Climate Change Data

Elanders AB (publ)

Climate Impact & Sustainability Data (2021, 2022, 2023, 2024-01 to 2024-03)

Reporting Period: 2021

Environmental Metrics

Renewable Energy Share:70%

ESG Focus Areas

  • Environment and climate
  • Employees
  • Social conditions and human rights
  • Ethics and anti-corruption

Environmental Achievements

  • Continued work on reducing environmental impact, including measures to reduce energy consumption and greenhouse gas emissions and generating less hazardous waste.
  • Switching to an electrical truck reduced emissions by more than 30 tons annually.
  • Increased the proportion of renewable electricity in operations to 70%.

Social Achievements

  • Launched a joint occupational health vehicle for employee COVID-19 vaccinations.
  • Donated one million surgical masks, 100,000 face shields and isolation gowns to hospitals in Singapore.
  • Continued work on equality, equal opportunity, and diversity, including developing a formal Equal Opportunity Plan.

Governance Achievements

  • Hired Nathalie Bödtker-Lund as Sustainability Director.
  • Implemented a global digital platform for sustainability data collation.
  • Preparing to report according to the GRI Standards.

Climate Goals & Targets

Long-term Goals:
  • Reduce direct and indirect emissions of greenhouse gases.
Medium-term Goals:
  • Create a common perspective on sustainability and a sustainability strategy with concrete goals.
Short-term Goals:
  • Improve sustainability data collation.
  • Prepare to report according to GRI Standards.
  • Start reporting greenhouse gas emissions.

Environmental Challenges

  • Semiconductor shortage leading to irregular capacity utilization.
  • Disturbances in global supply chains due to the COVID-19 pandemic.
  • Tough price pressure, contracting total volumes and surplus capacity in the print market.
Mitigation Strategies
  • Optimizing processes and renegotiating unprofitable business in Supply Chain Solutions.
  • Consolidating production capacity in Print & Packaging Solutions.
  • Adding supply chain management services to existing print operations.

Supply Chain Management

Responsible Procurement
  • Elanders’ Code of Conduct comprises suppliers and business partners.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (preparing to report)

Certifications: ISO 9001 and ISO 14001 (almost all companies)

UN Sustainable Development Goals

  • Goal 7
  • Goal 13
  • Goal 8
  • Goal 5
  • Goal 10
  • Goal 4
  • Goal 9

Elanders contributes to these goals through various initiatives described in the report.

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:37,616 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:24,750 tCO2e/year
Scope 2 Emissions:12,866 tCO2e/year
Renewable Energy Share:53%
Total Energy Consumption:176,416 MWh/year

ESG Focus Areas

  • Greenhouse gas emissions
  • Material and waste
  • Health and safety
  • Employee relations
  • Diversity, equity and inclusion
  • Human rights
  • Business ethics
  • Data ethics
  • Sustainable procurement
  • Responsible taxpayer
  • Society

Environmental Achievements

  • Reduced greenhouse gas emissions in scope 1 and 2 by more than nine percent from last year.
  • Increased the portion of purchased renewable electricity from 51 percent to 53 percent.
  • Implemented energy-saving measures at Elanders’ facilities.
  • Life Cycle Management handled over 85,000 units, resulting in emissions savings of around 24.5 thousand tons CO2e.

Social Achievements

  • Continued work on developing a formal, group-wide gender equality plan.
  • Initiated an extensive employee survey throughout the Group.
  • Elanders’ subsidiary Mentor Media works with the Swedish Chamber of Commerce in Singapore in a mentorship program for certain female managers.

Governance Achievements

  • Updated Anti-Corruption Policy and Code of Conduct communicated to all companies in the Group.
  • Elanders’ Binding Corporate Rules (BCR) were approved by the Swedish Authority for Privacy Protection (IMY).
  • Elanders acts responsibly and with integrity in all tax matters and ensures it fully complies in all jurisdictions worldwide.

Climate Goals & Targets

Long-term Goals:
  • Reduce GHG emissions within scope 1 and 2 by 75 percent by 2040.
  • Achieve net zero GHG emissions over the entire value chain by 2050.
Medium-term Goals:
  • Reduce GHG emissions within scope 1 and 2 by 50 percent and scope 3 emissions related to our own operations by 30 percent by 2030.
  • Increase the portion of women in leading positions.
  • Increase diversity in leading positions.

Environmental Challenges

  • Fluctuating demand geographically and between customer segments.
  • Disturbances in customers’ supply chains due to material and component shortages (semiconductors, etc.).
  • Inflation, cost increases, and energy crisis.
  • COVID-19 shutdowns in China.
  • Shortage of material (paper) and skyrocketing prices.
  • The war in Ukraine and its consequences (supply chain disruptions, inflation, energy crisis).
Mitigation Strategies
  • Price increases and ensuring material supplies.
  • Closing down unprofitable sections of road transportation operations in Germany to improve margins and free up capital.
  • Reducing low-margin buy and sell business.
  • Broadening customer base to cover more industries and increase geographic reach.
  • Developing new facilities in Netherlands, Germany, Mexico, UK, and USA.
  • Accelerating work on sustainability and setting climate targets.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, Greenhouse Gas Protocol, EU Taxonomy

Sustainable Products & Innovation

  • Renewed Tech

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:231,981 tCO2e/year
Scope 1 Emissions:25,900 tCO2e/year
Scope 2 Emissions:10,793 tCO2e/year
Scope 3 Emissions:195,288 tCO2e/year
Renewable Energy Share:61%
Total Energy Consumption:154,604 MWh/year

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced total greenhouse gas emissions by more than four percent from last year (scope 1 and 2). This is mainly due to fewer fossil-fuel driven road transports, less consumption of natural gas for heating purposes and continued investment in energy efficient lighting and e-savers.
  • Increased the portion of purchased renewable electricity from 59 percent to 61 percent compared to the previous year.
  • Reduced scope 3 emissions by 11 percent from last year. The change was most pronounced in the freight forwarding services due to fewer transports in Air & Sea.
  • Mapping of the Group’s value chain emissions (scope 3) completed.
  • Climate targets set for the Group. Committed to setting climate targets in line with Science Based Targets initiative (SBTi).

Social Achievements

  • Continued to create new jobs globally, reaching almost 8,000 employees across 20 countries.
  • Maintained a continuous and constructive dialogue with employee representatives, including the European Works Council (EWC).
  • Developed a version of its Code of Conduct which is communicated to its suppliers and business partners.
  • 99% of all white-collar workers completed courses on the Anti-Corruption Policy and Code of Conduct.

Governance Achievements

  • Adjusted the Group’s whistleblower system in line with EU’s new whistleblower directive.
  • No material incidents of fraud, corruption, bribes or money laundering were reported in 2023.
  • Elanders signed on to the United Nations Global Compact.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions over the entire value chain by 2050.
Medium-term Goals:
  • Reduce emissions within scope 1 and scope 2 by 75 percent by 2040.
Short-term Goals:
  • Reduce greenhouse gas emissions within scope 1 and scope 2 by 50 percent and reduce emissions within scope 3 related to own operations by 30 percent by 2030.
  • Develop action plans for emission reductions.

Environmental Challenges

  • High inflation, decreasing consumption, and normalized freight rates for Air & Sea negatively impacted organic growth.
  • Decline in demand within a majority of Elanders’ customer segments and on all continents.
  • Weaker market for durable goods, fashion, and automotive industry component supply issues.
  • Overcapacity in the USA and Europe after investments made before inflation soared.
  • Weaker demand in all major customer segments and markets in the fourth quarter.
  • Several customers in Automotive still struggling with disturbances regarding material and component flows.
  • The market continues to be uncertain in general.
Mitigation Strategies
  • Diversification moderated the worst effects of the decline in demand.
  • Discontinued low-profit business operations.
  • Renegotiated client contracts and implemented cost initiatives.
  • Substantially improved cash conversion.
  • Reduced working capital by over MSEK 370.
  • Continued work to reduce working capital and improve cash flow.
  • Strategic acquisitions (Kammac and Bishopsgate).

Supply Chain Management

Supplier Audits: Annual audits, self-assessments and documentation reviews of certain suppliers.

Responsible Procurement
  • Code of Conduct for suppliers

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products and services
  • Strategic business partner that can help the customer to get control of and reduce its emissions in the value chain.

Reporting Standards

Frameworks Used: GRI, EU Taxonomy, GHG Protocol, UN Global Compact

Reporting Period: 2024-01 to 2024-03

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Sustainability

Environmental Achievements

  • Commitment to Science Based Targets initiative with ambition to get climate targets approved in coming years
  • Comprehensive disclosure of greenhouse gas emissions (scopes 1, 2, and 3) in the 2023 Annual and Sustainability Report

Climate Goals & Targets

Long-term Goals:
  • Reduce GHG emissions within scope 1 and 2 by 75% by 2040
  • Achieve net zero emissions over the entire value chain by 2050
Medium-term Goals:
  • Reduce GHG emissions within scope 1 and 2 by 50% from 2021 base year and scope 3 emissions related to own operations by 30% from 2022 base year by 2030

Environmental Challenges

  • Weak market demand, particularly from customers in durable and consumable goods
  • Lower freight rates and volumes in Air & Sea freight forwarding operations
  • Overcapacity in warehousing due to previous investments and weaker demand
  • High interest expenses due to high interest rates and net debt
Mitigation Strategies
  • Improving operating cash flow through reduced working capital
  • Discontinuing unprofitable businesses (road transportation in Germany, buy and sell business in components)
  • Working to optimize capacity utilization (consolidating storage facilities, offering short-term storage, subletting)
  • Actively working to improve cash flow and reduce working capital

Supply Chain Management

Climate-Related Risks & Opportunities