Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Ethical

Environmental Achievements

• Nobia’s CO2 emissions per produced cabinet declined 6 per cent.
• Two production facilities in Austria received ISO certification.

Social Achievements

• A programme for employee development in production and logistics was started.
• The number of completed supplier audits amounted to 42.

Governance Achievements

• Nine incidents were reported through an anonymous communication channel and subsequently handled in 2014.

Climate Goals & Targets

Environmental Challenges

• Weak kitchen markets in most regions except the UK.
• Loss-making operations in Hygena (France).

Mitigation Strategies

• Divestment of Hygena.
• Acquisition of Rixonway Kitchens to expand into complementary markets and segments.
• Strengthened regional structure to coordinate sourcing, optimize production, and harmonize commercial activities.

Supply Chain Management

Supplier Audits: 42

Responsible Procurement

• Suppliers are inspected and audited based on guidelines for environmental, health and safety, and social and ethical aspects.
• All suppliers must comply with laws and requirements, the UN Declaration of Human Rights and Nobia’s Code of Conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (most production facilities)

Environmental Metrics

ESG Focus Areas

• Care of employees
• Efficient use of resources
• Product responsibility and responsible sourcing

Environmental Achievements

• CO² emissions per produced cabinet declined 6 per cent
• 45% of wood materials certified by the Forest Stewardship Council (FSC)

Social Achievements

• One of the production facilities in the UK received the Sword of Honour health and safety prize
• Employee performance evaluations carried out, individual goals and development plans drawn up

Governance Achievements

• Adopted a Code of Conduct based on UN Universal Declaration of Human Rights, ILO Declaration, and OECD guidelines

Climate Goals & Targets

Environmental Challenges

• Reduced public financial aid negatively affected Rixonway’s market
• Weak economic trend negatively impacted demand in Austria and Finland
• Incorrect accounting at Poggenpohl USA

Mitigation Strategies

• Working to compensate for market development and realize synergies within sourcing (Rixonway)
• Increased prices where possible and increased number of kitchens sold
• Measures taken to restore confidence in Poggenpohl

Supply Chain Management

Supplier Audits: 45 supplier audits

Responsible Procurement

• Sustainable forest management policy
• Timber declaration requirements for wood suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 level, Core

Certifications: ISO 14001 (12 of 14 production units)

Sustainable Products & Innovation

• Nordic Ecolabelled kitchen platforms

Awards & Recognition

• Sword of Honour health and safety prize (UK production facility)

Environmental Metrics

ESG Focus Areas

• Reduce CO2 Emissions
• Sustainable Innovations
• Responsible Sourcing
• Employee Well-being
• Timber from Sustainable Sources
• Resource Efficiency

Environmental Achievements

• Achieved 100% renewable electricity in all production facilities in all markets by 2018.
• 92% of Nobia’s total wood and wood materials originated from a certified source.
• 70% of the UK’s wood and wood materials originated from FSC® or PEFCTM certified wood.
• 50% of all wood waste went to manufacturing new products.
• Switched from energy recovery to material recycling of waste wood in several facilities.
• Implemented a sustainability scorecard to evaluate the sustainability performance of new kitchen products.

Social Achievements

• Implemented a new programme for supplier reviews which includes over 300 suppliers.
• Launched the Excellent Leadership programme to develop and strengthen leadership qualities for managers.
• Increased employee commitment index to 78 (from 77).

Governance Achievements

• Implemented a new responsible sourcing programme including risk analysis, review, audit and a reporting channel for violations of the Code of Conduct for Suppliers.
• No product safety incidents leading to insurance cases or legal proceedings.
• No Nobia business unit was sentenced or paid fines for environmental crimes in 2018.

Climate Goals & Targets

Environmental Challenges

• Total number of workplace accidents increased in 2018.
• Approximately 80% of total CO2 emissions come from transportation.
• Increased emissions from solvents in 2018 due to increased sales of painted cabinet doors and darker colors.
• Difficulties in gathering information about sustainability practices from suppliers' suppliers.

Mitigation Strategies

• Further developing safety programme to reverse the trend of increased workplace accidents.
• Improving processes to measure and follow up transport-related emissions to develop new climate reduction targets.
• Optimising energy consumption at production facilities and switching to renewable district heating.
• Switching from road freight to intermodal transport by train.
• Implementing initiatives to reduce solvent use, such as replacing them with water-based and UV-tempered surface coatings.
• Imposing requirements on suppliers to communicate sustainability expectations to their subcontractors.

Supply Chain Management

Supplier Audits: 13 audits/year

Responsible Procurement

• Supplier Code of Conduct regulating requirements for working conditions, human rights, business ethics, and environmental performance.

Climate-Related Risks & Opportunities

Physical Risks

• Damage to forests due to warmer climate, impacting material supply.

Transition Risks

• Customer requirements for responsible production processes and sustainable sources.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (Core level), UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 50001, OHSAS 18001 (various facilities), FSC® and PEFCTM (wood sourcing)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 7, 8, 9, 12, 13

The report mentions alignment with several UN Sustainable Development Goals, but doesn't provide detailed explanations for each.

Sustainable Products & Innovation

• Waste-Free Kitchen concept; Circular Kitchen concept; products with Balanceboard (FSC® certified chipboard with compressed granules from annual crops).

Awards & Recognition

• Top five in Consumer Goods category of 2018 Hållbar bolag (Sustainable Businesses) survey; C+, Prime in sustainability in ISS-oekom corporate rating; CDP Forest score increased from D to B-; British Safety Council’s Sword of Honour award (UK production facilities).

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular economy
• Sustainable sourcing
• Employee safety and wellbeing
• Diversity & Inclusion

Environmental Achievements

• 100% renewable electricity in production and own stores
• 63% of wood waste recycled into new products
• 97% of timber from certified sources
• Reduced CO2 emissions from Scope 1 and 2 by approximately 18%

Social Achievements

• Launched a new intranet (KitcheNet) to improve employee communication
• Group-wide leadership programmes
• Reduced workplace accidents to 54 (from 62 in 2019)
• Implemented a comprehensive survey on organisational health

Governance Achievements

• New organisational structure implemented to improve regional accountability and decision-making
• Science-Based Targets initiative (SBTi) approved climate targets adopted
• Updated Code of Conduct focusing on long-term sustainable business model

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic impacting operations, leading to temporary closures of stores and factories
• Supply chain disruptions
• Reduced sales volumes in the UK due to pandemic restrictions
• Increased uncertainty in the global economy

Mitigation Strategies

• Introduced a major temporary furlough program
• Secured supplier base
• Launched tools to serve customers through digital solutions
• Implemented cost-reduction measures
• Secured long-term debt financing of SEK 5 billion
• Accelerated efforts in digital kitchen design meetings

Supply Chain Management

Supplier Audits: Approximately 300 suppliers in the supplier audit programme; 92% approved at year-end

Responsible Procurement

• Supplier Code of Conduct
• Risk assessment programme

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting supply chain

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 14001 (13 of 14 production facilities)

Third-party Assurance: Deloitte AB

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Nordic Swan eco-labelled products
• Energy-efficient appliances

Awards & Recognition

• 19th place in OpenCorporations' ranking of more transparent, inclusive and accessible companies

Environmental Metrics

ESG Focus Areas

• Sustainable lifestyle innovations
• Circular materials and flows
• Reduced climate impact
• Promoting a sustainable culture

Environmental Achievements

• 71% reduction in CO2 emissions from manufacturing and own transports (Scope 1 and 2) compared with 2016.
• 100% renewable electricity in production and own stores.
• 85% renewable electricity and heating in production and own stores.
• 62% of wood waste recycled into new products.
• Reduced wood waste by 10–15% in three large production plants.
• Reduced chemical use by 3% at a Swedish painting facility.
• 44% of sales value in Sweden and Norway came from Nordic Swan eco-labelled products.
• 75% of new products launched in the Nordic region were Nordic Swan eco-labelled.

Social Achievements

• Launched Group-wide purpose and values: "Designing Kitchens for Life" with focus on Care, Deliver, and Inspire.
• 70% of top managers participated in Quantum Leap Leadership Program.
• Employee commitment index of 79 (78).
• Initiated "Mental Health First aiders" program in the UK.
• Introduced a new recruitment process for executives in the Nordic region using objective testing tools.

Governance Achievements

• No breaches of the Swedish Corporate Governance Code, stock exchange rules, or good market practice.

Climate Goals & Targets

Environmental Challenges

• Continued impact of the coronavirus pandemic, particularly in the UK.
• Unsurpassed inflation in costs for direct materials.
• Supply chain disruptions due to the war in Ukraine.
• Limited transparency in the supply chain.
• Risk that demand for fossil-free transport will increase faster than supply.
• Shortages of materials due to transition to a low-carbon economy and extreme weather events.
• Bans on materials.
• Requirement to increase recycling rate.
• Demand for faster transition to fossil-free production than planned.

Mitigation Strategies

• Adapting operations to protect employee health and safety.
• Reducing costs, adjusting capacity and production structure.
• Creating higher customer value through product innovation.
• Continuous work on pricing strategy.
• Monitoring and predicting changes in the business environment and regulations.
• Investing in new technology and factory premises.
• Developing sustainable sourcing strategies.
• Implementing efficiency programmes for raw materials.
• Transitioning to more sustainable alternatives for transport and heating.
• Shifting product range towards more energy-efficient appliances.
• Engaging in dialogue with suppliers about expanding climate efforts.

Supply Chain Management

Supplier Audits: A limited number of physical audits were performed in 2021 due to Covid-19 restrictions.

Responsible Procurement

• Supplier Code of Conduct
• Risk assessment program covering approximately 300 significant suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting production assets and supply chain

Transition Risks

• Increased competition from more sustainable brands
• Insufficient transparency in the supply chain
• Shortages of materials
• Bans on materials
• Increased demand for fossil-free production

Opportunities

• Increased demand for sustainable products
• Co-innovation with suppliers
• Increased self-generation of renewable energy
• Lower material costs from increased use of reused materials

Reporting Standards

Frameworks Used: GRI Standards (Core), TCFD

Certifications: ISO 14001, ISO 9001, ISO 50001, ISO 45001, VCA (Dutch)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 15 (Life on land)

Initiatives contribute to these goals through renewable energy use, resource efficiency, waste reduction, sustainable sourcing, climate action, and sustainable forestry.

Sustainable Products & Innovation

• Nordic Swan eco-labelled products
• FSC® and PEFC™ certified products
• Knob made from recycled ocean plastic

Awards & Recognition

• Science-Based Targets initiative (SBTi) approval for science-based climate targets

Environmental Metrics

ESG Focus Areas

• Innovations for a sustainable lifestyle
• Circular materials and flows
• Reduced climate impact
• Promoting a sustainable culture

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 77% compared to 2016 (exceeding the 72% target)
• 92% of new product launches in the Nordic region met Nordic Swan eco-label criteria
• 96% of total timber and wood materials originated from a certified source
• Reduced total heating consumption in production facilities and own stores by more than 10%
• 35% improvement in paint consumption return at the Denmark plant
• Increased material returns by 3-4% and reduced direct wood waste by 140 tonnes at the Denmark plant

Social Achievements

• Launched Rehome initiative in the UK, offering customers the option of selling their old kitchens
• Rolled out RE:NEW concept in Denmark and Norway, offering solutions to update existing kitchens
• Introduced a handle made of recycled ocean plastic, replacing all handles made of virgin fossil-based plastic
• Implemented a new recruitment process with more objective test methods
• Addressed and closed eleven incidents of discrimination and harassment

Governance Achievements

• Established a Shared Service Center in Vilnius
• Implemented a new employee engagement survey tool and process
• Introduced a new Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Persistent inflation on input goods, energy, and transport
• Lower volume due to inflationary pressure and rapid interest rate hikes impacting consumer confidence
• Supply chain challenges in the Nordic region with capacity constraints and material supply issues
• Competition from brands with stronger sustainability images and performance
• Limited transparency in the supply chain
• Potential shortages of materials due to transition to a low-carbon economy
• Increased regulations and bans on certain materials
• Extreme weather events impacting production assets and supply chains
• Demand for faster transition to fossil-free production exceeding company plans

Mitigation Strategies

• Initiated two cost-reduction programmes, primarily focusing on UK operations
• Proactively adjusted prices to counteract cost increases
• Took steps to normalize the supply chain situation
• Investing in product development with a life cycle perspective
• Investing in digital tools to improve customer experience
• Implementing sustainable sourcing strategies
• Developing alternative sourcing strategies
• Implementing energy efficiency measures and transitioning to renewable energy
• Closer cooperation with suppliers to drive sustainability efforts and promote innovation

Supply Chain Management

Supplier Audits: 7 audits performed in 2022

Responsible Procurement

• Supplier Code of Conduct based on Nobia’s Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Shortages of materials

Transition Risks

• Increased regulations and bans on materials
• Demand for faster transition to fossil-free production

Opportunities

• Repairs and simpler renovation options
• Co-innovation with suppliers
• Increased self-generation of renewable energy
• Lower material costs from higher share of reused materials

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 8
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Initiatives contribute to improved resource efficiency, waste reduction, climate change mitigation, sustainable forest management, and effective partnerships

Sustainable Products & Innovation

• Handles made of recycled ocean plastic
• Products with lower amounts of formaldehyde

Awards & Recognition

• Magnet brand received “Kitchen of the Year” award from Ideal Homes

Environmental Metrics

ESG Focus Areas

• Innovations for a Sustainable Lifestyle
• Circular Materials and Flows
• Reduced Climate Impact
• Promoting a Sustainable Culture

Environmental Achievements

• Reduced Scope 1 and Scope 2 emissions by 79% compared to 2016 baseline.
• 91% of wood from certified sustainable sources.
• 50% of sales value from Nordic Swan eco-labelled products in Sweden and Norway.
• Reduced VOC emissions from 265 tonnes to 189 tonnes.
• 45% of refrigerator/freezer sales in better energy classes.
• 54% of wood waste used in new products.
• 46% of board material comprises recycled wood.
• Published three Environmental Product Declarations (EPDs).

Social Achievements

• Introduced a new Group-wide process called People Review to map and ensure a high level of performance and continuous skills development.
• Relaunched Nobia Leadership framework.
• Employee engagement index of 65 (out of 100).
• Reduced work-related injuries from 57 to 52.

Governance Achievements

• No marketing or product safety incidents reported.
• No incidents of corruption reported.
• 117 internal cases reported, 7 related to alleged discrimination and harassment.

Climate Goals & Targets

Environmental Challenges

• Lower demand for products leading to redundancies.
• Bankruptcy of a wood supplier impacting the share of certified wood.
• Employee engagement index below benchmark.
• Uncertainty regarding CSRD implementation.

Mitigation Strategies

• Adapting the organization to lower demand.
• Finding alternative wood suppliers.
• Initiating action plans to improve employee engagement.
• Preparing for CSRD compliance.

Supply Chain Management

Supplier Audits: 10 suppliers in audit program at year-end.

Responsible Procurement

• Supplier Code of Conduct based on UN Global Compact principles.
• Risk assessment program covering 300 significant suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Supply chain disruptions
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Climate-related taxes
• Fuel price changes

Opportunities

• Development of energy-efficient products
• Reduced transport needs
• Climate-efficient means of transport

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001, BREEAM Excellent (new factory), Nordic Swan eco-label

UN Sustainable Development Goals

• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Initiatives contribute to these goals through resource efficiency, sustainable production, waste reduction, climate action, sustainable forestry, and responsible sourcing.

Sustainable Products & Innovation

• Circular kitchen
• Nordic Swan eco-labelled products
• Energy-efficient appliances