Climate Change Data

Environmental Metrics

ESG Focus Areas

• Minimising climate impact
• Product safety
• Sustainable supply and distribution chains
• Data protection and customer privacy
• Ensuring a healthy and safe work environment
• Attracting and retaining employees and developing their skills
• Promoting equality and diversity at workplaces
• Eliminating child labour and forced labour
• Working actively to eliminate corruption
• Integrating the circular economy into our business model
• Protecting biodiversity and ecosystems

Environmental Achievements

• Improved data collection methods leading to better understanding of emissions

Social Achievements

• Updated Code of Conduct for employees and suppliers
• Digitization of the whistleblower reporting system
• Zero confirmed cases of discrimination reported

Governance Achievements

• Established long-term future targets
• Developed a new policy package including updated environmental and CSR policies

Climate Goals & Targets

Environmental Challenges

• Decentralized business structure creating challenges in implementing sustainability management
• Varying levels of sustainability efforts across different companies within the group
• Data collection inconsistencies across the group
• Risks in the supply chain related to emissions, resource use, corruption, and human/labor rights

Mitigation Strategies

• Refined data collection structure for improved data quality
• Established long-term sustainability targets
• Developed a Supplier Code of Conduct based on the UN Global Compact's Ten Principles
• Ongoing work to improve governance, implementation, and follow-up of sustainable supply chains
• Regular dialogues with logistics partners to improve efficiency and reduce emissions

Supply Chain Management

Supplier Audits: 100% of new suppliers evaluated based on human and labor rights criteria (for companies with systematic processes); 69% evaluated based on environmental criteria (for companies with systematic processes). Target of 100% evaluation of strategic suppliers by 2025.

Responsible Procurement

• Supplier Code of Conduct based on the UN Global Compact's Ten Principles

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, EU Taxonomy

UN Sustainable Development Goals

• UN Sustainability Goals 2030 (SDG)

BHG's sustainability efforts are based on the UN SDGs for 2030.

Environmental Metrics

ESG Focus Areas

• Minimising climate impact
• Ensuring sustainable and ethical supply and distribution chains
• Maintaining high levels of product safety and quality
• Promoting equality and diversity at workplaces
• Attracting and retaining employees and developing their skills
• Working actively to eliminate corruption
• Ensuring a healthy and safe work environment
• Ensuring a high level of data protection and protecting customer privacy

Environmental Achievements

• Expanded the collection of energy consumption and emissions data for 2022 by including more of the Group’s companies in the collection process.
• 41% of new suppliers were evaluated based on human and labour rights criteria as well as on environmental criteria in 2022.
• BHG’s companies have generated waste to a total of 3808 tonnes in 2022.

Social Achievements

• Zero confirmed cases of discrimination were reported during the year.
• 40 minor work-related injuries were reported during the year.
• Zero confirmed cases of a customer privacy breach in 2022.

Governance Achievements

• Implementation of the company’s updated Code of Conduct, Supplier Policy and CSR Policy continued in 2022.
• Two whistleblower cases were reported during the year and investigated according to applicable regulations. Zero cases of corruption were reported during the year.

Climate Goals & Targets

Environmental Challenges

• High shipping, inventory and traffic generation costs
• High personnel-related costs
• Weak demand due to economic uncertainty (inflation, interest rates, energy crisis)
• Supply chain disruptions
• High inventory levels
• Aggressive campaigning by competitors
• Difficulty in raising prices due to weak demand and intense competition

Mitigation Strategies

• Comprehensive cost-savings programme (SEK 150-200 million annually)
• Action plan to reduce inventory and free up capital
• Temporary change in loan covenants
• Impairment loss on inventory (SEK 375 million)
• Division of operations into three segments (Home Improvement, Value Home, Premium Living)
• Measures to reduce complexity and leverage synergies
• Investments in technology platforms
• International expansion and use of external marketplaces
• Expansion of product assortment through internal marketplaces

Supply Chain Management

Supplier Audits: 41% of new suppliers evaluated in 2022

Responsible Procurement

• Supplier Code of Conduct based on the Ten Principles of the UN Global Compact

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, UN SDGs

Sustainable Products & Innovation

• Several products produced from recycled materials

Environmental Metrics

ESG Focus Areas

• Minimising climate impact
• Ensuring sustainable and ethical supply and distribution chains
• Maintaining high levels of product safety and quality

Environmental Achievements

• Divested German companies AH Trading Gmbh and Ploss Europe Gmbh as well as the Danish company My Home Aps, resulting in a decrease of 5,118 MWh in energy consumption and 4,458 tonnes of CO2e in emissions between 2022 and 2023. Closed a number of stores and warehouses to streamline operations, which will positively impact emissions and energy consumption in 2024.
• Reduced total emissions by 4,458 tonnes of CO2e from 2022 to 2023 (excluding divested companies).

Social Achievements

• Zero confirmed cases of discrimination reported during the year.
• 20 minor work-related injuries reported (1.2 injuries per 200,000 hours worked).

Governance Achievements

• Completed a double materiality assessment during the year.
• Prepared the management group and Board of Directors for upcoming governance and leadership requirements with a clear focus on integrating a sustainability perspective into core operations.
• Zero whistleblower cases and zero cases of corruption reported during the year.

Climate Goals & Targets

Environmental Challenges

• Uncertainty in demand due to rising inflation and increased interest rates.
• Challenges in coordinating the supply chain due to a decentralized business model.
• Varying levels of progress in systematic health and safety work across companies.
• Data limitations in collecting complete and reliable sustainability data from all companies.

Mitigation Strategies

• Enhanced efficiency of operations and adapted to the new level of demand.
• Consolidated a number of operations to build larger, more efficient, and scalable platforms.
• Improved governance, implementation, and follow-up of sustainable supply chains.
• Continued work to improve the work environment and systematic health and safety work.
• Improved data collection procedures and processes.

Supply Chain Management

Supplier Audits: 55% of new suppliers signed the Supplier Code of Conduct in 2023; aiming for 100% by 2025.

Responsible Procurement

• Supplier Code of Conduct based on the Ten Principles of the UN Global Compact; requirements for human rights, labor rights, minimal environmental impact, and good business ethics.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, EU Corporate Sustainability Reporting Directive (CSRD), European Sustainability Reporting Standards (ESRS), UN Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• Products produced from recycled materials.