Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable cultivation
• Sustainable products
• Safe and resource-efficient production
• Responsibility in the supply chain
• Climate change

Environmental Achievements

• Reduced climate emissions from its own production by 26 percent from the base year 2015.
• Reduced emissions from purchased transportation in relation to sales by 4 percent.
• Reduced the carbon footprint for cattle feed by up to 30 percent.
• Reduced the carbon footprint for pig feed by up to 10 percent.
• Kungsörnen’s friendlier flours Ett vänligare vete and En vänligare råg are produced using a method with up to a 20 percent lower climate impact.

Social Achievements

• Named Sweden’s most sustainable food brand in the Sustainable Brand Index (SBI) survey of Swedish consumers.
• Named Sweden’s most sustainable brand in the fast-moving consumer goods category in the Sustainable Brand Index (SBI) survey of Swedish business customers.
• Achieved the Job satisfaction target of 70 (68) in the employee survey.
• Exceeded the Leadership target with a score of 74 (72) in the employee survey.
• 90 (83) percent of employees had completed training in the Code of Conduct.

Governance Achievements

• Received an official investment grade rating of Baa3, stable outlook, from the credit rating agency Moody’s.
• Updated strategy towards 2030.
• Implementation of Lantmännen’s remuneration policy continued in 2018.
• New positions at Lantmännen (Board member, Head of Energy Sector, CEO of Lantmännen Maskin).

Climate Goals & Targets

Environmental Challenges

• Lowest grain harvest since the late 50s due to drought.
• Low ethanol prices.
• Difficult market situation in many food categories.
• Intense competition in the Swedish machinery market.
• Rising grain prices.

Mitigation Strategies

• Lantmännen presented a powerful action package for members, with a total value of about MSEK 220.
• Focusing on core areas to create stability and higher efficiency in the business.
• Operational and structural measures to achieve defined goals will be implemented within Lantmännen Maskin.
• Continuous efforts to reduce costs in production.
• Cost-based price increases in virtually all markets.

Supply Chain Management

Supplier Audits: 92 (90) percent of Lantmännen’s purchase volume came from suppliers assessed and approved.

Responsible Procurement

• Only purchasing RSPO-certified palm oil and responsibly produced soy as defined by the Swedish Soy Dialogue.

Climate-Related Risks & Opportunities

Physical Risks

• Drought

Transition Risks

• EU renewable energy directive proposing a limit on crop-based biofuels
• Reduction obligation for fuels in Sweden

Opportunities

• Development of climate-smart products (feed, flour, ethanol)

Reporting Standards

Frameworks Used: GRI Standards

Sustainable Products & Innovation

• Climate & Nature cultivation method
• Climate-smart feed
• Foods with Swedish-produced ingredients with their carbon footprints calculated
• Ethanol with leading climate performance based on grain and residual waste
• Swedish beans and bean pasta
• Climate-friendly flour
• Fiber-rich bread products
• Breakfast selection with oats as the main ingredient
• Products for gluten intolerance

Awards & Recognition

• Sweden’s most sustainable food brand
• Sweden’s most sustainable brand in the fast-moving consumer goods category
• Factory of the Future award (Lantmännen Unibake’s bakery in Londerzeel)

Environmental Metrics

ESG Focus Areas

• Sustainable farming
• Responsibility in the supply chain
• Sustainable products
• Safe and resource-efficient production

Environmental Achievements

• Reduced CO2 emissions by 14 percent from the base year 2019 in relation to sales.
• Reduced CO2 emissions by 71 percent in relation to sales and by 62 percent in absolute figures since 2009.
• Launched Climate & Nature cultivation program, reducing the climate footprint for grain grown under the program by up to 30 percent since 2015.
• Launched Climate & Nature program in Finland.
• ThermoSeed, chemical-free seed treatment method, won a European Innovation Award.

Social Achievements

• Named Talent Company of the Year for the second consecutive year.
• Employee satisfaction index score of 70 (71).
• Leadership index score of 76 (75).
• 51 percent of managerial recruitments filled with internal candidates.

Governance Achievements

• Issued a SEK 1 billion green bond.
• Established a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Increased commodity prices and lower grain volumes due to summer heat and scarce rainfall.
• Higher prices of inputs, energy, and freight.
• Coronavirus pandemic and its restrictions.
• Major supply chain disruptions.
• Component shortages and shipping and logistics difficulties.
• Lower than normal harvest.
• Avian flu outbreak.
• Rising prices for feed materials, energy, and logistics.
• Sharp increase in soy prices.
• Supply chain disruptions due to the pandemic.

Mitigation Strategies

• Intensive work to pass on price increases to customers.
• Adaptation of production to changed conditions.
• Strengthening of e-commerce platform and store offering.
• Strict cost discipline.
• Development and execution of long-term plans and strategies.
• Implementation of a new long-term sourcing and receiving strategy to minimize the need for internal transport.
• Development of new feeds with lower soy content and higher use of amino acids.
• Continuous process improvements.
• Initiatives to strengthen the brand and a long-term focus on safety.
• New solutions for web and remote support and a data center to analyze customer vehicle use.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions such as drought and heavy precipitation.
• Risks of natural disasters and pressure from pests.

Transition Risks

• Regulatory changes and geopolitical risks.
• EU’s view on crop-based biofuels.
• Political instability.

Opportunities

• Transition to a fossil-free, circular economy.

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: EY

Sustainable Products & Innovation

• Climate & Nature cultivation program
• ThermoSeed
• Ethanol with world-leading climate performance
• Bio-based ethanol
• Sustainable fuels, lubricants, and chemical products
• Organic gluten
• Swedish-grown dried yellow lentils

Awards & Recognition

• Talent Company of the Year

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Climate change adaptation
• Functioning ecosystems
• Resource efficiency
• Sustainable products
• Food security
• Employee satisfaction
• Equal treatment
• Health and safety
• Business ethics
• Responsibility in the supply chain

Environmental Achievements

• Reduced relative climate impact in own production by approximately 45% compared to 2019.
• Introduced fossil-free fertilizer into the Climate & Nature cultivation program, reducing emissions from wheat cultivation by a further 15% per kg of flour (up to 45% total reduction since 2015).

Social Achievements

• Employee satisfaction index score of 73 (70 in 2022) and Leadership index score of 78 (76 in 2022).
• Injury rate fell to 10.8% from 13.5% in the previous year.
• Sick leave fell to 4.6% from 5.2% in the previous year.
• 52% of managerial recruitments filled internally.

Governance Achievements

• Updated dividend policy allowing for up to 50% of net income from industrial operations to be distributed (previously around 40%).
• Established a Group-wide whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Weak harvest in Sweden (one of the worst in 30 years) due to early summer drought and heavy rainfall.
• High inflation and rising market interest rates.
• Reduced willingness to invest and low demand in many markets.
• Shift to low-cost food products.
• Geopolitical uncertainty and armed conflicts.
• Lack of domestic mineral fertilizer production in Sweden.
• Competition from private labels in the food market.

Mitigation Strategies

• Broad and stable business portfolio.
• Solid work on compensating for increased costs and adapting operations to market developments.
• Focus on cost control and flexibility.
• Strategic investments in key areas.
• Continuous improvement initiatives.
• Price hedging to reduce the earnings impact of volatile market prices.
• Broadening the raw material base for biofuel production.
• Price adjustments and sales volume management to manage price pressure and currency effects.
• Strengthening internal efficiency, developing processes, and working on pricing and cost control.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier sustainability requirements
• Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Heavy precipitation
• Increased pest pressure

Transition Risks

• Regulatory changes affecting biofuel production
• Market shifts in demand for sustainable products

Opportunities

• Development of energy-efficient products and services
• Development of sustainable fuels and green proteins

Reporting Standards

Frameworks Used: GRI Universal Standards

Certifications: Null

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Fossil-free fertilizer
• Climate & Nature cultivation program
• New feed ranges optimized for productivity and climate parameters
• Products with recycled plastic
• Alkylate petrol and HVO diesel
• Green proteins (pea protein)

Awards & Recognition

• Career Company of the Year (4 consecutive years)
• Top 10 in Talent Company of the Year (10 consecutive years)