Climate Change Data

HL Display Holding AB

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:73,112 tCO2e (2020 data)
Scope 1 Emissions:1,785 tCO2e (2020 data)
Scope 2 Emissions:7,145 tCO2e (2020 data)
Scope 3 Emissions:64,181 tCO2e (2020 data)
Renewable Energy Share:69.6% (2021)
Total Energy Consumption:24.4 MWh (2021)
Water Consumption:280,903 m³ (2021)
Waste Generated:2,605 tons (2021)

ESG Focus Areas

  • Helping customers to reduce waste
  • Creating the best workplace
  • Driving continuous improvement in operations
  • Ensuring responsibility throughout the supply chain

Environmental Achievements

  • Gliwice factory switched to 100 percent renewable energy
  • Increased recycled plastic use by 12 percent
  • Recycled over 40 percent of own plastic waste
  • Sales of HL Sustainable Choice range grew by 12 percent
  • Expanded circular offer to include another major customer
  • Sundsvall factory's own well led to an 88 percent decrease in water consumption from municipal sources

Social Achievements

  • Launched a new employee engagement tool
  • Work-life balance score of 74
  • Integrated new employees from acquisitions with engagement action plans
  • Launched Project Innovation Booster for cross-functional collaboration

Governance Achievements

  • 93 percent of important suppliers signed the Code of Conduct for Suppliers
  • Implemented a centralized system for supplier management
  • Launched Code of Conduct for Suppliers

Climate Goals & Targets

Medium-term Goals:
  • Reduce scope 1 and 2 emissions by 46 percent by 2030
  • Reduce scope 3 emissions by 22 percent per purchased ton of material by 2030
Short-term Goals:
  • Increase sales of HL Sustainable Choice offer by 10 percent year on year
  • Launch circular offer on major European markets
  • No accidents leading to absence

Environmental Challenges

  • Ongoing pandemic
  • Increased raw material and transport costs
  • Supply chain concerns
  • Accelerating trend towards online grocery shopping
  • Balancing customer expectations on appearance and cost with the available recycled material
  • Securing supply of high-quality recycled materials
  • Demand for high-quality recycled materials outpacing supply
Mitigation Strategies
  • Improved company-wide communication (e.g., global meeting)
  • Developed alternative sourcing strategies for recycled materials
  • Implemented a centralized system for supplier management
  • 93% of important suppliers signed Code of Conduct
  • Improved production processes to reduce scrap and increase recycling
  • Switched Gliwice factory to renewable energy
  • Relocated RDC Central to a smaller, greener warehouse

Supply Chain Management

Supplier Audits: 1 audit in 2021 (due to pandemic); plan for 10 in 2022

Responsible Procurement
  • Code of Conduct for Suppliers
  • Supplier self-assessment questionnaires
  • Supplier management platform (Kodiak)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards Core option, UN Global Compact

Certifications: ISO 45001 (Sundsvall, Gliwice, Harlow factories), ISO 14001 (Sundsvall, Gliwice factories)

UN Sustainable Development Goals

  • Goal 8: Decent Work and Economic Growth
  • Goal 10: Reduced Inequalities
  • Goal 12: Responsible Consumption and Production

Initiatives contribute to these goals through responsible business practices, fair labor standards, sustainable production, and waste reduction.

Sustainable Products & Innovation

  • HL Sustainable Choice range
  • Optimal dividers
  • 4eBins
  • Modulo and choco trays

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:83,925 tonnes of CO₂-equivalents (market based method)
Scope 1 Emissions:1.485 tonnes
Scope 2 Emissions:2.297 tonnes
Scope 3 Emissions:80.143 tonnes
Renewable Energy Share:72.3%
Total Energy Consumption:22.3 MWh
Water Consumption:329,001 m³
Waste Generated:2,341 tonnes (safe waste)

ESG Focus Areas

  • Helping customers to create more sustainable stores
  • Driving continuous improvement in operations
  • Ensuring responsibility throughout the supply chain
  • Creating the best workplace

Environmental Achievements

  • CO2 emission reduction targets were approved by SBTi and delivered on the plan
  • Increased usage of more sustainable packaging material
  • Improved waste management processes allowing for a higher share of waste being recycled (83% in 2022 from 81% in 2021)
  • Sales of the Sustainable Choice range increased by 6 percent vs 2021
  • Circular offer was presented to customers across Europe and projects were started in two new markets
  • Black dividers offered in 100 percent recycled plastic, saving 170 kg of virgin plastic for every 1,000 dividers sold
  • Reduced consumption of water in RDC South West due to an implementation of a control system
  • Improvements in freight logistics at RDCs to improve fill rate and increase use of trucks following the latest environmental standards and reduce air freights

Social Achievements

  • Equal opportunity score of 74 in employee engagement survey (increase of four points from 2021)
  • Work-life balance score of 76 in employee engagement survey (increase from 2021)
  • Launched Learning & Growth @HL platform for leadership development
  • Improved performance review process
  • Launched a Learning Management System called TalentLMS

Governance Achievements

  • 95 percent of important suppliers have signed the Supplier Code of Conduct
  • No violations of the Code of Conduct were reported in 2022
  • Continued development of supplier management system including supplier full review (50 suppliers underwent the review in 2022)

Climate Goals & Targets

Medium-term Goals:
  • Reduce Scope 1 and 2 emissions by 46 percent by 2030
  • Reduce Scope 3 emissions by 22 percent per tonne of purchased material by 2030
  • Increase the use of recycled material with 10 percent year on year
Short-term Goals:
  • Reduce Lost Time Injury Frequency Rate by 5 percent year on year
  • Increase sales of HL Sustainable Choice offer by 10 percent year on year
  • Expand circular offer to more markets

Environmental Challenges

  • Growing inflation and continued increases of raw material cost
  • High demand for high-quality recycled materials outpacing supply
  • Balancing customer expectations on appearance and the increasing cost of recycled plastic
  • Challenge of retrieving material efficiently for circular economy initiatives
  • Maintaining high engagement levels in acquired companies
Mitigation Strategies
  • Developed alternative sourcing strategies for recycled materials
  • Rethinking product design to use more recycled material (e.g., Optimal™ black dividers)
  • Expanding circular offer to more customers
  • Working with leaders and teams to improve engagement and communication
  • Developing action plans for engagement improvements

Supply Chain Management

Supplier Audits: 10 on-site audits

Responsible Procurement
  • Code of Conduct for Suppliers
  • Supplier self-assessment questionnaires
  • Supplier full review

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products
  • Increased demand for sustainable materials and solutions

Reporting Standards

Frameworks Used: GRI Standards 2021

UN Sustainable Development Goals

  • Goal 8
  • Goal 10
  • Goal 12
  • Goal 13

HL's business and sustainability efforts impact these goals through efficient production processes, promoting diversity and equal opportunities, enabling customers to reduce waste and environmental footprint, and reducing the carbon footprint of operations.

Sustainable Products & Innovation

  • Sustainable Choice range
  • FlowBin
  • PodBin
  • Optimal™ black dividers
  • Optimal™ Beverage Tray

Awards & Recognition

  • Carrefour's LSA Innovation Trophy for ‘bulk experience’