Climate Change Data

Alligo AB (publ)

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:680,000 tonnes CO2e
Scope 1 Emissions:0.2%
Scope 2 Emissions:0.3%
Scope 3 Emissions:94.7%

ESG Focus Areas

  • Responsible supplier relationships
  • Customer satisfaction
  • Employee health and safety
  • Gender equality
  • Climate impact
  • Product quality and safety
  • Environmental impact and chemicals
  • Sustainable and circular approach
  • Anti-corruption
  • Business ethics

Environmental Achievements

  • Mapped climate emissions, showing 95% derive from products.
  • 71% of Alligo’s own brand clothing is certified in accordance with OEKO-TEX® STANDARD 100.

Social Achievements

  • All concept brands exceeded the Customer Satisfaction Index (CSI) target of >75.
  • Employee survey response rate of 83% in Q4 2022.
  • eNPS improved from -13 in 2021 to +5 in 2022.
  • 86% of employees had an employee review.

Governance Achievements

  • 100% of key suppliers signed Alligo’s Supplier Code of Conduct.
  • Implemented a whistleblowing function, with 9 cases reported in 2022.

Climate Goals & Targets

Environmental Challenges

  • High inflation and increased interest rates.
  • Disruptions to logistics and sales processes due to system changes.
  • Supply chain disruptions due to the war in Ukraine and Covid-19.
  • Maintaining a sustainable and circular approach.
  • Increased digitization requirements.
  • Climate-related risks.
  • Wage inflation in manufacturing countries.
  • Risks related to sales and gross margin.
  • Product risks.
  • Risks in the flow of goods.
  • Risks in the organization.
  • Credit and counterparty risks.
  • Acquisition and integration risks.
  • Business ethics risks and responsibility in the supply chain.
  • Raw material price fluctuations.
  • Exchange rate fluctuations.
  • Interest rate fluctuations.
  • Financing risk.
  • Impairment of intangible assets.
Mitigation Strategies
  • Continuous monitoring of pricing to reflect costs while remaining competitive.
  • Concentrated logistics operation in Sweden for better service.
  • Increased stockpiling to ensure product availability.
  • Securing alternative suppliers and diversifying production locations.
  • Strategic sustainability work and collaborations in the value chain.
  • Initiatives to digitize operations.
  • Work to reduce climate impact of own operations and value chain.
  • Careful analysis and planning for wage inflation.
  • Broad customer base and diversified industry segments.
  • Product testing and certifications to ensure quality and safety.
  • Robust IT structure with stronger backup and redundancy systems.
  • Streamlining logistics and increasing automation.
  • Well-developed processes for internal communication and management.
  • Proven acquisition process.
  • High ethical standards and Supplier Code of Conduct.
  • Adjusting prices in line with raw material price changes.
  • Foreign exchange forward contracts to manage currency risks.
  • Short-term fixed interest periods on loans.
  • Continuous monitoring of goodwill and other intangible assets.

Supply Chain Management

Supplier Audits: 47 factories audited in 2022

Responsible Procurement
  • Supplier Code of Conduct based on amfori BSCI and UN Global Compact principles.
  • Restricted chemicals lists.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting production
Transition Risks
  • Regulatory changes, market shifts

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, OEKO-TEX® STANDARD 100

Third-party Assurance: KPMG

UN Sustainable Development Goals

  • Goal 8: Decent work and economic growth
  • Goal 12: Responsible production and consumption
  • Goal 13: Climate action

Alligo's material sustainability issues are linked to these SDGs.

Sustainable Products & Innovation

  • Own brand clothing with longer lifespan
  • Increased use of recycled polyester

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:699,076 tCO2e/year
Scope 1 Emissions:1,603 tCO2e/year
Scope 2 Emissions:2,465 tCO2e/year
Scope 3 Emissions:695,008 tCO2e/year
Total Energy Consumption:24,484 MWh/year
Waste Generated:92 tons/year

ESG Focus Areas

  • Responsible supplier relationships
  • Customer satisfaction
  • Health
  • Gender equality
  • Climate impact

Environmental Achievements

  • Joined the Science Based Targets initiative (SBTi) to develop science-based emission reduction targets by the end of 2025.
  • Increased proportion of suppliers meeting Alligo’s supplier standard (67% in 2023 from 65% in 2022).
  • Reduced total emissions from outward transport by 11%.

Social Achievements

  • Increased proportion of female managers to 24.4% (from 21.7%).
  • Reduced sickness absence to 5.2% (from 5.0%).
  • Implemented a new digital platform for competence development.

Governance Achievements

  • Updated Alligo’s Code of Conduct to better meet stakeholder requirements and expectations.
  • Developed a mandatory online training course on the Code of Conduct (74% completion rate).

Climate Goals & Targets

Long-term Goals:
  • Become a leader in sustainable development in the industry.
Medium-term Goals:
  • Achieve >95% of total purchase value from suppliers meeting Alligo’s supplier standard.
  • Achieve a Customer Satisfaction Index (CSI) of >75.
  • Reduce sickness absence to <5%.
Short-term Goals:
  • Develop specific, science-based targets for reducing emissions in scopes 1, 2, and 3 by the end of 2025.

Environmental Challenges

  • Market slowdown in Sweden and Finland, impacting most customer segments.
  • Inflation and higher interest rates creating market uncertainty.
  • Increased price sensitivity among customers.
  • Stringent sustainability requirements from larger and public sector customers.
  • Climate change risks affecting the entire value chain.
  • Wage inflation in manufacturing countries.
Mitigation Strategies
  • Streamlined operations and adapted cost structure.
  • Continuous pricing work to balance cost increases with competitiveness.
  • Improved sales and assortment management.
  • Increased proportion of small and medium-sized customers.
  • Reduced tied-up capital and strong cash flow.
  • Streamlining of concept brands to one per country.
  • Active work on acquisitions to strengthen offering and position.
  • Work to reduce climate impact of own operations and value chain.
  • Phasing out PFAS in own brands.

Supply Chain Management

Supplier Audits: 52 audits in 2023

Responsible Procurement
  • Supplier Code of Conduct
  • Chemical Restriction Lists
  • Self-assessments
  • Factory visits
  • Third-party audits
  • amfori BSCI membership

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting production in supplier countries.
Transition Risks
  • New legislation, taxes, and policy instruments related to climate change and product regulations.

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, OEKO-TEX® STANDARD 100

UN Sustainable Development Goals

  • Goal 8: Decent work and economic growth
  • Goal 12: Responsible consumption and production
  • Goal 13: Climate action

Alligo's initiatives contribute to these goals through responsible supplier relationships, sustainable product development, and emission reduction efforts.

Sustainable Products & Innovation

  • Products with longer lifespans.
  • Use of recycled polyester.
  • Dope-dye coloring process to reduce water and chemical use.
  • Signal Lucence luminous tape.