Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Economic Responsibility
• Sustainable Energy Solutions
• Business Ethics
• Health and Safety

Environmental Achievements

• Reduced CO2 emissions to approximately 19,000 tonnes in 2012 (from 29,000 tonnes in 2011), partly due to purchasing green electricity and installing heat pumps.
• Increased renewable energy share to almost 50% of total energy needs.
• Improved material and energy recycling levels to more than 75% of total waste volume.
• Reduced hazardous waste at NIBE Markaryd following the introduction of a new pre-treatment process in the paint shop.

Social Achievements

• Implemented the NIBE Code of Conduct, "Our Values", throughout the Group’s operations.
• Maintained low sickness absence (4.9%) and low staff turnover.
• Provided almost 75,000 hours of training (approximately nine hours per employee).
• Engaged with more than 1,000 students through plant visits and development projects.

Governance Achievements

• Moved from GRI Guidelines Level C reporting to Level B reporting.
• Continued implementation of ISO 14001 and ISO 9001 across manufacturing units.
• Implemented a Group-wide reporting system for sustainability issues.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to more production plants and increased production volumes.
• Increased water consumption due to acquisitions, increased production, and changes in production methods.
• Soil pollutants reported at three sites.
• Breaches of environmental regulations in Poland and the Czech Republic.

Mitigation Strategies

• Implemented energy-saving projects, including installation of monitoring systems, heat pumps, energy-efficient equipment, and improved production planning.
• Installed closed systems for cooling water at several factories.
• Developed detailed plans for reducing water consumption at around ten plants.
• Addressed soil pollution issues (details not specified).
• Took corrective measures to address breaches of environmental regulations.

Supply Chain Management

Supplier Audits: Almost 1,000 suppliers assessed in 2012

Responsible Procurement

• Quality, environmental, and social responsibility requirements placed on suppliers.
• Supplier assessments and follow-up through questionnaires, site inspections, and audits.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding (at one plant)

Transition Risks

• New environmental legislation
• Changes in customer requirements

Opportunities

• Growing interest in energy-efficient heat pumps.
• Expanding market for energy-efficient cooling equipment.

Reporting Standards

Frameworks Used: GRI G3.1 Reporting Framework (Level B)

Certifications: ISO 9001, ISO 14001 (at many sites)

Sustainable Products & Innovation

• Ground-source/geothermal heat pumps
• Exhaust-air heat pumps
• Wood-burning stoves with Nordic Swan Ecolabel
• Resistors for wind turbines and frequency converters

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Resource efficiency
• Supplier monitoring
• Social responsibility
• Health and safety
• Product safety
• Business ethics
• Climate change
• Sustainable products
• Work environment

Environmental Achievements

• Increased use of green electricity (80% of total electricity use)
• Installed approximately 110 heat pumps at NIBE facilities to save energy and reduce carbon footprint
• Reduced water footprint by 50% at Markaryd plant by installing closed-loop systems
• Improved energy efficiency measures at production plants
• Developed new heat pumps using propane as a refrigerant
• Increased use of recycled materials in products
• Phased out certain hazardous chemicals
• Developed products used in clean technology (e.g., heating elements in pyrolysis for recycling rubber tires)

Social Achievements

• Continued training and education programs (over 65,000 hours in 2013)
• Implemented systems for recording workplace incidents (“near misses”) at around 60% of companies
• Active participation in local communities through open house days, study visits, and sponsorships
• Implemented a Group-wide whistleblower policy

Governance Achievements

• Introduced Group-wide sustainability objectives
• Audited all manufacturing companies with respect to “Our Values”
• Implemented ISO 14001 and ISO 9001 at many manufacturing units
• Developed Group-wide guidelines for gifts and hospitality
• No incidents relating to bribery were registered in 2013

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to a cold winter, additional plants, and higher production volumes
• Indirect emissions from purchased electricity at units acquired outside Europe
• Difficulties in maintaining good combustion in wood-burning stoves while keeping glass free from soot
• Some minor irregularities noted in workplace inspections (fire risks, noise, chemical substance exposure)
• A few cases of discrimination resulting in employee departures
• Breaches of emission limits in Poland (noise, lead, atmospheric emissions) and Denmark (wastewater pollutants)

Mitigation Strategies

• Implemented actions to increase energy efficiency (improved insulation, replacement of machinery, awareness programs)
• Purchase of GoO certificates for renewable electricity in Europe
• Focus on improving combustion technology in wood-burning stoves
• Corrective measures taken or underway to address workplace inspection irregularities
• Strengthening human rights and business ethics efforts
• Corrective actions taken to address breaches of emission limits

Supply Chain Management

Supplier Audits: Approximately 550 suppliers assessed in 2013

Responsible Procurement

• Quality, environmental, health, and safety requirements placed on suppliers
• Supplier Manual including sustainability criteria
• Assessments of suppliers concerning quality, environmental, health, safety, and social aspects

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Changes in environmental legislation
• Changes in customer requirements

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• New heat pumps using propane refrigerant
• Products for clean technology (e.g., heating elements in pyrolysis for recycling rubber tires)

Environmental Metrics

ESG Focus Areas

• Energy saving actions
• Business ethics and principles
• Sustainability standards in the supply chain

Environmental Achievements

• Installed approximately 110 heat pumps at NIBE facilities, saving energy and reducing climate impact
• Evaluated over 1,200 suppliers on environmental, working environment, and social responsibility
• Reduced the use of environmentally hazardous substances in manufacturing processes and finished products; 85% of paint and coatings used were free of organic solvents (15% increase from 2013).

Social Achievements

• Launched a group-wide whistle-blowing service for ethical guideline compliance
• Doubled training hours compared to the previous year (over 126,000 hours, approximately 13 hours per employee)
• Six group companies certified to OHSAS 18001 (international working environment standard)

Governance Achievements

• Signed the UN Global Compact principles for responsible business
• Prepared educational materials for anti-corruption training (to be conducted in 2015)
• Implemented a new joint system for evaluating suppliers (to be launched in 2015 for companies with the highest purchase value)

Climate Goals & Targets

Environmental Challenges

• Increased risks due to global sustainability challenges (e.g., increased energy requirements, climate change)
• Meeting increased customer demand for sustainable products
• Ensuring sustainability standards are met throughout the supply chain
• Limited technology for conversion to natural refrigerants
• Breaches of environmental legislation (emission threshold values exceeded in Poland and Denmark)

Mitigation Strategies

• Continuous improvement of energy efficiency of products and promotion of renewable energy
• Investment in new, innovative technology and products
• Supplier evaluations and a new joint system for supplier assessment
• Increased priority on developing products with natural refrigerants and cooperation with component developers
• Paying fines for breaches of environmental legislation and implementing corrective actions

Supply Chain Management

Supplier Audits: Over 1,200 suppliers evaluated

Responsible Procurement

• Code of conduct
• Quality criteria
• Business principles
• Environmental, health, and safety requirements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Altered environmental legislation
• Changing customer requirements

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 - Core

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Heat pumps
• Ventilation units for heat recovery
• Heat exchangers
• Boilers meeting future energy-saving standards
• Domestic hot water heat pumps

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Development of sustainable products
• Managing natural resources
• Care for the environment
• Responsible purchasing
• Care for people
• An ethical approach to business

Environmental Achievements

• Two more companies received their ISO 14001 certificates in 2015.
• Accident frequency improved from 10.6 to 8.5 per million hours worked.
• Energy use per SEK of sales decreased to 12 (14) MWh per MSEK.
• Total carbon dioxide emissions decreased from 26,300 to 10,900 tonnes, largely due to purchasing guaranteed origin electricity from renewable sources.
• 75% of waste was recovered, including 10% as energy recovery by incineration.

Social Achievements

• Employee turnover decreased to 6.8 (7.1) %.
• 212,000 (124,000) hours of training were conducted in 2015 (average of 20 (13) hours per employee).
• New ethics and anti-corruption course launched, with roughly 900 employees completing it.
• Eltwin in Poland won first prize as the safest employer.

Governance Achievements

• NIBE became a member of the UN Global Compact in 2014.
• New system for carrying out supplier assessments introduced in 2015.

Climate Goals & Targets

Environmental Challenges

• Low gas and oil prices hindering investment in new renewable energy technologies.
• Sluggishness in the transition to fossil-free technology due to uncertainty about new technologies and unwillingness to change.
• Increasing social unrest due to climate change and resource scarcity.
• Emissions from old wood-burning stoves.
• Risks related to corruption in business relationships.

Mitigation Strategies

• Continued focus on research and development, including opening a new development laboratory in Germany.
• Working to increase the percentage of sales from LCE-classified products to at least 60% over the next five years.
• Intensifying efforts to assess suppliers against criteria based on the UN Global Compact’s 10 principles.
• Developing modern wood-fired products with efficient combustion and lower emissions.
• Launching a new ethics and anti-corruption course for employees.

Supply Chain Management

Supplier Audits: Nine audits carried out in 2015, six planned for 2016. 53% of suppliers assessed.

Responsible Procurement

• Suppliers evaluated according to international principles relating to human rights, working conditions, and anti-corruption.
• High requirements for quality control, reliability of supply, and environmental performance.
• Verification that suppliers meet REACH and RoHs directives and have procedures for control and traceability concerning conflict minerals.

Climate-Related Risks & Opportunities

Transition Risks

• Uncertainty about new technologies and unwillingness to change due to established systems offering low oil and gas prices.

Opportunities

• Increased demand for eco-friendly products due to climate change.
• Business opportunities from global ambition to reduce greenhouse gas emissions.

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001, ISO 9001

Sustainable Products & Innovation

• Geothermal heat pumps
• Solar products
• Heat exchangers
• Components for energy efficiency
• Heating unit for electric cars

Awards & Recognition

• Eltwin in Poland won first prize as the safest employer in 2015.
• AIT-Deutschland GmbH won the 2015 Training Award (Ausbildungspreis 2015).

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Renewable energy
• Occupational health and safety
• Quality and environmental management systems
• Responsible business conduct
• Corporate social responsibility
• Human rights
• Diversity and equal opportunities
• Anti-corruption
• Biodiversity
• Circular economy

Environmental Achievements

• Reduced energy intensity by 29.5% compared with the 2019 baseline (measured in MWh/SEK million in sales)
• 63.2% of total 2022 sales consisted of LCE-classified products (exceeding the target)
• 27% reduction in CO2 emissions in 2022 (companies and activities that accounted for the 2019 baseline)

Social Achievements

• Implementation of occupational health and safety policy with systematic preventive measures
• Introduction of certified quality and environmental management systems in 96% of production units (ISO 9001) and 86% (ISO 14001) with more than 10 employees

Governance Achievements

• Compliance with applicable legislation and zero tolerance for bribery and corruption
• Implementation of anti-corruption training for all employees exposed to corruption risks
• Group’s whistle-blowing policy available in all local languages

Climate Goals & Targets

Environmental Challenges

• Material and component shortages impacting delivery capacity
• Supply chain disruptions
• Sharp and frequent price increases
• Global labor shortage (primarily in North America)
• US export restrictions on equipment for semiconductor manufacturing in China

Mitigation Strategies

• Internal efforts to improve organic growth
• Constructive dialogue with customers
• Preparation of sub-suppliers for increased demand
• Price adjustments for own products
• Boosting own capacity (staffing and facilities)
• Strategic acquisitions
• Investment programs to increase production capacity
• Continued focus on acquisitions despite pandemic

Supply Chain Management

Responsible Procurement

• Evaluation of suppliers based on UN Global Compact’s global goals
• Supplier code of conduct
• Requirements on product quality, delivery capacity, commercial conditions and environmental performance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Floods
• Forest fires

Transition Risks

• Changes in laws and government decisions
• Weak economic climate
• Energy prices
• Commodity prices
• Currency fluctuations
• Dependence on suppliers
• Climate impact on operations
• Geopolitical forces

Opportunities

• Increased demand for energy-efficient products using renewable energy
• Strengthening market positions due to stricter emission regulations
• Attractive working environment for employees
• Maintaining diversification of the supply chain

Reporting Standards

Frameworks Used: GRI, UN Global Compact, TCFD

Certifications: ISO 9001, ISO 14001

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 16

The company supports the UN’s 17 sustainable development goals (SDG) in Agenda 2030 in their entirety but has, so far, chosen to focus on seven of the goals that are clearly linked to our internal goals and action plans and that we believe we can influence.

Sustainable Products & Innovation

• Heat pumps
• Water heaters
• Accumulator tanks
• Domestic boilers
• District heating products
• Solar panels
• Stoves

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Renewable Energy
• Occupational Health and Safety
• Quality and Environmental Management Systems
• Human Rights
• Responsible Purchasing
• Anti-Corruption
• Social Responsibility
• Circular Economy

Environmental Achievements

• Reduced energy intensity by 32.7% compared with the 2019 baseline (7.4 MWh/SEK million)
• 67.5% of total 2023 sales consisted of LCE-classified products (target is 70% by 2026)
• 24% reduction in direct and indirect CO2 emissions compared to 2019 (target is 65% by 2030)

Social Achievements

• Increased ISO 9001 certification to 99% (from 96%) and ISO 14001 to 95% (from 86%)
• Reduced Lost Time Injury Frequency Rate (LTIF) to 6.7 (target is 6 by 2024)

Governance Achievements

• Implementation of the occupational health and safety policy continues, and systematic preventive measures are carried out continuously.
• All employees who may be exposed to corruption must undertake mandatory anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Large fluctuations in demand due to high inflation, interest rate hikes, decreased new residential construction, falling energy prices, and inventory adjustments.
• Unpredictable political will regarding the transition to sustainable heating alternatives.
• Global labor shortage, particularly in North America.
• Sharp fluctuations in demand for wood-fired, pellet-fired, and gas-fired stove products.

Mitigation Strategies

• Adjusted production to match prevailing demand.
• Implemented a major cost-cutting program in Europe, including redundancies.
• Continued to implement a comprehensive investment program to expand capacity.
• Strengthened market position through strategic acquisitions.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct based on the ten principles of the UN Global Compact.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding

Transition Risks

• Changes in energy prices, energy taxes, subsidies, and energy legislation
• New technologies outside our current areas of knowledge or expertise
• Unclear or fast-changing subsidy programs

Opportunities

• Increased demand for energy-efficient products that use renewable energy
• Strengthening market positions globally due to stricter laws and requirements for lower emissions from products.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 16 (Peace, justice, and strong institutions)

NIBE's commitment to providing sustainable energy solutions, promoting decent work, fostering innovation, building resilient infrastructure, and promoting responsible consumption and production.

Sustainable Products & Innovation

• Heat pumps
• Energy-efficient water heaters
• Energy-efficient stoves
• Components for domestic appliances
• Components and systems for intelligent heating and control
• Infrared heating components and systems
• Electronics for control and regulation of heat pumps and ventilation
• Solar panels

Awards & Recognition

• Best Community Awards by the National Association of Homebuilders (Norton Commons)