Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Carbon Footprint
• Energy Consumption
• Water Consumption
• Materials Efficiency
• Waste Reduction
• Sustainable Products
• Supply Chain Sustainability
• Diversity and Inclusion
• Business Ethics
• Compliance

Environmental Achievements

• Reduced total greenhouse gas emissions by 20%
• Decreased water intensity by 10%
• Decreased energy intensity by 5%
• Phased out the use of PER and TRI chlorinated organic solvents across the Group
• Reduced consumption of other types of organic solvents by 48% (68% compared to 2015 baseline)
• Had 348 Environmental Product Declarations verified and published

Social Achievements

• Reduced injury rate by 7%
• Increased the proportion of females in management positions to 30%

Governance Achievements

• Continued implementation of the Data Protection Compliance Program
• Updated the Anti-Corruption Compliance Program
• Streamlined the process for handling Code of Conduct concerns

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the Covid-19 pandemic (limiting travel and on-site audits)
• Environmental risks associated with growth in regions with fossil fuel-intensive energy mixes and water scarcity
• Managing risks related to suppliers, particularly in low-cost countries
• Integrating sustainability into newly acquired companies
• Achieving ambitious water reduction targets despite significant progress already made

Mitigation Strategies

• Continued rollout of the Business Partner Code of Conduct
• Enhanced processes to improve supplier performance and phase out non-compliant suppliers
• Certifying factories with significant environmental impact to ISO 14001
• Developing and implementing action plans to optimize resource use
• Further developing the restricted materials list
• Conducting 940 sustainability audits of direct material suppliers in low-cost countries
• Implementing a three-tiered approach to energy and sustainability improvements
• Implementing water recycling systems and closed-loop systems

Supply Chain Management

Supplier Audits: 940 audits in 2020

Responsible Procurement

• Business Partner Code of Conduct
• Supplier sustainability audits
• Due diligence processes

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growing market for sustainable products
• Cost savings from energy efficiency

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14001

UN Sustainable Development Goals

• SDG 6: Clean Water and Sanitation
• SDG 9: Industry, Innovation and Infrastructure
• SDG 11: Sustainable Cities and Communities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 8: Decent Work and Economic Growth

ASSA ABLOY's sustainability initiatives contribute to these goals through various actions such as water conservation, sustainable product development, supply chain improvements, emissions reduction, and promoting decent work.

Sustainable Products & Innovation

• SW60 automatic swing door opener (75% less material than predecessor)
• HID Signo RFID readers (38% lower product mass than predecessor)
• Products with EPDs, HPDs, and Declare Labels
• Products designed for disassembly and recyclability
• Energy-efficient door opening solutions
• Products contributing to LEED, BREEAM, and Living Building Challenge certifications

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Products
• Supply Chain Management
• Resource Efficiency
• Occupational Health and Safety
• Diversity and Inclusion
• Anti-corruption

Environmental Achievements

• Reduced water intensity by 23% in 2021 (24% against 2019 baseline)
• Reduced energy intensity by 14% in 2021
• Reduced hazardous waste intensity by 14% in 2021 (12% against 2019 baseline)
• Reduced organic solvents intensity by 48% in 2021 (13% against 2019 baseline)
• Reduced absolute carbon footprint by 17% against 2019 baseline. Increased by 2% compared to 2020 due to higher activity levels.
• 77% of sites requiring ISO 14001 certification were certified in 2021

Social Achievements

• Reduced injury rate by 13% in 2021 (20% against 2019 baseline)
• Increased portion of females in management positions to 27% in 2021
• Rolled out health and safety program reducing risk of injury

Governance Achievements

• Continued implementation of Data Protection Compliance Program
• Continued implementation of Anti-Corruption Compliance Program
• Streamlined process for handling Code of Conduct cases

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to component shortages, delivery delays, and raw material price inflation
• Challenges in some geographical regions with limited recycling infrastructure
• Achieving sustainability improvements in regions with less mature markets
• Covid-19 pandemic impacting onsite audits and travel

Mitigation Strategies

• Strong execution by operational teams to address supply chain challenges
• Increased focus on waste reduction and reuse in regions with limited recycling
• Robust auditing system to maintain supply chain integrity and phase out non-compliant suppliers
• Alternative sourcing strategies developed
• Implementation of a new Group-wide risk-based third-party vetting process

Supply Chain Management

Supplier Audits: 861 audits in 2021

Responsible Procurement

• Business Partner Code of Conduct
• Supplier sustainability audits
• Third-party vetting process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Carbon taxes

Opportunities

• Development of energy-efficient products
• Growth in green buildings
• Local production advantages

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14001

Third-party Assurance: EY (limited assurance on GRI compliance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)

Initiatives contributing to these goals through various environmental, social, and governance actions.

Sustainable Products & Innovation

• Products with EPDs
• Energy-efficient access solutions
• Ultra low-power locks

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Any waste metals during machining are separated and recycled. The waste from the water-based painting process is delivered to waste treatment plant.

Social Achievements

• Code of Conduct covers human rights, labor practices and decent work.

Governance Achievements

• Management of ASSA ABLOY is aware of their environmental roles and responsibilities, providing appropriate training, supporting accountability, and recognizing outstanding performance.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14025:2006, EN 15804:2012+A2:2019/AC:2021, EN 15804+A2 (EF 3.1)

Third-party Assurance: Jane Anderson, Ph.D.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Sustainability

Environmental Achievements

• Scope 1 & 2 carbon emissions decreased by 4% in 2023 compared to 2022 and have been reduced by 23% since 2019.
• Launched a new sideswipe for loading dock stations that uses 20% less steel, requires 50% less installation time and requires 60% less energy in use.

Social Achievements

• Injury rate decreased by 25% compared to 2022 and is down 20% since 2019.
• Established a new framework for diversity, equity, inclusion, and belonging (DEIB).

Governance Achievements

• Continued its work to enhance financial reporting, internal control in relation to the financial reporting and compliance in the company in general.

Climate Goals & Targets

Environmental Challenges

• Weaker demand in the residential markets led to lower sales in general and in Europe in particular.
• Supply chain disruptions

Mitigation Strategies

• Implemented short-term cost measures that reduced costs by SEK 0.9 billion.
• Launched the ninth Manufacturing Footprint Program (MFP9) to structurally reduce costs.
• Optimized warehouse locations in the Americas division through reshoring to Mexico.
• Optimized logistics in the Nordics by consolidating three country warehouses into one.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Sustainable Products & Innovation

• Sideswipe levelers for loading dock stations
• Qmax thermally enhanced core for doors