Climate Change Data

Ellos Group AB (publ)

Climate Impact & Sustainability Data (2018, 2022)

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:6163 tonnes CO2
Scope 2 Emissions:245 tonnes CO2
Scope 3 Emissions:5918 tonnes CO2
Renewable Energy Share:100% (electricity)
Total Energy Consumption:10575 MWh
Waste Generated:820 tons
Carbon Intensity:2.93 tonnes CO2/mSEK

ESG Focus Areas

  • Sustainable materials
  • Supplier social assessment
  • Chemicals
  • Last mile transport and returns
  • Packaging
  • Reuse and recycle
  • Energy, emissions and waste
  • Diversity and equality
  • Occupational Health and Safety
  • Anti-corruption
  • Community engagement

Environmental Achievements

  • Reduced CO2 emissions by 12% compared with 2017 and by 25% since 2015
  • 95% reduction in tonnes of paper used for customer mailings since 2015
  • Increased the use of sustainable cotton to 81% (target 100% by 2020)
  • Increased the use of recycled materials in various product categories
  • 88% of waste recycled in HQ & warehouse

Social Achievements

  • 47% female managers
  • Launched a Swedish speaking training program for immigrants
  • Continued work within the framework of Accord Bangladesh to improve working conditions
  • 98% of suppliers with inspection protocols

Governance Achievements

  • No confirmed incidents of corruption in 2018
  • Established a whistleblowing policy

Climate Goals & Targets

Long-term Goals:
  • 100% sustainably sourced cotton in own products by 2020
  • All wood in products sustainably grown and harvested responsibly by 2020
Medium-term Goals:
  • Reduce energy usage by 12% from 2016 levels by 2020
  • 100% of paper mailing on PEFC or FSC certified paper by 2020
  • 100% of printing houses used should be certified by Nordic Ecolabel or similar by 2020
Short-term Goals:
  • Reach +20 in E-NPS (employee recommendation score) over the next two years
  • Recycle 95% of waste by 2020

Environmental Challenges

  • Rising customer expectations for faster and more flexible deliveries at no extra cost
  • Increased average weight per shipment due to expanding home segment
  • Balancing business needs with Accord on Fire and Building Safety in Bangladesh requirements
Mitigation Strategies
  • Working to create an overview of the whole last mile transport and returns process to identify sustainable solutions
  • Optimizing freight planning and filling rates in transport vehicles
  • Renewed commitment to the Accord on Fire and Building Safety in Bangladesh

Supply Chain Management

Supplier Audits: 98% of suppliers audited in the last two years

Responsible Procurement
  • Supplier Code of Conduct based on ICS (Initiative Clause Social); adherence to ILO conventions and UN Guiding Principles on Business and Human Rights

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Sustainable Products & Innovation

  • Vintage collections
  • Products made from recycled materials

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:73636 tCO2e/year
Scope 1 Emissions:24.7 tCO2e/year
Scope 2 Emissions:288.9 tCO2e/year
Scope 3 Emissions:73322 tCO2e/year
Renewable Energy Share:100% (electricity from renewable sources)
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:1040 tons/year
Carbon Intensity:0.02 ton CO2e per kSEK of sales

ESG Focus Areas

  • Climate change
  • Sustainable materials
  • Supplier social assessment
  • Supplier environmental assessment
  • Packaging
  • Diversity and equality
  • Occupational health and safety
  • Community engagement
  • Anti-corruption

Environmental Achievements

  • Reduced Scope 1 and 2 emissions by 7% compared to 2021 and 15% compared to 2020.
  • Reduced Scope 3 emissions by 21% compared to 2021 (but increased by 12% compared to 2020).
  • 96% of all cotton sourced from more sustainable sources.
  • Increased recycled polyester and polyamide to 39% in 2022 from 10% in 2020.
  • 36% of viscose bought in 2022 was ECOVERO™ or Tencel.
  • 82% of waste generated was sorted and recycled.

Social Achievements

  • 50% female managers in 2022.
  • 96% of all factories had valid audit reports.
  • Launched employee engagement program using &Frankly, resulting in an eNPS of 18 (compared to 31 in 2021).
  • Donated defective goods or textiles to Björkåfrihet for reuse or recycling.
  • Partnered with Borås Idésömnad to create sellable products from leftover textiles.

Governance Achievements

  • No confirmed incidents of corruption in 2022.
  • No incidents reported through the whistleblowing channel in 2022.
  • Signed the International Accord on Health and Safety in the Textile and Garment Industry.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions in Scope 1 & 2 by 2030.
  • 100% of EG’s materials to be recycled or sustainably sourced by 2030.
Medium-term Goals:
  • Reduce emissions in line with the global sustainability objectives and the Paris Agreement (50% reduction by 2030).
  • 50% of textile sales to be more sustainable products by 2025.
  • 50% green factories by 2030.
  • 100% sustainable packaging from recycled or other sustainably sourced materials by 2025.
  • 100% of EG’s materials to be recycled or sustainably sourced by 2030.
Short-term Goals:
  • Close the gap to 100% sustainable cotton in 2023.

Environmental Challenges

  • Increased raw material prices globally.
  • Increased energy costs.
  • Higher cost of goods due to the war in Ukraine.
  • Increased purchases to support high sales growth leading to increased Scope 3 emissions.
  • Challenges in reaching 100% sustainable cotton, particularly in carpets.
  • Tracing every product through the value chain for transparency.
Mitigation Strategies
  • Continued work in Swedish Textile Initiative on Climate Action (STICA).
  • Climate offsetting for last-mile transports and own operations in Borås.
  • Developing a climate action plan in 2023 to decouple economic growth from emission growth.
  • Strategic consolidation work for apparel suppliers.
  • Working towards a product scorecard and Digital Product Passport.
  • Collecting information from suppliers on their climate impact using the Ellos Group Green Scorecard.

Supply Chain Management

Supplier Audits: 96% of factories audited in 2022.

Responsible Procurement
  • Supplier Code of Conduct based on ICS, ILO conventions, and UN Guiding Principles on Business and Human Rights.
  • Regular audits and inspections.
  • Corrective Action Plans for non-compliance.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • New legislation for the textile and furniture industry.
Opportunities
  • Developing low-emission materials and circular materials.
  • Improving supplier production processes.
  • Using fossil-free transports.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Products made with more sustainable materials (organic cotton, recycled polyester and polyamide, ECOVERO™ viscose).

Awards & Recognition

  • Not disclosed