Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Human rights
• Supply chain sustainability
• Diversity & Inclusion
• Good governance

Environmental Achievements

• Shifted to 100% renewable electricity within own facilities
• Committed to the Science Based Targets initiative (SBTi) to reduce greenhouse gas emissions by 50% by 2030 (base year 2019)
• Increased the proportion of natural, recycled, or reused materials to 70.5% (slightly decreased from 71.1% in 2020 due to increased stock of petroleum-based carpets)

Social Achievements

• Conducted 350 sustainability audits of the supplier base (all-time high)
• Launched RugVista Essentials, a new product collection targeting first-time home decorators
• Welcomed 36 new employees in 2021
• Initiated a COVID-19 vaccination campaign for weavers and community members in India, aiming to vaccinate over 100,000 people

Governance Achievements

• Implemented a global whistle-blowing channel available to people in the supply chain
• All new RugVista suppliers sign the Code of Conduct and are part of the auditing systems before any orders are placed
• Extended mapping of tier 2 suppliers

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic
• Increased competition for consumers’ attention
• Volatile and difficult-to-predict customer demand
• Climate change impacts on supply chain (increased temperatures, flooding, droughts)
• Resource scarcity due to the linear production model
• Risk of human rights violations and core labor rights violations in the supply chain
• Risk of corruption in the supply chain
• Geopolitical and trade uncertainty
• IT and cyber security risks

Mitigation Strategies

• Timely production planning and protecting supplier employees
• Providing face masks, food, and blankets to workers in India
• Improving and further localizing the value proposition
• Building a known and liked brand
• Committing to SBTi and shifting to renewable energy
• Developing a circular business model
• Regular social audits and training in human rights
• Implementing a global whistle-blowing channel
• Monitoring developments in production and sourcing countries
• Spreading production between countries and suppliers
• Developing and maintaining a robust IT system with good accessibility

Supply Chain Management

Supplier Audits: 350

Responsible Procurement

• Code of Conduct for suppliers
• Amfori BSCI and Label STEP audits
• Regular monitoring and follow-ups

Climate-Related Risks & Opportunities

Physical Risks

• Increased temperatures
• Flooding
• Droughts

Transition Risks

• Disruptions in supply chain due to climate change

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Third-party Assurance: Ernst & Young AB

UN Sustainable Development Goals

• SDG 5: Gender equality
• SDG 6: Clean water and sanitation
• SDG 8: Decent work and economic growth
• SDG 12: Responsible consumption and production
• SDG 13: Climate action
• SDG 16: Peace, justice and strong institutions
• SDG 17: Partnerships for the goals

RugVista's sustainability goals are clearly linked to these SDGs, focusing on areas where the company believes it can have the greatest impact.

Sustainable Products & Innovation

• RugVista Essentials
• Rugs made from recycled cotton (planned launch in 2022)

Awards & Recognition

• Nominated for the D-Award

Environmental Metrics

ESG Focus Areas

• Planet
• People
• Business

Environmental Achievements

• Reduced CO2e emissions in Scope 1 and 2 by 64% since 2019
• Increased proportion of certified, reused, recycled, or recyclable materials to 13%
• 30% recycled content in purchased plastic packaging

Social Achievements

• 100% of tier 1 rug suppliers included in social audits
• 661 amfori BSCI and 603 Label STEP audits conducted
• Employee Net Promoter Score (eNPS) of 31

Governance Achievements

• 100% of suppliers signed the code of conduct
• 79% of tier 2 suppliers mapped
• Zero corruption incidents reported

Climate Goals & Targets

Environmental Challenges

• Resource scarcity
• Emissions to water, air, and soil
• Climate change caused by greenhouse gas emissions
• Biodiversity and ecosystems loss
• Water usage
• Violation of fundamental labor rights
• Product safety
• Unethical business behavior
• Political and social instability and external factors in production and supply markets
• Risks related to suppliers and business partners
• Risks related to the company’s handling centers
• IT and Cybersecurity
• Financial risks (liquidity, currency, goodwill impairment, interest rate)

Mitigation Strategies

• Actively working to reduce the climate impact of materials, increase the share of recycled, reused, recyclable, and certified materials, and support the implementation of more circular processes throughout the entire value chain.
• Increasing the proportion of certified materials.
• Set goals in accordance with the Science-Based Targets Initiative (SBTi) and works to increase the share of certified materials and products with proven reduced climate impact.
• Aims to increase the share of certified materials that have less impact on biodiversity and ecosystems.
• Aims to increase the share of certified materials that have a reduced impact on water usage and to increase the number of suppliers where production regarding environmental impact, such as water usage, is audited by a third party.
• Suppliers commit to complying with Rugvista’s code of conduct for business partners, which includes requirements regarding human rights, working conditions, prohibition of child and forced labor, and employees’ right to fair compensation. Compliance is monitored through our external auditing system and regular follow-ups in our ongoing supplier dialogue.
• Work systematically with long-term supplier collaboration and ongoing dialogue with our suppliers, where monitoring compliance with the code of conduct is key.
• Zero-tolerance policy against all forms of bribes and corruption.
• Responsible purchasing and diversified supplier base.
• Continuous monitoring and dialogue with suppliers.
• Insurance coverage for damages to handling centers and inventory.
• Continuous development, smooth functioning, and high availability of the company’s technology platform.
• Overall risk management strategy focuses on managing the uncertainty of the financial markets and aims to minimize potential unfavorable effects on the Group’s financial results.

Supply Chain Management

Supplier Audits: 661 (amfori BSCI and Label STEP) audits in 2023

Responsible Procurement

• Code of conduct for suppliers
• Amfori BSCI and Label STEP audits
• Material Matrix for sustainable material selection

Climate-Related Risks & Opportunities

Physical Risks

• Climate change caused by greenhouse gas emissions
• Water usage

Transition Risks

• Resource scarcity
• Emissions to water, air, and soil
• Biodiversity and ecosystems loss

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI 2021 Standard, ESRS standard

Certifications: OEKO-TEX® STANDARD 100, GRS, Amfori BSCI, Label STEP

Third-party Assurance: Ernst & Young AB

UN Sustainable Development Goals

• 5
• 6
• 8
• 12
• 13
• 16
• 17

The UN’s global goals are part of the 2030 Agenda for Sustainable Development. We have chosen to adopt this model called “the wedding cake” because we believe it effectively illustrates the connections between the SDGs and their role as fundamental parts of our business.

Sustainable Products & Innovation

• Recyclable rugs
• Repurposed older rugs
• Bathroom rugs made of cotton

Awards & Recognition

• Not disclosed