serious production disruptions
- Standard insurance solutions for each company
- Risk assessment and auditing with external advisors
- Exploring renewable energy certificates for US operations
Supply Chain Management
Supplier Audits: 6 audits conducted relating to sustainability (2022)
Responsible Procurement
- Code of Conduct for suppliers
- Sustainability approved supplier definition
- Risk-based approach to supplier assessment
- Digital training for purchasing positions on forced labor, environmental impact, and sustainable sourcing
Climate-Related Risks & Opportunities
Physical Risks
- Severe weather events (flooding, wildfires, severe thunderstorms)
- Water stress
- Extreme weather
Transition Risks
- Carbon price development
- Increased costs due to carbon taxation
- GHG emissions price volatility
- Regulatory transition
- Technology development
- Consumer preferences
- Market shifts in the energy system
Opportunities
- Increased business opportunities from low-carbon technologies and materials efficiency
- Competitive advantage with increased business opportunities for Hexatronic Group
- Expansion of energy-efficient network solutions
Reporting Standards
Frameworks Used: UN Global Compact, Agenda 2030, TCFD
Certifications: ISO 14001 (43% of Group companies), ISO 45001 (32% of employees)
Third-party Assurance: Öhrlings PricewaterhouseCoopers AB
UN Sustainable Development Goals
- Goal 5
- Goal 7
- Goal 8
- Goal 9
- Goal 10
- Goal 12
- Goal 13
- Goal 16
Alignment with SDGs is described for each priority area.
Sustainable Products & Innovation
- Products with smaller carbon footprint
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:13,078 tCO2e
Scope 1 Emissions:1,125 tCO2e
Scope 2 Emissions:11,953 tCO2e
Scope 3 Emissions:289,701 tCO2e
Renewable Energy Share:32%
Total Energy Consumption:56,859 MWh
Carbon Intensity:39 tCO2e/MSEK Sales
ESG Focus Areas
- Planet
- People
- Ethics
Environmental Achievements
- Joined the Science Based Targets initiative (SBTi) to set ambitious greenhouse gas emission reduction targets.
- Launched Hexatronic Cables & Interconnect Systems eco-ducts with 30–70 percent reduced carbon footprints.
- Switched to 100 percent renewable electricity in the Neulengbach plant.
- Optimized package sizes to reduce GHG emissions from transports.
Social Achievements
- Linked executive pay to sustainability targets.
- All employees completed Code of Conduct training.
- Sustainability weeks focusing on health and well-being.
- Updated gender pay gap analysis.
- Human Rights Due Diligence Assessment.
Governance Achievements
- Updated Supplier Code of Conduct with enhanced supplier expectations related to paying a living wage, supply chain management and due diligence.
- Strengthened procedures around sanctions lists.
- Development of ESG supplier risk tool.
- Supplier assessments to drive and ensure compliance to our requirements.
Climate Goals & Targets
Long-term Goals:
- Climate neutral operations (Scope 1 and 2) by 2030.
- Calculate the product carbon footprint of our products produced in-house and share with our customers upon request by 2030.
- Secure a sustainable supply chain with regard to the environment, human rights, fair employment conditions, a good working environment, and anti-corruption by 2030.
Medium-term Goals:
- 75 percent of employees covered by a health and safety management system by 2025.
- Minimum 40 percent gender equality by 2030.
- 90% of purchased volume from sustainability approved suppliers by 2030.
Short-term Goals:
- Climate neutral operations (Scope 1 and 2) by 2030.
Environmental Challenges
- Weaker market in Fiber Solutions in the second half of the year due to higher interest rates and cost inflation impacting investment willingness.
- Softer market conditions primarily in the US and Germany leading to negative organic sales growth in the second half of 2023.
Mitigation Strategies
- Worked down inventory levels.
- Initiated a cost reduction program expected to result in annual savings of approximately MSEK 90.
- Continued growth in Harsh Environment and Data Center to strengthen diversification.
- New senior term loan facility agreement of MSEK 500.
Supply Chain Management
Supplier Audits: 4 in 2023
Responsible Procurement
- Updated Supplier Code of Conduct
- Supplier environmental requirements
- Sustainability screening of direct material and transport suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Severe weather events causing supply chain disruptions
- Climate hazards and indirect effects such as political instability, pandemics
Transition Risks
- Increased pricing of GHG emissions
- Higher purchasing costs and shortage of renewable energy and raw materials with low carbon footprint
- Higher costs for material and energy efficient equipment
Opportunities
- Clean technologies (climate neutral electricity)
- Low carbon footprint products
- Green financing
Reporting Standards
Frameworks Used: UN Global Compact, Science Based Targets initiative (SBTi), EU Corporate Sustainability Reporting Directive (CSRD)
Certifications: ISO 14001, ISO 9001, ISO 45001
Third-party Assurance: Öhrlings PricewaterhouseCoopers AB
UN Sustainable Development Goals
- SDG 5
- SDG 7
- SDG 8
- SDG 9
- SDG 10
- SDG 12
- SDG 13
- SDG 16
Each sustainability focus area with related goals and metrics is connected to the Sustainable Development Goals and to the Ten Principles of the UN Global Compact.
Sustainable Products & Innovation
- Hexatronic Microducts Eco
- Hexatronic Cables & Interconnect Systems eco-ducts
- New WiFi access point device that consumes less electricity
Awards & Recognition
- Ahlsell Supplier Sustainability Award
- Hexatronic Sustainability Award
Reporting Period: 2024
Environmental Metrics
ESG Focus Areas
- Planet
- People
- Ethics
Climate Goals & Targets
Supply Chain Management
Responsible Procurement
- high standards of quality, and environmental and social responsibility