Climate Change Data

Environmental Metrics

ESG Focus Areas

• Good Working Conditions
• Efficiency in the Value Chain
• Sustainable Business Development
• Business Ethics

Environmental Achievements

• Increased share of renewable energy in total energy consumption (specific percentage not provided)
• Reduced number of accidents to 82 from 92 in 2019
• Almost 100 percent of the Group’s lighting sales are made up of LEDs, reducing energy consumption.

Social Achievements

• Launched a new organisational structure creating more opportunities for diversity work
• Implemented various initiatives to reduce sickness absence
• Continued work on reducing risks regarding environmental and social issues in the value chain
• Implemented ITAB Academy and ACT program for employee skill development
• Around 100 percent of the Group’s employees had signed up to the Code of Conduct.

Governance Achievements

• Implemented a Group-wide supplier policy containing fundamental business ethics requirements
• Regularly reviews and evaluates internal checks in all subsidiaries
• Established a new operating model and organizational structure to facilitate a leaner and more dynamic organization
• Implemented a new global CRM system along with training measures

Climate Goals & Targets

Environmental Challenges

• Reduced demand due to Covid-19
• Shutting down of some customers’ operations and parts of ITAB’s own operational activities
• Material supplies and cross-border movements within Europe being problematic
• Higher illness numbers due to the pandemic
• Staff turnover during the year amounted to 19 percent (18), affected by factors such as the pandemic and ITAB’s transformation.

Mitigation Strategies

• Took steps to safeguard liquidity and adapt costs to the reduced demand
• Implemented cost-saving measures
• Strengthened the balance sheet through the injection of new capital
• Developed local action plans to prevent and manage the spread of infection
• Implemented initiatives at a local level to reduce sickness absence
• Launched a process with the aim of strengthening the balance sheet through the injection of new capital.

Supply Chain Management

Supplier Audits: Around 1,070 suppliers have been examined in respect of environmental criteria.

Responsible Procurement

• Group-wide supplier policy establishing fundamental criteria for all suppliers

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• LED lighting
• Contact barriers
• Virtual queue systems
• Sanitation stations
• Hand sanitiser and disinfectant dispensers

Environmental Metrics

ESG Focus Areas

• Good Working Conditions
• Business Ethics
• Efficiency in the Value Chain
• Sustainable Business Development

Environmental Achievements

• Nearly 50 percent of the electricity used in 2022 was from renewable sources.
• Modern lighting solutions from ITAB enable grocery chains and other retailers to substantially lower their own energy consumption. An example is the retrofitting of 350 stores for one retail customer in Europe with modern track lights, which saves 33 MWh and reduces CO₂ emissions with 8,300 tons per year for that customer alone.

Social Achievements

• Women in senior management reached 23 percent (above the set target of 20 percent).
• Through our supply chain, there were no reported cases of child or forced labour in 2022.
• 98 percent of employees signed the Code of Conduct in 2022 (surpassing the target).

Governance Achievements

• ITAB’s Code of Conduct (“CoC”) was reviewed and revised in 2022 and will be rolled out in 2023.
• The whistleblowing policy and process were updated in 2022.

Climate Goals & Targets

Environmental Challenges

• Shortages of raw materials and certain components as well as global logistics disruptions continued to impact ITAB’s delivery capacity.
• High prices for raw materials and shipping, as well as rapidly rising inflation, interest rates and energy prices, negatively impacted the gross margin for the year.
• The current economic trend, with high inflation and higher interest-rate levels as well as rising electricity prices and a challenging energy situation, could lead to a cautious approach among our customers in terms of future investments and we see signs of a downturn in our markets in Europe.

Mitigation Strategies

• Implemented price increases.
• Continual review of the cost structure.
• Beneficial product mix with increased sales of our technical solutions, services and energy-efficient lighting solutions.
• Efforts to reduce working capital requirements resulted in a strong cash flow in the second half of the year with reduced inventory levels and accounts receivable.
• New long-term and expanded credit agreements totalling approximately MEUR 150 were signed.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Procurement Policy
• Supplier Qualification
• Supplier Categorisation
• Invitation to Tender Processes

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• Energy-efficient lighting solutions
• Onred technology platform

Awards & Recognition

• EcoVadis Bronze Medal (50/100)

Environmental Metrics

ESG Focus Areas

• Good working conditions
• Business ethics
• Efficiency in the value chain
• Sustainable business development

Environmental Achievements

• Scope 1 CO2e emissions reduced by 23 percent
• 10 percent lower Scope 2 CO2e emissions
• 38 percent of the Group’s energy consumption was sustainably generated
• Reduced the carbon associated with transport for a leading grocery retailer in the Netherlands, resulting in a saving of 12.5 tonnes of carbon per year

Social Achievements

• Over 99 percent of all employees in the Group had completed training and signed the Code of Conduct
• Overall reduction of 1.3 percent points to 3.6 percent overall sick leave for the Group
• 47 percent of our employees had received an appraisal from their line manager, which is an increase of 7 percent from 2022

Governance Achievements

• All senior management in ITAB Group has completed anti-bribery training
• All Group employees in high-risk countries have completed business ethics training and signed ITAB Group Code of Conduct
• 100 percent of the category managed suppliers have signed ITAB Group’s Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• High inflation and interest-rate levels negatively impacted the retail sector’s willingness to invest and demand for ITAB’s products and solutions
• Uncertainty concerning the future economic trend impacted both consumer behaviour and the retail sector’s general willingness to invest in existing stores and new establishments
• Lower net sales had a negative impact on capacity utilisation and profitability at the Group’s production facilities
• Shortages of certain electronic components and rapidly rising prices for raw materials, shipping and energy

Mitigation Strategies

• Implemented price increases and measures to reduce Group expenses gradually strengthened both the gross margin and the operating margin during the year
• Cost adaptations were carried out, and the operations were able to shift some of their production capacity to products in growth areas in the Retail Tech offering, such as security gates
• Efforts to reduce the working capital requirements continued and contributed to strong cash flow for the year
• Continuous review of supply chain processes to improve and address any shortcomings

Supply Chain Management

Supplier Audits: 50 percent of the category managed supplier were audited

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• Lighting equipment
• Retail technology