Climate Change Data

Environmental Metrics

Governance Achievements

• Applied the Swedish Corporate Governance Code without any deviations in the 2014 financial year.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Swedish Corporate Governance Code

Environmental Metrics

ESG Focus Areas

• Sustainability

Social Achievements

• Signed the UN Global Compact’s principles in the areas of human rights, working conditions, the environment and anti-corruption.

Governance Achievements

• Established a Nomination Committee and a Remuneration Committee.
• Improved Board diversity policy aiming for even distribution of people in terms of age, gender, education and professional background.

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• A clause regarding fulfilment of the UN Global Compact is included in all new and renewed supplier agreements.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Environmental Metrics

ESG Focus Areas

• Sustainability
• Human Rights
• Working Conditions
• Environment
• Anti-corruption

Governance Achievements

• Updated Code of Conduct in 2019
• Established a Group-level Risk and Compliance Committee
• Strengthened internal control framework for stock management
• Implemented IFRS 16 in 2019
• Prepared for the European Single Electronic Format (ESEF) from 2020

Climate Goals & Targets

Environmental Challenges

• Risks related to market, competitors, operations, and finances (detailed in the Administration Report and Note 35 of the Annual Report)

Mitigation Strategies

• Regular risk surveys and strengthening of controls to reduce risks of errors in financial reporting
• Establishment of a Risk and Compliance Committee to handle identified risks

Supply Chain Management

Responsible Procurement

• Supplier code clarifying sustainability requirements
• Inclusion of UN Global Compact fulfillment clause in new and renewed supplier agreements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Swedish Corporate Governance Code

UN Sustainable Development Goals

• UN Global Compact principles (aligned with several SDGs)

The Group commits to the UN Global Compact’s ten principles, which are included in the Group’s Code of Conduct.

Environmental Metrics

ESG Focus Areas

• Sustainability

Governance Achievements

• Established a new ERM policy clarifying requirements for formalized and thorough risk management work.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic
• Data breach in the MECA/Mekonomen business area

Mitigation Strategies

• Applied Collegiate’s special application regulations for the 2021 Annual General Meeting due to Covid-19.
• Held 14 meetings of the Risk Management and Compliance Committee in 2020 due to increased activity in the risk area related to Covid-19 and the data breach.
• Developed a new control framework and governance model for cybersecurity (audit conducted by EY).

Supply Chain Management

Responsible Procurement

• Supplier code clarifying sustainability requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Swedish Corporate Governance Code

Environmental Metrics

ESG Focus Areas

• Sustainability

Governance Achievements

• Updated equality policy
• Established a long-term share-based incentive programme (LTIP 2022)

Climate Goals & Targets

Environmental Challenges

• Consequences of the invasion of Ukraine
• Acquisition issues
• Financing issues

Mitigation Strategies

• Extra Board meetings to address the consequences of the invasion of Ukraine and acquisition issues
• Board meetings to address financing issues

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Sustainable Supply Chain

Environmental Achievements

• Launched a new, more climate-friendly car glass offering in Sweden.
• Decision to set science-based climate targets aligned with the Paris Agreement’s 1.5°C scenario.
• Sustainability-linked bank loans focusing on diversity and inclusion and increased use of renewable energy.

Social Achievements

• Launched a trainee program to attract and develop talent.
• Initiated a training program in diversity and inclusion.
• Improved customer satisfaction, particularly in mobile workshop services (Norway and Denmark).

Governance Achievements

• Implemented a comprehensive efficiency program in Norway and Sweden.
• Launched a targeted initiative “Building a stronger MEKO” to improve profitability.
• Linked bank loans to sustainability goals (renewable energy and gender equality).

Climate Goals & Targets

Environmental Challenges

• High competition and generally weaker consumer purchasing power due to high inflation and interest rates.
• Shortage of vehicle technicians across the European market.
• Increased activity from foreign e-commerce operators competing with lower pricing.
• Supply chain disruptions (eased during the year).

Mitigation Strategies

• Continuous efficiency enhancements and optimizations.
• Investment in automated central warehouses to optimize product distribution.
• Continuous revision and investment in a competitive customer offering.
• Active efforts to attract people to the vehicle technician profession through training and collaboration with upper-secondary schools.
• Close collaboration with and careful monitoring of suppliers.

Supply Chain Management

Supplier Audits: Factory visits, tests, and quality audits of new suppliers.

Responsible Procurement

• Supplier Code of Conduct addressing human rights, working conditions, environment, and anti-corruption.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Transition to electric vehicles, political decisions regarding climate measures and incentives.

Opportunities

• Growth in software, data, tires, and glass; partnerships with electric car manufacturers.

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Global Compact

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers AB (PwC) (limited assurance for sustainability data)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New climate-friendly car glass offering in Sweden.

Awards & Recognition

• Bronze medal from EcoVadis